murphy because i know he likes this one. i own it. >> mr. murphy? >> valero, the entire refinery space has gotten really hit hard and the stock is down now and just trying to get up to its 200-day moving average. if it does move above, that we'll see it move up to the 100-day. >> stick citibank. >> that does it with us. "power" starts right now. "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> well, looky here. a nice rally on wall street. home prices, new records there, home sales a five-year high. consumer confidence, five-year high. we're going to help you ride this market with some picks, old-fashioned stock picking this hour and we'll introduce you to wall street's new top cop. that what's on the agenda? we'll hear from him in a moment and what does $1 million get

you? what kind of house a cool million can buy you in different parts of the country. it's cnbc's million dollar homes sum edition. sue is down at the hot nyse. sue? >> indeed, it is, and we are rally mode today finally on the back. latest u.s. economic data that you just mentioned and some comments from china as well. right now the dow jones industrial average up 106 points on the trading session. the nasdaq is up 22 and the s&p 500 is up 13 on the day. the ten-year yield, last trade there is pegged at 2.582%, and we have auctions this week. we'll get to those in just a couple of minutes. first though josh lipton joins me on the nyse floor. good to see you. >> the blue chips are racking up triple-digit gain. two other things and you touched on them. one, china. yesterday, you had the liquidity fears, would a credit crunch slow down the economy and right now policy-makers step in and calm some nerves. also a lot of data, durable goods, consumer confidence, not

surprisely what is working today, the cyclical sectors, economically sensitive sectors, semiconductors and also the banks benefiting from a steepening yield curve and that better economic data suggesting an improving economy. the home builders, another sector we're watching closely today. new home prices beat. names like pom, hsb and lennar, felt lennar's ceo very positive, upbeat comment, and check out the housing-related names, and we'll end here with one in the red, walgreen, wag, a three-month low. same-store sales barely budged. 0.4% and the ceo talking about an economy that remains challenging. >> down almost 8% on the trading session. let's widen it out and bring in kenny polcariw o'neill securities and a cnbc contributor and hugh johnson joins us as well, chohugh johns

advisers. i'll bring you in first. what do you make of this rally, and have we seen enough of a pullback to make stocks attractive to you longer term? >> i think it's great to see a real, but quite frankly, sue, when we started all of this mess i thought we were about 8% overvalued. we've moved down some, that's good news, but we're still a little bit pricey. we're about 4% above the level that i think we should be at and the current quarter maybe 1.5% above the level that i think we'll be at the end of the year so a little bit pricey so we're still in the process of getting rid of that state of overvaluation. sooner or later, another 4%, 5% down in the market. we'll get to levels which in my judgment will be attractive, and then we can sort of resume or restart the bull market. all of this, all of this, within the context of an ongoing bull market. i still see no end. >> all right. kenny, i'll get to you in one second, but we have the auction going off the board. rick santelli has had a chance to take a look at it, a two-year up for auction today. how did it do, ricky in.

>> i'll give it a c-plus and we'll go through the internals, and some of them are all over the map. first of all, 35 billion goes off in an auction at .43. it's been a while. i think sometime in 2011 since you've seen a yield at auction that high. here's where it gets a little dicy. that's about where the wi was and really volatile. the ten auction averages, 3.63 and even though we've had a 3.04 at the last auction which wasn't a good one, you have to go back a ways to find another one so that was week. the indirects were strong at 35.8. the directs were extremely weak at 7.8, and i'll tell you what, it's hard for me not to look at that bid to cover and get a little depressed, especially at these yields. we didn't see more demand so we expanded to c-plus and have 5s and 72s and that 7 on thursday matches up very nicely to mortgage duration. >> we'll watch that very closely. thanks very much. kenny, weigh in on this.

hugh saying this is in the context of a long-term cyclical bull market which i think you've generally agreed with. >> i think he's absolutely right and today's knee jerk reaction is expected especially after the chinese authorities came out last night and decided to kind of rethink their whole central artery. right, even after it was their close. europe benefited and then certainly we benefited. we bounced off of the lows that we created the last couple of days. i think he's right. we'll hit our head here right about 1590ish on the s&p and then back off and test it a little further. i think we need to do that before we start to move forward again. >> hugh, what would you put in a portfolio right now? what stocks do you like within the context of a longer term trade? >> i think that you've got to go with what's been working or generally working when you look at the last two or three months, cyclicals have been working, consumer cyclicals or consumer disregularsry, the health care sector has been working pretty well and try to find some value in those sectors. i'm saying you can drag your

feet on buying stocks, but those are the three sectors which i would look at very, very seriously. >> ty, you know, sue, thank you very much. want to get hugh and kenny, boast your reaction to a hypothesis of mine and that is as monetary stimulus wanes whether it's here or over in china, even though they did some wobbling today, i wonder whether you were agree with the theory what is going to start to matter there now is basic fundamentals, corporate earnings, not just what they did in the last quarter but what companies say when we get into the earnings season week after next. do fundamentals matter more now than they did? >> kenny? >> i'll go first. i absolutely think, and i think that's why actually we've seen the reaction we have because there's a disconnect between the fundamentals and where the market is telling you are based on all this quantitative easing taking place around the world. as we start to wane, the market and the fundamentals will start to come together and they will absolutely play an important role, and as earnings season

starts in the next two weeks people will pay very, very close attention to what the forward guidance is. >> hugh, quick thought? >> absolutely. fundamentals will matter. don't forget, interest rates will become much, much more of an issue over the course of the next two to three years, so interest rates on the effect to price earnings ratio as well as fundamentals of earnings are going to count. two of them will count and count a lot, both of them. >> all right, gentlemen. thank you very much. kenny, see you in just a little bit. hugh, good to see you. >> my pleasure. >> thanks so much for joining us. >> new home sales, five-year high in the volume of home sales. home prices rising in april as well. biggest gain annually in seven years. this pushing home builders higher. lenary, by the way, reporting better than expected quarter liz on a 27% increase on orders. diana olick with more on the housing numbers from washington. diana? >> reporter: well, tyler, lennar's numbers were an early prem niflgts new home sales

numbers we got for may a few hours later. take a look contracts to buy newly built homes rose over 2% month-to-month to a seasonally adjusted rate to 476,000 annually. that's up 29% from a year ago. the bigger number for the builders was home prices, up 10% from a year ago. this is a big positive given that mortgage rates did start to pick up in may when buyers who have been putting the contracts together on these sales. the latest reading on home prices for the nation's top markets set new records in april which was before mortgage rates started to rise. the top ten and top 20 u.s. housing markets saw gains of 11.6 and 12.1% from a year ago on the s&p case-shiller index. we saw record monthly gains seasonally adjusted with all 20 markets in the positive. now, going forward, you will see more sellers listing their homes as prices rise and more buyers are looking to get in fast as rates rise. construction is still running well below demand.

housing completions are about at about 690,000 for this year but analysts excess demand that exceeds 1 million so you can see where this is headed, sue. >> absolutely. sure can, diana. thank you very much. well, after nearly 35 years at the helm nicky arison is out at ceo of carnival cruise lines, this after the company eco-ed out a second-quarter profit in part on lower fuel costs. the stock is up 4.33%. simon hobbs joins me with more on that. i don't know whether the 4.33% to the upside is because of earnings or because of mr. arison being out. >> his decision to split roles of ceo and chairman and relink wish one of them comes after carnival's big aging fleet cruise ships was hit by the string of high-profile problems. the billionaire, of course, continues to slash prices in order to fill his 100-plus vessels while spending hundreds of millions.

today's appoint mt. of arnold donald may leave arison free to watch more miami heat games, it's unlikely to signal any major change in strategy. no doubt mr. donald has an impressive cv, but he's already been on arison's board for 12 months and he remains the biggest shareholder and as he reminded analysts on the call he'll still be running the board. >> i'm not going anywhere. i'll remain as chairman and will continue in that role for the foreseeable future. >> the price has more to do with the decision not to reduce carnival's forecasts again after last month's profit warnings suggesting some stabilization of the business, although a lot of that has to probably do with the windfall, sue, of lower fuel prices. cruising was invented at a time when fuel prices were very low. >> absolutely. always good to have you here. let's talk about men's warehouse. currently that stock is up to

37.12. the company says it fired its chairman and executive chairman george zimmer who opposed the sale of the k & g fashion chain and raised some concerns over the ceo's compensation. zimmer quit the board on monday. ty in. >> shares of yahoo! moving higher today by about 3.5% at 24.92. the company holding its fir shareholder meeting. the stock is up about 60% during that time, so you would think that the shareholders would be pretty happy with melissa. jon fortt is at the meeting in santa clara. jon? >> yeah, tyler, yahoo! shareholders were pretty happy with marisa. talk a little bit about what happened during the q&a when she faced shareholders. as you mentioned, the stock was up today. seemed to rally during the meeting it.

mayers said there's updates in mobile and also she said workers in response to a question about working from home are more productive at home, but they are more collaborative in the office and that collaboration is what they need to build new products. now, i mentioned earlier that there's some protesters from walmart here because marisa mayer is on walmart's board and are concerned walmart is resisting their efforts to unionize and did address that in the q&a saying there's a time and place for all business. this morning's conference was about yahoo! and wall mort is separate. she heard what a couple of protesters had to say and then contact someone at yahoo!. the stock at yahoo! is up 60% plus for a year and ref lieu is still struggling. display advertising in the last quarter was actually down while the search is up, and they have

spent quite a bit of time here talking about that. >> two companies out with weak earnings. we begin with barnes & noble which is currently trading down big time there, by almost 20% at 1521. the retailer reporting its quarterly net loss more than doubled sales of its nook that continued to plunge. bad news on the nook, and it also forecast a sharp drop in business at its book stores. as we mentioned just a moment ago, wall street also moving sharply lower by almost 8%. the drug store operator posting weaker than expected quarterlies on falling revenue. pharmacy sales, however, have been strengthening. a couple of downgrades to tell you b.bernstein cutting its rating on netflix from underperform to market perform citing the wall street valuation and lazard downgrading coach

from boy to neutral. >> ty, come up next, a "power lunch" exclusive. the superintendent of financial services in new york is going to join us, and he's going after some of the biggest names in the business. can't wait to hear what you say have two minutes time. welcome to "power lunch." we're back in two. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. ♪ ♪ ♪

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the money was headed to the federal reserve bank in new york city. this is baggage mishandling. >> you can put it that way for sure and the fbi is trying to figure out who stole that baggage, $1.2 million believed to be in the belly of a swiss international flights that landed here on saturday. the plane from zur itch to new york landed at 2:00 p.m. and that's when officials noticed the $1.2 million in cash was missing. the cash belonged to a bank but they are not naming the bank. the money, all their 100 bills, were going to be sent to a federal reserve facility in either new york or new jersey and would be swapped out for new bills which would then be sent on to the bank's offices here in the area. a new york fed spokesman declined to comment. they don't know for sure if the cash was stolen here in new york as there's no sign of forced entry in that cargo contain err. they are looking to see if it vanished in zurich, but we're told where the money was loaded has tighter security and more

surveillance cameras in place than here at jfk. a whodunit as the investigation continues, whether it was an inside job and who made off with that $1.2 million in cash. back to you. >> josh than, thank you very much. we appreciate it. >> sure. >> new york's superintendent of financial services ben lawski had a busy month. last month he fined tokoyo's biggest bank $250 million from laundering money from iran, myanmar and sudan, and just before that he fined a unit of deloitte $10 million an band it had from doing business in new york state for a year for failing to properly audit standard heart. ben lawski is here with me now at post nine with an exclusive cnbc interview. a pleasure to have you here in person. as we say, you've been a very busy man, a you've taken a number of very key financial

taskses. i wonder though, the amount that bank of tokyo mitsubishi was fined, when you look at it as a percentage of its profits, it's a relatively low amount. do you think it's enough of a deterrent? would you like to see that increase? >> this is always something we try to balance, and it's a very difficult decision as a regulator and a little like goldie locks, is the porridge too hoot or too cold? a lot of people were saying wow, that's a lot more than people usually pay so when you're hearing that kind of criticism for both sides it means you're in the right place in the middle and getting the regulatory porridge right. i think we did what we thought was right. we're careful and diligent and really try to balance the needs to take the actions and make sure they serve as a real deterrent but at the same time you want the foreign banks in new york, be a very good example

for the economy. we want them to do business but not funny business so we try to do what we really think is right and have balance as we try to do what we do as regulators. >> i think most people would be very surprised, shocked, you know, dismayed to find that these financial institutions would do business with iran. how common is it? we've heard of standard charter, now bank of tokyo mitsubishi. in your experience do you expect to find more of this, or not? >> there are. there's no question and we have a lineup of other banks that we're talking to, people with similar issues. it's surprising there are so many banks that have done business with iran, other banks like myanmar, cuba and we'll stay on it. >> where does the fault line? does it lie in the corner office with a ceo of a bank not knowing that these operations are taking place, or does the fault lie elsewhere? >> it's hard to generalize, and

i think, you know, we take every case one at a time and look at the facts in that case. sometimes you can lay blame in the executive suite. sometimes it's lower down the chain, and i think every case is really different, so, again, it's hard to say one case to the next exactly where that blame lies, but i think as regulators we need to create real deterrents and send a message, doing business, for example, terrorism is not going to be nominated. >> my colleague kate kell wants to weigh in and ask you a couple of questions. >> thanks, sue. i'm curious. ten years since elliot spitzer shook up wall street with a variety of investigations among research and other things. you at times have been compared to him and having a more assertive style as a regulator, being able to break from the back, if need be. can you talk about your approach to cases and what you think

needs changes, if anything, in terms of the financial regulatory landscape. >> look, i think we approach our cases one at a time. each one we take seriously. i don't feel more assertive than anyone else. i have enough trouble to get my kids to listen to me at home, but we work hard and we try to observe other stefls in the most serious cases and when you deal with iran and potential sanctions, i think we're a little more nord. when i was a attorney in man atan, we worked with bankers, when you find out they are doing business with terrorist nations it makes your blood boil. >> in addition to freezing the finances that can help encourage

terrorist operations, what are other areas of focus that you would like to see within financial oversight? what rocks should we be overturning when it comes to regulating wall street and investments? >> well, i think one thing that we're concerned about now is what are we doing about the consultants and monitors used often by regulators when they find problems at banks to try and clean up those banks, and what we found is that those monitors and consultants are often getting very, very close with the banks they are supposed to be cleaning up, and not surprisingly we, therefore, find a lot of times their work is quite disappointing. now, a good monitor can be a great thing and really help clean up a bank. a bad monitor can actually be that much worse because they are giving regulators and others confidence that things are being cleaned up when they are note and i think that needs to be addressed by regulators themselves. we need to really think about

the triangular relationship between the bank, the consultant and the regulator, and it's something we're working very hard on in new york. >> we've talked about some very serious issues that you've taken head on and the league on. as we wrap up, what keeps you worried the most, of all the things that you have with all these big institutions. >> the thing that keeps us up at nice is to make sure we vice president missed anything big. in the past regulators have done that, but if we work really lard and try to be diligent and careful hopefully that won't happen. what keeps me away at night is things i don't know and we have to be rooking around the corner for the next new thing that could create problems in our markets. >> thanks for having me. >> up to you. >> very interesting. the risk of doing business in china is next on the agenda. the u.s. ceo is being held

hostage by workers in that country. we will tell you why. plus, what could be a financial watershed moment for china? all that and more on "power lunch." ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes.

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begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. dozens of workers in beijing have taken their american boss and locked him in the factory. don't get any ideas, folks. he's the co-founder and

president and he paid severance to several workers after laying them off and needs to outsource some of their jobs to india because of rising wages in china. the workers fear he's close the factory and he says he's no. the workers are letting him walk around on the ground but no further. the local police don't want to make a deal. cnbc reports this kind of thing is not uncommon in china and she got amazing access to the scene of the dispute. here it is. >> did you ever think you'd be in this situation. >> no, no, absolutely not. >> the first couple of days were very, very tough. nothing physical. more mental type of stuff going on and anywhere you walk, 14, 16, 18 people following you. >> an uncomfortable situation for mr. starnes. more on this story coming up in

the next hour on "street signs." meantime, short-term pain for long-term gain is the new chinese leadership says it's going forward with some tough financial reforms. our chief international correspondent michelle caruso-cabrera joins us with what's looking like a watershed moment in the history of this country. >> we've been watching now for a couple of weeks a credit crisis in the chinese banking system, been going on for at least two weeks, and we've been wondering what's going on and what's causing this? now and new evidence today sees exactly what we're seeing, could be a watershed moment in china's modern economic history. early this morning in the u.s., chinese central bank acknowledged in a statement for the first time that they had injebted money for some banks to stabilize the system and bring down what had been skyrocketing, short-term rates as banks struggle to find cash. also in the statement they said in the future they will step in again, if necessary, but only to banks which meet the following criteria. they meet the nation's

industrial policy goals and have prudent lend willing standards, support the real economy and this is my favorite and they display maturity. here's why this is a game-changer. to who have spoken with senior executives in the banking system say all of this is designed to slow down the level of questionable and poor lending. more importantly this is one of the first steps in true financial changes that will be instituted by the new leadership, president xi jinping. i mentioned that this could also be scary. that's because there's execution risks. they could make a big mistake that leads to a blowup of some kind and, tyler, it could also slow down the economy. it's expected to slow down the economy when you are remove credit from an economy even if you think it's questionable. >> in china, execution risk

takes on a different meaning, quite literally. this sounds very familiar to me, to what some. things that we had going on at the height of really irresponsible lending. a lot of off balance sheet stuff. over there they have the so-called shadow banking system which no one has a really big grasp on so we need mature bankers. >> lending to pawnshops, that kind of thing, and, remember, lending was skyrocketing even as the economy is slowing. >> mir shell, thank you very much. sue, down to you. >> all right, ty, we'll talk about some of the markets that are starting to glenn close close. the gold market one of them hovering at a new 52-week low. sharon epperson is thwakking the action. >> reporter: hi, sue. looking at gold prices closing down about $1, right around 1,275 an ounce and it's been a rather lackluster session. it's options expirations and that's why near the close gold prices have been treading water.

also positive economic data that pressures gold and gold actually came very close to a 52-week low, 1,220, the low of the session. what we're seeing in terms of the metal market is copper prices seeing a little bit of a lift. plattium and palladium up as well and some were saying the reason for the bounce there and supply issues once again is what we're watching. back to you. >> all right, sharon. thank you very much. we're watching the trading action here. josh lipton is once again down here post nine and we have a 69-point gain. we've lost the triple-digit move in the dow jones industrial avera average. >> i wanted to share. i was talking to the direct orf market over in london, and i wanted to share some data he gave that was interesting. alex gave me data that shows short interest in the s&p 500 is at the lowest level since his firm began tracking that data six years ago and he's feeling

this market has opinion pushed many ways by stimulus and a chance to place bearish bets on the fundamentals in that kind of activity. if you look under the head of the 500, the most shorted sector is telecom. frontier communications, wind stream, names there. household, the least shortest sector in light. data we got today. and semis, the greatest amount of short covering over the past four weeks, sue. >> very interesting. you would think housing products might be a little bit higher and when we saw the housing numbers this morning, that makes sense. >> let's go uptown to the maas damage. >> upbeat economic data helping to rebound in today's trade. the big mover. marisa mayer killing off its

shareholder. another big winner, continues to rise ahead of its highly anticipated report on friday. everybody wants to know how the blackberry 10 devices are selling. there's a sign today between positive and negative territory. lastly, i want to end on the nasdaq omx, shares spiking today. analysts say trading volume whether it's equities or treasuries have risen dramatically in response to the high market volatility which, of course, bodies well for trading exchanges. >> sue, seema thank you. back to chicago and the bond market. let's see where interest rates are right now. we have an auction that rick santelli didn't want to see. how is it doing? >> it really wasn't. a lot of auctions have been on the spongy side. just keep n mind, want to watch that level. something is adding up today.

look at 2s, 5s and 20s. all of these will be high-yield closes and for many, like 29s, 5s and 10s all going back just about two years. if you look at the dollar index, it's been firm as well what. traders can't reconcile is interest rate momentum keeps going to the upside. they think somebody's got to blink, either equities or the fixed income. we have a couple hours to see which. back to you, tyler. >> all right, rick, thank you very much. new details on the scandal that's rocking the irs, targeting by the agency, now wider than we thought. plus, home prices hitting highs. wealthy brazil i don't understand and chinese feeling the real estate sales in miami and new york and with fears about their economy. is a cooldown coming here at home? we'll explore that one after this short break. [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire.

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sprint shareholders have voted in favor of a sweetened takeover offer from softbank. the $21.6 billion deal would leave softbank with a 28% ownership of that company. canadian coffee and doughnut chain tim hortons is being asked

to alter its u.s. bank strategy. scout has a 5.5% stake in that company. more changes at navistar. its cfo will leave the company at the end of june. up to you, ty. >> to the scandal plaguing the irs. it's now becoming apparent that the agency's targeting of political groups is much bigger, much wider than we even knew. eamon javers in washington now. eamon? >> hi, tyler. the new head of the irs said yesterday he's completed his initial review of this irs political targeting scandal, and he said that some of this targeting actually went on a lot longer and lasted a lot later than we initially knew, but other details emerging over the past 24 hours suggesting that the irs political targeting in terms of what they call the be on the lookout lists or bolo lists intended to flag terms that would indicate political activity by a non-profit group or tax-exempt group included progressive or liberal sounding terms like progressive or occupy

or some of the others that would indicate liberal groups may have been targeted as well, if that's true that might take some of the steam out of this whole scannedal, tyler. here's the response now from the inspector jfnlt we talked to them this morning and got their take on this entire scandal. they said as we continue our review we've identified other criteria that used names and policy positions to refer cases. although these criteria were not used to select cases for review of potential political campaign intervention, we are reviewing whether this led to expanded scrutiny for other reasons and why the criteria were implemented. bottom line. this is all going to hinge on whether or not the liberal groups were subjected to the same kind of extreme scrutiny that the conservative groups were. if they were they had a wash in terms of left versus right and if not it would give a lot of credence to the tea party groups who said they were treated

unfairly here >> the data today was very positive, much of the demand fueled by rich foreign buyers. the question is will they keep buying, robert frank? >> the luxury condo towers in new york and miami may soon be feeling the ripples. which areas could take a big hit and which ones are actually winners. that's up after the break. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business.

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when you heard i would pay nice dividend paying stocks but in the new rising difficult send, is the dividend stock over. >> and we'll bring you some of that at the top of the hour and now back to you guys at "power lunch." >> areas of new york and miami are hot right now as wealthy brazilians and chinese snap up real estate there, but with the credit crunch fears over in china and stocks and fortunes crashing down in brazil, there's a cooldown possibly ahead. robert frank, wealth editor, here. >> that's a real fear. foreign buyers purchased $82 billion worth of real estate in the past year, about 9% of total sales but miami, new york and parts of california it's a lot higher. in miami the worry is about brazil. 12% of sales come from brazilians at some of the higher end condo towers, two to three times that number.

brokers telling me sales of condos between 200,000 and 2 million will be the hardest hit because they rely mostly on the upper middle class brazilians really hit hard by falling markets and the economy there. but the ultra wealthy in brazil may be looking to put more money into the u.s. for real estate for security reasons which could help the sale of those big multi-million dollar apartments and penthouses. many say they went to get out as quickly. a slower economy in general means fewer deals like the 6.5 million apartment purchased for chinese 2-year-olds. there's a large pipeline project aimed at the chinese buyers they and they don't come online for another two years so there could be a lot of excess capacity in 2014. some developers telling me chinese buyers are several months late on scheduled payments for the new apartments. that could get worse, tyler, if

the credit crunch in china continues. >> this affects the highest of the high end in new york, basically, right? >> not so much. even in the sort of 2 million to 3 million, the heist for the nationwide, in new york that's kind of the middle market and miami, the 200,000, 1 million, 2 million. >> not the high. >> in the ultra high, 10 million plus or 7 million plus and that may be okay. but that's sort of 1 million to their 2 million which is the middle, that could get hit. >> lebron's property down in miami will be okay in. >> he'll be okay. >> sue, back to you. >> we're keeping an eye on the president who is making a speech right now. making the speech on the steps of the old north building at georgetown and talking about his energy policy, among other things, and we will monitor the president's speech and we will also bring you those headlines as they become available to us. then we go back to luxury real

estate. what does $1 million get you? well, it depends on where you live. we'll show you what kind of home your cool million can buy you in different parts of the country. cnbc's million dollar homes summer edition coming up next. we went out and asked people a simple question:

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all day today on cnbc we'll show you what $1 million can buy you across the country. we sent six cnbc reporters to six different real estate markets to check out summer homes and we have super broker and resident expert on residences with us to crown the top house. hello, dolly. good to see you again. this is how it works. we'll show you two side by side million dollar summer homes, thar that is, and to make it more interesting we'll ask the reporters not to ask where the homes are, only dolly knows and she will reveal that. we've had two rounds so far, a million dollar home called the ocean duplex in hilton head, california, beat out a rustic retreat in jackson, wyoming, the better value, but in round two

it lost, it went down, the ocean duplex goes to michigan's woodsy estate. round three now, the woodsy estate takes on the porch palace in a mystery location. touring the homes are cnbc's courtney reagan and julia boorstin. >> this 18-year-old home is two store which is a finished lower level. it has a wood framed cedar siding and situated on half an acre of property right on the lake with landscaping designed by a matter of gardner. >> signature on just under half an acre the beach front home has a porch on all levels, a three-car garage, elevator and comes fully furnished plus there's a private path down to the beach. >> this kitchen has hickory cabinets and views of the lake. the home features a great room with cathedral ceilings and a wood burning fireplace. >> this house is 3,500 square feet, and the kitchen with

granite countertops and island includes stainless steel appliances, a wine cooler, two dishwashers and two ovens. >> the lakeside master suite is located on the main level. the french doors allow direct access to the back deck. there are five bedrooms and three and a half bathrooms with a reck room above the garage. >> the house has five bedrooms and four full bathrooms. the master suite has glass doors which open on the second level porch. the master bathroom has his and her science, a duel head shower and jacuzzi tub with view. >> all the amenities that you want whether a snow or water skier, a hot tub, sauna, covered deck, deckhouse for $997,000. >> the kitchen has three ceiling fans, a gas fireplace and floor-to-ceiling arch windows that open up on to a covered porch. all list for $1.02 million. >> i like them both, dolly, a

little partial to woodsy, but we'll talk more in a minute. sue, join us now, the woodsy estate and the porch palace, very different homes. >> beautiful homes. >> am i supposed to guess where they are? >> i think -- why don't you start with you guessing. i think the porch palace is somewhere like wilmington, north carolina, coastal carolinas, and i'm guessing woodsy -- do we know where woodsy estate is. >> weeds is somewhere in michigan or minnesota. >> what do you think, sue, last time you got them both. we were shocked. >> i was shocked, trust me. >> you nailed it last time. >> i would say that the porch palace reminded me a lot of like kiowa island, something like that, though i think the price tag for that might be higher. the woodsy -- the woodsy estate, i agree with you, i would say either wisconsin maybe, michigan.

>> woodsy estate which we know is michigan from our last round. >> oh, we knew, that we do. >> one more hirngnt. >> this town was immortalized by glen campbell. >> wichita lineman. >> galveston. >> galveston. >> galveston. >> galveston, texas. >> exactly. >> exactly. >> and it's an amazing, amazing home loaded with features, everything. it has everything from an ocean view, to lots of light to a three-car garage and elevator. >> and it's furnished. fully, fully furnished so with 290 a foot with furniture, it represents an amazing value, and the best part of the entire story is it's 45 minutes from houston. >> yeah. >> is that the boast part? >> yes, 45 minutes from houston. >> yes. 80% of all vacation home buyers

want to be within a really close driving distance of a vacation home and houston is booming. >> houston is booming. >> no taxes. >> no taxes in texas? >> do you think, dole, that it's appropriately price snid mean, is that typical that have kind of home in galveston? >> 2.3 months of inventory on the market in that area. >> that looks like a beautiful house. >> gorgeous, and the furniture is gorge out, finishes are gorgeous. i mean, this house is it, a winner. >> galveston, texas, hot down there. it's hot down there. >> but you're on the beach, ty. you're on the beach. >> sorry? >> you're on the beach. got sea breezes. >> exactly, exactly. >> galveston wins, and we go to the next round. >> the porch palace. >> the porch palace beats the woodsy estate. woodsy owl goes down. >> you're coming back next hour. >> and julia boorstin is the winner. >> julia boorstin, undefeated

right now. >> yeah, yeah. all right. going head to head next hour and dole back with another $1 million summer home in another mystery location. that's on "street signs," and later she will crown the top house during the "closing bell" with maria bartiromo. and thank you, dolly. >> thank you. >> good to see you again, always. >> galveston. the big winner in today's rally coming up when we return. [ male announcer ] we've been conditioned to accept less and less in the name of style and sophistication. but to us, less isn't more. more is more. abundant space, available leading-edge technology, impeccable design, and more than you've come to expect

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as we told you, the president outlining some of his energy initiatives, and he basically has talked about several things. he wants to limit carbon emissions, and he has several proposals to do that. he also sees that the keystone pipeline should not be approved unless it can be shown that it does not increase carbon emissions. those are two separate issues obviously but two that the president feels very passionate about. as for the market, well, we're up about 86 points right now on the dow jones industrial average. up triple digits, but the s&p has held on to a .75% gain and half a percent gain on the nasdaq. winners for solar, devry and bank of america and

hewlett-packard all with significant percentage gains led by first solar, up 6.66%. >> that does it for this edition of "power lunch." i'll see you later tonight when you present and i host look the business journalism awards. >> have a great afternoon. we'll see you tomorrow. well, apparently mom and pop didn't get the memo about global fears because a trio of data today proving the consumer may still be king. dare we call it the hopium hat trick, yes, we dare. and you may be thinking of finally selling your home because the market is better, and that may be the reason that we need to be a wee bit cautious on housing, we'll explain. plus, new footage of the american boss being held hostage by his own workers in china, and we let you know what a new study says is the sin