this past weekend, new york city hosted its first ever triathlon. fa "fast money," swimming the 2.4 miles, biked 12 miles and ran a full marathon, 26.2 miles, finishing in a gruelling 16 1/2 hours. >> congratulations, guy, you are an ironman. good job. >> congratulations to guy, our very own ironman. >> there you go, guy. thank you. hope you feel better. >> crazy day. >> thanks as always. >> thank you. >> "power lunch" begins right now. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> congratulations, guy. we knew you could do it. some new numbers show the american shopper is back big-time. today, what it says about the big picture. we will also go micro in the retail sector to help you take

advantage. standard charter, accused of doing billions of dollars of business with iran. regulators are about to take that bank and perhaps turn it into an example by revoking its new york license. we'll find out about that. check out google. it's on the rise 1 1/4% on the trading session, the highest in 4 1/2 years. and we'll talk to tyler, down at the nyc. >> thanks. as to guy adomi, i can't even stay awake for 16 1/2 hours let alone, bike and marathon and swim that distance. lots of retail numbers out jumping in july. largest speak in five months as americans spent more on cars, furniture, clothing, the commerce department says retail sales up .8% in july. that comes after three straight months of drops. that's one reason why it's so important. this was the first time since

april of 2005 that all of the major components of retail rose in one month. so what's it mean for the retail names that we follow? courtney reagan is going store to store to find out. what do you say? >> that's right. today's retail reports are high profit on top of quality growth illustrating consumers are willing to pay for the right products at what they perceive is the right price. michael kors earnings almost hard to believe soaring past expectations, revenues up. and thoroughly impressed. high end department store saks reports a smaller than expected loss. tjs up 30% year-over-year, tjx. and home depot says consumers

and areas hardest hit by the housing sector are now beginning to spend on home improvement projects against and helped lift the income by 12%. the retailer to watch is the world's largest, waiting to see if walmart can continue to improve its u.s. sales trend. let's look at big names in retail and how far they've comstock-wise. see the gap? believe it up 87% year-to-date. limited and walmart, 23% year-to-date. >> sue. jeff kilberg is with us. i know i've done my fair share to boost retail. if you want to invest in it, how would you do it? >> the first time in four months since february with this retail sales number. right now, i want to coattail home depot.

ma masco feeds the products to home depot. i like target. i've been adverse to get into high end retail. we saw kors produce and people going back to school, will run to target to get what they need. >> yes indeed. i was there this weekend. do you think it's safe to spend again or are you still trying to save some money? go vote at finance.yahoo!.com. results coming up on "power lunch" at 1:00 p.m. eastern time? >> i'd answer yes to both of those. spending and trying to save. anniversary for may and june not nearly as optimistic. the numbers released today showed the biggest drop on that metric in three years. the managing director, i want to leave time at the end for the recipe. what do you make of these numbers and what's going on in the market right now?

>> retail sales is interesting and last month got revised downward so the move this month was very dramatic and very positive. yet we still continue to get conflicting data out of broader macro pictures. the market continues to churn and struggle. we're part of this slow grind as people are expecting the fed will add some stimulus come september. why would anyone who invested large asset managers, hedge funds, anyone really invested, if the expectation is the fed comes in and market goes higher they will ride this wave until such time a catalyst says no. >> you have that expectation and mild expectation europeans will fundamentally do something and the bank of china will jump in if they need to. >> if y're a long term asset manager, why would you sell if all this is there and you expect the market to go higher and it is going higher. what is the recipe?

>> take the tomatoes out of the garden, let it sit and marinate and glass of wine and cheese, doesn't get any better than that. >> gardner reporting a drop in mobile phones for the second quarter, that compared with the same time a year ago. mobile phone sales moving down. the 419 mill mobile units, the second drop. there is positive news for samsung. gardner says they have increased their lead over apple and now command a fifth of the xwll market. samsung's global sales were 30% higher than a year ago. the big loser, see if you can guess it, nokia, down 15%. samsung doesn't trade in the u.s. but nokia and apple do. boy, they're going in the opposite direction. apple up 68%, nokia over the past year, down 54%. let's check in with brian shactman for a market flash.

>> very interesting to see what some investments are. this one, they added a slow and steady dow component. about a million shares, dissolving two million shares in comcast, up 46% year-to-date, probably taking a profit there. maybe the most interesting, adding 3.5 million shares of yahoo!. >> thank you very much. still no word on the fate of standard charter, the latest british bank accused of doing business with iran. settlement talks are reportedly being held today. the superintendent of the new york department of financial services says quote for almost 10 years standard charter bank schemed with the government of iran and hid from regulators roughly 60,000 secret transactions involving at least $250 billion. reaping standard charter hundreds of millions of dollars in fees, end quote. ambassador mike wallace pushing

for tougher enforcement of those sanctions includes a call today for the u.n. to suspend iran's membership. mr. ambassador, nice to have you here. >> thank you for having me. >> if you would weigh in first whether you think new york should revoke standard's license? >> i don't think it's time for a slap on the wrist. time to send a message the most egregious violators should hear loudly and clearly it's not acceptable to do business in iran. if the report of standard charter's business in iran are true, we think they should get the equivalent of the financial death penalty, losing their license to do business in the united states and new york. >> in the entire united states? >> we do. we don't think it's appropriate for any business that operatings in iran, does extensive business in iran to have access to u.s. markets. the choice is clear, do business with iran or the united states. we called for an economic blockade. it's clear the american markets

are so much more important than the iranian markets. we think businesses and investors will always choose the united states over a regime like iran. >> do you get the sense the sensation -- sanctions as they have been put in place are having the desired effect regardless what standard charter did, in general, do you think the sanctions put in place so far are having a good effect? >> we have seen very good signs sanctions are having a good effect. you look at the devaluation of the iranian currency, off 7% since december and food stuffs in iran. it's not enough. the recent sanctions bill was very good, included very powerful measures. right now, we're calling for a full economic blockade in iran to make it clear business in iran is unacceptable. we think half measures aren't acceptable now. full blockade in iran. >> the reason you think they're having an effect is because it

does not seem to be deterring iran from pursuing a nuclear weapon. it certainly is choking off part of the economy, you mentioned the currency devaluation. but it doesn't seem to be persuading them to put their plans for an anywhere weapon aside. >> i think it would be unfair to say sanctions alone would change the behavior of the iranian regime. any serious policy has to include thoughtful military planning and credible military threat, diplomacy, special operations, the black ops you've heard about related to computer warfare and other things and sanctions. we think it's important to pursue all of them. our business is sanctions and we're please right now with progress but we can do so much more. >> when you are overseas, traveling perhaps in asia or europe, you talk to companies who previously have done business with iran perhaps, are they now willing to cut that off? are they now willing to refuse

to do business with iran and do they think that that will have the desired effect? >> we've made enormous progress over the last five years. there are few companies with companies operating there. obviously china, india, south korea and japan, where we need more attention. our focus is on those companies and we call on all investors to call on those companies that do business to stop doing business in iran. >> mr. ambassador, thank you very much. >> thank you for having me. >> sue, an a ha hoemt, fhoemt -, "f" bomb, bucket list, some new words in merriam-webster's collegiate list. i guess they use those boardswo college. jane. >> i have my own ah-ha hoemuh-h. the 'friends and '30s and what

drought is doing to 2027. we'll have it after the break. hey, follow us on twitter. our handle is @powerlunch. get breaking news and caught up on everything you need to know. the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

welcome back to "power lunch".

walmart, wmt has a big deal in china to take majority control of an e-commerce idea. forget about that. let's talk about dog food. they're talking about an ultra premium brand to go in competition with petsmart. petsmart is down and walmart is up. if you think this is funny, it's a $20 billion business and pets a 7 milli$7 million business. i spent a lot of money on dogs. >> that's one of the reasons we're not going to get a dog is the dog food. in a little bit, paul ryan is expected to address supporters at lakewood high school. we'll be monitoring that situation and expect it in the next half hour or so. >> rick santelli is tracking all the action at the cme. welcome back, rick. >> thanks, tyler. interest rates are moving up a little bit.

retail sales strong seasonally adjusted. basically, the flash was a good number. you look at the ppi, maybe it was a smidge hot. all things being equal, rates are higher earlier in the day. with all these charts, we'll give you an idea how far interest rates have come. you look at five year, we're looking towards the end of june. the longer end, copping towards the ends of may. what's really fascinating, a lot of the safe harbor issues have arisen out of europe. if you look in their own backyard, a 10 year boon, albeit, has moved higher but not nearly as addresssively as the u.s. has, which requires us to pay an inordinate amount of attention to why rates are moving higher. back to you. >> thank you very much. speaking of higher, higher food prices are on the way. the drought of 2012, the worst we had since the 1950s and will

impact into next year says the sz reserve. we'll have a special half hour dedicated to the drought and the hosts will have special coverage on the drought of 2012. for now, jane wells is live in johnston, iowa, reporting on a new way to beat the drought with a supersede. jane. >> reporter: tyler, the president was in iowa today, touring cornfields. you can see the devastation from the drought, complaining congress hasn't passed a farm bill. back in the last drought of '88, this is what state-of-the-art seeds could do for you. 20 years later, the difference in drought tolerant seeds, corn that's healthier and more productiv productive. >> that is a good ear. >> reporter: that ear came from new drought tolerant seeds

developed by dupont getting their first test. are they worth the high cost? they delivered 3% better in normal years and 7% with the drought. they ran out of seeds and with the drought affecting new seed growth, what about next year's supply? >> we mitigate the risk in those seed fields with irrigation. we sold out of hybrids this year, yes. >> reporter: could you have sold more if you had it? >> yes. would have liked to have more. >> these seized are more than conventional seeds and said they could lead to higher prices. dupont is first with this drought seed. mont san no nipping at dupont's hills, testing its own drought product. monsanto said when it hits the market it can help with yields of 70 bushels an acre.

that is really low. no seed can help you if you don't get any water at all. back to you. >> jane, thank you very much. everybody, watch nbc all day tomorrow for an unprecedented look at the drought of 2012. we will have a special half hour dedicated to the situation and impact on agricultural companies, the nation's formers and you at 1:30 p.m. eastern tomorrow. sue. >> it is. i will be in chicago to do just that, looking forward to it. speaking of chicago, jeff kilberg is here. we highlighted monsanto in jane's report but how would you do it? >> i see a 25% increase as of recently in that dividend. folks that own that stock, a nice place to put it. i really like agrium, a large retailer. and janna is pushing and got

denied by the board this week but up 15 snoorns you think there's still room for that stock to run? >> i think they will get their way the way they did previously with marathon. they've been great about doing it. >> ty. >> you know miriam webster, the dictionary people, they have new words they're adding to the big book this year. ear worm, a song you can't get out of your head. think carly ray jetson, call me maybe. "f" bomb, i don't think we need to explain that one, do we? game changer, gas, means exhausted. gast gastropub, a bar that serves good food. man cave, think of my basement.

matchup, two or more things combined. sexting, no explanation needed. and from our world, cloud computing. systemic risk, the risk the failure of a financial institution could causer instituti institutions to fail. and underwater, when your mortgage loan is worth more than your property is. >> we hope most of you don't ever have to use that word, "underwater." we will analyze the analysts next and groupon. five more movers for today's trading session. with ge unchanged, the biggest mover on that board is b of a. [ male announcer ] when this hotel added aflac to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪

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holly, frontier make a good couple. making it 72 plus% year-to-date since they merged. >> i'm here with jeff kilberg, citing the core daily deal business is sharply slowing. no kidding. now they down grade it to a neutral? >> no newsflash here. you're right. talk about a groupon on groupon

stock. 27% getting crushed today. in chicago there is a new app called saver. better experience for the consumer. but if you are long on the stock, you have to realize they actually made money for the first time ever. maybe this is a bottom in the stock. >> all right. you wouldn't step in at this point? >> no. >> let's look at rbc making composites on sprint. mna scenarios on leap, wireless and pcs. it is creating its 4 g overlay. it is down 1 1/3%. year-to-da year-to-date, it's up. >> they're an aaa minor league team and competing with the big boys. they have to do something

quickly. new york and company, too neutral from buy particularly pressuring value oriented retailers. buy or sail. >> i think you buy. you have two twin daughters, you know about this. it gets a burst, i think they come in and buy it. >> the clock is counting down on the metals market, plus the ad has the whole world talking and the olympic committee gasping, not for the reasons you usually hear about but it may be breaking a very important rule. and in colorado, we'll take you there live when it happens.

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i guess we're going to mind the metals in a little bit. first, we go to brian shactman for market flash or not? let's go to bertha then for metals close. a little confused there. bertha coombs is standing by. go ahead. >> it is confusing with the data we are seeing and seeing. look at the different pits here at the nymex. over in the oil pit, they're

kind of seeing the glass half full. here in the gold pit, they're seeing the glass half-empty. essentially, the data has been good enough that it doesn't warrant mario or anybody else to take any kind of action immediate immediately, in terms of stimulus. that's what gold has been pricing in. that not withstanding, what's very interesting, the action we saw on gold this morning. it went down to $53.93 an ounce after better than expected retail sales numbers. $15.85 is a crucial support level. if we continued going through there, a lot of folks said the trade would be very bearish. we managed to close, although on the down side, above $1600. psychologically, that's kind of bullish to a number of traders. overall, they're saying this market has priced in some sort of stimulus from the ecb or from the fed n. now, they're just waiting for it and watching the technicals in between.

>> bertha, quick question from h hq, wondering traders a lilike the substantial movement in measures of the ecb meeting september 6th. gold seems tethered at $1600. will we see a spike in gold on september 6th, like the others? >> it's a kind of like jackson hole we'd get more of an indication from ben bernanke and maybe even mario an drage as well. and spain and greece as that continues to teter, it certainly underscores that belief. the feeling is at that point we could see gold break out at $1625. the metals fared a little better than gold. interestingly, palladium was the

best performer and for a year, it's been the worst. it's kind of counter intuitive because there are shortages in palladium and they're the worst performers year-to-date. >> it sure is. from olympics and the great republican rollout. following paul ryan on the campaign trail, eamon, over to you. >> reporter: paul ryan has been attracting enormous crowds on the campaigntrail. here in colorado, today, they're at the high school here. this crowd is enormous n. the official estimate is 2500 people packing this high school auditorium to hear paul ryan traveling on his second day around the country. in this high school, there was a line that went down three sides of the high school and down the block. people waited for about four hours to get in this room. they're listening to country music as a warm-up. paul ryan is expected to speak

any time now. we expect him to talk about energy policy and hit the obama administration on their energy policy decisions. we don't know what the content of this speech is. one of the things we're watching for is whether or not we see hecklers in this crowd the way he did yesterday in des moines. this is his first public appearance of the day. from there, we jump back on the campaign plane with the aides and other reporters and off to los angeles this afternoon. see you there, sue. >> thanks very much. >> eamon, thanks very much. let's get trading action down on the floor of the new york stock exchange. bob, we're at or above three month highs on some of these. it sure doesn't feel that way. >> that's because the volume is so light here. not only seasonably light. we're in almost a secular decline in terms of volume. it's tough to talk about and for the trading community. you make money on low volume. we're only a few points away from 4 1/2 year highs on the s&p

500. i know it doesn't feel like it. i know the community is not excited about it. they ought to be because money is being made. housing stocks doing better. home depot had a terrific earnings report. there is an updraft on la-z-boy, ethan allen and the material groups and the insulation area. home builders higher today. the home building etf, buy all the home builders once, the itf, that stock, four year high, just shy of it perhaps. but essentially. the luxury retailers, michael kors hit the ball out of the park. sales were up 20% in europe. coach is losing a little bit of market share to michael kors, why it's down. tiffany, saks, nordstrom is not far from an historic high. >> thank you very much.

sue! le. okay, guys. the s&p up 7 of the last 9 sessions. is there more to go or is the market due for a pull back? our chief equity strategist. good to see you. it has been a pretty stellar performance for the s&p even though people don't seem to feel good about it. does it continue or not? >> unfortunately, i've been reasonably bullish over the last couple of years, it's hard for me to get excited about the market right now. when you ask people, how much is the market up, very few would say 13 and change year-to-date and 17% year-over-year n. things are actually better than they feel. it really doesn't feel that great when you look at the data. >> it sounds like if you can't get excited, you're looking for a plateau orbit of a pull back. >> we have a target expecting the market to be down not dramatically but a few percent.

more than anything else, it's a story about earnings. we can talk all we want about sentiment and investor confidence. bottom line, companies are not earning the way they had been. >> why is that? >> interesting. around 1 1/2% gdp we got in the second quarter, you basically get earnings growth stallout. people think about recession, they think anything below a zero is a recession, true in economic terms but earnings terms, it flattens out and unfortunately our view at ubs the second half of teyear we're expecting 1 1/2 to 2% gdp as well which basically means six more months of no growth and earnings. >> given that, there's fundamental things the market is facing. the fiscal cliff, the election. we now know who mr. romney's running mate will be. do you view that as a positive

for the market because it brings up discussions that need to be had or a headwind? >> a couple of questions. first, in terms of the uncertainties in the market. we have the election. we don't know how that will play out. we have a fiscal cliff and debt ceiling. we haven't resolved the issues in europe which are still facing us. that's all a headwind. i do think this paul ryan announcement is actually a really interesting one beyond the elections but changes the debate a bit, though. >> it changes the debate. the market didn't have the type of reaction that a lot of people thought it would, as we look at this picture of mr. ryan. as we know, he's at like wood colorado and lake wood high school and will come up to the podium after shaking a few more hands. maybe he will start to speak right now. should we listen in? >> good morning. >> we will wait for the headlines as he says his introduce destructions and his thanks. jonathan, you think that longer term, the discussions that will be had on the campaign trail bode well for the market? >> actually, this election for

vice-presidential running mate gets everyone focused on the real economic issues that everyone has been shying away fr from, that if woe address, allow the market to go to much higher levels, they're uncomfortable, means everyone has to give up something. in the process, we're in a better place. having that stif conversation, i think, is very powerful and i think americans are ready for that. >> let's talk about how you invest in an environment you just described and we just talked about. a lot of people after an advance like this might be turning towards more conservative investments and might be looking at preserve iing capital that wd put them in things like utilities. you don't think that's where they should go? >> i'm not saying people shouldn't be conservatively invested. you look at telecom utilities, people plowing their moneys looking for that dividend yield, they've gotten extremely expensive. if you're going to be defensive, you get a better deal in health

care stocks and consumer staples companies and technology companies able to grow in a weak growth environment. i'm not saying you shouldn't be defensive but do it and not overpay. >> good to see you again. lowe's, the nationwide chain, down 4% low today. a beat on bps, light on revenue. the key is outside the u.s. not doing well and looks like moving forward they will see softness on valspar again. a break-in at the home of steve jobs. also ahead, the picture that has michael phelps in hot water. go vote in today's poll as retail sales tick higher. are you spending more or are you trying to save more? ♪

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welcome back to "power lunch." the insurance giant progressive is taking a hit to its popular image, the downside of corporate america when it comes to social media. julia boorstin is in l.a. with the story. >> thoroughfares. it's a public relations nightmare. a blog post from comedian who said my sister paid to defend her killer in court. up 50,000 in a week according to general sentiment. why the outrage. fisher says his sister insured by progressive was killed in an accident by an underinsured driver. when they failed to pay the claim, the insurance company went to court and defended her killer. moments ago progressive sent a statement saying it did not serve as attorney for the defendant who was defended by

his insurance company nationwide. progresssive says it respects the jury verdict in favor of fisher's family and working for a resolution. up until this point the company tweeted out the same message to every inquiry writing its sympathies go out to the family but fully investigated the claim and relevant background and felt it proper lip handled the claim within its contractual obligations. progressive's defense and defense they sent us moments ago do not take away from the thousands of negative tweets now weighing on its reputation in the twitter verse. crisis management expert devin haul says social media often hurts more. and saying those on attack. and we're seeing it now. >> thank you. a story we're continuing to follow as it develops. in today's finance poll, do you feel safe spending money or

still trying to save money? this as retail sales jumped in july. 22% said i'm spending. 78% of you said, i'm still trying to save. now, let's see what's coming up on "street signs." hi, mandy. >> indeed it is. at the top of the show, are stocks poised for an ep ic fall season or fail? and binging on junk and is the united states any healthier and we debate the role of the food police in our lives. >> thank you very much. with the olympics now over, time for some gold medalists to try and bring in green. michael phelps appearing in a very provocative photo shot for a new louie vuitton ad campaign. michelle cabrera just back from london. welcome back. what has the story? >> there's this new olympic rule

because of this photo, michael phelps could get in trouble. let's show everybody what we're talking about. olympic swimmer, michael phelps in a bathtub. off to the side, you can see a louie vuitton bag. it's part of a photo shoot for a coming louie vuitton campaign. however, this photo is out too early. as such, it could very well violate something called rule 40, could get michael phelps in trouble. rule 40 is imposed on the athletes, prohibits them from appearing in advertisements from july 18th to august 15th tomorrow. it is 19 pages explaining to the athletes to make sure they know about the rule. you violate the rule, you can be fined and lose your olympic accreditation and more. it has become controversial. it's led to a twitter protest. har #those being able to be in ads

when they are most marketable. one with mouth taped over and another drying her hair covering it up with a piece of paper that says rule 40 and american distance runner nick simmons says rule 40 can kiss my temporarily tattooed butt. i wouldn't be in london today without my sponsors. they said they did not release this photo. this photo wasn't going to be part of the ad campaign. they're all trying to figure out how it got out. we have inquiries into everybody to see if phelps is going to suffer any sanctions because this is, on the face of it, absolutely a violation of rule 4 40. >> sue. >> there's some people trying to cash in by coming up with the next big thing. the conclusion of cnbc's 20 un tw der 20.

time to take the stage and pitch their big idea. they know billionaire investor, peter till will be watching. >> the finalists are competing for a rifle ship of 100 mentors and $100,000. to win the opportunity of a lifetime, they'll need to dazzle some of the brightest minds in silicon valley. >> each finalist will have two minutes to present. >> all your life's work has to be condensed in two minutes. >> i'm very nervous. >> each word, each gesture needs to be thought through carefully. >> it can go terribly or well. >> getting in front of a huge group of people is something i have a hard time doing. i'm extremely nervous. >> the question is whether they can overcome that fear. >> see who succeeds and who stumbles in the finale of 20 under 20 tomorrow tonight, 10:00:00 eastern and 10:00 p.m. pacific time on cnbc. we'll be back in a few

moments and following this story break right now. new york state has apparently reached and agreement with standard charter over those violations, doing business with iron. we're back in two minutes time.

more on the breaking news with standard charter. >> just moments ago, a statement from the superintendent of final services announcing a $340 million civil penalty against standard charter bank over charges it had roughly $250 billion of transactions that occurred illegally. this is a civil penalty n. this means that the hearing that was scheduled for tomorrow at 10:00 a.m. at which standard charter would have had to defend its license to operate in new york will not occur. that hearing will be adjourned. we should mention any sort of federal penalty from regulators from the department of justice and treasury and federal reserve could still come at a later date. sources tell us those discussions occurred separately and are still ongoing at this time. back to you. >> i don't know if you know the answer to this, the $340 million civil penalty, it seems lower

than what some were calling for. obviously, we had many people on our air saying they want the license revoked in new york city you point out is now off the table for tomorrow's hearing. what about the amount of this fine? >> that's why it's important to remember this is just what's coming from the new york department of financial services, a newly created body to deal with regulation of firms like this in new york state, from andrew cuomo saying this demonstrates the effectiveness and leadership of the new department of financial services. i commend the state legislature for creating a modern legislator for today's marketplace. that's a state issue. there still could be more fines on top of this $340 million fine just coming from new york state. that's something we haven't seen before. in prior cases, similar fines of the size of this $340 million fine occurred but none of them came from the state, they came from federal regulators. >> interesting.

we'll be watching it. thank you. >> let me get my quick reaction from bob. they're monitoring the events. what they're doing is agree not to do what they said they're not doing in the first place. >> what is taken off the table is a life or death issue for them. their stock is suffering in part because everybody was thinking there is a chance they could lose their license to bank in the united states. no globally centered bank can have that happen in new york. this has taken the real risk off the table. >> they won't lose their license but the federal regulators can move in as well with very heavy fines. we haven't heard anything with the british regulators and any rules they may have tripped over there, a little more complicated. their rules are our rules with the iranian situation. and whether the new york

regulator overdramatized the situation a little bit. there are legitimate issues. it's very sensitive. this all happened over the olympics, at the same time, a little bit of sensitivity over the aggressiveness of the new york state regulator. >> i think that will play out on the regulator. this is a large amount. not a little bit of money to pay in a fine. the size takes pressure off the federal regulators, they paid their dues and got tagged. even if they could fine them, there are greater international sensitivities. >> this is a civil penalty, not a criminal action brought by the state of new york. is there a possibility the justice department would bring a criminal case against them? >> only if there is evidence that shows -- remember, the bank is saying, we don't think we did anything that horrendous. unless there's e-mails that shows there is real criminal intention behind this, i don't think we will see anything like that. >> the broader issue is the

issue of money laundering in general. it involved potentially money laundering mexican drug money and different from iranian money. the issue of how banks move money around the world is forward and center of this. >> thank you, john and bob. sue, back to you. time on a developing story. police on the case after the home of steve johns was burglarized. jon has an update. >> hi, sue. apple's co-founder's home was burglarized july 17th. we are just now finding out about this. the one they arrested is kareem mcfarlin, in the east bay. he didn't even know whose home he was burglar rising. pao paolo alto has a rate up 63%, te

highest in the area because they know these executives have a lot of electronics and often-times leave their doors and windows open. kind of an open community in that sense. people used to trick or treat at this house but hit by a burglar. he enters a plea on the 20th. >> thank you very much. we're up 19 points on the dow jones industrial average. bag 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! [ male announcer ...forbusiness.com. [ yawning sound ]

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as we're coming up at 2:00 in the east. look where the markets stand. the s&p 500 close to an intraday hi high. nasdaq is higher by about two. though it may not feel like a big rally, we're in a pretty good place, sue. >> that's a perfect segue. jeff is looking at the vicks and we're up 9%. >> i help prepare for hedging, but up 8%. we had four weekly closes