>> sticking with it? >> mike murphy? >> sell lulu. buy at&t here. at&t after a recent pullback, great dividend. >> pete? >> there's been great stuff going on in solar. look at sun edison. options being brought yet. >> all right. i'm melissa lee. thanks so much for watching. meantime, "power lunch" begins right now. >> "halftime is over" and "power lunch" and the second half of the trading day starts right now. >> melissa, thanks very much. we've heard a lot about investment money fueling the housing market. investors pouring in. now that money may be drying up, so what could it mean for your house's value? our real estate expert diana olick has the answer on that one. also today on "power lunch," this man, the second richest man in the world, carlos slim on the state of the economy and his thoughts on what will happen if the fed pulls back. michelle is down there and talking to him. and a worldwide travel warning. if you need to fly, you need to watch this report and then check the status of your flight.

first though to sue at the nyse. sue? >> hi, ty. our top story right now. a pretty dramatic market comeback. earlier this morning the markets, especially the futures, were pointing for a sharply lower opening. we did start down triple digits in large part because the bank of japan did nothing. they left their interest rate policy unchanged. throughout the morning and past noon, you see stocks recovering, and right now we're only down 22 points on the trading session and bob pisani joins me on the floor of the nyse. pretty dramatic. a lot of tension when we saw the bank of japan leave things pat, and they have had such a volatile market for the last month or so and we're doing pretty well. >> all about the interest rate scenario right now, and the stock market turned around when interest rates started declining, bond prices starting to move to the upside. take a look at the dow jones industrial average, and if you were actually to overlay the ten-year yield on top of this, you'd see that as the yield

moved down, the stock market starting recovering. now, don't kid yourself. even though we're not far from positive on the dow, we're briefly positive, still 5-1 declining to advancing stocks and you want to see the risk-on nature. look at the major sectors, where financials, energies, energy materials and consumer discretionary are all to the downside. these are the downside leaders right now. the reason we've been talking about this, it's very dangerous to have rising interest rates like we've been seeing for the last couple of weeks when you have a very fragile global economic recovery. you can go back -- fall back very easily. take a look at emerging market. one area where it's hurt. this is the eem, big emerging market etf, straight down and we've lost at 12% in just less than two weeks. that's a straight line down. the other areas where it's very dangerous is commodities, commodity stocks, rising interest rates, fragile economic recovery, really bad, and the demand has been very weak for base metals this week. copper, nickel, zinc, aluminum, all in double-digit declines and

that's all accelerated since we've seen a rise in interest rates. >> let's broaden out the discussion. let's broaden this out a little bi. kenny, bob told us the things that are negative in this market today, yet, on the other hand, we do have interest rates declining, and the dow is only down about 20 points. we've shown some resilience. >> but i think part of the story this morning, what was going on in europe and germany, the high court there ruling on the legality of the ecb program, and no one by any stretch thinks that germany is going to come out and say it's not legal because europe would start to fall apart so what i really think is happening is that conversation is going, and then there's a sense that germany is going to come out and say, listen, everything is okay. the market got a little bit of relief. even though europe ended lower, it's still going on. >> let's go to rick santelli right now, because the three-year note just went off the board. what did demand look like, rick? >> demand, well, "d" for dog. "d" is the grade we get it. it was not a pretty auction.

the ultimate yield of 32 billion, the wai right in the middle of a 57.5 basis point bid, offered at 57, and i'm telling you no matter how you slice it it tailed at the .581 yield, but here's the thing. it had the weakest bid to cover since december of 2010 at 2.95. the ten auction average is 3.55. the indirects are okay at 33.1 and the directs were dismal at 8.4. dealers have a belly full. they took down 58.4% of the auction. i would think that the market movement of the last several sessions of volatility didn't sit well with investors. back to you. >> all right, rick. thank you very much. josh, come on into the conversation, if you would, and tell us what's on your radar screen given the fact that we had such a dismal opening and now we're coming back quite a bit. >> well, i think actually rick just touched on a point there the volatility, if you talk to different strategists and

technicians, sue and traders, they will say are we in for a bumpy summer? is volatility the name of the game? i'm going back and forth this morning with g.mp's adrian miller, and he does think that's true. adrian's point is that investors are sort of adjusting to the new paradigm here. >> right. >> central bankers seem to be signaling to the market that the excessively aggressive monetary policy is not limited so they adjust to the new paradigm adrian is talking about and maybe have to adjust their expectations and the volatility is pretty much assured in the near term. >> do you agree with that? >> i think it's going to be a volatile summer just because we have a continuing conversation going on not only about the fed but what others are potentially going to do around the world. i think it will add to the volatility. >> as long as the u.s. economy shows some kind of upward momentum, that will be a very positive tail wind for the global economy. that's what's going to push the stock market forward. yes, we're going to get a lot of discussion about tapering.

>> sure, especially as we get closer to the fall. >> they need us for global growth. we don't need interest rates going parabolic like this. it's going to squelch global growth. >> ty, up to you. >> another big story on the radar screen is housing, investors, large and small, institutional have been instrumental in the housing recovery buying up thousands of distressed homes and putting floor on home prices, but are they now souring on the trade, and what happens to the housing recovery if they start to pull back? or taper as the saying goes these days. diana olick is in washington. >> diana. well, tyler, not only did they put a floor on home prices, they put a rocket underneath them, bidding them up and in some cases pricing themselves out of the marked the. we got an inkling about this about a month ago when one investor told us this. >> general consensus right now is that the bargains are drying up when it comes to buying foreclosed properties, and we

actually believe that one of the reasons home prices seem to be aprooep preeshating as quickly as they are is because of the lack of discount available for properties. >> since then carrington announced it's no longer buying distressed properties. in fact in, a survey nationally, investors said they planned on cutting back on purchases of homes in the coming year. last suggest, just 30% said they planned to cut back. only 20% of investors said they planned to increase purchases, compared to 39% who said they would last august. meanwhile american residential properties, a single family rental went public last month, and while its stock is not exactly soaring, its co-founder is still confident. >> the markets had some issues on a broader basis, but we see no shortage in opportunity. the people who involvement in us have done it for a long term. it's a growth opportunity. they weren't expecting current cash flow immediately and are

playing the hpa play. >> reporter: that is home price appreciation. still, we're seeing a slide in home sales in formerly hot markets like phoenix and las vegas, and one analyst says without investors in this market, the housing recovery fails fast. back to you. sue? >> thank you very much, diana. very tough day for shareholders of lulu lemon. theistic right now is down 16%, almost 16.5% to 68.75, coming a day after the ceo christine day announced she would step down as soon as a you can sesor is found. the announcement comes three months after the yoga wearer recall of pants that were too see-through. >> dole foods is on the rise, up 12.5%, this after its 90-year-old ceo david murdoch offered to bite 60% of the company that he doesn't already own for $12 a share. valuing the company at $1 billion. notice that the share price though is above that $12 a

share, and that suggests, look at the spike on the right-hand side of that chart, that investors expect a higher bid is ahead. and sprint sprinting forward in today's session by 2.5%. softbank upping its bid for the wireless carrier to $21.6 billion from 21.1 billion as it fights off a counterbid by dish network. that would up the value of the company and the shares to $7.65 from $7.30. right now sprint is up to 39.10. up to you. >> sue, shares of booz allen hamilton, that company much in the news at this hour. the defense contractor says it has fired edward snowden who admitted leaking information or says he leaked information on government surveillance this week. he had a salary of $122,000 a year as an infrastructure analyst. there you see booz allen stock down 1% at $17.5. we have one of the top

earning ceos in the world on our program. see what viacom's felipe dumond sees in the fast-changing world of television. plus, if you're flying this week, watch out. before you leave the airport, you need to see this report as your flight may not take off, particularly if you're heading on an international flight. and we're live in istanbul as protesters there clash with police and now each other. more "power lunch" in two minutes time.

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let's take a look at the shares of general motors right now. down 43 cents at-34.31. the automaker is cutting the price of its chevy volt electric car by $4,000, said to boost sales. with tax innocecentives and new pricing, a 2013 volt could go for as little as $28,500. good looking cars, too, sue. >> indeed they are, ty. thank you. entertainment and cable giants are in washington for the cable industry show, and first on "power lunch" julia boorstin now with viacom ceo felipe dumond. julia, over to you. >> thanks so much, sue and thanks for joining us here at the cable show. >> great to be here, julia. >> the big question on everyone's mind here at the cable show is how big a threat is cord-cutting, and what are you doing to battle it? >> i don't think cord-cutting is a threat. in reality, if you look at all the technological advancements

and all the great content that exists today and the ability of people to watch that content on multiple screens, there's never been a better time for television, so, in fact, you've seen a number of subscribers stable during the recession and starting to grow again. >> but there have been various indications that we will see cable subscriptions decline over the next few years, and in the first quarter we already did see some, you know, notable erosion, and so i guess the question for you as a content provider is what do you think the cable distributors need to do to keep this from being a problem? >> it's really a partnership between the distributors and the content owners, and we need to provide more of what the consumers want, and what they want is more content. they want to be able to play with the content, watch it when they want, watch it on the devices they want. we're already doing some of that in the home in particular, and we need to do more, and the good news is that we're working together to find ways to do more, and we'll be able to have

people watch content on tablets. very exciting that's going on in the mobile world. you'll see great video content on smaller devices, very excited about that, and it's a great opportunity, and as measurement improves monetization will follow. >> you recently struck a teal to distribute your kids' content through amazon. >> what we do with our content is we put our content on different platforms, different distributors at different point in their life cycle, so at amazon, we might have last season of a show, and we will put that on a couple months before the new season starts, so that has great marketing value for us and has people discover our brands. amazon, by the way, has a great environment for our brands. they make nickelodeon live, mtv live, comedy central live, and

they also sell consumer products, by the way. if you watch contempt on amazon prime, you might want to buy dvd or buy sponge bob toys. >> the kids may not care if sponge bob or dora the explorer is two seasons old and you did see a lot of ratings erosion when your content was on netflix. >> that was up related and we've now had 18 straight weeks of significant year over year gains in nickelodeon ratings. have a lot of new hit shows in the pipeline, "teenage mutant ninja turtles" and premiered another animated hit and the stars of "i carly" and "victoria" coming together. nickelodeon is a great story and living on many platforms, including an innovative app that we have that you can watch on the iphone and ipad and kids love it. >> cable shows here in d.c., senator mccain is proposing a

bill to break up the cable bundle. what kind of threat would that provide? >> the bundle has been great for consumer. it's created more and more channels, including yours, and much more rich content. you have the golden age of television that we're living through today. why is that? >> because there's a wide platform for a lot of networks that gives them an opportunity to create great content. >> you say the bundle is great, but it also means that consumers have to pay for a lot of channels that they don't watch. >> well, they discover channels. different packages are offered by distributeors and the reality is that it's still a bargain for people. they are getting greater and richer functionality over time, and the recession, there was a recession, while you didn't see growth because there wasn't household formation, in fact, you saw stability. it was the last thing that people wanted to get rid of, because there's so much value, and we ought to talk more about that, because it gets better and

better. not just tv everywhere, but the content gets better all the time. >> unfortunately, we're out of time, thanks so much for joining us today from the cable show. sue and tyler, back for you. >> good stuff, julia. thank you very much. coca-cola enterprises is falling in today's trading session. last trade is down almost 3%. the company warns that continued economic weakness in europe, a sharp excise tax in france have all affected the second quarter. >> things worse in turkey today, that's coming up on "power lunch" and major flight problems all over the world. the details on that problem and what you might need to do some up next. and the world's second richest man, and he's speaking exclusively to cnbc about the state of the global economy, the fed and the markets. our michelle caruso-cabrera is live in mexico city. michelle? >> hey there, sue. carlos slim is an extremely

controversial figure, but i wanted to ask him about one of the greatest controversies in the world right now, cheap money from central banks. what does he think about it? the answer on the other side of this break. stay tuned to "power lunch." ♪ 'cause you make me feel so right ♪ ♪ even if it's so wrong ♪ i wanna scream out loud ♪ boy, but i just bite my tongue ♪ ♪ this one's for the girls messin' with boys ♪ ♪ like he's the melody and she's background noise ♪ [ volume decreases ] thanks, mom! have fun! you too. ♪ ♪ a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second.

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16. the russ sell also in megtive territory by half a percent, and gold is down almost 11 buck bucks, .75%. to mexico which has a new law to help boost competition and how will this impact carlos slim's media empire? he spoke exclusive to cnbc's correspondent michelle caruso-cabrera krick. >> the new telecom law was signed by the president yesterday but carlos slim is not worried about it. the entire response to the law on cnbc.come i also took a chance to talk to him about a lot of other issues in the world right now, including the big, big controversy in the financial world, central bank's easy money. is it good or bad. carlos slim thinks it's all good? >> when you have a recession or

the economies are going down, weighing down, the way to stimulate is to lower interest rate, to have money available to make attractive investments. because you have the problem, because you have lower demand, and that's why people don't invest, but people that are having this opportunity to be financing, they lower rates, can't have the interest to make the economy needs to move. >> his biggest disclosure is mexico and has a lot of exposure to the united states as well. a lot of people don't know he's the fifth largest cell phone provider in the u.s., huge pre-paid business coming under what he calls his trac phone subsidia subsidiary. more than 20 million subscribers, 1.5 billion worth of revenue last year and more than 500 minutes of average usage, and i want you to see the final data point which is the most interesting. his average revenue per unit is

$19. if you are a post-paid, the average person in america probably has a contract, and the verizons and the at&ts of the world, all the post-pay providers, they get $60 in revenue per unit so serving the pre-paid market is about serving probably a lower income client that the major providers in the united states don't necessarily want to try and attract so they have much lower margins as a result. back to you, tyler. >> back to you, michelle. michelle caruso-cabrera reporting from mexico city. heads up to anyone for anyone about to fly. if you're going to europe, you may have a problem on your hands so double check the flights. the main airports in france have cut 1,800 flights and are warning of long delays. air traffic controllers there have begun one of their periodic three-day strikes, a plan to centralize control and many flights from the u.s. to parts of europe, of course, do go through paris so good luck if

you're going to be on an avion over the next couple of days. let's take a look at some photographs from istanbul where the protests have intensified just today. turkish police have moved in on government protesters there in the capital using water cannon, tear gas as prime minister erdogan says he won't meet with the protesters. there's to theage -- there's the footage of the clash. live in istanbul now as you look down there. we're joined by nbc's chief foreign correspondent richard engel who is live and ready for that tear gas. richard? >> reporter: well, i'm not sure if you can hear me very well. i'm speaking through this mask. i've put it on for a reason, however. just a few moments ago there

were thousands of people in this square, and the police have moved in very rapidly to disperse the crowds that have been firing enormous amounts of tear gas. i was actually surprised that the police took such an aggressive action because there were probably 10,000, maybe 20,000 people in this square. they appeared to be peaceful. they were chanting anti-government demonstrations, and then in a massive push riot police, hundreds at least, maybe in the upper hundreds of riot police, swept in, backed up by water cannons, and they quickly pushed the people out. there was something of a stampede as the protesters were running away from this area, and now there is so much tear gas that even from our vantage point here overlooking the square, it is very difficult to breathe unless you have a mask, and i should say that most of the demonstrators don't have masks like these. some of them are using painter

ventilators, and others are just usie ining kleenexes and cloth they dip in their mouth. >> it seems to me that these demonstrations that began some time ago, the animating event or the government plans to do something in a square or a park that had become a popular kind of hangout, but it feels as though these demonstrations have taken on a very different, bigger and more sinister life of their own. am i right on that in any way or not? >> reporter: well, they began about two weeks ago in a very small fashion. they were just actually environmental protests as the demonstrators of the opposing government plans to bulldoze a park and actually if you turn over the camera that way, you can see that small green area behind me. there are still demonstrators camping out, intense in that park. tear gas is now coming right from the center of the park which is something that the government had said it would not

do but after the government has sent in its police, sent in its forces to confront the initial environmental protests, it grew, and it became a general movement on police brutality, against the forces of the government and against prime minister erdogan, and prime minister erdogan, though it's been rumored he'll meet with the opposition tomorrow, we're certainly not seeing any kind of compromise here in the square or when you listened to his public comments. erdogan today addressed supporters in parliament, and he called demonstrators here traitors. he called them vandals and called them saboteurs so if he's agreeing to meet with them he's showing the heaviest hand that we have seen thus far just really in the last few minute. >> richard, you know, it's such an unusual situation in turkey. it reminds us when we look at the pictures of the protests that we saw in greece. yet turkey is in such a

different situation. it's had a very strong stock market. a very strong economy. it has a dmemtic government so some of the underpinnings that we saw evident in greece are not evident in turkey. how do you see this whole situation developing, and what do the protesters ultimately want? >> reporter: think you raise a great point. this is not an economic demonstration. these aren't like the demonstrations in spain or greece against austerity measures, just the opposite. the government has been spending, and the average income of most turks has gone up over the last decade. prime minister ergd gan has o-- erred fan has overseen unprecedented prosperity in the country and the reap goes back into history.

over the last 90 years since the collapse of the ottoman empire, in the islamic world and the middle east, erdogan has been reaching back to a time before the world war i, reaching back to turkey's ottoman glory. he talks always about the ottoman past. he's often called a new sultan or a new, neo-ottomanist which is an awkward term so people here are fighting over secularism. they are fighting over the nature of turkish society, and they are fighting over the kind of social values that turks will be allowed to have. there have been restrictions placed on alcohol by the prime minister. there have been restricted on women's rights, and these protesters say that's all part of the thing that they are demonstrating against. >> all right. richard angel, be safe in istanbul. thank you, richard, very much. of course, often when you see turmoil around the world, you see volatility in the metals

market. gold though hitting a three-week low. prices are closing and bertha coombs is tracking action over at the nymex. >> reporter: we're seeing gold close off the lows of the session but still near the three-week lows, the levels. rising interest rates, the fed tapering, these are things that are seen as a real headwind for gold. black rock says rising interest rates are a negative and those with positions in gold trim those this hour. that said, yesterday the spider gold trust said they saw the biggest inflows into that fund in over a month. copper also falling to a one-month low on today on concerns we won't see a pickup in china after that data we got over the weekend. guys, back to you. >> thank you, bertha, very much. to the action here, we've dropped about 25 points just in the last couple of minutes, down 75 on the dow. bob pisani? >> wondering what's going on, it's not about the stock market but about the interest rate market. we're very much hostage to the interest rates. i want to put up the healed on

the ten-year. it really is that simple. we've seen as interest rates started moving off of their lows. interest rates started moving up and we saw the stock market moving down so we were briefly positive. take a look at dow, down as much as 150 points, very briefly around 11:30, did go positive on the dow jones industrial average and now as sue mentioned down about 75 points. higher rates are in negative for the global economy. there's your key point here. put up the sectors, financial energies and consumers and discretionaries are to the upside, as you can see, and that's when pressuring these higher interest rates are particular-for-commodities and like industrials, materials and energy stocks, that's the case today. it's also been a real problem for emerging market stocks. i mentioned the eem in the last half hour. look what's happening today in thailand, in the philippines, in india. now, ever since the second, third week really in may when mr. bernanke was giving his

testimony and talked about the possibility of tapering off, all of these emerging markets have been under pressure because interest rates have been moving up so there's your key point. higher interest rates, hard on the emerging market and global economy overall. >> thanks very much. uptown to the nasdaq where we have seema modi. >> making a little bit of a comeback. still down 22 points on the day. google a focus after announcing the acquisition of waze, an increasingly popular mobile app that allows you to share traffic and roadside information that helps users find the most efficient route to get from point "a" to point "b" and facebook shares in focus. ceo mark zuckerberg will be put in the hot seat. the compensation program is expected to be one of the topics discussed at that shareholder meeting. >> thanks, seema. to the bond market and rick

santelli is back in the action at the cme. how do you look, post-auction, rick me. >> the auction sticks out and you can see 33 minutes ago we had a bit of a move upward in yield. the same can be true for 10s, but also notice on 10s it's now hovering at 220. the breakout point about 4:00 a.m. eastern is when it surged through the intraday high yield yesterday and on the may 29 trade at 2.23. the fact that we're under it is significant. you know, de-leveraging comes and goes. nobody knows when, but it's a real market-buster, and the last two charts, well, dollar/yen, right now the dollar is at the lowest level since tax day, april 15 and the dollar index is at the lowest level since may 1st, maybe that's the epicenter of some of the tremors. back to tyler and sue. >> all right. i'll pick it up, rick. thank you very much. the s.e.c. is going after the cboe over naked short selling, nss. senior correspondent scott coh? on the case.

>> tyler, specifically about regulati regulation against naked short selling. very simple police, oversimfying here, first the practice of selling a stock you don't own, betting the price will go down and short selling, but unlike regular short selling there may be no shares to buy back later to cover your position. naked shorting in itself strictly is legal, but s.e.c. has rules that require the positions be settled. you just can't keep it open forever, and to prevent the naked short selling that ceos like to complain about. last year the s.e.c. said that options expressed for officials and customers engaged in a complex strategy involving stock options traded at the chicago board options exchange to hide their naked short positions to make it look like they were settled out when they weren't. the conduct occurred before charles schwab took over options. the individual settled without admitting guilt last year. last week the firm was ordered to pay $4.8 million.

schwab says it's considering an appeal of the ruling by an s.e.c. administrative judge. now the s.e.c. says the cbo blew it. the exchange which has the ability to make big changes in regulation will pay $6 million but not admit guilt. this is the first time the s.e.c. has accused the exchange of misconduct for poor regulation. previously they have gone after them for business practices, but this is about self-regulation. >> one of the other exchanges, nasdaq, i believe, got a big fine connected with the facebook thing. twice now in two weeks we've had exchanges fined by the s.e.c. >> right. but this one specifically involves the regulatory fashion. the s.e.c. says this is a first and maybe a marker for these exchanges, if they are going to self-regulate, which this industry prize is, need to do it right. >> when it comes to being wealthy, something i don't know much about. is it about the right connections and investments or

just dumb luck? i can relate to the dumb part of that. a think study on millionaires and this is a guy who can use some luck. embattled hedge fund titan steve cohen. a deadline ticking for prosecutors to file charges on sac capital. plus, what is it really like inside the firm? we'll speak to someone who used to work at s.a.c. that's next. announcer: where can an investor

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now to the issues facing s.a.c. capital. ellen davis, the former chief media officer for federal prosecutors in manhattan in an unrelated event, is joining s.a.c.'s public relations firm. that will be in september. now over the government's six-year investigation, nine people from s.a.c. have been charged or implicated in insider trading. will the feds ever have enough evidence to charge steve cohen and traders who have been charged, will they flip and sing on mr. cohen, the owner of that company? ron insana is a cnbc contributor who used to work at s.a.c., kate kelly is here along with the "new york times" deal book writer. thanks to all of them.

>> where are we kate, on the statute of limitations which i guess is a ticking clock with respect to some of the allegations allegedly against mr. cohen? >> tyler, we're about six weeks away from a very key statute of limitations that happens in late july, essentially a deadline by which federal prosecutors near to bring charges in the matthew martoma case, a sdrug trial begn awry. the question is will steve cohen be charged as a result of all of that? he was implicated and a crucial conversation between him and that trader who has been indicted already, matthew martoma shs and we don't know yet if they have enough evidence to charge him personally. >> the company is paid $600 million plus to the s.e.c. not that long ago. did they think at that time that

they were putting their legal troubles behind them? >> yeah. without certainty, but they did think that most of their troubles were in the rear view meror. the s.e.c. is their primary regulator. they wrote a $16 million check. there's been meeting with government officials and additional speech arksz issues and the s.a.c. has said enough is enough. we're not going to fully cooperate anymore and that's caused hesitation on the part of investors who are pulling money. >> you reported on a key meeting that happened between the lawyer's office and contractors for the s.a.c. it can't seem to yield anything. what was the point meeting and why did it go anywhere? >> steve cohen's lawyers called the meeting at the u.s. attorney's office we believe in late april, and 17 government officials showed up. it sort of took the s.a.c. lawyers by surprise. they presented their case as to why they shouldn't bring charges against s.a.c. in relation to

the martoma trades and possibly other trade. subsequently to that the government issued more subpoenas against mr. cohen to testify before a grand jury as well as senior s.a.c. executives. >> as far as we know, this prompted s.a.c. to say we're not cooperating unconditionally anymore? >> exactly. they said if you're going to charge us, charge us. we're not fully cooperating any more. >> you worked there for about four years ago. >> four and a half, five months. >> you did have an associate with mr. cohen. >> yes. >> you know him and how he works. i guess one of the questions is is it consievable to you that he was less informed, involved in some of these trades than the government seems to think, specifically with mr. martoma who was i guess involved in trading stocks with some knowledge -- drug stocks, medical stocks, with knowledge of upcoming studies? >> well, listen, there's 125 portfolio managers at s.a.c. is it conceivable that out of

125 portfolio managers, several analysts per team and traders per team someone may not know something. according to published reports he had a 20-minute question about those trades in question. the question is did he know, if indeed mr. martoma had information. that's a critical question and if it's down to a he said he said without documentary evidence, it remains an open question. >> from what you know of mr. cohen, and i realize this is tiptoeing -- maybe i'm planting my big fat foot in the middle of speculation. >> you're not tip-toeing at all. >> i'm not tip-toeing at all. but would it be logical for him to ask if he's in a conversation with mr. martoma, how do you know this? how are you so certain that this is going to happen and then mr. martoma would say i know because --

>> the question is who mr mr. martoma tell him that? you can't get into a two way conversation without being involved and speculate about the contents of the conversation. it is i would say inside the operation it's probably not what people maybe surmise it to be, like this really secretive labonte. >> labyrinth. >> tyler, if you take a step back, two ways to look at this. one is as you reported many times, peter, there's a whole bunch of people, current and former s.a.c. employees who have been accused of wrongdoing and a number of them have plerksd so is there a culture that encourages this toeing the line or crossing the line of legality? on the other hand, can you say they have employed a bit. >> one bad apple. >> they have had a lot of bad money come out. as i understand it, that was a

company that charged 3% plus as much as 50% of profits. can that company remain as large as it is, if so much money has come out, obviously mr. cohen is not going to -- >> is that going to be a smaller company two years from now? >> it depends of some people say within s.a.c., if they keep their assets the size that they are now, 8 billion, 9 billion, that they can maintain the organization, that cohen will pay his guys and pay it out of his pocket and they can maintain the size they have right now. others say there's no way there's cutbacks, a 1,000-person firm, they are a sprawling organization and will have to retrench. >> thanks for being here. sue, down to you. >> thank you, all. markets are deteriorating right now. down about 90 points. some of it, the buzz on the floor, is linked to the unrest we saw in turkey. right now the dow is down 88 and

the that is damage down 25. three-quarters of 5% and the gold medal is down $7 on the day. also a downtied in the euro. >> and when it comes to being wealthy, would you rather be good or lucky? what do you think, robert frank in. >> most millionaires say luck is a big part of the equation. meet some who don't. [ male announcer ] with free package pickup from the united states postal service

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and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. coming up on "street signs" which is the top of this hour, folks, is apple still innovating or aren't they? interesting views on that. also those pretty unpredictable markets, paul hickey is saying we're going through a bernanke loss scenario. he'll explain that, and the amish are getting fracked. the energy companies know their

position on energy and are taking advantage of it. lots of things coming up at the top of the hour. "street signs" is the name of our show. be sure to tune in. now back to you. >> thank you very much, mandy. all right. take a look. that is our interview with mikey and harris six weeks ago on "power lunch," mikey on the left lost his arms and legs to an infection several years ago. the two boys in south florida know what it's like to try to move forward without arms and legs so they decided to raise $1 million for the victims of the boston marathon bombings who lost their limbs, and now we are very happy to report they are now $100,000 closer to that $1 million goal thanks to tv star and media mogul oprah winfrey who just made a very large donation. harris and mikey have been updating us. thanks for that, guys. we're keeping our eyes on you. we're wishing you luck. they are having a separate fund-raiser next month.

for more information on that and details on how you can donate. go to mikey'srun.com. all donations are tax-deductible, and we'll follow their journey and wish them the very best of luck. when it comes to being wealthy, what's the biggest factor? is it hard work or sound investments, good connections or maybe just a lot of good plain luck? our the wealth editor robert frank takes a look at that for us. hi, robert. >> hey, sue. most wealthy believe they made their own luck, mostly through hard work but it all depends, it turns out, on how you made your millions. a new study from spectrum group asked multi-millionaires about factors. hard work was first and education by 90% and smart investing, being frugal and taking risks. now only half of those surveyed credited luck as a factor in their success, but it turns out entrepreneurs felt far more lucky. 79% of them said they were lucky. corporate executives, it turns

out, were far less likely. they cited hard work and education. now why the difference? succeeding as an entrepreneur depends far more on timing that be normal education, but spectrum says it's about egos. those are bigger egos say that didn't play a role in their success. >> thank you very much, robert frank. the market has taken a bit ah dip again, down 11 and the nasdaq is over 24 points. it's been a very volatile day. volatility is back. the market volatility heating up with the summer temps. ♪ 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 ♪

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. let's get you up to date on headlines. boeing raising its 20-year forecast for airplane demand saying airlines, lessors and freight firms will need 35,000 new jets worth nearly $5 trillion in the next two decades. forest labs will add a representative of carl icahn and says an independent member of its board averting a proxy battle. icahn is the company's second largest shareholder.

catamaran rising after signing a ten-year agreement with health insurer cigna, up a full 10.5%. a wild trading day down here. now down 85 points on the dow. we were triple digits and headed positive, and now we're head lower again. also watching the live pictures from turkey as police have cleared out protesters that have been demonstrating in sometimes violent ways this last week. it's been going on for 12 days, and that has been affecting the markets and the currency markets specifically. we're back with an update for you when "power lunch" returns. we went out and asked people a simple question:

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all right. let's get you up to date on the markets as we watch this live picture out of istanbul. this is the 12th day of protests, and one of the most violent so far as police swept into the square. there were several thousand protesters that they cleared out aggressively using tear gas. we heard that from our report with richard angel. that's affected the dow jones industrial average which is down 104 point. the s&p down 14 and the nasdaq down 28. the money is moving into the ten-year note and we've seen the

yield drop down to 2.18%. massive moves in the currency markets with the dollar yen and dollar euro. seeing big moves. seen almost a 3% move in the dollar/yen. you never see that, ty. >> look at the live shots. explosions going off in istanbul. we'll be covering it all afternoon. that's it for "power lunch." >> "street signs" begins now. "a" may be apple but should the company get the c-minus on its latest innovations? we ask are apple's best innovations still to come, or are they in the rear view heror? some say bernanke is now on the back burner so we ask who is really in charge of these markets right now. plus, are the amish getting fracked over by the oil companies? a shocking report on that just ahead and the irobot ceo is here live with some incredible things robots will soon be doing. first