welcome to "power lunch," everybody. we start with breaking now. deutsche banc's chief economist taking adjustments to the gdp forecast for q3. giving it to us first. >> it's positive outlook. i was excited after 8:30 when the trade numbers came out and gdp revised up to almost 2.5% and then no sooner putting the note out we had wholesale inventory data which literally offset the trade new it is opposite way and back near 1.5%. however, the mix in growth is a lot better, meaning that the

lower trade deficit combined with lower inventories lifts final demand almost a point in q2 and sets in motion a better base or liftoff point for this quarter. so even though the numbers ultimately didn't do a lot in agree gait, tte, the details lo good. >> we have inconsistent number tons economy in the past month or so. were you surprised, actually, that the mix improved as much as it has? >> not really. we had a number around 2% and cut the numbers in light of much weaker data. >> right. >> what surprised me is how the job market, the claims number which we got this morning continue to drift lower. people thought it was all due to the auto shutdowns in july. maybe that was the case but right now we're basically back really to the lows of the year for claims. if this continues, the job market definitely is looking better. it is not great but looking bett better. >> i guess the sustainability is key question. what's your gut tell you as you

look around? because anecdotally if you talk the people on the street, they don't feel that optimistic. >> sure. >> so what are you seeing underneath? >> unemployment is over 8% for a long time but i think for investors the view is maybe going back to 9%, going to have a double dip. europe is a factor. i think what we're up against is an economy that structurally is a bit better. household balance sheets are better. and we think overtime the equity market will better reflect that by assigning a higher multiple to stocks than what's been the case. not a great environment but one where investors are too pessimistic. >> ty? >> you have been rather more optimistic than colleagues on the street and how should we feel about this now that you have gotten optimistic again? >> beware, tyler. i'm not trying to be too optimistic. we have been here before and had another it ration from europe and that's the hedge and keeping

the optimism of too unbridled and we have an election and a fiscal cliff coming. those are big issues. i think ultimately they'll be resolved in a satisfactory way but meantime the economy will keep growing and that's the point. >> you will be with us later in just a few minutes, joe. meantime, ty, we have some breaking news out of the bond market. the government auctioning $16 billion in 30-year bonds. everybody's watching the 30-year today, ricky. how's it doing? >> well, you know what? auctions have been consistently lousy in terms of focused on demand. this auction, like yesterday's 10-year's going to get a "d." we'll put a word on it, "d" for dog. 16 billion 30-year bonds. 2.825. well above the wi range. it was on the highs in the final moments of the auction. it was 2.81 on the bid side so

we priced through. the 10 auction average on bid to cover, $2.67. usually chase every dollar's worth of securities available. this one, shortchange. 2.41. indirects were a little bit above average at 36.7 versus 31% 10 auction average but the demand, the wi pricing, every aspect of this is very similar to yesterday's 10-year. vacations, europe, vacation in august or market moving lower and yields higher, investors definitely held their moez for the last two days. tyler, back the you. >> "d" as in dog. steve liesman is here. joe isn't the only one rethinking the forecast. as he points out, raising from 1.5 to 1.7 is not exactly, you know, kind of doing the happy dance here. >> no party hats in that number. i want to show you, though, the tale of the gdp tape this morning which joe was talking about it.

8:30, the trade deficit comes out and smaller than expected. substantially smaller than expected. economists, they revise up the second quarter gdp. that's substantial for reason why it's important is because all of a sudden the economy was at least going sideways on growth. not decelerating. 10:00 the wholesale trade come out. what are we doing? back down at second quarter growth. however, what i can tell you as joe pointed out, jobless claims number may be a legitimate reason for optimism. look at the chart here and see as we had that surge. everybody's like off to the races again. you can see it bumping back down. we got through the volatile period which is the auto shutdowns. everybody throws out the data that doesn't matter. last two weeks, see that decline. 361 off of 367 before that. and then now saying wait a second. maybe jobless claims are doing

better than we thought. one more chart to show you, tyler. which is the trade data. just look at exports. that's something that helps out the u.s. economy which is year over year take a look. right side of the screen. there's a surge. 11% year over year. i will tell you there's a major question with that. because it looks like trade with china and trade with europe is going well. however, is that something that's in our rear-view mirror and the weakness over there to hurt our exports? we seem to have with stood the weakness of those two countries. >> back to you, sue. >> joe, let's address the export picture first. i think that's an interesting point. and how much of that is currency related. how much of it is not. what do you make of that? >> i think probably more rear view. hard to believe exports as strong as they are in light of what's happened to the global economy and particularly europe and seeing things like the ism survey. i think export growth is going

to slow over the next few months. having said that, if the ecb and the european policymakers do some things that the market thinks they do then you'll see exports recover later in the year but the story to talk about is housing because there's so much positive stimulus to come from a stronger housing market in terms of household and bank balance sheets, wealth assumption and the multiplier that housing has on the economy and makes me more bullish for the second half. >> does the improvement, the gradual improvement that we're seeing that triggered you to increase your forecast slightly, do you think it takes fed action off the table? >> i hope so but this is one of those should versus will. i hope they don't do anything but unfortunately from my vantage point the fed shown a per pencety to do more, not less. i think they run the risk of higher commodity prices and arguably higher inflation. it's great if the fed does nothing.

if the numbers are okay, maybe they won't. they'll give investors confidence. >> all right. we have one more segment with you in a couple of minutes, joe. wall street economic forecast, as you know, rising. joe's an example of that. where do you stand on the economy? you can vote in today's finance.yahoo.com poll and we'll have the results later. ty? >> thanks very much, sue. jim iourio is here. data points, it's getting better, not getting better. okay. not getting worse. what do i do? as we think of that, let's look at the vix at a really sort of submerged level right now. >> the vix because of what joe said, things are getting a bit better, meaning very, very gradual and doesn't take the fed out of the picture yet and propensity to do more, not less. i argue from the standpoint of the bernanke put being in. at least the potential is there. that's why volatility is compressed as low as it is. that being said --

>> point made yesterday or the day before. >> right. the stock market took out the 1400 level on tuesday and then sat here. something's got to happen relatively soon or explore the lower end of that range quickly. that etf is okay but you need to move relatively quickly with a natural decay itself and i play it with options but not a bad way to play it. >> thank you very much. back with you in a few minutes. we have heard about the ups and the downs for the economy today but earnings reports and what ceos are saying on conference calls is on your radar, as well. jeff cox says brace yourself for significant count grades in to the future. >> yeah. looking at revisions here, tyler. as the season has gone on, we have seen a slew of negative revisions of analysts, about 2 to 1 ratio. decelerated a little bit and the trend for weaker earnings. the stock that has had the most negative revisions apple. very interesting.

>> been kind of a wishy washy quarter looking back at eaings. >> we have already had -- >> revenues and profits not as strong as prior quarters maybe not unexpectedly. >> a 40% beat on the top line with revenue and a lot of analysts looking at that as far as the demand goes. no you you get that backed up with the numbers of this morning. see the trade. i was looking at a note from citigroup. they say that this import demand is peaking. so i don't think we can count on that very much and this inventory thing, i think pushing gdp, pushing a lot of growth we have been seeing. starting to fade now, as well. so i think that's going to also figure in to the earnings. >> jeff cox, thanks very much for that insight. sue? >> a final thought of joe. jeff does have an interesting point about earnings and the fact that only 40% basically beat but is that a significant enough headwind or does the looming fiscal cliff perhaps take precedence over that? >> ceos have reasons to be

cautious. so it doesn't pay to be aggressive. i think on the earnings cuts they largely reflect the fact many economists myself included cut second half estimates of earlier in the year and now they're following some of the macro views which are, look, things are still growing but not as great as we thought. >> thank you for breaking the news here. we appreciate it very much. earnings central and a big week for retail continues today. kind of a mixed bag, though. the shares right now on kohl's down 1.5% at $51.27. they are up about 4%. courtney reagan covers retail as you know. she has more on what they're expecting down the line. hi, courtney. >> hi, sue. close second quarter earnings feeling the traders feeling meh. same store sales fell more than

expected. inventory up 13% year over year. and its cash levels at the lowest since 2008. and not unlike other retailers, the outlook for the current quarter is cautious leading it to cut the full-year earnings guidance. they suffered missteps with the merchandise earlier trying to control the inventory, the retailer understocked in demand items costing a lost opportunity to pull market share of competitor jcpenney as it undergoes the transformation. the c eo says most category inventories are now where he believes they need to be positioned in units and in fashion content in those key back to school areas which he and others believe will come later this year. as families focused on the essentials. tyler? >> thank you very much. three key stories of the pharma beat today and seema mody has all three. >> i'll bring it to you right now. amgen holding the late-stage pan kree attic drug.

expectations were low and if amgen's drug succeeded it would have been a $2 billion to $3 billion drug. bristol myers squibb completed the tender bid for amylin pharmaceuticals. it will become a subsidiary of bristol-myers. the stock trading slightly lower. eli lilly are receive $1.3 billion and as a result raised the 2012 profit forecast saying it will use the extra cash on the pipeline. at the moment, trading lower. tyler, back to you. >> thank you very much. coming up next, guys, some really nasty ads hitting the air waves and we are still more than three weeks from labor day. we've got two ads that you will definitely want to see. an you'll want to see this, as well. find out what happened when a young couple went in and ordered a tv set in washington, d.c.

you'll never believe what they got instead. maybe you will after looking at that picture. before the break, five big movers. we are back in a flash. mcdonald's, again, to the downside.

welcome back to "power lunch." take a look at shares of barclays. not the football conference but the financial. an afternoon rally here. still down a penny. but as you see, spiking. they have a new chairman. the chairman and the ceo stepped down in the scandal. the reports are from the wsj that sir david walker, long-time british banker, the next chairman. official announcement could come tomorrow. back to you, sue. >> thank you. amazon is under fire after a big page mess-up. a young couple in washington, d.c. ordered a tv. a package showed up. smaller than they thought it would be. turns out, there was an assault rifle inside. >> it was only about 10 or 15 minutes where i was alone with the thing and they came in and saw it. and we were all talking about what to do. you know? once we found some information that led us to believe it wasn't

an illegal weapon in the district we called the police. >> we reached out to amazon for a comment. we look forward to hearing from them. ty? to politics now and the district of columbia. the campaign season really doesn't officially start until labor day but some nasty and very expensive ads have already hit the air waves. john harwood is live in the capital. both sides are holding nothing back now on these ads. >> reporter: nothing at all, tyler. you know, if anybody doubts that the campaign is nasty and negative and distorted, just click on their tv or go online, like for this ad being run by a pro-obama superpac that essentially accuses mitt romney of causing the death of a worker laid off from a plant, fact checkers have said it's misleading and distorted but here it is. >> she passed away in 22 days. i do not think mitt romney realizes what he's done to anyone. and i further more i do not think that mitt romney is

concerned. >> look at the totals. $32 million in ad spending this week alone. supposed to be the slow period. and republicans are doubling the amount that obama campaign is spending. think eve got an ad which fact checkers debunked saying barack obama wants to gut welfare. here that's that ad. >> july 12th, president obama quietly announced a plan to gut welfare. under obama's plan, you wouldn't have to work and wouldn't have to train for a job. they just send you your check. >> reporter: given how over the top both of these ads are, little wonder that many of the targets of those ads, undecided voters, are getting disgusted by the whole thing like this woman i talked to in a shopping center in ohio earlier this week. >> if it's on, i listen. mostly i turn it off. >> reporter: you don't seek out information or you don't try to watch the campaign ads? >> oh, no. absolutely they get muted. >> reporter: so she's got a lot of muting to do for the period

through election day. that voter, tyler, told me she is only going to pay attention to the debates at the end. not watching the conventions but there's a whole lot of ad traffic and mail and phone calls going out between now and then. >> all right. thank you very much. the debates are really going to be the telltale. sue? coming up, analyze this. on the stock list today, toll brothers, cisco and aflac. the question is, should you follow the names? big day for manchester united. the english soccer team getting set to go public. before the break, five big thursday movers with the dow down 16 points. let's see what's on the move? we have stocks in the green including caterpillar up 1.25%. , how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted

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particularly expensive on a pe basis. the firm, however, raising its price target to 31.50 from -- this is a stock you have liked and mentioned a couple of times before. >> i do disagree with it. we mentioned it yesterday. the market up on toll brothers today and not so small to keep score but it would be jim 1, jpmorgan 0. the point is it seems odd to upgrade the whole sector. we are at a historic point for correlations in the entire market. pick one that's a loser and the rest is winners seems like an odd call. >> interesting. the's toll brothers up almost 84% over the past year along with a lot of other home builders. cisco to overweight. the company reports fiscal fourth on august 10th. >> her's the problem i have with this. the stock is rallied 13% before the upgrade. today just in the last couple of weeks.

plus all the dinosaur techs, they kind of all trade together, too. of the charts like intel better than this right now. >> aflac, noting that capital deployment is main debatable point. >> i like this call because it shows some integrity. it has outperformed the market up until this point. seems perfectly legitimate to downgrade it this point on a high. >> market perform from outperform. very good. all right. jim, thank you very much. the metals market is about to close for the day. and we are going to hit the floor when we come back. also, is college becoming out of reach for anyone making under $200,000 a year? >> yes. >> it's expensive. no doubt about it. this man is about to be the millionth customer.

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if you believe in the rotation out of cole in to natural gas you probably like what excelon is doing. up 1% on the news to sell three maryland coal plants and raising money and getting out of the

coal exposure. up 1%. back to you, sue. >> thank you very much. gold prices ready to close right now. we have a modest gain on the trading session but it's summer. sharon epperson is following the action for us. >> it's summer. a lot of traders are watching olympics, on vacation. you can see it in the volumes in the gold market. they're very low and almost cut by half in the last week or so. once again, we are looking at gold prices closing here basically unchanged right around $1,620 an ounce but the key is what's happening perhaps else in the metals market. we did hear of hbsc today, lowering the price forecast for platinum group metals and palladium saying that the sluggish auto demand figures we have seen to hurt platinum demand and also looking at jewelry sales for palladium and other components. the demand weak for palladium and see plat nut at $1,625 for

the year. back to you. >> thank you very much, sharon. all right. the trading action here, we're just a little bit lower on the day. slow and steady. >> summer action today, sue. stocks have been trading at a fairly narrow range. right now we have a mixed market. the s&p staying above that critical 1400 level. u.s. markets seem a little bit tied to comments about europe. look at the your ro. that dropoff you see before noon, there's comments of the former ecb board member saying that germany can't be blackmailed and ecb may not buy sovereign debt. not a long-term solution to the problems and raises questions of whether or not the ecb will buy debt and caused a little bit of a selloff. we have come off the lows,

though. the other thing is coming in to this four-month high in the market, a lot of that is driven by the strength of defensive sectors. a bit of a rotation this week. this suggests a risk-on trade is back. we'll see whether or not, you know, this holds but that's what we have seen in the last week. >> rotation for the bulls would be good news. >> it would be good news. >> absolutely. thank you so much. >> sure. we may be lower here at the nyse but positive at the nasdaq with bertha coombs following the movers there. >> fractionally moving. cisco why. positive comments. stock today at a three-month high. rim extending gains after winning a reversal of a patent loss. and e-trade today surging after ceo departure. ken griffith of citadel is on the search committee. folks see that as a potential move towards a sale and more consolidation there.

we also see allscripts surging after earnings less bad than expected. they, too, just come off of a big board battle. fresh all-time high from two years ago on its earnings and outlook. sue, elizabeth arden with an all-time high. looking pretty with the strength of the fragrance with a boost of bieber fever. >> i know a little bit of about that, as a matter of fact. my two little girls just got it. i guess i contributed to the bottom line in one way, shape or form. thanks, bertha. more reports after the bell and nordstrom now traded down half a percent at 55.22, up about 12% year to date. courtney's back with a look ahead at their numbers and people watching for this for the upper end retail trade. >> nordstrom's results dissected for the pulse of the luxury consumer.

more than just analysts. did preannounce the second quarter revenue for stores open at least a year. held by strength and the nordstrom rack discount stores but pressured by the company's biggest sale of the year. it's happening right now. wall street expecting 75 cents per share on revenue of just over $3 billion. investors will be listening to management's assessment of tourist spending. nordstrom is a big more insulated their others without a location in new york city. service has long been one of the competitive advantages but analysts want the know how they're innovating service. noble and online service is continuing to grow with the consumer base. tyler? >> love nordstrom. thank you very much. the commodities future trading commission holding a discussion today on ways to protect consumers after failures and rick santelli with a special guest at the cme group. rick? >> i do indeed, tyler.

i like to welcome commissioner bart chilton. you're going to make announcement which we can also make on cnbc. >> today, i'm calling for an insurance fund, rick, for futures customers. it just makes zippo zero sense that we have insurance funds for banking customers and we have insurance funds for securities but not for futures customers. and so, today, i'm calling for a fund that would reimburse up to $250,000 when there's a failure of a frame, not a trading loss but a failure setting up a funding mechanism and setting up the structure, the very bare bones bureaucracy for how this thing would work. looking forward to comments and hope people support it. good for customers and the economy if we get it done. >> i have had a couple of exchairmans of the exchange over six months and pat arbor totally for it. others have not been. saying it raises moral hazard.

safety net. everybody wants the high wire even higher. any thoughts in that regard? >> yeah. i agree 100% that you definitely don't want an insurance system to encourage bad behavior. encourages people to sort of swing for the sky so this program that i'm proposing today would not take care of in a downturn but a failure like an mf global. securities customers in mf global given funds back in the futures world they're still waiting. that's not fair. >> how would it be funded? >> through the futures commission merchants. just five tenths of a percent up to a limit of 2.5 billion annually. it's very modest amount and it's less than the securities insured fund currently charges. >> doesn't sound like a bad idea. i'm always open minded. ultimately, who's going to pay that? will be passed on like everything is. next question. you brought up pfg.

you know, on this floor, there's a term that they have coined. and that is regulation inflation. it seems as though we could have had 20 times more regulators and even piles more paper. you said that just the swaps definitions and paper work runs over 250 pages. >> yeah. >> i guess my question to you is, it seems to me like there was so little effort to check where the real funds, whether they were there or not, that whether it's photo shop or p.o. boxes, that was a pretty big miss. >> yeah. look. i don't disagree with you at all. regulators need to be held accountable just like everybody else in this city and shouldn't be duped by a guy with a photo shop and a bottle of whiteout. it's unacceptable. we are working to do the best we can. we need to ensure that the money is there electronically with bank confirmations. somebody can't dupe us with whiteout and a box office box.

>> knight trading. they did have a little bit to come under your jurisdiction n. a way it is an issue. electronically trading. internal controls. doesn't it scare you that something as big as knight could disappear like that? we see that the hft, the tentacles in this business, as well. does that frighten you? do you stay up at night thinking if it happens to knight it happens to maybe the futures industry? >> who do you know i stay up at night doing because you're right. when i think about what could happen in nano seconds in the markets and we have no view of some of these traders, some of these high frequency traders i call cheetahs that they're fast, fast, fast. >> i thought because they were cheating. >> no. othersdy agree but no. fast. micro dollars in millisecond and

not sure the liquidity to the markets so awesome scary to accept whatever they do. trading has to be protected. we want confidence in these markets and not a situation like knight or a flash crash and there's a bunch of other examples of problems like technology. first step is registration. we need also to have the programs tested before they get put in the live production environment to make sure they work and in my view is kill switches in case the cheetah programs are off to the races. >> whether it's you or mr. gentzler, do you think that mr. dodd and mr. frank gave you the short end of the regulatory stick in instead of writing legislation with regard to reform and regulations that were like the ten commandments and pretty straightforward, they gave you a bunch of blanks and 2,300 pages saying do your job. is that the way good regulation -- do you think good regulation and an amount of regulation are synonymous?

>> no, not always. but in fairness to the authors of the bill, the swaps market is totally unregulated. >> i get that but there's a lot manufacture you're working on outside of that. >> that's a big part of it. hundreds of trillions of dollars of regulation and without having -- >> writing some of this take yo your eye off the ball in other examples? >> to some extent. and our funding's being cut in the house so, yeah, it's a problem. >> now, maybe something would like to ask commissioner chilton a question. >> this is a fascinating conversation and really enjoying listening to it. let's go back to the idea of an insurance fund for futures. why hasn't this been done ever before? like boom, the other guys have it and suddenly you come up with the idea. i'm not passing judgment on the idea at all but why hasn't it

been the case before? >> i think it's primarily been because this is not a real e tail environment. there's not a lot of individual, small investors in the market but the firms rick's covered for a career and i think that after we see these debacles like mf global and see hard working average folks in iowa and across the midwest and with mf across the country that there's been a wake-up call, a slap in the face we do something and why i propose the program today. >> all right. thank you very much, commissioner. we appreciate it. rick, thank you for having him in and leading the charge there. we really appreciate it. fascinating conversation. sue? >> it sure was, ty. absolutely was. ahead on "power lunch" and the yahoo! finance poll, we asked you where you stand on the u.s. economy. we'll give you results coming up next. plus, brand enforcement at the olympics with new laws to make

ambush marketing a crime. before the break, a quick look at the official london olympic sponsors are trading right now. coca-cola down and a gain in dow chemical and pan sasonic is up. ♪

♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try

♪ i can almost touch the sky [ 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 all right. now to today's yahoo! finance poll results. wall street economic forecasts are being ratcheted up a bit. where do you stand on the u.s. economy? 30% said things are picking up. 36% said i notice no change. and 34% said things are getting worse. almost dead even across the board. all right. let's see what coming up with mandy. hi, mandy. >> lots of things coming up, sue. the tale of two markets. the three little words that should rule your investment decisions every single time. plus, battleground new skin, a

tough week. we have the short seller raising questions and a leading analyst who loves the stock. how's marisa mayer doing of yahoo!? starting to see how she thinks to turn around the company. a progress report. all that coming up. top of the hour. back to you guys on "power lunch." >> thanks. manchester united, the world's most popular soccer team is hoping to score big. you know? makes the debut on the new york stock exchange. that chart measures the 21 european soccer teams that publicly trade in europe. there it is. it is a stinker, however. down about 16% over the past year. brian shactman on sides as we get ready for manu to be a public company. >> that remains to be seen. historically not great investments. it had double digit returns. it's the pause for high flying tech and social media names.

the hope is that the results are different this time. pricing after the close on 16.7 million shares. between 16 and 20. the high end to raise $333 million. giving the franchise a value of $3 billion. morningstar says trade value of $10 a share. morning more known globally than the yankees or cowboys. downside risk is with the family loading about $680 million in debt. half proceeds to pay that down and then in to the owner's pockets. also, remember that the family retains full control. now, beyond the novelty of a piece of the club, there are positives. first, they're profitable. management claims the early stages of monetizing the fans across the world. third, they have major brand power with sponsorship deal of gm and the deal with nike up in three years. could be a blockbuster to re-up

on this one. potential investors said it's priced too high, they don't like the balance sheet but the road show is very well attended and there have been unconfirmed reports oversubscribed and jeffreys is handling this with extremely care. facebook is on everyone's mind. they want it to trade well. >> i'm sure they don't. and who could blame them after that? brian, thank you very much. olympic organizers are so afraid of ambush marketing they're going further than ever before to protect the sponsors. no burger king or pepsi stuff allowed at the games and in no condoms in the village unless they're the official brand. chief correspondent michele caruso-cabrera is live with that. hi, mcc. >> reporter: hi, sue. the ve rossty of enforcement this time around, unprecedented and controversial. the uk passed a new law to

criminalize ambush marketing. yes, you can be charged with a crime and fined more than $30,000. the goodyear blimp over the olympic park. goodyear, not an olympic sponsor. on the ground inic park, the only visible brands, those are the companies putting up millions of dollars to be official sponsors. outside the park, on the roads and trains leading to the events, every billboard controlled by the game's organizers. even condoms are subject to the rules. after an athlete tweeted this photo, they're wonder why they're distributed. organizers trying to prevent ambush marketing. atlanta, 1996. nike plasters the city with billboards, hands out nike flags to those attending events and visible on tv. in the end, many people thought nike was the official olympic

sponsor when it was reebok. >> no sponsor willing to pay any money. coca-cola is a big sponsor. why pay a big amount of money if somebody makes ambush marketing and doesn't pay any penny. >> reporter: now organizers can remove organizers based on what they're wearing and charge them with a crime if they think they're trying to advertise a nonolympic brand. the strict policing has led to backlash. athletes ending a new regulation of rule 40 which prohibits them from appearing in advertising in the games. shops and stores near the venues are doing clever go-rounds. the cafe olympic is now cafe lympic. even the royal institute of british architects and engineers is protesting because under the rules they're prohibited from promoting the fact that they helped build the venues.

tyler, back to you. >> all right. thanks very much, michele. call me maybe! it's the pop song that will not go away. the olympic swim team making a parody of it. who hasn't done a parody of it? would you pay to own the rights to a website? callmemaybe.com is up for sale. that story is up next.

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♪ time for the power rundown and today's theme, no surprise, money. joining us is jane wells and john carny. welcome, guys. "wall street journal" says families with annual incomes of $92,000 to $105,000 seeing the biggest jump in student loan debt. is college too expensive? i think it is for sometime. what do you think? >> i am living this story.

our son's at a junior at usc on a scholarship. our daughter graduated after two years in community college. after all that savings, we're still on the hook for six figures for their college education. i know people wealthier than i am pushing kids to cheaper alternative. students are going to default. lending will tighten up and then prices will fall. >> john, feels like an inflection point. everybody's talking about the point saddling the next generation with huge debt. >> this is 2005 when we first started to hear, well, maybe it's not so bad to default on the mortgage. right now, at the point where people saying maybe you don't have to go to college. we had a guest on the 20 under 20 special saying, you know, college is a pretty good place to meet girls and that's when i went. it's an expensive way to meet girls. i don't know if it's worth hundred thousand dollars in debt just to meet some chicks. >> i agree. >> it depends on the girls you want to meet.

>> that's a good point. i hope they get it sent before my three are in college at the same time. yesterday meredith whitney said local governments are forced to choose between providing services and on norring debt obligations. are cities safe? jane, i go to you. california is an epicenter of this debate. >> well, i guess which city here is safe is the real question. but i do think she's right because you're starting to see city by city restructure. they're declaring fiscal emergencies to raise taxes, not many cities yet doing what san jose voters approved which is cutting benefits. we'll see if the model catches on. >> what do you think, john? >> absolutely right. the obligations of the cities right now unsustainable. doesn't mean they're going to default on the bonds. they may choose to pay off the bonds while cutting other obligations. how much they spend on schools and their pension plans. most of the cities are

dramatically shorting the pension plans. they have the not funding them the way they should when they don't get the market returns they're overly optimistically projecting. won't make good on the obligations either. municipals in america are in a lot of trouble. >> let's move on to the fact you heard this hit song. i hear it all the time at my house. >> i don't think i've heard that before. >> take a listen. call me maybe.com is up for sale and the starting bid is $1,000 on ebay. jane, how much would you pay? >> well, i think i'm going to go with the current bid. zero. they have no bids yet. i think that tells you everything you need to know. >> john? >> i think this is, you know, is a passing fad. i would buy it and maybe try to flip it to somebody else really quick but i wouldn't pay anything, much more than the minimum bid on this one. >> john, you think you'd make a good dating site you said. >> it would make a very good dating site. you go out with somebody and --

>> quick trivia. >> call me. >> talk about passing fad, what was the number one song this month five years ago? anybody remember? >> no. >> beautiful girls by sean kingston. >> who's that? >> yeah. exactly. our point exactly. thanks, guys. good to see you. ty? >> all right. can't get that song out of my head. i'll be thinking of that all afternoon and the next hour. the widening impact of the nation's drought and whether the spike in food costs is a reason to avoid restaurant stocks right now. and on the closing bell, maybe the guest of the day on cnbc, peter sands. the head of the british bank standard charter on the accusations his bank has been doing business with iran. more "power lunch" right after this break.

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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. are you going to close here, jim, with thoughts on natural gas today? >> yeah. natural gas chart if you look at it from a one year after five-year standpoint, it was left for dead. rallied. >> look at this. >> last few days tried to explore the downside a bit. rejected on a storage report today. it's game on. i'm still long ung andht