>> power lunch starts right now. >> halftime is over. power lunch and the second half of the trading day starts right now. >> the top five inflows, fun flows over the past 14 days as in this is where the money is going is into bond etfs. warren buffet called bonds a bad investment. that's where the money seems to

be going. look at it there. there you see what's going on in the other column, here's what's out. gold is out. money moving out of there. and more aggressive form of the 2,000. moving out of there. the dough stocks. the spider trust. moving out of there and utilities also losing money. sue? >> well, we also have some dualing quotes adding to the debate over the big question, what should investors do with their money right now? >> nyc trader think about that. ben, i'm going to start with you. which quote resonates more with

you. mr. cooperman or mr. ravini. >> i have to believe right now that the equity markets are somewhat fully invested. but if you're looking for bubbles you want to look for the u.s. treasury market. we have gone that is not a healthy market. >> it's not a traditional rally. it's not really being fuelled by a multiple expansion. it's not even being dramatic by an earnings expansion. apparently good enough for the market. this is liquidity driven for the rally. everybody hates it.

and the stock market is where the get it. that makes sense for me. >> it's not exclusive to the big board stocks, either. >> absolutely. again it's that rotation of capital. into cyclical stocks. just to add on to what bob was saying it's not a full risk on rally. offer consistent sustainable growth. those are the stocks that are getting a bit. >> the ten-year note is up. rick is tracking the demand.

>> where do these 24 billionth in price? 1.481. so the minimum, the basis points probably more like a quarter extra given the middle of the spread. the indirects were just shy of 34% and we were a little light on directs at 16.9 versus the average of 24. the long and short of it is dealers took 49.2% of the d plus auction on the auction. >> all right. >> i think both ben and bob set it up.

>> i wanted to get his take on the market. and brian's point is he doesn't see the market crashing from these levels. he also doesn't see it surging. he is looking for a flat range bound market. his point being listen, the economic. there are a lot who still respect the seasonals. >> ben, the thing that worries me a little bit is that we have had a big percentage move in the s&p 500 and dow jones industrial average. we're only at may. do you agree with belski? does it have to occur this year?

>> i knew him way back win. >> me, too. >> we go back a long way. again, i don't want to be viewed as a bear. and now they are changing the rider on the bull and now it's the financials and the basic materials. >> he has only had two down days since april 18. >> it is rashable.

>> 70% of the stocks are up 10% or more. >> up to you. >> thanks very much. whole footds moving higher. sales have rebounded as it expands efforts to lower prices and reach beyond its core of upscale shoppers. >> mcdonald's april sales faced tougher times in europe. >> rival wendys is the second

biggest burger chain behind mcdonalds and that posted slightly lower but raised full year profit forecasts. shares down 3 cents at 5.80. that's a five% slide on today's trade. >> i do want to focus on the future. you had same store sales growth of company owned restaurants of about 1 wers in the first quarter. and yet you were forecasting for the remainder of the year 2 to 3% sale s growth in the company owned locations. >> sure. we have very exciting marketing

messages coming up that we really believe will resonate very strongly with consumers your net gain among company owned stores is roughly the same. why are the franchised operations closing? so many more? >> in the last year and a half, we have been more liberal with allowing restaurants to close. that's so our franchisees can re-invest heavily in our image to reinvigorate the physical assets.

>> we really feel. >> with the likes of mcdonald's and burger king and chipotle. >> have a tendcy to increase our

average check. we feel that is a far more productive way to get it into the system as opposed to purely price increase. when you look at the consumer base out there, certainly it's a challenging economic environment. any time you have 49 million people in the united states on food stamps, that has to tell you something. remember, this is a very, very very large marketplace. and there has always been an opportuni opportunity. even in the heart of herself and profits. we really believe that we can be both brands. >> today coca-cola announced that it will become very aggressive with respect to its sort of healthier drinks approach. and obviously food has become a controversial topic. how do you react to what coca-cola announced today with respect to its marketing?

making sure that no or very low calorie drinks are available everywhere? how do you respond to what coke did and what are you doing? >> coca-cola has been a fantastic partner of ours for a long time. we were well aware of this approach to the business and we admire it and believe that we can compliment that. we are putting in free style beverage machines from coca-cola that allow 100 plus options for consumers and many of the options are sue garless options. really when you do that .

>> the shorts certainly think so. the shorts are going to take knit the short. we'll take a look at the numbers behind tesla and whether or not this stock can go any higher in just a little bit. >> we're going to take a look at the real estate site, zillow. profitability would be hurt as it increases its advertising. down 9 2/3%. we're back in two. farmers presents: 15 seconds of smart.

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>> forecasting significant growth in demand for data. two names he says, level 3 will be a con sol day tore. and twtc you can see that is up 4%. sue, on that one. >> thanks a million. appreciate it. >> toyota is driving forward in today's trading session.

that improvement is due to cost cuts, sales, and a weaker japanese yen. electric car maker tesla reporting numbers after the bell today. the company already announcing that it expects to turn a profit but investors want to know if it's keeping costs down. >> take a look at those charts again. when you look at tesla shares, there is also a lot of short interest. 42% of tesla sales available were sold short. tesla is among the most shorted stocks not just in the auto

industry but in the market as a whole. this week two analysts raised their price target to above $65 and one of them wrote is the bear case weakening when it comes to tesla shares. she writes the bear case is writen from an unknown company. instead over the past year, tesla has hit its production one by one, necking out each leg of the bear case. we bring this up because after the bell today, tesla will be reporting its first quarter earnings. by the way, this will be december la's.

>> that's right. it's the perfect storm. but in a good way. mortgage applications head higher as mortgage rates head lower. applications to refinance up 8% week to week. while that second one seems a little low, they are up nearly 12%. i asked paul miller about how that could be and he said it's still all about the fed pumpingly kidty sbroo the system. what you sigh is some of the liquidity going into the bond market. and another thing of course, no

easing at all on middle or lower credit worthy borrowers. lots more online. sue. >> thanks, diana, very much. coming up next, the mi das list. who they are and what they are investing in. plus, the power pitch. >> coming up, power pitch. start-ups give us their 60 second pitch. >> i'm katherine, the founder and ceo of the news.com. >> and we give you insight into the fast pace of venture capital. >> how do you differentiate the news. >> what's to keep linked in from doing the same thing you do. >> do these founders have what it takes? stay tuned to find out. [ male announcer ] you are a business pro.

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>> all right. a lot of action just at the close in the gold market. we had a big move in the gold market. about a $10 move. which we are covering of course. apparently there was some buller meants made. the weaker dollar and physical demand obviously a factor.

with silver now up about half a percent. and now, here is the power pitch. entrepreneurs get one minute, just 60 seconds to make their pitch. we're trying to give you an inside look into the dynamic world of start ups. she was named. 15 women to watch. in tech, here is her power pitch. >> the founder and ceo of the

muse.com and we help people answer the question what do i want to do with my life. few of us are born knowing the answer but existing career products work best if you know what you're looking for. talking about what it's like to work there. and we have 350 career experts who produce content that draw a massive audience. we helped over we grew 20% month over month and we signed up over 100 hiring advertisers. you can find us at themus.com. >> katherine is on the right

side of your screen. she cannot react to us just yet. your panel today is cnbc media reporter and president and ceo of -- and on the board of directors for adobe. it's interesting. you get to see pictures of the offices and interviews but it is such a crowded space, job search online. >> it's a crowded space where the leader is linked in. so my question to her would really be what distinguishes them and what's to keep linked in from doing something similar. >> absolutely. and what happens when employees put comments on some other sites. katherine, welcome. you heard son-in-law of our

concerns. we all focused on the same thing, which is it's a good looking site and company but it's in an exceptionally crowded space. i am sure you have heard these before but how do you differentiate the news. >> if you're still making the decision of marketing or business development or big or small, linked in is not necessarily going to help you there. that's where we show our strength. >> what's to keep linked in from doing the same thing that you do? >> we really think that social cultural fit, that's in our dna. we also employ predictive algorithms to surface companies that will be the most relevant for each individual. >> what did you think was missing? >> this was born out of an absolute personal pain point. i knew i wanted to do something different but not sure what. i spent probably six months

about a half an hour a day on linked in, monster and company websites and all of these different sites. if you know what you want, they're great but i wasn't sure exactly what i was looking for. it was really meeting people face to face that made the difference. >> who sells that? how do you get a company to pay six grand, ten grand, 30 grand to post? who sells that service? >> i do a good deal of it. we also have other people on the team who do. a lot of companies come to us. they look at the product and they say i want to be on there because they believe, rightly so, that they're going to find the right people by communicating bha makes them distinctive and special in the market. >> we heard what katherine had to say talking about her own company but it is decision time. >> i do think there is big potential here. i think there is demand for more

context and personal information. i think there is room for the muse to grow and be a compliment. it is on a smaller scale, i'm in. >> dan? >> the traction on this company hit in a very short period of time has been quite high and it's much more in the pinterest kind of environment where people can search and explore and discover. and students coming out and not being sure what they want to do, i find myself in. >> so many of these job search sites are push. in other words, you psubmit to you and they come to you. there is a lot of that type of e-mail to you versus pull which is the muse. people skrcrolling around and looking for themselves so they are going for the information rather than the information being dumped on them. you have an interesting background so there is base of a balance sheet, which is perhaps rare in the internet space.

so on that basis, i am in, also on themuse.com. what are you going to say. you got three ins. >> i'm thrilled to hear it and very much, you know, i think we're going to prove you right. >> thank you. and actual all for watching the power pitch. >> what do you think? are you in or out on the muse? >> i told you earlier speaking today at the sony investor conference. he says listen, expectations are very low. he says balance sheet problems have been solved.

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>> welcome back. we had an auction that didn't go particularly well from a demand standpoint. we have a higher low yield and a higher high yield. like a dollar yen since april.

can't breakthrough 100. last chart, hygetf. >> thank you very much. we will talk about a bull ren. >> the next three, up 57%. it seems everywhere you turn you hear about the great rotation. the dough going for another record. can the market still move higher from these levels? you have been bullish for some time now and you have been correct. but you disagree with the rotation argument that is out there? >> i think it's out there.

here is what i did this morning. the investment company institute does not show it. i talked to a couple of hedge fund guys. profits are the mother's milk of stocks. profit profits that's and the fact that there is no end of the world scenario. and these companies are managing themselves beautifully. >> the problem that everybody has is it's not really conventional. you're not getting a multiple expansion.

if you look what's going on here, you have massive injection, a hunt for yield and the only thing surfacing. you have got a squeeze going on in stocks. >> you have got to admit that i will kidty is really a major factor. they are becoming yield stocks. these firms and the other good things that they are doing are very attractive. and they're global companies but the has done better than people think. the take a look at the release

yesterday. we're going to be under a trillion for the first time in four or five years. >> no debt crisis looming large? >> another last minute crisis is not going to happen. we are not going to hit that there is not going be pins and needles. you look at all of this stuff. budget cuts. we're supposed to lose all of these scenarios are not coming through. >> how much is left in the market? we have had a really good year

so far. that's the irony of it. how much more can we go, do you think? >> i'm dying for a pull back. i know all the professionals are dying for a pull back. a lot of people can buy. my guess is you have got 20% left but i'm not going to give you the timing. based on my valuations of profits relative to interest rates, okay, and multiples, i think you have got a ways to go yet. investors are lightening their cash position. move out of cash. no yield. >> i love revenue growth but i got to tell you, earnings, profits, the mother's milk of stocks.

>> all right. i have to save time to pro molarry's show because if you didn't know it and you have been living under a rock, the nhl hockey play off season has been playing off on cnbc. larry has been in the penalty box. but he returns this friday. the kudlow report, 7:00 p.m. eastern time. don't miss it. >> thank you. appreciate it. back to you. >> all right. moving higher after warren buffet, it's largest investor, doubled his stake in the. operator:or of dialysis clinic. >> the maker of anti-virus software lost ground after it forecast results below estimates. who are they? where are they putting their

money? we'll have it on "power lunch" first. and why this could hinge on a small firm that is virtually unknown, even on wall street. we'll explain. [ male announcer ] at charles schwab, we've committed to setting the bar high

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made a retirement plan, they considered all her assets, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. >> and remember getting up to the internet. believe it or not, aol is still mostly coming from a dial up platform. we have the ceo on our show. those things coming up on street

signs. >> all right. thank you. today's yahoo! finance. >> 20% say i'm less sure. 14% say i'm taking money off the table. and 32% say i'm on the side. does that add to r up to 1000? i'm not sure. you do the math. >> the money men and women behind the hottest start ups. power lunch exclusive. >> nice to have you here. every industry we were just talking about has its lists. if you manage to make the mi das list, it's quite an exceptional

thing. >> and there is only the few that matter. there is an asset class that is awful for the bulk of the people. it's our 12th annual last. >> the other thing is you can hit one year and you're good for a while. but, if you don't come up with that next big thing, you drop off in silicone fairly quickly. >> based on the strength of google and yahoo! before that and amazon before that. we look at five years. if you were doing well five years ago and running on fumes since then, you will fall. we have seen that. the people at the top are all the facebook people. >> he says it makes his focus sharper. we will see this gentleman we know well here on power lunch. he has made the list, the top

position three years in a row. >> facebook was just such an order of magnitude bigger. five out of the top 11 are all facebook investors. approximate enl hurricane m approximate pep five buzz doug.

>> it's betting on people. you don't know what they will do. these are around for years and years. it's great that we have partners that worked on a list with us. they know how the deals are scoped and shaped and who is really involved and who is not. we look carefully once the data comes in. >> i have to give a shout out. >> making big bold bets like artists. giving poplar art has become an alternative investment.

pulled in 230 million dollars last night. >> it wasn't that long ago that 40 million dollars painting would be big news. but now it's just a warm-up. kicked off the spring auction season with impressionist sale. expected to take in more than 1 billion dollars over the neck week topping next week with a contemporary sale. the impressionists can still bring in the green. >> breaking news. >> that was the 40 some million. the apples, scott cohen? >> tiler, cnbc has learned that former enron ceo could be out of prison in 2017, roughly ten years early under an agreement that has just been presented to a federal judge. the same judge that tried his case back in 2006. remember that skilling, the ceo of enron for about six months resigned before the company went

into spectacular bankruptcy. was sentenced to 24 years in prison. under this proposed agreement, his sentence would be reduced to about ten years. he would give up all of his rights to appeal the case. and perhaps most importantly for victims of the enron collapse, some $40 million in restitution that he his 19 criminal convictions would stand and get out of prison around 63 years old instead of 74 years old. no comment yet from the justice depart are you surprised?

it also sort of gets him some of his life back. we will go back to sort of the history of all of this. a federal appeals court back in 2009 had ruled that the there has been a lot of lawyering and that means that it goes away. he gets some of his life back. >> the same judge who tried the

case in houston now, he has been active active actively just a short time ago this afternoon so he will be on board. but, the victims will also have a chance to weigh in here. they already, as we said when we broke this, the story of the negotiations back in april, the victims were going to be given a chance to respond to the proposed agreement. now we have a chance to weigh in and potentially appear in court. jeff skilling may be back in front of the judge who sentenced him. his first public appearance since 2006. but one step closer now to freedom which will come around 2017. >> thank you very much. now for a quick market flash. >> tiler, bill akman of per

shing square. here is what he says. it's one of the best businesses in the world as it deals with important parts of your body that you care about like your face and baby's bottom. he goes on to say that he thinks it's well positioned. proctor and gamble in a town he calls first class. >> thank you very much. >> you were talking about art. we're going to come back and talk more about the art auction. >> a lot more wall power coming up. >> fantastic. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason

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>> and the spring auction season underway. and a very big sale last night. showed the old impressionists could still bring in the green. far mar than the $35 million estimate. about the middle of yesterday. not everything did quite as well. about ten pieces did not sell for their minimums.

that came in about $5 million under target. >> i guess the top buyers are being very, very choosy these days. >> i saw the news this morning and i was shocked. oh, he's a fighter alright.

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>> markets up about 12 points on the trading session. a little bit more confirmation. all in all, generally, a trending higher market today. >> that will do it for this edition of power lunch. >> street signs begins right now. have a great afternoon.