afternoon fares. i haven't seen anything fundamentally take the market off its highs. >> does seem like it's gotten a little squishy there along with the weather in the eastern part of the u.s. >> oh, please, yes. >> could only wish for the kind of rain we're having here out west where they are fighting those wildfires. >> yes. >> that would do it for this edition of "power lunch." thanks, everybody, for watching. >> we'll see you tomorrow. "street signs" begins right now. and the bulls are in charge as we kick off the second half of the year. well, today we get down to all the basics and sort through each sector to see who is going to be the breakout star. will it be stocks? will it be bonds, gold or maybe even tech? heat wave, reare deep in record-breaking heat out west, and we're going to show you how this severe weather, everything from your flights to the life and toys of summer, the one thing that you'll be seeing a lot of on the highway this summer, and guess what? a little bit of trivia time as well, what iconic electronic

data debuted this day in history. kids, break out leg warmers for this one. happy monday, everybody. it really is a happy monday for the monday. take a look at numbers, the dow and s&p enjoying their best day in three weeks even though we're slightly off the highs. the nasdaq is trumping both of the indices with its best day since april 16th. let's get right down to the trading floor, josh lipton at the nyse, rick santelli and the cme in chicago and sharon epperson at the nymex as well. josh, how are traders feeling down there? >> traders are pegging this move, mandy, on a couple of things, ism manufacturing not too strong, not it a week and cools off some of the taper talk and first day of the month means new money coming in. look at the s&p up thrown. in your benchmark gauge, what's work, materials, industrials, tech and financials. financials dominating by the way today's list of new multi-year highs. one specific mover for you today, mandy, onyx

pharmaceuticals rips higher. this becomes the subject of a bidding war for this cancer drug-maker. guys, back to you. >> thanks very much for that, josh. rick santelli, i tweeted this out over the weekend that investors pulled a record 61.7 billion from bond mutual funds and etfs in june or at least through june 24th. so once people have gotten over the statement shock and picked themselves off the floor, what are bonds going to do in the second half? >> i think there's going to be more of the same. i think the only thing we're in a quibble about is the rate of change. the rate of change since may has been rather substantial, and you have to look no further than the five-year to real understand, you know, many of the mutual funds publicly involved in. it's that part of the curve that really is aggressive, and just to put it in some perspective. we had a 63-point basis higher five year for the quarter, the same amount of basis points as the ten and anybody who studied fixed income in yield curve understand the sensitivity and duration should means much

smaller moves in the fives and tens. the fact that we're really the same really augers this you're probably going to see more anxiety by the general public in the mutual fund arena? sounds like i'll get the full playbook on bonds and stocks in just a moment. meantime, let's head straight down to sharon epperson at the nymex. you know, we're actually up on gold after a terrible quarter, even crude is moving higher. what gives out there in the commodities patch? >> well, we're certainly seeing higher prices across the board in many commodities and a lot has to do with traders watching what is happening in egypt and the protests there. that's certainly a factor that has lifted oil prices and we are looking at the highest price for u.s. oil in about two weeks time. we're also seeing perhaps a little bit of relief coming with the bottleneck we've had in crude supplies in the middle part of the country with a key refinery there and the spread between these two key benchmarks, brent and wti down to about five hours, the lowest spread we've seen in two and a half years. in terms of the gold price, yes, seeing a bounce in gold, up more

than $30 or so, and firmly above that $1,200 an ounce level and a lot of invest ambassador skeptical. gold has been in a bearish mode for a long time. worst quarter that we've just passed on record. >> more on the protests in egypt in just a moment's time. meantime, let's dig into our second half playbook, all covered from equities, to bonds, to gold and the metals market. which sector is going to be the breakout star in the second half? why don't we start with stocks. joining us today is a new face to cnbc. we welcome gideon king, ceo of loeb and king. >> pleasure to be here. >> will be harder to make money in the second half in stocks? >> what we've seen is a structural shift notwithstanding the fed's sort of attempt to reel in, their words. i think without a doubt you'll see a tug-of-war between rates steadily moving higher and stocks, of course, reacting to

the implications for that. >> so what advice would you give us? >> i think what you need to do is you need to follow money flows. i think you need to be event-driven as opposed to beta driven. i think you need to find industries that are consolidating and find stocks that may go up, you know, when they participate in that consolidation or actually the -- >> and what about the volatility? >> if you look at the broadcasting business, arbitrage, amongst other things and there are other players that are involved in that space. gray television, for example. the management team has publicly signaled that they like the seller's multiples in, 45 markets and top spots in 20 out of the 30 of their station areas, and i think that, you know, it's fairly cheap. they have signaled they don't want to be a buyer. they have signaled they would

like to be part of the consolidation on the seller side so if you follow money flows and consolidating industries i think you'll do good to be in stocks in television. >> great for the recommendations. in terms of the overall market, do you think we'll still end higher at the end of the year on the s&p this year? >> i think it will be heck of a lot harder to do in the second half what we did in the first half but i think we'll grind higher because i think stocks are reasonably priced. until you see banks trading at 1.2 and 1.5 times book value, i don't think we've wrung out the bull market fully. on the other hand, we'll have counterveiling force of worries about interest rates that are going to dog us from here to the end of the year, so i do -- if i had to make a bet, i would -- i would say that we will be higher, but -- but sparingly so, and with lots of volatility and lots of sucker punches from here to there. >> strap yourselves in. thanks very much for joining us. gideon king and talking 6 interest rates, why don't we move on to bonds. joining us now is james camp, managing director of eagle asset

management. i saw here in the notes that you said the first half of 2013 was the worst since 1995. does it get better or force from here? >> well, i think for the pure yield plays, it probably gets worse. and the reason that i say that, mandy, is there's a high degree of financial leverage in the system right now, and i think part of what the fed has learned by happenstance or by design is how vulnerable rate shocks these levered plays can be and i speak about emerging markets, high yield and levered bond funds so this trial balloon, if that's in fact what it is, has really rattled the fed and i think they are really expressing their concern about the riskier sectors of the bond market, but for intermediate bonds you're down 5%, 2%, maybe 3%, and i think folks need to look at their july statements really closely and if they are involved in what the called bond proxies, down 11%, 12%, this is a conversation they need to have. for the stuff that we do, it's not been particularly problematic, at least as of yet.

>> what about munis? they have been slammed as well. to what degree are they starting to look maybe compelling? >> this is a great point. municipalities took it like every other part of the bond market in may, but if we look in june, in fact, look at what's happened to yield ratios, they got very, very attractive. some of the etfs and co-mingled things that are very vulnerable to directional trades or flow funds got hit pretty hard and it actually invited crossover buyers back into the space. that we don't like illinois as a credit, the market had to back up the yields on that particular deal, a very large municipal deal over $1 brillion that traded well in excess of 4%. for a taxable -- tax-free instrument, that's pretty compelling. >> good to know. thank you very much for that. jim camp, meantime, let's take a look at what's happening with gold to round out our playbook. joining us now is the director of portfolio management at ultat capital. what do you think we'll see first in gold, 1,000 an ounce or

2,000? >> i think we're going to see 1,000 an ounce and that's coming from a commodity trader perspective. what you saw today was nothing but really a pullback, a relieve trade from that more than 5% move to the downside last week. a 2.5% move up today and commodity traders are seeing that as a breert. yeah, we have a little bit of support from the crude oil creeping towards $100 a barrel. i think that will put a short-term level of support for the gold, but more or less, i believe that gold with everything going on in brazil, syria and now egypt, i think it's become a safe haven asset just temporarily, and it's really a bounce. i think that the 1,000 level is something that banks are finally putting behind as a -- as a target instead of the 2000 for the first time. bearish sentiment is a lot higher on gold than it ever was. >> okay. just for a short-term trade then, it's acting like a

traditional safe haven investment, but talking of investments, longer term, where is it going? >> longer term i believe that, you know, it's no longer the safe haven asset that many people thought it was. i think if you look at markets, the u.s. dollar has become that safe haven asset, and, therefore, i think that gold has really lost its luster as far as the place for safety and, therefore, 1,000 is a lot more likely than the 2,000 you hit on, mandy. >> thank you very much for joining us. meantime, we have a market flash with jackie d'angelis. jackie, what are we looking at right now. >>? >> good afternoon, we're watching shares take a 20% hit after the experimental lung infection drug compared no better than one from novartis this. stock up almost 45% year to date. >> thanks so much for that market flash. >> on deck, we're monitoring the very latest out of egypt. day two of massive protests.

is this the start of a major market disrupter? last week we saw the highest jump in mortgage rates in more than 20 years that really has a lot of people wondering if they should be getting off the fence and buying, or even selling. our housing task force is going to lay out what to expect in the coming weeks, but let's take a look at what the markets are up to. it's a good rally day on the first day of the quarter, first day of the second half. we're up by 120 points right now on the dow and looking good for the other two indices as well. stick around. the day building a play set begins with a surprise twinge of back pain... and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ [ whirring ] [ dog barks ] i want to treat more dogs.

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. you are looking at live pictures of tearir square in cairo, egypt as millions take to the streets protesting the collapsing economy. just moments ago the egyptian military gave president mohamed morsi an ultimatum, you have 48 hours to get the country in order or we'll stage a coup. the markets, as you can imagine, are very worried that the army could close the suez canal. more on the situation from the ground. what are we seeing right now? >> reporter: pictures say it all really. the celebrations here following that army statement is what you're seeing and what you're looking at. chants, the army and the people are one, calling on president mohamed morsi to step down. they see this as the army finally making a move and making it clear that they are unwilling to accept the status quo as it is, the political polarization. remember that the army and

egyptian people have very long relationship and a lot of egyptians will passionately tell you that, and can you hear them say to us, well, i'm proud, basically going all the way back in history and even in the ouster of former president hosni mubarak in january of 2011, the military was instrumental. don't be mistaken. this is a game-changer and could potentially break the political deadlock. we'll see what happens in those 48 hours, whether the political parties are able to sit down at the table, but there are, of course, several risk factors, those focused on what happens if those 48 hours pass, what kind of role the military will assume and whether it can really bring all political parties together in some form of reconciliation. just the last note on the suez canal, we understand that the military has taken additional security measures over the past week to ensure that traffic goes on as normal, but at moment the focus is downtown cairo and it's a celebratory atmosphere, even

though there was some violence over the last 24 hours. >> thank you very much for that, and indeed it is a very critical next 48 hours. we real want to know what kind of effect these protests could have for us, and what we should expect in terms of what's going to happen next. let's bring in the senior geopolitical strategist at barclays who does focus on that part of the world. good to have you with us. what do you feel right now is the biggest question for the markets? >> the big question for the markets i think is the security of the suez canal. it's very important for the energy markets, 45% of sea traded crude goes through there and 14% of lng so that's a big security risk on the economic side. will the suez canal be secure? will trade continue to flow through there? >> indeed we just heard a moment ago from yousef, our report on the ground, saying there's extra security measures being taken to secure the suez canal.

are you confident that that's enough or has history shown that this can still be a sticking point? >> i would watch what happens in the coastal cities. demonstrations the past few months around the coastal cities which is particularly worrying. they did try to close down traffic in march. some tried to release speed boats and we've had a situation and port authorities had to close their offices but really shutting down the suez canal would require the military to do that and there's no signs that the military wants so much of the hard currenty. >> if the suez canal were shut down, and we're hoping that's not case, but if it were what price impact would thereby on the energy markets, on crude and also lng? >> particularly in crude i think you would see a run up on a fear premium. certainly you could divert the supplies around the cape of good hope. that would add time, but i don't see a significant long-term disruption, but i think prices would rise just on the fear of premium of not knowing what's going to happen next.

>> i'm interested in how foreign companies doing business in egypt and that part of the world are feeling about all of this. this is not new. two years ago we were watching with mubarak. now it's a replay with morsi. to what degree have foreign companies made the decision that it's too risky to do business there? >> i think foreign companies are nervously watching what's going on there. i mean, one of the big concerns from the energy companies is can your workers get to the facilities? potential for a tax on foreign workers is something they are concerned about as well, but for right now i think everybody is in a wait-and-see mode and certainly the statements by the military, everyone is going to see who will stabilize the country or potentially will it lead to more violence? what happens if the military comes back in and you have a lot of disgruntled islamists? it will be a wait and see period. >> the next 48, in particular crunch time moments. thanks very much, halima croft. will tech be the breakout

stock in the second half and we head to a very, very sweaty sin city and our very own sweaty jane wells as well. >> reporter: mandy, this says it's about 107 and here in vegas it's about 104. we just heard from the wynn, their encore beach club has doubled business, 4,500 people. they are making money. utilities are spending money. we're going to look at it after the break. that's me... i made you something. ♪ i made you something, too. ♪ see you next summer. ♪ [ male announcer ] get exceptional values on the highest quality cars at the summer of audi sales event. ♪ vo: i've always thought the best part about this country is that we get to create our future.

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arizona is in murk after one of the deadliest wildfire disasters in american history. 19 members of an elite fire fighting crew were killed battling a massive wildfire about 80 miles northwest of phoenix. the team tried to shield themselves in fire shelters but the blaze was just too intense. the fire was sparked by lightning and is being fueled by heavy winds and scorching eat. the flames are still zero 0 contained. heat warnings in effect about much of the west as record-breaking heat conditions its stranglehold. one of the host spots is las vegas, tying its all-time heat record of 117 degrees. let's get back out to jane. looks like a very, very hot day.

>> mandy, really straining the electricity grid. berkshire hathaway is in the process of acquiring, but in the energy this week, some investment earlier. jet engine like devices, they used them and can quickly add 60 watts of electricity as need but that doesn't provide much relief to people and per formers outside on the strip. >> it's hot. it's hot. i'm about 130 in the suit. >> i have an app on my phone and whenever i look at it i'm like oh, my gosh, i've never been in 117-degree heat. >> it's smoke out here. >> got to do what i've got to do and i got to do what i gotta do. i can't stop the weather. >> elmo's key to beating the heat is thinking cool thoughts and thinking about the time when i get off. >> it's hot. i can chill and have a cold one. >> northern california residents are being told to reduce power

consumption between noon and 7:00 p.m. today and tomorrow as peak usage could top 47,000 megawatts. normal usage is 47,000 and they also say demand is now returning to pre-recession levels. there are some spikes to 60. the big utilities have to have 90% of their power knocked in ahead of town but we're still being told by cal ice. how hot is it? we'll get started with this right here. we'll find out. mandy, check back with me later in the show. we're going to really find out if it's hot enough to fry an egg. >> coming up next, trivia time. you're probably rocking out to this song ♪ you can ring my bell >> when this hit stores on this day back in 1979. think about it, please don't

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want to show you what's happening with the stock of be ale on pace for its best day in about a month and why it's moving higher. got an upgrade at raymond janes from outperform to strong buy. ath believing that the near term financial trends will stabilize and then improve. hence a very good day for apple. help from herb greenberg as well. let's take a look at what's happening with 3-m downgraded to equal weight at morgan stanley. what did they give as their reasoning for that? >> several things, especially basically saying it's reached that concern. outperform is a little harder. i used to cover this company, very innovative back then, continues to be innovative back then. remember this, guy's price target was 112. it's almost there.

thought he had that point? almost interesting rate. this is one of those when you can see some of those and it has the highest short interest on the nyse. this has been rising. the stock going straight up. >> an interesting story even though the stock isn't moving terribly much today. where is brian sullivan when you need him? best buy. one of the stocks he always has 00/radar. credit suisse with an outperform. >> let me tell you something. one of the great reports i've read in a very long time. whether you like the stock, don't like the stock, you've got to take a look at what he's basically saying. he basically believes it's a play on management and if you go through what i found was really fascinating as he looks at what could have been, what should be going forward because he looks at how so many people go online or go in the stores with intentions to buy. they are not buying. you also have the samsung stores that are going in there, the

microsoft stores and he sees this as an interesting play and again to go through this point really lays it out extraordinarily well, and i think -- i give him credit for that. by the way, this has the sales of $1,000 a square foot and look at someone like hh greg, more like 1,100 a square foot, a lot of unproductive space that they have to deal with at the big stores but it's more a play on management's ability to pull it off as others in retail have done. whether they do it or not, remains to be seen. >> nokia, an upgrade to overweight: let's take a look at the stock. maintaining itself. someone upgrades it and s&p coming out and saying we maintain to sale. this is situation when you look at the upgrade, all about the -- what are the various aspects. >> what happened.

what would it be valued. i think you have to consider the two sides of the story. netflix of radio. look, when you watch the turn of this company, that's what's so important. remember what they are talking about, spotify. everything going to come in and kill this company and hasn't quite happened. increasingly crowded space. that's going to be the launch of the itunes radio from apple as well. >> this analyst -- this analyst, buy the analyst argument, does not believe that is something. >> the pie has to get bigger for everybody else. >> it has to get bigger for everybody. >> the fact is this company is still here. talking about it on air. six months ago, seven months ago, eight months ago. >> a $10 billion or 120 a share

cash take of an offer from amgen and this is absolutely soaring on the back of that news. look at that. >> now the issue is who will buy the company. >> it's not a question of if but when and who. >> watch this space again, herb, thank you very much. >> just getting this word into cnbc right now. the director and depp try director of the embattled vatican bank have resigned amid a broadening financial scandal. the two stepped down after prosecutors in rome alleged the vatican bank of money laundering and also acting as a tax haven. neither official has been criminally charged and, of course, it's a developing story. we'll be watching this. apple dropped 23% in the first half. does it have anything up its sleeve to break out of that slump? also later on, is it the beginning of the end when it comes to finding a good deal in housing? what are the signs telling us on the second half. all those things and more as

well as a little tease at the "closing bell." bill griffith. >> thought you'd never ask. july, as you may know, is his torically the fourth best month of the year for the dow, and our all-star panel of money managers will tell us how you should be positioning yourself for what's traditionally a hot month and we'll also hear from one economist who says the fed is misreading consumer spending growth right now and have no business tapering their economic stimulus measures and carl icahn has lined up more than $5 billion in financing for his bid for dell. he will join us exclusively to talk about raising the anti-e on this buyout battle. all that and more at the top of the hour for the last trading hour today on the "closing bell." after that more "street signs" right after this.

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break out your cassette tapes because on this day back in 1979 sony debuted the walkman. it sold for 150 bucks. adjusted for inflation that would be a whopping 467 bucks. several years later sony still sells iconic version of the music player. sony is up 469% since the walkman debuted. however, the stock is still down 624% from its all-time closing high that was back in the year 2000. things really do make you go hmm. well, the tech sector talking of has really underperformed the s&p 500 year to date. up nearly 37% but that compares to the 14% gain for the s&p and why don't we take a look at apple. know we've taken a look at it because it's on pace for the best day for five months on the upgrade. up more than 3% and, of course, where if goes from here is anybody's guess. john? jon fortt, is the tech sector be

able to break out in the second half? >> it may be, mandy, and i remember '79 pre-school, a good year. lots of new stuff coming. let's take some companies first, google. the ceo of its motorola unit says to expect the high end motox-phone in the summer and also hinted that lower end phones are coming later. >> between now and october we'll be launching not just a single phone but relaunching or intire product portfolio. >> and we know it's being made by flextronics. people will try to gauge how the phone is doing based on lines at retail and even adding more shifts perhaps. last year first week in september was when amazon ceo jeff bezos brought us the latest kindl launch in l.a. expect a new 7 to 9-inch kindl

and then, of course, there's apple, iphones and ipads. those two products alone delivering $113 billion in ref hue for apple last fiscal year. it's the possibility of lower-priced phones that are going to drive the story on this one. apple's gross margin guide in september, of course, then will be huge. mandy? >> thank you very much for that. john, well, let's bring in roger kay, president of end point technology associates. roger, we'll get a bit more micro in a second and overall can tech break its second half performance? >> oh, yeah, mandy. i think it probably will. i mean, particularly since you're talking about a. apple had a real desert of a first half in terms of product introductions, really just no excitement as all, and they have got a number of things in the wings that are going to be coming out. we know that they just trade marked iwatch in japan. people say why not the united states, and we don't know, of course, but it's possible that someone else is squatting on

that property, and they are negotiating to get it, so likely you'll see that as well. there's also something brewing on the tv front, living room, game console front. not really clear what that is, but that's another bid that apple can make. there's also the low end iphones and then probably refreshes on the standard iphone and ipad and there's plenty of iphone excitement for apple in the second half and then, of course, all other vendors. >> getting back to apple stock market. one of my predictions at the end of last year was over the course of 2013 apple would never get back to its record of above 700 a share. do you think that that holds for this year? well, 700 does look pretty far away from where we're sitting right now, but as you've seen apple stock can jump on a moment's notice and i wouldn't be in a position to call it at 700 plus, but i think it's likely to regain some of the ground it lost earlier. >> okay. apple, of course, is not the

only stock in tech land. let's talk some of the other sectors. what's going to be happening on the wintel side of things? >> microsoft and intel as partners, somewhat wary of each other but they continue to work together and are trying to make the pc sector exciting and particular the area there, is the ultra book, smallish highly mobile or hybrid devices. these things there's detachables where there's two in ones where you get a tablet where you pull it apart and pull it back together again it looks like a clam shell notebook. y will novo has one that sits on a stand and all the different versions of the notebook tablet style notebooks, very light. long battery life and intel has a new generation of processors that are much less power using

and you'll get longer battery life and good performance so that's what you'll see from the intel world, the microsoft world for the rest of the year. >> talking about game consoles, summer vacation time. doing my darnedest to keep my kids around from playing the xbox 24/7, but who do you think this holiday season will win in that game console rival? a number of players, microsoft, sony, nintendo. who is going to win, roger? >> seems to me that right now it's a contest between microsoft and sony. i don't think it's a done deal. also they can both reposition their products a little bit in terms of pricing and promotion so i think they will both be pretty hot platforms and, unfortunately, for you, your kids will be excited and want one of them. >> absolutely. you bet your bottom dollar on that one. thanks so much for joining us. >> my pleasure. >> coming up next, 146 reasons to celebrate our neighbors to the north, and is the housing

market getting a little too good too fast? well, also today sunshine's stock is cablevision up over 9% today. talk of potential for mergers among big cable tv players driving those gains and looking good there at 1836 and speaking of sunshine, why don't we check back on jane's eggs? oh, okay. not really done yet. it is hot out there. 117 degrees. record breaking heat, but our eggs are not done yet. mine was earned in djibouti, africa. 2004.

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o canada, 146 years ago, the maple syrup nation was born, so in that vain why don't we take a look at how some u.s. trading canadian companies have performed so far year to date. of course, blackberry is one that we follow a lot here on cnbc. it is down about 14% year to date. potash down 7%. lululemon down 14% and barrick gold tanking by 16% and transcanada down 8%. apologies to all those canadians

who would otherwise like to be enjoying their canada days. not good news for the stocks. a big comeback in the housing market in the first half but will the second half leave people priced out of the markets? diana olick with that. what would you put your money on here, diana? >> well, mandy, the ayes have it, inventory. the most important thing to watch for housing in the second half of the year. they will guide prices, afford ability and demand so where are they going? let's start with rates, shall we. in the past six weeks we'll see the rate on the 30-year fixed go from 3.5% to 4% and head to 5%. that means the average buyer has lost anywhere from 15% to 18% of their purchasing power because that's how much higher their monthly payment will be, so where will mortgage rates go? well, higher appears tonight answer for most of the folks i've spoken, to but, remember, even at around 5% we are still well bloat average rate historically. now, an equal if not bigger

issue is inventory. take a look at our recovery watch map from cnbc.com. it's now just in a few places. inventories -- not just in a few places. inventories are down across the nation. not all investors eating up distressed homes. it's near negative equity. about 40% of homeowners with a mortgage don't have enough equity in their homes right now to move, that according to zillow. they are stuck in place. add to that the home builders are not ramping up starts to where they need to be because they don't have the land or the labor to do it. now inventory did rise ever so slightly this past spring, but it's not expected to move much throughout rest of the year and that means prices will move higher because there's so much demand for so little in the way of listings. rising prices and rising rates, call it aics to cocktail for buyers, and that may start to show up in sells as we move through the latter half of this year. mandy? >> thank you very much, diana. want to stick around. want to bring in brian lewis

from homestead properties. what are you seeing for the second half in houseing? >> we've heard it here and we're seeing it again. i think poverty same. we're not seeing the inventory we need. there's a lot of demand out there, and although those rates are climbing up, i think the demand is still going to be good. those are still really good rates, everybody. i mean, tremendous rates. >> so you don't think it's going to put a damper on things. >> a little thing. i think they are blinking the lights, but when you've seen these -- these rates climb up, guys, the fed indicated that they might pull out of bond market from buying, and that's what you're seempingt you're seeing that reaction from the nervous investors. >> and, of course, if you've got all cash, really doesn't matter what the rate, is right? >> you've got that right. >> what percentage of people come to you, brian, and say i want to buy a house, help me and, by the way, here's my suitcase of cash. >> last week i had two, two major deals, all cash, one exceeded $10 million and one was around $3.5 million.

one was from another country and one was right from here in the good old usa. >> that's there in new york city. nationally, still one-third of buyers in may were all cash, that's nationwide. not just talking investors. foreigners, lots of because the know they have that much competition and they're going to get the house if they put the cash down over somebody who needs a mortgage. but i have to say, it's not the mortgage rate that i'm worried about in the second half of the year. it's this incredible spike in home prices. up 12% year over year. even the realtors, it's crazy to hear a realtor, no offense, say this. they said it was unsustainable. >> it's times -- >> six times the rate of income growth. you can't have that kind of price rate growth. >> so what kind of prices will we see? >> we'll see a steady climb. this is a supply-demand market, everybody. you're seeing low inventory, high demand. that's what -- that's where this enthusiasm is coming from. sure, prices are going up, but they still haven't gotten to the 2008 levels in much of the country.

>> where can you still get a bargain around the country? >> you know what? look in areas that were super, super depressed. look around detroit. that's always a good boy. -- good buy. atlanta is up, up, up, but they had a lot of inventory to soak up. i like atlanta. i like charlotte. i love capital cities -- boston. i love wisconsin. anywhere you have a capital city and a university town, i'm very bullish on that. and i still think there's opportunity to be had around the country. >> we certainly hope so. brian, what do you think of the new worrying trend that piggyback mortgages are back? people essentially using their house like an atm all over again? >> you know what, i don't like it. a lot of people go for the piggyback mortgage, because they need money for the down payment. they're trying to avoid pmi. when you finance more than 90% of your home. so they get two conforming lo s loans. you're really putting risk out there. but if it makes sense for you, go with the professional. they're going to help you find

out the real -- the real ability for your risk, and what your tolerance level is. i don't like spending money on -- i don't like pulling equity for something i don't even own yet. >> yeah, it's a worrying trend, if, indeed, it is mounting a comeback. >> yes. >> diana, i'd like to ask you, what's the outlook in the second half for appraisals? will it continue to be tight or will it get looser? >> well, look, appraisals will move where the prices are going. what's important to note is we're getting fewer distressed properties on the market, and that's where the appraisal issues were coming in and causing regular homebuyers and homesellers problems, because the appraisers were comparing their sales to those of distressed properties. the fewer distressed properties we have, the fewer problems with appraisals, because things being more comparable. we're not out of the woods yet. we still have a huge pipeline in some states of distressed loans that will have to work through the system over the next up to five years. again, i do think the appraisals are beginning to approve as you see price appreciation and fewer

distressed properties. >> it's a -- it's the broker's job to educate those appraisers. we've got to keep them informed of what's going on out there. and the good thing about anything that's been foreclosed on -- this big, looming worry of foreclosures, the banks can now put those homes on the market. there's a demand for them. >> so let's certainly hope it continues and it is not unsustainable. brian, diana, thank you very much. >> my pleasure. happy fourth. >> you, too. let's go down to jackie deangelis with the market flash. >> i want to bring your attention to shares of tesla. the analysts at jeffries giving it a boost, maintaining her buy rating, but a price target boost from 70 to 130. you can look there and see shares are up by more than 8%. want to remind you this company reporting earnings on july 22nd. >> jackie, thank you very much. tesla is on fire. coming up next, talking of fire, the hottest toy on the road this summer. and we're going to check back in on jane's breakfast. is it done yet? ooh.

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jane, a little while ago on our show, you decided to prove to us just how hot it was by cracking the eggs there on the ground. how are those sizzlers coming? >> reporter: well, they're coming along. we've got some sizzling there, you can see from the thermometer on the asphalt, getting close to 140. we've got bubbling going on, some sizzling. it's been going for a half hour, though. the core here, the egg, that's still -- well, it's getting a little tough on the outside. no, we're getting some -- yeah, no, we are getting some action there. this one had an accident. i don't think we're quite -- no, not quite ready to eat. >> maybe in "closing bell" you can, like, toast bill and maria with your egg sandwich. >> reporter: yeah, a little -- a little hollandaise sauce and -- yeah, i think hollandaise sauce or maybe tabasco, and throw in some bacon, because we've got to have bacon. >> you can't have an egg without the bacon. the two just don't go apart. okay, thanks, jane. we'll check back in with you later. in the meantime, more proof that

the economy is getting stronger. more americans are winnebagoing it. recreational vehicle sales gauged against the disposable income, one of the toys we're featuring all week long. phil is in illinois. phil? >> reporter: mandy, i want you to give you some sense of how hot rvs have become within the last year. look at the growth in sales. this is nationwide. we're going to see them top 300,000 this year. growth up at least 38%. and the reason why, you've got a couple of things working herement clearly, the economy has improved. that's why dealer lots are seeing more traffic. but also seeing month-to-month growth in sales due to pent-up demand and moderate gas prices. the makers say the people buying now are looking for more activity and more comfort. that's why they're going for

top-of-the-line detailing with all of the rvs that they're buying. >> they're looking for, again, the flat-panel tvs, the electronic gadgetry, that the industry has to offer. i mean, it's very much a little bit of showmanship when they get to the camp ground of what their rv can do. >> reporter: talk about rv'ing, shares of winnebago over the last five years, particularly in the last year and a half, has been very strong for shareholders of winnebago. and we are back inside the top of the line winnebago. mandy, if you wanted to buy this, complete with the three smart tvs, flat-screen tvs and stainless steel appliances, take a guess at the price. >> oh, i couldn't even guess. this is top of the line, right? are we looking at -- >> reporter: top of the line. >> top of the line? 80,000? 90,000? more? i've got no idea. >> reporter: add 300,000 to that. $380,000. and this baby could be yours. >> really?

that's incredible. >> reporter: really. >> unbelievable. okay. well, happy trucking. phil lebeau, thank you very much. thanks to all of you for watching "street signs." "closing bell" is up next. we'll also check in on how jane wells' eggs are cookin', as well. hi, everybody. happy monday. welcome to the "closing bell." i'm maria bartiromo, and rally mode once again. >> beginning the second half on a positive note here. i'm bill griffeth. we are kicking off with green arrows. the dow was up 174 points at the high today. and it's come off that high right now. i should point out we've been mindful of what's going on in egypt where hundreds of thousands of protesters are still gathered -- >> wow, look at that show. >> -- in cairo, in