>> there are names that i like getting the reaction in volatility this week. but xynga is almost two-thirds tax. >> the markets are getting hit again today. we are getting below 15,000. >> there is a story right now in suburban new york that we are following. the marijuana mom. she lives in an upscale neighborhood. she is accused of running a

multimillion dollar marijuana empire. that's all straight ahead. tyler is out today. at first we start with bob pisani with the big move for stocks. what ailing stocks? let me put up a few comments and points that is bugging traders. >> finally that yen carry trade that we have been talking about for a number of days.

a lot of trade that makes the trade. much less attractive. you see it starting to roll over again. this is putting pressure on a lot of stocks to the united states. notice the transport down 2%. it has been a market leader also under pressure. s&p 500 down 1.25. yields are moving here today. yields have been backing up to the upside. >> you know, i wonder if it's something much more simple than all of that. everybody stepping up. >> the numbers -- the services number and the employment component. the whisper numbers are starting

to come down. there is a lot more uncertainty. >> let's try to decrease some of that uncertainty. steve has an exclusive poll. >> suggested that the fed would be tighter or easier on the quantitative easing policy. before we figure out what the results are, let's go the poll of 27. 92% saying no change. what's the economic effect?

no change on the outlook? 33% said somewhat weaker. let's move on to the stock and bond market it's not that surprising but i think it will be that interesting. now i want to give you some baseline data that we will be following as the days and weeks go by here. the average month and we're going to be gauging this as the

data come in tomorrow. and obviously friday with the jobs report. about that affects it. >> he is working at the end here. who would ever say economics was boring. jabbers has uncovered evidence. an unfair advantage. >> that's right. the manufacturing number was released early to a select group of high frequency traders. let me walk you through how that happens. look to the left of it. what you see there.

15 milliseconds before the official release time. a whole host of stocks we're seeing that before. is it their high frequency data service? sent this data out 15 milliseconds early.

electricity. when they raided the place. her name, andrea sanderland, now in custody. investigators telling us they would drive over to the warehouse in queens, driving in the top of the line mercedes suv. she told people she sold furniture and baby furniture that had nothing to do with the massive growing operation that

she is charged with. one more thing this operation conducted. . . exactly what we were talking about. sue, i will send it back to you. >> thank you very much. to washington now where there is a big rally on capital hill. >> well, sue, it's high times on capital hill. now, industry leaders are in town to make their case with lawmakers primarily focused on reconciling state and federal laws. and more liberal tax treatment. they're making a novel pitch to lawmakers saying they don't mind paying taxes if it steams the path to legalization. >> we're here today with more than 35 of our members which represent hundreds of jobs.

to call on the federal government to treat our industry like any other, we are asking to be taxed. >> lawmakers from states that are growing their medical american business point out that it's already a billion dollar enterprise not being taxed. >> we are also following this developing story involving a building collapse in philadelphia' center city. we have no word yet on a cause but we are following the story and tracking it. simon? >> sue, it's the scandal that

could rock baseball to its core. espn reporting that the head of a miami clinic that allegedly sold performance enhancing drugs to major league baseball players agreed to cooperate with baseball officials. yankees third baseman and the milwaukee bruins left fielder ryan braun. seema? >> today is the big launch of this. the blackberry q10. what is new about it and what does it mean for the stock?

>> special dividend. 4 billion dollars short of the financing left to succeed. that gap could reduce the dividend to as little as 8:50. >> it's heavily down.

the update will be rolled out later this year. >> investors are taking a bite out of apple. down almost 3 quarters of a%. banning older but still popular apple products. president obama has 60 days to review that ruling and if he does not veto it the order will go into effect. apple is also appealing that. >> today is the official launch of the blackberry q10 at t mobile stores across the united states. and seema, as you just saw has already got ahold of one of the phones. >> a touch screen and a physical keyboard officially launching in the u.s. at t-mobile stores today. verizon is shipping out

pre-orders tomorrow and will have the phones in stores on june 10. the release has been in late summer. now if you're a buyer of blackberry devices there's a good chance you are in it for the convenience of the physical keyboard. we won't know the real figures until blackberry reports earnings on june 28th. some say it's a little too late. the street was anticipating a launch in may of this year and

the phone has yet to become available in some of the emerging markets including india where blackberry does have a strong base. shares today up fractionally on the day. sue, back to you. >> thank you very much, seema. >> the gold market is in bear territory but the business of minting gold coins is still going strong. sharon is live at west point, new york, with the details. >> hi. this is the west point. this is where all the american eagle gold coins are made. we're going to go inside and show you how it's done coming up on power lunch. making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

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>> welcome back to power lunch. have a look at this stock near session lows. last month analysts referred to as a weak 4.8% in april. they go on to say that the data are indicative of a weaker manufacturing economy and business spending environment. also say the -- remain evident. that stock down nearly 6% right now. >> very accurately highlight the weakness that has got many people concerned. i'm not sure if that is why the market is down but it's pretty brutal. >> we have a tough situation now. we have a weak adp to report. weak component and the numbers are starting to come down on the friday jobs report.

at the same time we have the federal reserve talking about tapering. tough combination you have got on top of that and there you see them coming off of the lows coming off 200 points. it drives people crazy. look, what this indicates is that the dollar has strengthened and the yen is weakened. we have had a problem with this for a while now. when this chart moves to the downside, the yen strengthens and the market tends to move to the downside as well. the important thing is that -- take a look at the major indexes. all the risks off stocks. materials industry. consumer discretionary. there is the risk on trade for the downside. that's what i mean. these yen carry trades is a good carry trade. you can see the dow transports

all to the downside. >> did you want to comment? >> what's your sense from talking to the traders down there about which is actually ruling the market? whether it's the fed taper issue which has been with us for more than a week or two now or whether it's the massive sell off and volatility in the nikkei. a lot of big hedge funds were playing that. if you're on the wrong side of that this has been an extremely difficult week for you. >> i say they are equally important. there is a certain momentum now in the yen carry trade, there was huge momentum on the upside.

now we're starting to see momentum on the downside. that piles on. you see people playing the trade or shorting the other direction. >> i'm sorry for this. i think in a market that is up 13%. >> employment reports have been forcing. as this one will be. we have gone through this. if you have made that money and you're trading on the market. a temptation to book the profits.

>> starting the dialogue. >> that is exactly right. why is the market that would insure that the fed would not begin the taper. >> that is my point. far too complicated. >> maybe bad news. a change in the way people are looking at things. >> seema? >> flirting with the 3400 level. further concerns about the fed.

apple focused. infringed on a patent owned by sam sung. much, if in lasting change on the economic value. >> gold is closing now. we spike on the vix. we have got the dollar move feeding sbloo that. 1397 is where we stand at the moment, sue. >> the market in gold has had some tough sledding over the past couple of weeks. >> that's also where with find that. with the firsthand look.

>> hi, sue. the u.s. mint here in westpoint, new york, is the. >> before the minting process begins you need a template. what is known as a dye. it can be very intri kate. >> it actually is inside the press and comes down and strikes the corn. we have a lot of polishing. >> the flanks are being cleaned for our collectible program. and they are put into a barrel

burner here. >> quality and assets. >> this is all robotic equipment. it puts them into a box and also closes the box. >> that was -- she is the plant manager. now this is the finished product that she is talking about. and the other information that you find out about the coin. collectors want to know all the information that you can about the coins.

now as you just heard, gold prices right now around $1400 an ounce. a lot of that has to do about the artistry and craftsmanship. >> there are a few winners in today's market. we want to highlight those. a 3% gain. s cisco is up as well. not everything is in the red. but a lot is in the red. including in the space. striking a deal that could help end the largest u.s. municipal bankruptcy. we will look at the challenges of states and what it means for anything refusing government request to recall about 3 million of its jeep suvs.

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>> the dow is down and those that are not selling may be insuring their position. needs to finish above 1756 to top its april 18th close. >> how about a little green on this down day. a discount to the market and rivals. >> thank you. the u.s. government says that it will sell off another gm shares have been on the rise. gm would have to share remaining

shares at $78 in order to pay for taxpayers to break evening. >> thank you very much. the automotive maker recalling about 242,000. just to give you an idea of the contact from where we come. defieing recall rests. the government agency. making 2.7 million jeeps that they say are at risk of a fuel tank fire if there is a rear-end collision. reiterating the high number of deaths. he says are due to the defect.

i will let you kick this one off. >> your firm is the one that really instituted or initiated this recall request. what was your reaction to chrysler coming back to the federal government and saying nope, we're not going to initiate a recall. >> chrysler refused to do a voluntary recall because lives are at stake. >> their argument that the analysis is incomplete and the data is incomplete, that doesn't wash? >> chrysler's own submissions to the government shows the jeep grand cherokee is 20 times more likely to have a fatal rear impact fire crash than its biggest competitor, the ford explorer. >> it's about your point of view. i have got the statement that

chrysler released. the focus of the request said those accidents occur less than one time for every million years of vehicle operation. this is not a very common event, is it? >> fires are not a common event. but if you are the person who is in the wrong place at the wrong time you don't want to be in one of these jeeps. >> nothing is 100% in life. >> that standard was doubled in 2008. the center for auto safety did its own crash test of a jeep

these vehicles are unsafe. >> what's a fair solution here. i'm curious. what do you think is a fair remedy here? it is optional on some of 2 vehicles on all of them. >> we will leave it there. thank you. >> all right. simon, let's recap some headlines today. >> an fda panel has convene d.

>> all right. over to josh lipton for another market slash. >> check out a chart of a stock that is rising today. here is the news. the company ceo saying the company is pleased to be in a position to deliver a meaningful level of yield and continue to pursue growth opportunities. that stock up near the highs right now. >> coming up on power lunch, surplus for the state. is it time to go -- are they really clear at this point given some of the state of the state? we will talk about that when power lunch continues and we're watching the dow as well. the s&p 500 off 16 and the nasdaq but that's off the worst levels of the day.

>> what does it mean to you. 41% say it's getting too high. i'm out of the market. >> let's see what's coming up on street signs. >> you know, we have got a pretty wobbly market at the moment. very jittery right there. lots of worries about tapering. we are going to bring you right to the top of the hour, the beige book. what is really happening out there with the economy. but we really want to know what the fed implications are. it should be a very important report coupled with the big perils at the end of the week.

is old world keyboard meeting new world touch screen? will it work? it's about to get really hot. who's going to win and will you join in as well? coming up the top of the hour. in the meantime, back to you. >> the fed is set to admit errors. but it did say its response to that crisis brought time to limit the fall out for the rest of the euro zone members. >> we have seen a back up in yields pretty much across the yield curve. how does it look right now. >> we are on our way to 215, 16, 17. we saw world equities under

pressure. the dollar yen is traded under 99. we haven't closed under 99 since may 3. should be no surprise. back to you. >> you probably know that feeling when you find a crumbled $20 bill that you didn't know was there. expert analysis right now from former new york lieutenant governor. to pinpoint looming threats in

local government. welcome guys, nice to have you here. richard, i'm going to start with you. on the surface it looks to you that states like california are out of the woods. >> not at all. hopefully permanent but temporary increase in revenue as a result of tax and the fact that a lot of people took a lot of gains at the end of the year because of their concern with tax rate. >> some of the states that do have surpluses are funding their pension obligations compared to what they are required to do. is that correct? >> required is a term of art.

>> true. >> what is actually required is fwhot enou not enough to make sure that funds are adequate to pay all the obligations that they have to pay. that has nothing to do with the health care liabilities that states and cities have assumed that are totally unfunded. >> weigh in on how all this is affected or might affect. a lot of people we have heard from said that they want to go in and buy the bonds but that may not be a wise thing to do. >> it's not all about surpluses. so things are improving.

the obligations are large and there are other infrastructures that still have to be addressed. states who accumulate surpluses, i don't think it's wise to implement new surpluses on spending programs. >> where would you put it to work right now, allen? >> i certainly like states. i think especially the higher rated states, i think in general, we like the higher quality. better type issues. water and sewer. higher quality. >> in the meantime, the winner of last month giant lottery is set to come fwraorward at the t of the hour. she will take home 370 million dollars before taxes.

>> we want to bring you up to date once again on a developing story. trapping two others. rescue workers using buckets and their bare hands still trying to free the two people that are believed to be in that rubble. as we look at the live picture right now from the scene, you can see the rescue crews have been working. we promised to keep up on this story. part of it also involves the salvation army thrift store in that collapse. >> in the meantime, cyber space is like the wild west.

the black hats rarely talk but we found one who did. it may be actually going too far in his view and hurting innovation. >> steven watch sure doesn't look like your normal hacker. he is 7 feet tall, a fitness buff and lives in manhattan. things were different growing up in florida. >> being a little bit anti-social, i found a refuge in computers. >> he wrote his first code at the age of six and computers became his main social outlet. >> interacting with characters around the world filled a void for me when it came to meeting peop people. >> he became a hacker and had an online persona. >> you had an identity? a handle? >> the one that most people know

me by is the ut. the ewe nix terrorist. >> he insists it was tongue in cheek and would come back to haunt him later on. >> the reflects of white hat approach to that was yes, all of this information needs to be publicized so that people can fix and patch the software and the black hat was okay. you can publicize them but every time you do make these issues known, there are people out there who are immediately going to start exploiting them. >> where did you fall in all of this? >> it was certainly the side far opposite the white hats. >> he won't say exactly what kind of hacking he did. but ironically that is not kpa got him in trouble.

he said in 2008, he wrote a simple piece of software known as a sniffer program for his buddy. >> it was not hard wired for any particular target. it would have worked perfectly well to capture in different kinds of data. file sharing networks. >> gonzalez used the -- to pull off the largest credit card fraud in history, nicknamed operation get rich or die trying which stole tens of millions of credit card numbers from retailers. gonzalez pleaded guilty and is serving a 20 year sentence. as for steven, he pleaded guilty to a single count of experience. >> if you had.

>> i can't go back and change the past. so ultimately i don't see much value in going back and guessing about how i might have gone back in time. >> prosecutors came down hard, pushing for a stiff sentence. >> given a chance to find a different course. rather than just being pounded into the dust. >> it wants 2009 sentencing.

through the thrill of the hack, which he denies. we are tracking the cyber threat and so can you at hacking america at cnbc.com. >> what an interesting guy. >> more key economic news that could move the market one way or the other. the beige book is out. street signs will have it. power lunch is back after a quick break. at farmers we make you smarter about insurance, because what you dont know can hurt you.

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>> all right. with the dough down 181 points, here is a look at some of the bigs losers. down almost 5.33%. forand a half%. in terms of the etf. on the plus side, up about a tenth of a percent. thanks for joining me today simon. >> a pleasure. we're now at a very important inflection point for the session. we have the release of the anecdotal snapshot of where we are with street signs.

>> sell off the gaining steam. 14,978. we are off of those lows of the day. >> saying the economy grew at a modest to moderate pace. only dallas reporting strong economic growth. one bright spot. real estate. a moderate to strong pace in all districts. bank lending, credit quality