i also like pfizer. second half, got to like the pharma names. i think pfizer can go higher. >> does it for us. have a great weekend. look forward to covering the second half of the year. "fast" following "options action" and "power" starts right now. lunchtime, boys. >> dig in. feels like i've been waiting here for hours for this show to begin. the last trading day of the quarter. what a wild ride for the markets. it has been this month, triple-digit swings, volatility. stocks eking out gains. will it be another roller coaster ride? the third quarter? now, defense stocks had a great quarter, a great quarter. many up double digits, a sector that just keeps going higher. despite fears about government, spending cuts, so is defense a way for you to make money, and we're not talking about playing defensively, obviously. different story though, of course, for gold. down about 25% in the past three

months. is it time to get back in now? what traders are saying about where gold is going in the second half of the year? sue is down where it's hot and happening at the nyse. >> that's right, ty, thank you. it is the last trading day of the month, the quarter and, of course, the first half. right now it's a downside day for the dow jones industrial average by 65 points. the nasdaq though is in the green by about one point or so, and the s&p is up three points. the dow was down over 100 points earlier, and that means that the dow has posted triple-digit moves in 16 out of the last 20 sessions in join, the most since the financial crisis, so that volatility certainly heating up. the dow is up about 15% year to date making the blue chip index poised for its best first half since 1999. for the quarter though, the dow and the s&p are up about 2.5%. the nasdaq was the biggest winner there, up 4%. however, the major averages are set to post the first losing

month of 2013 unless the dow really betters its position. the dow, nasdaq and s&p down 2.5% or more in june. as for gold, steady today but plunging 25% over just the past three months, breaking below 1,200 earlier, and we have a lot more on that story coming up in just a bit. as for treasury, yields on the benchmark ten-year note, soaring 35% in q2. right now we're at 2.53% on the ten-year. as for the vix, the fear index ticking lower today, but recently because of the volatility that i just mentioned, it spiked to its highest level of the year. a lot of people want to know whether the volatility we're seeing now will continue into the next half of the year. joining us kenny polcari, a cnbc market analyst and michael yosikami, ceo and cnbc contributor. nice to have you here. kenny, abigail doolittle said volatility is one of the reasons why she sees looking for a 25%

to 35% correction here. do you think the second half is going to be as volatile as some people are saying it will be? >> i think it's going to be volatile. i don't necessarily think it will be so volatile that we see a correction of that magnitude. i think we'll continue to see volatility as we move through the summer and into the fall, but i do suspect that the fall is going to be a better half. >> all right. michael, do you agree with that, or no? >> i agree. i think volatility is -- you know, i think volatility actually is here to stay. you know, even thought vix calls down for certain periods of time, maybe a month or two, i think we're in an environment where technology connects us, the markets are globally connected, the federal reserve as well as monetary agencies are all manipulating the markets. i think investors need to recognize this reality. volatility is never going away. it's going to be a permanent part of investing, and you need to make sure you adjust your strategy, accordingly. >> let's talk about the fed because there seems to be some management of fed speak going on

today. >> yes. >> and i'm trying to say that politely, and some say that there's damage control going on from the fed. how do you read, it michael, because we're seeing fed member after fed member come out and say the market misinterpreted it and overreacted to it. i'm not sure whether it was better in the greenspan days when we didn't know what they were doing. >> here's the problem, what happened after bernanke made the comments a week and a half ago it really set the efforts back of the federal reserve to increase the wealth effect which you ascensionly had was a huge selloff in fixed mcand huge selloff in equities and the bottom line is if rates continue to go up as they have with the 30-year mortgage rate going up, it's going to actually undo some of the quantitative easing impact that already has occurred, so they are trying to talk it down. i think the market probably did misinterpret it. we've been kind of an outlier and felt that kweegz would be here all yore and probably start to taper off year end and maybe first quarter of next year. that's what bernanke said, but i

guess everybody was much more freaked out about his comments than we were. >> right. >> i think we're going to see the ten-year treasury move back to 2.2. >> what you had was this anticipation as we moved into that fed meeting and everybody was wondering. there was so much chatter and talk about it, that people got themselves all worked up, and when he came out and had his conversation, they heard what they wanted to hear versus what he was saying so the damage control is everyone going back trying to reiterate that he didn't really say we're pulling out. all he said was we're data dependant, and we saw what happened in the global markets. >> gentlemen, thank you very much. michael, we put your picks up while they were talking so they got out there to our viewers. thanks so much. appreciate it. thanks, kenny. >> ty, up to you. >> thank you very much, sue. blackbury, as you probably heard, getting creamed. look at that, down 25% today at $10.80. handset-maker, 13-cent quarterly

loss reversing a 6-cent a share profit from a year ago. seema mody has come off her blackberry for a couple of minutes to file this report. >> take a look at this chart and that's the story that we're looking at right now. expectations were just way too high. shareholders bought into the practice that blackberry staged a full turnaround and this would be the quarter that we'd see not just good but strong results and that wasn't the case. blackberry reported a surprisingly quarterly operating light citing venezuela currency restrictions as a restriction and ceo thurston heinz says it will anticipate a lott loss in the second quarter. q1, blackberry shipped 6.8 million devices and 40% came from its new bb $10 phones and another says it's too early to pass judgment on the conference call the smartphone market remains highly competitive, the

turnarounds take time. blackberry still the laggard in the space making up 3% of the worldwide mobile space by operating system market in the first quarter of 2013. on the call heins spoke about how they are focused on capitalizing on the mobile device management system space, bes, which analysts say could see heightened demand as more employees bring their observe device to work and the cool kids in technical it byod, bring your own device. >> exactly, and the system will accommodate it, no matter what it is. >> exactly. >> and they think they have a chance or edge in that area. >> really focusing in on that. >> let's bring in a couple of experts, one covers blackberry for william blair and has a market perform or hold rating and also joining us is cnet editor scott stein. thanks very much. let me begin. i instantly grow suspicious when a company chalks up its problems to currency restrictions in

venezuela. that like seems i'm trying to hang it on a thin hook there. >> you're absolutely right. for many of us, and investors going into the earnings, people thought that this was the end of the beginning, but now it appears that this is the beginning of the end for the can. you're right. there were three metrics. people were looking at subscribers, gross margins and blackberry 10 sales. all three were very disappointing, and analysts like myself who have been cautious on the name for quite some time thought they would benefit from pent-up demand, some inventory fillup, but that was not the case. >> scott, this may be the beginning of the end. is this a company with a future or only a past? >> i'm still surprised that they are even being talked about as a factor. i see them as outdated in terms of their very concept. i don't want to say it's like a fax but do i feel like, you know, they thrived off a period

of time where communication technology and phones was not widespread, and they still have great services, but you're dealing with at portals already dominated by ios and by android and also samsung, and the fact that they are trying to launch and support app development, they themselves are more like an app than they are like a phone, though their hardware is good. that's not problem. there's just not enough room for another market in, that and that service that they are providing can be gotten in so many other ways. >> the hardware is to my -- i use a blackberry and have an android phone for my personal use. the hardware is good. it is stable and durable. it works. it's reliable, but it's not really distinguishable from the things i can do on other platforms that make other things so much easier. does this company -- how does it -- what's the next adder act here?

>> that's the billion dollar question. i do believe they are caught between a rock and a hard place. what used to be their strength of vertical integration as you rightly point out, the integration of hardware and software is turning out to be their liability. they spend a lot of money in building up their own proprietary hardwares and that's become an issue. i think the key question going into the meeting next week will be does this company continue supporting hardware devices or decouple its hardware business for its software and services business? that's the key question, but you're absolutely right. it's becoming a me too product, and it's too little too late in many ways. >> folks, thanks you very much. a little pressed for time there. thank you very much. sue? >> thank you. >> all right, ty, corporate news to tell you about. ack accenture is getting pummeled. the results weighing on accenture. it's down better than 10%,

almost 11% now. ibm is down better than 2%, almost 3% on the trading session. incidentally, big blue is the worst dow per former during the last three months. finish line moving higher in today's downside session. it's up 4.5%. the athletic and shoe company saw its first quarter net income fall 59% due to startup costs from its tie-in with macy's, but it still did beat the street forecasts. finish line also cut a deal with macy's to put its shoes in hundred of macy's stores. and google, last trade on google is up about a third of a percent to $879.90. the search giant is developing a video game console and also a wrist watch based on its android operating system. that's according to the "wall street journal." ty? >> thank you very much, sue. rupert murdoch is splitting his media empire into two companies, and that happens after the bell today. news corp. and 21st century fox. which of the two are analysts more bullish on?

the electronics side of the business or the paper, print side of the business? as we go to the break, a look at the best performing sector in the first half of the year. it is health care, there you see it. first half of the year, up 21%. we'll be back after this. ttrade, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." ♪ ♪

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molly corp is moving high in today's session by a whopping 8%. the s.e.c. has completed an investigation against the company and has not recommended

any enforcement action. ty? >> all right, sue. we've got two pieces of key economic data that are sold early to insiders. the chicago pmi and the consumer sentiment index out in michigan. free and fair markets? i'm an -- eamon javers with the numbers. >> reporter: we got a chance this morning to see the weird moment that happens when the people who pay for the subscription data have access to market-moving information about three minutes before everybody else. that's what happened at 9:42 this morning when the chicago pmi went out to paying clients. take a look at the ticker of the spy and you'll see what we saw in realtime. saw a dip down as investors got a sense that this was going to be a disappointing chicago pmi number this morning, and that was the case for about three minutes before the rest of the market could figure out what had happened. we were live on the air at the time and just kind of remarking how strange it was to have that moment where some investors knew

what was going on in the marketplace. others did not, and then also later on in the morning we saw the university of michigan's consumer sentiment number come out. that one is sold early to subscribers just by two second so the high speed guys are the ones that can take advantage of that. two seconds an eternity in high-speed trading. ironically this morning we didn't see a lot of activity at 9:54.58 which is the time frame where they release that ahead of the 9:55 release to a broader audience. sue? >> thanks very much, eamon, appreciate it. news corp. splits in two days. on monday 21st century fox will trade separately. the stock of news corp. up 25% year to date, today it's down a bit but it's a negative market. julia boorstin joins us next with what's next on the two companies. hi, julia. >> reporter: hi, sue. rupert murdoch's fast growing cable tv assets as well as its movie studio will become part of the new 21st century fox. the publishing assets which are

slower growing than the company called amplify will remain part of news corp. it's being called one of the most robust earnings growth stories for media for the next three to five years. the new fox says market value is about $67 billion. it's expected to benefit from growth, from international and domestic cable channels and the launch of a national sports channel fox sports 1 in august. goldman sachs projects the new news corp. will have a market cap of nearly $10 billion. the paper is including the "post" and "the sun" have suffered from ad declines and the current scandals. the publishing business is being left with a $1.9 billion net loss in the last fiscal year, but rupert murdoch is leaving news corp. with a gift, $2.6

billion in cash and no debt. that's in stark contrast to the debt on rival publishers' balance sheets. the company can use that cash to snap up newspapers like the "los angeles times" and to buy other education startups. rupert murdoch is hoping that the pieces, both of these separate companies will be worth more than the sum of the parts and so far, sue, it's look good. back over to you. >> indeed it is. thank you, julia, very much. intel's new ceo and new president holding their first on the record chat with a small group of reporters and jon fortt was the only broadcast reporter in attendance so, jon, what did they say? >> reporter: just got out some really interesting things, sue, about strategy, both in the chip level and the intel tv project we were hearing more about, the ceo saying it's right now in testing. about 1,000 of them are out there, but he's cautious. not being cautious about the tv product, figuring out business model. they got a game-changer

technologically, they think, but they are not sure exactly how it will work in the market. he also talked about their foundry business, whether they will make chips for other. a lot of speculation about whether they might be able to pick up apple's business for something as big as a smartphone, iphone or ipad or whether intel would be willing to do that. if an important customer asked us to take over, we'd consider it, of course they would like to make chips based on intel architecture. google glass was also in his backpack during the breakfast meeting saying he expects washls to be a market in offered magnitude ten times bigger than the smartphone and tablet business and it will be smaller on a dollar margin basis. he believes the opportunities are big there pushing the organization to move faster to get products ready for that. he also said that he's going to have a customizable atom chip ready the end of 2014. sounds to me like this option would allow a customer like

apple that's used to tweaking chips, designing its own chips for its own devices, they would be able to use an intel atom core and get much of that same benefit. they have done the biggest reorganization inside intel that's happened in a decade, flattening the organization. now all the pnls report directly up to brian kusenach and a lot of others report up, including intel architecture. big changes afoot. they are aiming at wearables, guys. back to you. >> very interesting changes. thanks very much. let's check out some of the major defense stocks. they have had a great double-digit run in the second quarter. seems as though they won't go down despite all the fears about government spending cuts, but will it continue in q3 and the second half? we'll talk about that coming up next. as we go to the break, the best performing stock in the first half of the year, believe it or not, is best buy, up 134%. out there owning it.

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here's had a to watch for in the defence sector in the quarter ahead. pentagon cuts are slowly nipping away at contracts so expect companies to update international plans. raytheon says exports could reach 30% of sales. united technologies scoresky says they could account for half. boeing, lockheed and bae are

competing for billion dollar jet contracts in brazil and south korea but others are transitioning to more affordable high-tech, software and sensors rather than ships and tanks. beware the nay sayers. last quarter, every major defense company beat expectations and the some even raised guidance. that's your qe4 sectornomics. i'm jane wells. >> more about the defense stocks taking off in the first half, up nearly 23%, despite concerns about spending cuts from the federal government so how will the sector do in the third quarter of the stock market performance? joining us on the phone is managing director at cowan & company. good to have you with us. >> you heard what jane just said. do you expect this good performance from this sort of semi sector to continue in the third and fourth quarter of the year? >> i think it's going to be more difficult. the sector really kind of had perfect day in the sense that there were a number of factors i

think that bolstered it, particularly in the second quarter. you didn't see any impact of sequester in the numbers, contract or execution continued strong. you saw investors wanting to move out of bonds into dividend-paying stocks and shareholder friendly initiatives, north rub said they will reduce it by 25% and also rising interest rates, not really a negative because it helps pension cash flows and you don't have any real cyclical exposure here. >> so what flips in the third quarter and into the fourth quarter to make that rosie scenario turn somewhat less rosie? >> well, i think some of those factors could continue? one of the issues is i think sequester will have more of an impact as we go into the second half. for the weapons producers there's long lead time so you would expect no impact next year. the second point is, that you know, the potential for a grand

bargain looks like it's slipping away so we'll face sequester next year so i think that's a bigger issue that the market may be ignoring. >> do you have -- well, very clearly stated, cai. any stocks in this sector that you're particularly fond of right now? >> i'd be selective. two names i like are general dynamics because you have a business jet play and because they have more cash flow power to, you know, pursue share herald initiatives, and faic, a company that's doing a spin now and paying a special dividend of $1. >> thanks very much. have a great weekend. >> thank you. >> managing director at cowan. sue? >> ty, as you know it's been a horrible month for gold and another lose quarter in a big way, down 25% in the past three months. we broke key technical levels as well. prices are just about getting ready to close. we'll find out what traders are

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it is the last trading day of the quarter and gold

suffering its third straight quarterly loss, down in q 2. sharon epperson is tracking it over for us. >> what a week it's been for gold and a quarter as well. looking at gold prices after having fallen to the lowest price in three years overnight, around 1,180 an ounce, gold prices closing up around $11, around 12.23 an ounce. still been a horrendous month and quarter for gold prices, particularly the last two weeks have been brute ashls and a lot of the tapering concerns that a lot of traders have about what the fed will do next, that's contributed to the selloff that we're seeing in gold, but other factor that many traders point to is the fact that we're seeing heavy selling in the exchange-traded fund market and the gold market may be exacerbating the price slimptd one of the traders with that view is tom who joins me now on

the floor. how much do you think etfs played a role, a 25% decline in the last three months? >> i think you had fundamentally it started in april where people were unloading hedge funds started to sell, but once he broke that 525 level, a lot of people -- 1,525, a lot of people under water and investor pain, you're seeing liquidation, saw it in april and may and now at the end of this month. >> why has it been so bad the last few days? just the end of the quarter? >> it started with the credit crisis in china, and we had the $50 drop, and you start breaking through levels where people are long and it's too much pain and have to get out. especially before the end of the quarter, people want to take their pain and get it over with and start the new quarter fresh. >> sue, you have a question for tom? >> we had kind of a bull/bear debate the other day on gold and the bear in the group is looking for gold to break down

technically and fundamentally. he's looking for 700 on the precious metal. is that too extreme? >> has his case and a lot of good points. the only issue is we like to look at technicals and there's a lot of really important numbers in this area because we're looking at monthly charts and this 1,155 area is a big retrace president. we like to see how it reacts before we look at where it's going. look at how it reacts here. feels like it may goo sideways. a lot of people lost money and a lot felt gold could never go down so that pain will create an issue where people may not get back in again, even if it goes higher. >> how much has the jawboning some would say damage controls, others would say, by the fed members caused volatility in the gold market? how much is that contributing to what we've been seeing in terms of the velocity to the downside? >> i don't think reason at this point that's a factor. i think this is more supply and demand.

this has alot more to do with the pain people are taking and they want to liquidate and get out. margin clerks sharpening their pencils. initially the lack about the fundamentals and disinflation had cause it had early, but once you start breaking through the levels where people are underwater, these are going to get out of trade. >> do you think, tom, physical demand could provide any type of support, a floor here for prices to stop going down? >> well, it happened before where it was temporary. happened in april. they came in and bought it, and a lot of it, but once it was satisfied, the shorts come back in and they can push it low pressure system once those people step aside. now they will come back in at lower prices so you'll always get the stop declining at these levels because it's cheaper. >> there you have it. >> thanks, tom. >> more on the physical demand side of the gold story coming up owns signs. back for you. >> look forward to that very much, sharon. thank you. all right. the dow is holding up quite nicely given where we started out and josh lipton joins me at

post 9. a triple-digit loss to start things off and now we're only down 49 points. >> a volatile session. blue chips well off session lows. mixed economic data and more fed speak, five already. >> a lot of fed speak. >> six fed speakers in two days. some saying a little too much communication, and some trying to gauge where the market is headed. the big theme of this week is central bankers stepping up and maybe easing concerns about taper talk. blue chips today, you guys have been talking about, it ibm and analysts worried about acken tour, the consulting firm and whether the results will present headwinds. utilities, consumer discretionaries and laggards, tech, accenture, csm and tdc and end on the gold stocks and a lot of these names have been slaughtered recently. look at the gdx, showing some

bounce. that etf is down 50% so far this year. >> that's been brutal. josh, thanks so much. appreciate it very much. >> up town now to the nasdaq where jackie d'angelis is following the big movers. >> reporter: good afternoon, sue. over the flat line here at the nasdaq but let's start with noodles, a spectacular performance for the ipo hitting an intraday high of 37.69 after it priced at 18 which was above the expected range. this ipo doubling on its first day of trading, the first ipo this year to do that. shares of blackberry down 26.5%. of course, on those dismal earnings, but also watches the suppliers. we're seeing texas instrument down most of the day, stm and synaptic getting beat down by the blackberry numbers. biogen leading the nasdaq numbers higher, a pop of 5% and on news in the eu that competitor sanify got an

exclusivity ruling for one of its drugs and biogen is looking for the same thing for its ms drug. not given it but investors are hoping there's a reversal of that. media companies, comcast, directv, dish, these companies are trading higher and dish, of course, continuing to pop after it withdrew its 440 bid for clearwater ceding to sprint. back to you. >> thanks very much, jackie. now to the bond market. rick selly is tracking the action at the cme and everybody down here, rick, is obsessed with the 2.5% level on the ten-year note. that seems to be what all the talk is about today. >> yes, a huge psychological level. might not be as important and may be a moot point, but pretty much this whole session has been above the yeeflields of yesterd

2.40 close. we're hovering around 2.52 but what's really weighing on trarsd is the 2.61 23-month high and how snug we've maintained to that close and foreign exchange, hard to separate the two. i haven't seen traders so enamored with the positive core las vegas yields in the dollar in a while, and the dollar index behaving in a much more similar fashion to the strengthened rates than it has to any other variable over the run of rising rates the last month and a half. >> yeah. and it used to be that they were obsessed with the dollar/yen and that particular trade. how is that looking at this point as the dollar continues to show that kind of resilience and strength? >> well, you know, i think since they are both married at the hip according to traders i'll give you the bad news first. unlike some of the most famous bond fund managers in the world, traders down here don't like picking bottoms in price meaning they are not surrendering the

notion that raids are going higher to lower. they still think they want to find spots to sell. they believe that the range is going to be a new range, and it doesn't not match up with everybody on the conventional wisdom side. they are looking for 2.25 to 2.75, but i guess the difference is they think they will spend a whole lot more time at the upper end and later in the year they do think europe is going to give us some safety buying that will bring back a sponsorship that we've seen disappear. just look at the direct bidding in some of these auctions over the last six weeks. >> uh-oh. safety bid. that means volatility is coming back, ricky. thanks so much. appreciate it. >> thank you. >> ty, up to you. >> all right, sue, the marijuana mom has been arraigned. andrea sanderlins accused of operating a marijuana warehouse in new york worth more than $3 million. mary thompson was at the arraignment. >> reporter: the 45-year-old suburban mom pleading not guilty

to two drug-related charges. her arrest back in may drawing comparison to the drug dealing mother on the tv show "weeds" comparisons her attorney downplayed to the press. >> this is not life imitating art. this is real life, and miss sanderlin would like to fight this case in a court of law. >> reporter: flanked by her two lawyers the blond-haired mother of three respond together judge's questions in a quite voice during the ten-minute hearing. her lawyers describe her since jailed on her arrest on march 20th very sad to be away from her daughters. 39 and 13-year-old girls are currently staying with relatives. she also has an adult son. last month in a warehouse in the new york city borough of queens that was rented by her company fantastic enterprises, police confiscated $6,000 in

cash, dried marijuana and 2,800 pot plants worth at least $3 million. the pot-growing operation allegedly funning her high-end lifestyle that included a leased 5,500 square foot house, three cars and a horse that she rode in competition. the bail hearing is set for next week and, of course, her lawyers are hoping she will be released after that hearing. however, she is convicted, she faces up to ten years in prison and a $10 million fine. back to you, sue. >> thanks very much, mary. sears becoming the latest corporation to sever its ties with paula deen saying it will faze out all products tied to her brand. ford recalling more than 13,000 2013 ford explorers because the child safety lock on the rear doors may not work properly.

ty? >> sue, the american ceo held hostage by workers over in season is now free and back home in the u.s., and he spoke to cnbc about his ordeal. listen to what he has to say about what's going on in season after our break. plus, google taking on microsoft and playstation. they report it's developing its own game console, but will it play with consumers? before we go to the break, a look at the worst performing sectors in the first half of the year, and that would be the materials, down 4%. [ male announcer ] my client gloria 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.

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china in the quarter ahead. after a slowdown in the past few months, everyone is waiting to see if the economy will weaken even further and by how much. people are growing increasingly concerned about a credit crunch here. many are wondering if china's financial sector will come under greater strain if the federal reserve tapers its stimulus and the u.s. and china will be meeting in july. will the two largest economies be able to reboot its relationship? >> the power rundown time. joining us jane wells and kayla tausche. welcome to both of you. let's start with the american executive chip starnes who has returned to the u.s. after being held hostage in china in a payries beaute. he discussed his ordeal earlier today on "squawk box." let's take a listen. >> i don't know if at the

particular moment it would be wise for me to go back. not too happy. i've got partners and cfo. there's some issues that need to be dealt with head on, and right after this this morning i'll be heading into the office to begin that task. >> he also says he sees a shrinking labor market and rising costs over there. jane, is this a signal that it's just too doggone risky to do business in china for some american companies? >> i don't know, because, tyler, there's something about that guy. i don't feel like i'm getting the whole story in this particular case. he didn't ever really act like a hostage over there. could be a reason for that because he's a lot more serious now. i don't know if we can make broad predictions though i'm putting off my plans to opening up a black market franchise chain. >> i feel like there's something we're not learning here or know about this whole situation. kayla, to the broad question. if this is as the eye sees it, and he was taken hostage in a labor dispute, doesn't this say

that there is insufficient rule -- and he ended up paying a ran some, that there's unsufficient rule of law to feel confident about doing business? >> i'm waiting for jane to open up a kfc franchise in china but he seems incredibly well adjusted but if it's -- he said i've got a cfo there, a few partners but if you don't have the big multi-national infrastructure to give support, who knows how much this company makes in revenue, $600,000, i'm sure that's making a dent in the bottom line. >> google reportedly developing a video game console that will be powered by android operating system in an attempt to buy the internet giant and tap into the $25 billion a year video game market. can google compete with playstation and xbox? kayla, you take and get the first whack at this one. >> well, i say, tyler, next move a. a lot of these things are things apple was rumored to be making, the longer it takes to come out

with some of these items it was supposed to have been making behind the scenes, google stealing their ideas and doing it quicker and faster and i'm interested to see, you know, what these products look like. it's a big market and i think google is doing the right thing. >> jane? >> well, i hope the watch looks better than google glass, but for me, do you really want a computer right against your skin in a watch? and as for doing a console, figure if microsoft can do it, we can do it and microsoft has outperformed google and apple so far this year. >> i'm sort of but we ear in the post-console world in gaming and so much more will be on mobile devices. if anybody comes out with a could be sole it had better be able, as xbox is and as the playstation, is to do a heck of a lot more than merely play games. better be able -- >> i want it to be called something different than a console. the little storage space in between the driver's seat and the passenger seat so i'm ready for a hipper word, too. >> a hipper word.

we'll think of one. we'll have a contest. >> market closing out first half with a double-digit gain. folks, is the economy strong enough to sustain the rally in the second half? jane, you first. >> i'm person to ask about this, really, no i'm not. i'll talk about what i do know which is california. a beta trade on the nation, look, our unemployment here which is still higher than the rest of the nation has come down dramatically. revenues and taxes are up but we're seeing job growth and we are seeing an energy boom in this state. california, i can't believe i'm saying this, is on the way back. however, the number one company in california by market cap, apple suffering more than anyone else. >> kayla, what do you think? >> i think if california goes down, jane is right the entire country will go down so it's good to hear that california is staying afloat, but housing is better than expected. consumer sentiment is better than expected. gdp worse than expected but that's a lagging indicator.

all signs point to green going forward. the market is not really rational at this point and they trade on whatever they are feeling when they wake up in the morning so it's unclear whether even if any of that positive data will make a difference at the end of the day. >> my instinct is that the market grinds in a trading range for the next two or three months and then absent any exogenous factors globally begins to move higher as we get into november and december of the year. >> exogenous? >> exogenous? >> outside. >> i'll look that up later. >> tyler, heard it here first. >> all right, folks. have a great weekend. >> yahoo!'s finance question of the day. we asked with the dow, nasdaq and s&p 500 all up this quarter and up double digits this year, what are you doing for the third quarter? 36% said i'm putting more money in the market. 21% said i'm taking money off the table. 43% say i'm sitting on sidelines. all right. let's see what's coming up on

"street signs" at 2:00 p.m. eastern time. hi, mandy. >> hey there, sue. it's a friday edition of "street signs." you've just been talking about the fact that google seems to be omnipresent these days, right? google maps, earth, g-mail, you name it and now the rumors it's developing the watch and a game console. our question is is it just spreading itself too thing, and what does it mean for the share price? also the summer concert season is here. if you've tried to book a ticket recently, you may be pretty surprised by the price. the business of concerts and what strategy will win. and also if you live in new york city, you've probably noticed just how many frozen yogurt places there, like on almost every block. we have the founder and ceo of one of them coming up on "street signs." guys, back to you on "power lunch." >> thanks very much. america's top states for business. we're counting down for you. before we go to the break though, a look at the worst performing sector in the first half of the year, and it was

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new jersey's governor chris christie is becoming a political

rock star, but his state hasn't been as popular when it comes to america's top states for business. can the governor win favor with business and our rankings? senior correspondent scott cohn has the download. >> reporter: new jersey governor chris christie is everywhere. he's running for a second term, maybe for the white house, and at the heart of his pitch business. >> we've held the line on taxes, and we've made new jersey a more attractive place in which to grow a business. >> reporter: under christie unemployment has gone down in new jersey, though it's still above the national rate. he's pushing $2 billion in business incentives and taking aim at new jersey's pension mess. so far it's not helping new jersey's top states for business rankings, 30th in christie's first year in office, 2010, the same in 2011 and then plunging last year to 41st. >> new jersey by contrast, they have very narrow bases and very high rates.

this means that some businesses are paying full freight, paying the -- the full rate and other businesses that are engaging in favorable activity are paying low rates. >> there's been some success. the state's economic development authority relocated nine businesses into the state last year, including the global pharmaceutical company allergen. as new jersey and chris christie look for the right exit off of the road south in america's top states for business. scott cohn, cnbc business news. >> ah, the turnpike. this year's top states for business. click topstates.cnbc.com. a big down day as we head into the last trading day of the month and it looks like it's getting better, now down 39 point. the quarter, of course, is ending. the winners and losers for you coming up next. [ male announcer ] the mercedes-benz summer event is here. now get the unmistakable thrill and the incredible rush

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the dow is only down 30 points and the s&p has moved into the green, not by much, but

it's still in the green nonetheless and the nasdaq is up 12 points on the trading session with a gain of a third of 5%. the dow and s&p 500 both up 2.8%. the top performer was microsoft, up more than 20%, the top performer in the s&p, first solar, almost 70% to the plus side and a top performer in the nasdaq, up 45%. gold for the quarter obviously a completely different story. the gold market for the quarter down 25%. the yield for the ten-year note in terms of a quarterly performance, we've seen spectacular gains there, a gain of better than 36% on the ten-year yield. ty? >> that gain in the yield is a gain in the yield and masks something people don't like to see which is, one, eroding underlying value of the bonds they own. >> that's right. >> and higher financing costs for businesses and the u.s.

government as well. that's why people are concerned about it and that's the number probably to watch in the next quarter. >> exactly right. >> all right, sue. >> great weekend, ty. see you when you get back here at ingleside cliffs. >> that does it for another week of "power lunch." >> "street signs" because right now. >> it is the last day of the quarter and the final day of the first half. so throw out your old game plan and we have your playbook for the second half and blackberry getting a serious beat-down, down 26% right now as we speak. is there any silver lining here, and google stepping up its game, but could the search giant be spreading itself just a little too thin and is fro-y ott new cue?