here. >> follow me on twitter. may is going to be in the books and it's been a good one. power starts now. >> halftime is over. power lunch and the second half of the trading day start right now. >> a big report today on social security and medicare. how sustainable are they? we will dig in on that one. is tesla's electric car model truly viable? we're going to talk about the december la. and web this guy? it was some of the most dramatic video we ever shot here.

the disgraced telecom analysts. the target dates for bankruptcy have changed. the basic message is we're going bankrupt, just slightly more slowly. >> that's good news as far as it goes in washington. take a look at some of the findings here. social security has sufficient funds to cover benefits until 2033 could finance about three quarters of the benefits all the way through 2087 and that's good

news as far as it is in town. now that's actually two years later than they projected last year. now secretary of treasury jack liu was a little cautiously optimistic. >> social security and medicare are meeting their commitments today and will continue to meet in the years ahead. these programs face long term challenges. >> things are pretty good for now. the question is will that undermine momentum to do anything to solve problems? >> all right. thank you very much. another big story impacting

investors and everyone else today and that is the american society of clinical oncology holding the key yearly meeting. we are reporting now on one company that hopes to hit a home run with its blood cancer treatment. >> one oncologist told me you will know that you have won the war on cancer when there are only three people at the meeting. but there are a lot more new names getting into the cancer research market. the company presenting early stage data on a blood cancer treatment. its combination drug rej min achieved a high cure rate. the hepc news has been the

driver. the companies into cancer research could be the next big catalyst for the stock long term. their next goal is to become a major league cancer company. there is just not a lot of stock for that. might be worth keeping your eye on it. >> more of the other big names to watch. >> all right. thank you very much. a dispute has erupted within the food and drug administration over the safety of popular blood pressure drugs. the drugs taken by millions of people may be linked to higher rates of cancer.

according to a senior regulator at the fda, but his boss have called his complaints a diversion. some of the drugs in question include diovan, and bristol myers evapro this is him being chased by mike about a decade ago. later getting caught sending a now infamous e-mail today he was back on squawk box saying nothing has really changed on wall street. kay lajoins us now with more on what he is up to and what he is

saying today. >> i could tell you for a fact that back then if you were pitching for an ipo, yes, the analyst and the bankers would come into the same meeting and bankers would talk about the firm and distribution and all of that and we would talk about all of our investment thesis. now there are two meetings instead of one. the advisory and brokerage sides with strict policies in place to avoid indiscretions.

the human errors are incurable. >> here we are, you know, 12 years later after the grand settlement. maybe a question to ask is has anything changed? i would argue not really. i would say maybe change in form but not kbans. >> it's a dark view of the street but grubman is unapologetic saying he never did anything wrong and that he was targeted baz f of his spotless track record. >> has wall street changed and are the marks free and fair? curt, i see a bullets of finalists. an author of four books including the welcome to power lunch. it's great to have you here. >> thanks for having me. >> do you think wall street has

changed? and truthfully it never will. when you have a single business where there is trillions of dollars running through virtually every day, and you have people who if they just, you know, play the game a little bit, if they just cut a corner here or there, they can make millions. you will always have that scenario. >> i don't think that's the perception that a lot of people have. look at jp morgan when they found all the types of stuff that were going on there. that had huge implications for that bank. we're told that the checking and supervision is rigorous. surely some things have changed. >> the question comes down to whether or not the rules of the game have changed. the question is is the game still being played? one of the things i come to this

is when i originally started writing about corporate fraud was back in 1988. i kept going for 20 years and i am still going in the end, what you have got is different ways of cheating emerge. different ways of making money when, you know, it's there to be made. one of the things about wall street is if you say know, you don't get your million dollars. if you say yes, you do. people are going to keep saying yes that deal is going work. yes that stock is going to come up. >> the reaction here today was astonishment. why have you got this guy on the television in i will take the analysis from you. thank you for your time. the last day of trading here on

main. the bond market has swooned. that's real important for a lot of people watching these markets. they request whether this is the beginning of the great rotation. kenney is here director of securities. jim, let me kick off with you. how precarious do you believe we are now positioned with a move that we have had in bonds? with the employment report coming to next week. the bond market could really sell off and the yields would spike significantly higher. >> i still, in absence of that, we haven't seen that number yet. the fed told us this week that we're not as close as the market is telling us.

to call it a great rotation is getting ahead of ourselves. there is a slight notion that the fed may taper. but another thing that is pushing bond prices lower is we see what is happening with japan and we think maybe central banks can't compress rates as well as we previously thought that they could. i don't think it's any big sort of huge thing to worry about. i'll take 2.5 and lock it in for the long term? >> i have to tell you something, i don't think it's the end of

the great rotation. the market is a discounting mechanism so it is looking beyond that. it will be at least august or september before that -- you may see some sofbing in defenses. >> very quickly. >> utilities have been demolishes and now that yield doesn't look as good compared to the 2.17. >> thank you for your time. i know you have probably got somewhere to fly off to in a private plane. this is a tense time on the

atlantic and gulf coast, of course. we are live in louisiana where he is just off from a chevron platform. >> starts to get almost kind of lonely out here. we are used to all of these guys being here. we live with them day in and day out. when they leave it's almost like a part of us leaves with them. then we get down to our skeleton crew and we are never at our skeleton crew unless there is a storm coming. we just try to keep informed. wives and kids wanting to know where we're at. that starts to get a little bit -- some of the newer guys

that have not been through too many storm seasons, we mentor them and bring them along with us. in they don't see us getting scared or whatever, they tend to not want to show it either. once we leave here you got to stay in touch. we will be coming right back as soon as the storm passes. >> that is david bond working out in the oil rigs for 33 years and says he would not trade the lifestyle for anything. they are worried about their homes and second home off shore. the whole issue of coming back, that is one of the more complicated things.

that's where a lot of variables can come in. a lot of lessons under their bolts and they are hoping for the best. >> want to see a beautiful car? it is a tesla. i am going to drive it in just a moment and i will give you my review and we will talk about how sustainable the car is.

>> i got to come outside and drive this beautiful car. but can the car pass the tyler test? we're going to take it for a spin now. i'm going to buckle up and you come ride with me. i will tell you one of the things that is very, very interesting. excluz my french here. this car knows my ass. when i sat in the seat it knew i was here and it started up. let's go for a ride now. it's pretty much like the interior of a regular car. away i go.

where is it competing in terms of that? in terms of that? >> it is an upscale luxury sedan. people immediately think it's an electric vehicle. it's also an upscale luxury sedan so therefore it's competing against the bmws and mercedes of the world. >> phil, do you think it's sustainable? >> you have driven this car -- go ahead and tell him. >> sit a very quiet car but i just goosed it a little and it

has pick-up equal to or superior to any conventional car that i have driven recently. >> it's probably superior. that's what surprises people when they first drive the model s and really it surprises people when they drive any electric vehicle. >> i got face distortion there, guys. >> there is not a huge number of these cars around. are we watching the beginning of a massive new industry led by them or is this something we will look back on now in five years and say it so easily could have worked? >> it is sustainable. you have the model s, which is a niche market.

the question is on that lower end when you're talking $35,000, how many electric vehicles can be sold down there? honda came out and said they are cutting the price of leasing a fit ev by one third, dropping it down for a monthly lease of under $200. that's to insecent people to sa let's rent an electric vehicle. can you get people in the mass market to really embrace electric vehicles? >> let me in. the gentleman at security is sound asleep. absolutely sound asleep. >> i thought it was going to be do you know who i am. there you go. oh wow. >> that's our crack security. this car will go for about 300

miles on a charge, right fill? it takes about an hour to super charge it at one of the eight charges stations around the country. it takes longer if you charge it at home, right? do you want the quick charge that you can get three hours worth of driving in 20 minutes. that's the plan by the end of the summer when you go for a quick charge. >> i love this car. this is really nice. it gets an a plus from me. would i have the discipline to charge it every night? i'm sure i would. you can't believe how big the video screen is in the monitor.

it's as big as what you would have on a desktop. it's the size basically of two ipads. it's web enabled so you can look at things. there is my friend tom. he would like this car. i'm going to come back around. fill, thank you for your help. we have more of the power lunch coming right up. >> to be honest with you, once you have done the written test you will probably get the license as well. well done. >> uncertainty over the fed's next move. we will tell you all about that next on the list. and a twitter revolution in iran. what the state department is allowing american companies to do in the islamic republic. cuse.

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>> welcome back to power lunch, take a look at shares of mo nsa nto selling off today. genetically modified wheat found its way into a wheat in oregon. shares on thursday as its ten-day moving average below its

30 day average. i have spoken several analysts. it may not change long term analysts. >> thank you very much for that. allowing mobile companies to sell mobile phones in homes of empowering them to speak out against their governments. starting what i guess you would call a twitter revolution. this new announcement means that companies can sell a host of communications products to citizens without first getting special permission from the u.s. government. laptops, tablets, disk drives,

and data storage. encryption software. the most important impact comes in the form of software downloads. they were using older slower versions of products. senior u.s. official told reporter that the general license will empower at a time when the government is intensifying the efforts to stifle access to one another. >> united against nuclear iran.

>> the regime controls all of the technology in all the networks four years ago you saw people trying to organize and protest. find out where they were. tracked them down, arrested them and killed them. i think that is exactly what they planned this time, too. >> would you say that the government shouldn't do this? >> i think they should do more. i think the u.s. should do more. >> it might be a helpful thing but i don't think it will make a big difference. >> what should be done instead? >> selling and tracking equipment and in some cases

giving the regime data on the protesters. >> we should point out that this new treasury rule expressly prohibits selling anything to the iranian government. >> let's get back to the markets and check on gold. >> gold prices closing below 1400 dollars an ounce. >> that will be the second weekly gain that we have seen for gold. we continue to watch what's happening in the other metals. and we're continuing to watch as well.

>> let's check the action down here. tripping digit moves? really flat going into the weekend. >> triple digit range. all the economic data failing to excite the market. modest gains that we are looking at right now in the global economy. some worry also about the chinese bmi number that we will get after the close.

names like pfizer, coca-cola, johnson & johnson and walmart. it's the last day of the month. really strong may. so much for sell in may and go away. strongest start to the year since 1995. i do want to caution some heavy volume that we could see into the close today. take a look at the msci. we're going to watch out for some heavy volume. we want to keep our eye on as we go into the close. >> thank you very much. let's slice it another way. >> simon, let's start with

apple. we also have two biotech. plasma deraved protein therapeutics. we have for focused on cancer drugs focused at the top end of its range. up better than 40%. take a look at the nasdaq. so far back to you, simon. >> thank you very much. seema and apple.

>> a different story for pallo alto networks. its cash flow also came in below what people were hoping for. after reporting better than expected fourth quarter earnings on the back of strong sales of its image sensors to smart phone makers in china. as long as the golden gate bridge is set to make the fly by this afternoon just missing earth. we're tracking it. plus the uncertainty over the fed's plan to ease qe, causing a lot of volatility in the markets. wait until you hear about how it is hurting the mortgage business. ouncer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground.

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>> welcome back to "power lunch." ten-year note yields moving back into the teens. this looks to be the highest yield close going back to a year ago. april, no real surprise there.

it was the chicago number that really put the selling pressure and the yields up. when it comes to junk or investment grade, we all know the story. it has gotten its clock cleaned. when you look at the hyg, the etf, you look at the investment grade barclays spread index you can see they all look fairly similar. you're going to see a whole lot more of is many of the total return bond funds out there reached for much of the high yield paper to try to enhance the returns. tylor, it's all yours? >> have a great weekend. when do they taper on the paper?

that's the big question here. uncertainty of when and how and they're going to do. not just in bonds. but in the mortgage market, steve here with more. hi, steve. >> it's an interesting story. that positioning driving up rates to home loans for consumers. they had their two things have happened. mortgage rates have gone up more than treasuries.

you can see that when you look specifically at the difference between the yield on the ten-year and the rate on mortgage backed securities. it's as high as its been since september 2012, around the time the fed began pricing -- the market began pricing in the third round of easing from the federal reserve. what could the fed do other than signal we're going to continue buying bonds and mortgages. >> i it could be clear as to when and why it would cut -- do the tapering. i think there is a lot of confusion about what substantial improvement means. that's very unclear. not as clear as the one for interest rates which is 6.5%.

>> do they do and taper mortgages and treasuries together? what you see here in the charts is the positioning of some mortgage investing. this is a taper. similar in shape to a pig it has a fleshy -- >> wouldn't you say. >> they live in the jungle. and forest regions in south america. look at that. that taper is quicker than bernanke. that thing can move. >> but equally unpredictable. >> look at that. there is a baby taper. >> the other question of the week is will the chinese buy that form of a pig? after the foods acquisition earlier this week.

>> oh! very good. >> all right. steve, have a great weekend. >> simon, tapering? >> i think a natural history program that can score you both. if i see you at the zoo. shares of dell -- shares of dell. let's have a look at shares of dell and see where we are at the moment. saying the bid was superior to all others. they say in conjunction with michael dell is not going to be able to cast his votes. and brian marshall is suggesting that if it doesn't go through next week the stock could fall

by about 10%. >> it's our last day and there is nowhere i would rather be but with you. but will my house be in good hands? we will talk about insurance and acts of god after the break.

>> krispy kreme reporting better than expected quarterlies on improved sales. as a result it raised its full year forecast. the stock is up about 87% year to date. simon? >> wow. in today's yahoo! finance poll we asked you if jack grubman who was banned and disgraced when he says wall street has not changed as all, what do you think. 2% say it's a change for the better. 7% say i think thing are a little more fair now but 91% say wall street is still an insiders game.

jane wells is in los angeles with some advice for those who think that it may be too close for comfort. how close will it come, jane? >> oh, not that close, but close in galactic terms. if it's not one thing it's another. but anyone who has gone to the movies knows that the government is totally on top of the situation. >> what is this thing? >> it's the size of texas. >> what kind of damage? >> total, sir. >> my god. >> the united states government just asked us to save the world.

that's about 15 doesn't this fall under act of god? >> it does not appear in a standard home or auto insurance policies. it lists disasters that are covered and disasters that are not. >> your car, unless you get optional comprehensive coverage. maybe in your car is parked in the garage when the asteroid hits. >> thank you, jane. it's good to know that you have got all the bases covered as ever. live from the west coast. ahead on the show, game changers. technology shaking up the show. today we look at person alized

medicine. the growth, opportunities, and companies that are leading the charge. plus america's top states for business. we will break them down for you on cnbc. 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. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure.

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>> part three of our special

series on our power lunch. today you look at personalized medicine. the cost of sequencing dna has plunge plung plunged to less than $10,000 today. and the companies that are now leading the way in individual health care. >> personalized medicine are -- it's a key disruptive technology. we have an issue in health care today. we have costs increasing at a significant rate. you can help make better decision making and guide patient care the pharmaceutical

industry inconjunction with the diagnostics sector will pair up in a more influential way to develop better technologies and implications. they will be getting more personalized care and ultimately the payers are going to be able to pay for more effective therapies and treatments. we think this will be well north of a $100 billion opportunity. that deal is set to close in the first quarter of 2014. our thesis is they are now the one stop shop in life science tools and diagnostics.

>> the cost could affect the state's ranking. but states are already ahead of the game. our senior correspondent has the low down now. >> as we search for america's top states for business 2013, we're putting a heavy weight on the lowest cost of doing business because that's what states are selling. >> the advantages of doing business here. >> new york, for example, spending $140 million on a campaign including commercials voiced by robert de'niro. >> some states are hitting the

competition head on. but the strategy isn't always what it's cracked up to be. to attract a dell computer facility in 2004. >> you entered the relocation game as a state, it's a loser's game. it's a dangerous game. you may not recoup an investment if things go south. >> which is why we look at more than jux tst taxes and incentiv. cost of doing business is one of ten categories we evaluate. it takes the full package to be one of america's top states for business.

if you had sold in may you would have gone astray. up more than 3%. the nasdaq up about 5%. we will tell you which companies were the biggest winners. [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

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>> stan by your bunks. there could be some action towards the end of the session. probably won't be at the macro level, the index level that you will see changes. that semi conductor space key for many people. this is what the ten year has done during may. that big move in interest rates as the treasury market sells off and could be key.

>> so many people have been saying this time it's for real. maybe this time it is for real. street signs begins right now. have a great weekend. >> when good companies have bad starts, do you have any ideas? herb does. could fed confusion crush the housing market. we're going to debate that one. this is not your father's winnebego. >> you know what? we have broken the streak of negative.