>> target is not done going up. >> all right. that does it for us. watch options action and money in motion starting at 5:00 p.m. eastern tonight. follow me on twitter as you always can. "halftime" is over. "power lunch" and the second half of the trading day starts right now. welcome to "power lunch." calming comments of euro land to push the european markets up across the board an you can see it's green, green, green all the way across the boards with the biggest percentage gain in spain. that is helping u.s. stocks today. we are solidly in the green, as well. the dow is up above the 13,000 mark. up almost 120 points. s&p is up 1.25%. that's equal to the 1376 mark and the nasdaq up almost 1.5% at 2935.88. and then still following facebook. as you know, the results were

not great. investors are not happy. and the stock is hitting new lows. today, we'll hear from someone that has some advice for mark zuckerberg. he's been in the shoes before. bob pisani at the nyse and brian shactman is here with me. tyler is on vacation today. we'll rejoin them in a minute. we'll get to bob but first two key euro quotes. quote number one, a joint communique of german chancellor and french president saying we're deeply committed to the integrity of the eurozone. they are determined to do everything to protect the eurozone. number two, it's not obvious to me why spain needs a full bailout. end quote. and now the imf is weighing in just a short time ago. spain's government, they say, could lose market access if they fail to get the budget deficit under control. another day of ups and downs.

rights and lefts. all over europe. u.s. markets doing pretty well, though, bob. where do we stand on all of this? >> determined to do everything. that sounds like mario draghi yesterday. markets love it hearing that kind of talk. i agree with jim o'neill. spain does have enough money but 7%, 7.5%, they're going to run out of money very, very quickly. they need to get those numbers down. bottom line is. this i know that gdp numbers not inspiring but the markets are up nonetheless. i don't think that's the reason the market's up. most traders tell me markets are up because they believe more stimulus is coming from the ecb and the fomc. remember, fmoc. now dow over 13,000 first time since may. breaking out. but it's the big caps. here's what i like. see the transports and russells, folks? underperforming for weeks now. now they're moving to the upside. nice to see them playing catch up. you mentioned facebook. no apologies.

it was a horrible number and not happy with it but you see how it's come off the bat tom? since europe closed there's a spate of volume here and that stock moving up right near the highs for the day. let's get more on the gdp number. steve liesman is at headquarters. a lot of revisions, i particularly noted that 2010 revision. >> we'll look at that, bob. but first, let's talk about the weak number. best thing anybody says is it wasn't weaker than we expected. let's take a look at gdp over the past three years and let's put a yellow line on there. that's the potential of the economy. all you have to know is growth at or above that line should reduce unemployment. growth below that line should cause it to rise or stay the same and that's what's been happening the past several quarters. throughout most of the recovery, only a few quarters at or above that and that's why we have the sluggish unemployment. if we don't get that bar up to the yellow line, we won't bring it down much more.

let's break apart this 1.5% number this morning. contribution to gdp, consumer spending raised gdp by 1%. business investment and then the trend there is how did it compare to the prior quarter? consumer spending with a lower contribution. housing, a lower contribution. inventories higher and then government higher. see trade and government again detracting from growth. those are two areas where you had negative signs that took away from overall growth. just one more chart to show you those revisions that bob was talking about. what they do is every year they go back and rebenchmark or relook at, revise what happened. '09 not as bad as we thought. still pretty bad. 2010, not as good as we thought. minor revision in 2011 and then cruising. 2011, 2012. continuing along, bob, those lackluster weak economic growth numbers we have had over the

past year. >> for the first half of 2012, will we make 2% in what's the number for action by the fed? >> what i'm hearing about the second half is railroad contingent upon europe and the fiscal cliff. you can see how excited the market gets when they make any noise about getting europe's act together. that's a big deterrent to growth in the country but the fiscal cliff still looms. guys say i'm looking for 2.5% but over the fiscal cliff and the uncertainty unresolved, then they're not confident in that forecast. as for the fed, i think the key here is whether or not this 1.5% is something that makes them too concerned about economic growth. and i think it's too much in the middle, bob. i think a lot of guys are saying this is the fed will go next week. my own bet is more of a september play. but i could be half wrong on this. >> you know, steve, also the fed meeting and the decision will be timed probably around the time we know what the ecb is doing

and central bank quote/unquote activity next week. if there's action by the ecb or others might that affect the fed's decision or will it? >> i believe the timing, sue, of course they'll know about it over communications. >> sure. >> the timing would be afterwards. i think the ecb meets on thursday if i'm not mistaken. >> yes. >> and then the fed meets tuesday and wednesday. look. ben bernanke's been screaming for help for a number of years, from congress and the ecb and europe and hasn't gotten any. the prospect of greater assistance from the european central bank should diminish the need for the federal reserve to do more here at home. i think we had weak economic growth before europe came along but it's keeping us below 2%. >> thank you. >> my pleasure. >> to qe or not to qe. i won't call it a tragedy. let's bring in tyler vernon of biltmore capital. say we get it next week. how do you play it? >> i think it's surprise to the

market an not factored in at this point. you have to go long risk assets. gold is making sense. miners make sense. so i think you have to go long risk in that environment. >> this is not pricing in qe3? we have another leg up? >> we do. >> what if we don't get it? >> i think somewhat factored in and get somewhat of a disappoint. vxx, a play on volatility makes sense. go low beta stocks so duke energy, procter & gamble, you have to go conservative. >> so your best guess on which one we do get? >> i don't think any. i think he talks a little bit about, you know, how things are improving. but we have a lot of things to do and more bullets yet to come. >> tyler with us throughout the show. back to you. >> thanks, brian. to housing now. the u.s. census releasing new information on home ownership in the usa. very political number. diana o lick is live in washington. diana? >> reporter: well, that's right,

sue. certainly is political because here in the u.s., it's considered a sign of a prosperous nation. we call home ownership the american dream. a report shows the rate is hovering at lows not seen in 15 years. it was basically unchanged in q2 but the homeowner vacancy rate, vacant homes like this one is dropping. that doesn't make a lot of less, right? well, there is an explanation. existing home sales which make up the bulk of the market were up in the first half of this year. the realtors don't have the official numbers yet but the raw month lisa that sales up from a year ago. the home ownership rate is down and it's hovering again around those lowest rates since 1997. now, if sales are up, then why's the home ownership rate not moving? investors making up around 20% of sales and more if you factor in big bulk investor sales that don't go through the realtors.

they don't occupy the homes and don't move the rates. another note, this rental vacancy rate moved down to 8.6% in q2, the lowest rate since 2001. renter nation rages on and means that rental rates will continue to rise. we have more of the numbers online. bob? >> thanks very much, diana. merck shows big numbers this morning in the earnings report. that stock is up after the company beat own wall street expectations. seema mody, you are up. >> absolutely. correct. bob, merck beat street sales thanks to a strong sales of a series of recently-approved drugs. blockbuster drugs sing ular raised the profits and said it was on track for regulatory approval of six new major drugs by the end of 2013. the line-up should help offset

the recent costs facing all large drug firms. shares of merck hitting a new 52-week high and money managers reminding me a main reason they trade the stock is the fat dividend. as you pointed out, dividend focused mutual funds invest in the stock because of one main reason. yield. 3.9%. brian? >> over to bob. >> i'll take it. thank you, seema. listen. taking a look at the 30-year. the yield at the highest point of a week. down 2 points. basically hoping that the european central bank launches new bond purchases later this year. sue, over to you. >> well, that's a big move in a short period of time. thank you very much. coming up, live from london, our boss will join us, the ceo of comcast, the man bringing the games to the united states. more "power lunch" after a quick

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time to analyze this. i'm here with tyler vernon. rw beard noting, quote, we are less confident in near-term fundamentals and subdued the outlook. i mean, duh. >> yeah. i actually -- we were on the show on wednesday and we talked about being nervous about the

starbucks call so i agree completely. if you saw the gdp report this morning, consumers spending les and less and factored in to the numbers. there's competition. seeing dunkin' donuts. stay away from the stock completely. >> don't jump in? >> i wouldn't. >> morgan stanley upgrading expedia to equal from underweight. saying investors say underweight thesis invalid and said expedia shown two consecutive quarters of solid top-line growth and measurable progress on its new platform. what do you think? >> such a jump today. i think if you own it, you have to sell it. so i don't agree. long term it's fine. the margins expanding on the negative side. the revenue per air ticket is declining. take profits completely here. >> hard to argue with 20% pop on the day. shares up over 100% and a good move. note published today, ubs

upgrading sprint. given a significant increase in the outlook for ebitda over three years, what do you think of it? >> smart money getting in the stock. a lot of friends, smart friends in the hedge fund business. they're buying in to the stock. this company is expending the 4g network. they have exclusive rights to that and the iphone 5. >> expedia you don't like after a run-up but sprint you still like after an 83% run-up? >> we have room to go. >> tyler, good stuff. back to you, sue. >> thank you. coming up, a man in mark zuckerberg's shoes before. he started the globe.co and then watched it tank. he's with us today and has advice for mr. zuckerberg. [ male announcer ] it's a golden opportunity...

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welcome back to "power lunch." facebook shares under a lot of treasure today after yesterday's quarterly report. the stock is near an all-time low of 22. the last trade is 23.98. it is down $2.80. stefan pudernut is founder of t theglobe.com. he is chairman of slated and an online film marketplace and you have advice. great to see you again. welcome back. >> great to see you. >> you wish mr. zuckerberg well, want him to succeed but this is a tough situation he finds himself in. >> it is. i had written an open letter to mark zuckerberg saying to him please don't go public. it is a huge distraction. but if you do, be prepared to grow a thick skin and do your

best not to listen to the media and shareholders. and that it's really a long-term play an if you get gun shy, you stop taking risks and innovating and i think he now has to do his best to look past this and stick to the plan. he's really laid out a plan. >> let me push back a little bit on the don't listen to shareholders, don't listen to the market. because the market is very cruel. it will punish you regardless of whether you listen to it or not. >> yep. >> so how can you not listen to your shareholders? how do you not pay attention to a market that's taking your stock down to level that is are new lows? >> well, you have to choose whether your goal is to listen to people who are in this for a week, a month, a quarter or whether you're really here to take care of the shareholders for the long vision. they weren't in this for three months. they were in this for the long-term power of facebook to change the world. they're in the infancy of the

process. just like apple. or any of the most successful companies. you take a long-term view like jeff bezos and you hold on and focus and he's investing heavily in to having all the engineers, top engineers of the world. the smartest money in the world knows that software is eating the world and mark zuckerberg has the operating system of the internet. he's just scratching the surface still of what he can accomplish in terms of revenue. just needs to focus on the real customers, the users right now. >> what should he do at this point? a the earnings report was a disappointment to shareholders. >> uh-huh. >> you can go back to the argument of mispriced. the whole offering is mispriced and that's water under the bridge at this point. if you were advising him, what would you tell him to do right now the address the concerns of shareholder who is might be in it for a longer period of time? >> i don't think he has much to address. i think that he's laid out a game plan and which is i'm

putting a product and users ahead of short-term profitability. the stock will do what it wants to do. yeah, valuation aside, which could have been a little too high or low in the short run in a bit of a bubble created, the stock will find correct e quickly ri yum, people that want short-term value probably drop out and those in this for the long term have to trust he has a plan laid out to beat the competitors. i think he has that plan and i believe in it and every company in the world on the internet now leverages social networking, facebook or twitter or linkedin. slated depends on that capability. who else will deliver it? >> right. what about going public at all? there are other companies considering going the public route. you argue in this open letter there are other places that you can find that funding. that there's in essence no reason to go public anymore. >> it's not important to go public. in fact, going public i have written many times to the detriment of the long-term

vision of the company and the market. you have second market with liquid tan the goal for liquidity to be a pressure release valve to let out some of their shareholders that have been involved for many, many years and should be rewarded or the employees so use that mechanism, that second mart has, to relieve that pressure, the company can stay private a lot longer. and i -- you know, because of theglobe.com experience, i experienced that double-edged sword going public raised a ton of capital. we set a stock market record. got a huge amount of publicity. drove traffic. the shareholders turned and we got burned for it. don't do it if you don't have to. >> best of luck with slated. appreciate your being back with us. come back sure. >> sure. a triple-digit advance in the dow jones industrial average. we're back with more. [ male announcer ] eligible for medicare?

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welcome back to olympic park in london. i'll carl quintanilla here on "power lunch" with the man that brought the olympic games to the networks of nbc. the chairman and ceo of comcast, brian roberts. good do have you with us. >> great to be here. >> you are a bit of an olympic junk junkie. what's london mean to you? >> well, i think for the new company, this is really a fabulous coming together of all of our networks, all of the digital technologies for nbc universal. it's, you know, a very proud night and hopefully 17 days of excitement and a lot of american success and world success. >> we've already heard about the record ad sales. digital ads. tripling beijing. some record-setting numbers. how significant is that and to what degree is the result of a

digital strategy that's arguably different than the games we have seen in the past? >> we have made, as you know, for the next decade we are going to be the network of the olympics. and so, one of the strategies was to use as a laboratory and really see where we are in a moment of time and push the envelope, aen so i'm pleased we'll have if you include local advertising, digital advertising and the network advertising, over a billion 200 million all in and so record for nbc. we're off to a great start with our olympics involvement as comcast and i couldn't be more proud and excited and can't for the opening ceremonies. >> that's news there. over published reports. >> broadcast is billion and and then the local and digital and goes up. better than we thought. it is a good start and now we just have to, you know, make it all happen in the next 17 days. >> and enjoy the games in the meantime. i remember back in beijing the saying was the pipes still work,

referring to network. so, and the concern has always been if you stream elsewhere, you cannibalize the network play. is that no longer a concern? what's behind sort of the digital aspect of what you are doing? >> you have to start with put yourself in the consumer shoes. we are all used to now mobile devices and tablets and the world's changed. and we -- live television is the heart of broadcast television and a big event, nothing better, so using social media, using digital, i don't think it will detract. only enhance. increases the buzz. makes the viewer happier. they're not denied access. and of course, with nbc universal and all of our networks, we're going to have more coverage over 5,500 hours. it is wall to wall. and so, as we all have our own passions, we're going to find that as well as the fabulous nbc broadcast that i think will once

again be, you know, the most important of all of those things we are talking about but you can't just have one in today's world. no way. >> it is a big springboard for nbc sports network. new eyeballs at that channel. >> exactly. >> same thing for the fall season of nbc prime time. start with sports network. what does it take for that to pose a real competitive threat to espn. >> we have always said that's not the realistic goal and that is not the definition of success for us. it's to find its voice, find its passion around certain big events so with nhl hockey this year or tour de france and now with the olympics and we'll continue to find other properties that say, you know what? you do something very special at this company that nobody else can do and we see a little of that with golf. with nbc and golf channel working together and so nbc sports now having their own network and the regional sports networks, over time we will make big events, certainly nfl

football is a good example of sunday night football and can we continue to expand and widen the breadth of nbc sports in to its own network? >> i think it's a long-term growth business for us and excited to have made that change. >> you mentioned football. a powerhouse sunday night. "the voice" powerhouse on monday night. it's intended to stretch it in to the later part of the week. would you argue that prime time is on its way? >> i think the team we have, steve burke and bob greenblatt and many, many others have got real beginning of momentum and we are shooting, you're going the see some shows, actually during the olympics and never been tried before and helping as we push towards tuesday night for the momentum with sunday and monday and just at this for long term. we said at comcast a long-term turnaround. we'll be patient. we'll have some investments and with the cable networks, broadcast networks, the theme

parks, it is a very special company and when it all comes together with something like the olympics i sit back and say this is an honor and we hopeo it -- a really great job and the team here is spectacular. >> just one more question on network tv, especially in prime. the emmy nominations for best drama, not a single network nomination. it all came from cable. some have argued they're in a different business, hard to do that on winning emmys on network television. does that even matter to you? >> i am an old cable guy. we still have -- >> not that old. >> the largest cable footprint and a number of wonderful cable networks and so a little bit i'll leave that to the creative community to pick and choose which platform and what's working best with what audiences but we have so many fabulous channels, we also have a technology coming with exfinty and what we're doing for being

able to find the content you want on whatever device you want and the olympics is a big laboratory for that. we want to push the envelope so you as a viewer have live sports, news, will be able to have scripted dramas and reality shows and whatever you want come to us and we'll make sure we have it in there for you. >> finally, as a former and maybe current squash player, should squash be an olympic sport? >> mostly retired but i think we got a lot of great sports and hope some day it might be a sport but i don't know. >> enjoy opening tonight. great to have you. enjoy the rest of the games. congratulations again. >> thanks, carl. keep up what you're doing. >> thank you. sue, back to you. >> i'm so jealous. not only see the games but interrue the big guy. thanks, carl. we'll see you later. all right. and remember,ng ceremony's tonight on nbc. let's get to the nyse. we were up 190 points. big move to the euro, as well,

bob. >> yeah. there are some vague wire reports and i emphasize vague that dr. draghi may be talking to the germans right now. we don't have the substance of that and there's some reports out to include possibility of bond purchases down the road. again, all of this is a little vague but you can see the dow popped good 60, 70 points. the euro popped, as well, as sue mention so the bottom line is we get details. popping up to the highs of the day. gold prices are closing. courtney reag 5n tracking that action. courtney? >> we settled margin alally hig and now electronic trading, tracking what you're mentioning down there at the euro. gold actually closing at the highest weekly gains seen in about a month and looking at the other metals complex, silver up. copper down a little bit. with gold, we have profit taking

in to the end of the week with the economic data weak and perhaps not weak enough for the fed to take any real action. at least not soon enough for some of the gold traders down here. and speaking of gold, just in time for the olympics, the gold metal is worth about $644 right now. based on the value of the gold and the silver bouillon in the actual physical metal itself up about $20 in value from the beginning of the week. for more, check out the blog on cnbc. >> now the nasdaq. bertha coombs manning that chair and the pop in the nasdaq, as well. >> yeah. the nasdaq following the rest of the market positive for the week and for the month. had been negative coming in to today. the big drags, of course, are facebook with the disappointment. shares off of the lows. back above $24 after more than $15 below the ipo price. starbucks is actually the biggest drag here. it is now at a good seven-month

low, near, a little bit off of the lows of the day. a big boost of expedia. it actually beat in terms of revenues. good news there. an upgrade. the stock today up a massive 20%. that's what's really helping to boost the nasdaq. amazon deexcite the disappointment on the revenue number, some traders say they think the margins may be near a bottom here. they might be a little bit optimistic and somebody else is, too. up 7.5%. apple higher today as it makes a very intriguing acquisition of c. these are the fingerprint technology company, only $350 million purchase, bob. doesn't go anywhere near putting a dent in apple's $117 billion hoard but i'm excited about the idea not using passwords and i forget all the time. >> that ian why you have password trackers which i have, as well. you need a whole little set of software to keep track of that. thanks very much. rick santelli tracking the

action at the cme. dow's up 100 points in the last 10 minutes. how's the action in the bond market? >> so glad we're doing this right now. look at how the markets are moving big time. look at the euro versus the dollar. stocks took off and what's that doing to the 10-year? avoided hooking in to selling off when stocks rallied. not today. we see 10-year yields now approaching 160. 160. very close. so the way it goes is and i don't like rumors but this is moving market and it isn't really a rumor. what it is is the head of the budson bank and that mario draghi reaching out to council members and bank executives or presidents but he's going to try to get everybody on the same page and what are the topics

moving the stocks like that? you can almost guess it. maybe more ltros. buybacks. lowering interest rates. so when he grabbed the mike midweek, he continues the move in the direction an it's having a powerful effect. you know, weekends used to be anxiety. now it's shifted to what's going to happen thursday with their meeting? who's on board? remember, angela merckel left for vacation yesterday. it's ironic. but parkway is it having an affect on the markets. back to you. >> i'm sure she's on the phone. maybe steve liesman with more breaking news here. >> doing what you want. i got off the phone with a spokesperson for the european central bank who would not confirm or deny the meeting but however it's normal ahead of a governing council meeting as there is next week for mario draghi to speak with members of the council and not denying the meeting and saying it's not that big of a deal. the spokesperson's hope to tamp

down the rumor. i'm not saying what to do with it. sounds like the meeting took place but i'm not sure it's anything more than we probably learned yesterday which is that draghi is moving towards some form of quantitative easing or some form of assistance but that he needs to have on board among other members or especially among those members the bank. >> it tells you how much the market -- >> they want it to happen. >> they want it to happen and the reacting as if it's happening even though it hasn't happened yet. >> we learned yesterday i think, sue, what draghi is thinking. >> yes. >> and he has to have discussions with members of the governing council to get there. and the real question i think that markets need to figure out is what do the germans think? >> handicap that for us then, steve. when's the german reaction going to be to that? how much can draghi influence angela merckel? >> i think the germans on board

with what needs to be done to save the euro now as long as the back end of this thing has some form of coherence to it in that the germans don't end up taking a huge potential liability of bailing out all of europe. for example, if they had the banking unity they're talking about, if that was going, i think this is all tied in with that. i think they're willing -- look. think eve been dragged fairly kicking and screaming all the way but exceeded to basically what's happened. the big ltros and those type of things. maybe they talked about a longer term ltro. additional purchase of sovereign. but i don't think they're going to write a blank check so there's a form of negotiation here if draghi's going to be true to the word or true to the interpretation of the word the other day to do more. >> how far can they go, steve? for example, do the obvious thing and rate cuts and bond buying but would they go as far as, say, granting the esm a

banking license? are they along that path yet? >> that's kind of been floated so -- >> the other day there's positive comments about that. i guess there's some reluctance and now the idea of levering up the esm and use -- give it more fire power out there. the u.s. treasury department has been urging the europeans to come up with a bigger firewall and that would be part of it. what the germans do not want is to write a blank check to bail out of all of europe. if the things are going on and by the way, the closer we get, the worse things get, the more the germans have exceeded to these measures. >> i want to bring in tyler vernon. but before that, steve, can the market to a certain extent by its reaction force their hand a little bit or snot. >> i think it can. i think it can. i think that they have this whole time been behind the market and dragged by the market in to different policies and now that they have had the rallies here, i mean, they're basically playing with fire if they decide

to upset the market and don't come up with something here. draghi interpreted a certain way. i think it's interesting today, sue, nobody stepped forward to reinterpret draghi or for draghi to say that's not what i meant and my guess also, sue, i'm not familiar with the politics but i have followed it and he wouldn't have quite as far if he didn't have an approval from the germans so there's some issues right there. >> is he expanded -- did he xleerly expand the mandate and come out yesterday as some people argue and as i heard and say, listen, smooth transmission of monetary policy, that's within my bally wick and if that interrupts that, inability to finance sovereign states, is he trying to expand the mandate? >> i don't think that's an expansion in the sense before of draghi and heard it before from touche.

the idea they cannot run monetary policy with all the different sovereign rates out there. that's within the mandate. said it before. and i heard it said, bob, ahead of actions by the ecb an enthe question if that's a firm signal to the market. >> tyler vernon, how would you handicap what's going on right now? we are all talking about the fact the market's taking a bump to the upside based on the assumption that perhaps there was a meeting and might not be the correct assumption as steve mentioned. he reached out to the ecb about that. do you wade in to the waters? do not not? what do you make of the market's reaction to rumors? >> you know, i tell you. i am really surprised with how much the market moved over the past few days. i think it's potentially setting up for a big disappoint. long term to cure the problems, i don't know if more leverage cures the problem of too much leverage. more of a fiscal problem.

i think we are setting up for potential disappoint next week. >> it's a friday. >> it's a friday. >> it's a friday. bob, how's the volume? it's a friday. is the volume there for this kind of a move to support this kind of a move or not? >> volume was seasonally light up until about 20 minutes ago with the pop-up and now the volume picked up a little bit. i don't know there's enough here to put us in heavy territory but seasonally light today. picked up 20 minutes ago. >> yeah. >> is steve still with us? steve's calling the ecb again. all right. so tyler, you would not buy in to this particular move in the market. do you short it? >> you know -- >> going in to a fed week. >> we're selling cover call options to bring in a little additional yield above and beyond the dividend i think makes a lot of sense. i don't know. i think buying vx is sense here. setting up for a potential drownfall next week. it's a really uncertain and

scary time. >> thank you. >> you know, the other thing, sue, the big movers in the last 15 or 20 minutes are the risk-on trades more and the materials and industrials are the one that is are moving up, what you might think with aggressive action. >> a real change from the other day. >> yes, it is. >> a big rally but it was telecom and utilities and the defensive sectors. >> currency ies are really move today. the euro, the aussie dollar, the canadian dollar having a big move, as well. we are following this move n. market up better than 200 points now on the trading session and the next chief at jpmorgan. yep. you heard me right and the drought and the impact on the hog population. we'll hit the farm all coming up. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station.

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coming up, guess what. it's been a great year for stock. we ask if it's finally time to start believing in the rally. no rally in social. facebook, pandora, pummeled lately. is wall street anti-social? we've got the ceo of meritage up

60% year to date. can these good times keep rolling? lots of good things coming up. sue, ty, back to you on "power lunch." >> thank you. jpmorgan shaking up roles in the top management today and we may have a better sense of what might be in the running to replace jamie dimon when he steps down. kate kelly spoke to him today and she's joining me here with some updates. very interesting conversation you had, as well, with him. >> it was. he said quite clearly this morning he expects to stick around for many many years and doesn't think of today's news as an immediate cause for action. however, he said it seemed time to usher in new leadership and that that was the responsible thing to do. one thing he was certain about -- that the next ceo of jpmorgan isn't one of the peers in age. like investment banking chief jess daily and todd macklin. dimon talked about a half dozen

younger ceos lining up for a horse race. gordon smith, daniel pointo, douglas petno and matt zames. he spoke highly of all of, namely matt zames. new corporate and investment bank co-ceo pointo whom dimon e said was a great fellow manager and mike cavanaugh, a lot of cs here of jpmorgan. it is a crowded race an one only now getting started, sue. i'm sure a lot of betting going forward. >> i'm surement it's going to be interesting to see who gets the upper hand and how many people stay around. i mean, i would think that if you think you are in the running you are certainly not pursuing other avenues at other firms. >> sure. and it's an interesting mix of people. and i should note that most of that group in the 40s.

gordon smith is on the bubble for the age argument but all different parts of the bank. mary erdos running the asset management division and then gordon smilt from the consumer side so it's real mix of people with a mix of expertise and they're also folks today who were sort of left in their current positions an not part of senior roles and may have surprised people including doug bronstein. >> thanks, kate. bob, over to you. >> tough time for farmers. worst drought in decades. craig forbes has 1,200 hogs, farmer on 1,700 acres. thank you for joining us. paint pa picture of the drought. when's it doing to iowa and the hog business? >> well, we have passed that critical stage of corn production. poll lags phase. and about two thirds of my crop is gone so we know that we have lost a quantity of this crop. now we're concerned about quality. accompanying droughts is

typically toxins, funguses, stock rot. the other diseases and insects that affect the plant weakened from a drought so now we're concerned about will it be a quality feed for our livestock? will we have sufficient supplies and then of course the cost increased about 40%. >> two thirds of your crop is gone. did i hear that right? >> that's correct. the corn crop we estimate here in this location about two thirds of the corn crop is gone. iowa, i would suggest, may be one third of the corn crop is gone in iowa. but the soybeans we had hope for and extensive hope for soybeans until last week. we missed the rains. not forecast for rains and if this persists another week or two we'll carve in to soybean crop in a significant way. >> now, we know feed prices are going up, you mentioned that. tell us what's that doing to the hog prices? can we expect prices for pork and poultry, fox, to be going up

soon? >> well, the immediate reaction of most producers will be to sell the livestock at lighter weight so they can stop the feeding of the animal and get them to harvest a little bit sooner. but the long-term is that you have a void in the market and in case of poultry it might be 90 days. in the case of pork it's ten months. we'll curtail the breeding of the animals. not as much supply and reduced supplies in the future and for beef cattle may be a year or two before the full effect of the drought hits but in the short term liquidation, more supply come to the marketplace and so we're going to see actually lower prices on the short term. >> all right. mr. hill, we are pulling for you. certainly for farmers and for, of course, those of us who are consumers of your products. back to you, sue. coming up, the pawn stars are a hit on tv but what about

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all right. welcome back. a little snapshot of the markets here. we were up 115 a half hour ago.

dow essentially doubled. unconfirmed reports that the head of the ecb mr. draghi speaking to german officials about potential action next week. it did move the markets. s&p moved up. dow industrials at the highest level since early may and i would note here while the euro did shoot up initially it's come back down in last 15 minutes. not far from the highs for the day. >> we're looking ahead to next week and talking about the fact it's a week filled with earnings, it's a week filled with the fed, the ecb and then on friday the jobs report. >> between the jobs and central bank, do you think earnings impact the market? >> i think some what but earnings are out at this point. it's ecb, stimulus, fed. >> and jobs. >> and jobs. >> something like lowe's, you think it's a light revenue like everything else we have seen? >> looking at that. see how the consumer's spending going forward and looking at lowe's. it's muted by everything el