>> black and decker? >> teradyne. >> qualcomm. >> all right. follow me on twitter. more fast tonight at 5:00. and power lunch picks up the ball right now. >> it is, another day filled with breaking news. there are options problems at the cboe. the exchange has been closed but is reopening as we speak. >> a short time ago, syria has used chemical weapons. here is the sound just in where mr. hagel is today, coordinating with them regarding iran. >> u.s. entell jeintelligence c assesses that the syrian regime

has used the chemical agent. >> the markets? right now they are on the up side by about 71 points. we have crude up almost a full%. >> which makes it very complicated for the president and for the administration, does it not? >> exactly right, sue. and those high stakes that the president himself has laid out are why the administration is being very clideliberate about . they took their time before hagel made his comments and now

they want to investigate the chain of custody of that gas before it was used to try to make sure with absolute rock solid certainty that the regime is responsible and that this is, in fact, what occurred. and the reason they want to be careful is everybody is mindful what happened in iran with iraq and the weapons of mass destruction in iraq. and the president set the bar very high for what would happen, if, in fact, we could prove that syria had used chemicals. here is the president last month. >> i have made clear that the use of chemical weapons is a game changer. i won't make an announcement about next steps because we have to gather the facts. . .

>> we were looking potentially at more horrific scenes than we have already seen in syria and the international community has to act on that additional information. >> what might those next steps be. >> the administration commit to establishing a no fly zone to permit rebels to. operator:. but of course any sort of direct military intervention can take a lot of risks for american soldiers and for the expenditure of american resources, blood and treasure. we are getting closer. >> thank you very much. we're going to follow this story all hour. thank you.

>> apparently there were software issues that were done overnight that kept them from being able to transact business as usual today so that rather than giving the customers a bad experience, they just elected to put the brakes on and stop. they have reopened, at least in three classes. nrmly this time of the day, they would have traded millions of contracts. >> so the s&p 500, the options to trade on that in the securities exchanges. those options can trade on the

securities world. now, like i say, to see 20,000 contracts trade just in the 15 or so minutes that they have been open is nothing. usually it's hundreds of thousands of contracts in the first two or three minutes of trading and several million contracts by this time of day. people are obviously still at those other exchanges waiting to s see, so they are waiting rather than trading. >> as only rick can bring it. rick? >> all right. first i'm going to auction real quick.

>> i can't be blamed. >> i had the paper work here. i was calling them up today asking him what he thought and he says i don't know. i wonder if they are related. i don't have all the facts here but i do think that it merits looking into these to see if they're related and the other issue down here and you have talked about it, we have a lot of people on these trading floors. they need to utilize it better. >> in light of what has been going on in our world over the past few days including what sounds like a denial of service attack.

>> it was an upgrade to an existing system, getting ready for extended hours because those hours do start hitting in a number of products. and they would be in some sort of testing mode, not production and notutti it into use. but glitches like that happen as we know and witnessed with knight. >> rick? any final thoughts here? >> they were all at a conference in loss vegas. they were trying to get it up as quickly as possible.

it sounds like it was a problem with the software upgrade. all of these systems. they had to keep upgrading to deal with the new trading that goes on. all of the exchanges. we have seen that time and time again. >> let's bring in kay lanow. right? >> that's exactly right. we talked just a moment ago with john and rick about the attacks on schwab and other brokerage houses.

>> just the most recent in several glitches that we have seen in just the last year for wide ranging reasons. what it called at the time a software bug. that prompted a halt in apple shares. nasdaq at the heart of a glitch. the exchange system of matching buys and sells had not modelled for the extreme volume of that deal and it failed. during a routine software upgrade. an old code, the new system unleashed orders for stock that left knight on the hook for a massive unwanted trading position.

>> we can be victimized. sue, back down to you. >> all right. a survey just out. almost a quarter of central bankers said they owned corporate stocks or are planning to buy equity shares. yet, none the less, the market is he is a cnbc contributor and director. you would think that given what we have just laid out that the

market would be under a little more pressure. >> you would. but this geo political stuff will hit us later today. and then we will get some activity from that. the market continues to just fascinate me in the fact that it doesn't want to back off. and the article today that you're referring to today, in the u.s., the fed does not have the mandate to buy individual stocks. in japan, they do. >> it's not the fed buying.

>> now depending upon the -- then you might get a market reaction. that's what you want to wait for. >> you put in a little protection ahead of that. >> i think that's exactly right. you might hear more of that tonight and tomorrow. >> appreciate it very much. ty, up to you. >> the numbers on the delays and cancellations get bigger and pressure is mounting on the white house in congress to fix what a lot see as a manufactured crisis, if you will. even the most conservative estimates are telling us that about 25% of the 27,000 daily commercial flights are experiencing some kinds of

delays. in the last three days alone, just checking the private data, 6800 delays on wednesday. 402 flight cancellations. about the same on tuesday. 6400 flights delayed. 385 cancellations. tuesday break down from the faa, 1,025 delays directly related to staffing. about another 975 related to weather. some lawmakers are turning up the heat about whether politics motivated a lot of its sequestration decisions regarding the furloughs. >> the president has the flexibility to implement sequestration to not cause these furloughs to the air traffic controllers. they have implemented this to inflict as much pain and use it to pressure congress to raise taxes and spending. we don't need to spend one more nickel on faa.

they have the flexibility to implement this without the furloughs. >> just in the time we have been waiting to talk to you guys. we saw three planes land about. >> thank you very much. breaking news right now. we have the first republican reaction from the capital to talk about the developments out of syria. joining us to do that. he also sits on the foreign affairs committee. what is your reaction that syria specifically might have used chemical weapons? >> it's a scary situation for

the human tear issues that have been surrounding syria for a long time. what really gets scarry is when we start talking about whether or not we're going to put our men and women of the armed forces as boots on the ground. we don't know what the red line that the president used this is a -- not a good situation there. now the french, the british, and now the zreels and now us in the united states are confirming that chemical weapons have been used. >> i understand your concern, obviously, about putting u.s. troops on the ground. none the less, if indeed, the regime is using this gas against their own people, what's to be

done about that? >> i understand the humanitarian issues around this and i will do what we can. we will support who we can from a humanitarian aspect as much as we can. but when it comes to a decision of putting our young men and women in harm's way it is one we would need a full intelligence briefing on. i am hesitant to put us into yet another war. the problem is that the president, to some degree, put us in libya. is he going to do the same in syria. what is his red line. as a republican, that has been one of the big issues with this president. there has never been any consistency or clarity. i will say this, though. the most important thing that we need to do is make sure, do whatever we can to make sure that we protect our allies in that region.

>> congressman, we will leave it there. ty? up to you. >> it is one of those moments that really does make us proud to be an american. president obama and all four living former presidents, there is george herbert walker bush reuniting in dallas for the dedication of the george w. bush library. he praised the strength and resolve in the days after september 11 and said to know president george w. bush is to like him. he said if immigration reform passes it will be in large part thanks to the hard work of president bush. more power lunch after this short break. just take it in there. ♪ money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it.

ishares incomes etfs. low cost and diversified. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

>> they reported their earnings. a quarterly drop in revenue here. there you see the stock down two cents. but over the past year, nyt is up 42%. a rare bird in a difficult challenging publishing world. this year to date it's up only about 5%. julia is following the story on the old gray lady from la. >> well, an 11% decline in ad

revenues brought results down from a year ago. it was not just print advertising that fell. digital adds also declined. the company announcing a launch of a broader array of digital subscriptions and announcing plans to get into retail and to push to expand its conference business as well as to grow internationally. tompson warned that the company will face higher costs in new areas with hope that they will help compensate for those advertising declines. sue? >> thank you so much. all right. it's become a battleground stock with some of wall street's biggest hedge fund titans fighting over it. jane wells is live in beverly hills. jane? >> the board is changed. the auditor is changing.

and one hedge fund ceo came all the way to beverly hills to explain why he is long herbalife. we will have him and more after the break. [ male announcer ] you are a business pro.

governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price.

this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. >> herbalife is one volatile stock. it's up 13% this year so far as you see, almost 14%. it's been caught in an epic battle, some of which played out

on the halftime report, of course. today the ceo is meeting shareholders in beverly hills and that's where we find jane. >> no new auditor, but two new board members here. the board announced it was still searching for a new auditor after kpmg resigned. no word on when a new auditor will be hired but the company says it stands behind the financial results it reported in the three years involved with no hesitation. one that can grow. no word on any alleged potential tinder offer. the meeting lasted all of 15 minutes. there was david simon, ceo of twin capital management. he says he bought herbalife after akman trashed it and sold

it as icon was filing. >> i don't think that there is anything funny. i don't think there is any wrong with their accounting. >> you don't think it's a pyramid scheme? >> if you want to call them a pyramid, you had better get avon and mary kay. all of them are the exact same thing. this is a good wake-up call. anything even questionable is scrubbing it clean and it's great. we're not going to have any issues. >> next hour on street signs. gee, i wonder what it is. i want to see what analysts are expecting. guys? >> selling the american dream. you can find it excluzively online on selling the

dream.cnbc.com. sue? >> 48 hours since tuesday's big market flash move triggered by the fake ap tweet. do investors that lost money in that drop have a legal case? we'll talk about that plus the power house. >> looking for a three bedroom home for under $120,000? see what your money buys you when the power house hits motor city on power lunch. ♪

♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪

♪ oh, oh, all the way ♪ oh, oh

>> welcome back to power lunch. closing out here at 14.61, up over $38. that's the best one day dollar gain since last september.

>> two questions. you mentioned a moment ago that some volume is coming back online. >> it's very, very slow. the vix trades about six to 700,000 contracts a day. >> the cboe stock? >> this is a pubically traded company. it's up today. >> it was -- it anticipated when you have a glitch like this like the nasdaq had, it's not the

same as facebook. it wasn't that much of a black eye. >> look at the spider. spy. you can't see the volume but at the point which we became aware of what was going on, the volume in the spider actually dropped a little bit and that may have been because people couldn't play off of it when they were dealing with options. we have got -- i'm calling it a self rally.

historic closing rye. once again we're knocking on the door of all time highs. so the energy material stock. i'll put up the weekly numbers. we have seen roaring, right now, home builders. take a look at the itv. there is an exchange traded fund sitting right near a new high. >> you can own that group. that's ppa. etf. >> up almost a full percent today. >> hi, sema. >> earnings front and center here. take a look at a cloud computer

firm seeing strong demand from its media delivery service business. jpm, upping their price target on the stock. now to the worst performing stock on the nasdaq. intuit cutting its 2013 outlook citing a tough tax season. ever since it reported better than expected earnings, that stock has been on a tear. >> rick is tracking the action at the cme. stocks held up pretty well on hagel's comments. what about the bond market? >> seems unaffected by just about everything. we had a pretty good seven year note auction. notice the scale.

these are really compressed ranges. if you open it up you can really see what's going on. here is where the reigns are big. if you open the chart up, these are the. >> and brief flash. the fake ap tweet made everyone see how much of a role social media plays into these markets these days. >> we saw the dow jones industrial average go from a gain of 135 points to negative 12 in under a minute and a half. >> it says breaking -- two explosions in the white house. barack obama is injured. >> immediately people started trying to confirm whether or not that report was true. >> all of the sudden everybody

started yelling the bids are coming out. >> the markets always react to rumors. what's different now is the way the rumors get transmitted. >> just a quick update on what the sec is learning. >> that might be a little bit of an encounseloring sign here. but they are still gathering string over here. we know that the fbi is investigating as well. monitoring this situation. we also know that there is going to be a hearing on cyber security later in the afternoon. we expect some questions to be raised by members of congress about this event there.

but broader questions also on cyber security and the protection of the nation's infrastructure here. this event is putting a lot of focus on cyber security and how it can move things in markets and physical space. >> you are absolutely right. jake, you're getting angry and feel as though they have been wronged. do you have a case? >> i have been hearing from investors who have been hurt by this latest twitter crash. people who had stop loss orders that were executed. people that were on margin. we're looking at individual cases against their firms. also considering a class action because people had mutual funds that may have had the same losses. we're looking at individual and class action cases. >> if you were the attorney general, how would you go after these guys or girls?

and how would you stop the financial attacks? >> i figured you would. >> i think the sec has to stop all corporate communications through social media. they just made that allowance a couple weeks ago. they have got to relook at that. people can get on and hype a stock, put a phoney news event. it's too easy. we don't have the technology yet. i think they also need to investigate and regulate these program traders. i don't think they add much value. investors feel that the market is rigged. it's not a level playing field. those are the two areas i would go for. >> are the laws sufficient as they stand? >> the laws are there but they have got to be enforced. this is market manipulation. the technology that the regulators have to catch up. >> keep us posted. >> thank you. >> thank you very much. >> all right. the power house is coming up.

we head to the top real estate markets in america. today we're going to focus on detroit to find out how much your money buys when we come back.

>> all right. are you speerexperiencing delay to federal spending cuts? >> diana joins us with more. >> it's not a big shock here. we warned about the structure of the government loan modifications from the start. and now the inspector general for the t.a.r.p. says homeowners are redefaulting at an alarming

rate. 46% redefaulted. cig t.a.r.p. recommended that they -- and create an early warning system to help borrowers. it was supposed to help borrowers avoid foreclosure. just 862,000 homeowners are now in permanent modifications. 312,000 have redefaulted and so far treasury has spent just 7.3 billion on housing programs. why are they re-defaulting? mortgage analyst says these mag legacy sub prime loans look sane. the borrowers have low credit scores. these modifications turn people

into underwater renters of their own house. now banks themselves have turned away from the hamp program with principal reduction at a rate 200% greater. bank mods are up 55% from a year ago. >> thank you very much. >> we are awaiting some fresh information. we will have that after we take this short break. elity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity.

now get 200 free trades when you open an account.

>> america's gun, the rise of the ar 15. that was a little taste of what

you will see tonight on brian sullivan's documentary. it comes as gun protesters march on washington today. gun sales fuelling profits at cabella's. one gun in particular, the ar-15 semi automatic, brian, has been at the focus of both of those stories. >> it has become america's gun. we called it that in our documentary. it has been flying off the shelves. it as much to do that people are worried that sales could be restricted by more states or nationally. one of the largest gun stores in the nation thinks that some people are buying the gun as a protest against a possible ban.

americans are currently buying some 800,000 a year if they can get one. base price? about 1,000 bucks each. but it goes well up from that. you do the math. that's about $800 million in annual revenue. spends an additional 436 bucks, different stocks, handles, whatever you name it. colored stocks. getting an ar-15 can be easy or nearly impossible, depending on where you live. in six states, sales are banned or strongly restricted. in five other states, sales are legal but subject to an assortment of background checks, age restrictions and local rules. in the remaining 39 states you can literally stroll in and if

you pass an innocent background check, boom, walk out with your new ar-15. we go a lot deeper into gun culture. i want to highlight this. this is important. there is no bias here. we are trying to show both sides of the coin. we represent law-abiding responsible gun owners, which is the majority of all gun owners that do not go out and commit crimes. we're also trying to show the other side's point of view. everybody right now is yelling at each other. >> and no one seems to be talking to one another in any kind of meaningful way. who owns the ar 15? >> the ar 15 is now manufactured by a bunch of companies. i will dispel a myth. you probably believe that ar stands for assault rifle.

no. it stands for armalife, the company that created the gun. >> fully automatic means i can squeeze a trigger and bullets come out. and semi automatic means i have to squeeze the trigger several times. >> it looks like what people consider a machine gun. the biggest maker is freedom group. freedom group is owned by the pe firm that said it will put it up for sale after the newtown shootings. >> this gun is obviously knock offable. 15 different companies manufacture this weapon? >> get this. i will take it a step further. there is a lot of accessories. they call it lego for men. like building a jeep. you can throw stuff on there.

customize it. hello kitty stocks? for kids? we're going introduce you to a guy, the only part of a gun that has a serial number on it is where the trigger is. that's it. >> this guy is nutritioning the lower receivers out of 3d printers. no serial number. he describes himself as an anarchist. he wants all guns to be untraceable. >> interesting. >> watch him make -- he just got his federal gun making license. the government could not with hold it from him. i watched the documentary the other night. >> a lot of extraordinary reporting that i know you spent a lot of time on. >> america's gun, the rise of the ar-15, premiers tonight here

on cnbc. highly recommend it. >> the power house. we will head to the top real estate markets in america. we do that. and today one of the biggies? detroit. find out how much house your money buys you in motown when we come back. ♪ [ male announcer ] a car that can actually see like a human, using stereoscopic cameras. ♪ and even stop itself

if it has to. ♪ the technology may be hard to imagine. but why you would want it... is not. the 2014 e-class. it doesn't just see the future. it is the future. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better, while dramatically reducing waiting time.

now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪ omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro.

>> time for the power house. what does your money buy you in detroit. we have michigan's top seller. he sold 456 homes in 2012. that may be all of the homes sold in detroit for all i know. let's give you market stats for detroit. median sales, $86,000. mls sales down 2.5%. 45% of sales are cash. on market inventory is down 22%. there are fewer things to buy.

>> less than 20,000 homes for sale. we had 100,000 homes for sale at our worst. >> certainly we're seeing multiple offer sitweighs for everyone that hits the market. >> is this in part because sellers don't want to sell at distressed prices? what explains that? >> it's a combination. sellers can't afford to sell. more people have worked out deals through the heart program to stay in their home and continue to make payments. buyers are just coming out of hibernation. >> first one, 28 22. built in 1998. tell me about it. >> it's a beautiful house just outside the city in an up and coming town called ferndale. it's a perfect starter home

built in 1998 and obviously it's a fair price at $119,000. >> how many bedrooms? three bedrooms. the taxes, folks. look at that. less than $4,000 a year. let's move on to number two. that is 328 harwich. a little over 400,000 on that one. nice looking. >> you know, it's a great property in a great suburb of detroit. we got an accepted offer on that property and the buyer is willing to pay $25,000 over appraised value. >> a couple of the highlights in that house? a nice modern kitchen. about a 45-year-old house with obviously some updating that has taken place. some of the suburbs of detroit are absolutely pl ll lly splend. let's move downtown to our power house of the week. if you want to play with the big

dogs this is the place to go. $1.2 million. it's been on the market for quite a while as part of the westin condo building in downtown detroit. what do i get? >> you get hotel living, hotel lifestyle in the heart of the city. it's been for sale for quite a while but there are other units moving. room service, valet, access to fitness center, the pool. it is really hotel living. >> with beautiful amenities. look at that kitchen and that, there, downtown. you use the fitness club as you said. we really appreciate you being with us. good luck to you for the rest of the year. keep it going. appreciate it. >> thanks for having me. i appreciate it. >> thank you very much. we have more breaking news this hour. this time it's occurring right here in our backyard in new york city. police chief ray kelly and mayor

bloomberg speaking now about the boston bombers. he is going to say that they also had a plan to attack new york's times square. we are monitoring the story and will keep you up to date on it. now we know that the boston bomber was killed last week and the other is under arrest and recovering in a boston hospital. sources and a senior official telling the nbc team of jeff and jonathan that the officials are cautions that the idea of the bombers was underdeveloped. we're monitoring the situation. we will bring you more from that news conference as it occurs. big hour on power lunch. let's do a quick recap. the u.s. intelligence community assesses with some degree of varying confidence that the regime has used chemical weapons

on a small scale in syria. and trading was closed until about 1:00 p.m. eastern time today. none the less, the dow is up 87 points. >> that's right. we will see you when you get back. street signs begins right now. >> we are calling it the energizer bunny rally. not because it's pink and furry but because it keeps on going. we're going to push back on the fed a bit. gold making a come back. new claims. you just heard sue and tyler tell you. and a huge options that literally has traders standing around. we will bring you another piece. you're going to meet a woman with an incredible tail of survival.