final trade, mr. murphy? >> bpr. >> josh? >> first solar. >> red flags over bolder brands. >> best of luck, herb, contributor. >> yes, i'm a contributor. >> we love you, man. "power" starts now. >> "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> i certainly do not need to remind you it has not been a great week for stocks, but it has been a year where investors have become very accustomed to very good weeks. for the week right now, we are down, down, down, down, about 2.5% or thereabouts right now. we're flirting with the worst week of the year for the dow so far in 2013. so that leaves this big question. what should you do now, and we're going to answer it from the perspective of both and long short-term investors, and to do it we're going to bring you two

five-star rated money managers. that is a total obviously of ten stars worth of advice, and as the rates rise. it's kind of like a cnbc soap opera. if that ten-year bond hits 3%, what is it going to mean for stocks? what is it going to mean for housing? maybe even for the auto sector as borrowing costs move up. we're going to explore that in a dramatic way today on "power lunch." first though to sue at the nyse. >> hi, ty. let's get right to the markets after yesterday's big selloff. we're down today, but only right now about 21 points on the dow jones industrial average. the s&p just fractionally lower by about 3 points on the trading session. the nasdaq in the green, up almost 6.5 and the russell is marginally positive. the ten-year will impact your investments, your house, your car, stocks, your spending, your life really, and right now we

have the ten-year at 2.839%. so we're getting ten stars worth of advice. greg fisher, manager of the five star rated gerstein fisher growth us as does matt litvin manager of the william blair small mid-cap growth fund. welcome guys. nice to have you here. >> great to be here. >> i'm going to start with you because you have had a very good run for this market, but it's a down week. take a longer term per speccist for me and tell me what you do right now. >> sure. investors have obviously been well served by being invested in u.s. equities, but like other times we've seen in the past, investors have started to think about abandoning their foreign equities, their bonds and other parts of the portfolios. i think now is an important time to take a look at where you are strategically and pose down some of your exposure or add or maintain exposure to bonds and other asset classes that have

not been in vogue for the year. it's a good opportunity to rebalance a portfolio. >> now when you say other areas, we've talked a lot this week about europe and how they seem to have come out of this slump. they have bottomed and are actually growing a little bit. would europe be on your list? >> absolutely. i think europe of is part of the world. investors shouldn't abandon it. a very important part of the worldwide economy. i do think that the expected returns out of foreign stocks from here are likely to be at least as good and possibly better as the expected returns from u.s. stocks from here. >> all right. matt, i'm going to get to you in just a second, but we want to go to john harwood with developing news on possibly the next fed chief. john? >> reporter: well, i want to emphasize, sue, that this is speculation by i'm who are close to the process but not intimately involved in the process, and there's only a very small number of people besides the president of the united states who knows what his thinking in and i checked with several people about the assessment of the fed race and

they believe larry summers remains the favorite. one pretty well informed source that i talked to this morning said i would put the chances of larry summers being picked as two and three. that does not mean that that's where the president, is but it's people read tea leaves and talk to their friends and try to figure out which way it's going. all the white house has been saying is they are going to make a choice in the fall, and i think clearly the fact that the president was defending larry summers shows he didn't appreciate some of the criticism, but we have seen in the past that when he defended other officials like susan rice didn't necessarily pick her for the job. >> good points. thank you, john, very much. matt, longer term, you're bullish on this market. does the choice of the fed chief influence your decisions? what if it is larry summers? >> yeah. we're not trying to make a prediction either way on that. that wouldn't be a part of the investment thesis on any of the particular stocks that we own. however, it does -- when you stop back and look overall at the u.s. market, it does look

pretty attractive to us here. you can see that inflation remains low because emerging market growth has slowed. that's especially true in food and energy which only represents a quarter of the cpi basket but actually 80% of the volatility inflation, so we feel good about that. also look at the budget deficit. it's not good. it's 700 billion this year, but that's down from over a trillion the last four or five years. directionally it's positive. we think that's good for the market over the long term. short term, however, the tapering is coming. >> right. >> i would like to see an announcement made and like to see some progress on that and would like to get into it. it remind me of a kid, you beg them to take a bath and you badger them. they don't want to. they finally get in and play for half an hour in there. >> can't get them out. >> the market just needs to enter the tapering period, see what it's like and lock around

and realize we're okay. we're going to do better and will have more business confidence if -- if managers can look around and say we're not being supported by the fed at this point. >> now i know you like the financials, but you think consumer discretionary, matt, is somewhat extended. specifically what stocks would you buy right now? >> yeah. we do think the consumer discretionary is looking a little stretched in our models. i would say one particular stock we like there is under armour, the maker of apparel and footwear for athletics. there's room enough for nike which is a very strong company, but i think there's room for a number two. we think of this as a $2 billion revenue company in a $10 billion brand. good vision for management there. >> right. >> and then you mentioned financials. that's an area that we're quite positive on actually right now. still looks cheap even though it's had a nice run and a particular company we could mention there, chicago board options exchange which is an exchange. a lot of proprietary products that they own, a very strong

durable business franchise, and that's what we look for here at william blair & company. >> greg what, areas of the market would you be committing new cash to? you mentioned europe and the fact that it returns outside the united states, might do better here at home but if you want to stick domestically what sectors do you like? >> i think broad diversification is obviously key, but we would tend to focus on companies, or sectors, that don't have a ton of leverage exposure. we were talking earlier about tapering, interest rates and inflation. these are big issues. we're looking for a lot of assets without exposure to leverage and also a lot of global exposure, whether they are large u.s. companies doing business overseas. today we heard about walmart and retail sales as an example. >> right. >> and when you look at some of their change next pected earnings, a large part of that was caused by the fluctuation in the dollar so to be aware of the tensetive that any company has,

particularly u.s. companies to exposure overseas. >> gentlemen, thank you very much. greg, matt, we appreciate it. >> thank you very much. >> ty, up to you. >> housing starts up 5.9% in july. most of that is for apartments, not single family homes. diana olick is going town pack the numbers for us in washington. diana? >> well, that's right, tyler, that's why it's so important to go past the headline number to put all of this into perspective. take a look. single family housing starts were actually down 2.2% per month. still up 15% from a year ago. multi-family starts, apartment buildings which were up to a more volatile number, up 25% month to month and 33% from a year ago. nothing wrong with multi-family construction, of course. there is apartment demand, but that's the driver of the headline number. now, more concerning was that single family permits were down month to month. only the second time in 16 months. they were down in three out of four regions, so it wasn't just one area of weakness. why are the builders so

confident? well, because they are looking at demand going forward which according to ihs global insight is running close to 1.4 million, new household formation, plus remacement demand and plus second home demand but completions are running at 774,000 annual-wise and permits at 943,000 annualized so that means that the builders are not meeting the demand. that means we're going to continue to see low housing supply and rising home prices for the new home billers, of course, unless the rising mortgage rates cut into that pricing power. back to you, tyler. >> thank you very much. dominic chiu with a look at some of the retailers. >> that's right. we begin with jc penney which has entered into an agreement with bill ackman. it paves the way for him to completely walk away from the holdings in that company. under the deal ackman works owns an 18% stake in the department store chain, can make up to four requests to register the sale of his stock. that's a pre-cursor to actually

selling it. if ackman would sell under the current price, he'd lose around $300 million. another retailer in order strom on the higher end. it's losing ground. the department store is cutting its full-year annual outlook amid a sliding number in their same-store sales metrics and joseph a. bank also falling. the men's retailer posted a second-quarter profit way below the 68 cents the street was expecting. they cited weak sales despite an aggressive promotional campaign. >> pandora shares are surging, up 1.22, 6%, 21.0. goldman sachs upgrading theine line radio services share from buy to neutral citing accelerated revenue growth. the stock is up more than 100 --

129% so far this year. a good stock to own if you bought it the first of the year. >> if you did, you're sitting pretty. the muslim brotherhood is protesting again today throughout egypt. they are calling this a day of rage. hundred of protesters have been killed this week as the egyptian army cracks down on the muslim brotherhood up in arms after mohamed morsi was deposed last month. yousef gamal el din is live for us in a very unstable cairo this owning. good evening, yousef. >> reporter: good evening, sue. well, it's a very tense situation here. as you mentioned, supporters of ousted president mohamed morsi calling for a million man march, and it did materialize after friday prayers. and then clashes broke out. we're not sure who fired first, but they broke out close to our vantage point and here in other pockets of the capital city and across the country. the death toll, according to the ministry of interior, at least 24 people have died. probably can hear some of the

ambulances and the military helicopters in the background. keep in mind the images that we saw are very disturbing, bloody images from different parts of the country. masked gunmen with ak-47s as far as we could see, and it shows you the amount of trepp days. interesting developing though, sue, the fact that saudi arabia has now come out and said that they stand with egypt in the fight against, quote, terrorism and against those who would like to destabilize the country. a bit of a shift really given that saudi arabia is an important ally of the united states and the world's largest oil exporter. that positioning a bit of a shift away from what we've been hearing from u.s. president barack obama. also, of course, other countries reviewing their ties with egypt. the european union as a whole will be having a lot of discussions over the weekend. meanwhile, the suez canal remains undisrupted despite the flurry of activity across egypt. >> thanks so much for that report.

moving back to financial news, if we hit 3% on the ten-year treasury, what is it going to mean for everything? steve liesman has been looking into, it everything. >> you know, tyler, as rates rise and the world turns we offer our own cnbc soap opera. what does it mean? all the answers coming up next, tyler. >> what happened when the earth started to move? an earthquake caught on tape next. look at that. looking at classic hits, and me's getting rocked, baby. announcer: where can an investor

be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

welcome back to "power lunch." shares of real estate website trulia are trading higher today after positive comments from analysts at goldman sachs. they reiterated a buy rating on the stock and attached a $48 price target, sue, to those shares. back over to you. >> thank you so much. several strong earthquakes rocking central new zealand today. the staff at this radio station had to get underneath their desks. they rode out that earthquake. it was caused -- it caused widespread power outages, as you might imagine, but thankfully no reports of injuries. ty, up to you. >> all right, sue, thank you. yields on the benchmark ten-year treasury note have hit their highest level now in more than two years. you see 2.84, almost 2.85. as rates rise, what will 3% mean for the american economy?

steve liesman, of course, our senior economics reporter. what does it mean? >> we did some modeling, not the kind in bathing suits but economic modeling. >> we'll be grateful for that. >> absolutely, absolutely. financial modeling, folks, and we'll show you what it looks like. two real rates for the u.s. economy. one is the mortgage rate, the 30-year fixed. that's the blue line, and the other is the green line, the green line which is aaa corporate bonds which is what corporations have to pay to borrow money for five years. if you zoom in here, you can see the recent rate hikes that have come in and affected the real world, but then if you move over to the left you can say wait a second, we've been here before at csny and been here much more before if you go back a little further up 7%. let's take a look at what would happen to these two yields and other parts of the economy if we were to hit 3% on the ten-year. what we did is we said here's the current rate and then we used variety of spreads here.

can you see right here, the ten-year at 3% and the five-year would move let's say to 1.75%. the aaa corporate would be around 2.27. the bbbb at the lower end of the investment grade would be at 3.4% and the 0-year up to 4.78%. now, that looks like it would be rough for the economy, but now i want to show you what the averages have been. we went back to 1996 and said what are the averages? you can see quite a bit higher. the average ten-year, 4.44% and the i've five year 3.8% and the 30-year mortgage had been 6.1%, so 4.9 if we get up to 3. now the thing is nobody is saying that 3 is the top end. it's just one potential weigh point that we would get to as the rates go up. something that would be a challenge for the economy but not as bad as it's been in the past. here are three questions that we don't know that are yet to be determined. are rates higher because of the fed and the possibility of tapering coming out of the market?

is it a matter of the market forecasting better growth or is it an inflation concern? can the fed control the rising yield. does bernanke's lame duck status create uncertainty and volatility? he's done a pretty good job in keeping the lid on dissent. one dissent here and one dissent there and now that everybody knows he's leaving how good is he going to be at keeping a lid on that descent? and all of these different messages come out from the federal reserve. sue, back to you. >> terrific, steve. thanks so much. >> my pleasure. >> steve set it up for us so what would the world look like at 3%? what does it mean for stocks, bob pisani? >> if i had to take a guess at this, judging by the way the market is reacting the s&p could go to 1600. put the chart up here, 1655 to 1600, probably a decline of an additional 2%. what that said, sue, i don't get what's going o.look at industrial production disappointing, housing starts, i

don't know how you guild this lily, that's going in the wrong direction, in my opinion. i don't know what diana thinks about the whole thing but there you see it. look at the market going down as the yield on the ten-year has gone up. put up the ten-year yield, gone straight up, sue. i'm in bullard's camp. bullard is arguing for a taper light here, go slow on this. i think that's what's going to happen with the fed. >> diana, what about houseing? what does 3% on the ten-year mean? >> well, first i'll agree with bob and say housing starts are not going as fast enough to meet demand but if you see interest rate rise considerably more, you'll see the people on the edge of home ownership being completely edged out. i don't think it will affect higher end home buyer and loosening on the rates and also the credit availability. that could offset some of the higher interest rate, but will you see that lower end, perhaps the first time home buyer edged out of market. the biggest impact you're going to see on higher interest rates will be refinances as we've seen thousands of people refinance

into rates, you know, 3, 2.8, really low rates, and they have very short memories. they do to the want to see anything higher than, that and people won't be able to get the extra cash through the refi. >> now to phil lebeau. 3%. what does it mean for the auto sector? >> i don't think it has a huge impact, sue. two things really dominate or drive when it comes to auto sales what's going to happen. one of them is consumer confidence, what's happening with your monthly paycheck and a move up to 3% will not have a huge impact there, and the other issue at hand is we're dealing with a lot of pent-up demand in terms of old automobiles in the united states so as a result a lot of people will ultimately be coming back into the market and if the ten-year goes up to 3% that won't stop people from going down to the local dealership. >> all right. thanks, phil. ty, up to you. >> thanks very much. jackie deangelis has breaking news on dell's battle with carl icahn. >> a delaware court has actually denied carl icahn's request to fast track his lawsuit against

dell. of course, icahn was trying to accelerate the time frame on his lawsu lawsuit. he was hoping to head off the september 12th special shareholder's vote on the takeover proposal from michael dell and silver lake. he wanted to be able to hold the special meeting and also the annual meeting now set for october 17th on the same date, but, again, this delaware court has denight his request to fast track this suit so that could change the timing in all of this. meantime, watching shares of dell. trading slightly higher on the news. up half 5% and dell reporting earnings for a penny a beat for that company. tyler? >> thanks very much. >> after hitting a four-year low of around 1,110 gold is rallying the past month and a half. jpmorgan says buy gold but some of wall street's hedge fund titans have already gotten out. how should you play it? kilberg, iuorio stanning around.

it's a fight till the finish and as we head out a look at how some of the gold miners are trading trade. rand gold is up, but the others down fractionally. we'll be back in two minutes. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

green mountain coffee roasters using higher. they will replace biotech technologies. life technologies which is being taken over by thermo fisher trading down a nickel at 7450

right now. guys, welcome back. a big move this week in metals. bond and stocks. let's start with gold and silver. highest levels in nearly two months. jim, why don't you take first whack. >> we talked about this as well. gold can bounce pretty well and still be in the framework of this longer term down move. haven't even hit the retracement from where this move started months back. i think gold's target is 1414 on the upside. this is a chance in my mind that the sentiment is shifting back or perhaps it's just a bounce in a bear market. either way still decent room on the outside. i am long silver. >> i like to argue with him as you know but we're seeing a nice move in gold. that was a very succinct level we saw. we see a chart that can go up there quite easily. phenomenal move based on the stops yesterday. a lot of people being caught

offsides so there's more room to run. >> bonds here, 2.58 on the ten-year. jeff what, should i do? >> a lot of blood in the water here. seeing people kind of panic. no panic in any other market. the vix being under 15 but the treasury markets as it's going closer to 3% that will have a trickle effect, you know, and saw stocks kind of watching the bond market. the bornds hit new lower prices and high yields and they went negative. >> i don't agree we're seeing panic in the bond market. i think we're all being played. it's like the fed. let's out a little bit of rope, if too much goes out they will start talking back on taper. they wanted 2.85. they don't want. >> the one thing he's mission, saw a bounce in equities. seeing the correlation to bonds. as soon as you saw bonds getting sold off, prices galore, they hit the equities so it's correlated. >> i agree. >> i agree. it's correlated because it doesn't matter what the

underlying rate is. it matters how we'll get here. there will be increased volatility. >> it does matter the rates, people trying to obtain loans. >> i'm talking strictly money coming out of bond market into the stock market. not like we're going to say rates are going to be 3%. dividends look awful and we'll sell everything because we already did that once. did that when they went from 1.2%. i don't think there's panic and i think the fed is dwerg a 2.85 for now. >> giving way too much credit to the fed, way too much credit to the fed. >> love seeing two guys in chicago go at it. narrow trading range after the big selloff yesterday of 1.5%. where do we go from here, jim? you first. >> i think we have a little bit lower to go, only a little bit, just because this is growing pains from rates inching up. i think that we had a head and shoulders pattern that dropped yesterday. target 1545ish and from there i'll look for things to buy. >> i'm looking for a lower move.

not going down like we did in june and if you look at the chart this year, any time. they came in testing the waters earlier, had a bounce and, bam, hitting them again. more weakness further down. >> one thing to remember, too, we're shifting the paradigm, not buying stocks necessarily for the 2% dividend in the s&p now, but have to remember we're in this situation because of growth in the economy. >> or look thereof. >> well, there is a little bit. that's why they are tapering. moving in the right direction and there's no more pan frick an economic standpoint. >> things may be getting back to a little bit more in terms of the interest rate picture, a little bit more than normal because we've certainly had abnormally low interest rates for the first, four, five years and maybe they are getting back to something more normalized. sue, back down to you? let pick up on joel.

sharon epperson is tracking the action at the i'm "x." close is closing at a weakened high. the rally continues not asioning as yesterday but quite strong for the week. a lot of traders saying time to buy gold, look at the physical demapped and looking at what's happening for silver prices, strong outperformers yesterday and continue to make gains today and for the week, in fact, silver is up 13% and the best week since naept of 2008. >> ru. thank you very much. marin mentioned the lows now hitting four-minute highs and jpmorgan is out now saying buy gold?

do you agree with jpmorgan given the strength in the market recently? is it time to buy gold? >> i think -- you know, they are a little bit late. it seems that we got above some technical levels. look, this is august and it's very thin out there, and we broke through some technical levels, and the shorts were cover, and i think that's what you saw. you have to be a little bit careful getting long here. i think i would wait to see if it gets above the 1420 level and maybe spend some time up there, but i think this could be an area where you may want to see how it reacts there, and you may want to even sell it up here, but i don't think you're seeing a lot of new buying, a lot of people covering their shorts. we went down for a lot and it's normal to have the bounce like this. >> thank you so much, have a great weekend. rick selly is tracking the action for us at the cme. ricky, over to you.

>> where's jim iurio. the fed engineered a 2.84 yield the way the japanese engineered two decades of lost economic prosperity. don't buy it. we need throw sick guys there. we had a double top going just before midnight and another path, and, boom, blasted through a two-date chart. might have covered a lot of crowned and been volatile but around hoar they say it's a selloff that pushes rates up they sourcely. this basically closed unchanged up like our trade today. ten-years closed at 2.58 last week. we're up 24 buysies points, actually 26 basis points. the bound is up 26 basis points,

nothing to dismiss, that's for sure and when you consider all things are being equal, friends not moving in ticketly, maybe the best thick is to sell bunds. the only thing better than two guys in chicago going at it there would would have been a third. the dow on pace for its worst week of the year. yesterday that big selloff is sparking fears of not just a selloff but a correction, so what is it a investor to do? more than $100 billion worth of advice coming at you next, and as we head out the biggest losers in do you. sis service ter, back in two minutes. you make a great team.

it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision,

or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

sareta moving higher and aol beginning to lay off some 500 workers at its patch unit. 350 of those jobs coming today. the rest over time while aol seeks partners. upon conclusion, it will reduce patch's labor force by half and

merck says it will temporarily suspend sales of its food additive following concerns of that product. it's given to cattle to incries their weight before they go to slaughter. ty, up to you. >> thank you. the dow on track for its worst week of the year following that big selloff yesterday so how concerned should be about the fed tapering and can the market move higher between now and year end? jim nunigan joins us and david lefkowicz joins us. if i'm reading you correctly, jim, you say who is afraid of the big bad taper? >> i agree. a lot of tempest around the taper. take it as good news. if the fed continues to say when we see signs of recovery in the economy and improved unemployment we'll throttle back and that's what the market ought to focus on, that that's good news if they decide to do that. the data now is mixed so we'll see to what extonight they do do that, but i don't think taper

should be a bad word here. >> david, do you see it that way? >> i do. i agree with jim. the fed will not be premature in terms of choking off the recovery. they have been very accommodative and that gives them a lot of runway to continue to be accommodative. they are not going to do anything that really jeopardizes the recovery in my view. >> i want to bring in jackie deangelis. she's been watching some of the best and worst performers in the midst of these correction concerns. jackie, what are you finding? >> as market is losing a little bit of steam, it's interesting to take a pause for a second and see what's trending and what's emerging? groups and certain names, of course, are moving the most right now. month to date the worst performers in the s&p large-cap sectors, they have been the utilities and teleco services and health care stocks. drilling down further in the utilities, stocks like bg & e and northeast utilities seeing losses this month of 7%.

in the teleco space, laggards, century link and verizon and a near 8% decline in health care. regeneron seeing double-digit losses. news not all that bad for all the sectors. a lift in tech, material and industrials. apple, of course, leading tech higher and the 11% gain and dell up more than 8% this month as well. in materials it's cliff natural resources. that's outperformed the near 20% gain and the question rate now is will the recent losses that you've seen continue? is this the beginning of the big correction? according to a conversation i had with mcneil curry of bank of america and merrill lynch on futures now, he's saying the yield could go as high as 3% and with that shift we'll see more volatility and potential downside for stocks. >> jackie, thank you very much. let me turn back to you, david. if i'm reading you correctly it's basically you may think that we're going to churn a little bit. may have bumpy times and basically the market will be all right. jackie just talked about some of

the sectors doing well and not. if i buy your overall thesis, what sectionors do you like best right now? >> tyler, we like two sectors, tech and financials. in terms of technology, it's been a laggard this year. i think what people have maybe lost site of a little bit is that global profits have not grown in almost two years. u.s. companies have grown earnings, but outside the u.s. it's been a weaker story. that's really weighed on enterprise tech spending. as the global economy recovers we should see a better profit environment for non-u.s. companies. tech companies should do very well in that environment. financial also under earning in my view and suffering from low interest rates as interest rates move higher. that should boost earnings as well as a pickup in what we think we'll see in terms of capital market activity, m & a and a pickup in loan growth. >> very quickly, in the financial area, which is very broad. any particular types of stocks that you like better than

others? very quickly. >> the diversified financials, large-cap banks, they have the most earnings drivers. >> jim, sort of the same question to you, if you had a few sectors between highlight between now and year end, a very short-term play, what would they be and which would you avoid. >> i think i'd put the offensive team on the field and less of a defense and that would be consumer discretionary and the financial industrials, those focused in an improving condition and i think that's what we'll continue to see through the balance of the year. that's what i think will perform against an improving economy going forward. >> put the offense on the field. appreciate it. >> share of one of the biggest u.s. food companies taking a beating on the back of a downgrade, plus, the biggest movers next.

from banking to beer, see how one man learned how to brew and then learned how to make his dream come true. that's next on "power lunch." at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients.

that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. f-f-f-f-f-f-f. lac-lac-lac. he's an actor who's known for his voice. but his accident took that away. thankfully, he's got aflac. they're gonna give him cash to help pay his bills

so he can just focus on getting better. we're taking it one day at a time. one day at a time. [ male announcer ] see how the duck's lessons are going at aflac.com in today's yahoo! finance question of the day we asked with stocks taking a hit this week, are you losing confidence in the market? 28% of you said yes. little things -- things are a little dicy right now. 48% say no, this is just a typical stock market move. 16% say i'm using it as a buying opportunity. 8% say i'm selling. all right. let's see what's coming up at 2:00 p.m. eastern time owns signs. hey, mandy. >> hey there, sue. happy friday. one, two and three. first of all, that one stock

that turns markets at every move. boy, what a week it's been and also two things that make up ultimate dude lineups. we've got car news and the biggest burger craze and social media stocks craze trading up 1 has% increase over the year and the 3 you really do want to watch. lots more on this friday edition of "street signs." meantime, back to you guys on "power lunch." see you at the top of the hour. >> see you at 2:00. to dominic right now with a market flash on today's big movers. >> we begin with inter oil corp and exxon mobil are in top talks. interoil said on friday after a website report, really said that negotiations had ended without any kind of an agreement. interoil shares fell as much as 12% following the report in png industry news. also, general mills losing some ground after jeffries downgraded the food company to underperform

from a hold rating citing the company's decision to cut back on advertising to protect its profit margins. in the green though. aspen technology, fourth-quarter profits beating street expectations as the company sales of software and subscriptions jumped, and jetblue flying higher, if you will, raymond james says the carrier comes out ahead whether the american u.s. airways merger goes through or not. if blocked raymond james says it would be ak-an acquisition target for american. if it does happen jetblue would get highly south after slots at the reagan international airport in washington, d.c. back over to you. >> dominic, thank you. uptown to the nasdaq and bertha coombs. >> reporter: technology today has been outperforming though we're slipping a little bit into the red right now. still have applied materials, the best performer in the nasdaq 100. amat, its earnings actually kind of disappointed, miss on the bottom line and the top line. its outlook a little bit below

consensus but it did outline a smooth transition. gary dickerson will move to the ceo post effective september 1st and mike splinter will move to the chairman role effective september 1st and they are also bullish when it comes to 2014. the analysts like that, upgrading today to a buy from a neutral. that has the chip stocks the best performer today. they were the worst performer for the week, but now they are off less than it%, up 0.3% and dell moving to session highs after a chancery court denying carl icahn's bid to block that buyout by michael dell and silver lake and to fast track his lawsuit. right now it's up 0.8% at 1381. above the bid price by michael dell and company, but now it looks like the september 12th vote by shareholders could be more definitive. >> finally the best stock or one of the biggest impacts of the week, carl icahn may be losing out on dell, but a big one when it comes to apple. the tweet that changed apple's fate this week has seen that

stock up better than 10% for the week. its best performance since october of 2011 for a single week. looking to close out the week at about $500 a share, adding about 300 billion in market cap in one week, not bad, 300 million. tyler. >> the tweet heard around the investing world. bertha, thank you very much. and escaping the cube, how one man who lost his bank job went on to discover his dream of making beer. it's the largest and most prestigious car sale of the year as well. don't mix the beer with the cars. our robert frank is there. >> it's a "power lunch" porsche palooza here at pebble beach. the legendary porsche turns 50 this year. why they are having their big day in the sun and prices are surging coming up after the break. is is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club.

this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at devry.edu. a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

once again, we want to bring you up to date on the developing story out of egypt. as you know, it's been another deadly day there with protests continuing. obviously a building there on fire. nighttime in cairo, egypt. nbc is reporting that the

anti-coup coalition field hospital says that the death toll in the ramses square sector alone has reached 80 but notes the official death toll stands at 27, so obviously conflicting reports about the number of people who have been killed but nbc is saying now that there's reports now of up to 80 people. well, as you know, it is friday. so despite some of the events in other parts of the world we're going to try and get happy hour started a bit early here on "power lunch" with the story of christopher george. he's the guy who lost his well-paying job at a bank and decided to chase after his dream of crafting beer for a living, but it wasn't easy. he had little experience and had a family to support, but he didn't give up, and he finally found a way to escape the cube. >> the site manager basically informed us that you've got three months, go out there and find whatever it is you want to be doing with your life and go

do it. >> hi. my name is christopher jon george. i'm the brew master at riverside brewery and restaurant. but i used to be a project manager in a bank. we dealt with adding new employees, moving employees, data security, installing software and installing pcs. it was predictable and it was -- it paid well. the benefits were great. >> we had a year-and-a-half-year-old at home, and i was pregnant with my second child. >> shortly thereafter it was announced that our site was one targeted for closure. what happened was jpmorgan acquired bankone. >> now he's unemployed and i'm kind of thinking oh, geez. i told chris that whatever he decided to do, he had to be able to cover the costs of day care. >> when we came to milwaukee, my wife got me a beer of the month club and bought me a home brew kit. >> kind of figured out that that was his position and he called

pivot planner. >> they are in the business of connecting people with businesses that do what they think they might want to do. it was walking through a day of brewing, of bottling, filtering, all the various moving pieces that go on in a brewery. >> and he came back from that and was in love, and then we were like, okay, how do we figure out how to make this happen? >> i think the biggest obstacle was finding anyone who had any interest in hiring somebody with absolutely no experience. >> we just saw something in chris, we saw the character and the personality. we knew he had less experience but just figured he would learn. he seemed like a smart guy. >> i took a fairly large pay cut when i came here from the bank, but that said i have a lot of flexibility here that i did not have when i was at the bank. >> scared and they are vows but on the other hand i needed to do

what was right. >> i get that in the final analysis money is what pays the bills, but the worst day here, i'm still making beer. you know, the best day at bank i'm just collecting money so this is the right place to be. >> good for him. living the dream. well, it is arguably the most popular sports car ever built, the porsche 911. the car turns 50 this year, and with its big birthday comes huge prices for old porsches. our wealth editor robert frank is live in pebble beach. robert? >> reporter: hey, tyler, porsches have always been the poor cousin to ferrari in the collectible world, but now with so much money going into collectible cars, porsche prices are on a tear. prices for 911s, more tran tripling or quadrupling in the last five years and we talked so some of the top porsche collectors in the world about what makes that porsche magic. let's hear. >> it's an exemploys pleasive

car. the -- explosive car. the regular 911 beat everything on the back. the super cars of then are the street cars today. >> reporter: now the auction record for a porsche is $1.4 million, set for the car driven by steve mcqueen in the movie "le manns" but this car, no doubt, will break that record the it's a 1955, the first car porsche made dedicated to racing. it's going to fetch, get this, between $4 million and $5 million. guys, that's almost ferrari money. back to you. >> it is. i bet it gets it though, i really bet it gets that nt. people are wild about those cars. robert, thank you so much. enjoy. you're in a beautiful part of the world. meantime, back here at home at the nyse, the dow is tracking its worst week of the year. there are some winners though. we'll give them to you. things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand

5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time.

[ male announcer ] frequent heartburn? the choice is yours.

chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr. . it's been a rough week, and today the dow is down 39 points, a downside dador day for the dow, the nasdaq up 6. there are some winners this hour. pulte group, applied materials,

hewlett-packard and home depot all in the green. pulti, despite the rise in interest rates, up 2%. >> right-oh, sue. see you when you get back to headquarters. that a wonderful weekend. that will do it for this edition of "power lunch." >> all right. "street signs" begins right now. have a great weekend. >> and what a week it's been. the dow doing its darnedest to avoid the worst week of the year and gold glittering through the red on the screen hitting its highest in two months, while apple is having its best week in almost two years. got our market all stars. they will dig in. social stocks going viral. what's behind all the summer loving for this sector? plus, robert frank. you're my hero for bringing us the story that's getting the stamp of approval. and move over cronut. "street signs" is serving u