alert. >> buy it. >> dr. jay. >> a lot of buying there. >> don't forget to catch us at 5:00 tonight. watch me, scott wapner on cnbc. halftime is over. the second half of your trading day begins now. >> we are kicking off a very busy "power lunch" now. bernanke time. the fed chief takes to the hill. when he talks, wall street listens and reacts. it was not always such a friendly reaction to the fed chief today. new plan for private banking. bank on it. what's the impact going to be and that's ahead. also ahead, look at this, will you? this sandwich, a small-time terror plot? something worse? delta investigating after needles were found on several sandwiches from delta, on a

flight from amsterdam to the u.s. it has been a roller coaster ride on the floor. bob mipisani joins me. they're talking about the libor hijack. >> mr. bernanke was very down beat and why we lost 100 points. down beat and things not getting better immediately and laid the groundwork for qe-3. the first half was dominated by libor. what's the obsession? some people thought this was clearly a way of criticizing regulators in the u.s., maybe a little bit of politics coming in here. for some, might be deflecting the inaction on the fiscal cliff. senator shuman implied that. very unusual testimony. a lot of traders want to hear about qe-3 and what mr. bernanke thought the economy was doing and where it was going. >> and he gave no hints what he

was going to do. >> when you say gdp is maybe 2% and under. that's pretty much acknowledging we're moving towards doing something down the road. >> the question is what does he have to pull as another trigger. >> it's getting small. >> that's right. they are. >> let's take a closer look what the chairman said and how economists are breaking it down. our senior economic reporter, steve liesman is here. >> bob pisani has it right. the forecast is the message. he won't exclusively tell you there will be qe but look at the forecast. ben bernanke emphasizing the risks to the economy in the question and answer session with senate banking today. said second quarter growth likely comes in below 2%, and prepared to act especially if the jobs growth disappoints. >> we're looking at the economy to judge whether or not the loss of momentum we have seen

recently is enduring and whether or not the economy is likely to make progress towards lower unemployment and more satisfactory labor market conditions. if that does not in cur we have to consider additional steps and looked at a range of possible tools and the balance sheet and communication. >> stock investors were initially disappointed in the lack of explicit promise from the chairman for quantitative easing and asset promise by the fed. and they looked at ways to still ease, lowering interest rates paid to banks on excess reserves that could motivate them to lend and more qe could involve treasuries and purchasing. and he defended the fed's action that geiger treasury secretary had british memos in between

2008 and defended the memo to invest. still, they were not satisfied the fed didn't take tougher action in 2008 when it became aware of the scandals. >> interesting exchange. i believe it was pat toomey of pennsylvania, who had good and pointed questions. another senator, sort of put the ball back in the fed's court, senator schumer, said, don't count on us to fix this fiscal cliff. >> this is the alice alice & wonderland we live in. congress authorizes the fed, you have to save us from ourselves. we cannot solve the fiscal problems, essentially our jobs as senators and congressman to get the nation's budgets in order. you better do something because we're not going to be able to do something. i can't remember a more pa et c thetic comment from a congressman. >> i need them to save me from

ice cream. and believe it or not, rick got fired up. what was it? >> listen for yourself. let's run the clip of ben bernanke. >> the information the fed received was about the banks possibly submitting low rates in order to avoid appearing weak during the period of the crisis. the transcripts of the phone calls that were released have no reference to the manipulation of rates for profits by derivative traders, as alleged by the recent decision. >> well, now, consider. he used the word "possible." let's look at e-mails released friday and in the journal today and let's talk to the exact quote we're referencing in mr. bernanke's talk. i will read this. barclay's unnamed official. so we are not posting an honest libor.

the fed official here, okay, bark lis, and yet -- and yet we are doing it, because if we don't do it, it drawings in, um, unwarranted attention on ourselves. rosolo. okay. i got you then. the fed officials doesn't possibly understand it's being manipulated. it's being manipulated lower. there is knowledge there. if it's manipulated low, the fed's program to manipulate rates low, we go along with it. if i remember, the last time i was speeding to visit a relative at the hospital, i still got a ticket. it didn't matter. this is a smoking gun, just about the definition of manipulated that needs to be decided. >> who was the fed official, rick, and what was his role? >> the fed official was a female, fabiola, ravisolo, on a fact finding mission for the

fed. >> thanks. down to sue now. >> well, we will talk about the reaction of mr. bernanke's testimony on capitol hill. joining us to do that is senator mark warner, a virginia democrat on the senate banking committee. nice to have you here. >> thanks for having me. >> your reaction to mr. bernanke's testimony, specifically down grading economic growth, what those on the floor are most worried about. what struck you as the most important part of the testimony? >> the fact we're looking at economic growth 2% going forwards and the world economy begs out for additional fed action but congressional action. i've been part of this bipartisan gang of six that laid out a deficit reduction plan but on what's being asked from people in the world and uk, it's relatively small in terms of revenue and entitlement changes, we need to act upon that.

doesn't look like we may get those actions before the presidential elections. i think you're seeing chairman bernanke say he will look at qe-3 as other central banks in europe and china have been acting to prop us through until we in congress actually do our job. frankly, i'm embarrassed we haven't done it before this time. >> the way i'm reading you're saying, correct me if i am wrong, you are no closer on capitol hill in any way, shape or form to a resolution of what is being called the fiscal cliff? >> i think we all know the framework. you have to generate additional revenues, make our entitlement program sustainable over the long hall. we have the luxury as the world's largest economy to phase some of this in. we have some folks who only want to look at one side of the balance sheet and not the other. the conundrum we've got, things like the so-called sequester or end of the bush tax cuts are the forcing mechanisms. if you get rid of the pressure

of those forcing mechanisms, you may not have this grand bargain. at the end of the day, the grand bargain will do more to jump-start our economy more than either presidential candidate are laying out. we ought to get about doing it. i honestly would like to see it done before the presidential election, but we have to get about it the day after. we have to have a plan at least as a bipartisan starting point. that's what we're working on. >> let me turn you to the discussion. a lot of the questioning was about the libor scandal unfolding in a much bigger way. i believe you were able to hear the quotes earlier from a fed official and barclays employee. it seems to indicate that the u.s. fed official understood barclays was posting a lower than aappreciappropriate libor . what should happen next? should there be a criminal investigation as going on in the uk? >> we have to get to the bottom of this. not only does this have a direct

effect upon people's mortgage rates and student loan rates and other things. it's one more shoe that falls that robs the public of confidence in the banking system. we need to follow wherever this leads, to get the information out. if appropriate, i'm not ready to make that judgment yet until i see more, if appropriate, take criminal or other actions. in the interim, we need to look about where we go from now with a new system that actually brings more transparency. this can't be done in isolation, just in america. the very nature of libor is this is an international standard and have to work with international partners to get it right. >> you talk about transparency. earlier today, jav vers talked about the transparency of the financial group. take a listen. >> we have to look how to improve the system. we've done a lot. we all need to do better. the system failed the investos s

here. >> as you read it and given what you know about the situation, is the cftc at fault or someone else at fault? >> i know washington's all about the blame game on this. i'd like to get to the bottom of all of these circumstances. i think we need actually a new system. i think we also need to reflect on the fact since the crisis, we have taken steps. many in the financial community, that was my brand, don't love dodd-frank, but we have additional capital before the crisis and means our banks are stronger to withstand some challenges and means libor needs to be looked at in terms of a new system and means places where we still have problems like the paradigm have to be sorted through. at the end of the day like the per egrine. this is not just about who shot

john before, but making sure the public has confidence in the banking system. >> senator, thank you very much for joining us. we appreciate it. good to see you again. todd, back to you. >> thank you. federal prosecutors uncovering what they say is another blatant ripoff of the medicare system. >> this keeps ongoing, talking about an alleged health care hustle being announced right now. 48 people are charged in a nationwide investigation centered in new york. the value is up to $1700 a bottle for treatment of hiv, asthma and schizophrenia. the drugs legitimately dispensed to medicaid recipients who get them for free but sell them on the streets for cash. the crooks remove the label and resell the drugs to pharmacies as if they were new. authorities uncovered tens of thousands of bottles of pills.

medicare and medicaid fraud costs taxpayers as much as $160 billion a year. in this case, prosecutors say some of the drugs were mishandled and spoiled, harming the patients who ultimately got them. a fraud on a number of levels and people actually getting hurt, not just monetarily, physically potentially. >> thanks. to you, sue. british banks behaving badly. first barclays and now more on to terror and drugs. joining us live from washington with more. eam eamon. >> hi. astonish i astonishing allegations being aired this morning. allegations that the bank was involved in more than $7 billion of alleged money transfers from mexico to the united states that might have benefitted mexican drug cartels. also, thousands of iranian money transfers as well as years of failure to detect money

transfers and to comply with rules and regulations around the world. it was so bad david bagley, the head of hsbc's compliance globally said he will step down from that role although he will stay at hsbc. meanwhile, senator tom coburn said it isn't just hsbc. >> while our focus has been on the problems we found at hsbc bank, we also have to emphasize similar problems exist at other banks. for example, city bank, bank of america, wachovia, western union and others have come under scrutiny for laundering drug cartel profits. >> i want you to take a look at just one e-mail revealed by this sna committee so far exchanged between an hsbc compliance officer to an hsbc competitive aft - - -- executive after the bank

wrestled who to do work with al rajhi. looks like you're fine to continue with al rathjhi. you better be making lots of money. they have a response, we will acknowledge in the past we have sometimes failed to meet the standards regulators and customers expect. we will apologize, acknowledge these mistakes, answer to these actions and give our absolute commitment to fixing what went wrong. this hearing is still ongoing. they've taken a little bit of recess but we will give you all the details as they continue to come out this afternoon. >> incredibly disturbing. we look forward to more. thank you. now for a market flash. >> emc has an 80% stake in vm, looks like they're swapping executives, becoming vice-chairman of vmc and the coo of emc becoming the cmo of vm.

it has negative pressure on the stock. chatter there night be a cloud off vm but it is pushing both to the down side. >> up next as we continue on "power lunch," the yahoo! search is over. will marissa mayer be the ceo that shines through? who has been putting sewing needles in sandwiches aboard delta flights from holland to the u.s. and why? certainly isn't a joke. it's dangerous and details coming up next. before the break, five big movers on this tuesday. they include dupont up a full percent and jpmorgan down a full percent and kraft foods do down .36, almost 1% on the day. t upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros.

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you're looking at a video image of a turkey sandwich with a needle in them. so far, four have been found on flights from amsterdam to the u.s. one person was hurt but refused medical attention. delta says the turkey sandwiches were prepared by the airlines catering company in amsterdam and taking this very seriously and stepped up security in the food prep area there. >> yikes! let's look at shares of yahoo! trading down and a third of a percent. that in their first day of trading after marissa mayer was

named to be ceo. live in sunnyvale, california, her first day of work. pretty quick start for her? >> reporter: yes indeed. marissa mayer's office likely to be in this building where many have sat recently. she said she's starting today, a quick turnaround. scott previously started the next monday. it probably reflects the fact she's leaving google controlled by a founder she was close to, so her departure, she likes to get right into things quick and she's very fast into the next thing. we're expecting yahoo! earnings after the bell, the street looking for $1.1 billion in receive, under 2% growth year-over-year and who is on the call, will ross levinson the interim ceo until now be on the call. what order will they talk about it and how much will marissa say?

i'll be listening as i know we all will. >> kara swisher is with all things digital, one of the leading reporters on the digital beat today. so much talk for why this makes sense for yahoo!. why is it a good move for miss mayer. >> she's wanted to be a ceo and predominant executive at google. even though she was an early and important one, she didn't get one of the seven or eight big jobs. for yahoo! they get a great name from a person who has a lot of tech skills in the valley. for someone who wants a make a splash, this is a good move for her. >> can she succeed? she is not a turnover ceo. what if she fails jrchlt she will be another ceo that

failed, no downside for her. if she overpromises and underdelivers, they have been doing a long time, it will be in a long line of similar innovations. it's a difficult task. you have had a lot of people praising her and a very smart person. is she a steve jobs character? steve jobs is the last person who revived a company from near death. yahoo! is not near death but in a very bad state. does she have the skills to cre it an innovation india hoo. it will -- innovation in yahoo!. >> will she be able to work with those like dan lowe? >> he wanted her in there. he wants his stock up. it's a question whether dan loeb is a good player. who knows? she has to take control of this board and company and room to run and do what she wants.

she also has to have a vision to do something. i assume she has a plan and sure she presented it to the yahoo! board in order to get the job. we'll see what she has to say. i think she will say very little today and probably a good idea. >> cnbc and yahoo! have a business alliance to share content and create the program. shares of dts sharply to the downside on huge volume today. the demand for blu-ray players is down. that hurt second quarter results. they get 30% of the revenue from the blu-ray market and dolby is down with that. 17% and 4% respectively. > up next, we are analyzeding tanalyzeding -- analysislize -- analyzing the analysts. and mattel is better than

10%. abercrombie and fitch up to a third. walt disney up better than 4% and gap is up better than 1.72%. i don't spend money on gasoline.

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is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. time to analyze this with danny hughes, ceo of divine c capital markets. down grading home depot and lowe's together. yesterday's retail sales increased our fear as sales of

building material and garden supply fell dodeclined 1.6% sequentially. do you agree or disagree? >> we think the housing market is still intact for the consumer, still doing things in their existing home, lowe's and home depot. if you look at a chart over the past two years, you see the same third quarter dip. it might be an opportunity to take advantage here. >> let's build something together. city down grading target frto b. and let's look at one year, up 20%, agree or disagree? >> i don't really call this a down grade. 1.5% down grade. i would agree we think target probably will see some downturn in its market. we don't think people will go back to school shopping like

they did with vigor last year. we think that's a good call. >> a faux down grade. speaking of down grades, jpmorgan down grading deere, noting quote the drought in the midwest is now impacting more than 80% of the region and yield expectations continue to decline. over three months, the stock is down nearly 7%. down grading deere. >> this is a big down grade. you saw cmi's news last week. the company came out and said they will see much softer growth. we think we will see that in deere as well. this is one of those companies you want to put on your shopping list. management is fantastic. a great overall global play. we think we could see the stock -- >> you agree with the down grade now but keep an eye on it. put it on your shopping list. >> last year, stock was down to $60 and ran up to 90 the beginning of this year. sue. we will head to the nasdaq.

courtney reagan is following the big movers. hi. >> it looks like the shine has worn off a little bit. we are no longer higher on the session but slightly lower. this stock has been all over the map nor this session. shares down 3%. samsung has acquired csr's mobile chip company. it's an incremental negative but not a complete game changer. very strong earnings, thanks to barbie and american girl sales. they have a new business but won't reveal exactly what that is until 2013. just ahead of the decision about the obesity drug, we do expect it sometime today. thank you. metals prices are closing and gold was the focus with the collar during bernanke's testimony. sharon is tracking it.

>> gold prices unchanged the last several sessions when it comes to the close and once again, we're seeing gold prices finishing up the day at 1590. there was no hint about qe-3. as many traders and analysts started listening to what he was saying during the q & a period and interpreting what could happen down the road as the chief economist pointed out, we see a 50-50 chance of some type of easing down the road if the economic data continues to deteriorate. the fact remains, gold prices have been stuck in this $100 range the past two months and there have been no real catalysts to get gold out of this range. as one trader told me, seems like the fed is a red herring, even if the fed or central banks do some monetary easing, it will take economic conditions improving to get a catalyst in the market.

money still coming in. looking at precious metals seeing inflows in the second quarter, upwards of $700 million. back to you. >> thanks a million. let's get the trading action. bob pisani joins me. we have come all the way back, 88 points. >> we were up before mr. bernanke and then dropped 100 points. people realize while mr. bernanke was very down beat and didn't say qe-3 was coming, laid the groundwork. mr. leisman laid it out accurately. a little bit of action in material stocks. once again, i look where movers are, consumer names, disney and avon and health care stocks, pfizers and merck again doing well and coca-cola to the upside. what we need right now is rain in the midwest. mosaic, a big fertilizer company

supplies a lot of farmers out there and need a lot more fertilizer. their report was very good and they're one of the market leaders. >> disney is up because last week, my family spent an enormous amount of money at disney world. >> how was business? >> it looked a little lighter than it has in the past. i think that might be the heat. it was extremely hot down there. >> it was hot in l.a., too. >> i think i will have to pay more for italian wine. we need a christmas club for italian wine. >> to brian with a market flash. >> mmr reported a wider than expected loss and missed on revenues as well. why is it up 7 1/2%? it also said their shallow water drilling is going well and they also have deep water and if they have both, maybe it looks good going forward. >> how bad is that midwest

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welcome back to the second half of "power lunch." rick santelli on the floor. the cme group. it's been an interesting day. equity traders obviously didn't get their new decoder ring as evident by this chart. if you look at this chart, the minute ben bernanke's text was released, the market went down, it went way down and then came way back because steve liesman is right. he is going to put it in a certain framework n. that framework is gauging the economy. there was a lot of opportunity in the turmoil. look how it affected interest rates. not. it didn't. we're in the 2 basis point range the entire time ben bernanke was in front of those washington pan panel. clearly after equities have started doing better, rates popped a bit. washington initially thinking if there wasn't any explicit quantitative easing, it had a strong rally and is positive as

we speak. tyler, back to you. >> we are in the worst drought in years in parts of this country. look at the state of indiana, normally green and growing this time of year. it is yellow and brown. that's what the loohoosier stat looks like from north to south. look at that interstate interchange, burned out. up 26% in the three months since the summer season began. $7.77 a bushel. the weather channel, carl parker is here. i wish you'd change your name to peter parker and become a superhero like spider-man and bring us some rain. i guess that's not in the forecast? >> the outlook is not good. it could last quite a while. we started in may with about a third of the country in drought and it jumped up dramatically what we call a flash drought because it happened so quickly going up to 40% by june 12th.

now, we're at 60% of the country in moderate drought or greater, 1,000 counties having a natural disaster declared in 36 states. about a third of the midwest in severe drought. 31% of corn crops in good or excellent condition, down from 41% the week before and pollenation is occurring now, make or break time and this could be a $50 billion event. we have this big ridge dominating and that won't change much at all. below average precipitation across the midwest. often "timetimes these things s and don't change. the dry ground makes it hotter and these events can be self-reinforcing. >> thank you very much. goldman sachs is going to be trying its hand in private banking. this is a bit of departure for

goldman. >> it is. they're making a big bet on the wealthy. you look at what they're trying to do. they're saying they will grow loans from wealthy borrowers from the current $12 billion to $100 billion. two real goals is to keep more cash from going to other banks like jp and city bank of america and the second is to win new wealthy client with loans. if you can get a client in the door with a mansion mortgage or yacht, you can have a shot at their wealth advisory business. wealth advisors say goldman will become more competitive by adding these loans. there are possible risks with this plan. lending is largely a commodity business. it's especially competitive for the very rich clients. look at mark zuckerberg for 1%. when wealthy pick a wealth manager. loans aren't usually the first and most important factor, a

separate decision. they get the loan from whoever has the best rate terms. they pick their wealth manager with whoever has the smartest advisors and best performance and best fit. lending to the rich is not a risk-free business. lending to the wealthy has become more volatile and today's billionaires could become tomorrow's bankruptcy. goldman has little experience in this space. i don't see wealthy families flocking to goldman just because they're offering loans. as one wealthy family told me this morning, i have all the cheap money i need but what i don't have is good advice. >> that 1% is representative of the kinds of deals. you can't make much money. >> goldman used to be the status brand for wealth management and this reminds you how they're competing with b of a and others

for these prices. especially for the super rich. coming up next, especially for super rich, what are the hedge funds telling us about the future of the markets. find out how you can keep up with the pros when we come back. ♪ [ 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. for an exceptional price. at merrill lynch, we understand the importance of your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before.

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[ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream so we're asking, do you think a new round of stimulus for the u.s. would have meaningful benefits? 22% of you said yes. 78% said no. very interesting. the yahoo! finance poll in conjunction with cnbc. now, to mandy drury. we'll see what's coming up on streets signs at 2:00 p.m. eastern time. >> lots of things. yahoo!'s marissa mayer joining the growing number of tech ceos. she's smart and young and a mother to be. is she proof women can indeed have it all today. plus, small caps outperforming their blue chip brethren this year. we will get idea from small caps

fund managers and we have the has brogue ugh or mattel. lots of things coming up. >> thanks very much, mandy. as we look there, the dow punching its way back to the 100 point gain level. phil lebeau is here in town with details how the automakers might be expanding production. >> one of the subcomponents is looking at autoplant capacity utilization. look at what we're saying in the auto sector. are they growing? yeah. 80% capacity utilization in the month of june. right now, we're running at the highest utilization rate since 2004. 26% of u.s. autoplants will be on three shifts by the end of this year. you look at annual auto sales, we're running at the highest rate since the beginning of 2001 to 2004 period.

that's the kind of capacity utilization we're seeing. with all that said, auto estimates in terms of sales are being brought down because of economic certainty right now. people are saying, will we sell up to 15 million this year? that won't happen. wall street is lowering a number of q estimates mainly because of europe and also uncertainty in europe. at a strong the utilization rate has never been stronger, we're seeing questions whether sales can keep up. >> phil lebeau. shares of toeyota leading year-to-date. gm down 4%, ford, a story phil has chronicled well, down 14%, sue. >> concerns about global growth putting equity markets on edge this year. one area producing returns with significantly less val tiolatils the hedge fund industry. welcome back.

good to see you again. >> thanks. good to see you, too. >> volatility affects everyone in this market. interesting the hedge funds have managed to harness or use that volatility to their advantage. do you anticipate volatility is going to continue? >> you look at the forward volatility curve. it will continue and increase as we go to the end of the year with all events having to do with the fiscal cliff and in europe. you look at hedge fund returns, they're positive for the year with a third of the volatility of emsci. that's a difficult road. you think how investors feel about the marketplace, better for the less volatility, certainly not been the equity markets this year. >> what about strategies? hedge funds can employ different strategies. which strategies are working best, given the volatility background? >> the ones that work least well is long-short equities because

of the disparity between world index and american index. that's done extremely well and it's making it hard to make money. you look at market neutral trades of traders doing commodities or trading like ttas do, they've been very profitable, including difficult months like may. >> the market today just up under 100 points. you have so many stories between europe and qe-3 and now the libor scandal. it's interesting hedge funds are still able given the fundamental background out there, to attract good talent. why is that? they're making some money but not significant advances. is it just that banking is that much less profitable? >> not so much the profitability of banking an issue. they're able to attract talent because the banks are not able to be hedge funds or hedge fund-like anymore. there's an enormous pool of talent. there's an inflow of capital

coming to the hedge funds. the third is there are huge opportunities in the market forthcoming that will be created by the dislocations you report on everyday. that's why the hedge funds are an attractive place to work. from an investment standpoint, attractive place to have a sizable amount of your money. we're recommending for the average ultra high net investor to have 60% in the hedge fund portfolio, a large exposure in the market. >> that is a large exposure and surprises me given volatility. what strategy do you think will continue to work well. an to day-to-day basis, i'm saying either risk on day or risk off day. that's a hard environment. >> you wanted to have your relative traders and market neutral traders, things uncorrelated so when you add them to the portfolio, you will de-risk it but you always want equity and you want strategies to take away some portfolio risk. >> good to see you. come back and join us again

soon. a quick programming note, all day tomorrow, we will be talking about things david and i just talked about. headlines of institutional investor delivering alpha conference. speakers include timothy geithner and hank paulson, former treasury secretary and many many more and tomorrow, cnbc ross sorkin will talk to legendary private equity king, henry kr henry kravis. >> i will be there the whole day. there's your fiscal cliff. the dow comes down the fiscal cliff and climbs back up and at 12,815. next, call alec bald wind. he wants to build a wind turbine in the hamptons. he can't and he has himself to blame.

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welcome back. looking at online travel names. growth is up in june. even though there was tickdown in growth, still a strong

transition for traditional bookings. up 2.5% or better. >> let's talk first about ross. first-up, yahoo! passed on hiring the interim ceo, ross levinson in favor of an e ex- -- where do you look for a yahoo! ceo, you google her! what happens next to ross. >> even though they would hire her over ross who's been there some of time, yahoo! think this is a can start over and not sell on the content they have right now. ross should start over. >> move on, ross. >> there's no way ross can stay after being passed over by marissa. everybody thought he would get the job. once they pull in an outsider, vote of no confidence, he has to go. and a content sharing agreement we pointed out earlier

this year. the legendary king, kravis, and we will have the conference tomorrow. if you had mr. kravis sitting across from you, what would you ask him? >> i want to know whether mitt romney being president will actually be the beginning of the end for private equity firms? >> because? >> for years what private equity firms have done is find ways to overcome political and economic barriers. when we have one of these guys actually running the economy and political sphere, should it be a whole economy being run like a private economy. all should be firing on all pistons and lower the opportunity for privatety equity firms. the first private equity president might be the last of the private equity firm. >> we will leave it there. have a quick thought? >> the other co-ceos, his first

cousin, of a similar vintage, no idea who is next. >> now to alec baldwin, interesting guy. he wants to build a $100,000 wind turbine at his beach house. a little farther out from east hampton. local authorities are blowing hot air on the plan. baldwin is known for hot air, too. his green roots are partly to blame for this. should he be allowed to put this big wind turbine up? >> i have to go with the argument if everybody did it, would that make it okay? they're saying it's a very rural neighborhood. if he has this giant wind turbine sticking up in his yard, does it matter? you're away from civilization it wouldn't affect the landscape. if everyone did it, it would. >> we have so many limousine greens saying everybody else should have to change their lifestyle but don't affect me, don't put windmills in the nantucket hamptons?

good on alex to fight it. >> there's the bottom line, sue, on windmills in the hamptons. >> much, much more. she shattered the glass ceiling a decade ago, former ceo, ann mulcahy talks about yahoo!'s new ceo, coming up. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

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welcome back to "power lunch." breaking news on yahoo!. neither marissa mayer, nor ross levinson or new ceo or interim ceo will be on the yahoo! earnings call this afternoon. those duties will fall to chief financial officer timor ris and will raise questions whether ross levinsohn, who has led sales before he was interim ceo will be sticking around at yahoo!. mayer is also in the office already. back to you, sue. >> very interesting, john. thanks so much. we bumped up almost towards 100 plus points on the day. backed off a little bit. up 81 on the dow and almost nine on the s&p and nasdaq up 12 points. >> let's talk to annie on one of the things she has her eye on. one is yahoo!'s earnings after the bell.