delivering deliveringalpha,.com. very, very excited about him joining a great lineup including the treasury secretary of the united states, jack lew. we at allied the results and you said murphy won the debate on netflix. >> adt. >> josh? >> citi. >> stephanie. >> boise cascade. >> joe. >> expedia. >> that does it for us. "ha "power lunch" starts now. on the rise today, the markets, the bulls back in control right now. and on the rise now, the great american housing market. home builders sentiment jumping in june to levels not seen before the start of the housing crisis. happy home builders, ladies and gentlemen. also on the rise, oil. wti, west texas intermediate, crossing the $100 barrel a mark today. this as the u.s. says it will send weapons into syria. iran reportedly says it's sending 4,000 troops over there,

so when does that mess over there start forcing gasoline prices higher and maybe the economy, not just here, but globally lower? sue is at the new york stock exchange. hi, sue. >> hi, ty. food to see you. when a monday on wall street to start out week. the dow has been on the move, smartly higher. right now a triple-digit advance on the dow right now of 166 points. the s&p and nasdaq also in green territory with the s&p up just better than 1%, and the nasdaq is up 1.25%, so actually the nasdaq is faring the west of the three indices 3-m, delphi a hitting all-time highs and boeing, staples, amat hitting 52-week highs. the dow having a triple-digit move, but this is the fifth straight move th session where we've seen that

kind of move. a look at the vix and we'll talk about that in just a second. the last week it was up 8%, and that brings us to bob pisani who also tracks the volatility. >> we do, and while it's been up since may 22nd when mr. bernanke gave his congressional testimony, the important thing is steady as she goes. the last few days, real found a floor. look at the dow industrials. in a rafnlg the whole month between 15,000 and 15,250 roughly. today we've been 160 points up since right at the open so there's your new sort of narrow short-term range. 3-1 advancing to declining stocks today, and the right kind of stocks run. what do i mean by that? stocks that you want to own in the growth environment, financials, for example, housing stocks are on the upside, the itb on the upside. tyler mentioned the home builder sentiment. the best we've seen in 2006 and also seen a nice move up in some of the energy stocks as well. bond etfs, those stocks as well. a nice move up. there's the bond etf, but the

bottom line is for the most part yields are moving down and have been steady for the last couple of days. >> ben willis joins us as well. good to see you starting this monday. it is pretty impressive we have the market coming in at these levels to start off the week. there has been an awful lot of volatility though. >> volatility, as you said, it goes both ways. >> right. >> volatility not down in these moves. what you're seeing today is the idea that we can have a successful rotation inside a correcting market where you saw utilities and high dividend stocks being sold off in the last month. you're seeing a rotation into tech stocks. funny earlier, we heard before it was old tech, that cisco is an old tech of the world. i think it's kind of funny, but the fact of the matter is cisco news indicated that that whole industry can look forward to growth, and i think that's why you're seeing the rotation in the vix coming off inverse relationships. >> what are you watching for this week? what's the most important data points or forecast or comment? what are you looking for this week? >> i think the commentary out of fed is going to real be what's moving the market, but the other part that i'm looking at that i

found very interesting, that oil is trading higher, even when we see the election of new -- of what we believe to be a moderate. i would have thought for today that would have put some downward pressure on crude, but the rest of the war stories going with it i think -- >> the syria story. >> that's turning into a war, a religious war practically at this point. i think that's why you're seeing the move up. don't you think mr. greenspan is pleased with what he's seen, a half point up in yields, enough to get anybody's attention and now it's not a disaster, and now he has to manage this and not get out of hand. don't you think he's going to be a little helpful to the markets on wednesday? try not to get things too crazy. >> mr. bernanke. >> bernanke. i know where we're going. still all academics to me, but i think what we've seen is a successful jaw-boning by the central bank. >> that's what i mean. >> and that's part of the tool they will use to continue to move us off the mark in the rotation out of the interest rate-sensitive trades into more growth. rising interest rates are not

bad for equities. that's what i keep saying. >> moderately rising. >> go to 4% on the ten-year, could be a lot different. >> we had a pretty robust market at 17% interest rates under paul volcker, so we're used to this downward trend. >> but people don't have that institutional memory. >> historical terms, still at generational lows. >> right. >> thanks so much, ben, see you later. ty, up to you. >> sue, thank you very much. we're told that things are fairly calm over in turkey today, that after another night of violence in a popular istanbul square that's become the battleground between riot police and a cross-section of citizens protesting everything from construction in the square to stricter, more islamic laws being laid down by turkey's conservative prime minister. now two of turkey's, biggest most powerful unions have called a general strike to protest the crackdown by the government. so far about 500 people have been arrested after almost two weeks of protests, and just a few -- 100 miles south, it's a

full-blown war in syria between shiites and sunnis, alli itawitd others. iran is sending 4,000 trips to back their alley, syrian president bashar al assad and the iranian backed hezbollah has also sent troops. it's still unclear how much aid will be sent by the u.s. and when it might start to arrive. the oil market reacting swhas as you see right there. brent crude up 12 cents, hitting its highest levels since early april at one point today so when will the surge in oil start to impact the prices at the pump and the economy? we have senior economics reporter steve liesman with us and tom petri, chairman of petri partners. good to have you with us as well. how much of today's price and today's price movement is directly traceable to the

unsirnts in the middle east? >> i think most of it, tyler. on fundamentals today, really the supply-demand fundamentals would not argue for it to be up here, but it's very clear cut that both the syrian situation and the linkages that you've just touched on between the syrian situation and the israeli-iranian situation over nuclear weapons all leaves us really wondering what exogenous events might come in the coming months. >> so let's take the price apart a little bit. if none of that were going on if there were, let's say, sort of a resolution that kind of ame ameliorates the situation there, what would be the price be for supply-demand? >> somewhere in the $85 to $90

range, absent these other factors? >> if it gets worse, where could you go? >> you could go meaningful higher on a big geopolitical event, action by israel on iran on the nukess, or a spiring out of control situation with syria. syria is serious now for the people that are there, but it's the knock-on effects of syria's situation as it affects turkey, as it affects iraq and the saudis that really we have to worry about. >> tom, let me bring steve liesman in here. do you find anything to quarrel with what tom just said? >> no, and i think when the federal reserve looks at this price spike, it's going to look pretty much what you're looking at, through a geopolitical prism, and what it will look for is a general rise in the price level if we're concerned about inflation. if you put the oil chart back up, i'll show you how people can look at it. you see that spike in february. >> mm-hmm. >> we still have to work that through on a year-over-year basis, so as we go through, the comparisons, go back to the

prior june, the comparisons are still going to be favorable as we move forward on a year-over-year basis so there will be some tolerance on the overall cpi and pce numbers that the federal reserve watches in the year-over-year rate, so this spike is worrisome, in part because it will translate over time into higher gasoline prices. inflationary standpoint, perhaps not so. >> tom, as steve just pointed out, oil prices were much higher in the winter, and as i recall they had never been higher than they -- at that time of year as they were this past january and early february. what's happened since then to bring them down so much? >> well, we've had new supply coming on, and we've had two forms of that. iraq is increasing its production and its goal this year is to put almost another claar 1 million barrels a day into the market. the u.s. is going to increase by 300,000, to 400,000 to maybe

500,000 a barrels a day, and that will reduce the amount of imports we need. we're in a better supply of oil than we have been in a long time. >> thanks for being with us. hope to see you back here again soon. let me turn now to steve to talk about the other big story in your wheelhouse this week. that's fed chairman bernanke's press conference on wednesday. that will follow the announcement of whatever they do at this upcoming meeting. i assume you'll be there on wednesday. what are you looking for? what kind of reassurance or statement do you expect him to make? >> you know, i want to feel for how the pendulum is swinging. what we know is that they were big on the side of forever accomodation and qe infinity. bernanke brought that back a little bit in terms of, you know, it's not infinity forever. it's just infinity while the labor market is improving. kind of swung a little bit that way. you saw the market react. now in recent weeks, a little bit of redirecting back towards the center of, you know, a, we're not going to taper maybe for the next few meetings.

>> too dramatically when we do. >> even when we do, it's not a tightening kind of thing. we'll see what kind of balance he strikes. there's a debate on the federal reserve that concerns the following. they are looking for substantial improvement in the labor market before they end to reduce qe, but it's substantial compared to what and improvement compared to when, and there's different superintendents? >> do you read it as it seems like a lot of commentators are today, that last week's spasms in the market, the bond market and stock market, were directly traceable to the growing sense that the fed was going to taper, taper dramatically, taper soon and that today the swing back in the other direction is the idea that bernanke, et al, will reassure, if and when they do something, it will be later, more gradual. >> i don't give the market that much credit. i think what's happened is that bernanke has really created this volatile situation by the uncertainty in the communications of the federal reserve, it's created volatility

in the market. i don't like at this 160-point gain as people feeling good necessarily about stocks. i see it as a piece of the volatility where we've been up 100 and down 100, and i think that volatility is created by uncertainty about how to process data, and what i'll be listening for for most from bernanke is a sense of how to process it. if the unemployment number goes down to 7.3, what should i do with my forecast for tapering? that's created the vulnerabilities for the fed and it's called reaction function. >> thanks, steve. sue, down to you. >> let's focus on the home builders. they are up across the board after the u.s. home builder sentiment jumped in june. it's actually at the highest level since before the housing crisis. can you see some of the home builders are also solidly in the green in today's trading session with one of the leaders, toll brothers, today. diana olick covers that sector and joins us live now from washington. >> hey, that's right. home builders rallying on news that home builder sentiment hit

a seven-year high in june, jumped eight points on the national association index. the first time it's been in positive territory, that is, above 50 on the index, since april of 2006. the eight-point jump is also the biggest one-month gain since 2002. we just showed you the stocks of the big builders like lennar, d.r. horton and pulti to the upside. no mention in this report of rising mortgage rates. we'll watch for that going forward. all three components of the index saw gains. current sales conditions up eight points and sales expectations up nine points and buyer traffic up seven point. only the last one, buyer traffic, is still in negative territory or under 50 on the index. now, confidence rose in much of the country, particularly strongly in the south. it did, however, slip in the west. supplies of existing homes are rising in some western markets, and prices are particularly strong in california.

now, confidence is gaining, but will construction match? the two normally do correlate and we get may housing starts tomorrow at 8:30 eastern time. watch for that on "squawk box." for more online, realitycheck.cnbc.com. tyler? >> the man responsible for the mace of intelligence leak telling a british newspaper about american surveillance techniques is speaking, sort of. eamon javers will be speaking, more than sort of. >> reporter: i'll be speaking here. what edward snowden was doing is participating in an online q&a with "the guardian" newspaper that wrapped up 15, 20 minutes ago. fascinating conversation between snowden and a lot of kwes questioners. snowden saying basically he doesn't think informed consent or consent of the governed is innocent unless it's informed and he said he was impressed with the first couple of days of media coverage and the debate over the nsa snooping, but then

he said he was disappointing about the mainstream media focusing on him, what his girlfriend looks like, things he typed on the internet back when he was 17 and raising a few questions about american tech companies and what their role should be, calling revisions in their statement and noting some of the very similar wording between the statements of all of these technology companies and here's what he said specifically about facebook and a number of other companies. he said, for example, if facebook, google, microsoft and apple refused to provide cooperation with the intelligence community, what do you think the government would do? shut them down. snowden clearly raising a question here about whether or not american companies should engage in a civil disobedience herenence the u.s. government and pick and choose which laws they would follow, and he was asked if he communicated any classified information to sdmb. >> he said this is a predictable smear i anticipated before going public. ask yourself. if i were a chinese spy, why wouldn't i have flown directly into beijing? i could be living in a palace

petting a phoenix by now. snowden raising the possibility himself that he's a chinese spy, not really denying it in that answer. later on the journalist went back in the online chat to ask him a question specifically on his cooperation with the chinese government. he said, no, i've had no contact with the chinese government, just like with "the guardian," the "washington post," i only worked with journalists so there's a lot here to go through but raising this question of journalists, non-journalists in terms of contacting china leaves open the possibility that he's talked expensively with chinese journalists as well as western journalists >> fascinating conversation. you're right. a lot of corporate news, shares of google almost up 1.5%. a new stock split calls for a new class of stock with no voting power designed to see the

founders retain control over the company. despite sequestration and budget cuts defense stocks keep flying. the index hitting a record high in today's session, up better than 1%. individual movers including boeing at its high elf level since 2007 and lockheed martin at levels not seen in five years. netflix up in this strong trading day, up.25%, or actually a little bit better. the video streaming service announcing a multi-year deal with dreamworks animation that includes 300 hours of animation programming. shares of dreamworks trading up better than 4% on the trading session. shares of smithfield food, the starboard value says the company should be broken up rather than sold to a chinese firm as a whole. putting the breakout value at

$34 to $55 a share compared. etna gaining ground, too, up now almost 2% on the session. the company will no longer sell health insurance policies to individual consumers in california as of the end of the year but will continue to sell policies to medical beneficiaries. and kitchen aide has a branded version of its soda stream product. soda stream is now down 2.33% and whirlpool is up 0.66 boston. >> you seem very familiar with "kung fu panda" 1 and 2. andrea day is working on a story live now from brooklyn. we'll be right back. >> reporter: all right. identity theft, money laundering and slurpees, believe it or not, all part of the same story involving several 7-elevens. much more on all of that when

"power lunch" comes back in just two minutes.

johnson "a" johnson moving up. buying pharmaceuticals up to $2,000. their most advanced drug is being identified as a treatment for prostate cancer. the deal a blow to rival medivation, currently trading lower by about 9% at 46.22. sue? >> ty, several 7-elevens in the new york area are in big trouble

today. andrea day is live in brooklyn with the details on this. this is an you be believable story. andrea? >> reporter: yes, sue, it really is. illegal immigrants forced to work at several 7-elevens, and that's not all. they were forced to pay their boss big rent just to live. here's what u.s. attorney loretta lynch had to say about it just moments ago. >> these nine defendants created a modern day plantation system with themselves as overseers, with the immigrant workers as subjects, living in their version of a company town. >> however, the franchise owners seized upon this repeatedly and without remorse exploited the very employees who toiled for long hours to make their franchises profitable. these employees were also forced to enter into agreements, as i mentioned, with the franchise owner to be harbored for rent in residences owned by the defendants and were paid for only a fraction of the hours that they actually worked.

>> reporter: all right. this was no small scheme. the 7-eleven owners made more than $182 million during this period. here's how it all worked. the owners allegedly employed more than 50 illegal immigrants from pakistan, the philippines, and used stolen identities from kids, even the dead, to cover up this whole scheme with payroll. 7-eleven owners stole wages, only paying the workers, you know, small amounts, some of them working 100 hours a week, but it didn't stop there, guys. the workers were forced to pay rent to live in boarding homes. just check out these that you're watching now on the screen. earlier this morning federal agents arrested eight people. facing numerous charges and here again is u.s. attorney, loretta lynch. >> all right. and i yeah, thank you very much. we appreciate it. mondays are always big days for wall street analysts. we're checking their calls coming up next. plus, is silicon valley going to

fight washington over the snooping scandal? we'll have that and much more on this triple-digit 180-point plus day on "power lunch." >> five big wall street names from five big wall street firms with five big predictions on where wall street is heading in the second half. it's all on one big hour of "power lunch" this thursday at 1:00 p.m. eastern. you want to know where the markets are going? these people get paid to look forward, and they are only on "power lunch." don't miss the power summit, 1:00 p.m. eastern, thursday. vo: i've always thought the best part about this country is that we get to create our future. you get to take ownership of the choices you make. the person you become. i've been around long enough to recognize the people who are out there owning it.

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it is monday, but you probably already knew that, but it's also the day that wall street analysts make be a awful lot of big calls often on some big names are and we've got some to talk about. let's analyze the analysts with matt cheslock at the nyse. how are you? >> good, tyler, thank you. >> let's start with jeffries downgrading chevron from hold to buy saying we think chevron will struggle to grow its free cash flow further from its already strong position in 2012. year-to-date shares are up 12%. taking it from buy to hold. what do you say? >> i probably would agree with this. obviously short term 120 held, 115, maybe another point we'll look at, but the u.s. is poised to produce more than they import going foek forward. eagle forward, the batch enns and alaska, not where chevron's focus is so could be a pretty good call in the near term.

>> oil, jpmorgan, upgrading hornbeck offshore to overweight from neutral saying despite being up more than 50% this year to 1.6 times book value, we believe hornbeck offshore has plenty of room to run. take a look at that. year to date, it's up nearly 60%, so they like it, overweight from neutral, do you? >> i would agree. fundamentally very good stories here. talked about a total refit of their fleet so that looks good in the future. they will service all these oil rigs, especially in the deep water gulf area so in that regard it's good. already moved 20 bucks in the last year owe so. i'd be interested to buy on a call back. >> no quibble with the call. >> perfect. >> susquehanna downgrading from neutral to positive. we see red hat needing a healthy transition. >> down 16% in the past month so

they are downgrading after the stock has fellen. >> in the range of 50 to 60 for 12 months, now trading at 45. i'd buy on that alone. going forward, they have the open stack platform as they go out to next quarter so that looks good for them in the cloud space. not a lot not to like and they have a 300 million buyback in place so any further weakness may be a good opportunity for the company to use the buyback >> you think the downgrade is a little bit too little too late and you'd be buying at these prices. >> absolutely. >> thank you very much. fantastic, matt. appreciate you being with us. see you soon. >> thanks, tyler. >> sue, down to you. >> we're now up 113 points. we were up 180 points just a few moments ago. a very strong market day and very broadly based. bob pisani is here on the floor of the nyse and the nasdaq is performing better percentage-wise. >> 3-1.

very steady mornings opened 150 points within minutes of the open. take a look at the dow jones industrial average. we're being led by the kind of secretaryors like to see moving to the upside like, for example, tech stocks. now, i'll tell you something that bothers me a little bit, sue. sitting out this rally are the transports. >> i know. that's something that we follow. >> critical stocks here, and i don't mean just like the airlines are down. land start systems on the dunn side, union pacific on the downside. csx amongst the railroads on the downside. they have held up pretty well, but obviously money is being distributed elsewhere right now. elsewhere it's a pretty broad rally outside of the transports so we have the home builders up and the home building sentiments doing well and financials doing well and brokered dealers all strong, some up 2%, 3%. the sop, that's oil and oil stocks in that sector up israel 2% and tech almost up 2%. you can see it's a fairly broad

rally. bond yields are coming down today. >> they are. >> is it going to hold into wednesday though with the news conference with mr. bernanke? >> all was on one side and mr. bernanke is going to be as conciliatory as possible, that he's gotten what he wanted, that essentially let's get a little bit rise up in yield but not too much. you've got to get a gold locks scenario for bond yields, slowly moving up, but you can't let it get out of control. >> that's true. >> can't let it slip away and can very easily slip away. >> what they are afraid of, instead of 2.2% of the ten. suddenly something happens. >> and it spikes. >> and we're at 4%, that's too fast. >> that's too fast indeed. >> thanks, bob, very much. to gold where prices are closing right about now. sharon epperson is there and is tracking the action over at the nymex. >> traders here talking about what you and bob are talking about. everybody is waiting to see what happened at the fomc meeting tuesday and wednesday and, of course, the press conference afterwards will be watched very carefully as well. we are looking at gold prices right now closing right around

1,38 or so an ounce, down $4 an ounce rather, and we're looking here at prices that have been influenced very much by just a wait-and-see attitude. not only the gold market, but also seeing what's happening elsewhere in the metals space. keep in mind though, the biggest decliner of the day is actually the biggest gainer year to date and that's palladium. a lot of folks are focused on the palladium market in what is happening in south africa. sue, back to you. >> all right, sharon, and i see you got the pink memo. >> absolutely. >> and so did bertha, there we go. >> yes, i did. >> why does that happen? >> thanks very much, bertha. >> must have all the same zeitgeist today but definitely we're in the green when it comes today and the nasdaq outperforming as a result. netflix, the biggest winner there. netflix continuing that march into original content with a mega deal with dreamworks. 300 hours of original content they are going to do. still not as high as they were before memorial day weekend, and

we still don't have the numbers on arrested development, but take a look, some arresting green in terms of big caps. the big tech rally led by the big heavyweight, microsoft actually adding the most impact to the upside. we've got cisco at a new 52-week high and chip stocks really are the best performers within the tech sector. we've got them surging today. micron, the best performer, getting its price target up. over at jeffries they think they are seeing stability when it comes to memory chips and also an upgrade over marvel, over at susquehanna that thinks its wireless is getting traction, and that's not been priced into the stock. sue, back to you. >> thank you very much, bertha, all right. to chicago where rick santelli i can guarantee you is not dressed in pink today. he's tracking the action at the cme. ricky? >> i don't think the world wants to see me in pink. all right. if we look at a two-day chart of ten-year note rates, friday we settle at a 213 yield and

hovering at 214. can clearly see on this chart, 214, 215, that's the pivot, and everyone around the globe almost in every project is trading in lieu of the fed two-day meeting, so it's kind of home on the range. if you look at the next chart, dollar/yen, same dynamic. 95 seems to be your pivot point. see how many times we've bounced off of that and looking at dollar index, 80, 80.75, same thing, rangish. whether you're looking at the stock market or high-yield etf, you can see it's coming out of the chute here as many expect it will be a risk-on type fed statement. we'll soon now. back to you. >> conciliations out of washington in the future when it comes to surveillance? the guys at google, microsoft, facebook and beyond are pretty

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"the london times" says vodafone will increase its offer for germany's largest cable

operator by about 1 bill crop euros. its initial offer of 10 billion euros was arrested last week. we weyerhaeuser is name a new ceo and announced it would buy timber from asset management for $it.5 and lowe's is buying most of the assets of orchard supply hardware which has filed for bankruptcy for $1.5 million. ty, back to you. >> tech companies have been tied for operating too closely with the national security agency over privacy data have begun to push back but so far apple, facebook, microsoft among others, have not been terribly successful in getting what they want, so will they fight harder. jon fort jonfordor -- jon fortt is in san jose and joins us and eamon javers joins us as well.

>> they have not pushed back the ability to put out to the public for how many intelligence requests they get on some kind of basis from the government whether it's monthly, annual, since months. what the government told them according to the tech companies own statements over the past couple of days is that they can put out the number of law enforcement requests and national security requests that they get over a six-month time frame, but they have to reveal that number in bands of 1,000, and they are not allowed to strip out the strictly law enforcement-related questions, so a search for a missing child or a search for a person who has alzheimer's would be lumped in with a surveillance request by a national security agency, for example, so the companies are seeming a little frustrated here that they are not able to tell the whole truth about how many of these intelligence questions they get. nonetheless, they have put out within the past couple of days, some of the details on how many thousands of requests that they are getting. >> john, how -- how angry are the companies themselves out in silicon valley or microsoft, of

course, up in redmond, how angry are they, and how really meaningful would it be for me as an individual to know that google had received "x" many requests for "x" many documents over "x" many months. what does that really tell me? what i care about is whether my phone number is in there or my internet search was in there. >> they are really not happy, not being that vocal about it for understandable reasons. because in part there's not that much they can do, but what's emerged over the past few days is a couple of different tacts that they can take. one is technology encrypt crop. apple saying in its statement saying we encrypt imessage and face time, that's their messaging and video chat sessions. we don't even store that on our servers so we can't give that over to the government. also interestingly, they say location data map searches, siri

requests, don't store in identifiable form, but, on the other hand, the companies that do store them, google, facebook, they are in a slightly more difficult position of explaining this, so that's why they want to at least let people know here's how many thousands of requests we get. it's a very small percentage, to give you the sense that chances are your information wasn't access the. we can't tell you exactly, but there's a rift here. some companies putting out that information, google and twitter saying we don't want to put out criminal information and the national security information at the same time. >> eamon, what would have happened if these companies had said no? i'm not supplying this. they would i guess have been in violation of the court order from that secret was it fisa court or whatever it's called? >> secret intelligence court. >> and could have been charged with contempt. >> right, exactly. at that point there's an open question about what would happen because that in theory would be a secret proceeding, but i'm not sure how you could have legal consequences against a u.s. company that are themselves

secret if they involve, you know, for example, jail time if you have an executive just outright refusing to cooperate under u.s. law. edward snowden, the nsa leaker here, just concluded within the past hour or so an online chat which was astannishing in and of itself given that he's one of the most wanted men in the world right now in which he raised this question of what would happen if facebook and google and microsoft had simply said no to the u.s. government raising a debate about whether or not they should be involved in some kind of civil disobedience here and raising a question of whether u.s. companies should ever pick and choose which u.s. laws they are going to follow. that's a very meddlesome problem. >> this is an ongoing story sort of that keeps on giving in some sort of way of speaking. we want to know what you think in today's yahoo! finance poole poll. we ask should silicon valley push back against government surveillance? 50% say yes, my privacy shouldn't be compromised.

17% say no, they should comply to benefit national security and 33% say i'm more concerned with my information that silicon valley is selling to advertisers. sue? >> ty, thank you. we'll tell you about a big recall about vehicles that can catch fire while parked in your garage. that's straight ahead, and the paris air show getting under way where billions of dollars of deals are being consummated as we speak. phil lebeau is there with the details. back in two minutes time with the dow up 173 points. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients

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general motors' last trade is up just a fraction at 34.32. the automaker is recalling about 230,000 sport utility vehicles that could be a fire risk. that includes the chevy trail blairs and the gnc envoy. government safety investigators say that that fire could occur even while the vehicle is parked. this is an expansion of gm's recall last august to check

250,000 suvs for fire hazards. it's day one of the 50th paris air show in france, and the deals are apparently flying. phil lebeau is there and filed this report. >> here at the paris air show a big day with big orders being landed by airbus, boeing and embrair. airbus with orders of its a-380 totaling $80 billion. boeing's big order involved a couple of companies, first of all, qatar airways ordering nine 7 777-300 airplanes, worth $200 billion and another big order secured by boeing is to sell ten of its 787-10 dreamliners to ge capital. why is that important. well, this would be one of the first commitments to buy the

newest, largest version of the drim linier. the chairman and ceo of boeing says there's plenty of room for growth in the wide-body market. >> boeing is competing with a very broad product line, 787s and then above the 787s, the 7777s and airbus is with new products that they are bringing to the market. trying to sort find a position in between us at the high end and low end. going to be an interesting fight. >> that's the battle in the wide-body market. on the lower end, embraer announcing it's secured two orders for a total of 300 new regional jets. those jets will be powered by pratt & whitney gear-turned engines and the ceo of united technologies, the parent of pratt whitney, says he believes this is an aviation -- commercial aviation market that is geared to continue growing at a fast clip. >> oh, i think this is going to continue circling for the next decade or two at this momentum that's going to be increasing

demand for these narrow-bodied airplanes, regional jets as well as wide-bodied airplanes. >> overall a level of optimism in the commercial airport market here at the paris air show that we haven't seen in a number of years. in fact, to quote one analyst. you would think by now many people would be expecting the commercial airplane makers to dial down expectations. in fact, it's just the opposite. that's the story from here at paris air show. back to you. >> phil lebeau reporting from paris. >> money never sleeps, especially in hollywood. up next, a sneak peek at the wolf of wall street. martin scorcese's corporate crime story about the rise and fall of debauch ed stock broker jordan belfour. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile.

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promising a million galaxy owners first and foremost on jay-z's new album. smumg gets bragging rights and jay-z grabbed a $20 million deal and his album goes platinum automatically and samsung hitches a ride with one of the planet's most successful musicians. trying to figure out who this guy was and i knew i recognized jay-z. couldn't figure out who he was. wasn't lionel richie, but i new ferrell and rick rubin, what do

we thing here? give it an a-plus or what? >> a-plus. 99 problems but sales ain't one as jay-z might say. you're right. a million users immediately and what percentage would have actually bought, that maybe 20%, and on top of that you get people who are interested in potentially doing a bit more with the galaxy. i think it's a brilliant example of modern market, and i'm rearey impressed with that kind of stuff but this is smart. >> we're seeing disaggregation and aggregation, netflix comes up with its own. we'll see a lot more of that. >> hollywood's love affair continues with martin scorcese, with wall street, with martin scorcese's tale of a high-flying 1990s stock broker, belfort, "the wolf of wall street," "goodfellas" meets "gatsby,"

look. >> my james is jordan balfort, the year i turned 26 i made $90 million which really pissed me off because it was 3 million shy of a million a week. >> you know who that fugasy is? >> fake. >> it's a wazzy, woozy, fairy dust. >> objection bob, what do you think? >> we've seen this movie before. he ran oakmont, the pump and dump shop and went to jail for t.hollywood hates wall street, haven't liked it for years. when was the last time you saw a movie sort of entertaining about wall street not about evil people, maybe, i don't know, "trading places," my all-time movie, if that wasn't a funny movie about trading, i don't know one. >> i can explain why hollywood hates wall street. hate the fact that you're a great move director, you're a writer and you have to go to

guys with money to get your movies made. drives them nuts so hollywood has always had a resentment against people with money, especially bankers. they hate their dependence on it so it's a little way of working out the aggravation that they have. >> google, cooking up a plan to bring internet access to people in remote corners in the world of wi-fi-enabled balloons floating 12 miles above the earth. testing is currently under way in new englazealand. only two-thirds of the population have access to the internet because of the remoteness of them. >> i think it's one-third. 6.5 billion in the world, 2.2 billion have access to the internet. got to admire google. for all the argument we give them about their watching and monitoring people, google fiber is a brilliant idea. this is a brilliant idea. it's feasible because you fly above all of where airplanes are flying. is it immediately possible, no,

but this is a company that's really thinking big and thinking they can solve global problems. i admire that. >> john carney? >> i think it's amazing the way google keeps coming up with new ideas. remember the original weather balloons is what people thought were space aliens, and now google is really making it happen. the internet from space aliens. >> i'm sort of with both of you on this. god bless them for trying, trying anything. they go out there and really do try stuff. a few locks of mick jagger's hair is going to go on auction. perhaps the only chance i get to say it's only lock-'n roll. >> the value here is someone is going to try to clone mick jagger, take the dna in the hair and come up with mick jagger 2.0. >> bob, what do you say? >> already handed. a clump of elvis presley's scalp when he joined the army was taken ald sold for 18,000 in

2009. and a piece of britney spears' chewing gum put on but taken off and toast that michael jackson had was put on -- look, can you find all source of weird people who want weird memorabilia. >> all right. next a lock of joe cronin's hair. mark my words. thanks a lot, guys. >> i have to follow that? thanks, ty, very much. when we come become a look at what the traders will be watching ahead that have two-day fed policy meeting and the news conference. the dow is up 166. we're back in a moment. [ shapiro ] at legalzoom, you can take care of virtually

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axiron. let's get you up to date on the markets, up 171 points just off the highs of the trading session, up better than 1%. the s&p 500 also up better than a percent at 1784 to the upside, and the nasdaq is leading the charge today. it's up 1.25% or 42 points on the trading sessions. in terms of what everybody is going to be watching going into the fed meeting, tyler, there's a lot of buzz down here that they are watching the ten-year yield a lot, watching the dollar/ien ratio and they are also watching the transports to see whether we get confirmation of the move in the

dow jones industrial average. as you can see, we have a full percent move in the dollar/yen today and interest rates are holding steady. >> and look at the ten-year which has come off the highs of last week off about 228 i believe and thereabouts, about 15/100. >> that's all today for "power lunch." >> a special edition of "street signs" now. and welcome to the special edition of "street signs." brian and mandy are off today. you know what happens when the cat's away. throughout the next hour we'll have an all-star panel of cnbc's finest lined up for you with kelly evans on the global markets beat. robert frank will talk high net worth and influence, josh lipton is all over stocks, money and investing and kayla tauschy is our wall street insider. so we tried to be different today. we weren't going to begin with the markets, but how could you not? stocks are on fire. the nasdaq is now positive for june once again. take a look at this. gains of more