>> avoid home depot for now. >> chc, upgraded today. i like it. >> eem. emerging markets, i'm sure. >> that does it for us. power starts now. >> halftime is over. power lunch and the second half of the trading day start right now. >> this person comes running to me every day. he is here and he is one of wall street's best known traders. he's got a bull's eye on his back. redemptions falling. will the bottom fall out of his fund? and could steven cohen end up behind bars? >> once again it's all about the economy and we have full coverage of the number where the economy stands, the impact on stocks.

>> volatility is very definitely back in fashion. now up almost 25%. >> these are massive moves in the foreign exchange markets. you very rarely see them. the ten-year is on the move as well. 2.0. 3%. gold rallying again today on the trading session.

a lot of major stocks on the move as well. josh lipton has a lot of that on the floor. >> listen, it was a pretty quiet day this morning. then around noon eastern we really began to pick up speed to the downside. as you mentioned, traders saying you have to pay attention to the currency markets. it's right around that time you saw the yen strengthen against the dollar. you see the dow down 87 points. the dough d did best. if the dough does close down today, that would be the first three day losing streak.

back to you. >> thank you very much. we are turning our focus now on what we're calling the four pillars of the recent run up. those pillars are starting to crumble just a bit. what does it mean for everything else if the pillars of the temple start to run down? >> they are the four pillars of this rally. >> nast whsince then, it's down 9%. the financials etf, the xlf, had a similar increase. but now its showing some signs of cracking down. 3% over that same period. the select dividend up double

digits has since fallen almost 5% as utilities, telecoms and other yield plays have fallen out of favor as interest rates have risen. and perhaps most troubling to chartists, the transports, which rose 21% are now down more than 5%. audit all up and to some it means the rally is showing some serious cracks. you can see it on your screen. it's the worst three day sell-off in sometime for stocks. one thing that is interesting here is that rates. >> where they should be

positioned. >> good old volatility. >> domestic stocks. >> protesters started hitting the streets over a construction plan in a center square. then the protests expanded. the turkish stock market down almost 13% since the rioting began. michelle is our international correspondent. >> take a look at this chart. it really tells you the whole story and how nervous investors are getting. televised comments while visiting the prescribe. in those comments he insisted he would continue with redevelopment plans for a park in istanbul.

some city police are using tear gas and water canyons to disperse the protesters. >> 33% arrested for tweeting about say he should apologize for a crack down. 4,000 injured, nearly 2,000 arrested. turkey's bonds are located very hard. >> the economy is not in the free and clear. the rest of the gang is here as well including steve leisman. and some of the economic stats that we have had out. is this basically what a lot of

traders. >> absolutely, i think it's a new entry point. it's a come back to reality. how long have we been talking about this? the market had gotten well ahead of itself. you saw what we were working today, right to the 50 day moving average. pierced it a little bit. but here and any further weakness, i think long term investors should use as an entry point you will start to feed yourself into it. don't go all in. i suspect the way it feels is that it might be further pressure to the downside. >> especially given the fact that we have the jobs report out and you know, the ranges on what we are expecting tomorrow at least down here have been widening out quite a bit. >> with the middle being about

$169,000. i suspect it's a bit lower right now. i think there is a lot that is going to be scrutinized in this report, including, for example, the workweek. the quality versus the quantity of unemployment rate decline. if we see that rate decline with a falling participation rate that that will be something that would give the federal reserve pause. really we're looking at this for what the reserve does in the summertime and whether or not it leads to a tapering in the fall. >> we are keeping an eye, low of the day. scott, that was certainly not one of the pillars in the market in 2013, but it was one of the pillars of the rising market for much of 2010, 2011, 2012. this one is limping right now. >> even on the down days of

late, apple was trading up on those certain days. say the s&p would be down more than 1% on a given day. that has happened in the last few weeks. apple would be up 2.5, 2.75%. some said were reasons that the stock should rise from here. you take a look, okay. you know? it's not doing so well today. and right around its worldwide developer's conference it's going to be closely watched. >> one of the markets we have been watching has been japan, down something like 3,000 points in the last couple of weeks. and today's remarks from prime minister abe, apparently not terribly well received. >> no. you can see just the incredible volatility. this speaks to, i think, two things. we really started to see the japanese volatility rise dramatically. here because of the united states, when we first got the indications maybe from the minutes that maybe they were

going to start to taper when it comes to buying mortgages and other securities as well. that's when we started to see volatility all over the world. abe, those comments definitely. >> can i say one more thing? >> where are the buyers pull backs were a buying opportunity. at what point are they going to look at opportunity in the face of fear on other people's faces. >> i think we are looking at that opportunity now. the ones that have the money were looking at the 50 day moving average so therefore they

are going to remain patient but they are here and this is going to be the level where you will start to see them come back in. >> i think it's about them fearing, it's like the movie "good fellas." they're going to get made and instead they get whacked. there is a need for a certain amount of clarity for what the fed is going to do. >> the fed is not going anywhere any time soon. i don't know why the market seems to be so fixated. >> that's the new thing. the new thing is that i think there is an undercurrent of a fear that the fed may do something even though the economy does not strengthen. >> quick question for steve, if i might. tomorrow's jobs number, if it's good, is that bad for the market? if it's bad, is that bad for the market?

>> i want good economic numbers at all times. that's what i want. and good numbers are good. you guys can figure out what's right for the market. >> we talked so much about the stock sell-off. also the sell off in bonds. still today with everything, that yield is still above 2% on the ten-year. if we thought there was real fear coming you would see that fall below %. right now? >> as the vix has started to spike, maybe you will see that happen. >> all right, folks. thank you very much. the walls seem to be closing in. do we have breaking news now? we will go to breaking news now. after this quick break. excuse me. we will be right back. [ male a] here's a word you should keep in mind. unbiased. some brokerage firms are. but way too many aren't. why? because selling their funds makes them more money. which makes you wonder -- isn't that a conflict? search "proprietary mutual funds." yikes! then go to e-trade.

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>> netflix is our stock to watch. 21624. the streaming video site. it replaces the drug maker, perego, which is transferring to the nyse. why is this big news for netflix? some investment funds require a percentage of capital be placed in the nasdaq. let's go to breaking news now.

>> we have been following this story all day long today about the guardian breaking news this morning that secret intelligence court ordered verizon communication to turn over data on phone calls from americans and overseas. mike rodgers came out to talk to reporters, very strong in support of the ability to conduct this kind of data collection and saying over the past several years there was a domestic terrorism incident that was thwarted because of this ability. its details are still classified but that u.s. intelligence was able to thwart a domestic terror attack and will endeavour to work with those folks to get this situation declassified today. he hopes to provide more intelligence about it and more

information about it in order to explain what he says is the reason why the intelligence community needs to have access to this kind of data mining capabilities. >> thank you very much. more money flowing from steven cohen's sac capital. jim stewart wrote a terrific piece about this. they both join us now, welcome to both of you. >> i'm going start with you. you did pen a terrific piece. tell me how you think it's all going to play out. >> there is no question if you look at this through the lens of gains theory, the rational choice would be to cooperate. unfortunately the real world is not a world of peer gain theory, so there are a lot of other factors and people can change the incentives to cooperate or

not. and in theory, the people can't talk to each other and we can assume that through their lawyers are somehow some kind of communication. . there is. prosecutors there is a lot of pressure on these other people to cooperate with the government. >> i am surprised that they haven't caved yet. >> that's true. >> the deeper i got into this research, the more obvious it seemed to me that this guy ought to be cooperated if he can. he faces decades in jail because of the magnitude of the dollar of damages here and he could maybe get something as low as probation if he has really valuable information. why wouldn't he cooperate? it means somebody has to change the incentives.

are there ways of suggesting that if you hang tough you will be taken care of? >> interesting. >> at some point everybody said the incentive changed. >> weigh in on what's happening. you have been doing terrific reporting about the outflows. they have had a tough couple of quarters because of the cloud that has been over the company. it's a catch 22. they are not performing well. >> it seems to me that sac internally as well as externally when you think of investors is feeling the impact of the investigations that jim is talking about. their performance has been quite good. certainly better than their peers. and at times, this year it has

been very mediocre. that's okay compared to their peers. that could be just tough luck in the markets, it's hard not to think that some of the stress is percolating to the portfolio managers. we still don't have the exact figures but from what i'm told it's in the billions. some other money was on its way out for unrelated reasons. these legal questions are a jump ball right now. we don't know what else is out there. >> very quickly. if mr. cohen does escape the

clutches, if you will, of law enforcement and prosecutors, does he then continue to manage money but privately? or does he continue in the hedge fund business as is? >> that will be very interesting to see. he can certainly keep managing his own money. there may also be civil charges related to him and the firm separate from the criminal case and that might have, depending on how that is resolved, might prevent him from managing money. i don't know what the evidence is or what the charges might be. but his future is still a very big question mark at this point which is making a lot of investors nervous. one thing i found, i don't ever remember a firm saying that. i have known firms that didn't want to cooperate and deep down really weren't but they always said they were. this has to be a shock to

investors. that makes it impossible to keep investing on the firm. >> the on jeks were certainly fascinating to see. >> thank you. >> let's check the dow jones industrial average. we have cut our losses by quite a bit. what is it like to be one of the rare few to get a coveted internship at google? those stories still ahead. >> hollywood made a movie about the google interns. >> you're interns? shut up. >> what it's raleally like to b behind those closed doors. next on power lunch. ♪

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while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] welcome back to power lunch. this collaboration will feature hpv screening tests as well as a focus on developing and expanding solutions for women's health. cervical cancer, which is caused by hpv, is a leading cause of cancer death among women, specifically in low income countries. >> it's an interview for an internship that could lead to a

job. this could be the last chance that we have got. >> that's the upcoming movie, "the internship." it's lucrative. we have a newly minted google intern. we profiled his experience for business insider and also with us, a returnship at a smaller start-up. for those of you who don't know what that is, sit is a mid-carer unpaid internship. you just finished your google internship. what was the best part of it. >> brilliant android developers and designers. getting a chance to work with them and collaborate with them day to day was rewarding. >> how was the food? >> oh, well, i'm a vegetarian

and usually it's very difficult for me to find a good healthy diet but at google you had a variety of cuisines. latin american, mexican. pizza and burger. it was never difficult to find food. if i ever felt too unfit or bloated, i could go to the gym. google promotes a healthy behavior. >> it's evidently a nice place to work and no wonder vince vaughn and owen wilson want that internship. i gather that the process of securing a google internship can be very involved. describe it. >> yes, actually, i interviewed for a full-time position when i was a college senior so i have a little experience of this as well. it takes months from the time you apply online to google finally reaching back out to you and setting up the two 45-minute

interviews there is a little time in between. the questions are highly technical. he mastered them with grace. i, when i was a senior, did not. the result was very different for me as it was for them and i did not get to experience google. >> once you get the internship, do they take care of getting you out there and getting you established in a living arrangement, etc.? what's it like? >> they pay for your housing. they set rohan up with a few different interns. two were from argentina. one was from ukraine. they were from all over. they pay for your housing and transportation. a shuttle bus comes to pick you up to and from work every day. there is 24 different cafes. there are bikes once you are there. everything you could ever want, google has. >> i don't mean to rub it in, but rohan also got paid. you took an unpaid internship,

very happily derived one. you seem very happy there, with the company. how did that come about? you can tell me what your age is but you're not a college kid any more. >> no, no, not any more. i was two years into my career. i was a designer for target and wanted to take a pivot. so i returned to school for business and convinced two revolutionary start-ups to take me in and hire me as an intern but it meant not getting paid. >> where were those? you were in b school at the time and you took internships mid career. what was it like to be a mid career intern probably working with a lot of people who were much junior to you both in terms of age and experience? >> exactly. so i joined the gromet, the company i'm still at four years later. coming in as an intern you help build something. this was an early stage start-up at the time. i got to be in the trenches building something exciting. now i'm a director.

i'm not 30 yet but i got to progress and have an exciting trajectory. >> that's interesting. they say it's not a job. it's not a job. but it could lead to a job and that's exactly what happened in your case. rohan, tell me about how much you got paid. >> well, you know, i can't really go too much. the average interns, i don't know salaries. but combined with the perks it was more than a college student could ask for. >> it was something like $5800 a month or something? we will lay that one on allison and not on you. thank you very much. sue, down to you. >> let's check the market specifically. the gold market which has been rallying as the market sells off. sharon epperson is tracking the action. stocks have come back a bit. how about gold? >> it has definitely come back as well. we saw gold prices turn around and we saw that move as we saw the rise in the yen and the euro

and the dollar fall sharply. the dollar index decline is really gold's gain as a lot of traders are looking for an alternative currency. sit a positive move for gold. copper has been bucking the trend. >> we have come off of our worst levels. josh lipton here. telling me more about pulling the market back off of its lows. >> they are off the lows. down triple didn'ts and now down 78. really a range of issues. you have continued concerns about the confusion. of course, the big jobs report tomorrow employment indicators suggesting that it could be a weak one.

some of your laggers there include netflix and pitne pitney bowes. a chinese company that has the bulk of its business ever. back to you guys. >> before i let you go, your thoughts on which is more important. the sell off that you're seeing. i'm hearing both sides of that story down here. >> they are really focusing on currency markets. they can accelerate to the downside. hedge funds borrowing cheap yen that use the proceeds to buy assets.

what they want to see if it's a weak report, is that good? does it make you worry about the economy? >> you hear both sides of that story, too. thanks so much. >> the nasdaq is off almost half a percent now at 338774. shares of apple, part of the reason why they are also off of their lows. other big movers at the nasdaq, first solar, micron and teva, they are all now in the green. sharply negative in the green and a number of these key stocks, ty. back to you. >> a rare moment in life, bono's u2 serenading warren buffet.

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>> chris kristy has appointed an interim senator until the october 16 special election can be held. senator now from new jersey until the october 16th. >> that was a live look. he will lie in state in honor of his years and decades. >> thanks, brian. we will see you at 2:00 on street signs.

>> rick is tracking the action. we briefly moved below 2%. i am more fascinated by the moves in currency markets. >> how many weeks, months, and quarters? leverage. >> not in a gentle pretty way but in a forceful wild way. if you blinked you missed it. we lost 12 basis points and we have come back. but the dollar yen is what it's all about or anything yen. a breathtaking move as we are rattling the cages of the trade. it isn't just here. . leverage and by the junk well now it's back to junk.

>> and a tough guy reputation. managed to get a roll in a movie, "money never sleeps." >> we're talking about a wall street hot shot who has gotten more. it could get down right ugly. >> meet the founder and ceo. >> free enterprise system is what built this great country. >> he made the rounds from a talking head on tv. >> thomas is an amazing opportunity for people to buy the stock. >> we have a resolution and a plan. >> to a cameo in an oliver stone flick. >> we know they won't let anything too bad happen here. >> tommy was honored by new york's gop leaders as business

man of the year. twice. >> here he is speaking at a training session. >> there has been a dramatic turn for the fast talking man. the federal government now zeroing in on the way he does business. >> young traders wanted to follow in his footsteps. >> i wanted to be able to be a stock broker and do this the right way. >> he signed on as a broker trainee. >> i'm going to be working 14 wall street stockbroker trading. >> once inside he says the trouble began. >> they would give you a script to memorize. it was a high pressure pitch. everybody was high pressure, including me. >> junior brokers were told to

pitch whichever stocks they wanted. >> a complaint. >> it's a boldfaced lie. >> turned down our invitation to go on camera. >> there is no such thing as a pitch book script. >> but there is a much different picture painted. the wash dog says they unloaded the firm's shares of a skyrocketing stock. brokers are intimidated.

you're done in this business. you're done in this business. get the blank out of here. and then there is the sec. the regulator charging him with defrauding investors in a hedge fund. >> they are alleging fraud that harmed investors. >> he also consult for the sec, treasury and the fbi. >> the deeper i dig, the more worms i find.

. >> that led me to questioning wall street. >> what could possess him to do what the sec alleged? >> greed, money, stature. ego. vanity. vanity is the devil's favorite season. >> listen to this message he dw delivers last year. >> the only industry that all of us can go from being heros to pond scum or pond scum to heroes just like that. >> things have gotten more kbli kated now. >> it's all after a flurry. we will continue to follow this story and keep you posted here. back to you.

>> you would think that china cracking down on corruption is a good thing. not if you're in the luxury retail business. we have that story for you and we will explain in a minute. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business?

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>> growth will fall by half. a big reason is china. >> 60% of high end watches went to officials as gifts. there is a negative buzz around luxury us a ten tags. maybe they will go back to using the cash in a paper bag. >> maybe they will.

>> and many have turned positive by a third of a%. >> keep an eye on the markets. chris christy has named a republican to fill the senate seat. he will serve until a special election is held in october.

>> about an hour ago, the industrials were turned up. you should point out as sue mention mentioned. >> thanks very much. transports up 18 points. did warren buffet spill the beans yesterday? well, take a listen. >> i have carried this envelope around that has a name inside. bill slipped it out one time and read it to the board. it says check my pulse again.

>> clearly he was having a lot of fun. he and 150 other billionaires did have some very serious talks on how to solve world poverty. >> these are all people committed to solving the world's poverty problems. i thought one of the things that warren buffet said is he knows he has given away a lot of the. >> so eloquent. the whole point is he was getting a lifetime achievement award.

not putting his name on everything. what he said is i have never given away a dollar that i have needed. i have all the money that i could need to buy the things that i would want to do. that was a very powerful message for a powerful audience. >> i think it elevated the conversation or it seemed to. obviously i wasn't there. i would love to be a fly on the wall. it seemed to elevate the conversation about the fact that almost everyone can do something to solve the problems of the world. bill gates and warren. can run much deeper.

>> talking about best practices and lessons and how can people pork together and network and get together and take these tremendous resources that we had in this room and put them in the common cause. how can we use free market ideas? not just the money because the money is fine. but it's the brain power and the problem solvers. how can we come up with new free market ideas instead of just giving aid which doesn't solve any problems. >> if anybody can, those two gentlemen can. thank you very much. good to see you again. >> that version of home on the

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>> all right. a bit of resilience in the market. the ten-year note briefly dipped below the 2% mark. we're back above the 2% mark. it is indicative of the fear that was in the market earlier this morning. we had an amazing move with the dollar plunging 3%. you never see that. and that is what set up a lot of the volatility in the market today. all right. in terms of the winners and loser, the biggest winners, tie the losers.

>> walt disney has had a heck of a run hitting multiple all time highs so far. that will do it for a thursday edition of power lunch. thank you so much for watching. >> stay with us. it will be quite an afternoon. street signs has it now. yes, it will. we are on watch for another wild trading hour. because just an hour ago we were talking about the douw's first three day in a row this year. whatever happens in the next two hours, we have got a guest who says watch out. stocks look shakeyer ahead. >> mandy is off today and so apparently was the risk trade.