>> john? >> juniper, judge. >> wednesday earnings, marry it. going to beat. >> that does it for us. follow me on twitter. "power" starts now. "halftime " is over. "power lunch" starts right now. >> thank you very much. president obama pulls for an extension of the bush era tax cuts but not you make more than $250,000 a year. and the bears may be eating the bulls alive. "fast money halftime" had what may be the interview of the day and could move markets here. here's the highlights of the man who got it all flight 2011 joirks and forget about the bulls and the bears. look at that. sharks. look at that thing. that's a fin. that's a real thing. scaring beach goers after great white sightings and attacks on the east and west coasts. life's a beach. sue's out. mandy's in at the nyse and

heading to her in a moment. meanwhile, the top story. president obama saying he wants to extend the bush era tax cuts for americans who earn less than $250,000 a year. aemo javers live at the white house. >> reporter: it wasn't a cam pan speech. the president not autoon the campaign trail. here at the white house but it felt like a campaign-style speech. he had a backdrop of middle class americans who he said would benefit from extending the bush tax cuts for those under $250,000 a year. and while he didn't mention either president obama george w. bush or his opponent mitt romney by name he linked the policies of the two. >> we've tried it their way. it didn't work. at the beginning of the last decade, congress passed trillions of dollars in tax cuts that benefited the wealthiest americans more than anybody else. and what happened?

the wealthy got wealthier. but most americans struggle. >> reporter: the president also said that more than 97% of americans are below -- american small business owners are below that $250,000 tax credit threshold and would benefit he said extending this and said that republican efforts to portray it as a tax increase on small business owners are nothing more than politics, tyler. >> okay. i'm going to pick it up from there. thank you so much for that. it is that time of the year. i'm not talking about earnings season although we'll get to that. i am talking about the running of the bulls in pamplona, spain. two big names on wall street bearish. calling the s&p on the nose last year and here's what he's saying right now. >> you've seen it from technology, machinery, retail, all the economically sensitive

sectors. you take that combined with a strengthening dollar, lower oil and lower 10-year and less upside to earnings season. >> and then nourie roubini saying levelational force of policy easing can only temporarily lift asset prices. hope you understood all of that. brian shactman is roaming the floor. what are traders saying today? it still feels quiet here. >> listen. when's the impetus to buying? not a lot of volume here. traders across the board bullish. i'll tell you. what are the two possible catalysts? qe3. traders say that's a trade any wi and sell that rally in a heart beat and earnings expectations have come down so low that you get a lot of upside surprises. very few people think we're low enough. not only the slowdown in the

economy but the multinationals with the euro being as weak it is and rebounded a little bit today. those are the positive impetuses to buy and then everything else is negative. >> you have the lack of confidence. it's constant headlines out of barclays and then jpmorgan and morgan stanley and facebook and feels if the retail investor is thinking, you know what? all rigged anyway. why would i bother? >> listen. quickly, china huge question mark. don't know europe. jobs in the united states. >> hands off for that. manufacture lamore later on. something else for investors to watch, of course, is earnings season. it starts after the bell today. alcoa will report. shares down 10% over 3 months. ceo will be on "the closing bell" after they report later today. now, for the bigger picture on this upcoming earnings season, courtney regan is right here right now. >> thanks, tyler.

there were worries of a global slowdown due in part to the european debt crisis and the currency translation. drops in corporate and consumer confidence. second quarter earnings expected to grow and excludeing bank of america drops to 0.7%. revenue to 2%. 95 of the s&p 500 companies issued negative preannouncements and 29 positive. the weakest ratio since the fourth quarter of 2008. now, because of of bank of america financials are expected to grow almost 54%. but remember. this is kind of a weird one off. industrials a distant second. now, jpmorgan reports friday and it is again one of the most anticipated reports of the season. this quarter much of the focus will be on that trading loss from the so-called london whale. but as one analyst said this morning, if companies can

navigate even these difficult waters, it could be a good sign for the rest of the year. tyler, back to you. >> thank you very much. how do you play a market in which the bears have the upper paw? with a name like ponzi, ed, he has to be good. >> why? is there something unusual about my name? nobody said that before. >> you could have gone in human resources or pottery. you chose finance. >> think about the guys with my name that made it in this business. >> let's move on. what should i do here and do you agree that the bearish view is the prevalent one now? >> here's the thing, tyler. the s&p 500 is valued at about 15 times earnings right now, approximately historically where it should be. and unless you're really excited about earn this time around, i don't know anybody who really is, then it's pretty much where it's going to be. now, there's really not any

reason to be short. you could have the fed step in. you always have the bernanke put on to the market be aware of that. you should be long and i don't think too long or too strong about it. you have to be long but keep a lot of powder dry in case you get a chance to buy in lower. >> basically what i'm hearing you say is that the market is roughly fairly valued from where you sit. >> yes. but more upside than downside f. you want to go on valuation, there's really no compelling reason to get in to the market right now but as we know that's not how the game is played in 2012. it is all about fed intervention, central banks. >> we'll be back with you later on in the hour. thanks so much. >> terrific, ty. >> going to jackie for a market flash. shall we? >> thank you for that. watching archer daniels under pressure on the back of a downgrade of bmo. a market perform and taking the price target down to 32 from 36. the analyst saying that, of course, there's increase concern

regarding the health of the corn and soybean crops. watching that potential drought out there and could have a ripple effect across the value chain. back over to you, mandy. >> thanks very much, jackie. satellite radio provider sirius xm, look how it's doing and company is raising the full year subscriber and revenue guidance. now the company also believes it will add 1.6 million subscribers this year and revenue hitting $3.4 billion. as for yahoo! shares, currently flat to the downside bias as the board meets on wednesday to talk about the ceo search. according to cnbc. we should note that yahoo! and cnbc have a content sharing agreement. ty? next chapter in the barclays bank of england interrate fixing

saga is unfolding right now. kelly evans is live with the details in london. >> reporter: hi, tyler. the hearing's still going on and much of the focus on the key 2008 conversation between now former ceo bob diamond and the current deputy governor at the bank of england, paul tucker. the chief operating officer since resigned and felt that reading an e-mail summary conversation was leaning to lower the borrowing costs. bob diamond denied that last week and today we heard paul tucker deneeded such an order was issued and said there's no record of that conversation, at least that's what he indicated today. >> sitting here i greatly wish there were a note of it. the reason is these were completely extraordinary times where for many of us, not only

i, were rushing from meeting to meeting and making an enormous number of calls, taking an enormous number of calls and it would be wrong to suggest otherwise then that the routine system of recording things was clicking. >> reporter: so, paul tucker said also that it wasn't the bank of eng lanld's job to regulate libor and conflicting to the depths of concerns that he and the bank of england had at the time of the rate calculated and he said, in fact, they did look to other measures as a better gauge of financial conditions then and today. even as the tension shifts to what they did or didn't do and know about libor spector of litigation is weighing on barclays. just prior to the record settlement that they agreed to or had to pay to uk and u.s. regulators and hit by further downgrades in terms of credit rating and this morning its share prospects is well --

bernstein research says revenue next year could be 15% to 20% lower than they thought. back to you. >> thank you. the big air show under way in england and no air show without phil lebeau. let's join him live. hi, phil. okay. we do apologize. we do seem to have a technical difficulty there. i don't know whether you could hear phil but i couldn't. tyler, i'll hand it back to you. >> you think i know what to do with it now? getting it back to me? we'll come back to phil with the audio glitch worked out. two new reports out this morning showing renewed confidence in the housing market. is it enough to keep the spring surge going? let's go to where it's really hot, washington, d.c. maybe cooler down there today. >> reporter: yes. thank goodness.

now look, the housing market, depends on the economy and jobs but for now at least more americans think home prices will improve and more say now is a good time to buy. 69% of respondents to fannie mae's monthly survey said if they were to move today, they would buy. that's a jump from may and the highest level since the survey began in 2010. 73% overall say now is a good time to buy and perhaps most important those answering the survey said they expect home prices on average to increase 2% this year. doesn't sound like a lot but that's the most optimistic outlook this survey has seen yet. this perception is likely due to improvements in local housing markets. the list of improving housing markets gained four in july to hit 84 now. that's still out of 360 markets but look it's a positive right now. interesting that both these reports say despite a weakening in the overall economy housing is continuing with its recovery

though fannie mae's chief economist doug duncan questions it. got to keep it real, right? >> yeah. it's a real merger monday. several big-name deals, one from the world of soup. one from the world of health care and we have one of the key players in the wellpoint's deal, the cfo coming on next and first on cnbc. before the break, though. five big monday movers. take a look. there you go. all moving to the down side. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st.

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welcome back to "power lunch." i'm phil lebeau just outside of london, england a. big day for boeing, snagging an order for $7.2 billion selling 75 of the 737 max airplanes to be built in the next couple of years selling those to air lease corp. undoubtedly adds to the backlog and raise questions of whether or not there's a production bubble building. the ceo says that's not the case. >> as soon as we see data is that say there is's a bubble, we'll react. we want to supply them when they need it. not before or after they need it. >> reporter: year to date, boeing leads airbus in terms of orders and deliveries. in the past couple of years, airbus had the lead. the last five years it had the lead. this year, the coo says there

clearly is a softness in the market. >> between boeing and airbus, over 8,000 firm aircraft in the backlog. we're both building under 1,200 airplanes a year so do the math. if we sold no aircraft, probably running production for seven years s flat out. >> reporter: while leading in terms of orders and deliveries, the stock trails the parent of airbus with the separation in the last six months comparing the stocks year over year. mandy, we saw the big order of boeing today. i don't think we'll see huge orders over the rest of the week. much tamer market compared to past years. back to you. >> understood. thank you very much for that. well the poll, should president obama extend the bush era tax cuts? you can go vote now. we'll show you the results later on in the hour. ty? >> thanks. it is a merger monday.

campbell's soup buying bolt high school houbolthouse farms. bolthouse makes soups, juices and cookies. bigger deal of the day is wellpoint buying amerigroup of 4.9 billion. hi, bertha. >> soup's on for sure today. this deal is all about capturing the hundreds of billions of medicaid spending not just from the medicaid expansion under the obama health plan but new plans that cover the so-called dual eligible population, 9 million elderly and poor americans. wellpoint ceo says this is the key area of growth which drove the deal. together, the combined firm would have a presence in 19 states covering 60% of the nation's dual eligibles which amounts to about 180 billion in revenue out of a $300 billion market. together they'd surpass the

current number one in medicaid, united health covering 33,500 patients. the shares have rallied hitting an all-time high today, shy of the $92 deal price. the supreme court ruling gave the states the right to opt out of expansion but today jim carlson sees most states coming around. >> we're not sure how feasible it is for states to have their constituent pay in to taxes and watch the money cross in to neighbors economies and so forth when the federal government's picking up 100% of the tab. >> insurers are rallying on the day, particularly medicaid players and wellpoint says they'll partly prompt with debt. >> bertha, thank you. let's go to mandy with an interview. absolutely. okay. we have just heard the details of the deal of bertha. this is one of the key players behind it. wayne dev it is cfo of

wellpoint. thank you for your time. i want to get to the numbers. people saying that the 43 premium you're paying for amerigroup is pricey. why do you do it? >> it's going to be a headline to pick up on. what's most interesting for us is growth potential for amerigroup and wellpoint, it is significant. today you have over $450 billion spent by states today and yet only 20% of that around medicaid is actually being outsourced to private players such as ourselves and such as amerigroup. with the expansion, that number goes up by $130 billion. we're a $60 billion company and yet we know we have as much as 580 billion of new patients. >> this must have something to

do with the fact that the supreme court had the decision on health care. just a couple of weeks ago. to what extent did that have a role in terms of your decision to do this now? >> the supreme court decision really didn't affect our timing as much. what we were interested is the pace of the dual population was coming forward and we had many states to operate in today already such as california that were doing demonstration programs around the duals and looking at wellpoint and took the two largest dual opportunity states, california and new york and added in texas and florida you're looking at over 100 billion of dual revenue in the next several years and individually we had great assets and collectively we have assets that meet the market needs that nobody else can replicate right now. >> thanks for speaking to us first. >> thanks for having me. >> now a market flash. >> thanks, mandy. watching shares of facebook up today more than 3% at 32.68 on the news that facebook is planning to launch a josh posting site and an impact on

linkedin taking it down 5%. china is spying on you. like never before apparently. see how they're doing it and what exactly they want. and we showed you the running of the bulls from spain. the wall street bulls however not quite following the lead today. we also have great video of another kind of bull. a bull shark. this 10-year-old caught it off the texas coast of the gulf of mexico. hoorah for the kid and sent it straight back out to sea where it belonged. the story behind this amazing picture. yeah. two sharks. we're back in two.

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slightly higher valuation than the peers because of the type of the mix of the business. i like a lot better than jp morgans. >> a bank is a bank. near all-time highs, quoting a slowdown in key metrics over the next three to six months. visa and mastercard both up majorly over three years. do you like this? they're saying lighten up. >> i got to agree. i mean, listen, the valuations. these are great stocks but if you made money on the stocks look at the valuations and say it's time to take something off the table. they're darlings. not forever. >> ameritrade. goldman recommending shares of schwab as a buy. they don't like ameritrade. >> i'll agree with them but they

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metals market is closing for the day so let's get down to sharon epperson at the nymex. >> gold closing up $10 right now. we still saw gold prices here hit the $1,590 level and rose with other risk assets as the dollar weakened and the euro gained ground. we have seen tremendous strength in the other commodities like oil prices. we have that norwegian oil production situation and the strike there and perhaps shut down looming and that hot weather that's impacted the agriculture commodities and also been the currency action that's impacted the commodities trade

and including gold and as the euro gained ground and hit the highs of the session we have seen gold prices do the same but the fact remains that gold is stuck in the trading range and has been for two months or so between the 15 -- about the 1530 level and the 1640 level and we need to see a break above that traders say to see upward momentum. a lot of long-term invest to recalls believe in gold. we have seen this sideways action in the futures. back to you, mandy. >> gold going nowhere fast. thank you so much from sharon. let's get more on the trading action. brian shactman is here on the floor of the nyse with me. where is the action? >> there isn't. i also want to point out that sharon picks up a good point about the euro. might be down more without the reversal in the euro and weakness in the dollar. look at the sector perspective

here. materials, energy at the bottom. health care, the only one in the green and all know why and the back of bertha had to say, a wellpoint deal, a lot of people jumping in on the medicaid names, smaller caps. what might be next? they think there's 40% plus premium in the names an get in now. if you're right and maybe a winner here. we haven't talked about euro. people not talking enough about facebook today i don't think. the reports are there they'll start a jobs board and look at the negative impact of investors think to have on linkedin. they think it's good for facebook and off the highs and link ee eed linkedin off the lows and reports of -- how knowledgeable you are, these are hard core fans. >> not even on facebook. i'm an oldie. >> most people want their own stuff and their own people taking a look at financials

there. it's a real backlash for the company maybe if it happens and i think the financials, you t k talked about it. >> okay. thanks so much for that. let's head to the nasdaq. seema? >> tech stocks following the broader market moving lower. nasdaq down as you guys are mentioning. i have to mention facebook, as well. that's outperforming here. reaching a settlement with yahoo! to expand the partnership with the firm and reports that facebook may be launching a jobs posting board which will be a direct threat to linkedin and that's why shares are under pressure. dollar tree also trading in negative territory, as well. morgan stanley downgrading it to underweight and the stock has been on a tear up around 50% over the past year. lastly, mandy, let's talk bio tech for a second.

strong sales of the ms drug and in response, jeffries raising the price target on the stock to 60 bucks a share. >> back to you. >> let's head north, no, not uptown manhattan but chicago. rick santelli is live with the bond report. hey, ricky. >> hi, mandy. if you look at treasuries, see we're hovering down a bit in terms of yield. nothing new. seems like employment reports and then hangovers that translate in to spongy equities and lower interest rates. if you open the chart to one year you can see we're half a dozen basis points away from testing that historic june 1st. that was the last report, low close at 145. >> yeah. i'm going to follow up quickly on soaring corn prices before we let you go, rick. you have been following corn prices. what are they saying on the floor about this? >> oh, you know, the floor is energized trying to keep up with

the changes dynamics. look at an intraday chart of new crop corn december futures. you can see it's around 725 and the flat top is 733. that's sideways because that's limit up, that was up 40 cents at 733. if you open up the chart for a month and heard it on cnbc, we're up above 20% in the month. and a lot of this, of course, affect in so many ways. food prices, for example, much of corn goes in to feed. feeding animals which means pork, chicken, beef, these are all going to be moving up, indeed and there's energy implications with the ethanol mandate and then the farmer's balance sheets. you know? indiana's the fifth largest corn growing state. purdue university estimates 33% of the indiana crop is beyond repair. back to you. >> hits everybody, doesn't it? thank you so much. let's get out to jackie. >> thanks so much, mandy. watching shares of lmnx.

agreeing to acquire diagnostics company that's a cash deal worth $50 million. you'd think the stock would go up on this. the problem might be the acquisition to add $6 million in operating expenses. watching the stock hammered more than 17%. tyler? >> thank you very much. the man that nailed the s&p call last year out with a bearish forecast and here's what adam parker said earlier on "the fast money halftime report." >> we'll take the view and take a view of what we think the right multiple is, multiply them together for a lower outlook. the base case is 10% lower and then we factor the fact we think it's a higher chance of being bad than good, the target's 1167 for year end. >> 1167 year end. economist tweeted the 2013 perform storm sich wags, i wrote on months ago is now understood folding. he predicted stalling growth in the u.s., a slowdown in emerging

markets, especially china, and conflict in iran is all going to come together at the same time. so, are they correct? our power play today is jonathan golib back with us for the monthly visit. he's from ubs. you recently cut your s&p year end forecast, 1475, to 1375. >> right. so we're obviously a lot less optimistic in calling for roughly a flat market through the end of the year but do i think the market will fall apart? i don't think so. if you look at corporate profits i think they're going to be fine. the economy is weak but not falling apart here in the u.s. >> not your colleague but friend at morgan stanley, you are not as bearish as he is. >> no. i'm not. if you look at, we start with our views of our economist harris mooefing 2%, 2.5% economic growth in the u.s. and far from a recession, do i ha

believe we'll see the issues weigh in? absolutely. but i don't think it's time to jump off a cliff. >> let's talk about earnings because there's a lot of anxiety out there today, this week, as we head in to earnings season. do you think they'll be good, bad, ugly, fair? and what are you looking for in terms of the guidance which probably is going to be more important? >> i think that's the key point. earnings season is going to be okay. i think that you'll have small beats. we're expecting something like a 2% 2.5% beat and smaller than the recovery. however, i think the guidance is going to just be god awful. i think companies are just going to talk about the weakness abroad and i think that that's going to weigh on the stocks even if they meet or beat expectations. >> this gives corporate ceos cover, the nature of the economy today to sort of flush it out and say how bad things are going to be, right? >> why wouldn't you raise these potential risks going forward

and bring those expectations down and set yourself up for a beating? >> u.s. equitywise, fourth better than the third quarter? >> probably, yes. expecting the economy to lift up towards the end of the year, still remain weak for a little while. >> the tax cuts that the president talked about an hour or so ago, he wants to extend them as he said before for the so-called middle class, allow them to lapse for the 250,000 and up households and businesses. how does that looming fiscal cliff affect you as you look in to the end of this year and towards 2013? >> i just want to comment on the president's, you know, what he said today, which is, this is the beginning of the posturing of democrats and republicans for a fight later in the year so this shouldn't be taken at face value. this is the beginning of each side throwing barbs at each other. it will get uglier and not go smoothly. >> come down to 1375 from 1475.

what will be the sector that is will outperform? >> okay. so our favorite sector right now is the energy sector and you may ask if you think the economy is weakish, why go there? there's two things to keep energy prices higher than other commodit commodities. you are seeing sabering rattling from and around iran and saudi arabia likely to take supply out of the system and not just normal economics pushing oil prices up and a cyclical sector to do well. we like consumer staples and took down discretionary and we like. >> and they're not spending the way they have. >> the spending is coming down. >> great the see you again. >> nice to see you. >> stay out of the heat, man. ed, you have heard, you know, the calls here. how are you playing the headwinds in the market right now? >> okay. i agree. we have a lot of headwinds here but look at the way the market's reacting to bad news.

it is not going down as much as you might expect that it would. this tells me that the market's looking for something else, looking beyond europe and it's looking beyond the earnings and now maybe, i don't know, an intervention from the fed, very possible before the end of the year but the bears might be correct but the market is saying something else. >> all right. ed, thank you very much. china, it's spying on you. why are they so concerned with what you're doing online? find out when we return. ♪ i'm making my money do more. ♪ i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start.

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and and coming up on "street signs" the election year fight. the president going with the same not for the rich plan that failed two years ago. we'll ask white house economic add vidser gene sperling why the president thinks he can win this time around. are u.s. companies catching a serious case of euro-sis? what to expect on this earnings season and how to play it. ceo of netflix sparking a discussion of the rules of fair disclosure. herb is all over this one. we'll debate and send it back to somebody named mandy drury. >> only when my smoer angry with me do i answer to that. the top state mystery is back. scott cohn analyzed all 50 of them for the sixth annual top states for business study.

breaking the results down all day tomorrow on cnbc. right now, scott is live somewhere, not sure where. scott? >> that's right. you're not sure where. i'm not sure where. no. i'm in america's top state for business and will reveal tomorrow on the closing bell counting down all five top states for business. we'll get you your first big hint, your first diabolical hint coming up today. you know, we started top states in 2007 as the nation was tumbling in to recession and the competition for jobs across the country among the states was growing intense. here we are, five years later as we prepare our sixth annual rankings and the competition is intense even as the economy starts to recover. the principle is the same. we rank all 50 states in 50 metrics in 10 categories and they are cost of doing business, work force, quality of life,

inf infi instructure and transportation, economy, business friendliness, access to capital and cost of living. we weight those point totals based on how often companies cite them in the marketing material and ranking and grading the states on their own report card and i can tell you because i've seen all the rankings, there's been some very interesting movement in the state this is year and finding out as i said the top states tomorrow and then after the closing bell revealing state number one, you can go on to top states.cnbc.com and see where your state stacks up. we are doing a lot with twitter. we want to hear from you. tyler? >> yep. absolutely. you know, we're looking forward to it. can't wait to find out who's in the top ten and as you said just to reiterate, up there for you. top states so that you can join the conversation. there's lots more top states coverage including the twitter battle.

we should point out virginia won that hollowed award a couple of times. i'm rooting for you, virginia. we have been warning you about malware designed to take over your computer. fbi has pulled the plug on the fix and if you've been hit you'd likely know it by now. for more on the threat now and a new wave of espionage coming from china, david faber is here live. hi, david. >> hi, tyler. seems like every day a new story about this. when it's state-sponsored efforts, the china have no peer. that would try to compromise networks and relentlessly. you name it, they want it. it's what's known in intelligence jargon as an advanced persistent threat. they gain access to a network and sometimes sit there for years gathering information and gaining access to other computers in the networks with

more valuable data. the techniques for breaching fi firewalls not all that high-tech. social media provides almost all the tools a would be attacker needs in getting to know your hobbies, who your connections are so that they can send you a convincing e-mail with a malicious e-mail and convincing enough to click on it and successful in breaching some of the largest and seemingly most secure of companies. even those that provide the very security such as rsa. >> this time, the cyber bomb was a seemingly normal microsoft excel document. but within that was an adobe fire that spread malicious software on the user's computer, allowing them to control that computer and further advance on to rsa's network. all with the direct aim of stealing valuable data. >> it was a race against time to understand where we were compromised before we could turn them out. as soon as we found other places where we were compromised we

turned them out. but not before they extracted the secure i.d. information. >> it's never been disclosed. the attack one of the few known to the public at all because so many companies are reluctant to admit they were breached even if they know. oftentimes, tyler, they don't even know. and that's one of the key problems here. the fbi comes knocking on the door saying, by the way, the chinese are behind the firewall and they have been for a long time and ceos and boards to meet and say what do we do know? >> yeah. i can't find my tag anymore. >> you can't find it? >> i have to break in. david, we'll be watching tonight. "cyber espionage" at 9:00 p.m. eastern time. next up, the ceo blame game. they're already warning europe to bring down numbers and also ahead shark. if you're swimming on the east coast or the west, be aware.

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finance.yahoo.com poll,

should president obama extend the bush era tax cuts? america, 49% said, yes, for everyone. 41% said, yes, for people making less than $250,000 a year. and 10% said, no, for everyone. let the taxes go up. time for today's power rundown. we have jon carny and cindy perman. should the president extend the bush era tax cuts for families making less than 250 grand? >> of course they should for families making less than 250 grand. they should extend them for everyone but at least do it for families making less than 250,000. >> why for everyone, john? >> the big problem is that americans are overtaxed but they have too little to spend. we need to increase aggregate demand. a way to do that is not to raise taxes on people. >> cindy? >> absolutely. once you knew the term fiscal cliff came around, they had to do this.

both of them had to start talking about this, right? obama really needed to capitalize on that occupy wall street, that rally against the 1% and finally pulling out some clear campaign issues so i think it's good. >> political turf is staked out, has been for really years now. let's move on to earnings season. kicks off after the bell today. a lot of companies expected to, of course, blame europe for any earnings misses. europe gives lots of people lots of cover so what kind of an excuses are we going to hear from ceos beyond europe, cindy? >> you're going to hear all kinds of things coming out of the woodwork. i think the problem is we are in an adapt or die economy right now. okay? so the excuses go so far and companies setting themselves apart and showing that they can adapt and they can still, you know, keep the revenue consistent or go up. i was talking to a doctor last week who ran a business in the botox and cellulite business and dried up in the recession and he

said to me which was very funny, no one knows how hard the economy was on the plastic surgeons. people didn't talk about that but the thing is -- >> poor plastic surgeons. >> where's that violin music? but no. but the thing is he adapted. he flipped the model. found out where demand was and now he can't take fridays off in the summer. >> i think cindy makes a great point there. you want company that is know how to adapt to changing circumstances. those are going to be the winners in this market. >> the botox indicator. i won't forget that soon. killer sharks stalking the audience in southern california and cape cod. what do you think when you see this picture? >> terror on the seas. i think it's just when you thought it was safe to get back in the economy falls apart again. this is a great little metaphor right now. >> the seals, he paddled in to

the food court. so -- but the thing that's good about this, worried about it but the good thing is it's good for business. >> yeah. >> and in this kind of an economy, people using every angle. >> don't worry. i'm coming to help you with the harpoon spear. >> i think right now this -- that little metaphor, we're the people in the kayak. the shark might be china, might be europe. we are not sure but we better watch out. >> thank you, folks. appreciate it. all right. mandy? >> okay. well ahead, top white house economic adviser gene sperling on president obama's new push to let the bush tax cuts expire for the wealthy. sound familiar in it was the very same battle that the president lost two years ago. what's changed since then? that is coming up. [ man ] ever year, sophia and i

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the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us.

welcome welcome back to "power lunch." look at fti con solting. william blair doesn't think that the business is fallen off but that projected growth did not develop. not good for the stock. a five and a half-year low this morning. tyler? >> thank you very much.