they are buying december calls. >> simon baker? >> green mountain coffee going into earnings, go short. >> josh brown? >> dislike the home builders. don't think they are going down. if you haven't sold do so now. >> mr. murphy? >> pfizer, pfe. >> more "fast" tonight and "power lunch" starts right now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> it sure does, and we have a summer slide on right now. after yesterday's drop, the dow jones industrial average again in negative territory, down right now about 80 points. should everyone own a home? well, the man running housing and urban development said on cnbc he doesn't think so. he said no, and changing channels and turning pages. big changes anot for the way we watch tv and read newspapers. today the man who wrote the book on media ken aletta joins us. first to my partner ty down at the nyse today.

>> thanks very much. the dow down again today. hit its lows about 11:00 and then i got in the car to come down here and then it started to come back. each passing block, as i drew nearer, the dow industrials rose a little higher. nonetheless, down about 82 points, about half a percent over the past couple of days. we're town 1%. 15,530.19, well above 15,000, up about 18% year to date as you see on that chart. let's take a look at the s&p and see where it stands, down again half a percent at 1699, nipping below 1,700. the nasdaq off 22 points, two-thirds of a percent and the russell, after sort of high after high at 1053 right now, down 9.99 points. ten-year note, there you see the yield at 2.66 and change, and gold down $19 an ounce at $1,282. that's the first time below that -- i guess below 1300 in a couple of weeks for gold.

let's get some of the trading action here with bob pisani. a little fed speak, a little whatever. >> believe it or not, this is practically the weakest day since the end of june. might be like june 24th, that's how we've been essentially straight up. i'm looking at the economic news. the question is july is the second half of the year really better, like people have been promising us and so far it's not bad. three out of four, the trade deficit, much better than expected. gdp is going up on that, ism services, manufacturing beat. the only outlier has been non-farm payrolls. we'll keep that scorecard for you. president obama giving a speech on fannie mae and freddie mac today, and i see the home builders are a little bit weak. there's a concern he'll call for essentially phasing out fannie and freddie and some people are concerned it will lead to higher interest rates down the road, way down the road but people stress about this very early on. meantime, the retailers a little bit of a split news here. kors and fossil had great

guidance, the jewelry-makers, shoe-makers, et cetera and the teen retailers, american eagle lowered their numbers and they are all to the downside so really a split market here. >> that's really amazing. look at those michael kors numbers, up 18% or something like that, just astounding. >> overall the numbers have been really good. again, in a different group, accessories, bags, shoes, jewelry, that's what's selling. >> get one of these suits there? >> yeah. >> we're going to run out to rick santelli now in chicago, get the news on a three-year note auction, rick? >> parts of this auction that were very, very, very good. we gave the auction a b-minus. let's go through the internals. 32 billion three-year notes, yield, .631. the one issued market was trading above .638 and .639, and just by that aspect of the dutch auction we see good distribution. here's where the fly in the ointment. bid to cover, 3.44.

this auction 3.21. very, very strong indirects at 41.4, but somewhat weak on the direct which has been a function of many auctions at 14 versus the ten auction average. b-minus. tomorrow 10s and thursday 30s, and right now it's tyler time. >> professor there, b-minus. >> and kenny polcari has joined us, a cnbc market analyst, and what do you make of today's news? bob took us through some of the highlights and lowlights. >> and i think that's fine, but the market is just kind of churning. the macro news won't affect trading coming into the last two weeks of august. a lot of people away. i don't think any of it unless it's a really big miss either way is going to create directional drive. i think people are just concerned about what the future holds, the whole -- the fed conversation is dominating trading and it makes perfect sense that the market will give a little bit back, right? listen, not even down 1% yet from the highs so no one should really be concerned at all, but

6098 on the s&p is going to be a key level. if we close below it might set us up for a further test. >> when you're relying on the possibility of fannie and freddie rolling out over the next ten years, and that's what you're hanging the housing stocks on, you're really looking for anything to trade on, right? >> things are moving in a lot of different directions. european economic news has been a little bit better than expected recently, and we're seeing a lot of in flows now in some of the european stocks. watch this as a late summer story. in flows into europe. >> gentlemen, see you later. >> lots of news in retail as bob just mentioned. beginning with michael kors. less see how that stock is trading. three months up 23%, up 3.5% today alone. faction accessories retailer better than expeblgtd on strong revenue and strong quarter also for the accessory retailer

fossil as well. an 18% increase in second-quarter profits. that's the one that's up 18.5%. i may have earlier said it's kors. it's fossil because i looked at the chart too quickly. up $20 today at 127.45. business booming in europe and asia. the stock up more than 30% year to date, and about 18% today. strong sales for the shoe retailer. one of my wife's favorite stores, dsw. as a result it raised its full-year guidance and announced a two for one split. the stock is up 23% over the past three months. that's a lot of shoes. on the flip side, the teen retailers, bob point out, american eagle cutting current guidance in half blaming weak sales and margins. rivals aeropostale and abercrombie & fitch both falling as well. sue? >> ty, thanks very much. charlie evans, one of the fed presidents, making some comments in a speech that began just a few moments ago. basically there are two that just kind of came out to me. mr. evans says basically that he

will see the bond buying -- he thinks the bond buying will start to be cut back by a little bit later this year, but more significantly he says that he would not rule out those cuts beginning as early as next month, so it will be interesting to see what the bond market's reaction to that, is and i know that rick santelli is following mr. evans' address as well so he'll probably talk about that when we join him in a little bit of time. now if indeed that bond buying does cut back in the next couple of months, that may move interest rates which will affect housing, and president obama is headed to arizona today, one of the states hardest hit by the real estate downtown. diana olick joins us now. >> reporter: president obama is going to phoenix because, according to administration officials, that's where he laid out his housing bailout plan four years ago and now phoenix is in a much better place because of it, that is the spin, but let's go to the real story. phoenix was once ground zero for the housing crash thanks to rampant overbuilding and investor flippers who used's

credit to drive prices through the roof so where are we now? prices are up 35% from the bottom in september of 2011. that's true, but they are still down just over 40% from the peak in june of 2006. who drove prices back up from the bottom? investors, not small-time flirps, but big-money hedge funds that came in with tons of cash, devoured thousands of distressed properties, rehabbed them and are now renting them out. so now the president is back taking a little victory lap while saying we do need to do more, like dismantle fannie mae and freddie mac which could actually make mortgages more expensive. he also wants to facilitate more refinances for those without government-backed loans, and it would take an act of congress to do that, and rates are rising fast. he also wants to get mel watt confirmed to be chief regulator of fannie and freddie and wants more consumer protection. the president has said most of this all before, but this time he does it against a backdrop of recovery in housing, or so it

seems. a new report on home prices today from core logic showed a slight pullback as higher interest rates hit potential home buyers. sue? >> all right, diana. stay with us. we'll talk now about how this might impact home ownership. we'll take a listen to who what housing and urban secretary sean donovan said earlier on "squawk box." >> we're not going back to a system that got us into the bubble in the first place. not everybody is going to be able to get a mortgage or buy a home. we need to recognize that as a country. >> let's bring in a senior policy analyze with guggenheim partners, and diana is with us as well. jarrett, why don't you start with that. should everyone be able to buy a home or as secretary suggested with the changes put in place it might be harder for some people to get a mortgage. they might not be able to get a mortgage. what do you think? >> well, everybody should want to buy a home. it's a great part of this country, a desire of people to actually own a property and be part of a community, but that's

very different than whether everyone should be able to qualify to get a loan. i think that's what the secretary is referring to. our big concern is that government policy has gone too far and too few people can actually qualify to get homes that they can afford. >> diana, weigh in on that, because you've mentioned that to us before, that the bank lending standards have changed dramatically, but then, on the other hand, a lot of the banks are lowering standards at the same time to get that refi money coming in. >> they want to get as many people refi'ed as possible and that's a benefit to borrowers struggling on the mortgages. should everyone own a home, that's a personal choice but think about it from a policy standpoint. for decades the push was on to homeownership. that was considered, quote, the american dream. >> right. >> that's what got a lot of us into trouble because of all the loose lending and because the administration was pushing the lending, previous administrations, that is. now there's a big move towards rentership, a new renter nation, and a lot of that is driven

socially by a lot of the younger generations who want more mobility. want less responsibility in the homeownership, and they want to be able to be within cities where it's more expensive to boy and so it's easier to rent there, so you have to weigh the two. the personal choice versus this whole policy push is at the american dream and even in the speech today he will likely say it's part of the american dream. >> all right. jaret, diana, it's really hard for young people to afford a home these days. rising rates does take housing a little bit further out of reach, but they are also graduating with record amounts of student loan debt. many of them are in delinquency on this debt, so, you know, we have a group of people, yes, they are renters, but i think many of them would like to be owners, and we don't have to go back to what we had four or five years ago, but there has to be a happy middle ground. >> have to leave it at that. thank you both very much, appreciate it. >> president george w. bush has undergone successful surgery at a dallas hospital today.

that surgery was needed to place a stent in the heart of the 67-year-old former president. doctors discovered a blockage in the president's heart during a routine physical yesterday. he is expected to return home tomorrow and resume his normal schedule by thursday, and we wish him well, of course. u.s. air force transport planes have landed and taken off again from yemen after picking up americans living in that country. that includes embassy personnel. the state department order evacuations for all non-essential staff to leave yemen in the wake of the terror warnings that have forced closures of u.s. embassies throughout the middle east and africa. intelligence sources say the extra security measures were prompted after messages by al qaeda leaders were intercepted. ty? >> well, he is literally the man who wrote the book on media, actually several books. ken aletta wrote a book about the three networks that used to be known as the big three, and in some circles they still are, and wrote a book on the google guys. ken, get ready for our question, what is the next major newspaper

to be bought or sold now that the "globe" and "the post" have just changed owners? and also ahead, get set for marcus lemonis. "the profit" will be here today on "power lunch." >> this is my number one do if you have a small business. >> the number one thing you have to know if you're running a small business you is better know your numbers. if you don't know your numbers, you don't know your business. [ shapiro ] at legalzoom, you can take care of virtually all your important legal matters in just minutes. protect your family... and launch your dreams. at legalzoom.com we put the law on your side. and launch your dreams. (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars...

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. welcome back to "power lunch." i'm courtney rage abe. there's been market speculation that the jc penney ceo is stepping down but any market speculation that mr. hannah is stepping down as chief executive officer is completely false. the company tells us that mike alban has as bald his go forward leadership team that does include hannah as well as debra berman. executives are part of this highly focused and leadership team in place as it heads to the fall season, all important for back to school. separately cnbc learned that svp working under mr. hannah has recently stepped down. shares hitting 12 and a half year lows.

ty in. >> daniel loeb's proposal to spin off its entertainment business has been rejected. they are taking a wait-and-see attitude and keeping all the options on table. it's been a bit of a wild ride for sony. the stock is up about 85% year to date but that was after the company lost 70% over the previous two years. no deal. cbs show les moonves blasting the latest proposal, and i do mean blasting, proposal from time warner cable to end its blackout of the network's programs calling it an empty gesture and unrealistic. those were the nice words. here's how the two are trading right now. you can see them both lower. time warner by about 2%. julia boorstin covering the story for us from l.a. julia? >> tyler, not only are time warner and cable and cbs not negotiating, but the flame throwing between them is heating up. les moonves sent a two and a half page letter attacking the

ceo glen britt for refusing to negotiate calling out ceo rob marcus as dishonest for saying on cnbc that cbs has not responded to their proposal. not acknowledging that cbs had just received it. now, time warner cable's marcus proposed going a la carte in offering cbs for a separate fee. >> cbs can choose the terms and the price, and we would agree that 100% of whatever was charged and paid for by customers would be paid over to cbs so that we would not profit at all from the sale of that product. >> moonves responded to this proposal saying, quote, anyone familiar with the entertainment business knows that this is an empty gesture. we know that a through a la cart universe is not one that time warner cable welcomes. moonves also dismissed time warner cable's proposal to revert to expired agreements, noting that the last deal the two companies made was back in 2008, before the ipad or the rise of streaming video. now the companies are struck on the flexibility that cbs should have for digital distribution,

and, tyler this, standoff isn't ending any time soon. >> and the rhetoric is getting hotter. joining us now is ken auletta, author of multiple best selling books including "googled, the end of the world as we know it" and three blind mice, how the networks lost their way." let's get back to the time warner dispute. it seems to me what time warner said was you don't like our last offer. here, you go sell yourself to our viewers and you set your own price, see how you like that, right? >> it's all gamesmanship. i mean, the truth of the matter is that congress would never allow cbs to become a cable company. supposed to be free television, and so it's just a game that they are all playing, and they are playing it at a time when it doesn't matter as much. this is summer. it's rerun time. time warner is not losing that much. cbs is not losing that much. when you start getting the u.s. open on cbs, that -- that transfers some leverage to cbs. >> do you agree, ken, those who

say that perhaps this is the opening overture towards a la carte cable or not? >> that's something as les moonves says doesn't want. none of the cable companies want a la carte. the viewers might want a la carte. >> well, that's the point, yeah. >> the truth of the matter -- you're talking about two companies among many that the business is going under their feet, and the feet are slipping, because the business is changing so much, because of places like netflix and apple and amazon and youtube, and -- and video on demand. i mean, it's just a different world, and -- and companies like time warner, which increasingly sees its growth not in the cable business where they are losing subscribers but actually in broadband. >> and, of course, the other day, mr. dolan of cablevision said he could potentially see a world in which his company is out of feeding television signals over cables and is totally -- is totally devoted to broadband. let me turn you back to

something jeff buickus of time warner said describing netflix as a gnat on an elephant's hide. is he right about that? >> actually amended that position somewhat later because he's now doing business with netflix. didn't call them a gnat on an elephant's hide anymore. >> funny how that works. >> netflix is a frenemy as apple is and google is. they buy the services, and as the syndicated business for television declines. increasingly they find it possible to sell programs that have been on a while to netflix and amazon and apple, et cetera, so that's their friend in that case of the on the other hand, when they drive away or they siphon off advertising dollars, then they are an enemy. >> if i can turn you to the deal that we reported yesterday, jeff baizeos of amazon buying "washington post." i think it took almost everybody by surprise certainly. when you look at the price that he paid compared to what "the post" was worth some years ago,

he certainly got it for a bargain, but he's not the only very wealthy individual billionaire to buy newspapers. what is it about owning a newspaper that appeals to these high net worth individuals? is it the editorial power, the platform or ego or maybe both? >> i think you have to disaggregate here. mr. henry, john henry buying "boston globe," that's a local decision, and it raised all kind of ethical questions, how the sports writers independently are going to cover the boston red sox which he owns, or the newspaper now owns. in bezos' case it's different in what he is someone who is arguably mr. digital, and one of the issues for him, he loves being a disrupter and loves the idea i'm sure of saying how can i transform the "washington post" into a model digital product and actually figure out a way no one has figured out yet how to make money on a digital newspaper n.warren buffett's case he's buying monopoly newspapers in small towns which

have a profit. "washington post" is losing money. >> ken, let me turn you to the next big -- a big kahuna out there in the newspaper business. the bancrofts sold to the murdochs, dow jones, the commandlers got out of "l.a. times," now the grahams have sold "washington post" publishing properties to mr. bezos. that leaves the salzbergers and the "new york times" it seems to me. are they next in line, and can you see a world where the current and soon-to-be former mayor of new york city, michael bloomberg, buys the "new york times"? >> well, i think that the fact that the graham family, which like the salzberger family was invested in their blood in that newspaper, that they sold, obviously the attention will now focus on will "the times" sell and one of the reasons and one of the questions about "the times." the family loves "the times" and arthur salzberger jr. has done a good job of keeping the family involved unlike the bancroft family at the "wall street

journal." the problem is the family hasn't gotten a dividend in four years, and you can't send your kids to college without money so the pressure on them in a world where the times is not -- it's in better financial shape than "the post" but not that much better. it's a declining business. every newspaper is leading a slow death. >> is this the kind of property that mr. bloomberg would like eventually? >> doesn't fit in with bloomberg lp as well as say "the financial times" does, a business publication but clearly mr. bloomberg will be looking to do after the mayoralty. that's a nice platform. >> ken auletta, thanks very much, a writer with "new yorker" and writer of many books. always great to see you. sue? >> a new episode of "the profit" airs tonight at 10:00 p.m. eastern time. meet its star, marcus lemonis, and he eel do whatever it takes to fix a failing business. that's straight ahead. plus, a new wildfire is sparking in california. we are tracking the big blaze. "power lunch" is back in two. with the spark miles card from capital one,

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no word yet on what started the fire. sue? >> ty, thank you. tonight a new episode of "the profit" airs here on cnbc. self-made millionaire marcus lemonis will do whatever it takes to save your dying business, but it will cost you, and he'll join us in just a moment, but first a sneak peek at tonight's episode where he helps a flower store owner with his struggling business. >> you know where hank is? >> i don't know. i don't know if he's going home or what. >> i cannot believe he left. not only is it disrespectful to the employees, it's disrespectful to all the customers who are coming here today. >> he really left? like he's gone? >> as far as i know. >> he literally disappeared. i'm pissed. >> oh, hey, hank. where did you go, bud? >> we have a ground opening. >> hank, i don't understand why you left. this is [ bleep ] ridiculous.

you need to [ bleep ] come back here. i'm here for a week, doing all this stuff, and this is ridiculous that you left. turn the car around and get back here and be a leader right now! >> i have to say i've seen a lot of this episode, and you really need to see this one tonight. it's fantastic. "the profit" tonight at 10:00 p.m. eastern and pacific. marcus joins us right now. it's great to meet you, great to have you back with us here at cnbc. >> thank you, i saw your kids running around and i asked them if they will watch tonight and they said their mom won't let them. >> i'll dvr it for them. >> were they be good? >> when you're 18 you can watch it. >> if not, when you're done here you can go police them. >> that's right, that's right. >> this was an interesting business because i grew up in southern california, and i've heard of this florida shop so i was very much interested in it but it's not a first generation business. it's a second generation business. how much did that have to do with the fact that that company was really struggling in. >> so oftentimes you'll find when you find the first

generation businesses with a founder in 1966 started the business, they have a passion and believe in what they are doing. second generation, they are just not interested, and i saw it on a daily basis. >> was it a slow decline, or did they just basically think they had the world on a platter and, therefore, they didn't have to keep up? >> i mean, one of the most successful flower shops in the country, they did the rose bowl and celebrity events and weddings and funerals, et cetera. when jacob marsh, the owner died, i mean, things just changed and his son didn't have the same sort of work ethic and passion about the business. it just didn't work. >> you know, i was surprised that the decline took place so quickly, but is that particular to that particular business? in other words, you know, you only have to get one bad vase of flowers or, you know, at a wedding the flowers don't look like and the word gets around. is a business like a florist shop, even on the scale that this is, is it more vulnerable to losing customers more quickly than say another type of business where you might give them a second chance?

>> one of the things that i want to make clear is that the show is really about business, not about a flower shop or a lot of things, it's a microcosm of what happens. in this particular case it's a people problem. >> right. >> so you can always fix the process and refine the product and add things and take things away, but at the end of the day it's a people business, much like your business. it's all about the people. >> mar cushions you'll be with us again a little bit later in the show. thrilled to have you here, and once again we'll all be watching tonight, even my kids on dvr but i might have to bleep out some of the language. congratulations, marcus. we air tonight at 10:00 p.m. eastern time with "the profit" on both the east and west coast only here on cnbc, and you can join marcus on live chat tonight, and he's going to stick around for the power rundown coming up in the next half hour of "power lunch." ty, back to you in. >> every time i try to say mcclellan oscillator, we have to bleep that. gold lowest level in two weeks and right now sharon epperson tracking the action.

sharon? >> reporter: gold prices are down about $20 right now near the close, and we're looking at prices that have now gone below last week's low. in fact, what traders are really watching now to see if gold will fall to that 1275 level, the key support level they are watching for next. a lot of technical selling and chatter about what the fed will do and whether we'll see tapering of quantitative easing. a lot of traders on the floor believe there's positioning going right now. the only positive side in the metals complex is copper, getting a little bit of relief here. back to you. >> sharon, thanks very much. bob pisani joins me now with trading action. >> charles evans was just out, mr. evans, a well-known doving came out and said he would not rule out a september tapering. now, when you've got a guy like charles evans, a well-known dove coming out and saying he's not ruling out a september tapering, now it's getting a lot more real because if he felt the data

didn't support the data he'd repeat it. the news didn't move anything and the comments from him, a well known dove, illustrates the possibility of the september tapering is becoming right now. want a note that while we're not down much the leadership groups are. transports, airlines and biotech going into the beginning of august, they did really well in the month of july, so when you see them down a little bit more than the market, you see there's a little bit of lightening up of position. home builders and president obama will be giving a speech today that we understand will be calling for the gradual elimination of fannie mae and freddie mac to be replaced by a new agency, somewhat like the fdic and some are concerned that this could lead to somewhat higher interest rates down the road. >> thank you very much. let's go uptown to the nasdaq and check in with seema mody following the movers there. >> over the past five trading sessions we've seen the nasdaq hit new highs.

nasdaq down 23 points on the day. take a look at facebook. after gaining around 16% over the last month, the stock is trading lower by 1.5 boston despite bernstein raising its price targets. revenues jump 7%, sequentially and seeing strong demand in north america and regeneron pharmaceuticals, the worst performing stock on the nasdaq 500 as its eye drug sales slowed, that's their eye drug that treats age-related macular degeneration. the stock down, 5.8%. back to you. >> all right, seema, thank you very much. to the bond market and rick santelli tracking the action at cme. rick? >> thanks, tyler. 1:00 eastern. had a fairly good auction of three-year notes. seemed to bring buying in, look at the intraday at 3 or 10s, all maturities are unchanged.

now the dollar index, on the other hand, as you see on this chart is slipping. open the chart up to mid-june. we're about ready to test the close up 81.5. hasn't happened often. maybe technically significant. pay attention to this as the euro circulates 1.33. >> two big downgrades for two big blue chip chips and lingerie for the 1%. got to see it. why don't we take a look at some of the stocks taking a hit in profits. 800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550

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okay. so coming up on "street signs," guys, at the top of this hour, a massive retail roundup. got jcp plunging. teen retailers really taking it on the chin today, but

accessories are doing well. what gives, and what stocks are going to benefit? bezos has pretty big pockets, what should he or amazon buy next? everyone has a different idea on this one, and you know what dental dams, not very sexy, but henry shine says they are sexy. up 30% this year. where do they go next? all that and more coming up at the top of the hour on "street signs." back to you on "power lunch." >> mandy, thank you very much. ibm lower after credit swiss downgraded the stock to underperform from neutral citing weak mainframe demand and they cut the target price to 175 from 200. deere also moving lower as william blair lowered its rating to underperform from market perform t.pointed to worsening fundamentals for u.s. farmers over the next several years. and general motors slicing 13% off the sticker price of the chevy volt electric car. the 2014 volt will start now at

around 35,000 which is 5,000 less than the current model, and i believe you get a $7,500 rebate after that. gm doing that. is that a good sign or not? we'll talk about that when we do our market rundown in just a few minutes. lingerie for the 1%, and coming up after the break, the biggest money men who tweet. we'll fill in the blanks after the break. ♪

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for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. all right, as promised. lower are the top money men, the billionaires that tweet. let's take a look at the list. warren buffett. carl icahn. bill gates, richard branson, sir richard branson, and elon musk. for many sports fans tweeting has become an indispensable way to share opinions, both good and bad while watching a game on tv. during the nba finals the miami

heat's chris bosh told carl quint nianilla to be on the receiving ends of one of the rants. >> i just like to put stuff out there about what i do and how i think and things like that, and i think people appreciate that. >> reporter: we spoke to chris bosh in the midst of the nba finals. miami heat versus the san antonio spurs, a series so intense he stopped tweeting, temporarily. >> i don't want it to take away from my focus because it can be -- it can be addicting. i think everybody knows that >> reporter: seven-game series generated more than 26 million tweets, aum all of them unvarnished and some inkind. how much attention do you pay to critics, haters, and how much do you engage them back? >> 0%. you know, out of sight, out of

mind. i'm like this is ruining my day. why am i even looking at this, you know, so i just -- i just leave it alone. >> the twitter revolution airs tomorrow night at 9:00 eastern and pacific. ty? >> all right. i look forward to that. a special edition of the power run down after "the profit" which airs right here on cnbc. they have take enus off the market. >> gm is cutting the price of the chevy volt by 5,000 to better compete with electric car riva rivals. >> companies have the responsibility to do the right thing and if we can't make green i don't know if we should be green. >> sue? >> that's a really good point. if you do what you do best and being green isn't that, move on

and go on to whatever your core mission statement is and if you're having a difficult time doing that, i mean, a 12.5% discount, that's a pretty big cut. >> and i think you also get a $7,500 credit back. >> right. >> from the federal government for buying one of these cars. i think they are very good looking cars, but i think i read this morning that on the charge you can only go about 40 miles before the gas engine kicks in. they are good looking, but maybe they need to come down more in price. >> in a lot of cities that's not going to work. in l.a., for instance. >> the price point is going to hel

country and game here. >> so i'm an immigrant myself and i love this country. giving me a lot of opportunity, but i want to follow the process. i want everyone to follow process and actually have a chance. >> do you find marcus that you are able to find as an employer when you go to hire people, do you have shortages of labor? would easier immigration reform help your business or not? because it is a big issue for silicon valley. >> yeah, i don't know if it's

going to necessarily help my business or not, but what i know for sure is i want to know there are people in this country that are being given an opportunity and would give them a clean and clear process to be legalized in this country and for me any good worker is a good worker. >> marcus, thanks so much for playing with us this afternoon and we look forward to seeing "the profit" tonight on cnbc. meantime, let's go over to josh lipton for a quick news alert. >> some news here on bats dropping. bats most widely traded stock exchange, the bzx, is currently not accepting orders, telling cnbc that they had no comment at this point as they are still working to uncover the root of the issue. also pointing out this is the first system issue they have had since the ipo attempt. that was back march 23rd at 2012. nasdaq, meanwhile, has declared self-help against bats meaning it's rooting orders away from the exchange. we'll bring you more updates on this as we get them. sue, back to you.

>> look forward to that very much, thank you. corporate espionage at the highest level. how the chinese are spying on u.s. businesses. the scale of it will shock you. >> i'm marcus lemonis and these with my donuts for small business. the best advice is to look at what the competition are doing and peers are doing and study what they do and learn from them and take those best practices and implement them in your own business.

shares of moulson coors up, the beer-maker are better than expected second-quarter results. it expects consumer demand to remain weak for the rest of the year. weak beer is not good, sue. >> no, it is not. u.s. officials have called it the greatest transfer of wealth in history. it's the massive theft of american trade secrets through cyber attacks and espionage. much of it coming from china. until now few u.s. firms have actually been willing to admit they have been victims of these attacks, but now one of them is speaking out.

>> daniel mcgann says his company, american superconductor, was the victim of economic espionage right out of a cold war spy novel. the blatant theft of advanced computer software that he was selling to a chinese energy firm. >> they were out to kill my company. >> cyber bullying. >> reporter: federal prosecutors charged that sinovel, a wind energy company with close ties to the chinese government, lured one of mcgann's employees to steal software, offering him a $1.7 million contract and access to women. these skype messages obtained by nbc news are key evidence in the alleged conspiracy. all girls need money. i need girls. sinovel needs me read one of the skype messages to a sinovel executive. criminal charges were filed against sinovel and two top

executives for trade theft and wire fraud. mcgann said the alleged theft cost his company more than $1 billion in market value. >> you have to lay off a lot of workers. >> yeah. >> we laid off about 500 people, very difficult. >> reporter: sinovel which has denied wrongdoing in the past declined comment to nbc news. so did a lawyer for the man who perpetrated the theft. >> we're no longer going to play nice about what we know is as basic as highway robbery, and that's exactly what they are doing. there ought to be a consequence for it. we've got to have real leverage on the table, and that would come down to denying china access to the u.s. market. >> and joining us now is nbc news national investigative correspondent michael isikoff. michael, great to have you with us. >> good to be here. >> how widespread is this espionage? >> it's pretty enormous.

a u.s. commission on intellectual property theft co-chaired by jon huntsman there and dennis blair, former director of national intelligence put the cost at 300 billion a year and millions of jobs being lost as a result of this. now, most companies don't want to talk about this. don't want to talk about it because they don't want to advertise vulnerabilities in their computer systems, and many of them are doing business in china. they don't want to upset the apple cart, but behind the scenes there's a lot going on. the department of justice has set up an intellectual property task force to focus on these cases and law enforcement sources tell me the fbi now has over 100 active criminal investigations into economic espionage in the united states right now, so while we haven't heard that much in turnout, we may be hearing a lot more. >> sounds like we certainly will be, but, you know, how tied are the u.s.' hands? what more can they do about it,

especially if companies don't talk about it? >> well, you know, that's why this is being moved up in terms of -- in talks with u.s.-china. it came up in president obama's recent summit and also there was a cyber summit here with the state department with chinese officials just a few weeks ago. this was raised. but the real question, as you -- as you so aptly put it, sue, is how much pressure is the united states really going to bring? >> right. >> this is one element in a very complex relationship, and, you know, whether or not this is going to take precedence over some other big issues is a big question. >> michael, thanks so much. great to have you on the show. come back and spend more time with us. >> any time. thank you. >> appreciate it. to josh lipton now. he has a news flash or maybe he doesn't. anyway, jc pen, let talk about that. down 35% this year. it hit the 12 and a half year low in trade's trading session. that i believe is the low of the trading session. morgan stanley reducing earnings

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. it's a down day on wall street. down almost 100 points on the dow. the s&p down 10 and the dow down 100. "washington post," nation star mortgage and disney are some of the big dow winners ahead of the bell. ty? >> that will do it, everybody, for "power lunch." >> "street signs" begins now. well, it is a retail wreck of a tuesday. nearly every retailer sinking. two names up that i can see. a retail deep dive for you ahead. jeff bezos buys a paper but what should amazon.com buy? our all stars have some interesting ideas. tweet us what should amazon buy @streetsignscnbc and gm