call when an analyst challenges him, i want to hear what he says. >> yep. so does everybody else. don't forget to catch more "fast money" tonight at 5:00 p.m. "power" begins right. lace-'em up! >> thank you very much. it was the sound that shook wall street. the man who many say created the modern business banking model saying break up the big banks. we will hear his words and have reaction of top lobby group. it's the countdown to the fiscal cliff. today senator cardin a key member of the finance committee on how he would solve it. and caterpillar crawling back. they're raising forecasts. the stock was up and took a down turn. we'll find out why.

right now the shares down at 81.05. to see now at the nyse. hi, sue. >> hi, ty. a major shocker as you mentioned this morning as the man responsible for modern day banking, make everybody do a double take. former citigroup chairman and ceo sandy weill was the guest host. it was only on cnbc. >> what we should probably do is go and split up investment banking from banking. have banks be deposit takers. have banks make commercial loans and real estate loans. and have banks do something that's not going to risk the taxpayer dollars. that's not going to be too big to fail. if they want to hedge what they're doing in their investments, let them do it in a way where it's marked to market. >> that's a radical idea, though. breaking up the investment banks

and banks. are you suggesting going back and breaking the companies up? >> that's exactly what i'm suggesting. >> when i say i'm speechless i'm speechless. i apologize. >> all right. let's get to the washington side of this story. republicans and democrats quick to react on the hill and john harwood has that reaction live in d.c. hi, john. >> reporter: hi, ty. when sandy weill makes a statement it gets people talking on wall street and washington. that's what happened at a hearing and after a hearing of the house financial services today. take a listen. >> it is absolutely huge that sandy weill called for the break-up of the big banks. what does this mean to the financial crisis? >> the two worst votes i made in the 18 years i've been in congress were the iraq war which was very unnecessary and the repeal of glass steel. >> would you support breaking up the big banks?

>> i think it's something worth considering, absolutely. >> if the big banks and the situation is not working then look at the alternative. i think that's where he's coming from. >> now, i talked to one of the leading lobbyists in washington for wall street today who said there is no active move with any real juice behind it to break up the banks but that if you have a few more misfortunes like what happened to jp morgan this summer you could have momentum probably after the election, sue. >> john harwood, thank you very much. we'll talk about the situation in a few minutes. first, though, we had a key bond auction off the boards. rick santelli is tracking the action at the cme. how did we do today, rick? >> oh boy. seems like a hiatus of demand today. 35 billion, 5-year notes. the yield 0.584. another record at an auction. however, it is well higher than the wi trading 0.578.

tailed off a bit. the average bit to offer is 2.95 for the last 10 auctions. this is 2.71. indirects on the light side of 42.6. i don't have directs yet but there's plenty to grade it on. we'll give it to a d-plus. d-plus. didn't like it. maybe could have gone c-minus be i don't like the internals and with more talk of twist and maybe mortgage buybacks i suspect it would have had much better demand. sue, back to you. >> i'm surprised. thank you very much. back now to the top story. sandy weill and comments on cnbc calling for a separation of the commercial and investment banking side of things. john carney and neil wineberg joins me now. you were as surprised as everybody else. >> i was flabbergasted. he built frankenstein and now

take the monster apart. i'm sorry. to me it almost seems disingenuous. as i've said, good con man knows how to make a buck coming in, a buck comes out. >> did you agree, neil? one read of it could have been that when he created the modern monster if you want, things were quite different. it waunt global system. we hadn't seen the loss of the lehman brothers and maybe that's what he's referring to. >> it's more important to arguably break up the banks because they're much more concentrated than they were. it's also not hugely surprising. you are seeing the diver intelligenvur intelligence where the retired guys say it's time to break up the banks. regulators are saying the same thing. the only ones not saying it, of course, existing ceos. >> there's talk of bringing back glass steeg el. you made a point of that might not have solved some of the

issues we faced in '08. >> sure. wouldn't have solved arguably aig or solved citibank and mortgage problems they had and long-term capital management and no one heard of until it was a systemic risk, sue. >> it was a much, much smaller failure. >> i talk to guys on the street today who said this is like somebody took the ball away from sandy weill and then saying i don't want to play that game anymore. he doesn't want to play basketball because he doesn't get to shoot. this is what they're doing. there's a -- we built the monsters. break up morgan stanley. i think they're coming in too late. >> does it get fraction? >> i'm shocked that we haven't had more of this. are the guys on capitol hill sitting around waiting for ceos. >> there is a bill on capitol hill that's not gotten a huge amount of support yet and seeing the issues every day with

everything from libor and the other issues coming up daily virtually. >> we'll be talking about this far while. guys, thank you very much. ty, over to you. >> thank you very much. wall street lobby firm of the securities giving cnbc its first reaction now to sandy weill's bombshell earlier today. tim ryan is president and ceo in london for a board meeting over there. welcome back. we're glad to have you with us. what is your first and initial reaction of what mr. weill unloaded this morning on cnbc? >> i was as surprised as all of your people on cnbc. and from just -- i have not seen his comments. i have read his comments. i still do not fully understand the reason for it. he talked about leadership for the united states. that didn't necessarily hang together for me. but, you know, he is a respected

former leader in the industry so his views deserve, you know, reasonable scrutiny. >> is he right? >> no. i mean, we think he's toetdly wrong and, you know, we're basically back discussing the exact same issue that we discussed really as a result of bears demise and lehman and the advent of dodd-frank. this was on the table. the obama administration looked at it. congress looked at it. they rejected it. i doubt seriously it will be on the agenda of congress in the near term. >> lehman and bear were not really -- weren't really of the model that citigroup was, they weren't commercial. they didn't have commercial or major commercial banking arms so why is he wrong when he says as he did this morning that the crux of the matter is keeping investment banking and risk taking away from the federally

insured deposit base backed by the taxpayers? that makes some sense. or does it? >> let's -- well, let's put it all in perspective. this has been rejected as recently as the last three years and the reason it was rejected i think is that they still hold true. number one, clients actually like this structure. they like the universal banking model. that's why almost all of these banks that are what's called g-sibs. the largest universal banks where they do commercial retail and investment banking together, the clients actually like it whether you're an industrial client or commercial or retail because of efficiency and the globality of the model. second is we have the problems wientith entities like lehman s everyone converted to bank

holding companies, the large ere o ones. that's a key element. someone -- i don't know whether anyone talked to mr. weill about how if you split these large institutions how the investment bank would fund itself. is he going to give them access to the window which is something that people have talked about in the past but always rejected. >> something those investment banks got if i'm recalling correctly when they took on the federally chartered banking charter back in the height of the financial crisis. my last question, we're delighted you could join us today, and interrupt your duties over there. is how well do you know sandy weill and why do you think he came to this conclusion now? >> i really do not know him well at all and i have no idea. i'm sure that your folks asked him why he came to this change in views. >> so i dress -- >> i have no idea why. >> your group would stand

against any moves to break up the big banks and lobby against any legislation coming down the pike. i don't know that there's really in the hopper now. am i correct in that? >> that's correct. we would vigorously oppose it because it doesn't make sense and recently rejected the last three years. >> thank you for being with us. always good to see you. >> thank you. so how do you play the financials today? i guess that's the question number one and tyler vernon is here with the answers. he is with biltmore capital. how do i do it? >> i think you have to stay away from the bigger banks. it is impossible to know the risks on the balance sheets and what is on the balance sheets. even ceos don't understand as we saw over the last couple of months from jpmorgan. you stay away from the big banks. play the regional banks. that's what sandy was talking about. his description of what to happen to the big banks is essentially the regional banks so i think you play diversified pool, companies like bb&t.

>> tyler vernon, thank you very much. let's go to seema mody. >> watching shares of radiody shack slammed. they're reporting a second quarter loss. increased demand for handsets squeezed the margins and also suspended its dividend. the company also has plans to refinance and pay down its debt. not a pretty story. the stock down better than 32%. sue, back over to you. >> thank you very much. straight ahead, another big story on the hill today. treasury secretary tim geithner facing the fire over libor. what did he know and when did he know it? >> big moves in oil and gasoline today. but before the break, five big wednesday movers. it is an up day in the dow. ge is up half a percent. and we are basically down just a fraction in microsoft and

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i'm at many nymex. oil prices recovering a little bit from the lows of the session but we saw a sharp selloff in oil and gasoline after a bearish friday from the energy department about supplies. big increases in gasoline supplies. crude production at the levels

we haven't seen since 1999 and demand of gasoline falling to the lowest for this time of year since 2000. still looking at $3.49 national average and prices were climbing for the month but analysts say we may see prices go down toward the $3 mark, sue. >> sharon, thank you very much. >> sure. treasury secretary tim geithner answering for his part in an libor scandal at capitol. eamon javers has that for us. >> reporter: the hearing wrapped but he did face very tough questions of what he knew and when he knew it in terms of the scandal and some of the toughest questioning that he faced came over this issue of why he never told congress during all of the debate over dodd-frank. >> never once during that entire discussion did you say this is a huge problem or a medium-sized problem and we think it should be included in there.

you never did it in the last four years and now comes out this is the crime of the century. >> having looked in to these concerns and believe they were a problem, we took the initiative to brief the broader regulatory community so they had that information even though it was in the press and we pushed the british to resolve it. we did that very early. we did it very, very quickly. >> reporter: interestingly, sue, he was asked about his thoughts about reinstating glass-steigel and thes after duck of the question saying should we keep looking what the more we can do to protect the system? absolutely. he went on to defend dotd-frank saying that it needs to be given a little bit more time to work and of course, sue, i asked secretary geithner directly what he thought of sandy weill's comments and he didn't say anything at all. >> nicely done, eamon.

you tried to pin him down on that. >> reporter: we asked the question, sue. >> that's right. seema mody once again with the market flash. >> sue, take a look at shares of international game technology, falling sharply with a 46% drop in third quarter earnings as the slot machine maker suffered a sharp increase in expenses and down better than 16%. back to you. up next, fixing the fiscal cliff. before we all plunge over it. senator ben cardin, a maryland democrat, gives us his solutions. before the break, check out shares of apple down 4%. they lost 5% in the aftermarket yesterday. after one of the worst days of the year. we're back in a few minutes with more on "power lunch." etter emps while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac!

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introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. i think what we should probably do is go and split up investment banking from banks. have banks be deposit takers. have banks make commercial loans and real estate loans. have banks do something that's not going to risk the taxpayer dollars. that's not going to be too big to fail. >> that was former citi chief sandy weill earlier this morning explaining why he wants to completely separate investment and commercial banks. yes, the founder of the supermarket says it was all a

big mistake, apparently. some thoughts of senator ben cardin. welcome, sir. a pleasure to have you with us. >> sue, a pleasure to be with you. thank you very much. >> is it time to break up the big banks? >> first, let's point out. we passed the dodd-frank. it's a different structure than a couple of years ago so i think we need to get the recommendations of what we see on the ground today. i do agree with his objectives. we have to make sure too big to fail does not exist an we don't want to see public at risk because of risk taking by so-called banks that are not traditional business. i think he raises a valid point and need to understand where we are today considering the massive changes that we've made in the financial regulatory environment. >> there are also people that i've been talking to down here and elsewhere saying perhaps we should in addition to dodd-frank bring back a glass-steigel-type

legislation. are you favor of that or do you think that horse has left the barn? >> i don't know if we can turn the clock back. banking and investment services are international and we have be to be part of an international community. we have to protect taxpayers and make sure too big to fail does not exist in american banking. >> ty? >> one more quick question in. is dodd-frank sufficient to do in terms of what you think philosophy to agree with. does dodd-frank do it? >> i think it did change the entire environment in the financial community. i can tell you in the conversations we have had with the regulators, we know that we have made substantial progress. do we need to do more? maybe. maybe. >> let's talk about the fiscal cliff which is looming. the tax increases and the automatic sequestration or spending cuts to go in to place. first of the year. what would you do?

your first step to help us come back from the abyss? >> i would get democrats and republicans working together. this is a very serious problem for america. this is self imposed. this is self inflicted. we can get out of this if we work together. so i know that the bowles-simpson was a bipartisan effort. we need to listen to each other and putting theest enters of the nation first. >> senator cardin, one couldn't help but to notice that during the hearings of mr. dimon of jpmorgan there's general relief or applause, if you will, there's clawbacks at jpmorgan and other banks as a result of practices that led to large losses. if we go over the fiscal cliff, if a crisis is precipitated by congressional and administration inaction here, would you favor clawbacks of senatorial and congressmen's salaries? >> let me tell you.

i'll make sure we don't confront that issue. this is not about what impact it has on one member of congress but the impact on the entire economy and the impact it will have on the global economy. this is not some game of some sort. and it shouldn't be a political contest. this is about america. we are the strongest nation in the world and we have it within our ability to solve this problem. all we need is democrats and republicans listening to each other and let the political system work. >> it's a collection year. the two sides are very far apart. do you think that it's possible to get those two sides together? there's a very limited amount of time left. the markets are already starting to react to the thought of the fiscal cliff. we see volatility in the markets. do you really think there's the political will to get those two sides together? >> i could tell you that this senator's going to continue to fight every day an i'm talking with republican senators and members of the house.

we can't give up. this is our country. can we get it all done before the election? probably not. let's get as much as we can. let's give predictability to the economy. let's let the financial community, let's let consumers know where we intend to deal with the cliff and how we're going to deal with it. we should take care of those problems now when we can. >> ben carden from the land of pleasant living in maryland, thank you for being with us. >> thank you. the close is on, sharon epperson is in the place on the floor at the nymex and we'll connect with her right after this quick break. stocks for your portfolio? with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason

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we see a big move in the gold market today. sharon epperson is tracking the action for us at the nymex. hi, sharon. >> momentum is back in the gold market. we have a rally today of over 30 bucks. looks like gold will close above $1,600 for the first time in two weeks. this is a significant move traders say in the gold market and means perhaps we'll see more momentum as traders flood in.

we're also awaiting the options expiration tomorrow and there's a great deal of call activity at the 1,600 strike price and above and another factor that may be adding momentum to the overall metals complex is the hope for further stimulus coming from the fed. a lot of traders here talking about qe3 and often perception that's fueling price action and watching that, as well. also yesterday, the cme announced that the cftc given them a 60-day increase. that's to take effect in october. that is something traders say may be spurring some of the buying on the side loons. all of that contributing to a nice rise in the metals overall and gold prices here above 1,600. back to you. >> sharon, thank you very much. a good rise in the markets right now. we have the major indices at or near the session highs of the trading session and the nasdaq just turned positive, as well. brian shactman is here on the nyse floor.

momentum building in the markets today. >> an odd day. a lack of headlines very stock specific day. everyone talks about apple and drags down the nasdaq but four of the best five performers are the tech names and different things going on and take a look at the dow. you have cisco and at&t a drag yesterday and boeing pulling it upwards. >> cat. >> well, cat's a next one to talk about after boeing because boeing had good numbers and aeromexico numbers maybe 11 billion. cat from positive to negative territory and then recovering a little bit and fueling the dow right now. the discussion is the raising the guidance in caterpillar. about the optimism or the last quarter so good it lifts the numbers for the whole year. >> interesting yesterday which was so decidedly negative. >> right. >> a lot of people thought that maybe caterpillar to have a difficult time with the latest

quart, as well, given the global footprint. >> yeah. like jim cramer said, people that site the concerns maybe in the numbers operators managing better. i will tell you that the margins on caterpillar very impressive and point out. intraday moves. look at u.s. airways. really good numbers and absolutely cratered. why is that? there's an interview with the ceo of amr which is in bankruptcy and lccs running up 130% of anticipation of a merger saying, wait a minute. this is my idea anyway and if it happens this is my decision. hold on a minute. >> it's interesting because he made comments before, not that quite specific, but pushing back against u.s. airways for some time now. i'm surprised the stock reacts today. >> he hasn't talked in a while. people thought he was being coy for a payout for what have you. >> that could be. >> things went -- the chart is

pretty amazing. >> sure is. thanks. >> you're welcome. >> see you later. let's go to the nasdaq. bertha coqu berthacoombs is there for us. apple is one full percentage point off of the lows of the day. at 4%. netflix also the big drag on tech, as well, with the very sappointing outlook with subscriber base. falling below 60 for the first time since december of 2010. cisco bouncing back strongly today. intel is also moving things higher here as is symantec. saying the performance had been lackluster. up 13% today. and nasdaq having a strong day. better than expected earnings. they feel confident that that accommodation plan on facebook is going to work out and they're not setting aside any reserves for future litigation.

facebook, of course, reports tomorrow. back to you. >> thank you, bertha, very much. as you know, wall street legend and inventer of the financial supermarket saying on "squawk box" that the banks should be broken up. kayla tausche joins us with more. >> they struck down regulation, a plaque at citigroup xh commemorated him as the man that destroyed glass-steagal. to say the statements were surprising is an understatement saying that the banks should be broken up and lawmakers are listening. >> i mean, this is significant statement on his part. i think what people are concerned about is the current policies that we have in place are almost created a consolidation in banking, making it very -- more difficult for smaller banks to stay in

business. >> we will be looking at the issue as to see whether the effect of what we have done through the current dodd-frank bill made the system where you're doubling down on the size of the large banks. >> this idea of breaking them up has a lot of potential. i'm interested in it. and certainly we'll explore it with other members of congress. >> urged the travelers with citigroup for $70 billion in 1998. created a mega bank he called at the time, quote, unhell of a candy store. he's not only one changing the stance. phil purcell said to cnbc that shareholders should push for slits. it's clear the values would be higher if you split them. the primary reason to buy big financial stocks today is the hope that they'll be broken up.

taking a turn that weill told media told him quote, sue, incredibly sad. >> kayla, thank you very much. we appreciate it. to economic data and after an uptick in may, new home sales for june out today posting the biggest drop in over a year. diana o lick is live in washington. a surprise. >> and a big disappoint, sue. the second one in june seeing sales of existing homes fell, as well. signed contracts dropped 8.4% month to month. the expectation had been for a slight gain and while may's number's revised up doesn't account for the big drop. the stocks down across the board on the day although on a tear year to date. that's because home builder sentiment is way up. housing starts are way up and seeing pops in new orders. the sales number not a good sign heading in to the second half of the year. this also has mortgage rates hit new lows throughout the month. didn't help with pricing power.

new home prices down 3.2% from a year ago and we should note while re-fis are up, mortgage applications are down and the four-week running average on purchase apps is flat. not a good sign going in to the fall. now, the supply of new homes for sale also rose in june and with the decline in the sales pace the month's supply rose to 4.9 months and still pretty low and want it shrinking rather than rising. tyler? >> diana, thank you very much. let's analyze this with tyler vernon. he is from biltmore capital. apple, let's pick among one. raymond james downgrading the stock saying, quote, we believe apple's days of on scene growth are likely behind it. and of course, the stock is off its lows and down as much as 5% today. what do you say? >> i agree with that.

i think short term you can probably get a better entry point. there's negativity around the stock and speculation. at the end of the day, steve jobs left with interesting ideas. they're going to be rolling new product down the road and a lot of growth to come. >> do you think it's an outperform? if you were rating it, would you put that endorsement behind it? >> long term, i would. short term, no. >> fair call. all right. in a note published this morning, upgrading domino's pizza and adding the stock to the conviction buy list noting the pizza franchise quote is in the fountain of youth stage of its life cycle with emerging market expansion driving a renewed leg of growth. over one month, the stock up nearly 15%. you like it as much as goldman does? >> have you had it before? >> i have had the thin crust pizza and doggone good. >> i had it in college and the only reason is they delivered after 1:00 a.m. and i had some ranch dressing to spring olen it. this is a competitive area, the

pizza market. the consumer downgrade. i'd much rather buy things like mcdonald's or burger king. i think we are seeing headwinds and stay away from the stock. i would hold it, not buy it. >> goldman is wrong on domino's. try some of the thin crust pizza. >> i don't know. >> radioshack with a $21 million loss in the second quarter earnings. downgrading it to hold from buy saying we have little confidence in the ability to earn a profit stream. they had a buy on this stock which is down look at that 87% over the past 2 years. i guess they thought it was a buy and maybe a turnaround in place. now they're backing away from that. >> i think not only a hold but a sell. again, the first time i went in about 25 years ago with my grandmother and went in a year ago and hadn't changed at all. you know? you go in. about three different phones and, you know, you buy phones there? what do you do? not really sure.

>> great connectors. >> thigh're a dollar apiece. how much can you make on them? people go online. best buy to buy the more premium purchases. i would stay away from it. i'd get out while i can. >> they have the things called transiter radios. have you heard of them? >> i've heard of them. >> there you go. >> in a museum somewhere. >> thank you very much. sue, down to you. >> ty, i think you and i probably have a few of those in our garage, right? >> yes. let's look at the earnings scorecard so far. companies pumping out the results this week. so far, 65% have come in above estimates. 12% have met estimates. 23%, though, have come in below their forecasts. let's go back to seema mody with another market flash for us. >> yeah. negative earnings reports today. take a look at ch robinson down to a 3-year low as the core trucking operations continue to struggle. transportation margins falling

to the lowest level in a decade. that's continuing to be the big concern on the street talking to analysts. after reporting earnings, deutsch bank downgrading it. >> thank you very much. the yahoo.finance.com poll. do you agree that the big banks should be broken up? first, though, with the dow jones industrial average up triple digits, up 105 points. let's check on how those big banks are doing, they're all in the green. [ male announcer ] when he was only 4 years old,

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now, let's see what's coming up on "street signs" with tyler for the answer. coming up, forget the headlines for a second. we have got, they've got four stock picks of a five-star fund manager for the long term. two tech stocks on the rope. a net flop for netflix. there's a good one. and a major publisher abandons the blackberry. we look at the struggles of the middle class since the financial crisis and what needs to be done to change that. that's all on "street signs" right after "power lunch" at the top of the hour. facebook releasing the first quarterly results as a public company coming tomorrow. the social network stock trading down 25% from the debut back on june -- excuse me, may 18th. julia door stin is looking ahead live in l.a.. yule yeah? >> reporter: facebook is under pressure to make more money off the nearly 1 billion users and that means making the ads more

effective and diversifying from the reliance on web ads. watching the stock, facebook's management has been focused on responding to pressure to grow mobile revenue in particular. facebook only started showing ads to mobile users in march. and in june, made a number of changes to jump start the business. one of those, allowing marketers to buy just mobile ads. and high mobile use doesn't just mean ads but app revenue. this quarter facebook launched an app cent we are paid apps and subscription apps and we'll have to see how fast they boost the payments process, getting rid of the credits currency and enabling payments of mobile devices and wall street looking for earnings of 12 cents per share and investors sure to focus on monthly and daily user numbers and of course as mobile user numbers and ramping up the international markets.

now, it's important to keep in mind that most of the big changes facebook made to diversify the revenue made in june. so that's not really been a long enough time for that -- to have a significant impact on q2 earnings but what we should listen for in this earnings report is an indication of how the changes will impact revenue and profits moving forward. tyler? >> julia, the social game maker zynga tied to facebook one way or another has the results today. what are the odds of a surprise there? >> reporter: well, i'll surprise -- there are a couple of things. investors, as well. one is how and whether zynga is successful of getting more users to pay to play. right now, just a very small percentage of the users actually pay when they use the games. other big question and impact facebook, as well, is whether it's successfully diversifying away from the reliance on facebook. the vast majority of the revenue comes from the facebook platform. they have been investing a lot

in mobile games and building platform and we'll have to see if that's impacting where the revenues are coming from. >> all right. thank you very much. sue, down to you. straight ahead, when we come back on power lunch, a rare earnings miss of tech titan apple pushing the shares off 3.5% right now. the stock having one of the worst days this year. is this uss a hiccup or is there cause for longer term concern? we'll talk about that when we come backs. here's a look at the most active traded stocks on the nasdaq right now. cisco at the top of the list. eliminate gas from my budget.d i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up. it's always a gratifying experience. it makes me feel good about my car. i absolutely love my chevy volt.

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financial times reporting that the english team manchester united has halted the plans for the time being to list as a public company. it was planned to list on the nyse and we'll get more on that and bring it to you as soon as we can. now to seema mody for a market flash. >> look at shares of lumber lick we day or thes. the eps at 43 cents a share, 15 cents higher than street estimates. sales also coming in higher by about 20%. fueled by increased traffic.

thanks to the spring remodeling season. the stock up better than 26% today and better than 130% year to date. big moves there. sue, over to you. >> indeed. thank you very much. first brian shactman, your comments if you will on man-u. >>dy a story on dot-com. a source saying london, they were locked down. they wouldn't mention the words manchester united and something was up. why would investors invested right now? 650 million in debt and it's dual class shares. they have no control. why get in on it? >> that's the question. that's the question. we'll continue to follow the story. thanks for that. that little added extra here on "power lunch." time for the rundown and brian with us to talk about various things and neil weinberg. let's start with sandy weill. we have talked about the comments of breaking up the big

banks. even though he created the system we are now all living with. neil, what's the negatively going to be? this is a big reversal for him. >> trying to rewrite it and i don't think it's going to work. you know, it really did look like he was sort of blaming and pointing to things. he said 99% of the people on wall street are good but there's a structural problem and that's not my fault even though i'm the one that got rid of glass-steagel. >> people that judge him negatively already judged him. i almost think it takes courage. not like he is on the death bed and saying oh my gosh, what i did is wrong. times are different. looking back, this is not the way to go and the legacy is still a guy that took bis risks, made a lot of money for a lot of people. took a little bit of courage. >> caterpillar. brian, saying that the economy is crawling back, raising forecasts. does cat have it, right?

what do you think, neil? >> i think it has it right. sort of like the auto industry defied the economy and bounced back. seeing the demand. housing is important to a company like caterpillar and there's overseas demand so i think they got it probably right. >> hopefully they have it right, right, brian? >> you don't know. every quarter can be different. the results of the past in the past. they manage their business well in the last quert. >> also important that the ceo saying he thinks the rest of the year looks pretty good. >> the upward guidance i think surprised everybody, really. especially following some rather dismal reports this week. >> speaking of which, apple computer having its worst day so far this year. tumbling over 5% today. come off of the worst levels. brian, what is your take on this? >> you know, ever since steve jobs passed away i don't think there's a way for the company to stay what it is forever and there's no doubt that this is not the moment.

an incredible company and incredible earnings power. forget about iphone a f. the apple tv happens, they need to prove to have a transformative product without steve jobs' hands on it. >> rather than just another version -- >> an incremental gain. an amazing story. it will come to an end at some point? >> neil? >> i have to agree with that. i bought one for myself and one for my daughter. sony used to be apple and ultimately something somehow somewhere they'll trip up. yes, you run out of ideas. >> it's interesting to see now that the market is gaining strength again whether or not apple can pare the losses. appreciate it. ty, back to you. >> thanks. coming up, how you could be paying for the drought of 2012 and heading back to the farm to get some answers. right after this short break. [ male announcer ] when this hotel added aflac

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leading the way and nasdaq's up about 3.5 on the day and the russell 2000 up 3, as well. take a look at manchester united pauses the plans to list the ipo in the u.s. that's a financial times report. they were supposed to list here. the nyse, they have no comment on that report right now. but brian shactman rejoins me. this is a story you've been working on and people wondered why a british soccer team chooses to list here in the united states. >> right. i'll try to get that story confirmed. basically, you can't have dual class share structure in london. the family owning it wants to retain control and raise money. they were going to go to singapore and market conditions were a little volatile. didn't think they could drum up the interest. they want to raise the money and keep control and that's why they're listing here. and we'll just see. maybe they started the conversation and the

institutional investor wasn't as interested as they hoped. big fans want it for the novelty share. >> for the larger money it's not as attractive so -- >> i talked to people out there very cynical about it, especially since, you know, the family's trying to raise money to pay down debt. >> a story you'll follow and try to confirm that when we give you a break. back the you guys. both tylers. >> let's talk about what you're watching today and the rest of the week in terms of earnings, market tone and tempo. >> sure. after the bell today, we try to get a sense of what's going on with the consumer because we are seeing a slowdown. u.p.s. with a 1% handle on gdp and consumer haves driving 70% of gdp so after the bell today we want the look at companies like starbucks. people have traded up and buying the four and $5 coffees. is that going to continue? i would bet that it's not and th