>> ual gave guidance. potentially a lot of upside to earnings. >> facebook coming around to the store. you can buy it. >> energy transfer partners, buying it. >> "power" starts now. "halftime's" over. the second half of your trading day begins now. if you are watching us right now you're in much bter shape than the more than 2 million households are indiana to my hometown of washington, d.c. and down through north carolina still without power almost three days after very rough storms ripped through those states. more days without power, certainly, in store for many. and then the big bear alert. it -- you hear that? it's not even warning season yet but warnings are piling up before you make your next trade heed the siren. we are going to talk about that. here's the big market board right now. the dow industrials down 44 points or a third of a percent. the s&p 500 off by about 1.75%.

nasdaq up. gold down $3.60. crude off at 8269. we got it all covered for you beginning with sue now at the nyse. hey, sue. >> good to see you, ty. we have two main stories today on the state of power. one pli brings hope far big problem and the other is just a big problem. kay kelly is reporting on a big relief and steamy washington as millions suffered through the heat wave without power. hampton, over to you. >> reporter: well, sue, three days after violent storms moving through the area, take a look. scenes like this in neighborhoods from baltimore here in the washington, d.c. area and to the south and northern virginia, let's take a look at the current numbers we have on how many people without power and for how long. an estimate 480,000 people in the baltimore, d.c. and northern virginia area still without

power. pepco serving the district and maryland, 90% service restored by the end of the week. also, a part of all of that, hundreds of traffic lights out throughout the area causing all kinds of traffic havoc. also over the weekend, we had spot shortages of gasoline, stations being closed and longer lines elsewhere. looking as the cleanup goes away, crews we are told coming from as far away as canada and texas helping with the effort to try to restore power in the area and looks like weeks before we have a semblance of normalcy. a big break in this, a lot of people gone away for the fourth of july holiday so traffic overall is a little lighter than usual here and in the d.c. area, the federal government is employing a very liberal leave policy as far as workers actually showing up for work today. sue? >> well, that's a little bit of a silver lining. thank you very much. the two power players feeling

the heat, pepco down about a tenth of a percent. they're down in the maryland area. dominion resources a bit further south, on the plus side by a half a percent on the trading session. ty? >> deexcite the problems, an energy problem in the mid-atlantic region a lot closer to a solution today. kate kelly has the details for us from new york city. kate? >> reporter: thanks so much, tyler. after delta airlines bought a refinery for $180 million, the carlisle group is purchasing a larger area refinery. essentially for free. in a deal announced today, carlisle is purchasing a 330,000-barrel a day plant of sunoco for no cash and the carlisle deal which companies expect to finalize in the third quarter is being hailed by officials as a win for american jobs, a real fourth of july story. indeed, white house economic adviser sperling had a hand in the deal and pennsylvania's governor and philly's mayor.

facing slimming margins in the refining business, sunoco planning to idle the refinery in august and laying off 850 workers if a suitor couldn't be found. carlisle has plans for the plant and using a high speed rail service to bring oil from the shale formation in north dakota to the area and cheaper than shipping it from africa or europe. it's likely hiring a partner looks like jpmorgan to ship crude to be refined here and that's a process that should be cheaper than the onset of negotiations and cost is a factor thinking about the economics of this. >> all right. kate, thank you very much. gasoline prices hit the lowest levels in almost six months. the national average is now $3.33 a gallon. and of course, it can go lower or higher depending on where you live, sue.

>> it sure can. energy, ty, the worst performing sector so this far this year, down about 5% or so. will the sector get recharged in the third quarter? carl larry is president of oil outlooks and opinions. good to see you. >> good to see you. >> do you think the second half bodes better for the particular industry? >> i think so. i think the big thing is really going to get the bottom of the economy. god forbid we don't and then a recession and nothing to do about that. if it's the bottom and go up, i think all these oil equities have an upside to them to like. >> do you have favorites in this particular area that you would play right now? >> i think the best bet is stay with the refining sector. as jobs created and more people driving, probably looking for at velero, hesse. >> you wouldn't go in to the big integrated oils? >> not just yet. there's risk gee politically and globally. that's the problem here and not ready to go here. >> iran is i think what you're referring to, correct?

>> i am, yes. >> some of the sanctions coming in to effect. how is that perhaps support them long longer term? >> like today, talking about the strait of hormuz and talk of that and affecting the area. staying away from that for know. >> what about an upside and downside target nor crude? say we get the geo political tensions heightened, especially given the fact that many countries is upcoming holidays and tends to give the opportunity for people to move rumors in this market. what would be your upside tar t target. >> i think seeing something bad happen with iran, probably 120 to 150. downside target holding here and recovering, 90, $92. >> carl, thanks so much. appreciate it. next half hour, the energy is the worst-performing sector

but we'll talk about the number one performing sector this year. telecom is up 13% k. that run keep rolling in that's coming up. ty? sue, so the question remains here. how do you play energy right now? worst performing sector the first half. matt cheslok has joined us. matt, what would you do? >> i agree with carl here. i like hess. mid-40s here, down in the q2 and a pure oil play. i like btu energy. there's a renewed interest in coal in china and india. it's down over 6 weeks and look for a rebound up to the $35 level. finally, tyler, ung, natural gas. we have seen a floor in here. we are seeing conversion of power plants, also exports in the l and g sector and natural gas is a good place to put your money and down over 70% in 2 years. although a 20% bounce recently,

i think forward we have upside. >> sometimes you have to buy the ones down a lot. >> absolutely, tyler. >> all right. let's go to market flash with kayla. >> watching shares of open table right now down more than 10%. near session lows right now. downgrading the stock to a $43 price tar of 50 saying reservation growth is slowing. not enough people dining out. long-term outlook is still bullish. tyler? >> thanks very much. earnings season is going to start within a few days and concern is mounting there's trouble on the horizon because of problems in europe. jeff cox is here. jeff, what do you think and what should investors look out for? >> thanks, tyler. we call this period right now the confessional, where companies come to investors and say, we'll do better or worse than we thought. so far, it is not good news. almost 4 to 1 companies saying

we're going to do worst than we originally thought. >> some of these are not instant companies. ford. procter & gamble. >> starbucks, really big names in the market coming out and warning. what's it all about? europe is the story right now. that companies, it is really starting to spread throughout the globe that slowdown in europe is hitting u.s. companies, far and wide. second thing we're looking at is fiscal clip. it's added a lot of policy uncertainty. complicated business decisions. number three, so now look out investors and consumers. worst stocks hit hard here with the negative revisions, discretionary showing that consumers in the u.s. are under pressure here. >> jeff, thanks very much. see you again soon. sue? ty, the detail that is jeff gave us may have factored in to the fact that two weeks ago goldman sachs called for the s&p to hit 1285. well, timing is everything.

we're at 1358 right about now. today, they are, however, repeating that call. the note says our forecasts are 1300 in 3 months, 1250 by year end and the firm goes on to cite problems in europe as jeff just did and asia and their likely negative impact on u.s. stocks. airbus, the big european planemaker is coming to al l with thousands of new jobs. phil lebeau is live in chicago with details. >> this is a huge deal not just for airbus but the southern manufacturing sector. looking at the jobs added down there. a lot of pomp and circumstances in mobile, alabama, as the company announced it's investigating $600 million in a new final assembly plant, a thousand jobs. airbus is going to be built -- see the plane there on the front? building this plane, the a320 down at that plant including the next generation fuel efficient version. there are 3293 and the time

frame looks like this. production by 2015. the first delivery in 2016. once it's fully running by 2018, expect them to build 40 to 50 planes per year. here's the airbus ceo earlier today about the importance of choosing mobile. >> we've been talking about building aircraft here for many years, seven years, actually. and somehow the pieces never quite came together. but today, quite simply, the town is right. the talent is right. and the time is right. >> reporter: the time is right for eads investors. parents of airbus. take a look at the split of eads and boeing over six months. no comparison at all. used to trade pretty much in tandem. we are talking with him first on cnbc next hour on "street signs" about the implications of this move and why it is not just about commercial airplanes but

defense contracts in the future. talking about that next hour. back to you. >> thank you very much. two key stories in the pharmaceutical space today. seema mody reporting but first scott cowan on the biggest health care settlement fraud in history. $3 billion in civil and criminal penalties. let's look at shares of glaxosmithkli glaxosmithkline. up on news of the settlement. >> they telegraphed it, tyler. big money and lifts a big cloud potentially from flax smith klein. at least that's what the stock is suggesting. they were battling on a number of fronts. under this agreement, glaxo paying a criminal penalty and failing to report clinical data on the diabetes drug avandia and $2 billion in civil penalties for sales and marketing practices and false claims under the medicaid reimbursement program and agrees to sweeping

reforms including changing how its sales force is compensated. here's deputy u.s. attorney general james cole. >> today's multibillion dollar settle is unprecedented in scope and size. it underscores the administration's commitment. >> for its part, glaxo said it learned from the mistakes. the company says and taken actions in all levels of the company and announced setting aside the $3 billion to cover the expected settlement and see how the stock has bounced back since then. we have reported prescription drugs are a particularly difficult area in the fight against health care fraud and learn more about what the feds are trying to do "health care hustle" tomorrow afternoon 2:30 and then 7:00 eastern because everyone's going to be up at

7:00 a.m. on the fourth of july. >> i will be. now the big deal in the space. bristol-myers buying am ylin. there they are. down 7 cents for bristol and up 2.50 for amylin pharma. seema? >> big deal. they're buying amylin roughly $7.1 million. astrozeneca is chipping in to co-develop the drug pipeline with bristol. bristol-myers and astra zeneca aggressively looking for ways to build out the drug pipelines as they face the loss of blockbuster sales. brit toll's best selling plavis with $7 billion in sales in 2011 just went off patent in may. amylin has two diabetes drugs and bristol and astra zeneca looking to market globally. analysts expect the sales $1.5

billion by 2018. the diabetes market is already a crowded space. international drugmakers are competing fiercely as people continues to drug rapidly rising speculation of amylin acquired and helping shares rise higher, up around 170% just in 2012. >> look at that. up another almost 9% of today's news. good to see you. sue? well, ty, on this first day of the second half, cnbc's reporters fanned out across the country and world for sector channel checks. courtney reagan now. >> here's what to watch for in the retail sector in the quarter ahead. it's back to school time. the second most important season of the year for big retailers. this year cotton and energy prices are lower than what we saw last year providing a nice margin cushion for retailers,

particularly those that sell clothing high in cotton content. but as retailers fight for the back to school dollars they have to contend with the sluggish economy. most surveys indicate spending will pull back if conditions worsen. analysts have downgraded names, concern of slower spending across the board. that's your third quarter channel check for retail. i'm courtney reagan. >> thanks very much. devastation out west. firefighters finally getting a handle on some of those terribly destructive fires in colorado. as the homeowners are coming back, they're finding heart break. we'll tour the damage when we return. let's look at the top five dow stocks so far this year. surprised? well, maybe not.

welcome back to "power lunch." we're watching welcome back to "power lunch." we're watching shares of lincare. up better than 21% on a deal to be bought by an industrial gas producer and lincare makes oxygen and respiratory products. shares up nearly 65% since the blog broke the story last week and saw a deal today. that's a good one for shareholders. back to you. >> all right.

thank you. fire officials say the biggest fire this season is now 55% contained. the fire is in its tenth day, almost 20,000 acres scorched. some homeowners forced to leave their homes were allowed back yesterday and they saw that damage firsthand. it's really quite devastating. the fire claimed 350 homes so far and the worst fire season in colorado history and only july 2nd. another firestorm is brewing, this one's in the persian gulf. iran's national security and foreign policy committee drafting a bill calling for iran to stop oil tankers going through the straitless of hormuz going to countries that support sanctions. sharon epperson has the reaction for us in the oil markers. >> reporter: hi, sue. the traders say it's a wait and see situation in the persian gulf. we are, of course, hearing these reports about a parliamentary group that's drafted a bill and

they say, of course, perhaps that's just more rhetoric. but it lets you know that iran is ready. they have to go through the council, a specific council appointed by the supreme leader. if it passes through parliament before it could happen. it's still unclear how to verify the ships but the fact remains that iran continues to talk about what they will do in light of these sanctions and how much they could hurt them in terms of the ban on their oil exports. they've already said that they could hit key targets, including the straits of hormuz and they said they have the missile capability to do so and traders say in addition to friday in $6 or so and the band in effect yesterday is part of the reason why this session started out toward the highs for brent near $98 a barrel. but sue, that economic data we got today, the ism number, quite weak and really continued to pressure u.s. oil prices even more so, of course, than the brent crude market.

back the you. >> indeed. thank you very much. a new record for hollywood. plus a look at how the business of entertainment will fare in the second half of the year. also ahead, a new way to market divorce. before the break, though, the worst five dow performers so far this year. ♪ [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine.

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they've been keeping stats like for the first time since they've been keeping stats like this, two "r" rated movies went one-two at the box office in the opening weekend. "ted" was first. "magic mike" is second. all day here beat reporters put together channel checks sector to sector. julia boorstin on the business of entertainment starting the second half of the year. >> reporter: here's what to watch for in the entertainment sector in the quarter ahead k. the box office continue to outperform last year? that hinges on the performance of super heroes in july. warner brothers "the dark night rises" and tony's." so will people watch the ads or cut the cord? netflix subscriber numbers will be under the microscope and could the technologies that threaten tv draw more legal challenges or roll out more broadly? that's the q3 channel check for

entertainment. i'm julia boorstin. more channel checks throughout the day. time now meanwhile for "annual this" to analyze the analysts and matt is back with us. deutsch bank, downgrading u.p.s. to hold from buy. the company citing the stock here fair value and they say given accelerating uncertainty, the relative premium valuation and expected deceleration in share buy backs. the stock up more than 30% in two years. do you agree with this call or not? >> absolutely. i think it is a hold here. we have seen the move here from 56 up to 78. i would hold here. nothing more to be said about that one. >> can't quarrel with that? >> nope. >> moving on, upgrading tiffany saying basically the recent pullback is share price opened a window of opportunity in to the one of the best brands in luxury. down more than 20%. there it is on the wall. what do you think? >> i would agree with that on a valuation level but i think tiffany's as far as you go forward, people seeing more

range rovers than diamond necklaces out there. i'm caution but maybe a shot on the short term. >> the next one, ray monday james upgrading pandora. my favorite music service, folks. the firm noting the upgrade is based on, quote, our expectation for increasing mobile monitorization. >> i don't know what that is. >> i don't know either. >> facebook can't do it. not sure pandora can do. if my kids aren't on pandora, i'm not a buyer. i think secondary to itunes out there and clearly second so i would go -- >> best in breed? >> i'm holding. >> down from the initial offering price a lot. >> right. >> thanks very much. up next, the metals close for a monday. we're going to have mobile monetization. led by -- you want to be surprised? look at that. led by sears for the year. even up a little bit today.

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all all right. gold market's getting ready to close right now and expected to be a pretty volatile week with data overseas and we have data

here in the united states, as well. sharon rejoins us tracking the action in the gold market this time from the nymex. hi, sharon. >> hi, sue. yeah, a lot for traders to watch this week. we had the ism manufacturing data this morning and disappointing. now the services data on thursday. the adp report, as well and then the non-farm payrolls and ecb rate decision, there's a lot. and you can see gold ready to take a breather after the tremendous surge we saw on friday. gold just under $1,600 an ounce here. down about $6 or $7 and continuing to watch what happens in terms of the anti-innation anti-inflationary signals out there. we're watching when's happening in the copper market because there's a report out today that many traders are looking at this as there could be a squeeze in the copper market as glencore,

key trader, of course, in the metals market owns quite a bit of the inventories at the london metal exchange and watching the copper market, as well. not a material impact. but something to bears watching. back to you. >> thanks. mary thompson's with me at the nyse. they're clearing out for the holiday. >> they are. >> we will have to turn off the lights, the two of us. >> a split week and not quiet all week. you have half and half. half of the population here. but you know what, sharon mentioning that the data has a big impact and the stock market, as well. the dow is actually off of its session lows. the other thing that's actually impacting the market is a strength seeing in the deal stocks, specifically bio taech and a lift to the nasdaq. we had a weak manufacturing read here in the u.s. and china, as well. these are the leading losers in the dow components and take a look at how industrials are trading when you compare them to the transportation. another sector that's under pressure in today's session.

the transport actually underperforming industrials in the session. despite the strength that we are seeing in airlines which a nice bit under them in large part of a bullback in the price of oil. airlines across the board are looking very, very strong in today's session. i want to touch on the european banks. u.s. banks are slightly weak, as well. were weaker earlier. barclays higher in the wake of the chairman stepping down because of that interest rate fixing probe that that's been involved with and other players there, as well. >> thank you very much. mary mentioned the bio tech sector so let's go to the nasdaq now. >> looking at the nasdaq marginally higher today. according to the stock traders almanac, while july is historically the best month of the third quarter for the dow and s&p, it is the worst for the nasdaq. keep that in mind but look at the deals.

dell buying quest software. and analyst saying that this in the end is a fair price for the company and in line with street estimates of 17 times 2012 eps. quest is trading flat on the day we in anticipation of the deal up 19.5% and ingram micro buying brightpoint. ingram looking to expand and diversi diversify. get away from the core pc business. up big today. >> thank you very much, jackie. all right. kayla has a market flash for us. >> we are watching the railroad sector today. some key moves of key bank today. the company downgrading green briar and that's causing them to lose most of the gains of last week and upgrading gatx. the reason is they say you have to be defensive on the railroad sector. of course, greenbrier manufactures rail cars. that's the trade they think is good right now, gatx.

sue? bond traders in the uk getting extra time off this summer. as scheduled due to the olympics, no bond auctions in the weeks of the games. but the u.s. bond market is always actively traded and the corn market these days with the drought out there. rick santelli is live in chicago to wrap it up for us. ricky? >> the uk has a good work ethic and the u.s. would never close bond markets and auctions for the olympics. i should hold my tongue. look at the intraday 10. you can clearly see a 10:00 eastern on the spongy headline ism and important components like exports, new orders, export, all those at the newest levels since '09 hit the marketplace and opening a chart up to june 1st, we are about ready to break out of a range at

145 from the last jobs report. only 69,000. but it's all about grains today. even though there was a lot of rains in the midwest and storms in the country, it wasn't the kind of rain and it was spotty that the crop needs at this point. during its tasselling or fertilization process. we want the monitor this whether it's back to back, continues to go up or how much it's off the lows in june. 3:00 central/4:00 eastern, a rating from the usda and moving the markets for tomorrow. tyler, back to you. >> i give you a god medal on that report. thanks very much. telecom surging today trading at levels not seen since june of 2008. it was the best performing sector of them all in the first half of the year. do a little channel check now with christopher king, director of telecom and cable services analyst. mr. king, welcome. do you think telecom can continue on its run and be if not the certainly among the best

performing sectors in the second half of the year? >> thank you. good afternoon. yes, you know, i think that telecom is very well positioned, particularly in that defensive market. i think investors are engaged with the sector over six monthings primarily because in the case of verizon and at&t, it's viewed in a choppy market. >> verizon and at&t really the only two to look at here or not? >> well, certainly, sprint is probably the most interesting name rightly or wrongly in the sector. extremely volatile. outperformed the bells significantly year to date. they have certainly in our view taken bankruptcy off of the table for a few years at least. i think that was a concern six to nine months ago and helped buoyed the stock and going through a multi-year process in terms of migrating the various

wireless networks to one or two larger networks. i think there is some investor hope to improve margins for them over the course of the -- >> more volatile than the number one and number two in the marketplace. as you handicap verizon versus at&t, how do you come down on it? >> we prefer verizon. i think that their deal with the cable companies in terms of verizon wireless agreeing to buy a significant amount of swath from the cable operators and verizon wireless entering in to joint marketing agreements with one another, i think that could buoy verizon wireless with aex collusive or a priority access and a differentiating factor of verizon wireless over six to 12 months. >> very interesting. thank you. >> thank you. matt with us again with his best plays in telecom for the second half of the year. which ones do you like, matt?

>> well, i want to talk about verizon and telephone here first. they'll get in a little bit of a bidding war here on services that they provide. bigger than just telecom and wireless. i think i would be cautious on them up here, multi-year highs. so i do like sprint here and a little bit more volatile. it's still down about 52% in the last couple of years. although a good bounce of 33% over the last quarter of so. sprint here is probably a play with rolling out the new lte platform in two weeks and also i think that, you know, they're going to catch their brethren here. way more aggressive here. sprint is better play. >> thanks very much, matt. sue? other headlines, ty. apple paying $60 million to chinese tech company for the use of the name ipad in china. shares of apple in this rather modestly down day on wall street have been moving. we'll get you a quote in a minute. meantime, barclays chairman

steps down. shares last trade are trading up about 3.75%. dell buying quest software for $2.4 billion and shares of dell down a little bit in this market, down about 11 cents. ty? mexico's former ruling party now back in power after preliminary results showing the victory of nieto at the country's new president and doesn't have a clear majority and is likely going to have to negotiate with opposition parties to pass any economic reforms. there's focus on the election of our neighborhood to the south and more focus in the capitals of europe 4,000 miles away. >> reporter: here's what to watch for in europe in the

quarter ahead. first, the greek bailout renegotiation. will the country get more leniency of the european partners, more time to pay back the bills? perhaps even more money. also, the spanish bank ba bailo bailout. how much money for the banks? will it work? will it calm the markets and give more investor confidence? will it lower the interest rates and italy's, as well? olympics in london and some talk within the currency markets to see strengthening in the british pound because so many tourists will descend on the uk. that's the q3 channel check for europe. i'm michelle caruso-cabrera. coming up, walmart turns 50. so up next, the impact it's had on the u.s. economy. first, snapshot of how walmart and the other discount retailers are trading right now in this session, down just a little bit.

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welcome welcome back to cnbc. watching shares of best buy rising on continued speculation of the chairman preparing a buyout deal for the company and a reuters story saying he might be waiting for september unless he gets financing in the meantime. still, doesn't seem like any deal is imminent and according to reuters. now mandy with what's coming up. >> thanks for that. coming up, top of the hour, airbus is coming to america announcing to open the first plant here in the united states and we have the first interview with the ceo. with record heat gripping the country, we'll show you the surprising reasons the economy might be sweating. and the tori of taco bell making refried dreams come true for a very tiny alaskan town. it's now back to sue and tyler on "power lunch."

see you top of the hour. >> thank you. well, last week apple's iphone turned five. today, walmart turns 50. the first store opened up in the town of rogers, arkansas, july 2nd, 1962. it became incorporated in october of 1969, before going public on october 1st of 1970 with 300,000 shares priced at $16.50 apiece. in 1997, walmart took woolworth's spot on the dow jones industrial average and in 1999 the largest private employer in the world with 1.14 million workers. shares, they've split 11 times. and the stock is having a great year. it's up about 32% or so in the last 12 months. courtney regan with more on the impact on the economy in the usa and been a big one, court. >> it has. walmart says the overall impact on the industry and beyond changed the way business is conducted globally and increased

consumer benefits. walmart changed retail but not everyone thinks it's a net economic positive. the 1.4 million u.s. employees account for 9% of the workers and since 2005 the retailer's u.s. employee count increased 8% but total trade unemployment increased nearly 2%. university of missouri economist basker found for every 100 jobs created by walmart, jobs are lost at competing establishments. over next five years, netting 20 new jobs and a study out of university california estimates an entry of ten stores lower the average hourly wage of retail workers in the state by 2%. walmart responsible for 1 1% of retail sales, they debate the cost and benefit of the landscape. basker says a supercenter depresses already low margin grocery prices by around 1%. some think that the $4 generic

drug program drove inflation to the lowest level in decades. others say walmart represents the best of the american economy, supplying merchandise at competitive prices. it's technological advances. it keeps the costs low, translating to low prices and high sales volume, a positive for shareholders and consumers. the debate continues. sue? >> indeed it does. thank you very much. the finance.yahoo.cnbc poll continues. 60% of you said yes. up next on "power lunch" a famous wall street name and his giant gamble. before the break, though, the worst performing nasdaq stocks of the year so far. green mountain tops the list. we're back in two.

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time for today's "power run down." if you have power you're happen pentagon today if you live in the east. the first trading day of the second half of the year so this is the sentiment of the

investors you talked to about the second half of the year, kayla? what? >> i think you can say it's getting better. traders were just excited to see a calendar that didn't start with the word june. that was important with so many negative events in june. now you have the fiscal cliff. you have the election coming up. there's unknowns here and where i traffic people are saying, all right, some of the confidence in the boardroom is there. we could see more transactions and begath more confidence. >> we have seen some deals. john? >> i talked to people worried that the market -- everybody thinks we have until the fiscal cliff or until the election. they think they'll see a panic in the second half of the year way before that and could bring markets way down. >> i have to say i think we'll be lucky to get out of this year flat from here on down. that's my guess. >> the guys i talk to say that's the best-case scenario. >> too much else to happen. >> with so many other things happening. all right.

we haven't gotten to tom cat and katie holmes yet. playing in the world series of poker. right now, einhorn fin initialled 18th in the tournament 2008 or 2006 event? what do you think of a money manager going and playing in a poker tournament? >> there are money management firms that use poker as part of their training process. the idea being, you need to be in control of your emotions. you need to be able to take some risk and make decisions under a l lot of pressure and makes some sense of poker players being traders. >> you wonder if he's playing with house money. is this his investor's money? straight from his wallet? >> sure it's out of his wallet. >> think about poker and gambling, trader have to have that appetite for risks.

sometimes comfortable with that. last night he was in third place. right now, i just took a look. he is in 16th place. >> a couple of bad hands there, i guess. let's move on to the one if you have not heard this, you got to be living under a rot. tomkat, cruise that is, is breaking up. who will end up the winner this high profile dwrofs? will it be cruise or katie holmes? what do you say? >> he has the history of getting the kids. with kidman, two kids came with him. who knows what will happen with suri? i think the winner is katie holmes. doesn't have to be with tom cruise anymore and wear heels xwen so i applaud her. >> a good point. a good point. >> i have to say, it's definitely katie. there's no way tom cruise wants to end up in a new york divorce court litigating the secrets of the church of scientology for everybody to see. he's not going to fight her very hard on this. she has a pre-nup to get her a

few million dollars. i heard 15 million. she'll get a lot more than that. so the tom of the tomkat -- >> he'll pay the money to get rid of it. she filed in new york. >> it's easier to get sole custody in new york than in california where they have been living and that's why she filed here. i think she will get it. >> very interesting. we shall see. grew up in glen ridge, tom did, new jersey. >> how about that. >> separation, summer is usually season of weddings but seems divorce is giving a rise to a whole new economy. brian shactman on the business of divorce. >> reporter: it's common knowledge that about half of marriages end in divorce. but as many as 67% of second marriages and 74% of third marriages also fail. with a million divorces every year, there divorced people that need services starting with a lawyer. >> with an uptick in the economy, we have seen people

more willing to get divorced. so, in 2008 and 2009 people were dividing debt. today, they're dividing assets. in 2011, we saw 38% increase at the law firm from 2010. >> >> reporter: in the divorce economy, assets divided is from yachts to mansions to money. >> there are many wall street people who are now divorcing because their investment accounts came back again. the bonuses are coming back and now they have assets that they can split again. >> reporter: once divided, those asets go in search of a new lifestyle of psychotherapy to pension plans to new homes. >> you need to understand what that lifestyle they're looking for to target market that. >> reporter: for example, a broker could market this listing to a divorced father. >> this particular property has the bedrooms that is necessary and needed. there's a great pool overlooking the water. there's a dock out there so there's a lot of amenities for a fun time with dad. >> reporter: estimates on the

divorce economy range from $50 billion to $175 billion just in the u.s. >> financial planning services, legal services, movers, real estate brokers, mortgage brokers, there's a lot that goes in to the economy of a divorce. >> reporter: brian shactman, cnbc business news. >> wow. that's kind of depressing. coming up, the first on cnbc interview with the ceo of airbus to discuss the european company's plans for first assembly plant in america. that and much more. more "power lunch" after a quick break. according to ford, the works fuel saver package could literally pay for itself. jim twitchel is this true? yes it's true. how is this possible? proper tire inflation, by using proper grades of oil, your car runs more efficiently, saves gas. you could be doing this right now? yes i could, mike. i'm slowing you down? yes you are. my bad. the works fuel saver package. just $29.95 or less after rebate. only at your ford dealer. so, to sum up, you take care of that, you take care of these, you save a bunch of this.

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ally bank. no nonsense. just people sense. welcome back. i'm here with a "market flash." green dot on the rise after amex said to be pulling the cards from walmart. that's according to to a report of jeffries. up nearly 10%. back to you. >> all right. from talking about tomkat's divorce to debt, you are good. keeping an eye on pepsi. you didn't have water and drank a lot of gatorade. >> everyone did. flying off the shelves. i thought maybe fourth of july play, budweiser. that's up the other day and now