blackstone and i think it can take out a new high. >> health cares strong today. >> if you're not already weighted or overweighted toward health care, xlv is the play. >> get more "fast" at 5:00 p.m. see you all tomorrow. poir lunch begins right now. >> announcer: halftime is over. "power lunch" and the second half of the trading day start right now. >> scott, thank you very much. when you think about music these days, you probably think about apple. but microsoft is trying to change that starting today. will they? we'll debate it. we're going to hear from a woman who is leading a new charge to keep the u.s. from running off the fiscal cliff. we're now just 76 days away from that december 31st deadline. and the big -- there it is, the big fast fish in the investing pool. high-frequency traders seem to be swimming away. will that make it safer for you to go back into the market's

sometimes choppy waters? >> i don't know whether you could have heard kenny just a second ago, isn't that interesting. first, stocks marching higher as we kick off a monster week of earnings. keep in mind the dow just about 6% from its all-time high set back in 2007. how much higher can we go? listen to what john taft told cnbc earlier today. he's the ceo of rbc wealth management, managing more than $225 billion. >> i believe that if congress were to pass and the president were to sign something that resembled simpson-bowles, you would see the market take off and move thousands of points in a relatively short period of time. i think that's the single biggest issue we face. >> they are nodding their head in agreement. his comments come on the back of the latest "barron's" cover story suggesting the dow could soon soar past all-time highs arguing that stocks are healthier today based on profits and the enormous amount of cash that they have on their books.

there are more than 300 companies in the s&p 500 with a price-to-earnings ratio of less than 20. is the market still cheap? joining me on the nyse, bob pisani, kenny, is the market still cheap? >> you know, on a relative basis i guess it is cheap. look where interest rates are and look how the market is performing. for the long term you have to be an optimist. you have to believe that this article is right. my point of view from the position i have, i think you'll get the opportunity to buy stocks even cheaper than they are here before they then take off because i also agree with the previous guests, if they sign anything, if we do anything with the fiscal cliffs that looks like we are addressing that issue, i think this market just explodes. >> the bull argument is it's not just that earnings are near historic highs -- and we are, believe it or not, near historic highs on earnings. some are arguing for a multiple expansion so remember, right now there's a lot of risk associated with europe. there's a risk associated with the fiscal cliff, global slowdown and with the deficit. if some of these risks get ameal yore ated like the fiscal cliff,

then maybe you could argue we should trade at 15 times -- >> i'm not trying to play the grinch -- >> this is the argument the bulls are making. >> some of the bears are saying we aren't going to get a resolution, we're just going to get a postponement, kicking the can down the road. >> i think the markets aren't going to like that at all. i think the market will in fact back off as a result of that because the market wants to see clarity in this situation. kicking the can down the road, that's what europe's been doing the last four years. they have not solved the problem. all they keep doing is kicking it and look where we are. there's frustration, anks and anxiety. i think the same thing would happen here in the states if they don't do something. >> the fiscal cliff, i think it is going to be hard to kick it down the road much further down into the first quarter. i think that's going to get resolved one way or the other. i also think europe is starting to show some real movement here. yes, the greeks are hopelessly in debt but they keep finding ways to argue that maybe we should be helping them out more. now they're talking about buying

greek debt with that eu bailout fund. >> that would be a sea change but it is another step in that direction. it's still not fixed yet. i think that's really the concern, is that they still don't actually fix it. that's the fear here. >> long-term bull but you think things are going to get cheaper. >> but my job forces me to be much more cautious in the short term. >> pretty shallow pullback. 3% off of our highs. >> that's not a correction. >> when people say the market corrected, it really didn't correct. >> on that note, we'll see you both later. thanks a million. we're going to talk more about this next half-hour. three cheap stocks in the dow, the s&p 500 and nasdaq that could pump up your portfolio. and where do you stand on stocks? don't just watch us. participate in our poll. finance.yahoo.com. results coming up later on "power lunch."

to earnings which is going to be one of the clues as to which direction equities move. ci citigroup kicking off a very busy week. those are some of the big blue chip companies that will report the rest of the week. citi comfortably beating estimates on the top and bottom line. shares now up $1.60, at $36.35. the stock is up more than 35%, 38% so far this year. kayla tausche listening in on citi's confroeerence call. what did mr. pandit say? >> not all that much but expressing concern over the u.s. fiscal cliff. similarly the cfo responded to claims of a house recovery saying that the economy must lead housing, not housing leading the economy. while the macro environment for banks remains weak, investors are looking at each bank on a case by case basis and they're actually saying that citi's case

is improving. excluding items, citi's earnings per share beat analyst estimates by 10 cents matching 11% deposit growth and slower loan growth but big gains in securities and banking. citi one of the only banks so far to show net interest margins improving instead of deteriorating amid that lower interest rate environment. cfo saying the nim should stay at these levels for q4 as well. if earnings stay this good, citi executives said on the call that the bank should reach a 9.5% basel 3 tier 1 capital level by next year. while citi hasn't made as much on the mortgage boom as jpmorgan and wells fargo, pandit observing continued growth in latin america, namely mexico. asia though slowing remains active. to the economy now. u.s. retail sales getting a boost last month thanks to auto

sales and higher gas prices. sales overall up 1.1% and that topped estimates. this comes on the back of a new report saying that sales growth in the global luxury market will slow down this year. courtney reagan is on the retail beat. courtney? >> consumer spending is 70% of u.s. gdp and the luxury good segment is projected to continue to grow, albeit at a lower space. it is the third straight double digit increase for luxury goods though the rate of growth has slowed for that time period. accessories are winning increased consumer attention around the world and for the first time leather goods and shoes hold the largest percentage of the luxury market. one of the companies benefiting lbmh reporting record revenues for the first nine months of 2012. the wolrld's leading luxury company remains confident in its

outlook. while europe is still the region drawing the highest revenue for luxury, according to bain its growth is forecast to be half what it was last year as the region lirmps through the debt crisis. bain projects luxury sales in asia pacific will outpace the rest of the world by 18%. 1 in 4 luxury goods purchased is by asians. sprint reaching a $20 billion deal to sell of half of itself to softbank. that move will now give sprint more firepower to compete with its big e urz eye values, at&t and verizon. and sprint's stock up 145% this year. but today it's on the downside. sew ma mowdy has a market

flash. >> pharma stocks are outperforming major indices right now. some of the big movers in pharma, abbott's, treatment for help. tie tis c showed 90% of patients who have hepatitis c and have never taken a drug for this disease showed a sustained viral response to its drug. ubs says in seven years global hepatitis c market will approach $19 billion. that's a huge opportunity. eli lilly after reporting promising alzheimer's data last week today announcing results from a late stage study of its cancer treatment. take a look at a couple other stocks outperforming today as well. bristol-myers and merck trading higher. quick break and we should note that the dow jones industrial average is up 95 points. we're watching that. plus, microsoft moving into the music business in a big way launching a new service. will it be a game changer and can microsoft seriously take on apple? plus, the most powerful person working to get all sides

talking to each other to make a deal about the fiscal cliff. and you have never probably even heard of her. as we head out, with the dow up almost 100 points? here are five stocks with price-to-earnings ratios of less than 20 -- ford, seagate, metlife, dell and xerox on the plus side today. [ male announcer ] zeebox is the free app

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welcome back to "power lunch." rick santelli here. looking at intraday charts of 10 years, slightly up. considering the huge bounce in equities, many are surprised it is not up higher. where have we been? for several months we're kind of in a range, 1.50 on the bottom, 1.85 on top. mid point, right here at 1.67. if you look at lqdetf, it's been climbing. barclays on a spread basis, it's been behaving. look what happens when you go to the high yield side. the hyg etf has been bumpy. same on the spread side. hyg and high yield might be the dal darlings but lqd seems to be

humming along a little bit more smoothly. we're going to focus on microsoft. check out its shares in today's trading session with the dow up about 100 points. or close to it. microsoft right now is up 1.5% at $29.65. the software giant taking on apple with a new music service. julia boorstin has been following the story and she has some details for us. >> reporter: well, microsoft's biggest bet on music yet is part of a plan for an entertainment ecosystem to compete with apple and amazon as it builds on its popular xbox brand. xbox music is four different services with a global catalog of 30 million songs. perhaps most important, the xbox and computers and tablets with the latest windows software will have access to free streaming of any song with occasional ads. the free streaming service competes with spotify's basic service, xbox music store competes with apple's itunes, along with google and amazon's music stores. a $10 monthly subscription

service is similar to spotify's, and xbox's music spart e iic sm create customized play lists like pandora. >> today there isn't a single service that can do it all in one. with xbox music we're the first and only mainstream service that gives you free music streaming plus download to own plus music subscription. >> he says his bundling xbox music and windows in order to make its gadgets like its new phone more appealing. microsoft will release versions that run on apple and android's i ios devices. tyler, we'll have to see if the lure of free music helps microsoft compete with apple's massive giant in itunes. back over to you. >> julia, stick around. we're going to talk more about this.

and probe whether this is a game changer for microsoft. spencer ante is bureau chief for the "wall street journal." welcome. do you think this really can take a real viable chunk out of apple's commanding share in this business? >> i think it has the potential to be a game changer for microsoft with a heavy dose of skepticism. microsoft has tried to get into this market for a long time, they've been very unsuccessful. now they're coming out with a very bold and aggressive offer to not only take on apple and am done but start-ups in this market in streaming, spotify and pandora. it shows you how important mobile is to the future of the company. it's almost like they're using the pc as a trojan horse to try to establish a compelling service on their mobile systems where they really need to grow. >> spencer, do you think apple should be taking notice of this? microsoft has had trouble with this particular part of the market before, so what makes it

different this time, and should apple really pay attention to this? >> absolutely, apple should pay a lot of attention to this. apple is the dominant player in digital music sales. they had 64% market share in q2. but they're not a leader in streaming, they haven't actually come out with their own streaming service and now microsoft is going to be offering downloads and streaming and a couple other features. so it is a pretty compelling offer in theory. we need to see actually how it works in practice, if the application is easy to use and elegant like itunes is. but on paper it looks fairly compelling. >> julia, let's go to some of the history here. not too many people owned or can remember the zune, for that matter. apple has been so commanding in tablets. now microsoft is coming in with the surface which many think is going to be a terrific product but they're playing catch-up there. third, you've got the mobile phone business which microsoft, i'm sure they would disagree, hasn't exactly cracked

brilliantly. >> certainly. well, i require the zune very well. it was just an unmiss gatigated disaster. i think they learned from some of those mistakes and i think that instead of trying to build a brand from scratch they're taking advantage of the fact that they have this really strong brand in xbox. there are 67 million xboxes around the world and i think they have learned from some of those mistakes and they realize they need to have a service that works across platforms. we'll see once we start using that service if it is really good enough to make a difference. >> if i have an xbox, is this automatically going to run or do i have to upgrade to windows 8? >> your software -- the xbox software should upgrade automatically so you should have access to this on your xbox. >> that's all i care about. my son has an xbox. that's what i want to know. thanks, guys. to politics now, get ready for round two. it looks like it is going to be a doozy. president obama expected to come out swinging in tomorrow's second presidential debate following what many thought was

his far less than impressive performance in the first one. this one is a town hall format focusing on domestic and international policy. our chief washington correspondent john harwood, who has done some town halls, let us remember, joins us with the latest. john? >> tyler, this introduces a new dimension to the debates because you've got questions at hofstra university on long island that are coming directly from ordinary voters. but the one thing everybody agrees on is that president obama needs to be more aggressive to try to make the case against mitt romney, but making the case against mitt romney is only part of it. he's also got to make the case for himself in a second term. that's what david axelrod said yesterday he's going do. >> i think he is going to be aggressive in making the case for his view of where we should go as a country and a country that's built around a growing, thriving middle class, not this top-down theory that governor romney has. >> what republicans want to do,

they know mitt romney was very successful in the denver debate. they feel very good about paul ryan's performance in danville last week against vice president biden. of course vice president biden's histrionics got a fair amount of attention. but they have to keep the momentum going as well because they remain behind in the key states they need to win. here's ed gillespie from the romney campaign. >> he's going to talk about his agenda, he's going to talk about his policies. they're in very sharp contrast. there is a big choice election here between president obama's policies and governor romney's policies. that became clear in the first debate, it will be clear in the second debate. it was clear in the vice presidential debate. >> reporter: now the question is how much of a game changer are these debates really. an interesting new "washington post"/abc news poll showed president obama leading mitt romney among likely voerdz 49%-46%. what was the result in the post-abc poll before the denver debate? obama 49%, romney 47%. not many much change. >> cnbc will carry tomorrow's presidential debate live from

hofstra university, out on long island. the pre-debate coverage, the pre-game, begins on "the kudlow report" at 7:00 p.m. eastern and we will take through until the day is done. sue. indeed we will, ty. listen up -- the countdown to christmas is on. believe it or not, only 70 days to go. goldman sachs isn't quite all that bullish on the season's biggest star, which of course is the toys. we've got the call. and with the dow up about 90 points, let's take a look at some of the biggest monday movers. clearwire, citigroup, abbott labs and texas instruments all with significant gains. clearwire leading the way, up 16%. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know.

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i'm gonna stand up to her! no you're not. i know. you know ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. welcome back to "power lunch." i'm seema mody. watching shares of travel zoo hit a fresh two-year low. extending the sharp move to the downside after losing more than 18% on friday. that came in after the company said that its quarterly results would fall below analysts forecasts. it sees its cps range at 20 to 22 cents compared to the street's range of 27 cents. welcome back. let's go to bmo capital's upgrade of costco to market to

perform from underperform upping the target to $106. saying we're less concerned about market pressure. the stock a 17% run-up. 17% run-up so far this year. do you agree with this call and upgrade? >> let's put the call in some perspective first. he had it at market underperform, now he's put in market perform. this is the analyst equivalent of a stop out. he's throwing up his hands. we liked costco in june and talked about it extensively. i think they have better brand recognition than walmart. they have the size and ability -- >> a better brand recognition than walmart -- >> not brand recognition. clientele appears to be a little more upscale than walmart does. people like to go to costco a little bit better. costco has some hypnotic power, you go in buying things you didn't intend to. >> citi downgrading progressive to sell from neutral at citi after progressive announced a $1

special dividend payable november 29th. citi noting that shares are up 14% since the end of august and have underperformed post-dividends. you see the run-up on the chart there in a moment. you agree with this one? >> simplicity. i like it. it ran up 14%, a good part of that was because they expected a special dividend. they got the special dividend. catalyst is somewhat gone. >> let's move on to our final one and that would be goldman sachs, bearish call on the toy sector. lowering its sector coverage view to a cautious from neutral. noting industry declines which have persisted for some time. they appear to be accelerating. the firm downgrading hasbro to sell from neutral saying, among other things, that it's down over 3% on the day. >> there's a sadness to this conflict.

this sector is declining, kids are turning to video games. like the call. >> so 3 for 3. you'll agree with qualifications on each one of those. >> yes. >> jimmy, good to have you back. we'll see more of you in a little bit. gold prices getting ready to close. we'll go to the nymex for the final trades. what the dow 30 are saying about the rally. and three key stocks in the nasdaq, dow and s&p you may want to own. price earnings ratios under 20. aetna, wellpoint, cvx, northrup grumman and discover financial.o ! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! a

. welcome back to "power lunch." i'm sharon epperson at nymex where gold prices are closing right now, down more than $20 below $1,740 an ounce. right now it looks like it is going to be around $1,737 for the close today. we are looking at nearly a one-month low here in dpoeld pri gold prices. rbc capital market said there are a couple of factors. the bailout situation in the eurozone not going very well. a fed official talking about normalizing interest rates. a technical breakdown as well. not only in gold but in other commodities. silver and other commodities as well.

in fact when you look at gold prices since the fed actually talked about more qe3, we saw that big run-up. now we're back to where they were before they made that announcement, giving back all of those gains. silver extremely weak in the complex and copper holding up rather well. back to you. >> thank you very much, sharon. the metals markets may be selling off but here on the floor of the new york stock exchange, we are in rally mode and bob pisani rejoins me once again. we were up almost 100 points. pulled back a little bit but the underpinnings seem to be there for a pretty good session. >> 3-2 advancing to declining stocks. we rally going into the european close. i don't think it was because of europe, for once. the euro is not particularly strong today, dollar not particularly weak. you dow jones industrial average, we hit almost 100 points. that was going into that close over in europe. what's going on today, banks and drug stocks lead the market. dow leaders here are basically bank of america, merck, pfizer,

jpmorgan. citigroup had its earnings out little better than expected. helping bank stocks. abbott and lilly in the drug group had better than expected results in some drugs they're working on, helping the pharmaceutical group. many of those at 52-week highs. playing off what sharon was saying about the weak gold and silver market, we had a big rally in august and september in gold andvil villsilver and that looking very toppy right now. >> it is encouraging to those down here who are bulls because it is such a dicey weak with all of the earnings that are on the schedule this week. you could have been a completely different story for the market today. >> it could have been very easily. i'm very encouraged by earnings. i know everyone's warning about the fourth quarter and lowering expectations but they did that with the third quarter as well. in the 35 or so companies reporting they're all beating rather handily. this is what happens. when companies see uncertainty

get very conservative. to the nasdaq now, bertha coombs is there for us today. >> you know, in the merger dance between sprint and softbank, looks like clearwire may actually be the belle of the ball. sprint would need to sweeten the deal to get a bigger controlling stake in clearwire, take it over or perhaps a spoiler might come in which may also mean a higher price. it is up at a 14-month high. texas instruments also up on speculation that it is now in play and that am done may be the bidder for its mobile chip unit that it has up for sale. up 3.3%. amazon off just a little bit. overall we have strength in chips. intel up ahead of its earnings tomorrow. microsoft today also up announcing that new xbox streaming music service. back to you guys. the dow, 5%, 6% below its all-time high. dow stocks trading with historically low pes. a handful are below 10 on the pe

measure. what's that say about the market and the opportunity for stock pickers? mary thompson joins us now. >> if you're a believer in improving the economy it could push the dow back and beyond those record levels set in october 2007. a few of the dow 30 look cheap by a key measure suggesting it could be a buying opportunity. on a forward price to earnings basis the index is much cheaper than in 2007, trading at 11.6% earnings 2007 earnings. improving earnings for the dow 30 indicate improving markets. still with 13 of the dow 30 trading below the indices forward pe we pulled out the five cheapest using that same ratio as a yardstick. the cheapest, wlet trading 3.9 times next year's earnings. earnings look questionable as it struggles to re-invest itself after years of missteps.

jpmorgan chase and caterpillar both trading at just over eight times next year's earnings with oil giants chevron and cisco systems trading at just over 9 nims next year's estimated profit. cisco struggle with slowing demand and chevron warning third quarter estimates may come in shy of estimates. back to you. >> very interesting value plays there. mary, thank you. jim, where are you finding value? you've got three picks for us. one a dow, all are s&p but an s&p stalwart and nasdaq. >> just because things are cheap. they're going to stay cheap, we have the fiscal cliff. i don't think is a high-probability event. but keeping that in perspective, i like bank of america. in the dow. i think if the election goes a certain way and the fiscal cliff is averted, i think the stock market could do well and i think the banks could outperform. i like bank of america and

jpmorgan. >> the election goes a certain way. is that code for a romney win? >> it is certainly code for a romney win. >> let's go to an s&p stock that you think is a value. >> i like yum! brands. it is more of a growth play, too. global growth play as well. it is particularly with an eye on china. i don't know how well chinese economy has to do for yum! to do good. once you go down the road of pizza hut, it is hard to reverse yourself. >> said the guy who looks like he's never been to pizza hut or taco bell in his life. and a nasdaq winner. >> microsoft has this problem where it is views as old world pc but at the same time, it has a lot of cloud exposure as well. the world sometimes turns its back on microsoft and makes it cheap. i think this is one of those times. microsoft wants so badly to be cool. i hope this makes them cooler. >> you got a lot of company in

that call on microsoft. today a yahoo! finance poll, where do you stand on stocks? 18% of you say it is a good time to buy. 42% of you say we're due for a slowdown. and 40% of you i have no idea which way we're heading. sue? >> yikes. seema mody has a market flash. >> another health care mover for you. charles river labs mentioned positively at stern ag. the firm says they remain aggressive buyer of shares with a price target of $45 a pop and the stock up better than 3%. >> the countdown to the fiscal cliff is on and the most powerful person working to fix that situation is someone you have never heard of. we'll tell you who she is coming up next. plus we'll hear imf chief christine lagarde's take on the state of the u.s. economy and that fiscal cliff. as we head out with the dow jones industrial average up 90

points, here are the bargains in this market. perhaps five stocks that have price to earnings ratios of less than 20. campbell, fedex, harley-davidson, snap-on tools and molson coors. in america today we're running out of a vital resource we need

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with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪ the dow jones industrial average now up 78 points. we were up almost 100 points, so they're taking a little money off the table at this point. dow holding at 13,407. let's see what's coming up at 2:00 p.m. eastern time on "street signs." >> some very exciting things coming up on "street signs." now in honor of that record breaking space jump, we're going to find out where you might want to take the plunge in the market. we're also flipping out. all the reality shows about fixing up and selling houses aside, is this practice really helping your property value? and this is the really exciting bit. we have chuck yeager. we're going to talk about the space jump, his new record at 89 years old, and if he still thinks the u.s. still has the

right stuff. you got to join us, 2:00 p.m. eastern. "street signs," it's a date. back to you guys on "power lunch". the imf has been warning for quite a while about the uncertainty risk associated with the fiscal cliff and the debt ceiling, both of them. this uncertainty is going to increase as we get closer to year end. and it is a concern. it is a concern because, you know, investors, households, people who want to buy a house, make new investment, hire people, would like to know what the environment is going to be like and what the fiscal deficit momentum and process will be in 20 2017 and more importantly, going forward so they appreciate exactly what environment they will be in, what tax rate will apply, what loopholes will survive or not. >> please tune in to closing

bell, 4:30 p.m. eastern today. you'll here maria's full exclusive interview with imf managing director, christine lagarde. on a political front, the two men vying for the white house certainly have wildly divergent views on how to reach a fiscal deal and what to do with the trillions that are at stake. and in the separate election news, a new politico poll shows that has turned slightly more likable than president obama in several of the key battleground states. here with the beltway roundup, james homen of politico. >> good to be with you. >> tell me how -- how dramatically mr. romney has closed that likability gap with the president, sort of state by state. >> so even at the very top of the race, these two guys are tied but the underlying dynamic has changed especially among independent voters and women. even a month ago, double digits more said that they viewed him

unfavorably than favorably. now, 51% have a positive impression of romney. so it's a pretty significant swing and now there are a lot of people who like romney as a person but still aren't necessarily voting for him. >> americans tend to want to like their president, the person they put in office. and maybe that was one of the areas that people not familiar particularly with mr. romney, many of them, and some 67 million watched the debates. another thing that has closed very dramatically is the president's edge on foreign policy. this certainly must trace right back to the debacle in benghazi. >> absolutely. the president has really squandered the advantage that he had after the killing of osama bin laden. mitt romney and obama essentially tied on who's best for foreign policy. the president's approval rating has slipped dramatically in this regard and the third and final debate is going to be about foreign policy. some very troubling developments the e has tried to turn the page past that.

but obviously they've been unable. >> i don't want to put you on the spot if it is not a number you have on the top of your head, but both of these campaigns have been spending an amazing amount of time in the state of ohio. how is that stacking up right now? >> the sense of both campaigns is that obama has a slight edge but that the race has tightened there since the debate and romney spent much of the weekend there. paul ryan there today. it is probably a couple-point edge for obama, but it could go either way. >> these things are all sort of within the margins of error and what was a tight race has gotten even tighter. mr. hohman, thank you. the most powerful person right now working to fix that looming fiscal cliff is someone you probably have never heard of. cnbc's eamon javers is live in washington, d.c. with more on this. who is the mystery woman, eamon? >> hi, sue. she's katherine wilde, the head of the partnership for new york city. she is not necessarily a

household name, but she he hosting some important meetings up in new york city between business leaders and political leaders. because of her convening power she's been able to bring together an astonishing list of folks. look at some of the political figures that she has brought to her table just over the past two years, including treasury secretary tim geithner, house democratic leader nancy pelosi, senator rob portman, eric cantor, erskine bowles, alan simpson, all attending meetings convened by katherine wilde also on the business side, some of the co-hosts of these events include names lie rupert murdoch, ted mathis, lloyd blankfein and lloyd hutchens of silver lake. i asked her why with all of this experience, did she think there would be a deal this year. >> i'm confident that there will be some kind of -- there will be some path toward a solution by new year's eve. the chances are it will not be done because these are going to

be complicated negotiations. >> sue, i also asked her whether business groups would like a deal that includes some kind of tax increases. she says they're open to that as long as they get a deal and the deal comes on the right terms. >> as the deadline gets closer, has miss wylde had more success in bringing more big ceos into the tent? last week we heard from jamie dimon and we heard of course on our air from mr. blankfein but has she been able, as the clock keeps ticking, to get more people to cooperate with her and work with her towards this? >> yeah. i think what you're seeing is a convergence of a lot of different groups out there also on the same track. another group called end the debt is very aggressive and they're actually raising some money from private sector business groups to run television ads after the election on this. you are seeing a lot of these groups start to come together and try to see if they can find a way to push all of their efforts at the same time in the same direction, calling for some

kind of bipartisan deal here between the two parties. question is -- it's been the trick throughout this whole process -- is what is that deal going to be. >> that's what they're rooting for down here, to get this thing done. don't miss tomorrow night's presidential debate from hofstra university in hempstead, new york. cnbc has it all covered starting at 7:00 p.m. eastern time. plus, as tomorrow's debate is focused on domestic and international policy, the energy factor is on the top of the list. it's your money, your vote. we will be coughing everything you need to know about energy policy all day right here on cnbc. time for a market flash. >> take a look at nps pharma after sunki isurging to 56 1/2 high on friday, an advisory panel is meeting tomorrow to discuss its drug down better than 5%. do you feel the need for

speed? well, check out this sky diver's record 24-mile jump from the end of space. the edge of space, i should say. breaking the speed of sound. red bull sponsoring that dangerous feat. does it take a private company these days to take on this kind of risk? we'll talk about that in the rundown. high-speed trading is slowing down. we'll discuss if it is safe for the small investor to jump back in to this market when "power lunch" returns. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries.

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three of the biggest dow gainers in percentage terms today. right now bank of america up 2.3%. merck up a little less than 2%. home depot up $1.10, or 1.85%. sue? ty, it is time for power rundown. joining us today, kayla tausche and bob pisani. first up, the gchlt tc is gearing up for an anti-trust case against google. we've seen this picture before but it was microsoft in the sights before. kayla, is google the next microsoft? >> it definitely does reek of microsoft, sue, because the issue here is google potentially using its dominant product to help it out as it branches out to other products. we haven't really seen this come to pass yet and google obviously

would have a lot of chances to settle it this. it is too soon to call whether the exact picture is mimicking that situation but it definitely has a lot of hints of that. >> i think the concern here is whether or not they serve up their own services and products ahead of their rivals. i must say, if the reuters story is right, four ftc conventioners are convinced something is wrong in they're only five ftc commissioners. if that's accurate, that's definitely bad news for microsoft. >> google down just about 1% on the trading session. bob, this goes into your expertise. a "new york times" story finds today high-speed trading hitting a little bit after speed bump. what's that mean for the little guy? >> high-frequency traders have troubles just like everybody else. when volatility goes down it is a problem for them because they can't make as much money. that's a problem. two, it costs a lot of money to keep up the technology for this arms race that's going on. that's another problem. finally, there is a lot more competition out there. it's don't worry about it short term. if you're a long term investor,

i wouldn't worry about high-frequency trader. >> i think you could play devil's advocate for any point in this market. if you get in, it needs to be because of fundamentals, not the absence after competitor. >> this one gave me the chills when i watched it unfold. a free fall jumper, felix baumgartner, makes space history at an event sponsored by red bull. does it take a private firm to take a risk like this? fascinating. >> the amazing thing is the -- this guy jumps -- what is it? 15,000 feet? he breaks the sound barrier? that's got to be like 850 miles an hour. we think red bull's taking a risk? i think whatever it cost red bull to do this -- i think 8

million people have watched this video so far. they got more than their money's worth. it was the most interesting thing i saw this weekend. >> it does beg the question whether or not a publicly held company would put the resources and time and shareholder money behind backing something laike this. >> we haven't seen the price tag of what red bull spent over five years to make this jump happen. there is a reason by virgin galactic is privately held and why spacex will never be public. investors weren't happy when they were talking about creating a holding company. i think when they see the price tags on these things, they don't know how it will turn out. >> red bull is an australian company. >> thanks, guys. in the next hour, "street signs" is going to stick with that speed theme and talk to chuck yeager about that amazing space jump. yeager, age 89, flew into the record books again himself on

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. very interesting trading session. the dow's now back up by 90 points on the trading day. we were up almost 100 points earlier in the session when we first came on the air with "power lunch." then we dipped down a little bit. we've come right back up, up two-thirds after percentage point. s&p up at 1,437. they are looking for it to go back up. the nasdaq composite is up ten points at 3,054.15. we are getting some confirmation in the up volume versus down volume. up volume is doing quite a bit better than down volume today and the transportation average is on the up side by about 14 points. so you might be able to make the point that this is the derek jeter rally. why? because the yankees missing derek jeter in their lineup for the first time in their postseason. jeter is usually the catalyst

for the new york rallies as has also been usually good for stocks as well. take a look at the market performance since october of 1995. the last playoff game when mr. jeter didn't start. we, of course, wish him well, we wish he was playing but the dow is up 179%. the s&p higher by 145%. and the nasdaq up more than 200%. some pretty impressive numbers i certainly hope he's getting better very soon. >> sorry to see one of the immortals go down that way. jim, if we apply this logic to the last time the cubs won the world series, since you're from chicago, what kind of returns would we have? >> it's too small a sample. >> it would be thousands and thousands of percent! >> there's no doubt. how about the next time they're going to win a world series? >> let's talk about value in the market today.