halftime next week. on monday jim rogers of rogers holdings will be our special guest host. with all the news coming out over the weekend on china, that's big. special hour tuesday with mark fisher and boone pickens. "power lunch" begins right now. have a great weekend, everyone. welcome to "power lunch." i'm darren rovell live from belmont park where a little over an hour ago news broke that "i'll have another," the horse going for the triple crown here tomorrow, will be scratched and will not run in tomorrow's race. the horse was trying to become the 12th horse to win the triple crown since the very beginning and will now become the 12th horse not to win the triple crown since "affirm" last won it in 1978. there's a news conference coming up shortly with the trainer, doug o'neill, and the owner, paul redham, of "i'll have another." one thing we know for the merchandise of "i'll have another" is all over the place here. they're saying right now they will not discount any of the

merchandise. we're waiting for nira, new york racing association to talk about tickets, but potentially there will be no refund since you're buying a ticket for the race, not necessarily for the horse to be in it. certainly in vegas and online sports books, they are going to be hit. we're told from one online sports book that they expect their business to be down about 60% from "i'll have another" being scratched from the belmont. we'll have more on this story throughout the hour. sue, back to you. >> all right. actually, tyler, we'll take it for now. darren, thank you very much. you know, a lot of corporations will probably not get the exposure they wanted this weekend with "i'll have another" being out of the triple crown running. ratings will be down. and some of the other endorsement issues will naturally fall away. dan fitzpatrick is keeping an eye on those for us. dan, who gets affected here? >> nobody ever heard of a double crown, right? look, what really gets impacted is heineken, coke and also comcast. but if you look at the stocks right now, they're really not

getting hit much one way or the other. definitely you want to watch those three to see what happens as this news story unfolds. >> of course comcast is the parent company of cnbc. and welcome everybody to "power lunch" as we begin with some breaking news. it is 1:00 p.m. on wall street. three keynotes just came out within the last hour or so showing that some wall street firms are souring now on the prospect of growth in the united states in the second half of this year. the first to hit our e-mail box came from barclays. they are dropping second quarter gdp estimates to about 2% because of concern over u.s. exports. moments later goldman sachs dropped its q-2 gdp forecast as well to 1.8%. their note "the downward revision primarily reflects weaker than expected real growth in april." and long-time bull at deutsche bank has just cut his rating for q-2 gdp from 2.9% -- that was a high one on the street, to 2.4%. his note" unexpected weakness in

recent federal government spending which has primarily been due to significantly lower military outlays has caused us to trim our current quarter growth forecast." let's take a look at how the markets are fairing right now as we look at the dow industrials. nevertheless higher by 54.6 points at 12515. s&p higher by 5.75%. and the nasdaq composite up by about .5% or 15.3 points. another big story, the president speaking out on the economy. and most of his comments were directed at europe. >> there are a bunch of different issues going on in europe. it's not simply a debt crisis. what is true is is that the markets getting nervous have started making it much more expensive for them to borrow and that then gets them on a downward spiral. >> nervous markets, downward

spiral -- >> the great people have made and european leaders understand the need to provide support if the greek people choose to remain in the eurozone. but the greek people also need to recognize that their hardships will likely be worse if they choose to exit from the eurozone. >> simon hobbs, a very interesting takeaway on whether this was a paving of the road for u.s. help to europe. >> yes, i have. and i wonder why obama called the news conference. and i would speculate that maybe he's paving the way for the united states to do effectively a u-turn on providing aid through the imf to europe. you'll be aware that for years geithner has said europe has enough money of its own. it doesn't need external support. it must sort its own problems out. but what obama is saying is something very different. on the firsthand that the u.s. economy is dependent on europe because it's the major export market. secondly, spain and italy unlike greece have not overspent. they are smart economies.

and then thirdly, he suggested that europe needs a top like america needs a top, only they have 17 nations to get together. so my question, my speculation would be, and we know that the imf is meeting now with a report on the spanish banks, whether he is paving the way for the imf to give temporary loans to the spanish banks in order that further down the line when europe has changed its rules, they can repay those loans to the imf and put their own emergency money in. that's speculation on my part total. i have no idea. however, if that is true and reuters has a number of reports about a spanish bailout this weekend, if that is true, that would lead the way potentially to a major rally in risk markets and probably listening to the words obama used today for his ability to target that america taught europe how to grow. >> but nobody is saying anything of this sort about an imf roll here explicitly. certainly not the administration. >> if you look at the timing -- reuters is adamant with so many

sources that something is going to happen this weekend and that the eurozone and finance ministers laid out for a conference call tomorrow. they can't provide the money yet because they haven't changed the rules. but the fact that we know -- because draghi let it slip in a news conference, that today the imf is considering the first of three reports on the spanish banks. i think that is significant. the spanish would say we're waiting until we have our own detailed report at the end of the month. but you could still get the broad promise. and they'll deal with the detail later, possibly before the greek election next weekend. >> all right, simon, interesting weekend ahead again. thanks very much. now let's move to another key issue concerning the white house. john harwood with his slice now of cnbc's exclusive all america survey. what'd you find, john? >> tyler, it's an interesting survey which sheds light on the emerging economic debate that took on a new dimension today in that news conference when the president also said the private sector's doing fine. republicans jumping on that as evidence that he's out of touch on the economy. but let's look at the all

american split that reveals itself in the survey of americans. first of all, where is it advantage obama? helping the middle class. barack obama's got a 17% advantage over mitt romney. look at who can best prevent another financial crisis? barack obama has the edge. who can do better regulating wall street? obama also has the edge. but where is advantage romney? better ideas for helping the economy. that is a slight edge for mitt romney. and preventing the deficit double digit edge for romney on taming the deficit. then if you ask about which side is pro-business or too anti-business, 44% say president obama's policies toward business are just right. we've got about a third saying they're too biassed against business. that's heavily republicans. for mitt romney you've got a smaller percentage, about a third, saying romney's policies are just right. but mitt romney's got upside because he does better than obama among independents in terms of their answer that his policies are right toward business. so that provides another

dimension, tyler, to the debate that is unfolding this afternoon about whether the president thinks private sector's fine or not. >> all right. thank you very much, john harwood. let's bring in kenny of i cap -- oh, we're going to sue now. sue has arrived. >> i finally made it. after 45 minutes on the washington bridge. beautiful view, but i'm here nonetheless. >> how are you? >> don't ask. actually, i'm doing pretty well. and the markets bounce back. >> it has. >> you called me yesterday afternoon and you were right to sell into the rally yesterday would have been the right thing to do. >> right. >> but we're now on a friday with the weekend coming up. >> right. >> so there's a lot of macro events that are hovering out there. what do you do? >> i think you've got a lot of people that are just trueing up into the weekend, right? because it could go either way. you've got the chinese news due out saturday. people are expecting to be fairly negative after their rate cut yesterday. kind of the implication of what the future's going to be.

and then you have this whole spanish conference -- so i think what you're going to find is towards the end of the day here you'll have people trueing up their positions. no one's going to have necessarily a big long or short position, trader types, going into the weekend because you could be caught on either side of the wrong trade. i think it's going to end up churning right in here. don't forget it's also option expiration. >> that's right. >> so you've got -- >> and, you know, the president this morning when he made his remarks to reporters, i was verr interested there were so many comments about europe and the interrelationship from the general press. i get it when we ask those questions. that's what we do. that's our meats and potatoes. but to me it indicated the european crisis has taken on a bit of a different tone. >> i have to tell you. it's very interesting because i think he took advantage of all the weakness to try to deflect it a little away from him and away from our own u.s. economy. they've had four years to come

together to create jobs, to turn our economy around. he has been so far unsuccessful in really crossing that aisle and getting congress to work and do fiscal policy reform and fiscal stimulus to help the monetary. so i think actually he's taking advantage of this whole european crisis. he's trying to spin it to his advantage deflecting the -- >> very quickly, does the market expect any progress at all from congress? or have they already factored in a wash? >> no. i think they've factored in gridlock. i think they realize we're in the middle of this election season. they're not going to get much through november. and they're not even surprised going to get much after november. >> right. >> if january 1st comes and no one does anything about the fiscal cliff, it's going to be a big problem for everybody. >> thanks, kenny. >> no problem. >> thanks for being patient in waiting for me. all right. to dan fitzpatrick now. how do you play the uncertainty that certainly is front and center ahead of this weekend, dan? >> you know, let's look at spain for example. that's going to be a process. it's not going to be an event. we're going to get a headline out over the weekend.

hopefully it's a good one. if so, frankly i think it's a sentiment impact or more than a price. so what i'd be looking at is seeing some of the investors come off the sidelines. i would look at a stock like apple. it's been down a bit. it's off of its highs. but they have earnings in july. i think that's some place that investors are going to go. again, not because of any direct relationship with spain, but simply because an improvement in sentiment, things are less bad. and that means that you're going to get the retail investor coming in. >> all right. dan, thank you very much. we'll see you again in just a little bit. to brian shactman now with a cnbc market flash. brian. >> sue, in case you were interested in how much the ohio medicaid contract is worth, take a look at these two stocks that just got confirmation that they have it. just rocketing to the upside. especially molina. one-week of molina trying to make up some losses from earlier

in the week when it withdrew guidance. still down 7% despite being up 28 today. back to you, sue. >> thanks, brian. all right. let's switch to shares of facebook. they are up today in part on encouraging news from com score and on a new way to sell apps. the stock up 2.75%. since the ipo the stock is still down about 30%. julia boorstin is live in l.a. with the latest story for us. hi, julia. >> hi, sue. well, comscore says facebook's ads are effective teasing ahead to a report it's releasing next week. the stock is up today over 3% on the blog entitled it's time to change the discussion on measuring facebook effectiveness. comscore says facebook ads are having a "statistically significant positive lift of people purchasing a brand" that translates to they're working. users ignore facebook ads,

comscore says people spend more time on facebook than they did six months ago and don't realize how much ads impact them. full details are coming on tuesday. now, comscore's news comes as facebook takes steps to address investor concerns. particularly when it comes to making money on its massive mobile growth. this week facebook introduced mobile only advertising allowing marketers to buy separate mobile ads. facebook's also making it easier for users to make payments within mobile apps. and just last night facebook launched an app center with 600 social apps designed to encourage developers to work on facebook's platform and to drive users to spend more time and more money on facebook. of course the more time users spend on facebook, the more ads facebook can show them. sue and tyler, we'll hear more about how well those ads actually work coming from comscore on tuesday. tyler, over to you. >> julia, thank you very much. next up, how safe are government da data? numbers like the employment report. is someone getting more

information faster than everybody else? a cnbc exclusive next. before the break though let's look at five big movers as we count down to the weekend. walmart, wow, has walmart been doing well. up another 3% today. thermal night-vision goggles, like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

welcome back to "power lunch." i'm darren rovell live from welcome back to "power lunch." i'm darren rovell live from belmont park where it has been confirmed, not only will "i'll have another," who was going to go for the triple crown tomorrow, is scratched from the

race, but "i'll have another" has also ran its last race. "i'll have another" will be officially retired according to his owner, paul redham. this just announced at the news conference. from what we know, from the business side, the horse is worth about $6 million to $8 million according to three chimneys, which does a lot of breeding. but, again, they're not going to take the chance with the horse injured of him running and trying to become the first horse since "affirmed" in 1978 to win the triple crown. tyler, back to you. >> very quick question if i might, darren. what's the nature of the injury? how was it sustained? or do we know? >> they're just starting to explain it at the news conference. he hurt his left leg. was interesting because the horse came out here early at 5:30 and people are saying now was that because the injury was there or not. but it has been described as

tendonitis in the left leg. if you know anything about horses, you know, tendonitis isn't our tendonitis. if there's anything that's wrong with the horse, there is such a fine line between being able to run the horse and really potentially suffering a catastrophic injury. we do know by the way the owner of "i'll have another" told us that he did not take any catastrophic injury insurance out on the horse. he said that he thinks insurers are the ones that win most of the time. but you got to think that given the injury, he would have taken him out independent of that insurance decision. "i'll have another" scratched from the belmont. >> all right. go have another, darren. thanks. let's go to brian now with a market flash. >> yum brands big sponsor of the kentucky derby, ty. look at the stock. mcdonald's came out with disappointing global comps earlier. you assume this 3.5% to 4% downside is just in sympathy. but some of the other fast food restaurant stocks aren't down as

much as this. a lot of this has to do can concerns in china. we know yum is heavily leveraged in that country. >> indeed it is. brian, thank you. the department of energy coming under cyber attack. the federal government is mounting an investigation into practices of private sector companies looking to get access to market moving data on websites controlled by the energy department. eamon javers is live in washington with the details on that. eamon, over to you. >> hi, sue. well, previously the department of energy has said that they think some people are using malicious tactics to access their website right the very second they're putting out market moving information, like natural gas inventory reports and other things that traders depend on in a millisecond by millisecond way to make their trades in the marketplace. they've said at the department of energy that people are so aggressively using their technology to hit those websites that they actually block certain ip dresses from ever accessing the government computers. about six months ago we

submitted a freedom of information act request for all of the correspondence between those and yesterday the department of energy turned over 100 or more pages of e-mails back and forth. what they have done here is redakd, remove the names of the firms themselves. take a look at the letter the department of energy sent us just yesterday. in that letter they explained there were a couple of reasons. one was the privacy of those firms that have interacted with the government. and also they said some of the information you requested is being withheld under b7a because it's related to an ongoing investigation of a confidential nature. sue, they also told us in that letter that these documents were gathered in an effort to determine whether or not any federal laws had been broken. so, sue, clearly an ongoing investigation here by the department of energy as to how people are using and getting that data off their website and trading with it in a very, very

fast way. >> indeed. eamon, have they been able to take any steps to prevent further interruptions of the data? further ability to access that data? have they been able to block it? >> yeah. and what you see in these e-mails, and we have them posted on cnbc right now, hundreds of pages worth, you can see they are nearly constantly interacting with these firms blocking their access, sending them correspondence, telling them to knock it off in effect and then re-allowing them to access the website once they've changed their policies and agreed to slow down the number of hits per second they're hitting that website with. there's an ongoing communication here back and forth. >> eamon, thank you very much. look forward to hearing more details. >> you get. >> ty. >> sue, thanks. up next three big analyst calls on the banks and two of the biggest names in silicon valley. before the break we look at the dollar as we head into the weekend. euro lower. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about market volatility.

ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about ttd#: 1-800-345-2550 the present market and economic conditions. ttd#: 1-800-345-2550 and can help turn those insights into ttd#: 1-800-345-2550 a plan of action that's right for you. ttd#: 1-800-345-2550 so don't let the current situation take you off course. ttd#: 1-800-345-2550 talk to chuck. ttd#: 1-800-345-2550 over a million people have discovered how easy it is to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalzoom.com, we put the law on your side. launch your dreams. between taking insulin and testing my blood sugar... is this part of your life? freestyle lite test strips?

why, are they any... beep! wow, that hardly needs any blood! yeah... and the unique zipwik tab targets the blood and pulls it in. so easy. freestyle lite needs just a third the blood of onetouch ultra. really? yep, which is great for people who use insulin and test a lot. max and i are gonna run out and get them right now. or you can call or click today and get strips and a meter free. test easy.

welcome welcome back to "power lunch." brian shactman here at the markets desk where i'm looking at shares of novo nordisk. diabetes a big business potential in the pharma business. it was first late last night announced that its drug treating diabetes the fda extending study by three weeks assumed to be a negative. you see how low it traded at the open. but it's climbed back because some of the details say it does pretty well compared to santa avenn tus. a little bit of confusion in

novo nordisk. >> thanks, brian. dan fitzpatrick is here to go through some calls from this morning. we'll begin with one on regional bank, citi cutting earnings on regional saying a period of prolonged low rates is a very challenging environment for a regional bank. a challenge they say builds over time. among those names keycorp. and comerica. >> it depends on which region. i think this is a buy on the pullback. they're in economies that are actually expanding. believe it or not, michigan, arizona, california less bad. they just went into houston. those are all expanding markets. that's a stock that you can buy on this weakness. >> nevertheless down 13% this year. so you buy the theory, but you disagree that comerica is one to

avoid. >> you can't paint them all with a broad brush. >> move to cisco, saying contrary to popular wisdom, cisco is gaining back share. now the time to get into cisco? >> yes, i think so. i agree with that call. here's the thing, the last quarter was disastrous. they had a really bad conference call. the stock has come down. it's already factored that in. so this is a stock that you can buy on this weakness. it's got really strong support. >> and now to yahoo!. bernstein upgrading to outperform a price target of $19 a share. what's your call on their call? >> i would rather have cash than yahoo! >> that says it all right there. >> it actually gives you better yield because at least the dollar's appreciating. yahoo!'s been dead money. i'm sure they have a lot of nice folks working there. i would not touch the stock. >> no to yahoo!. dan, thank you very much. the clock is counting down on the metals market. and we are going to hit the nymex right after the break before it hits us. as we head out, let's check out the nasdaq.

mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal.

begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.

welcome back to "power lunch." brian shactman here at the markets desk. two and a half hours left in trading. and walmart just gang busters. look near the highs of the day. earlier in the day it hit $68.04. that's a 12-year high. so much for bribery scandals. the stock's been a monster since that news story. >> yeah. investors seem to be looking right past that and looking at growth potential for them. brian, thank you very much. gold prices closing right now. we've had a short covering rally in the gold market, if you want to call it that. we're up about $3 or so. jackie deangelis is tracking the action at the nymex. seems like they're covering bases going into the weekend. >> absolutely. upside surprise into the weekend. a lot of unknowns and uncertainty out there especially with europe. and traders telling me their

eyes of course very close on that. i want to highlight the fact we had a weaker euro and stronger dollar today. seeing a little pressure on the other metals, but a disconnect with gold at the end of the day here. one trader telling me if the front month price doesn't hit 1600 next week and stay there, we could be going lower, like in terms of 1526 or 1500. not a great day for the rest of the complex either. copper the biggest loser falling more than 2% in fact on concerns about a slowdown in the global marketplace. more economic data coming out of china this weekend. we're going to be watching that as well. and copper falling to its lowest since december in fact extending losses for six straight weeks. sue. >> thanks, jackie. all right. goldman sachs, deutsche bank and barclays all revising their q-2 gdp estimates to the downside today. nonetheless, a little bit of move to the upside in stocks. they're hanging in there. courtney reagan's here on the floor with me. courtney, you know, cautiously optimistic is what i'm hearing. >> i think so too, sue. there's certainly a defensive

air around here. the dow and s&p did move into positive territory as the president made remarks on the economy and europe. some key things he said that he remains in close touch with european leaders. i think the market liked that. he also said they do need to take decisive action. and no one would benefit from a greek eurozone exit. at least we know where the president stands to date on that thought. and it could be the first positive friday for the s&p since april if we continue where we are right now. we are positive and on track for the best week of the year at least for the s&p. but energy, the only big cap s&p sector negative at this point. things have turned around on global growth concerns. we have a number of negative growth reports out of europe today kind of accelerating some of those concerns. production and exploration names fairing the worst of the energy and commodity group. peabody, eog resources, alpha natural resources one of the worst hit. they are also cutting production at a kentucky coal mine weighing on other competitors in the coal group.

money moving out of these risk-on trades and into more defensive plays boosting some retailers. brian mentioned walmart. again, this is a day after chairman and founder richard schultz announced his immediate resignation. this serlier than previously planned. he says in order to explore 20% options for his stake. some best buy investors are holding out hope for private or foreign investment in the company. all that is pure speculation at this point. global growth worries are hitting mcdonald's. talk about global growth, even golden arches getting hit. citing weakness overseas and bernstein believes this month's results point to slower pace of growth ahead for a multi-year period of exceeding expectations. with ever had a number of discussions on where mcdonald's goes from here. that's where bernstein stands. >> indeed. i was looking at the transports interesting they're able to rally probably because the energy sector is to the downside. >> yeah. >> let's go to seema mody now at the nasdaq. she's following the movers over

there for us. hi, seema. >> look at shares of facebook trading higher although off of highs after the report from comscore. yahoo! the upgrade from bern teen to outperform. the big outperformer here is frances ka holdings beating street with earnings doubling net profit. also said future earnings will meet or exceed analyst expectations next quarter. that's why that stock is up. in terms of some sectors grabbing the headlines today, the nasdaq biotech index is vastly outperforming the nasdaq today as well as for the year up around 17% year-to-date. one major stock there that's helping fuel that nasdaq biotech index is amylyn. sue, back over to you. >> thank you very much, seema. ahead of what could be a very dicey weekend in europe, let's check how the bond market is fairing right now and where yields are headed.

hi, rick. >> hi, sue. i'm sure when you were on the george washington bridge you were listening to cnbc on satellite radio. and you heard that we traded all the way down around 1.55. look at a two-day chart. but nonetheless here we are now on a 10. 1.62. down a couple beeps on the day. but really as we move to the one-week charts, he's where you're going to garner some good information. last friday was the record low close for 10-year treasuries at 1.45. so from that vantage point, we're up about 17 basis points. take that 30-year bond. it's also very near unchanged. but at a 2.52 settlement, just a few basis points shy of historic low closing yields, well, we're 20 basis points up on the week. so even though these are low yields, we see a bit of a comeback as some of the anxieties have at least passed. we have elections in france. but the last chart's the biggie. yes, the euro is down a bit on the day but up on the week

evident at this one-week chart index. quantitative easing twist detour, but here we are just a smidge down on the week. tyler, back to you. >> it's always good to take a longer term perspective because it gives you a bigger picture. thanks, ricky. ty. >> sue, a new program being announced just hours from now by the u.s. government to sell the bad loans it ensures to investors. our diana olick has the details on what this means for the mortgage market. diana. >> well, that's right, tyler. the fha really rescued the mortgage market when credit seized up in '08 and '09 taking up to a 40% share of the market. well, now it is paying for that. the fha insuring about 700,000 delinquent loans. so how do you stop the bleeding? this afternoon the fha commissioner will announce a new program to sell these bad loans, not the properties, but the bad mortgages in bulk to investors. >> we actually save money because we're not paying the

cost of holding that mortgage all the way through to foreclosure. and we're not paying all the costs of managing and maintaining those properties over a long period of time. >> now, fha did a small pilot program, but now they're ramping it up offering up to 5,000 mortgages per quarter starting this fall. some will be in national pools. some specific to the hardest hit markets. there will be restrictions though. first the borrower must be at least six months behind on payments. the investor cannot foreclose for six months after buying the loan. and then must guarantee that at least half the loans would be modified to a reperforming status and held for at least three years. that prevents some flipping. the fha doing this clearly to avert more losses and potential government bailout. >> i'm not going to make any future predictions of "bailouts" but we are working very hard everyday to ensure that we are protecting the taxpayer and protecting the fha.

>> now, for investors they buy these loans at enough of a discount that they can do really aggressive modifications and try to keep people in their homes and paying. if they do foreclose, prices are actually coming up. and they could profit on the foreclosures. interesting the fha commissioner told me that they're not selling all the loans they insure, the bad loans, because they're actually doing better on selling some of these foreclosures making better profit and making more money back to the fha. plenty more of this details on the blog. >> diana, thank you very much. chesapeake energy's embattled ceo, aubrey mcclendon, facing shareholders today. this comes as the nat gas giant strikes a $4 billion pipeline deal. chesapeake shares higher right now by 42 cents at 18.27. over the past year it's been an unhealthy slide off more than 38%. the ceo mcclendon is under fire of course as you probably know for his compensation package and other dealings that call into

question whose interests he put first. kate kelly is live at the meeting in oklahoma city. this has been a wild one, kateka >> it has, tyler. i think the flat share price you're seeing suggests that essentially today worked out the way people might have expected. aubrey mcclendon, the ceo, is definitely embattled and got a bit of heat during the meeting. at the same time, there wasn't a lot on the docket that was going to move the needle today. two directors, however, were not re-elected by a resounding negative vote. dick davidson and berns got about 26%, 27% of the vote a piece. they will resign. it's nonbinding. the board doesn't have to accept the resignation, but i'm told they will. that signalled shareholder dissatisfaction. and shareholders approved about 53% of their votes to have reincorporation for their company in the state of delaware where rules in terms of board directorships, when those expire and are up for re-election is a little more shareholder

friendly. they also approve measures to make it easier for shareholders to nominate directors. but i think the shareholders who were there, including some that made these proposals felt good about the tenure and felt good that the group was voting along side the activist. let's look at garland. >> today's vote is more than holding two directors accountable for their costly fair yul. it's a referendum on a board that's failed to exercise effective independent oversight of a willful ceo with a pension for risk. >> that's michael garland who had a proposal on the proxy today in terms of allowing shareholders greater representation on the board. now, he noted to me afterwards he's not aware of a situation in which directors like hargas and davidson running uncontested got such low percentage of the vote. that gives you the feel for the sense around here. how did aubrey mcclendon deal

with this? he came up with a four-part plan of action. we're going to shift more dramatically from natural gas to liquids, engage in a higher return business model, continue asset sales through 2012 and 2013 and continue our corporate govr nan reform. that's what he's focused on. >> kate kelly, thank you very much. and as mr. mcclendon faces that angry cloud, the "new york times" deal book reporting once red sent investors are joining the shareholder results. on the phone is kathrine reynolds lewis with the "new york times" deal book. kathrine, i'm going to start with you if i could, please. what are you hearing and what are you witnessing from shareholders? and do you indeed expect this to continue as all of these companies start to have their annual meetings and boards come under increasing scrutiny? >> well, it's been a fascinating and extremely dramatic proxy season for sure with, you know,

we always are used to the traditional activist investors putting forward proposals. and that's a drum beat that's been growing in recent years. but this year we've seen a much wider cast of characters coming forward with their own proposals and taking their votes andnd responsibilities as shareholders much more seriously. >> ty, do you want to get in here? >> sure. let me jump in with a question for sarah. it seems to me that aubrey mcclendon, for all his bravado and strength as a ceo is rather like saying sebastian being shot through with arrows. he's lost seats on the board. he's lost his chairmanship. is he going to lose control of this company he's credited with building? >> well, when i was talking with some shareholders this morning, they were calling for exactly that. they were thinking that that was essentially what was going to happen. it's pretty unusual for two directors standing for re-election to get voted off the board. if it's nonbinding, it's good that they're taking that step. but now he's essentially

surrounded by what you can say is a hostile board. and his shareholders in large part have turned against him. so i don't really see how a ceo however good his plan might be can really operate in that environment. i mean, it's -- he's obviously exhibited a huge and stunning kind of collapse in corporate governance here. >> katherine, do you agree with that? even if he has a terrific plan and he outlined some of the details about how he's going to change the focus, et cetera, can he execute without the board's support? or should he basically exit, keep the plan in place perhaps and allow the board to bring someone else in to run the company? >> well, certainly it's a moment of truth for him and for the company. and i'm going to be watching with a lot of interest to see as new directors with a different agenda come on to the board, how they are able to work with the existing plan. and, you know, it's easy to kind of predict deadlock and predict

collapse, but from reporting the story we were interested to find that people who have served as disdent directors who have come onto a board of a company that's somewhat troubled or in a moment of crisis are able to actually move forward and effect change. and it will be very interesting to see what happens next. and i'm a little reluctant to make predictions just because it's such a fast moving situation with a lot of very intricate and vocal people putting forward proposals. >> sarah, listen, when you've got carl icahn putting board members on and sam putting board directors on, that's not really a recipe for job security for ceo. but one of the things that icahn apparently said is do not take off the table the possibility of selling this company. do you think that is a real possibility now? >> well, aubrey mcclendon essentially answered that at the shareholder meeting where he said that that was not on the table. so that could be the issue that

really where they come to blows because in some ways you could expect icahn to come out and say something like that. but if that's really something he's pushing for, aubrey mcclendon built this company, he's going to be very unlikely to be willing to do that. so i think that could be potentially one of the main sticking points here. >> katherine lewis, sara ellison, thank you for being with us. we'll have breaking news on facebook after this short break. [ male announcer ] this is genco services -- mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better.

♪ helping you do what you do... even better. the hyundai genesis. in a new, faster-acting formula. s tio-y siin lxtes zemethan a porsche panamera s. the 429 horsepower genesis r-spec. from hyundai.

coming up on "street signs" at the top of the hour, the reasons for hopium and the balance of power for your money. where will the dow and gdp be without the euro hangover? plus a top money manager on why he sold his shares of jc penney. should you be out on the jc penney experiment as well? and a good old fashioned food fight on mcdonald's.

is it time to wave the red flag over the golden arches? all those things coming up top of the hour. back to you guys on "power lunch." >> all right. thank you very much, mandy. we've got some breaking news now on facebook as we mentioned before the break. maria bartiromo is here with the story. hi, maria. >> hi, tyler. thank you very much. cnbc has learned that ubs has a problem with facebook. the firm sitting on losses sources tell me could be as high as $350 million. some ten times more than the $30 million number that is currently being speculated in the market by others. the firm is preparing legal action against nasdaq as a result of these losses. the issue has to do with the failure to get confirmations and executions from that facebook trade on day one and day two. i'm hearing ubs wanted a million shares, but when it did not receive confirmations, repeated the order multiple times and left with much more stock than one million shares. now, i've spoken to ubs. and they've given me this

stateme statement. given the size of our u.s. equities business and our role as a major market maker, consistent with our policy on market comments on our positions or intra-quarter performance, we are not disclosing the amount of the loss, which is not material to ubs, they say. we are continuing to consider avenues to recover our losses in this manner but have not yet taken legal action. now, there have been reports in the market that ubs's market making arm is down $30 million to35 million. but ubs itself has not disclosed the full extent of the losses related to facebook on the trading desk. as i understand it it is preparing a lawsuit against nasdaq right now. whether nasdaq will be liable for such a loss is debatable. it's important to remember that ubs was selling much of the excess stock that it received. in fact, at the end of the day sources tell me that nasdaq most of the sources in this story believe that nasdaq should have halted the stock when it was clear to the entire market that the confirmations were not

coming out. apparently ubs tried to unload the stock at $35 a share, but they could not catch a bid at $35. they sold some of that position -- their positions under $30 a share. you see where the stock is right now. as it was dropping, ubs was a big seller, the losses were mounting. it's not clear whether ubs has hedged this loss in any way. by the way, ubs was not part of the deal to take facebook public, and nasdaq is having discussions with all of the major banks and wholesalers to understand where this liability lies. virtually everybody in this situation now will say the deal was mispriced, too big and the system was just overwhelmed. this fallout continues, tyler. and of course we're going to learn more because there are deadlines in place as far as when these banks can put their claims forward. so we are going to get these disclosures at some point. but there's no reason ubs has to actually tell you unless they sue nasdaq, you know -- >> amounts. >> -- how they lost that money. >> and obviously the $40 million set aside nasdaq talked about

earlier this week, if these numbers are correct, $350 million, that's a drop in the bucket for that. but let me ask you this, how did -- maybe you understand, maybe it's so arcane i can't understand at all, they were putting in multiple repeat orders, i want a million, did i get my million? >> there was so much confusion in disarray on that day one, they wanted at least one million shares and ended up putting the order in repeatedly. as they put the order in repeatedly, they were getting more stock, more stock and then they were sitting on -- >> they had no idea how much they had. >> some people are talking 40 million shares. i'm unclear in terms of what the size of the position was, but we're talking about way more stock of facebook than ubs wanted. that's when they started selling it. they couldn't catch a bid. they sold it under $30. >> fascinating stuff, maria, thanks very much. >> i think the next question here is who's next. you haven't seen the major banks out there really disclose to the true extent what the losses are. we're going to be hearing that

in the coming weeks. >> very interesting. maria, thank you very much. we're going to take a quick break and back with more "power lunch" right after this. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... ll ]it's another reason moi'm with scottrade.ying... have you ever partaken in a car insurance taste test before? by taste? yes, never heard of it. well, that's what we're doing today. car insurance x has been perfected over the past 75 years. it's tasty. our second car insurance... they've not been around very long.

mmmm... no good! no good? no good! so you chose geico over the other. whatever this insurance is, it's no good. ok so you... [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. [ male announcer ] it would be easy for u.s. olympian meb keflezighi

to deposit checks at the nearest citibank branch. ♪ like this one. ♪ or this one. ♪ or, maybe this one. ♪ but when it's this easy to use citibank mobile check deposit at home...why would he? ♪ woooo! [ male announcer ] citibank mobile check deposit. easier banking. every step of the way.

all right. ahead of what could be a very interesting weekend in europe, the dow jones industrial average still mustering a gain of 64 points on the trading session. that's about a half a percent. nasdaq's up .75% on the trading day, 20 points. s&p 500 holding the 1320 mark right now. it's up about .5%. confirming the move in the dow today is the transportation average, which is up almost a full percent on the trading day, which is bullish if you follow dow theory. you look for confirmation of any rally in the transports, part of that is because the energy and oil markets have been to the downside. in fact, crude oil is down just under 2% on the trading day. the yield on the 10-year is back to 1.625%. traders were seeking a safe haven in the long bond earlier this morning. and the 10-year earlier this morning. that's eased a little as we go into the afternoon trading session. very interesting trading day on the markets. we'll be back with final word on

"power lunch" in just a second. . tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550

how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. welcome welcome back to "power lunch." brian shactman here at the markets desk. when a few prices go down, airlines can make more money. first look at ual, united.

listen, a little lunchtime lull, maybe investors taking a nap and then started buying again. that stock up 1.3%. expand a little to the entire airline sector and you see a lot of strength today. u.s. airways more than 6%. delta, southwest, jetblue, all 1% or better. i hate when that happens. >> absolutely. just go with it when the oil price goes down. dan fitzpatrick's been with us all week. thank you, it's been great. >> my pleasure. >> what are you looking at this afternoon? >> i'm looking at westport energy. jim cramer's talking about the fundamentals tonight on "mad money." but we want to look at this pullback. it's a huge pullback in westport energy. but you can see the uptrend is consistent. the stock just ran way up. now it's coming back. this is your buy point at $29. >> the ceo of that company will be on with jim cramer tonight at 6:00. >> right. >> sue. >> all right. that does it for all