read and consider it carefully before investing. risk includes possible loss of principal. >> final trades. murphy? >> intel. >> buy or sell? >> buy. >> short amazon. >> buy unh. >> dr. jay? >> gtat, michelle. >> that does it for us. don't forget to catch more tonight. "power lunch" begins right now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >> ending airport delays. lawmakers voting to end the furloughs which has sparked a lot of anger and frustration among travelers across the country, and those folks, they have been getting an earful. new fears about the economy. the gdp growing less than

expected. is the economy ever going to break out? there you see the 2.5% number in theç first quarter. what the searches say about the economies and the markets. on a beautiful afternoon. >> it is a gorgeous afternoon in new york city. but we begin with the fall out from government spending cuts. the house just minutes ago passing a senate bill. what's the latest? >> i do feel like i have been here all week. but today we have got a lot of relief. people know they're not going to have to put up with these delays. i believe the final total was like 361 essentially to give the

faa more authority to use unallocated funds to get the controllers back in the towers. also gives relief to smaller airports as well. democrats and only 29. saying however, what's really needed is still an overall big budgetç fix. >> their goal is to make the cuts as painful as possible. but flight delays are just the tip of the iceberg. as time goes on, without a big balanced solution, more of that iceberg will surface. more americans will be negatively affected. >> world team. >> now again the main thing that

has to happen now isoing to the president's desk for a signature. the other thing when congress comes back you will have the two sides of the debate going forward. do you begin to make exceptions? he was saying okay, how about cutting defense some slack. how do you get to ending the se quest you are all together or a big budget deal? >> let's bring in our chief washington correspondent. is this the way congress is going to work from now on dealing with high profile problems on a piecemeal basis. it might be something else the next day? if the republicans get their way it will be. they wanted to reserve these flight delays, which are a big

headache for members in both parties but do it without the tax çincreases. this is a deal on republican terms. the president knows that as the chief executive of the country, he bears some of the heat when bad things happen. whether or not they come to the table to have a budget negotiation with me. he's the one who folded on this and so did democrats in the senate. question is going to be when we get beyond this particular issue. we talk about defense and defense contractors and all the small businesses that rely on defense gartment contracts. are they going to put pressure on congress? we know that kids who are not going to be part of head start any more don't have the capacity to do that. >> i'm sure in this case not only were the people in congress hearing it from the constituents, they were living it when they travel home as they

do most weekends on commercial aircraft. and they had to face those delays. >> as one of my colleagues said, flight delays are a home game for members of congress. they fly every week to and from their districts. business travellers who are part of the core supporters for members of congress in both parties, the combination of their complaints and the members own personal concerns are very powerfulç

powerful. >> we're going to have to see it play out. >> all right. thank you very much. >> question of the day. is the economy skaling. new fears are in the market today. fears coming in less than expected, rising two and a half%. but economists were looking for 2.3%. and that's weak if you look at history. consumer confidence also slipped. remained concern about jobs and financial future. if that wasn't enough, listen to this one. $3.7 billion flowed out of equity mutual funds while bond mutual funds took in just over $7.5 billion of investor money. so let's bring in kenney and bob and talk about this a little bit. if the individual investor is

losing confidence or perhaps a little bit worried about the way the market has performed, can we continue to grind high sner. >> i don't think so. although what has been interesting is we have had these concerns and a lot of that has been credited to what the fed has been doing and what trader types are forcing. i think there is a real concern. they are once again just getting concerned and they will start the pull back and i think they will. the data has been relatively flat to weak and so why this number should really surprise anybody is surprising to me. >> they are also putting money into bond funds. >> but that has been going on all year. i am not that worried about a slight pull back in funds this week. i don't think that's a big concern. aside from the weak global data, the number one thing we are

still getting slow growth in earnings. i am not happy about the top line but the market right now with global -- with the exchanges being backstopped essentially by the federal reserves of the world and with 5% earnings growth, that is good enough for everybody right now. >> that's two different messages. >> that's right. and you might be right but we're already up year to date.ç are we going to be 11 or 12% year to date? or churning. >> they can't decide what to do. >> notice the broader market is being hit more. the dough is basically flat,

which are the big cap names. >> all right. have a great weekend, guys. >> i will see you a little bit later. up to you. >> thank you very much. from gdp to mcd. getting a major exclusive with mcdonald's ceo. >> you have seen these stops and starts of a recovery. this year it shows that things were slowing just a bit. you have to take that with a bit of a grain of at. we do see the impact. it is still a little early to tell. but also you have got -- you have still got a little bit of hesitance relative to certain investments backed into the broaderç economy.

>> shares of mcdonald's up about 14%. sue? >> amazon is down 21-20. the company continues to spend money almost as fast as it comes in. we will have more coming up in our next half hour. stark bucks is moving lower as well. the coffee retailer matching street estimates in its fiscal second quarter and it raised its full year forecast. but revenue was slightly below estimates. ty? >> japan's all nipon airways is going to conduct a test flight. it will do it on sunday as it prepares to resume commercial

flights very soon. since the grounding way back in january, boeing has actually gained ground, up another 1.27 today. there you see the rise in 2013 in the right quarter of the t-art. grounding. we're going to start to see the dream liners improv iing there have been about 300 boeing engineers. putting in the new battery systems. a & a says it plans to return the fleet within a couple of weeks.

either yoepian airlines. is. >> all right, phil. thank you very much. and a special appearance by the earnings squad. melissa lee and company will break down the numbers from the nation's number one home builder. among others, stay tuned. we're going to come back in two minutes. see you then. [ beeping ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze and recondition each one,

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>> welcome to the earnings squad. we dissect the earnings stories that everyone is talking about. i'm melissa lee, joined by the earnings squad buddy. let's start off with the score card here. we wrap up this week with very big earnings movers.ç it was a big beat on eps.

beat by it only raised its full year guidance by 5 cents and that is why people are saying hmm. someone put the brakes on revenue growth. it was not what people expect from that company. now they are out there effectively saying. it's all about our five-year plan. >> they really. >> we saw some progress there, but it was the underwear sales that affected the whole cliff there.

this is what i understand and read. but men typically don't buy new underwear it is seen as an indicator. >> she didn't mention the underwearç indicator. she also said this one tends to be more defensive. >> yaw but you look at hans brands. they had a pretty good earnings. they were saying that margins were improving. >> if you're talking underwear and hans, why would there be a diskrepscy?

why? >> exactly. and are they losing share. the company says its spring selling season off to a strong start. something we have heard again and again from these guys. >> the stock is ripping higher today. they tell us they are not being affected. and you have to assume some pretty aggress i pricing. >> i think you could have made the case 20 points$çago. >> i will tell you one thing as we talk about home builders.

i don't know. it's what they said when the strongest quarterly earnings in 2005. but that's quite a stunning comment as it related to this whole housing boom. and i thought that was at least worth noting as we talked about the group. the entire sector hitting a five-year high just this past week. >> when you look at the juxtaposition of what people are saying about the economy and what people are saying then you say you know? our occupancy rate going up. >> but i look at it and i say. >> the msci at a five year high? it's a yield hungry world. >> let's take a look at a trend

we have been noticing this week. this continues the recent pattern. it tells you that analysts are much moreç optimistic when the start to see the data points fall in. >> if there is anything we have been talking about it's revenue. it's not going in where. >> you can argue this is the usual game we play. >> assuming they are low volume. >> it will be a very big week. do watch for us. that does it for us today. if you want to join the conversation, tweet us. we will be back next week. now back to sue and tyler on

power. kate kelly has details on both when we come back. [ female announcer ] what if the next big thing, isn't a thing at all?

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>> sac capital is bending over backwards. such a relaxed policy would probably have been unheard of a few months ago as sac continued to shine in a somewhat çspotty. but now with federal prosecutors zeroing in on sac employees and trying to snag, some are heading for the exists. >> another story that we have been following today, j krmc.

>> it's -- if you're a bull on j.c. penney and you think we're at or near a bottom, this is some of the best news you could have gotten. he is now running a family office with about $25 billion in capital. his investment is a passive one. it's a 13 g filing and he says as part of it that he's not going to use this ownership to affect change in the way the company is run or who is running it. sue. >> avon announcing that long

time board member fred has resigned and that doug was taking over the role of ç non-executive chairman. says that he is leaving to focus on other professional commitments. can google predict the direction of the stock market? and more bad news for apple. >> iphone shipments are at record lows. samsung smart phone sales are soaring. and the competition is heating up with amazon. "power lunch" takes on the struggling i con economy. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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>> gold market is closing for a friday. jacky? >> we saw gold prices modestly higher this morning on the back of the weak u.s. gdp number. but we saw a turn in the session for the worst not too long ago. right now gold rices are down about $8. there are a couple reasons for

that. some volatility attributed to -- and one trader telling me that we saw late day put buying. the general sentiment is that we're likely to remain range bound. one trader telling me that he doesn't feel that gold has come back into its own yet. we have got key events in europe.ç

>> i have been pointing out all week the strength in the cyclical names. take a look at this one week chart. the fwreen line is the consumer index and that's proctor & gamble. there are two bright spots in the u.s. economy. the first one is home builders. all the numbers were above expectations and you can see the gains. this is one week that we are talking about. and essentially it's amazing. aerospace is theç second brigh spot. commercial aerospace has been

very strong. all of the companies have reported earnings and they have been, for the most part, very good. if you want, a poster child for the problem that i had with earnings and with top line. big global company. and they specially said europe was a major problem. the main reason that's enough to flip them into negative territory. >> thanks bob, appreciate it. >> as bob wz mentioning, we're seeing this rotation of capital into cyclical sectors and even technology while the sector is down today. outperforming the s&p 500.

we're seeing that bid in technology. some of the biggest winners include many of the biotech names. here is a reason that the nasdaq is under pressure today. amazon saw a ç22% jump. as amazon's revenue continues to rise, the stock price has been moving but the concern on the street is that its heavy spending will continue to impact margin growth for the coming quarters and thus the reason the stock is down today. rick i was noting that, you know, they have been putting some money into stocks but they are also putting money into the ten year note. >> you know, 166 yield. it was a far cry from over 2%.

maybe a two day chart is a good place to start, sue. and it keeps on going. we always talk about the spread between boons and tens. look at this chart of that year to date and notice that the widest level was around a third week of march, just a whisker shy of 60. that proved to be a great indicator for the rally. now if you look at a chart starting on these first of tens around that same period of march, look at how yields start to accelerate.ç >> rick, thank you very much.

shipments of iphones up 37%. that's the lowest rate of growth ever. are apple customers still loyal or is the company beginning to slip? lose its mow joe just a bit? paul is executive editor. what do you say? >> thanks for having me. apple has huge, huge loyal fan base. there is no doubt about that. but the data is showing them that they need to do something different. that they need to come up with a more exciting phone. now people are saying we want a larger screen, which tim cook is saying it might happen but he's dancing around that question. >> i have been saying for some time that as you compare the apple product, which is

obviously sort of the rule setter here, the one place that they have fallen behind is in screen size. i think people still want to be able to slide it into their jeanr0pocket but at the same time they want to watch more content on the screen. that gives other venn tors an edge. >> right. they still have an opportunity but it takes a long time to put out an entirely new form of a larger screen. >> the math says you can't keep growing at 30% a year every year

or very soon everybody in the world has an iphone. >> of course. the excitement that surrounded it in 2012 was overdone and the negativity arguably is overdone on the way down. that's just the way it is. they are huge, right? years. i have a lot. >> you're platform agnostic, i guess you could say. appreciate you being with us. >> we're going to take a look at the price charts. take a look at this chart. it is very telling. apple shares have fallen 32 mers over the past year.

there are a lot of good fundamental reasons to buy apple. which one would you choose? >> they're not buying amazon today. has apple lost some of its mojo? the answer is of course yes. they are not going to be as dominant as we once thought they were. i started buying apple a little bit next week. i'll buy more. because i think the mark was too pessimistic. i have apple products and i plan on staying loyal to amazon.

the market priced inç tons and tons of optimism. the fact that on today's news which was disappointing but not overly disappointing it is having such a decisive move means that it is at a precarious price point. they are exactly the opposite of the equation. >> would you add to your apple position at this point? >> i will. but i will add on strength. i have only got a little position on now and i will add on the way up, not on the way down. >> what kind of a price point are you looking for in the stock? >> up into the high 400s again. so the first indication to me is that if it trades 425 and looks comfortable there. remember, when this sell off started it started for tax reasons.

then it gained a lot of reasons along the way. apple still has a ton of cash. hopefully a positive way for the share price. plus they still sell a lot of stuff so we can't pronounce them dead yet. >> on that note, that's where we will leave it. have a great weekend. >> thank you.ç is it a good idea to have gold as part of your retirement account? hi, jane. >> hi, tiler. people are doing it. in fact, they are putting so much physical gold into their ira, some think it's having an impact on supplies this month. we will talk about it after the break. revolutionizing an industry can be a tough act to follow,

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>> a lot of volatility in the gold market. now it's down just under 7 bucks in the day.

that's probably been a good thing until the recent change. >> sue, it's very interesting despite what is happening. people havuç been wanting the physical stuff so much. the u.s. meant this week temporarily suspended sales of one tenth ounce gold coins because they're running low due to high demand. >> very flashy and nice. >> people come in at coin shows and finding it hard to get their hands on stul coins. the irs allows you to put them into self-directed accounts. >> there is a pretty big market in the ability to put gold coins into your ira. we are seeing a lot of

companies. a lot of customers saying i would like to own gold and put it in my ira. >> the market has been needing them for iras. and the time period for them to be supplied came up on april 15th. the metals are kept in escrow and some people are investing in mutual funds. according to morning star, here are five of them. wells fargo. trade winds, value opportunity and hardland value and first eagle global.ç >> let's recap some of the other big headlines. the pharmaceutical business spun

off in january by abbott labs. fuelled by surging sales of the treatment for rheumatoid arthritis. and it is down better than 7%. coming up in our crime and punishment segment, defrauding basketball players. that's coming up next. stay with us. more on power.

>> gdp game in below economist expectations. we asked do you think the economy will ever fully recover? 30% say yes. 13% say no and 57% say not for a very long time. let cease see what is coming up on street signs. >> it is game day. yes it is the 2013 cnbc stock drop and it's going to be bigger and better than ever. we have two teams huddled up behind me in the war room. and here we will try and play by the rules today. do a little. as steve is going to be absolutely fantastic. it's all happening 2:00 p.m.

eastern. back to you on power lunch. >> and we will see you then. the founding managing director has been charged with attempting to defraud the national basketball association's player's union. ç >> he fabricated a five-year contract with annual fees of more than $600,000 a year. even forging the signature of the union's lead attorney months

after his death in 2011. hunter ç

>> there will be trading systems that will be set up around it and they will rebound a lot of the gain they had. >> let's take a quick break here. first that cheese burger you ate, you ever wonder how much you need to exercise to work it off? and your favorite soaps on the internet. just a minute as we continue our power run down. ç

>> and red box is going to seek stockholder approval to change its name. any thoughts on the new name? it's evolution from what? i don't get it. >> i'm not a branding expert and you have got coin star and outer

wall. star. wall. you are a star. you hit a wall. you they say it shows that they are exceeding limits but it seems to me that a wall is a limit. >> i wouldn't call it outer wall. i would call it firewall. i have got to build a firewall around my customers to protect them from being stolen from amazon and netflix. at&t is still called american telephone and telegraphs. >> i wonder if theç reference the fact that the key yosks are on the outer walls. >> at least it's not a latin name. >> did you know that it can take two hours of brisk walking to burn off a cheese burger? a new texas christian university said if people knew that information and not just the calorie count it would help people consume less. do we really need to know this, bob?

>> on the surface this sounds absurd, absurd. >> it's only when you put in the exercise needed that people eat less. just don't tell mayor bloomberg. >> they will have treadmills in the bar area. all right. tv soap operas that were killed off have apparently started to come back blossoming again on yes, the internet. 30 minute episodes of all my children and one life to live can be watched on hulu.com and through itunes. is this going to give them a second life? >> i hope so.

to me,ç they were trying to freshen them up. my favorite part about it is that snoop lion will be in the new one life to live and create the new theme song. listen to the classic. >> i don't know. i don't know if vicky will approve of snoop lion. >> i don't know if we can get the right dub beat that he will have behind it. i watched a 48 episode series called h plus. five minutes. i was amazed at the quality. it made a believer out of me of watching tv on the internet. you get a time chip that will attract more people because you don't have to be there when it's actually on. >> you said five minutes. i'm not sure that young viewers will watch 30 minute episodes.

>> people are saying i watched the whole third season of dot dot dot this weekend on netflix or you tube or whatever. it's an amazing change in habits. >> i watched 48 episodes of h plus five minutes over the weekend and they have renewed it. >> i watched a year's worth of power lunch. thanks guys. have a good weekend. >> i watched one and felt like it was aç weekend. >> final check on the markets and the biggest stock market binner today. we will be back in just a quick minute.

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the next big thing? we're going to wake the world up. ♪ and watch, with eyes wide, as it gets to work. ♪ cisco. tomorrow starts here.

r r. >> the broader based market is down today. we have the southbound southbound down almost two and a half points. take a look at the index. the crb is auch two-thirds of a percent.

today's biggest winner? j.c. penney. >> finally some good weather. we have all been waiting a long time. that will do it for today's edition of power lunch. >> street signs begins right now. >> get your game faces on. you are looking at the second annual cnbc stock wrap. google won it all last year. >> is that like me? >> hello and welcome to special edition street signs.ç >> each team drops to one stock per round.