there you go. we've tallied the results, and you said it, america. mike murphy, the bear on google won the debate, although you may -- >> i commend our viewers for their charitable bets. >> final trades. >> memory research. >> buy citi. >> buy apple. >> nice, 1:00 exactly. "power lunch" starts now. >> "halftime" is over. the second half of your trading day begins now. >> nailed it. 1:00 on the button. stocks are steady following last week's sell-off but there are new fears about the emerging markets. is there still opportunity out there or is your money better off here in the u.s. with tapering right around the corner? a big week for retail earnings, folks. the sector is up about 25% so far this year. and we will tell you the one thing, the one thing that is defining the retail winners and losers, and it will surprise you. and may actually make you a little queasy when you find out.

and the wildfires out west, huge, fast-growing blaze sparking mandatory evacuations in idaho. sun valley, that is the area that is apparently most at risk out there. we are going to go there for the latest on the battle to contain those fires. sue is out today but simon hobbs is in at the nyse. talk to me, simon. >> hi, tyler. >> on the floor of the north korea -- new york stock exchange, it's a holding pattern. you will see an outperformance from the nasdaq. that's partly because of apple, partly because of intel. a lot of the talk is about where we are on international interest rates and the ten-year in particular after we have the sell-off last week which pushed the yield up 20 basis points. we're trading just below 2.9%, as you can see. a lot of talk about what that means as we move towards fed speak later in the week. let me just show you where we are on oil.

$107 more or less on the nose. let's check those big moves, those big cap names in tech. bertha coombs is live at the nasdaq. bertha? >> analysts bringing a little sexy back to the big cap tech names that a lot of people have just gotten bored with. intel today, the best performer in the nasdaq 100, s&p, and the dow, thank you very much. over at piper jaffray, they're upgrading it to a neutral from a hold. they raised the price target to 22 bucks but it's trading above there. facebook also getting some love as well. raising price target to its all-time high, $45 a share. it's still got a ways to go from there, but they're also boosting the earnings estimate. as simon mentioned, apple today is one of the big reasons why we are seeing the big move. apple continuing that move up from the icahn tweet last week. it's still about 20 bucks from where it started the year, but take a look. this stock was down 27% year-to-date in april and now it is nearly even for the year, and

google helping out today. nine years ago it went public at $85 and today it's up some 900%. intel, really the stock of the day. >> and apple, the pocket of a gold iphone. who knew. thank you. bob, how does it look to you? >> i know it doesn't look like the dow is doing much, but look elsewhere and you can see the impact the 2.9% simon just put up on the ten-year is having on interest rate sensitive sectors like banks. there's more alleged investigations of jpmorgan. home builders trading lower in sympathy with the banks. interesting, pulte got an upgrade at wells fargo saying it's starting to look cheap at this point. the bottom line is rising rates are trumping valuation for the moment. and tighter money problem. big problem for emerging markets. i know tyler mentioned that at the top of the hour. look at indonesia down 6%, thailand, india, almost every day these stocks have problems.

they're not rallying at all, and finally i'll throw in one other point. big oil is just having horrible problems ever since their earnings reports came out. exxon is now down 18 of 19 trading days. it's down almost 7% month to date, but even the other big names, chevron and occidental, are down. big oil having problems growing at all. there is the month of august, straight down. >> bob, let's bring in kenny, director of o'neil securities and, of course, a cnbc market analyst. what's the big picture here? >> the big picture is really digesti digestion. after last week's move we broke some key technical levels. we sat at 1655-ish and it seems to be digesting that and trying to hold its place. certainly not breaking down. i would expect -- this week is relatively quiet. you get the fed on wednesday, jackson hole on thursday. people will be paying attention. i think as we move into the end -- >> can i interrupt you briefly. if we have talk of tapering,

imminent tapering in september, what happens? because you're braced for a correction here, aren't you? >> i am, but we're already down 4% off the highs. if we go down to 1625, probably a little more than 5% off the august highs of 1710, i think that's probably about it because i think the market is now -- the psyche is prepared for the tapering whether it's september or october. >> do you think the same thing, bob? >> richard fisher, dallas fed president, is going to be speaking on thursday. he's a big proponent of early tapering with the kind of weak data we saw last week it will be interesting to see what he has to say. people want to know how aggressive is it going to be. not whether it's going to happen in september or december, but how aggressive is it going to be? >> i don't think it's going to be so super aggressive because i don't think the market will be able to handle that. i got to tell you, at some point they have to start to taper back and that's what the market is preparing itself for. >> at these rates, 2.9%,

certainly 1.5% to 2% gdp and below 2% inflation numbers, it's hard to argue that interest rates should be at 3% with that kind of data. >> right. >> guys, we'll leave it there. have a good afternoon. thank you very much. tyler, back to you. >> thank you very much. two big stories we're monitoring here at headquarters. jpmorgan under fire over its hiring practices, mostly overseas. kayla tausche is on that. first though, some new information out on third quarter redemptions at the embattled hedge fund sac capital. kate kelly has that part of the story. >> friday came and went without too much noise for sac capital which went into its third quarter redemption deadline having lost the vast majority of its outside money. they started the year with about $6 billion of its $16 billion coming from external assets, a figure that after friday has now dwindled to a little less than 1 million from what i'm told always exact numbers aren't available. most investors who were feeling leery about its legal issues had

already asked to pull money during the first or second quarter in redemption that is will take place over multiple quarters and not have the full impact until the first of 2014. of those that remain on board when a much anticipated s.e.c. charge and a justice department indictment of the firm happened a handful have remained loyal while others have redeemed. one thing that will keep them in decent stead, it's own reinsurance arm. that plus believers like the texas money manager ed butowski will allow it to say for the moment it still manages hundred of millions of dollars in public money, and that may be the case through the rest of the year. i think the investor reaction has already played out for the moment. >> and we shall see what happens then in the legal cases and how that -- those developments might affect them. >> and whether they technically decide they're going to become a

family office where they really won't manage pub will you lic m. >> thanks very much. more problems for jpmorgan. reportedly under investigation over its hiring practices in china. there you see its shares trending lower there right out of the gate. now at $52.05, down 2.33%. kayla has been following. >> tornado watches juit is justg two dozen other legal fights they detailed saying a request from the s.e.c. division of enforcement seeking information and documents relating to, among other matters, the firm's employment of certain former employees in hong kong and its business relationship was certain clients. the second jpmorgan employee was the daughter of a senior official in the railway

industry. around the time jpmorgan won a role in a $5 billion ipo of china railway. that official was later accused of accepting bribes for government contracts. in china who you know can be more important than what you know. minimizing ricks by doing business just with the network of people that you know and trust. former s.e.c. attorney jacob frankel says there's a bigger question for the banks. >> what was the purpose of the hiring? if what you're describing is a scenario where i would call it a real hiring, you're hiring somebody because they have qualifications, then there is a strong argument, it's not for the purpose of influencing corruptly. >> jpmorgan has an internal investigation that's ongoing on the matter. it's unclear at what stage the s.e.c.'s investigation stands, tyler, but no doubt a swelling regulatory headache for jpmorgan from a lot of these -- >> they have had a lot of issues over the past three or four months but this one sounds a little funny to me. are they being singled out?

lots of companies, let's face it, u.s. companies working in the united states, hire the sons and daughters of former employees of customers they do business with. and there are an awful lot of government employees who then go and go to work for the likes of jpmorgan or citi and then come back into us a. you know, what's going on here? >> there is this big argument over whether a bank is too big to fail and in jpmorgan's case the argument is, is a bank too big to manage? there's a growing sense washington is trying to find issues to try to prove that jpmorgan or other big banks like that are too big to manage because you can't control, you can't watch that closely everything that's going on in every single arm. the other thing is investigations beget more investigations. what does that mean? jpmorgan has been under so much fire that the government and virs regulators have placed monitors from various consulting firms inside the bank. the more people you actually

have from the government inside your four walls monitoring what you do, the more things -- >> they may find. >> exactly. >> mr. dimon has said i have more people from the u.s. government in my four walls than anybody else. an awful lot of charges in other cases have been for failure to supervise. >> right. >> and that goes to that question of scale and whether something is too big to supervise, right? >> that's right. >> kayla, thanks. >> thank you, tyler. simon, down to you. >> a market flash from dominick. >> we're looking at the housing sector. we begin with zillow. they announced a 2.5 million secondary offering in terms of the number of shares. it's also buying street easy for $50 million. trulia losing some shares. maintaining its $47 price target. it cites valuation there.

and pulte moving a bit lower. this despite wells fargo upgrading the home builder from a market perform to outperform with a price target of 20 bucks a share, also citing valuation. pulte's down more than 15% over the course of the last month. so certainly real estate, home builders, all those in focus, tyler, this afternoon. >> dominick, thank you very much. time to analyze the analysts. we get a lot of the brokerage calls on monday and so we do this every monday, and today jef kilburg of kkm financial is with us, he's also a cnbc contributor. let's go first to intel. bertha mentioned it earlier. intel surging after piper upgraded the company from underweight to neutral and raised the price target to $22 a share. the firm says the chip industry is now solidly in the post-pc era, but pcs aren't going away anytime soon. intel one of the biggest percentage gainers in the s&p 500 today.

shares are higher by 9% year-to-date. do you like this call, agree, disagree, jeff? >> i do like this call. i agree. and the reason we're really talking about this today is in their note they talked about bay trail. that's the low end processor that they're rolling out. for all the folks out there who want a tablet but what a windows based tablet, this would serve it. i agree with this but you really want to see a close above the 0 200-day moving average. the najarian brothers talked last friday about a lot of option activity being very bullish. i agree. let's go. >> ubs upping norwegian cruise lines. as a norwegian, anything that ups the norwegian s we like. ubs says the company's unit growth and premium on new ship pricing will drive growth above industry average. this one, jeff, is up 68% since

norwegian's ipo in january. do you agree or disagree? >> i disagree. i don't want to offend your heritage, but honestly, i don't even think captain stuben would go on the norwegian cruise line. the rain reason i want to stay on the dock, is the debt they've incurred. they're $3.2 billion saddle of debt. they're going to spend another $630 million in 2015 to increase their fleet status. i don't like this stock and i think the whole cruise line has been so plagued with so many problems you're not getting me on board. >> let's go to jpmorgan upgrading dollar general from neutral to overweight. jpmorgan says our recent dollar store work across multiple regions indicates increased signs of stability. dollar general biggest percentage gainer on the s&p today. up more than 3%. shares surging 23% so far this year. agree, disagree with this one? >> agree, ty. and the reason why we're seeing this, even though it's at its

52 -- not 52-week high but at the high of its range, it doesn't pay a dividend but think about it, ty. in terms of tumultuous markets like we're about to see this fall, there's uncertainty, and that economic uncertainty translates into consumer behavior. that consumer behavior which we really can't define going into the fall, i like this play from the short-term perspective but i don't want to be in it in 2014. >> jef kilburg reporting there. simon, down to you, sir. >> tyler, let me take you to the crisis in egypt. street battles raging in cairo over the weekend and at least 25 policemen were killed today when militants ambushed two cars carrying security personnel. this as we get news that hosni mubarak who was accused of corruption could actually be set free. cnbc's yousef ga mel aldean is live in cairo. >> reporter: that would need to

happen first. keep in mind the primary driver of this story is the loyal former president. he says his client could be out and about within 48 hours. just a bunch of administrative hurdles to get through. first of all, the former president was indicted, tried, and sentenced for not protecting protesters in 2011. he was sentenced to life in prison. now, that trial is pending a retrail after an appeals process. for that to happen, some time needs to pass and in that time we understand he can walk freely around. now, the military is unlikely to do that. experts i speak to agree that it would only fan the flames of a very turbulent political scene in egypt. the other important development is the violence that you mentioned. again, another escalation. first off, the attack, the ambush in the northern part of the sinai peninsula, just about 140 miles east from the northern terminus of the suez canal. that killing 25 people

execution-style with machine guns. that following violence that happened after an attempted prison break, we understand, where 36 -- at least 36 of the supporters of ousted president mohamed morsi were killed. now, the ongoing violence is unlikely to help any conversation about the future of relations with egypt and very likely to stimulate further discussions about cutting off financial assistance to egypt's military to the tune of $1.3 billion. a lot of that goes back to weapon purchases in the united states. now, cutting that assistance won't be that easy either, and here is why. saudi arabia today through its foreign minister underscoring that any threat of cutting aid, the world's largest oil exporter is happy to step in that gap. simon. >> yousef, live in cairo. thank you. ahead in the show, a massive and fast-moving wildfire ravaging the west. we head to idaho for the very latest on the battle to contain a massive fire.

plus, investors buying up tesla shares so much this year. the stock up more than 300%, but who is actually buying the car? cnbc's phil lebeau is behind the wheel with that in chicago. phil? >> simon, we have crunched the numbers. more than 13,000 model s vehicles have been sold in the past months. who is buying? the answer might surprise you when "power lunch" returns. jackie: there are plenty of things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship.

that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.

some ipo news to report. real estate company remax has filed with regulators to raise up to $100 million through its own ipo. this as it takes advantage of a rebounding housing market. it lists under the new york stock exchange or would list on the new york stock exchange under the symbol rmx. meanwhile, alibaba is in talks with the hong kong stock exchange to allow its founders to maintain control over the chinese e-commerce company even after it becomes listed according to reuters. alibaba is widely expected to launch an ipo worth more than $15 billion by the end of the year with hong kong as the likely venue and shareholders in yahoo! likely to profit. simon, huge, fast-growing, and fast-moving wildfires ravaging idaho. many homes have been destroyed out there, hundreds of people have been evacuated. nbc news's miguel almaguer is in hailey, idaho. >> reporter: this wildfire has

consumed more than 100,000 acres. it is a massive blaze, roughly the size of the city of denver or detroit. it is still very active today. it is chewing through forestland, it's feeding on dry fuel, it is threatening more than 5,000 homes. thousands of people in this region have been evacuated as this blaze continues to move. more than 1,200 firefighters are on the front lines trying to protect properties in this region. as you may be aware, there are some high-priced, high-end properties there, arnold schwarzenegger, tom hanks, among the many celebrities with second homes here. right now it's close to 10% contained, but they're certainly trying to build that protective ring around this blaze. it's a very aggressive fire. crews will be out here today in about 90 degree temperatures doing all they can to beat back those flames. the next 24 hours will certainly be critical. back to you. >> well, miguel, thank you very much. the heat out there obviously not helping fighting in the fire, but the heat is helping in terms

of sales of tesla. its shares are up a whopping 328% this year. who is buying the car? phil lebeau is in chicago behind the wheel for us. >> we asked the folks at edmonds.com to review vehicle registration data for the last year because the first model s was delivered in june of 2012. going through june of 2013, more than 13,000 or roughly speaking have been delivered. here is what they found. the model s buyers and richer than other high-end luxury cars, and keep in mind, the average selling price is greater than $93,000. here is the thing that stands out. the sweet spot for the model s, those between 35 and 54. predominantly male, and income over $150,000. that's more than half of the buyers of the model s. 77.3% of the model s buyers have an annual income reported at greater than $100,000, and tesla has sold 10,000 model ss this

year on the way to 21,000 being delivered this year. but when you take a look at tesla versus other electric cars, particularly when it comes to the choice for the wealthy, this is kind of interesting. for those over $150,000, the model s is clearly what they are gravitating towards, not the volt, not the leaf. both of those down at 30% and 28%. not a huge surprise to the folks at edmonds. >> if you can afford is $100,000 car, why would you buy the chevy volt? it's a nice car but why wouldn't you buy the tesla model s? why would you buy a nissan leaf instead? if you have the money, you're going to buy the better car. >> and as we mentioned at the top, shares of tesla up more than 300% in the last year. the bottom line is this, simon. for the last year people have said, listen, how does the model s compare with other electric cars? that's not the accurate comparison. the accurate comparison is with other high end luxury cars because that's really who it's

competing with when it comes to bringing booirers into the showroom. >> and that is a tribute to the engineering. that's a phenomenal position to be in. phil, thank you very much. let's stick with cars. a rare 1967 ferrari was sold at auction for a record-setting $27.5 million over the weekend. the ferrari was owned by the late eddie smith, the former mayor of lexington, north carolina. mr. smith, is self-made millionaire, bought the car for $14,500 brand new. the car has been with the smith family for 45 years and was sold or restored in a specially built garage after smith passed away in 2007. proceeds from the sale, tyler, are going to various charities. >> very nice. simon, india's currency has hit a record low. that brings new fears about the bricks and the emerging markets. is there still opportunity over there or is your money better off in the u.s. even with the tapering ahead? plus president obama meeting regulators in about an hour to

discuss progress in implementing financial rules. as we head out, some of the biggest financial stocks trading. we'll be back in two minutes 37

shares of supernus pharmaceuticals surging. the company saying they will soon launch an epilepsy drug after receiving final approval from the food and drug

administration. >> thank you very much, simon. the market trying to bounce back from its first back-to-back weekly losses since late june. so are we in the middle of a slow correction? joining us from d.c., michael farr. he is a cnbc contributor. michael, what do you think? where are we? >> we're having a pullback in here and i can't quite tell how long it's going to last. i wouldn't be surprised to see a little bit more of a pullback. we haven't had many in recent years, tyler, and we've seen stocks appreciate some 150%. we're also in that doldrums period of the summer where there's not a lot of news. if you look over my shoulder next time they have me on screen here, you will see that things look very quiet here in washington because congress is out until september the 9th, and things are really nice in washington. >> they certainly are. you know, michael, stay where you are because i'm going to go down to check on the gold prices which are closing right now, and sharon epperson has that for us. sharon? >> i wonder what michael would think of this move we've seen in

gold. gold today has eased a bit, but that's off a two-month high. we're looking at gold prices closing down around $5, around $1,365 an ounce. it was a very strong week for gold and we look at what happened to gold and what happened to silver last week, comparing that to the broader stock market. you can see the gains there, and a lot of that may have been due to the bullish bets that traders put on at the beginning of the week according to the latest cftc report. they raised their bullish bets on gold considerably in the last week. also another factor supporting gold has been inflows into exchange traded funds. the largest one, the gld, that saw a half a percent rise in holdings. the first time we have seen that kind of gain since february. that's another reason why some traders say there may be more life in gold. tyler, back to you. >> thank you very much. michael, let's get your perspectives on those two metals, silver and gold. gold, as sharon pointed out, at two-month highs. why and what's next? >> i wonder if the gold and

precious metal markets aren't suggesting that perhaps the fed won't taper in september. now, i'm in a vast minority that believes that they don't have enough, i guess, evidence, if they were looking for evidence or situational reasons to go ahead and taper in september, i don't think that they have the data to support it, but perhaps the precious metals markets are seeing the same thing and a little more qe might send those prices a bit higher. >> let's move on to another topic that's of great interest these days, and that's what's going on in the emerging markets. international shares have not done as well as u.s. shares in recent months and certainly the emerging markets have been a little bit calm. today the rupee, india's currency, at a low point here. what is going on there? is it a good place to have some of your money or right now better stay home? >> i think emerging markets are going to continue to be the world's growth engine, but perhaps not at quite as fast and

torrid a pace as we've seen. we've looked at china as a world growth engine for the last decade really, and a lot of the u.s. companies, particularly the multinationals have borrowed some of that growth. so i think you will see it continue, but i would prefer to invest in some of those multinational blue chips that trade in different economies and different currencies that are able to harness some of that emerging market growth rather than invest directly in the emerging markets. it seems like the chicken's way to do it and i would rather hang onto my money as long as i can. >> michael, thanks very much. from a quiet and leaden skied washington. >> but a lovely place to be when they're not here. >> all right, michael. good to see you. let's go back down to simon. >> hey, tyler, let's focus back on the markets. you can argue that actually the markets are looking pretty resilient at this stage given where we are on the yield on the ten-year. certainly that's what bob was saying in the break. >> and that's the only good news we see today. at 12:00 eastern time down on the floor we started moving back up, 2.9%, put up the ten-year

yild and i said markets are going to have trouble with that. tyme the stock market overall, the major indices, have held up fairly well, fairly narrow trading range for the dow. we're not far from the lows for the day on the dow jones industrial average. we are at the lows for the day. but considering that move up in the yields, i think it's holding up pretty well. what is not holding up well is interest rate sensitive groups. it was ugly last week and it's ugly today. utilities were horrible last week, reits, telecom stocks had an ugly week and they're down today as well. tyler was talking about emerging markets. here is the problem. i'm using chile as an example. look at chile since may. we started talking about tapering, straight down. that's a ofour-year low for the chilean market. cop ser a little slow but it's obviously a concern about lower liquidity levels here. as well here in the u.s., bank

stocks also on the weak side. obviously some concerns about jpmorgan and alleged investigation into their activities in china. >> and also the fed being clearer about capital buffers, extra capital buffers. >> some negative headlines on regulations also. >> thank you very much. you'll see that the major indices are fallen into negative territory. the national dsdaq is, however, some green. let's head over to bertha. >> it's really the big caps. intel on an upgrade at piper jaffray. but that's spilling over to some of the other big caps. you have facebook, evercore raising its estimates. facebook up 55% since memorial day. what we have seen particularly the last few weeks is we are now starting to see the big caps outperform the small caps. take a look at the one-month chart. big caps have been up about 16% in the nasdaq. the russell 2000 it's up 20%. in the last month or so that started to change.

a big reason why is apple. apple had started moving up and certainly that carl icahn tweet heard around the world has really accelerated that reversal. back to you. >> thank you very much, bertha. it will be great to see what rick santelli has to tell us from chicago about all these rate moves. rickster? >> well, i guess the mojo of interest rates is mojoing pretty good. if you look at a 24-hour chart of tens, ever since our time zone was welcomed in this week, 8:30 eastern, it really has been slowly building, higher rates, selling off the securities. a two-day chart shows how once you pop through the top of that range from friday, it is gaining momentum. as a matter of fact, if you look at the two-year chart, boy, that little wedge we had of consolidation that ended about a week ago clearly showing breakout, and that's going to draw in more algorithmic trading. let's switch gears a bit. you know, a lot of stories about how the correlations are breaking down. boy, you could really see that

today with the lqd etf. this is investment grade. we're at the lows of 2013. as a matter of fact, we're at the lows of 2012 because these are the lowest levels since december of 2011 and if you want to look at barclay's on the spread side versus the etf, you see the widening ensued last week when the equity markets were selling off and so were treasuries. tyler, back to you. >> thank you very much. it is a big week for retail earnings. the s&p retail sector up 25% so far this year as you see right there, bettering the s&p 500 by about 10 percentage points. we will tell you the one thing that is separating the retail winners from the retail sinners right now. plus, happy birthday google. ninth anniversary of the internet giant's ipo. the stock is up more than 924% in that time. where does google go from here? [ male announcer ] come to the golden opportunity sales event

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u.s. steel says its chief executive is stepping down after a string of heavy losses and

share price declines. the british industrial firm edwards group has agreed to be acquired by the swedish engineering group atlas for up to 1$1.6 billion or $10.50 a share. and cobalt international energy falling after the oil and gas exploration company says it did not find oil in a well in the gulf of mexico. tyler? >> thank you very much, simon. president obama getting ready to meet regulators in 45 minutes from now to discuss progress in implementing financial reform rules. our chief washington correspondent john harwood here with the very latest ahead of the meeting. what's on the agenda, john? >> tyler, president obama is done with his vacation which was interrupted by egypt among other things. he's back here for that meeting you mentioned at 2:15 with financial regulators to talk about implementing dodd/frank. now, the first arrival that we just witnessed was mary jo white from the s.e.c. she's walked in. what we hear from white house officials is that this is about

not a new announcement but about pressing regulators to continue making progress. only about 40% of the regulations for dodd/frank have been written so far. and the one major one that has not been completed is, of course, the volcker rule. you have on the president's agenda this week a series of economic speeches designed to push his middle out economic agenda and also prepare the ground for the fall fiscal fights with republicans over continuing resolution, the sequester, and also the federal debt limit. finally, of course, the president has got back on his plate the selection of that new fed chairman to succeed ben bernanke. janet yellen and larry summers are considered the two leading contenders. all of that will play out once congress comes back in september. michael farr was just saying it's nice and peaceful in washington. it's about to get unpeaceful, guys. >> you bet it is, john. let me follow up with your reporting from, i believe, it was friday where an

administration source, correct me if i'm wrong on that, told you it was probably a two in three chance that larry summers was going to be the next nominee for fed chief? >> that's right. no news on that. got to caution, there's no precision to that estimate. that's somebody who is reading the tea leaves, talking to -- this is not someone inside the inner circle right now in making that decision and only a very few people know the president's thinking. so people draw their own conclusions, things they hear from friends, little bits of information, and we'll see whether that prediction is born out, but we expect this decision not to come this month, come pretty soon after labor day. >> john harwood, i know where you will be tonight, watching the red skin game. so will i. to dominick for a market flash. >> let's talk about what's happening here overall with tata motors because the american traded shares are interesting here. again, overall with what's happening, you can see those shares down. this on reports from the economic times of india that

there could be a walkout by dhl, the shipping company. their particular employees in england. if so that could impact the jaguar land rover production. it's owned by india's tata motors. those shares amongst other things affecting their shares today. at least for right now, we're seeing that tata motors is certainly under pressure on some of those reports out of the economic times of india. >> the third wave of globalization. thank you. ahead in the show, jpmorgan under investigation for allegedly hiring children of powerful chinese officials. but doesn't every clever company do that kind of stuff? plus, a black iphone? a white iphone? how about a gold iphone? apple reportedly thinking about going bling. that's all in the power rundown.

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signs" at the top of this hour. the markets maven who called this recent slow downturn eight weeks ago will tell us why he says brace yourself for more. plus, guess what the best performing sector and stock was in the past five years. we'll tell you what the best could be in the next five years. looking back and then looking forward. and the three things you must look before jcpenney reports tomorrow. it's going to be a big one. all those things and, of course, lots more coming up top of the hour on "street signs." make sure you tune in. ty, back over to you. >> we will, indeed, mandy. power rundown time. simon hobbs, bob pisani and jpmorgan. jpmorgan facing a probe for hiring the children of prominent chinese officials. we asked has the company done anything wrong or is it just being singled out? 43% said, yes, jpmorgan continues to flout international law. 36% say, no, other companies do the same thing, 3 2 1% say i'm not sure either way. simon, do you have a view on

this? >> my concern is i read there are now 60 investigations against jpmorgan that could cost them $7 billion more than they provisioned for and that looks awfully like a witch hunt which is alarming. >> i think what's going on here though is they're alleging a little more than they just hired children of jpmorgan or officials from china. they're alleging that there may have been a connection between them hiring children of officials and then business that they got immediately thereafter. i don't know if this is true or not, but if there was a clear connection and some kind of tit for tat, that could be illegal. >> if it's merely sort of hiring some people who have some connections, you know, a lot of companies do that. nine years ago today google had its ipo. the stock up 900%, 924%. here is an k356rexample of how powerful it has become. google was knocked out for five

minutes on friday night and internet traffic stopped 25%. do we still think goggle will be a dominant player nine years from now? i would have to say yes. bob, feel free to disagree. >> based on their history it's been amazing. here is an incredible stat, google search, google maps, and youtube all have 1 billion unique active users. that's a startling number. unless they make a serious misstep, it's hard to believe they'll fall down here. the search engine is two-thirds of all searches go through google, and that hasn't dropped appreciably. i thought it would, but i have been wrong on that. >> simon? >> i have no idea what's going to happen that far out in the tech space, but i do think it's important to celebrate where you are. you know, yahoo! and microsoft, the ipo and people thought they might be able to take their business. they haven't. at the same time they're clearly a place people want to work and they continue, as barry diller

said on this network, to hoover up money. >> google, it's my search, it's my yellow pages, it's so much more than that. it's become a utility that perform it's like a growth stock. >> and android is the dominant player in its space, too. >> and it's -- they call it american exceptionalism. >> it's a breath mint, a candy mint. apple unveiling its latest version of the iphone. will it come in colorses other than just black and white? rumors swirling that the next generation could be aoffered in gold. what do we feel about that, simon? >> i think tech crunch is suggesting it's going to be like a champagne gold. i mean, i don't know. the women around here, we spoke about it, they love the idea. remember, 007 fans, you can't paint it all gold. you have to leave a little bit of breathing space for the skin somewhere. >> that's right. oh, good reference. >> i don't care about gold myself, but if you look at the color of cases that are bought for the ipad and iphone, gold is a very popular color and what's the most popular colors in

china? red and gold are the two most popular. on that basis -- and gold is a popular color in india as well. on that basis alone, i think it's a great idea. >> bob, simon, we appreciate it. another big week for retail earnings. what's the one thing separating the winners from the losers? courtney reagan, you know. >> it's been a rough reporting season for retailers, but a number of experts think those that integrate technology perform better. i'll explain after the break. [ male announcer ] it's time. 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...

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retail a big focus in earnings central right now. let's check sales of saks, slightly lower. overhead costs increased and sales grew more slowly than expected. saks has agreed to be acquired by hudson bay for $2.4 billion for the year. this stock is up about 50%. let me take you live to the white house where you can see regulators beginning to arrive for that meeting with the president. financial services regulators. that's gary gensler on the left from the cftc, arguably of all the regulators he has done more

to push forward the rules as required under dodd/frank. others will face more criticism. we will bring you more as it emerges from the white house. so far overall it's been a mixed retail earnings season. one theory on why some are succeeding while others are not is that some retailers are better using technology than others. courtney reagan has more on the pros and the cons of going high-tech in retail. courtney? >> most everyone understands that or online footprints and web shopping behavior is collected. but your shopping behavior in store just as valuable to retailers. many count nordstrom as one of the best when they come to best leveraging technologyi to improe sales. they used shoppers wi-fi phone as soon as to trace shoppers but the test is over.

they say there is no connection to security cameras, though that technology does exist and is being used by some unnamed retailers. this video from retail next shows how cameras can shop tracker movements so retailers can change layouts or product displays based on observing the behavior. >> in store an lat alytics has very roi positive for a lot of retailers. we routinely say retailers can increase same-store sales by 10% or more based on what they learn from the analytics they put in their stores. >> it's a pretty big boost for retail sales, 10% or more. others think it's experience-based technology that's the best technology for retailers. tyler? >> thank you very much. tomorrow night on cnbc, "the pro profit" rolls up his sleeves to clean toilets. take a look. >> do you have a room that we can go clean right now?

>> yes, of course. we should do that. >> we're willing to go clean toilets for you right now. >> let's give it a shot. let's test it. >> i didn't come here to make this my sales presentation, but if they ask for the sale, i will. i'll do whatever it takes to make sure we land this order, including get my hands dirty. >> housekeeping. >> all right. i'll take the shower. jen, you take the toilet. >> i don't do the toilet in my own house. >> so you're really going in there? >> heck, yeah. if i don't believe in the product, you won't believe in the product. >> love it. >> come on, jen. you're like the supervisor or something. >> i'd like to have a chance to finish my job first. >> fair enough. >> it gives you a chance to be enthusiastic about your product. anytime the customer can see that, their confidence builds. "the profit" airs tomorrow night at 10:00 p.m. eastern pacific. he will join us on "power lunch" at 1:00. we'll talk about his experience there. don't miss it.

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it feels a bit like the calm before the storm. there's a negative bias to the

indices because of apple. 2.89% and moving. >> if you look at the heat map of the number of s&p 500 stocks in the red today, it's probably 350 out of the 500. that will do it for this edition of "power lunch." >> "street signs" begins right now. don't just do something, sit there. that seems to be the market's theme as sernerves run high. we'll tell you why that may be the wrong thing to do for the man who called this recent downturn. is google now too big to fail? should it get smaller? we'll delate it and tell but something that google right do that you might find rather creepy. plus, why the turmoil in egypt has not caused oil to spike yet and three very cool videos from the world of sports