>> tcbi, go buy more? >> steve weiss? >> citi. >> and stephanie link? >> i can't believe we're talking about ford. unless the market gets creamed, this thing looks good. >> got to run. have a great rest of the day. "power" starts now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> scott, thank you very much. have they got a deal for you. big auto sales coming in today from the big three. it's a sign detroit is driving in the right direction. our auto man phil lebeau has the details in 20 seconds. jobs in the u.s., we get the june report on friday, but there are already some whispers in us warning us all to lock out. the picture may turn sour fast, and a controversial new way to pay employees. several big-name franchises and companies are doing it.

mcdonald's, taco bell, walgreens, walmart and the big banks support it, but it may be costing those who can least afford it far too much in fees. we start as always with sue at the nyse. hey, sue. >> hey, ty, good to see you. stocks are off of their highs but we are in the green. here's a look at where we stand right now. the dow jones industrial average up 43 points. the s&p 500 up just about six. the nasdaq up almost 10 and the russell 2000 is up 1.66. start this hour with the great american auto industry. auto sales numbers are coming in today, and so far so good. here's a look at how the stocks are performing. gm is down a quarter of a percent but ford, nissan, toyota and honda all solidly in the green with good percentage moves. phil lebeau is live in chicago with the big numbers for us. hi, phil. >> very big numbers. in fact, we could see a june sales pace that hit 16 million vehicles, that would be the pace and not the actual sales, first

that we see that since december of 2007. every automaker reported stronger than expected earnings for the month of june. the increase is ranging anywhere between 6% and 13% and in general all up 2% to 3% greater than wall street was expecting. the big story for the big three happens to do with pickup trucks. once again there's a great demapped out there, especially in middle america. that's why pickup truck sales surged. seeing heavy demand from contractors for stocks to be restocked. a lot of small business, people going into the show rooms right now. what's this going to do for auto production, because at the end of the day that's what investors want to know because production drives revenues which drives sales growth and seen it at a pretty steady clip over the last three years and the big three have eliminated the summer break for most their plants. most plants historically right now, they would be on break, but instead they have got the lines

running. the average transaction price, and this is important because we're seeing an increase almost to an all-time high, not quite there, but for the industry, it's coming in. now, this is the actual price, tyler and sue, that people are paying at showrooms. 31.663, and generally speaking, guys, strong numbers across the board. >> tyler, back to you. >> phil, thank you very much. those strong numbers from auto sales, what do they fortel, if anything, about the jobs numbers? the june report comes out on friday. steve liesman already thinking about it with some forecasting. >> i'm thinking beyond june when it comes to auto sales, by the way, because what phil is talking about it's going to result, i believe they won't get rid of the slowdowns they normally do the end of june and beginning of july. that will affect the july numbers, and we also might see a little bit stronger auto production numbers but here's the numbers we're looking for for friday and also wednesday we have in here. here are your numbers, adp 160,

non-farm payrolls also 160, some estimates a little high. unemployment rate ticking down by a tick. i'm hearing some guys saying it could be even more than that because last month was 7.55, and that was rounded up to 7.6. average hourly rages, the two i really want to look at, looking at health of the workplace. are wages going up in a healthy number, 0.2, and is the workweek also rising? those are big ones. >> and we'll be here on friday for covering it. for all those other taking the day off. >> i don't know where else i'd rather be, tyler. there's a look, and basically what you've seen is you had that really strong february number in the 330 range right there, and it's ticked down to 175, and i'll have a number that shows you the three-month average, 223 the three-month average and that's right around where the economists look for the number to come in. >> 160 or thereabouts. >> the three-month average is where we'll be with technical stuff inside.

>> see you friday. courtney reagan, market flash. >> take a look at shares of web md trading right around session lows we saw tick higher and another leg down. going three times what we see on average day here on these shares being attributed to comments from a newsletter off wall street. they have a sell and a $17 price target right now. shares are at 27 and change. sue? >> wow, 10% loss. thank you very much, security. appreciate it. well, the countdown set by egypt's armed forces expires tomorrow right around this time. this video just came in to our newsroom. military personnel are now planning to deploy in cairo and perhaps beyorngsd according to a senior egyptian security force. the military wants to push the government to prevent the crisis from worsening, and they want law and order. if not, the generals vow to enforce their own road map. today more rallies are being held, not just in cairo but throughout the country. we'll talk live with the former

u.s. ambassador to egypt, but first we go live to cairo and yousef gamal el din >> reporter: at mott fear is very, very tense here as the sun sets. protesters are preparing from across the country, and can you hear the honking and cheers behind me. it's still early on, but the key thing to pint out here, sue, it's not just protesters opposing the incumbent president mohamed morsi. you're also seeing competing rallies from those supporting the president. the fear is that the clashes and the violence will escalate in hours to come, especially given the political paralysis that the country finds itself in because no progress has been made on the political scene. you've seen the outpour over the last 48 hours, usually late at night. you see the numbers in the hundreds of thousands, millions across the country. now, the military deadline ends wednesday afternoon, an after that they put in place a road map. it's not clear what role the

army will play after that. they insist they are not interested in governing the country, but given the situation we find ourselves in with the opposition divided and the incumbent muslim brotherhood, probably a necessary part of any future government, the situation is up in the air. >> two competing demonstrations, one in favor of the morsi government and the others who really started and sparked this in opposition to the morsi government and the economic conditions in egypt. thanks very much for that report. now, let's transition here and talk a little bit about what's happened over the past week. since those protests began to erupt in egypt, let's look at oil. brent crude is up 2.7%. natural gas basically flat. gasoline up almost 2% as you see on that graphic right there.

now, energy traders are watching it all through the prism of the suez canal, a money maker and point national pride. the canal is 120 miles long as you see there, sort of the mouth of it there on the mediterranean moving down to the red sea. it connects that -- those two bodies of water. if it were to be disrupted or its operation were to come into question, that would certainly impact the 4 million barrels of oil that flow through it each day. not huge in terms of the global supply but significant enough, nonetheless, to affect the price. the suez carries 6% of the world's natural gas supply. if it were to be shut down, all that traffic would have to go all the way around the southern horn of africa via vessels to move towards the atlantic ocean, and estimates say that about 7.5% of the cargo carried by ship goes through the canal, so it is a major sort of economic choke point in that part of the world with many of the natural

gas, sue, and oil supplies that move into the atlantic moving through that body of water. >> absolutely. we're going to talk more about that and the situation in cairo right now with ambassador ed walker, former ax to egypt. he joins us live from washington today. mr.a welcome to "power lunch." it's a pleasure to have you here. >> my pleasure to be here. >> give me your thoughts of what's going on in cairo and whether or not this deadline that's been imposed by the armed forces is a real deadline, in your view. >> no, in my view it is a real deadline because the army can't back down now. it's already made it a condition of getting out of this very difficult situation, and the army still has a great deal of support among the egyptian people. it can use its support and its power to help break the logjam that exists there, but not if it becomes choer it's trying to

take over. the army is not ready for that, and the people are not ready for that. so i expect that there will be some real arm-twisting going on in the next 24 hours in which morsi is convinced that either he has to accept the new government with a moderate representative as a prime minister or he has to step down, and where the opposition is willing to accept some kind of compromise, which up until now they have not been. >> when we look at the live pictures of cairo and when we look at tape pictures that we've just gotten into our newsroom and you look at the sheer magnitude of the number of people that are in that square, and now we know that there are two different groups of people, those who support the morsi government and those against the morsi government, do you anticipate that this will turn violent, or do you think that at this point they may be able to just be in the square and protest without an enormous amount of violence? >> it's possible they can get away without the violence.

of course, any time you have a situation like this, the slightest spark that's aggressive or over bearing police action or some of the supporters of morsi and the muslim brotherhood come out with sticks and stones, it can then spiral out of control very quick will you. but it doesn't necessarily have, to and if you'll notice, one of the important things of looking at these crowds is that they have been actually separated, physically separated, and each has its own area in which it can protest and in which it can get news coverage and so on, but so far there's foundcation that they are coming towards each other into a violent confrontation. i think that if the powers at be, particularly starting with the military and also with the brotherhood and with the new agreement among the opposition to have mohamed el baradei represent them, they can possibly still pull this out with some kind of a compromised

deal. >> what are the implications for the united states here? >> well, the implications for us, you know, egypt's a very important component in our whole middle east strategy, and we have a lot going with the military, for example, and our position in the region depends a lot on whether we support our friends and whether we don't, but also the peace treaty with israel. >> yes. >> these are all very important to us, and so we have a big stake. i think president obama put it pretty succinctly. he said that we're going to support the country. we're going to support the people, and while we support democratic process, it is not just a question of an election, and that's sort of a statement that goes against morsi who is putting his whole background, his whole basis for being in

power as a single election. >> mr. ambassador, a pleasure. i'm sure we'll be talking to you again very soon because this story is still developing as we watch it. thank you so much. >> you bet. >> ty, up to you. >> all right, thank you, both. shares of constellation brands lower today as the company posted quarterly numbers. profits of the beer, wine and liquor company dropping more than 25% from a year ago and it missed estimates. the company was pressured by costs related to its acquisition of grupo mondelo's beer business. however, constellation is boosting its 2013 stock and the stock is up 26% so far. shares of duncan brand, coverage with a bullish call, rating it a buy and the analyst who made the call will be on "street signs" in the next hour. hope he's bringing some

doughnuts. it's up 30%. >> american runs on dunkin, they say. >> that's right. >> coming up on "power lunch," we're moving on up. the new class warfare in manhattan real estate. see what kinds of properties are hot, what's not and who is wing and who is losing. the doorman is winning, and we're back in two. ♪ we finally got a piece of the pie ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

welcome back to "power

lunch." i'm courtney reagan at the market flash desk. take a look at shares of gold stocks moving lower as the precious commodity itself moves to session lows right ahead of the settle at the nymex. watching this as we see the dollar also move to newer highs. tyler, back to you. >> thank are you. american reality properties buying american reality capital trust for $1.3 billion in cash and stock. the deal, along with other recent transactions also, make it the second biggest leased reit. when the deal closes arcp will own more than 2,500 single-tenant properties in 48 states and puerto rico. sue? >> ty, home prices racking up their biggest annual gain in more than seven years with more increases expected through the summer months. that's according to data analysis form core logic. one hot housing market right now is manhattan. i'm going to turn it over to diana olick who is here with me at the nyse.

good to see you. >> reporter: good to see you, too. so perfect we're right here downtown which is one of the hottest real estate markets in manhattan. sales across the island were the highest since 2007 this past spring and prices down here are rising fast, especially for new development. up 36% from a year ago. now, when we talk new developments in manhattan, we're talking condos, not co-ops. developers are targeting the high end with the condos. the top 10% of the manhattan market, which means over the $3 million mark. now the median sale price for a conditionedo, 1.25 million, but for a co-op, just a mere $665,000. condo sales were up nearly 16% in q2 and the median condo price rose nearly 14%, not the case with co-ops. sales are up and supplies are solo down 28% from a year ago. prices were actually flat for co-ops, likely because they don't see the foreign all-cash buyers that the condos do, so why are supplies so low? well, it's the same reason as

the rest of the country. a minute manhattan may be an island unto itself but not when it comes to negative equity. big dunn payments and many other more than they are worth and co-ops are stuck in place. with new condo development, the mix is shifting, and as for q3 a lot of, that sue, will of course, depend on where mortgage rates are headed. >> right. >> which look to be a bit higher, but not that high, if we think historically speaking. >> you don't think it will take pique people out of the market too dramatically? >> not dram clickity here in manhattan. across the country it's a different story because it's a tough tick up. here they can wetter a little better. >> great you have to here. got to come here more often. investors pulled billions from his hedge fund last month but steven cohen's still beating his rivals when it comes to returns. the latest numbers for you. and would you invest in these guys? they want your number.

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cocoa business. back in june a statement was issued saying they were in discussion about a possible sale of the business. tyler, back to you. >> thank you very much. june may have been a tough month personally for steven cohen as the feds circle his hedge fund sac but a sincht story for his investments. sac capital posting a 1.5% gain for the month comparing to a 2.1% loss for the average hedge fund, according to early estimates by bank of america and mayoral lynch. for the year sac is up about 8.25% after fees. the s&p is up more than 12% in the same time period. sue? >> keeping our eye on onyx, reports that several large pharma companies are expression interest in the company. the irs telling tyco international it will not allow $2.8 billion in deductions and interest in its u.s. tax returns. tyco's subsidiaries actually owe

hundred of millions of dollars in taxes and penalties,ed a credit card issuer capital one financial buying back $1 billion worth of its shares after completing the sale of its best buy credit card portfolio. let's get the trading action. josh lipton on the floor of the nyse. a decent gain on the floor so far. >> hey there, sue. leaning green here though certainly off your session highs. did have some economic data this morning. factory orders, best estimates. traders down here also watching the headlines overseas, egypt, greece and now portugal where a foreign minister has resigned. the finance minister resigned yesterday. jpmorgan just out with a note saying this significantly escalates their near-term concerns, and the blue chips, which had been up 74, now up just about 20. as for some specific movers today, let's get to the dow, the biggest gainer is jpmorgan, raymond james, they are fans and rate this one a strong buy. their price target is 64 bucks. apple is also working

back-to-back gains. apple saying it filed a trademark application for an iwatch in japan, and finally ford, gm and toyota report june sales all besting estimates. guys, back to you. >> thanks very much, josh. let's bring in kenny polcari as well as michael fax president of farr, miller & washington and cnbc contributor as well. michael, i'll start with you. we've had a very volatile past few weeks mostly due to the fed, so how are you investing? >> sue, i'm feeling a little bit smug, if you will, which is always dangerous, you know. only two types of people in our business. those who have been humbled and those who are about to be, but our conservative sort of sticking with the blue chip strategy is working really well now, so it feels pretty good. the flight from bonds into stocks, the flight from gold into stocks and the flight from the risk trade into the blue

chip multi-national, with some dividends and earnings growth, feeling really good and it's kind of the sweet spot for farr, miller and washington so i continue to like health care, i like technology, consumer staples. i think we're going to bump through the rest of this summer, but i like what i own right now, and i would buy more of it on dips. >> all right, kenny. i know you've been watching key levels in this market. i'm just impressed on a holiday shortened week when jobs data is coming up that we're able to hold on to a 10% gain. >> michael makes some good points. the other thick that josh mentioned is tension and unease in europe and the other parts of the world are actually creating that safety trade here in the u.s. which is probably happening us a little bit. i wouldn't read too, too much into the action and a lot of people are starting to take advantage. tomorrow a half day and friday

the day after the 4th so i'll be interested to see how the market reacts tomorrow to the non-farm payroll on friday. i think you have to see on monday to figure out who people are feeling. banging our head on the 50-day moving average, we hit it and failed and today it feels like it will churn and stay right here. not the worst thing in the world. >> michael, are you concerned with all the fed talk going on over at the last year? some are calling it damage control? >> steve liesman has pointed out they don't know exactly how to manage this particular message, but it's kind of clear that mr. bernanke used a little too much dynamite in his -- in his first foray and the other governors seem to be backing and filling. the messaging isn't really good. the data that they are seeing continues to be positive. >> right. >> so i think the fed is going

to continue the back and forth. i think probably as we start into next week and really for markets that's going to be more telling of the tale. we're going to start to pay a lot of attention to earnings and particularly the forward looking guidance for the balance of the year for major corporations, and i don't think it's going to be great. >> okay. very quickly, kenny. >> michael, can i ask a quick question. you make all very good points. i think the people have misinterpreted. >> that could be. quickly, michael? >> when he said they didn't see the downside risk when they thought unemployment would be here, when he gave us a date to actually start the tapering, those were more positive than ever said before and i think it was the interview afterwards that messed up his message. >> good to see you again as always, michael. thanks, all. >> now up to the nasdaq. six days of keck stocks.

apple is in the green and ubs reitting its buy rating on the stock. does seem like the street is getting more bullish on apple and that's helping suppliers of apple move to the upside. big coin shares are also getting a lift. an etf specialist at index universe says that this will be a difficult market for the bit coin etf to enter into. tyler and sue, back to you. >> thanks very much, seema. appreciate it. back now to cairo where we're looking at the live pictures as it is, of course, is now getting dark. it's being lit up to a certain extent by all the lights they have put on that square. righters is now reporting right now that egypt's army has plans to push president mohamed morsi aside and suspend the constitution if he fails to strike a power-sharing deal with

his opponents within the next 24 hours. so ty, this is reaching a critical point, as the ambassador suggested it would, when we talked to him earlier this hour. this is a story that we are going to follow very closely. it has put a bid to a certain extent in the treasury market, not a large bid, but we are seeing a little bit of a safety trade into treasuries today which has pushed the ten-year yield down to 2.48%. >> a sticky situation. >> yes, very much so. >> and a sticky position with respect to whether the army will follow through. we'll see what gold does in situations where there are heightened tensions in any economy around the world, and let's find out what gold has been doing. for that we go to sharon epperson at nymex.

sharon? >> reporter: tyler, not much of a safe haven trade going on in the gold market in this session. we're seeing gold prices closing right now, down about $12 and right around 1,243 an ounce, and keep in mind that a lot of traders are focussed today on the strength in the dollar and the relative weakness in gold, also the fact that that we're looking at a holiday shortened weeks and lower volumes is also at play and factory risk data. that could also be weighing on the gold price as a lot of people wondering when the tapering of the quantitative easing will take place and thinking with better economic data it could come very soon. back to you. >> let's see how the bond market is reacting to any of this news, and for that we go as always to rick santelli at the cme. hi, rick. >> hi, tyler. indeed, many traders are watching these images, of course, of cairo, egypt, but in the end, even though we've had a couple of bouts with testing 2.47, for the most part, as you can see on this two-day chart,

we're just backfilling, a smudge under 2.50 and even snugging up closer to it in a big 2.49 yield. foreign exchange, look at the index, a powerful day up 0 been the 3% and dollar/yen at 1.71, big dollar day and the euro versus the dollar, a lot of dollar strength in that category as well. sue, back to you. >> thank you very much, rick. well, federal reserve governors are meeting today to vote on important new rules for reforming the banks. the key questions for now and for investors, how will that regulation impact the financials, and will these new rules end too big to fail? kayla tauschy is live in washington and has been monitoring that meeting. hi, kayla. >> hi, sue, certainly seems to be moving in that direction when chairman ben bernanke gets asked about ending the too big to

fail. the first box got checked today, the federal reserve's board of governors in an open meeting approved and voted in support rather new capital requirements on the banks that are slightly stricter than they were before, raising tier one capital required to be held at 6% from 4% and also called for another capital buffer and a limit on how much banks can borrow based on their assets. the rules also outline the relative risk of certain asset classes, private equity and volatile commercial rhee real estate and delinquent loans weigh heavier on the balance sheet and government debt if it's defaulted and bank debt, relatively riskless and mortgages to some surprise were treated more leniently this time around than in previous drafts of this proposal. that because of concerns raised by some small bank advocates saying the strict rules on capital and mortgages would hurt the small banks as well as their

ability to lend, and they are a large part of these local housing markets. in the ent the fed and the occ, which will vote next week on these rules, both priced the progress here, and chairman bernanke said a delicate balance was struck and big bank regulation is starting to come back together. >> kayla, thank you very much. more news out of cairo right now. as we told you, it's a fast developing story in vice president. as you look at these live pictures of tahrir square in egypt where the two sides have encamped themselves, the u.s. embassy has announced it will be closed to the public two to the end of the 58-hour deadline set by egypt's army. the embassy warns as a matter of general practice u.s. citizens should avoid areas where large gatherings occur, including tahrir square and demonstrations or events intended to be peaceful can turn confrontational and escalate

into violence. u.s. citizens are being urged to monitor local news reports and plan their activities carefully and accordingly. it's enormous this scene that we're seeing from cairo, but we should also note, ty, as you mentioned earlier, also protests going on all throughout the country, not just in cairo and tahrir square. i believe that's the largest gathering, but at this point we're hearing reports that there are protests going on in most of the major cities throughout cairo, and we should note that the dow jones industrial average has just moved close to the low point of the trading session. traders down here are monitoring the situation closely in cairo because as the ambassador told us earlier, egypt is really a linchpin for the united states in the middle east, and they are watching very carefully to see whether or not the protests remain peaceful as so far today they have or whether or not we see some violence out of this

protest. ty? >> and, of course, fresh in many people's minds would be what happened in benghazi last year at the u.s. installation there. >> absolutely. >> so the state department and u.s. government taking pains to -- to warn american residents and american diplomats about the situation that is certainly one of upheaval as we look down on the evening in kay row. mean tim, mcdonald franchise among a number of high-profile employees now paying their workers with debit cards, pre-paid cards, but get this. in many cases workers are being charged for using the cards. fees on your wages. is this preying on the poor? we'll debate that, and police say one tiffany's exec couldn't handle the temptation. there were just too many diamonds lying around. now, she's under arrest. more "power lunch" coming up. out there owning it.

the ones getting involved and staying engaged. 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. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.

we want to bring your attention to the markets right now which have turned to the negative side. the dow jones industrial average is now down almost 11 points on the trading session. the s&p is holding on to just a fractional gain on the session.

the nasdaq composite has also turned negative on the trading session. let's take a look once again at tahrir square in egypt in cairo where we are seeing -- you obviously can see some of the fireworks there, but a massive amount of people in that square. both in support of the morsi government and against the morsi government. so far we have seen a relatively orderly situation today, though we should note that in the past few days the protests have turned violent and 14 people have lost their lives so a very fluid situation which we will continue to monitor for you out of cairo. let's go back up to courtney. she's got a market flash for us. hi, courtney. >> hi, sue. take a look at the shares of a couple of smaller regional banks. tci financial and first horizon, some of the rules will be less onerous than originally proposed. good news for some of the banks, as you can see the shares both

up for tcf financial as well as first horizon. tyler? >> thanks, security any. used to be that workers would rush out to cash their checks on paychecks but now it's a quick dash to the atm. a large number of corporations to taco bell to walmart are starting to pay their workers with pre-paid debit cards which sometimes include a fee. a sipe of the times or another case of the poor getting the short end of the deal? the assistant professor of law joins us from the university of california irvine and dan mitch sell a senior fellow at kato. welcome to boast you. >> thanks for having me. >> professor, let me start with you, so long as individuals know the disclosures and what the schedule of fees, are don't employers effectively have the right to pay their playes any way they wish? >> they should pay them in cash, and i think part of the problem is a lot of the fee schedules are opaque. there are fees associated with lots of different types of activities, and if the fee structure is in place that it effectively imposes a penalty, what they are doing is giving

workers something less than their full wage. many of the employers are getting kickbacks from the banks for steering employees into the payroll cards, and i think that's part of the problem that these cards are -- can be fine. i think we're going to see a growing trend toward the use of pre-paid cards generally in society as we move to more electronic payment systems, but the fact that so many of these cards have predatory features i think is a real problem. it seems to really the lack of regulation in this area. >> dan? >> as long as there's disclosure, and it has to be non-opaque and very clear, i think this is fine, not that low-income workers aren't getting the short end of the stick at their first job and see the paycheck and all the taxes taken out and then if they have the debit card with fees that's adding injury to a very big insult to all the taxes on top of it, and would you think that the workers would get direct deposits which presumably would avoid the fees but thanks to

government regulations banks don't want low-income customers so it's sometimes hard for people to get bank acounts. a lot of these workers are getting a pretty bad deal out of things. >> professor, let me come back to you and address a couple of things that dan raised there. there are a lot of people, according to the "new york times," some 10 million households, that do not have access to traditional bank services, so direct deposit doesn't help them. >> right. >> check cashing companies charge fees of 3%, 4%, 5%, so that's a pretty steep number. >> right. >> and so couldn't you see this as a service to some given the fact that many of the banks don't charge fees if you use the atms of their particular company. >> right. so as i said, i think pre-paid cards are the wave of the future, and as an option, another form of electronic payment, they are fine. the problem is that many employees don't have the choice. they just get these payroll cars with exorbitant fees on them. the same "new york times" story

talks about $5 fees just to check your statement balance, coupled with a $25 overdraft fee so you have to find out and pay money just to find out how much money you have left on your card and if you go over, you pay more money. many have zero in-network atms. there owes good card. dan and i, if we got payroll cards, they would probably be very good features but, you have, many are getting cards with terrible features, and, again, that speaks to the fact that this is the wild west of finance right now. >> right. >> just like the subprime crisis last decade where basically the vulnerable population, lightly regulated and banks see an opportunity to make tons of money off of these things. >> a quick thought from you? >> and that's why we're seeing many of the predatory features. >> i would look at the role that government has in causing the problem. if we maybe eased some of these idiotic anti-money laundering regulations so we made it easier for low-income people to have bank accounts, we could totally eliminate this problem in the first place. >> actually talk to these people

who are unbanked, the primary reason is because they are worried about the fees they get charged, hidden fees they get charged for banking. >> but you have these high fees because of all the government regulations, so, again, i'm not sure that more government -- >> i know you never met a regulation you liked. >> all right, gentlemen, have to leave it there and get to some of the responses from several the banks. dan, david, thank you very much. we reached out to some of the banks about their pre-paid payroll cards. bank of america's merchant services and citi had no comment. jpmorgan pointed out options on how to get around fees, including using it like a debit card at any store or at a visa-issuing bank branch, but ultimately they said it's entirely an employer's decision on whether or not to issue direct desposits on pre-paid cards. wells fargo told that is its pay card holders get one free atm withdrawal per pay period and can skip fees for cash advances at visa issuing banks or the merchant point of sale.

you go into a grocery store, walmart and use it that way. pay card holders can check balances, says wells fargo. at no charge 24/7 through a toll-free number, at least those that are issued through wells fargo. they can also do that online via text and at any 12,000 wells fargo atms. as always, sue, good to know the fees and rules involved here. >> absolutely, ty. meantime, federal authorities in new york city accusing a former tiffany executive of stealing more than $1.3 million worth of jewelry. the woman was arrested at her home in darion, connecticut prosecutors say she took 165 pieces of jewelry, claiming she needed them for work reasonsch she was authorized to sign out jewelry pieces. they then said that -- they then said that she sold those items to an international dealer. tiffany declined comment. right now tiffany's shares are down just a little bit under half a percent at 72.49.

meantime, the market is under some pressure right now, and part of it i'm hearing from some of the traders on the floor, is that people are very nervous down here about the situation in cairo, egypt. as we look at these pictures of tahrir square in egypt, egypt's army reportedly is planning to oust the country's leader, mohamed morsi. they are also planning to suspend the constitution. we continue to monitor the situation for you, but the market is reacting to it. we have moved into negative territory by about 20 points. we're back in just a moment. what do you drive? i drive a ford fusion. who is healthier, you or your car? i would say my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works. $29.95 or less after $10 mail-in rebate at your participating ford dealer. so you gotta take care of yourself? yes you do. you gotta take care of your baby? oh yeah!

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let's go back to cairo and yousef gamal el din who is monitoring this fast developing situation in egypt as reuters is reporting that the army's plan, among other things, absent some last-minute deal, would be to oust the elected prime minister of that country, mohamed morsi, and suspend the constitution.

go ahead, take it away. >> reporter: well, it is, of course, a very fast developing story. at this point not all details are quite clear yet because in the past few days and over the last few weeks, the army has maintained that it is, a, not interested in having anything to do with governing this country and, b, definitely not interested in ousting the incumbent president. remember, the reuters story also makes clear that the military officials that they cite are quite certain that it will depend on the situationmakes cl officials that they cite are quite certain that it will depend on the situati makes clear that the military officials that they cite are quite certain that it will depend on the situati makes clear that the military officials that they cite are quite certain that it will depend on the situati makes clear that the military officials that they cite are quite certain that it will

depend on the situati makes clear that the military officials that they cite are so e c depending on how they deal with the situation and how the president reacts according, but this would indicate that this is part of the larger plan that they are going to put forward if the negotiations fail between the opposition and the current government, which are pretty much nonexistent at this point. both parties are sitting far apart, and their supporters are lined up all across the city in various locations, competing rallies, and tensions tonight are especially high because supporters of the incumbent president have hit the streets as well. we saw some disturbing images of participants with sticks and improvised armor readying themselves for bat. we still have reports of ongoing clashes as well across the country, but those are just some selected points. the key concern is that it will escalate into something larger, and the pillars are in place for something larger. that is why the united states keeps pointing to egypt and saying there needs to be constructive dialogue. the united nations has chipped into the conversation. you're seeing embassies closing. the u.s. embassy, the canadian embassy. there's tremendous trepidation and anxiety about what could happen over the course of the next 24 hours so keep a very

close eye on this space. this is a story developing by the hour. >> yousef, if i could ask you a question very quickly. we talked to the former u.s. ambassador to egypt earlier this hour, and he suggested that one of the reasons that things at least today have been a little bit more peaceful in terms of the protesters is that they have physically separated the two oppositions, the two oppose groups. is that indeed the case? can you set the scene for us in terms of where the morrissi supporters are versus the military supporters? >> reporter: well, the story here is that the supporters of the respective camps have decided to separate themselves from early on, so you have the supporters of incumbent president mohamed morsi in a location in cairo that's not too far away from basically the supporters or opponents of the incumbent president are near the presidential palace and tahrir square where you're getting the

images. they are not consistently physically separated. that is the problem. it's probably impossible to do given the millions that are on the streets. you mentioned that the military is on a high state of alert. that is the case, and they have, of course, strengthened different point across the capital city. coming in, again, this morning, i ran through a checkpoint with four tanks. they were checking i.d.s, and the suez canal was also strengthened in terms of the force that's there, making sure that everything is protected. the army is not taking any chances. they know that the next 24 hours are going to be decisive, and at the moment with the incumbent president, his cabinet is falling apart. ministers are tendering the resignation and still the government is not budging. there is no sign of constructive dialogue at this point and with every hour that passes and the closer we get to that deadline, the higher the anxiety is going to be, and as a result the higher the risk, not just for the people on the ground here but also for the markets around the world. >> all right. >> indeed.

>> yousef gamal el din, great reporting. we'll be back with you later today, i'm sure. we'll take a quick break and we'll be right back as some of the nasdaq and other barometers have turned negative. ♪ ♪ unh ♪ ♪ hey! ♪ ♪ let's go! ♪ [ male announcer ] you can choose to blend in. ♪ ♪ yeah! yeah! yeah! or you can choose to blend out. ♪ oh, yeah-eah!

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coming up against a crucial deadline in egypt, you're looking at a live picture of tahrir square in kay row. we have been watching it because the market is watching it, among other things, and right now the dow jones industrial average is off about 18 points on the trading session. keep in mind egypt is one of the most important arab allies to the united states in the middle east. this is a very high stakes situation for the united states and for global markets. we'll continue to watch that as it develops throughout the afternoon. that does it for us on "power lunch." tieier and i will see you tomorrow. "street signs" begins now.

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