s&p. that's what we're working on. that brings us to final trades. dr. injury? >> even with boeing, utx. >> pete? >> citigroup, going to hit the 52 week high. >> alpha industry, go long the etf. >> etf, contrarian long. >> have a great weekend. see you on the other side. "power lunch" begins now. and we welcome you to "power lunch." we begin with that breaking news of a fire breaking out on a boeing 787 occurring at london's heathrow airport. it's believe at this point no passengers are on board. boeing shares though have been hit extremely hard on a percentage basis, right now down 7%. that is the low of the day. phil lebeau is in chicago with still more on a developing story. phil? >> sue, let's point out a couple of things. first of all, nobody on board the ethiopian airway 787 when this fire broke out. the fire has been put out, but it remains to be seen what caused this fire.

boeing just a few minutes ago putting out a statement confirming that there was a fire on a dreamliner saying we're aware at the 787 event at heathrow airport and have boeing personnel there. we're working to fully understand and address this. keep in mind. ethiopian airways was the first airline to have a retrofitted 787 battery system put in after the faa cleared the retrofit design that was supposed to fix all of the battery problems with the dreamliners. we believe that this plane that caught often fire was the first one to receive a retrofitted battery system. because it remains to be seen what caused this fire, even if it's battery related, shares of boeing not only being hit hard but any supplier linked with boeing has also been hit. take a look at spr or pcp, precision cast parts or hexal, hxl, all taking a hit within the

last hour as boeing shares tumbled down, and we're also going to show you shares of general electric. ge has the engines that are on this 787 dreamliner. again, we don't know if any of this fire is related to those ge engines. in fact, we don't know the exact cause of this fire at this point, but because of the battery problem, sue, that's the reason that shares of boeing have tumbled 7%. it will be interesting to see what the at least initial report is in terms of where the fire started, what was the cause, et cetera. we're waiting on owl of that information to come out of heathrow. hopefully we'll get that relatively soon. boeing shares down about 7% as we speak. sue, back to you. >> we should note that although arrivals and departures at heathrow are suspended, they are starting to open some of the runways. they closed them after the fire occurred. we'll keep you posted as to when they do start taking arrivals and allowing departures out of heathrow in london. the drop in boeing stock is

responsible for the loss on the dow jones industrial average, and it is weighing very heavily on the dow at this point. we also have stock analysts j.b.groh on the line and he's watching this story very carefully. welcome. nice to have you here. >> thanks, sue. >> you have a neutral rating on this stock. does it change your rating? >> no, i think it wouldn't change for an event like this. i think at this point we obviously don't know what the cause is, what the source is and how long it will take to rectify the problem, whether it's related to the prior problems with the 787. there's just a lot of uncertainty at this point, our neutral stance on boeing real stems from the fact that you've got a pretty significant military exposure and that's really the -- the long and short of our neutral stance on boeing. >> from your standpoint, with the 7% loss in the stock, given what you just said to me, a selloff in the stock overdone today? >> well, i think the market reacts to these things pretty violently, especially with something like this where it's,

you know, noteworthy given the prior problems with the program. in terms of where we would put a buy point, it would have to be a good 15%, 20% below our $105 target price. >> thanks so much, j.b., appreciate it. >> my pleasure. >> to josh lipton with more on the fallout. >> watching boeing dropping hard at a result of the 787 boeing fire and drag other names down with it. you mentioned phil with it. three names that are all levered to the 787 and give a hat tip here to jon najarian, pcp with a lot of content like fasteners and structural problems, spr, formerly part of boeing makes sections for the 787 and hxl, a composite manufacturer all in the read. tyler, back to you. >> thank you very much. of course, the big story this morning and still really looming over the markets and in a pretty good way. big bank earnings, in focus. jpmorgan and wells fargo kick

off for the financials, both beating on the top and the bottom lines. a profit at jpm rising more than 30% as the bank bounced back from that massive trading loss in the second quarter a year ago. now it reported a 19% rise in profit, despite flat revenue. credit strengthened while home lending orange nations and applications rose from the first quarter. let's take a look at the boards there, and can you see them both edging higher. jpmorgan by a third of a percent and wells fargo by more than 2% at 42.80, but it was a major exclusive you could see only right here on cnbc, our jim cramer sitting down earlier today with jpmorgan's chief jamie dimon on "squawk on the street," and he spoke about the impact of rising rates, the state of the economy and regulation. let's take a good listen here. >> the american economy is getting -- slowly getting stronger so the lending will come back. they will start to do more capital investing so we're kind

of confident that you'll see growth over the years as america recovers. >> it's pretty clear that when rates go up, you will make a ton of money, even at these levels of original nations. >> i think you've got to separate, when rate goes up, all things being equal, it may knock down mortgage original nations, but if you have a healthy economy, that will filter through all our business, all things being equal rates going up is a good thing as long as the economy is growing. >> this is a quarter where i did not see you viewed as much as a consumer bank, even though you have a tremendous amount of capital. the big money was made in trading and fixed income. >> yes. >> equities. this is something i didn't expect and the street didn't expect. >> our folks on the trading floor did an outstanding job, of course, all products, that affects rates, commodities, securitized products, emerging markets because it's more volatile than most, you know, that we built a huge flow business and a lot of clients around the world so you're right, tell me more. we're proud of how they did.

>> mortgages. 7% original nation on the decline. i'm on the wells call. you know you're friends with the ceo. is he just out-mortgaging you? >> i love john stumpf. >> you admit that someone is doing better than you? >> absolutely. doing better for a long time. we are bear stearns and wamu, new management team in place and at the end of the day we'll have a great mortgage business. we believe the way john does, a really good product, really good at production and servicing. >> it seems like he wants to make the loan and you don't? >> our share has gone up. we've gone from like 9% to 10% to 11%. i think you'll see our share go up over time. they are the largest. they are close to 30%. >> how much of your decision to lend/not lend has directly to do with the fact that i don't know if the government wants you to lend or they want you to hoard. >> you're talking about on the balance sheets. we have a new regulatory

environment so all banks have to adjust to it, and that doesn't mean you need to hold more for liquidity or capital. eventually you'll be back to business as usual. that may take another year or two, and these are global requirements, so the requirements in 60 countries around the world, not just the united states. >> so it eventually means you'll have enough capital or eventually means that you think things are going to soften and the regulators won't be so anti-bank which i think you know they are. >> we're getting to the tail end of basel three, capital ratios, leverage ratios and by the end of the year we'll know what they are. they have buffers and the c-car is new, and all those will determine how aggressively banks can grow, return dividends and capital, but the most important thing we're building client businesses with great franchises. of course, all of our businesses. that's what we're in business

for. >> jim cramer fresh off of that interview is here to talk about that interview with jamie dimon for a "power lunch" exclusive. whether you like jamie dimon or don't like him, he's a breath of fresh air in answering questions in such a direction fashion. >> many things were said and i love the fact that you ran. hey, yes, john stumpf did a better job. yes, i do like jamie dimon. what makes him credible is he said wells has done a better job at this but what also makes him credible is he did not beat his chest saying we killed it in trading, they did, but he didn't say that. >> right. >> nor did he sit there and say you know what if the government just got off our backs. we'll deal. >> he also said failure -- you're allowed in america to fail, that there's no crime to fail, but if someone actually

does something wrong, they should be punished for that, but i think he made a very interesting point that wall street doesn't often acknowledge, that not every trade is a winning trade. >> right. >> and not every trade longer term is successful. that's okay as long as longer term you fulfill the mission. >> and we got rid of the people. we got rid of them, and i know the people have been with him for a long time, and he was just very blunt, they are gone. we have -- you know, we've got delivering alpha next week. >> right. >> i asked him that question about the indictments. my case, well, jamie dimon is saying someone should have been indicted, just no one in his bank. >> right, that could be. that could be the way it is. people have to listen to that because i think jamie dimon is saying there was wrongdoing. >> you can pick him down on that next week, jim. >> i will. >> two quick things. one made me chuckle when you asked him about the fed position. >> had to. >> and you also asked about tapering and he basically said, listen, when the economy is

healthy enough, the taper will occur, and that's not necessarily a bad thing. >> and he thinks that that's when they really make a lot of money. mortgages, they could slow, but he said that's a very small piece of the pie. you know what, i'm not going to take away from something he wished i did more of, he thinks america by far is in aascending strong position, and are you still worried about the democrats? no, it's not about that. he says america is in much better shape than everybody else and he made that point. been down on our luck and you want to play america. >> go ahead, ty. i would like to burst in, if i might. thought it was very interesting where he thought it would be a different regulatory environment, it will take a couple of years to adjust to that and then i think we'll be back to business as usual. what does it mean to say business as usual, sand that a good thing for the american taxpayer? is it a god thing for all of us

that jpmorgan and the other big banks will be back, to quote, business as usual. >> i think when he says business as usual, what he means is he's going to take your deposits, and he's going to lend hem to people who actually want to take some risk and do something and that's not going on right now to speak of. now, he would tell you, listen, still a lot of lending going on. they are making a lot of money, but making a lot of money doing some trying and lending, but i think he envisions a world when we get gdp growth and a yield curve, he's going to make money and you're going to make money and that's not the case right now. >> not what has been happening the past four or five years as the banks have been in hoarding mode and not making loans. could we turn your attention to the story we began the hour with and that's the fire on the boeing dreamliner. a couple of weeks ago you had jim mcnierny of boeing on, and you asked him specifically about the dreamliner program and where it is. i want to roll some tape and then get your thoughts. >> did you ever worry that the

battery could not be fixed, that you would lose orders and you would owe a fortune to those who stuck by you. >> never. >> never? >> never worried about it. this was a solvable problem, a difficult problem, one that we regretted having, impacted our customers, but the response of the people of our company was to roll up their sleeves and go to work and solve the problem. >> now, we don't know, jim, whether this fire on the ethiopian airliner on sort of a sideway runway at heathrow had anything to do with a battery or something completely different, but my question is has the dreamliner become kind of a star crossed product? >> it's a great question, because obviously in that interview he did, he would put the problems behind him. learned two things. don't bet against jim mcnortheasterny. >> he has a long, long game. >> and second, if it is a battery problem, it is fixable and now we don't want to hear any problems, and i don't want

to sell boeing here, and if it comes down more on this, it's a little -- you never know what's going to happen. >> right. >> and i want to find out the whole story, but i'm not betting against boeing either. >> we're going to bring phil into the conversation as well. >> we don't know and phil has pointed that out, that we don't know why this particular fire happened, but as we look at boeing down 6%, would you step into it because you have said, mr. mcinerney has a long game plan for boeing. >> the only plan i have is the greatest stock in history. it should be down on a down day. i'm going to give it a little room because it's just been an unbelievable stock. going out last night with the "mad money" crew, and one of the people i work with, fabulous guy, jim, is it ever going to go down i? said i don't know, it's been an unbelievable stock, so, you know, it's profit-taking. >> it's coming off its lows. >> phil what, have we been able to learn so far? >> not a whole lot, sue, but a couple of important things to keep in mind. first of all, heathrow is saying that this was an internal fire

so this was not a fire that started outside of the plane. that's an important distinction. the other thing to keep in mind, if you take a look at pictures at where the fire fighters are spending the most time, it's in the crown of the plane, up by where the crew sleeps. now, that is not where the new battery system and the retrofit is taking place. that's down in the belly in the aft of the plane. doesn't mean that this is not battery-related. it simply means it's not where we saw the fire in boston when it's jal, not the problems with ana out in japan. just something to keep in mind as we try to piece together exactly what happened at heathrow. again, the pictures show that it's in the crown of the aircraft, not down in the bell and the aft section of the plane. >> phil lebeau, thanks so much, we'll continue to follow this developing story. >> no conclusions to be drawn against boerks belieing, believ jpmorgan and jamie dimon, two

great american companies. >> a deeper look at the banks, and what we learned from mr. dimon today. at 6:00 and 11:00 p.m. eastern only here on cnbc on "mad money." and wells fargo chief executive officer talks earnings and the company's outlook for the bank today on the "closing bell." ty, down to you. >> thanks, sue. pain at pump. gas prices spiking all across the country. how much higher are they likely to go? we're going to go live across the way to the nymex, and we'll have more on that ethiopian airline 787 dreamliner this apparently had a fire incident on it at heathrow airport. we'll talk with former continental chairman and ceo gordon bethune about the risks of this aircraft. we'll be right back.

. more now on that breaking news out of london. there's been a fire on an ethiopian airlines boeing 787 at heathrow airport. that is the dreamliner. let's take a look at the plane, if we have it. the same plane that was grounded, the 787 for battery issues, and joining us on the phone is gordon bethune, the former chairman and ceo of continental airlines, also a former boeing 757 and 767 pile. mr. bethune, always good to hear from you. >> my first question is would you feel safe putting your mother, your daughter, your girlfriend, your wife on these planes. >> yes, i would. i was looking at the pictures on the nbc on the web.

the pictures show main cabin doors open and not the aft service center and there's no indication that they were a servicing the battery electronic compartment. i don't know what to tell you the origin of the fire could be. >> it feels, gordon. you know from having run an airline how frequent these kinds of incidents. this one appears to be relatively minor, but who knows, really? >> right. >> how frequent these incidents are and whether the 787 is any more prone to them than the 757 and the 767. can you fill us in on that? >> statistically that's true, tyler, the short life of the 757 has had an abnormal amount of electrical issues. i think 90% of them are behind us. this may be an anomaly or it may be in fact something tied to the

original battery type of fire, origin. nothing here that i can see and i'm speculating that that's where the foam would apply. it all looks like it came from the cabin so i don't know if somebody is cooking there or left a fire on, hard to say. >> you always help us out. appreciate it greatly. sue, back to you. >> and more breaking news, this time concerning hulu. josh lipton has the details. josh? >> these headlines just breaking on hulu. 20th century fox, nbc universal and disney right now announcing they will maintain their respective ownership positions in hulu and together provide a cash infusion of $750 million an order to propel future growth. the president of 20th century fox saying they believe the best path forward for hulu is for a meaningful recapitalization that

will accelerate its growth under the new ownership structure. >> let's bring in julia boorstin who covers this beat for us and is on the phone with us right now. julia, your reaction to this and the implications of this decision. >> reporter: that's right, sue. now this, comes as hulu's bidders had narrowed down, interested in purchasing them outright, directv which had made a bid as well as a joined bid made by peter chernin's company, the hollywood veteran in, conjunction with at&t. those are two companies who wanted to buy flat out. the third bidder was time warner who wanted to take a minority stake in the country. the fact that hulu's owners have decided to not sell say they weren't interested in the bid. it was the only truly independent offer but the bid came in too low. i think what's happening right here, we're seeing the media companies decide that they don't

necessarily that they want to align themselves with one of their distributors as they have sold to time warner cable, directv or even at&t. all three of those companies, they have relationships with and i think this says that they really want to go it alone and make hulu an independent strong company and this company will help you do that. >> $750 million cash infusion from the parties involved. would you have expected it to be more or how do you feel about the cash infusion level that the companies are anteing up with? >> i think the cash infusion level will allow hulu to invest more in individual content. that's worked out very well. and the hope is with more original content, hulu will be able to distinguish itself from just reliance from the recent tv

show and making more of a premium product. the thing that hulu wants to do right now is build more of its subscription audience. it had built around 4 million i believe subscribers to the hulu case. that's really where the value lies in hulu and i think that this decision to keep it an independent company is really a bet that it can build hulu as a valuable content provider with content that's just beyond repurposed tv content. >> julia, thank you so much. julia boorstin on the phone with us. we'll take a quick break and update you on the markets, the still developing store we boeing and much more as we continue on "power lunch."

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veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. what a week it's been. here with bob pisani joining me here on the floor. >> i want to put up the dow industrials just to show you how an impact that prices can have and a movement in the individual dow stock. we lost 30 points in the dow industrials as a result of that boeing announcement. remember, the dow is a price-weighted index so the higher-priced stocks have a bigger influence on them and basically four points in boeing equates to about 30 points in the dow. let's not get into the math on that. can you see it's coming off the lows as well. we were sort of on either side a positive or negative, 3-2 declining to advancing stocks. what worries me more than boeing is what ups was talking about this morning, all the air, freight and logistic sides are

to the weak side. they were talking about a slowing u.s. industrial economy. now, a lot of people think that that would be a big capacity and also that customers are looking for cheaper alternatives to ship goods. this is mentioned by american express as well so that's the primary issue. nonetheless, the bottom line, global growth forecastses are n not as good as people think. >> take a look at banks here. we did have. here's the regional banks. they are to the upside. want to point out that what we want to see, what the pulls would like to see in the stock market is getting the bond market up again. bonds are not rallying. they are sitting right at the bottom. the vanguard total bond won and if we start drifting once again

you'll see -- bottoming is good. >> interesting story this morning in the journal about how four of the biggest bond monday managers plug pimco's bill gross had really bad quarters as the rates rose. nod good for them or the share holders in those fun. let's go up town to nasdaq where seema mody is following that. >> a lot of individual movers catching wall street. take a look at india's second largest i.t. firms. after two years of disappointing results, the company beating street expectations and the company does derive a significant amount of revenue from north america so the pickup in the u.s. economy has been a big plus for outsourcing firms. web m.d., its turnaround strategy seems to be looking, consensus shares at an 128-month high and speaking of highs, three tech stocks that are at new highs. netflix, prideline, amazon,

amazon shares at a record high, up about 15 misover the last six months, and that's one of the reasons we've seen the nasdaq outperform. if you take a look at the year-to-date performance, nasdaq is outperforming the dow and the s&p 500. tyler. >> seema, thank you. >> gold on pace for its largest weekly gain since october 2011. prices are closing right now and booms is watching the action at nymex, bertha? >> what a difference a week makes. we are ending the week on a down note, though fractionally really considering that a week ago we were watching the precious metal hemorrhage on the back of that strong number on employment and the fears about tapering, a little whispering in the ear of the market from ben bernanke this week and we're seeing gold with its best performance. copper moving higher in spite of the fact and in spite of the fact we're getting weakish data. china and gdp, likely to weigh

heavily on copper coming into the week. >> let's talk bonds now and go to rick santelli at the cme. hi, rick. >> hi, tyler. it's been a wild week and a wild day. as you look at the intraday of five-year note yields, we're basically unchanged, and if you open up the chart, you can clearly see it's been a huge week. reare down about 18 basis points and if you look at the way the ten-year is trading in particular, bob is somewhat correct. the further out on the curve you go, you see that you have come back a little bit, the 30-year bond the best performer on the week, down 11 basis points in yeemptd it's the worst performer on the day. it's still about three basis points with regard to where it settled yesterday. maybe the biggest issue to pay

attention to is maybe europe. fitch joined the other ratings agency to knock france from its aaa rating. here's a look at the five-year in a span of a couple of hours. we saw 120-basis point run-up on the five-year and even though it moderated, it underscores continuing issues. sue, back to you. >> thanks so much, and the euro is getting pressured on that cut by fitch. free and fair markets? hidden bits of government stats and with millions at stake to trade on that data first. how it's hurting the small investor. plus, next week marks marisa myier's one-year anniversary at yahoo! and a developing story concerning pogue and the 787 at heathr

heathrow. more on that story coming up on "power lunch."

breaking news out of london, england. we continue to follow the developing story of an ethiopian airlines that caught on fire. it was perhaps undergoing maintenance. it was at a parking stand at heathrow airport. it's a boeing 787 dreamliner. as a result of that incident, shares of boeing were hit extremely hard. you can see them crawling off of their lowest levels of the day. at one point they were off better than 7%, now off about 4.33% on the trading session. joining us is the airline and travel editor with "usa today." good to have you back with us, ben. >> my pleasure. >> your reaction to the situation in heathrow right now and its impact on boeing. >> well, you know, it can't be good news. the downside for boeing, is you know, if this had happened to any other plane, this is probably not even a blog post, but because it's the dreamliner, because it's a history,

obviously any problem is going to be big news, and we -- we don't really know yet what this one is going to be, but, you know, just since i have been on the phone to talk to you guys another a.p. alert that thompson airways, also based in the uk, had one of its three planes bound for the u.s. after experiencing a technical issue of its own today so this makes two incidents today involving the dreamliner and given the history of the dreamliner, certainly a downdraft for boeing, to say the least. >> what do they have to do now? what should mr. mcinerney and his team do at this point? >> they immediate to make sure these are not serious problems. this is not the first place that our minds go to given the history. >> of course. >> what they need to do is provide that these are not major incidents, because they need to figure out a way to communicate that this is a safe, reliable plane, maybe even reliable is

important at this point and they have really got a pr offensive, i would say, ahead of them to -- to get -- restore boeing's good name in this regard and most importantly, you know, whether it's luck or engineering or what, they have got to keep their fingers crossed. we can't be having one of these stories every 30 or 45 days with the companies to see any kind of success on the stock market or anywhere else. >> we should note that we do not know if it is at all related to the battery situation and the battery problem that the company had earlier on, and they have put fixes in place, we might add, to address those issues, and so our phil lebeau painting out earlier from his vantage point if you look at the footage, the fire is not coming from the area where there were previous battery problems, but from the crown of the airliner as he put it where the crew usually sleeps, so we don't know what caused this incident, and, of course, the faa has said that they are in contact with boeing and they are going to be working

with boeing to investigate the situation, but do they risk -- does boeing risk at this point the cancellation of deliveries? there are still a number of deliveries scheduled for the 787. >> well, i think it's too early to tell, but i think we can assume that this doesn't make it any more likely that they will keep a normal schedule than it makes it less likely. i think we wait and see. at best this is neutral news, with you it could be bad news and, again, like you said, a lot of speculation at this point. too early to tell at this point what the cause, is and it's hard to say what would be worse is if it's a new problem or if it's a return of the old problem, but that said it could also turn out to be a minor, minor event that wouldn't have generated even, you know, two cents or mine if not the previous problem. >> let's hope it's the latter. >> yes, i think we're all keeping our fingers crossed. >> appreciate your perspective. ty, down to you. >> all right, sue, thank you

very much. another bit of breaking news. as we told you moments ago, after months of speculation, the buyer of hulu, the video service, will be no one. the owner is nbc universe a.g., 20th century fox and walt disney company have decided to hold on to the video service after considering various bids and basically rejecting them. they will infuse $750 million in fresh cash into hulu instead, and for now it will remain an independent company. edward life science is remaining independe independent. soda stream is fizzling, oppenheimer downgrading the stock to perform from outperform saying it expects choppy second-quarter results. "street signs" will have more on soda stream in the next hour. and u.s. airways shareholders approving the carrier's plan to merge with american airlines clearing another hurdle. the merger was announced in

february and is expected to be completed by the end of september. sue? >> ty, believe it or not, next week marks mary, as mayer's o one-year an verse. what are the challenges facing her and the company going forward? jon fortt is here. many didn't think she would engineer an improvement in the stock. >> she's communicated a vision and set expectations low and generating the right headlines at the right time. even dealt with some setbacks, remember the blowback when she killed telecommuting richard bransoned who offered his two cents. 85% approval. the challenge in the next year is going to be getting the fundamentals to catch up with the hype. yahoo! sales are flat compared to last year's levels, though

wall street is hoping for a guide to about a 3% bump in q3. we'll get the numbers on tuesday but the display ad business was actually down 11% in the first quarter. hasn't grown any quarter that mayer has been in charge. yahoo! is charging more for fewer ads, that can't go on forever, need more popular products, especially with mobile and video that they can charge advertisers done. done a nice job getting yahoo!'s house in order internally. hiring a new executive team and setting new cultural benchmarks and a place where hot startups may be the deal. she needs to move the needle revenue-wise, not on everything but on some things. >> she does this all while having a baby. i don't know how she gets it done. >> i couldn't do it. >> i couldn't do it. >> not just anatomically, i just couldn't do it. >> ty, back to you. >> i was worried about jon for a minute. free and fair markets, the

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welcome back to "power lunch." i'm phil lebeau with an update on the 787 dreamliner fire at heathrow airport in landon. the ntsb is now sending a representative to heathrow to assisted with the investigation into this fire. that is an interesting development as we try to figure out exactly what happened with this fire. again, the ntsb sending a representative to london heathrow. take a look at shares of boeing, down as much as 7% earlier today. they have come back a little bit but still down more than 3%. sue, tyler, back to you. >> this is on reuters, ethiopian airlines saying that that aircraft was parked at london heathrow for more than eight hours before the smoke was

detected another piece of the puzzle. >> the first fire took place when it was with japan airlines for the dreamliner back in january, that was started in the auxiliary power unit, the battery in there provides power to the rest of the dreamliner when it's parked on the tamarac. it's unclear if that auxiliary power unit was on while it was parked over the last eight hours, so that's a big guess in there in terms of whether or not it was, but it is interesting that it was parked for that long before this fire was noticed. >> thank you very much, phil. we want to note the excessive volume right now in boeing shares. off their worst levels and the stock is having their worst day since august of 2011 accounting for all of the dow's decline, and it's the heaviest trading volume since june of 2009 on boeing. switching gears to a very interesting topic on wall street, highly controversial one

as well. high frequency trading. this time it's on k street. apparently some "stop trading" houses are paying to put their servers closer to the offices that release government data. cnbc's eamon javers has the details for us. eamon? >> reporter: hi, sue. a lot of folks are familiar about the theory of co-location on wall street where high speed firms pay to put their servers as close as possible to the exchange servers up in new york. what most people don't know though is that's going on here in washington and that's why we're standing in front of this building here, 1275 k street. inside this building there's a facility operated by a firm which allows firms to co-locate servers here in washington in order to get access to government market-moving data as fast as possible after its release. take a look at this map, and what you see here is why this building is situated right here, why this facility is here. we're just a couple thousand feet from some of the key areas of the federal government that released economic and market-moving statistics here in

washington. from here there's a special microwave line on the roof of this building. they can zip this stuff back up to new jersey for trading at the nasdaq very, very quickly from here. the facility is operated by a firm that didn't want to comment for our story today but have some stuff up on their website. coresite said their washington, d.c. co-location facility offers customers interested in receiving low latency economic and government news more than a millisecond advantage over serbs such as ashburn, virginia which is a major advantage for filing more trades at a better trade. there's a big advantage of getting these government statistics from washington to the trading floor. >> senator elizabeth warren with her new plan to break up the big banks. we'll talk about it on the power rundown right after this.

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power rundown time. joining us cnbc.com net net editor john carney and first to jim cramer's interview exclusive

with jpmorgan ceo jamie dimon earlier today. a lot of concern about rising interest rates, but mr. dimon didn't seem particularly alarmed about it. >> no. in fact, there are a lot of ways the bank can make more money when interest rates go up. it will hurt the mortgage refi business, very clear about that. but he was not concerned at all about this. >> he seemed basically to say that if interest rates are rising because the economy is better and that makes people feel more confident, maybe more active financially, that counteracts any -- any dampening effect on the mortgage market. >> obviously it does and people will use their credit cards and things boosting jpmorgan on the quarter. on the other hand, there will be some turbulence and maybe jpmorgan is a good position to ride that out and maybe some other banks that have gone longer on the yield curve, maybe they will have more problems. >> i guess what they does is borrows its short-term rates which haven't gone very much and the longer rates that have gone up a lot. >> it's funny how your deposits

go up more slowly than they are charging you. >> it will be very interesting to see going on the rest of this year who gets hurt and who gets well. >> senator elizabeth warren, not a fan of the big banks and wants them to break up. on "squawk box" this morning and here's what she had to say. >> too much concentration in the banking stri in 2008, and here we are in 2013 and the big four are 30% bigger. that puts too much risk back in the system. >> neil, you think she's got a point but she's also missing the point. >> on the one hand she's saying the banks are too big but the bill she's co-sponsoring, trying to split up investment banking and commercial banking and saying all that casino stuff should be guaranteed by the government. two things going on. it's important to realize the financial crease ease had nothing to do with concentration in big banks, small

institutions. >> overplayed in one particular area. >> that time it was a commercial real estate. >> i don't understand how this can work given the modern economy. she wants stop banks from underwright bonds. how do you corporate finance in modern america with these things split up? there was a reason why before we repealed glass/steagall it started to go away because you need to be able to do securities work to be able to do modern corporate banking. >> the form follows the function because they started doing the functions and then they had to change the form. >> long before they took away gleegal, a colleag glass/steagall. >> a remember random story, a russian playing hockey for the new jersey devils is retiring and walking away from $77 million. his nim is ilya kovalchuk, had 12 years of his 15-year deal left. a $100 million contract that he signed back in 2010.

would you ever walk away from that amount? he's going to go make money in russia? >> maybe it's just me, tyler, but seems to me that first 77 million is most important and ilya's made a lot of money. maybe he'll spend more time with his family and maybe he's same. >> tremendous that he decided to do something besides make millions of dollars, a good example for everyone. money isn't everything. >> he's going to go back and make money over there. i think the yankees want alex rodriguez to go to russia and give up his millions. >> put him on a plane. >> next flight over. you can't wait for monday to get your twinkies, i bet. we'll tell you where to get them now. twinkies coming up. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business?

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if you can't wait, just absolutely can't wait until monday to get your fill of twinkies, do not despair. walmart has begun selling the ubiquitous snack, the little delicacies, the spongy cream-filled cakes in its stores already. it has been nearly eight months since hostess filed for bankruptcy, and when it did

twinkies disappeared tragically from store shelves. the company was subsequently brought by two private equity firms, the official relaunch is july 15th but you can get him, already. walmart, and from one yellow food to another, and this one is no yolk, the expression it seems it's so hot that you can fry an egg, people are doing just that. death valley is asking visitors to just stop, stop frying eggs on the sidewalks out there. it seems that maintenance crews are overwhelmed with the cleanup. temperatures there have gotten as high at 129 degrees this month. make sure you cook the eggs thoroughly. >> and use the skillet, please. let's check the markets before we leave you here on "power lunch." the dow jones industrial average is down 14 points, off its low of the trading session as boeing starts to come off of its lows. the s&p is down just a fraction. the nasdaq has turned positive, up three points on the trading session. as for boeing, after being down

better than 7% showing its worst day since august of 2011, heaviest volume since '09. right now it's off 3.25% at 103.44. have a great weekend. >> i'm going to do the herrera commute and try to get back there soon. >> you got it. "street signs" begins now. >> and we begin "street signs" with that breaking news on boeing. a boeing 787 dreamliner caught fire earlier today at heathrow airport in london. the cause of that fire still being investigated, but boeing shares are way down, taking a big hit on yet another potentially damaging story for bow egnewest airplane. let's get out to phil lebeau and you had that as well as a thompson air 787 returning mid-flight to manchester, england, because of some technical problems here. what do we know about the 787 incidents today? >> well, we don't know anything ou