>> ahead of the structuring. >> we're busting a move and today today. >> david z is an original investor in many of the start-ups you know. he is with us live to explain what he sees now coming to

market. >> i owe the security guard a big apology. let's get right to the markets right now. the dow jones industrial average is up 72 points on the trading session. the s&p 500 up 2/3 of a%. the nasdaq is up 27 points and the russel 2000 up half a percent. in japan, another big drop. that is what they have been talking about. the nikkei lost better than 5%. a rebound in europe. the german index and others up. the yield curve. the ten-year note right now is showing a yield of 2.11%. as for the dollar yen trade we're down a little bit on the

u.s. dollar. about a quarter of a percent based on the data we got out. >> look in volume. on the big board, about 300 million shares. that's wispy stuff.

some of the banks trading at new 52 week highs. it is something you have not seen since september 2008. another sector would be utilities. they have been whack this week, whack this month. warn buffet we will end here on computer hardware. increases its share repurchase program. >> josh, thank you very much. we had a lot of auctions this week. breaking news in the bond market right now. the seven year note went off the board. we had a d and c grade this week. what about this one? >> a minus. one of the traders on the floor nailed it.

it was a big convexity on the seven-year. no matter how you slice it, this was a solid auction. 38% go to dealers. the ultimate investor wanted the seven year best of the bunch. back to you. >> all right. thank you very much. a big question, of course. we have been debating this for weeks, really months. when will the fed taper? when will they cut back on stimulus? the bond buys.

>> there are women. more than usual. let's take a look at figuring out what the fed has said. what i put together is a spectrum of comments from key officials that made comments in the past several weeks about tapering. what i will show you is over here, he is really only one hawk. i think charles speaks for a group of people about ending it right now. put him over on the hawk side. he is more aggressive so he thinks it will happen maybe sooner than others believe.

let's go to eric. a more dovish person. he did say it will make sense to consider a modest reduction in the pace of asset purchases. we're going to see that again and again. let's see what bill dudly said. so we're going to look at the guy who probably matters most and what he is saying if we see continued improvement and we have confidence we could in the next few meetings, take a step down in our pace of purchase. let's be clear what we're hearing there. we need a few more months of improvement. let's count it.

may, june, july, no meeting in august. i would expect given what they are saying and the spread of opinions that it would be like a september taper, but remember, sue, a taper is not an end. it would still mean the fed is adding to its balance sheet. >> right now, anyway, stocks have been reboind iing. >> he is the chief investment officer. kenney, i'm going to start with you. we have the back and forth that has been going on and broiling this market all week.

people spend. >> there is a lot of ifs in any of those statements. we're not going to get there in june for sure. one way or the other the market is stuck in this range. i don't really see the market doing anything. it's the end of the month. so you are going to have a lot of action tomorrow afternoon. >> steve, join the conversation if you would. where would you be putting capital to work given some of the uncertainty in volatility we have seen this week? >> you know, we think we are in a cyclical market here.

maybe over 2,000 in the s&p. we may have some dips here in volatility about when the fed is going to start tightening. we're clearly moving added defense into offense. what we have been telling our clients is use that to continue to do that and get more cyclical in your portfolio. >> i know there are a couple. >> we like tech and financial. some of the emerging markets have really been clobbered soon. both down year to date. we think that may be where there is value in the markets.

>> kenney, last word. >> i think steve is exactly right. if you're the long term investor, then you want to take advantage and set the portfolio up for what you think will be the next two or three years. you're looking for volatility and that's how you make your living. >> you have had a good week. thank you, steve, pleasure. ty, up to you. >> defense stocks on the rise today. seeing a more favorable backdrop. lock heed is the maker of the joint strike fighter jet, the c-130 air lifter and air and missile defense systems.

includes a bit of a sell-off when the se -- hit. and then goldman says if things don't get worse, current cash generati generation, the sector could outperform for several years to come. >> a big name in the leisure sector has a great deal for you. has been an original money man. [ kitt ] you know what's impressive?

a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

>> priceline stock moving higher today by almost 2% now. the operator has authorized an additional $1 billion with a sale of seven-year convertible bonds to pay for all of that. >> one of the hottest shops out at silicone valley thanks to investments. and given the firm's healthy stable of start-ups including 90 alone in the last two years, it's little wonder that they made this year's forbes list of the top venture capitalists

including david z. live from -- at the big tech world gathering. take it away, julia. >> thanks so much. really appreciate it. david, thanks so much for talking to us today. you invested in facebook. you were on facebook's board. she -- >> mobile is their number one priority. they are in 80% of the apps. are you disappointed in how it started out? >> i didn't have huge expectations either. i know they were trying to

change the paradigm, and that takes time. >> do you think yahoo! is going to screw it up? >> no. i love the energy that marissa has put in there. for them, tumblr, we have seen monetizations. it's a whole younger demographic. >> speaking of yahoo! do you think they will buy hulu? >> i don't really know. i wish i did. i'm not privy to what's going on in yahoo! or hulu. >> do you have any sense? >> i don't. they have been talking to a number of players. >> you're also on the board of pandora. are you worried about apple launching an alternative? >> we're a top app on apple. itunes is incredibly successful.

i think they are different things. apple, while it has had incredible successes has had a hard time doing things that other people do really well. if you look at ads business, that is not where they are at. they have had things like genius and ping that they had have to back out of. 77% of all streaming radio is on pandora. they need to be innovating and billing out the sales force and tapping into the local market. moving to the web. and you watch pandora go from half a percent of all listening to now over right under 8%, i

don't know whether it's 10, 12, 14, 15% but at some point when they are that large of a player, we can just see that the tail winds will be coming behind them. >> tumblr, what's the next big thing? the next billion dollar acquisition. >> i wish i could guess those all the time. >> those are the bets you're making every day. >> our job is to make enough of them right. the one that i put time and money behind is founders that we have known for a long wft. creative with the problem of creating private social networks for neighborhoods. it has been lost in neighborhoods for the last three or four decades. we are seeing that happen in neighborhoods where friends are helping each other out. finding lost cats. set up a neighborhood watch. all kinds of things. >> very interesting one to

watch. thank you so much for joining us. >> terrific. thank you. >> new details about the death of a private wealth manager that has a texas investment community very, very rattled. psychologic psychological. >> charities are asking questions and we do have new details about a prominent money manager, a member of society died suddenly and left a lot of questions in his wake. we will have the story from austin coming up. trading, i'm so into it,

tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 ...until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-877-994-7694 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today.

some of the most advanced driver systems ever made. stereoscopic vision... distronic plus braking... lane keeping and steering assist... eleven enhanced systems in all. ♪ twelve, counting your adrenaline system. the 2014 e-class. the most intelligent, exhilarating mercedes-benz ever made. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. >> shaken up the investment community in texas. new details now have emerged about his death. and our senior correspondent is life in austin with the latest. scott? >> tyler, this case is mysterious and puzzling, not just because of what happened but also because of 53-year-old, who he was.

he was a wealth manager, as you said, for atlantic trust, which is a unit of the giant financial services company, invesco, who seemed to have everything to live for. a member of high society here. had a 3 million dollar home. just a few weeks ago, introduced his daughter at the international debutante ball in new york. seemed to have everything to live for but then a couple of weeks ago he turns up dead 100 miles outside of boston in an unattended shooting which is one of two things, it was either an accident or he killed himself. now the money questions begin. invesco said we became aware of unusual transactions that he seems to have conducted personally. we advised the authority. we have no reason to believe that client accounts were

accessed. here are some of what may be the unusual transactions. loans, lots of them that we found, that he was taking out from individuals and institutions primarily here in texas. 13 of them in may alone. some of them actually recorded after he died. was this actually done outside of his work at invesco, not involving client funds? some attorneys are sniffing blood here, jake in new york says invesco is not getting out of it that easy. >> the cardinal rule in the business, a firm has to supervise their employees. they have to supervise employees or they have to step up to the plate. >> we have contacted all of the people and institutions, or at least we tried to, that lent money to powell in apparently loans structured as investments.

none of them would comment about. that and then there were charities he was involved with. his term as treasurer as the children's medical center foundation ended, the foundation's president says that there were no foundation funds that were overseen by powell. other charities are saying the same thing. still a lot more questions than answers here. >> i'll take it, scott. i know if anybody can find that out, you sure can. tonight on an all new american greed, phillip scams his close knit neighborhood. investors start looking for answers and their cash when checks start bouncing. >> until now he has been able to keep his scam going for 30 years thanks to word of mouth and good luck. >> one of the reasons he was able to keep it going so long is

one of the reasons why it's so tragic. he didn't steal huge amounts of money at a time but he consistently had people investing in him over a long period of time. >> you can hear phillip berry in his own words use the hash tag american greed chat. up to you. >> banks posting record earnings in the first quarter. we will tell you why the big banks may not be quite as healthy as you would think. plus the power house. we're going to travel to one of america's hottest markets, los angeles, and find out how much house your money buys you there.

[ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. where you stand, turn to us. lets you talk face-to-face and share whatever's on your screen. blackberry z10 with bbm video. built to keep you moving. see it in action at blackberry.com/z10

>> we are looking at gold prices with final trades coming in around 14.11, 1412 an ounce. it is significant psychologically.

we are looking at this move higher that happened. yes we have gotten weak economic data that may be contributing to it. we're also looking at what happened in terms of open interest and potentially short coming that is really accounting for the upside that we're seeing in the gold price. platinum definitely a big gainer in the session. back to you. >> thanks. we're up 74 points on the trading session. we're holding on to the gains. >> the dow right now up another 76. we had the pending home sales miss. a disappointment. mortgage rates rising significantly in the past four weeks. an individual mover would be express. raises 2014 eps.

>> up town for the nasdaq. hi, bertha. >> chips are on fire. the best performing sector at a record high. a lot of it is the halo, i'm calling it. it's got lots of strong orders on smart phones. who is its biggest customer? take a look at apple. . a bit, too.

>> i was just going to say that. that would be a good thing. >> to the bond market now. let's get an update now. over to you. >> thank you very much, sue. that good demand at that seven-year note auction definitely changed the complex a bit. look at the day of 7. 1:00 eastern you can see rates dipping into positive territory, meaning lower than they closed yesterday. open the chart up and you can still clearly see that today's slight reprieve doesn't diminish the fact of about 46 basis points higher than we were at the beginning of the month. it's got a head of steam going today. open it up month to date and we are now starting to challenge those early month highs and the dollar index? it's down 2/3 of a cent and very

little of the action is impacted by the dollar yen, although the yen continues to improve modestly. >> things are not quite as rosy as they appear. american bankers has the details. >> thank you so much. >> you did dig a little deeper in here. on the headline it sounds pretty good. what did you find? >> the problem with these report profits is that banks are getting there by a lot of one-time items. the underlying revenue growth for commercial banks of making

loans. so they can make as many loans as they want. they're not getting a lot of -- they are not getting enough revenue growth from the traditional business of taking deposits and making loans. >> how much of this has to do with the low interest rate scenario. will their margin and their ability to make loans improv, do you think, if indeed come the fall the fed starts to taper a bit? >> it has a lot to do with low interest rates. bankers are saying that once interest rates do start to go up it will still be a long tail before we get to start to see real results in bank earnings. >> is there another factor .

>> as long as non-interest continues to be strong, banks have a little bit of relief from interest. >> you know, the moves that we have seen in some of the financial stocks, some people down on the floor are a little worried and it's fuelled by the headline that we saw yesterday. do you get the sense that the equities are overdone? >> to be honest, i think not enough attention is being paid to the deeper levels beyond the headline numbers. >> pleasure to have you here. come back and spend time with us

soon. >> this is going to free the company now to start returning capital to shareholders. facebook moving higher after the stock was upgraded to outperform. jeffries also upgrading from buy to hold. both citing momentum in its advertising business. big lots taking a big hit. expectations down 10%. tesla continues its crime. it will triple its network of super chargers for electric vehicles by the end of the month. maybe they will do it. >> take a look at the nasdaq shares moving higher today.

just yesterday reporting record trading volume for a single day. the nasdaq shares off by about 2.5%. sue, send it over to you. >> thank you very much. coming up, game changers, technologies that are shaking up the world. today on power lunch, streaming video over the internet. we'll tell you who is winning. plus the power house, my hometown los angeles. find out how much home your money buys. here's a hint. it's not a lot. but the weather's good. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market.

♪ all on thinkorswim. from td ameritrade. ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪ ♪ give me some more of that [ male announcer ] the more connected, athletic, seductive lexus rx. ♪ je t'adore, je t'adore, je t'adore ♪ ♪ ♪ s'il vous plait [ male announcer ] this is the pursuit of perfection. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information

and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. >> coming up on street signs, something very special. it is our show with the most. the most confusing, the most important, the most amazing, the most of everything we could have dug up for you. >> we have got the most amazing stock stories of the year. the most underrated stocks, most

shorted stocks and the most incredible video of the year, we can't tell you. >> it has got something to do with movement. >> i'll tell you what. the most annoying thing on television is when the tall anchor does this. back to you. >> that is really the most annoying ever. back to you guys. >> thanks, mandy. we will see you guys at 2:00 unless brian gets in the way. >> pending home sales edging up rising 3 tenths of a%. from 3.59% last week, a five-year low in the first quarter. ty, over to you. >> let's go to the power house. it's that time of the week and this time we're going to take you out to los angeles. we have had miami, chicago, and boston.

time to go to california. a developer with prudential. let's look at some of the market stats. the median sales price is $975,000. i guess that's the asking price because the median sold price, the closing price is about $765,000 in los angeles. 1500 active listings. two months of inventory. the house stays on the market for about 41 days, about six weeks. welcome and greg, let's go first to 5657 stole drive in la. listing for a shade under 400 grand. two beds, one bath. a tiny place. 1,000 square feet. why do you like it? >> it's a great little neighborhood. it's an impeccable starter home. the investor started it up. something everyone could fall in love with. it feeds an opportunity to be at ease. >> what's the neighborhood that

it's in? locate me a little bit. >> this particular section of los angeles is called high land park. it's a little gem. kind of a hipster, always up and coming. constantly written up. it's right off of a train system which is really unique. >> it's a very clean looking place on the interior there. very nice. obviously just redone. let's move up a little bit in the heart and soul of hollywood. listing for $795,000. almost 2,000 square feet. what about this one? >> this is just historic old wonderful hollywood. right behind the capital records building right in the heart of everything you can walk to. it has such character. that's one of the tings that is really unique.

>> beautiful windows. it looks like a craftsman, a little bit. >> it is. absolutely a craftsman. >> this must have been redone recently, i take it. >> it has not been done. it has just been really well maintained throughout the years. >> about 795,000 for that right in the heart of hollywood. she is out there. >> if she is out, you know what i mean? power house of the week. it's located in loss vegas. maybe it's -- i don't know. famous for architecture. it's not huge, two beds two baths but about 2,000 square feet. why is this one priced so much higher than the one we just saw which had roughly the same space and one more bath or bed. >> it happens to be an

impeccable mid century modern which is really the rage right now. it's been impeccably -- taken two years to restore this home and give it every quality feature that is imaginable. >> i know you won't mind. i will invite sue to jump in here. sue knows la in a way that i don't. >> i grew up in la. all of this is making me very home sick. i guess my question is the amount of time that these homes are on the market, 41 days, seems short to me given what we just went through with the housing prices. how much pricing power do the sellers have? are you seeing bidding wars for some of these properties? or multiple offers on the properties? >> absolutely. and those stats that you were given were la as a whole.

in the closer picture, where these properties are located, almost everything is going in multiple offers often within a week to two weeks in escrow, under contract and sold in 30 to 45 days. that is more the norm here. we are so low on inventory that sellers are excited and buyers are enthused. it is creating excitement everywhere. >> good to hear that, greg. thank you very much, sue. it whets your appetite to go out there in southern california. >> it make ms me home sick. but i could not leave ty. coming up, game changers. technology is shaking up the world. today entertainment on demand. the growth, the opportunities, and the companies leading the way coming up next. the former star telecom analyst fallen from grace. he is making his first appearance in a live exclusive

on cnbc squawk box tomorrow morning. sharing his thoughts on the industry and the dish sprint deal and much more. we're back in 2. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. are proven to be effective pain relievers. tylenol works by blocking pain signals to your brain. bayer advanced aspirin blocks pain at the site.

try the power of bayer advanced aspirin. try the power lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving. see it in action at blackberry.com/z10

>> part two of our special

series called game changers. so we spoke with citi's top analyst about the growth potential and other companies leading the way. >> consumers can get streaming video over the web. there has been an explosive amount of growth over the past several years. the main potential that we could see over the next five to ten years is over the top content begins to cannibalize the existing eco-system where investors are very focused. there are many households that spend $75 a month for their paid tv subscription. where we sit right now, net flix is the largest. they have just under about 30 million subs.

there is potential for over the top equo system to cannibalize the entire uncouple bant which makes up the likes of the existing offers. >> the thing to really watch is if we see the substitution effect grow. we could see far more rapid growth. long term play in the space is directv. it has more to do with the company lowering its costs to deliver their video content to consumers over the internet as opposed to using existing satellite structure that they use today. >> coming up tomorrow, personalized medicine.

that tops sprint's $3.40 offer. >> breaking news on a chinese citizen who has apparently pled guilty to attempting to export sensitive material. press release issued a few minutes ago. a citizen of china pled guilty to violating the international emergency economic powers act by attempting to export weapons grade carbon fiber from the united states to china.

attempting to close a deal to export expired materials. according to the release here that we have just gotten, this apparently was an elaborate investigation by federal authorities, including federal agencies tasked with protecting sensitive technology, maintaining a covert cyber presence. so what it looks like here is we had a sting for authorities looking to export sensitive technologies and that's what caught him here in this dragnet. >> thank you very much. ty? back to you. >> all right, sue, thank you very much folks. first up the amount of harvard grads heading to work on wall street jumping up from 9% in

2012. 1 21% of the students surveyed will earn more than $110,000 to start. is wall street the most lucrative place to start? >> look, if you can be a computer programmer or software engineer, go do that. otherwise, go to wall street. just do it for a couple of years. >> take princeton, for example. that number so even though they might see a slight up tick from last year it's still down sharply. >> we're nowhere near the point

where wall street is literally a brain drain on the rest of the country. it's a little scary. >> let's move on to the yahoo! finance pole. are you more inclined to buy a product if it's made in america? 68% say yes and 10% say no. some countries make better products so i go there. what do you think? >> i think it's a little bis deceptive. the processing parts come from taiwan and other parts will come from korea as well. it's a positive development but it's a slow and steady process. a lot of these are single product development. ford bringing the ford fusion sedan back to mexico.

>> say it's -- i'm more happy about the way workers are treated in america than they are in a lot of other countries around the world. but i think this is great and we will see a lot more of it with cheap energy available domestically. we will see a huge come back. this is just the tip of the iceberg. >> officials have allegedly stolen, shocking, up to 30 billion dollars from funds intended for preparations. this -- i am not shocked by this. i think the whole system over there is so rif with corruption. >> nobody should be shocked by this news. we knew going into this, having the olympics in russia was going to mean that a lot of the money got directed to politically directed people.

>> we're going to give you the biggest stock liners today. 85 points on the douw. [ female announcer ] there's one thing

dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients

to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] >> all right. take a look at the market boards we have added on to our advances with the dow up 85 points. >> bank of america up almost 3%.

>> the. >> how about the most overrated stocks? the most amazing wearable technology that you can buy right now and the most incredible video of the year in which we will introduce you to the most ridiculous form of exercise you have ever seen, i promise. >> ever. okay. we're going to save the best for last.