liesman, the fed whisperer is saying it's going to happen more than not. >> i like the odds of playing for that move. >> steve said data-dependent. i don't get that. gap stores, gps, that's what i'm buying, october 41s. >> more "fast at five" and we'll see you tomorrow with the jeffrey gundlach interview. "power lunch" starts right now. >> "halftime" is over and the second day of the trading day starts right now. >> indeed it does. gold, oil and syria. commodities have been on the move head of what many believe will be the u.s.-led attack on syria. while the u.s. and other nations debate and prepare, the united states -- united nations is taking up the issue today but the war goes on. back in the united states the big question for our economy is housing. is it in a comeback or a slowdown? and our country, the united states of america, may be on the verge of becoming the world's

low-cost manufacturer. heard it correctly. we'll find out whether longer term that's good for our quality of life and our economy. all of that is ahead. tyler is out this week. we start with syria and where we stand. a senior u.s. official told cnbc, we are past the point of no return. an attack to begin within days. four guide missile destroyers as well submarines are maneuvering in the eastern mediterranean and loaded with tomahawk videos like this one in the file video. british propose a resolution at u.n. accusing syrian gov of carrying out chemical weapons attack. they complete their investigation this week in

syria. u.n. secretary-general ban ki-moon said today u.n. inspectors in syria need an extra four days to complete their work. while all of that is happening, it's still very clear the war is still being fought very fiercely. this is video of syrian army tanks being hit by some sort of explosives. we presume, although we do not know, they were fired by the rebels. simon, down to you. >> it is our job to cover financial markets. oil prices surging with brent up 4% since monday. gold is pretty flat on the session overall. both assets, importantly, have climbed to about 20% since their respective summer lows. covering oil, alan joins us, portfolio manager of spartan commodity fund and for gold, thomas, partner of orem option strategies. welcome to the program. alan, is oil in a one-way direction now? >> well, sort of. i think we'll have a small retracement during the day and a rally back up by the end of the

day. however, the problems over in the middle east are not going away any time soon. so, unfortunately we'll see higher levels in crude oil. i think we'll get to 114 in crude oil. >> you have to assume, don't you, there will be some contagion around the region to big oil producers like iraq, or at least terrorism on a grander scale, before you start talking about supply interruptions. >> real supply interruption i don't think we'll have. i think we'll have the fear of supply interruption which will get futures to rally. it might also prevent ships from being insured. can't have ships insured, you can't have a ship across the suez canal. >> 25% of all oil comes through the straits of hormuz. alan, i was looking for your confirmation. >> yes, roughly 25% is going through that canal. >> thomas, let's talk about

gold. how constructive are you on gold? glass half full because you rallied 20% or half empty because we've come down so far off the highs of last year? >> i think we've had a significant bounce here. a lot of it -- you know, we're having some really thin markets here in august. and people's tendency not to want to be sure during something like, this the syrian conflict, causes the market to rise. i think it's maybe running out of steam here a little bit. as you get above 1400 the demand in china tends to wane and premiums between here and there has come in in the last few days. that could give you a signal if you were long to take some off the table here. i wouldn't be short here, obviously, because of what's going on. that tends to happen as it's a news-driven market. >> guys, have a great afternoon. thanks for joining us. thomas on gold and alan harry on oil. let's get to rick santelli. we have the results of a

five-year auction. >> thanks. second leg of our supply, which is 98 billion, this portion 35 billion, and yes, it is five years. the yield at auction, 1.624. 1.621 tra is trading so it tailf a bit. bid to cover came in at $3.38. chasing every dollar of securities available. the ten-auction average for that is $2.74. the indirects were close to average, 40.3 versus 44% on ten-auction average. the directs a little light, 12.7 versus 16. and 46.9 represents the share the primary dealers now have in their back pocket. so, c minus, back to you. >> rick, it says something we're having our best day on the equity markets now for four weeks. the dow up 83 points. so, cutting a lot of 170-odd point loss we had yesterday despite the fact we appear to be

advancing towards military action. it is the oils that are pushing the market higher. some of those defensives like procter & gamble looking a little heavy at this stage. sue, back to you. mortgage applications falling for the third straight week as rates hit their highest level this year. but that's not the only bearish news for the housing industry. diana olick has it for us from washington. >> a little worse than expected but not by much. these contracts are indicators of closed sales in august and september. and they're still up 6.7% from a year ago. the realtors say the slip is, quote, not yet concerning. they blame rising mortgage rates and availability of credit. now, speaking of credit, federal bank regulators today scrapped part of their proposal to make mortgage lending less risky. you remember those rules from

dodd/frank. they dropped the 20% down payment rule for a loan to, exempt from risk retention by the lender. they're now aligning their rules with the cfpb's rules which require no specific down payment but do require borrowers no more than 43% of income on debt, they document all debt and make periodic payments so no interest-only, negative amortization loans. this is still a work in progress. we're talking about late 2014 for any of it to be real. that's what's going on today. sue? >> thanks for the update. we appreciate it. with syria, headline risk that goes along with that, the fed tapering, competing for the headlines every day, what should you do as we head into a volatile september and october. we welcome back richard mattigan, jpmorgan bank. again to see you again. let's start with the headline risk that syria presents for the market. i was actually surprised that we didn't see more of a flight to safety into the bond market.

and the stock market is having a pretty decent day despite that. >> what's funny. a lot of this is august. we've got light volume. we've seen outflows from core bond funds, pressure on treasuries. i think a lot of this, to play the counterintuitive trade, is to figure out what the real knock-on effect for syria is. we're caution but not alarmists. >> does it depend on whether it stays in conflict between syria and the u.s. versus a regional conflict -- >> yeah. >> -- that would involve russia and possibly china? >> the u.n. rate to the chase is usual. how do you get from syria, lebanon, jerusalem, iran, iraq, and russia. we're not viewing this as contagion, per se, but the fact it's taken us this long to get here has people paused and worried about how far it goes. >> right. let's move to the fed, then. the fed obviously watchess the headline risk but they tend to be more focused on the economic b backdrop -- >> jobs. >> yes, basically jobs is the

key there. do you expect a taper in the september/october time period? and do you think the market is viewing any tapering as a def defacto? >> at this point the fed has to taper. they teed up the fact that even though the data doesn't deserve a tightening and we're not going to see that, tapering seems to be the thing they want to start as bernanke exists. we don't have press conferences in october. you don't taper in september. if you're doing, it you're doing it now. we hope it's taper-light because they don't need to do something significant. then they can step back and be more data-dependent. >> simon? >> richard, don't we have to take a bit of a reality check here? we were in a position before syria blew up where we decided it had blown up in which all the major central banks had their slap on the accelerator to try to get the economies moving. they were kind of teetering, you could discuss whether the united states is still on the scale of velocity but what it needed was

one big external shot and we may have that with syria now. isn't that a game-changer if you're teetering between growth and not growth in so many areas? >> i'm going to disappoint you on the answer, simon. i don't believe that. i think the markets are trying to be a little more alarmist, not knowing what the extreme is here in syria. i'm more concerned about oil, if it sustains where it is now and keeps rising to what it does to global growth. in particular to places like europe and japan we're starting to see recovery in, but we don't know. we're close to stall speed but we think we get closer to the 2 1/2 range on u.s. growth on the way to 3% next year. >> we'll talk to you a little bit about emerging markets but talk to me about the u.s. market. given everything we've laid out, do you like domestic equities? >> yes, is the short answer. i sound boring on that because i think we've said this for the last year and a half. we had an investment team meeting with my senior strategists last week and again this morning. i keep telling them, can we start looking at international markets more aggressively?

i'll tease on the emerging market come opponent. there are pockets of emerging markets that have have the most compelling fundamental value we've seen in the last five years. markets aren't going to care for another three to six months. >> that is a tease. richard, thank you. we'll see you again if-n a few moments to talk about emerging markets. meanwhile back to the situation in syria. the arab league said today it doesn't really want the u.s. to attack. frank gaffney, former secretary of defense, served in the reagan administration. welcome back. it's nice to have you. let's start with the arab league. they did condemn syria's that basically the d engel is u.n. inspectors in syria have preliminary findings of those chemical weapons that were used but the arab league is not giving the president the cover he would apparently like to get for broad support for an attack in the region. >> yeah, he's not getting cover from the arab league. he's not getting cover from united nations security council because russians and chinese aren't on board.

he may or may not get much help from others. the brits seem quite ready to go at it, maybe the french. but a lot of others, i think, are hanging back. in part, let's face it, that's because what the president is trying to come up with is kind of a -- well, i think of it as a go goldielocks strategy. not too much, not too little, just right. it's unlikely he'll be able to use just the right amount of force to punish bashar al assad and not precipitate any repercussions that are a distinct possibility here. perhaps regionally and perhaps beyond. >> are you referring to iran's threats to attack israel? >> well, those. russians have said that, you know, they expect there will be very profound repercussions more broadly in the region. and who knows. i mean, you've got hamas and hezbollah units that have been supported by the iranians over the years. hamas is a little bit on the

outs at the moment as a result of the sunni/shiite split. but they are present in the united states as well as latin america and elsewhere. these represent dangerous elements. i'm afraid they may just get the pretext their looking for if we trigger something like this in syria. >> before i bring simon into the conversation, if indeed you don't think the president can strike the goldielocks solution, what should the president do at this point? what should the u.s. do? >> i would like to see him adopt something akin to what jimmy carter did when at a similar moment back in the late 1970s he realized that he had made a terrible mistake by hollowing out the united states' military. now, this isn't going to be an immediate corrective, but a course correction is in order in terms of signaling to our adversaries that the united states is not weak and resolute

as they think. signaling to our friends we're reliable, which they've come not to believe. and signaling this deliberate diminishing of our country, which we've engaged in for the past five years, would be at an end. that's important apart from syria to keep the message of keeping this a much more dangerous problem and a much more dangerous world. >> simon? >> i think we're out of time, sue. that's where we have to leave it. let me ask you, frank. apparently we have a little more time. we can be clear here that the idea of this clean surgical strike, it simply does not exist. kosovo has taught us that. afghanistan has taught us that. when that's laid out as a poobl strategy, we should call out and say, you've got be completely in it or out of it? >> i think that's certainly true. what's worse, there are no good guys in syria to speak of.

the muslim brotherhood at best will prevail if we are successful and regime change, which let's face it, is our policy. whatever we do with these strikes. but worse yet, it's quite possible that it will be al qaeda. we should not be engaged in a civil war in syria that might have either that outcome or iranian-backed -- >> so, why not do nothing? why not just come back into that classic isolationist stance and let them fight it out, as many in this country would like the president to do? >> i wouldn't recommend isolationism but i wouldn't embroil us in this particular war. we have a much bigger problem, a strategic problem with iran. i think if we do what we need to do there, regime change, syria and a lot of other things will take place -- will take their due course. they'll be fixed in due course, is what i'm trying to say. >> mr. gaffney, goo d of you to spare your time. ahead on the program, where did this country's bailout money go? part of it went into one man's condo in florida.

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orders. this is coal producers cut back on their spending. stock's down about 23% so far this year. a bunch of retailers out with earnings today. we begin with chico's, apparel retailer, posting weaker than second quarter earnings. in its conference call it said sales were up 5% in the current quarter. that improvement was across all its brands. specialty apparel retailer express matching street forecast as sales rose 6% and raised full-year guidance. jewelry retailer zale corporation reporting first profitable fiscal year since the financial crisis of 2008. sales rising 8%, sue, at its flagship store. >> everybody's buying diamonds. hard assets, i guess. that's a 20% gain in that stock. america as the bastion of

cheap labor? the u.s. is fast becoming one of the lowest cost countries for manufacturing in the developed world. but longer term is that good or bad for our economy? senior economics reporter steve liesman is here with me in the studio. phil lebeau covers the auto and airline industry. he's in chicago. steve, i'm going to start with you. for a long time we lost a lot of cheap manufacturing overseas. a lot of time comes cheap manufacturing, cheap wages. longer term, is this good or bad? >> a couple of things are happening that i know about. first, the huge u.s. energy story. that's creating possibilities for manufacturing in the united states. could make u.s. a low-cost producer. we have a highly educated workforce. executives woke up one morning and realized they hadn't slept because handling factories in china and overseas is a much

bigger time consumer than they thought originally. for certain products it may not make a whole lot of sense to make them over there because of all the all-in costs of doing it. one thing where i disagree with boston consulting group is we may get manufacturing back but we may not get manufacturing jobs back. a lot of the new manufacturing in the u.s. will be automated. i want to share this quote with you from management consultant warren benis. the factory of the future, it begins, will have only two employees. a man and a dog. the man will be there to feed the dog. the dog will be there to keep the man from touching the equipment. what's happening in robotics. there's going to be jobs here. there's going to be manufacturing jobs, but maybe a lot of them are going to be handled by robots and not by people. >> we've seen some of that already in the auto industry, certainly, phil. >> not just the auto industry. it's happening in every industry, sue. that's the thing that's interesting about this report. steve's right.

a lot of jobs people think will come back to certain industries, it's not coming back. it's the efficiencies of the plants in the united states, that's at the heart of what the boston consulting group is highlighting here. what they're saying here is that there will be additional jobs added by the end of the decade. they're saying between 2.5 and 5 million, not just in manufacturing but related industries as well. service industries as well. steve, one area we disagree, i've been in a number of plants in the last year that are much more highly automated, adding robotics, and they're finding they also need jobs. >> sure. the robots can't do anything. >> i just saw a great report from andrew mcafee from m.i.t. that talks about the new robotics that are you can train quickly. there are choices we can make as a country and that will do with whether or not we're going to work to train these people. the manufacturing job of the future is not the same educational background as manufacturing job of the present or past.

>> yeah, yeah. >> we have to work with community colleges and those sorts of things to work with enterprise to create those jobs. >> and to create the training for those. >> exactly. >> phil, thank you. steve, as always, thank you very much. 76% say, yes, it will bring back jobs. 13% say, no. salaries will be too low. 11% say, i'm not sure either way yet. simon? syrian electronic army is thought to have hacked "the new york times." is this the best they can do or just the beginning? plus, the "power pitch". on today's "power pitch" we have a company that transforms online article into news-reading advertising such as fantasy characters, fluffy puppies and

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it's time for "power pitch" where we give innovative companies 60 seconds. let's see if this company has what it takes to be the next big thing. >> on today's "power pitch" we have a founder who wants you to get your online news from

avatars, people or puppies, who will read it to you. i'm not kidding. freddie laker is ceo of guide. he's created the world's first 24-hour internet radio station. and more recently, he's consulted brands like coca-cola and espn on digital strategy. well, this is his "power pitch." >> hi, i'm freddie laker, owner and founder of guide. we developed an application that turns your online news in social stream like facebook or twitter into tv. our goal is to allow you to watch your favorite news instead of having to read it. we're doing this using a combination of the latest technology in speech technology, avatar tech that changes static online news pages into a video news show very much like what you're watching right now. the big benefit is we're

allowing users to consume content in places they couldn't before. now you can watch your favorite online news while working out, cooking or even while working. we'll monetize this experience in a combination of in-app purchases and advertising. in-app ferns is by adding more avatars. we believe this will transform the way people onassume online news. >> freddie is on the right side of your screen. he can hear us but he cannot react just yet. on our panel today, we have allison goldberg, managing director of time warner investment. they make four to five investments in digital technology each year. and rick caruso, one of the largest privately held real estate companies in the world. all right, folks, let's do this. let's huddle up. allison, ladies first here on cnbc. i'm going to try to be objective because clearly an avatar

leading the news will put me out of a job some day. what do you think? >> how will they come across? sound like a journalist or sound like robots? >> would you buy into this? >> i think niece a crowded market, crowded market just being television. after about a minute, it got more annoying than interesting for me. and i think the pace of the read was very slow compared to a normal speech pattern. >> freddie, you're in the hot seat. so, we were just having a bit of a huddle there. rick raised a couple of interesting points as to how your service is going to be criticized with traditional media services, like cnbc. i'm going to ask you, can you gauge demand of avatar virtual news reader? >> people are loyal to guide.

when i wake up in the morning, i like to read venture read and i like reading a film review cycle. there's no film version and never likely be a tv version. fy want that content, which i'm fiercely loyal to, and i want to see passively, guide will allow me to do that. >> how is your technology better? is it breaking news also? can you be up to the minute news that you're getting through your programming? >> because of our content is, in effect, generated from literally online news content, it's generated almost as quickly as where you can post it online. >> how do you take content that needs to be read and turn it into content people need to watch? >> you know you hit read more and jumps you to the original site? when we run out of the original part of the content, just like flipboard would, we automatically load another post from the original publisher. it scrolls slowly down the

screen. the avatars continue to speak in the lower right hand corner so your content is never interrupted. at s time, they're sending traffic to the publisher. if you want to click on the ads, you can click on the ads. >> i go back to the study why you went to the avatar technology and why it's compelling? is there a pace of the delivery of the news that is less speedy than what someone would normally talk about? >> one thing we're working on is the ability to use multiple speeds. if you want to listen to it faster, slower, you have that option. one of the biggest things we've learned so far is that everyone consumes news differently. for me it's easier to look at guide and say, it's cats reading you the news. but the reality is for me this is about real-time generation of video content. you know, our ambition is nearly nothing short of generating television. >> we need to find out whether or not you are in or out on guide. rick, you first. >> i think freddie is right. he's got some of things to do

over time. i certainly wouldn't bet against him. i think i'm in because i believe in him and what he's done in the past. freddie is smart, devoting his time and resources. i think it can happen. >> i think there's a ton of challenges ahead, including distribution and marketing, content foremate issue and the avatars themselves, how real will they appear. for me for now, it's a little early. i want more proof points so i think i'm out. >> out from allison. as for me, putting aside the reservation about the fact that one day i might be reoplasty placed by a fluffy dog, nonetheless i can see there are some customized niche applications people would go for. i'm going to say i'm in. freddie, what's your reaction? >> i'll take two ins. if we're right, this could be a billion dollar technology. >> thank you to our panelists, rick and allison."power pitch".

>> better a fluffy dog than a nom gnome. are you in or out on guide? go to powerpitch.cnbc.com and vote or follow the conversation on twitter using th the #powerpitch. simon, down to you. >> lack of ava are tar. >> gold is holding, roughly a 20% gain from the lows that we had earlier in the summer. bob, how we doing on the stock market? >> the important thing is we are just off the highs for the day. we've got one of these situations where three days in a row now stocks moving in tandem with bond yields. bond yields on the upside. take a look at dow. we hit the highs around 1 p.m. eastern time. u.s. bond prices under pressure. yields moving to the upside. again, that's been the story all week here. here's emerging markets which have completely reversed today.

disaster for the last couple of days and all of them are on the upside today. taiwan, thailand, those markets are closed. energy stocks have been the big mover, exxon and chevron, big leaders in the dow. all on the upside as oil has been hitting a 1 1/2 year high. that puts pressure on the airlines here. third day in a row, airline stocks. today only fractionally to the downside. finally, housing stocks. to the down side. another negative point, home salesed to downside. that adds to the new home sales on friday that were disappointing. >> bob, thank you very much. still an outperformer from the nasdaq. >> slight comeback in tech. apple, google, priceline down double digits. today those stocks in somewhat rebound. trading in positive territory. biotech also sold off yesterday. seems to be paying losses in

today's trade. the best performing stock on the nasdaq 100, avago tech, a chip supplier to apple. its encourage report is providing a lift to other suppliers including sirius logic up about 8%. simon, back to you. >> thank you. fresh from the five-year auction, rick santelli joins us live from the cme. hi, rick. >> hi. indeed the five-year auction, it wasn't horrible. two-year's auction yesterday wasn't horrible. these aren't the type of auctions we were getting several years ago with deeper demand. the fives, 160 yield after. a two-day of continutens, that dip has seemed to come out of the marketplace to some extent. look at a two-day of the dollar index. once again, seems to be finding footing around this 81 handle.

the last chart, barclay's high-yield spread. it is widening a bit again. pay attention to that. you see the same dynamic in an etf called hyg. simon, back to you. >> i'll take it. thank you very much. military action against syria driving oil and gold higher. india's economic problems sparking fears about the emerging markets. so, should you stay away from investing overseas or are there still some opportunities to be had? we have more than $900 billion worth much investment coming up i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550

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. economy is in good weeks just before the general election in september. the unemployment rate is low and the gross outlook for germany is rather positive. but, of course, there are insecurities coming from the central banks of this world. from the fed's tapering. economists think that the yields for german bonds will as well rise alongside the yieldings of the you'eurozone periphery,

triggering insecurities for investors in germany bonds. cnbc business news, munich. >> as we go global we're beginning to differentiate between various emerging markets. one thing is for sure, india's currency hit another new low today. the rupee hitting 69 to the dollar. single day loss in 18 years. we're joined from the nasdaq with the story. >> slowing growth and rising inflation are just some of the challenges facing india, which was once touted the hot, emerging market. these factors have led to a fast deappreciation of indian rupee down 20% since may. it hit an all-time low, as you just highlighted. the bombay sensex has been under significant amount of pressure has foreign investors take money

out of india. investors say complacency when the government should have been promoting new policies for economic reform rng, are to blame but gurus on the ground say it's unrealistic for the government to make changes to the policy ahead of the general election next year. if the situation worsens, india may have no choice but to entertain the idea of the imf potentially intervening. something that hasn't happened since 1991. some analysts say that's what's needed in order to solve india's economic challenges right now. >> thank you, seema. should investors put brakes on emerging markets like india? let's welcome back madigan. you did the perfect tease saying there were emerging markets you liked but we just heard seema.

what do you think? >> it depends where. the thing we've talked to clients over the last year, year and a half is that all emerging markets are no longer created equal. part of the pressure points we've seen in the last three to six months is ironically etfs versus actual money and hot money versus etf. etf's sell a market. active management picks where they like the position and they don't. i would juxtapose your india story with a korea, singapore, taiwan, even china where fundamentals are radically different. you can't look at the asset class as one. >> there are many segments and pieces to it. >> yes. >> that being said, if you had to deploy capital as you do every day with your team of people, where are you finding value and how are you finding that value? is it in the debt? is it in the companies in those countries? how are you doing it? >> we're very boring. we're fundamentalists at heart and we take a long-term

investment horizon for where we see value. the revelation all of a sudden commodity exporters are under pressure. countries with current deficits will be pressured as rates rise and dollar strengthens. we've been positioned for that transition since last year. we favored northeast-northern asia. we favored countries that are commodity importers, countries with strong reserves, current account surpluses. there's a little throwing the baby out of the bath water. that was my tease before, if you can go through and bother to look at where the fundamental macro picture is improving and where there are real earnings in valuation being created, when markets finally come back and look through that valuation component, you'll -- >> let me give you the update on early on japan and you were correct on japan when everybody else was basically keeping hands off. are you still in that particular trade? >> the answer is, yes.

with humility we missed the first leg of economics. we got through the tsunami and got a mack co-component. japan through the beginning of this year has been a currency trade. you watched currency very quickly deappreciate. ironically japan i'm cautious on right now when we're getting a flight to safety bid on the yen. yen at 97 to 98 is a range is we're questioning it. but we're watching it. you'll watch earnings there. it's not a 70% return next year. it's a 10% to 15% return and we'd be happy to take it. >> all right. on that note, richard madigan, we love having you here. simon -- >> sue, bad, bad banker. a bank executive admits to using bailout money from the treasury to buy himself a condo. what you might not believe is his punishment. plus, burger king's new offering, the french fryebu bur.

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coming up on "street signs" for all the concerns on oil prices concerning a potential strike on syria? how will it really be affected? the u.s. consumers have been hiding out a little built recently, right? but there is one stock that's done amazingly well. and a company for whom it might make sense to buy groupon, or not. we'll debate it. you have to tune in for the name. ask the street signs" . >> we'll see you at 2:00. time for "the power rundown," simon and bob join me for that. syrian hackers claim responsibility for taking down "the new york times" and twitter's website. why are prominent media sites

the new weapon of choice right now? obviously they're very powerful, but simon, what's your take on this? >> i'm worried about the unknowns, whether they've taken down utilities, military stations. we will be hostage to fortune, putting social media at the heart of our information system. we will pay a price for that ultimate. >> the answer is, of course, "the new york times" gets more press if you attack them if you attack u.p.s., for example. what i find amazing about this, how strange it is. what do you think of an organization that has given interviews, made statements, has a twitter account out there and yet they seem to be not real cyber terrorists but people who just seem to be attacking sites to prove that they can break into them. >> that leads us to the question, bob, of whether or not this is the top of their game or whether or not they have something more powerful in the

background, to simon's point. >> i think if they did, they would probably be using it. i think we should take them at their word, a bunch of young people working out of their homes in syria. >> ceo faces a year in prison for using bailout money to buy a condo for himself. too harsh a sentence or not enough, given that's the people's money? >> the power of the plea bargain. i don't understand why we don't treat white-collar climate way we treat street crime. i find it extraordinary. i find it extraordinary they gave him the money in the first place. >> right, right. that's what i find shocking about it. >> not only is the guy -- not only should he go to jail because he's a crook, he's a bad investor. buying ft. myers in 2008, my

heavens, he dropped -- >> it wasn't his money. he had nothing to lose. >> you know my point. >> that goes back to his real estate roots. >> dropped 30%. that was not a good time to invest. >> on to dietary choices. if you thought wendy's pretzel bacon cheeseburger was a calorie buster, tyler tried it and it is, wait until you get a load of the french fry burger from burger king. they used to be touting they were reducing sodium, reducing calories, being more health-conscience but they seemed to be going the other way, i think, because they make more money that way. >> it's a free country. if they to want produce it, people eat it, that's fine. i don't see why we should pay more for health care system because they make bad choices. you should taction tax them like cigarettes, so there's a greater contribution to the health care system. that comes from a smoker.

>> it's even more depressing. did you see "the journal" story that school cafeterias are passing up federal school subsidy program because the kids don't want to eat the healthier food that's required under the program? they'd rather eat the french fries than the asparagus. that's even more depressing. >> i'd always choose french fries over aspare dus. >> asparagus. >> sometimes you don't give little kids a choice. >> thank you. stocks up for the first day in three days. tensions in syria obviously on the front burner. traders' take on that. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

we appear to be counting down to military action with syria and yet the dow is up 77 points. art cashin has joined us from ubs. what's going on, art? >> i think it's a bit of sigh of relief bounce. missiles aren't flying quite yet. there's a sense that the u.n.'s mr. ban will ask for a delay until he gets his inspectors out. we don't know if that will happen or not. we've got a three-day weekend coming up, as you noted this morning. so, all of that will be critical. we've got a couple of important international meetings next week.

things are bubbling but gt fact the missiles aren't flying has given a sigh of relief to a very oversold market. bumping up against resistance here. s&p 1643. if they can get through that, maybe we can get legs for this rally otherwise it's just an ordinary reflex bounce. >> the thing that has me worried is the threat of it becoming more regional conflict with the likes of russia or perhaps iran. also the fact that we do have that monday trading session that is closed. we're not trading on monday. and all of that pent up either selling or maybe buying, you never know with this market. how worried are you about the fact we do have that holiday? >>. >> i think you may see volume pick up on friday as people try to hedge and protect themselves. maybe trim down some positions. maybe buy some puts to see if they can -- per versely, a

friday before a three-day weekend has a long history of being to the upside. i don't know if we'll make it this time, but usually they do because the most nervous traders of all are the shorts. your loss can be infinite. they tend to narrow down going through a three-day weekend. >> i think we may see it expand even further. >> good to see you, art. >> good to see you. art cashin from ubs. the biggest winners in today's session next. she loves a lot of the same things you do. it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.

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who's next to run the fed? averting a government shutdown. latest . before we leave you and hand it over to "street signs," we're up 74 points on the dow jones industrial average despite middle east tension with syria. s&p is up 9 points, half a percent. nasdaq is up 26 points. it's the biggest percentage mover of the major indices. we have seen a flight into the dollar today. especially against some of the currencies like the yen. we also did see, however, a flight to safety in the yen earlier this morning. the ten-year note, the yield is down to 2.78%. and brent crude is up almost 1.5%. the biggest winners on the

trading session include advanced microdevices, office depot, must be back to school shopping, chevron and blackberry. simon, it was a pleasure. >> indeed. i've got william sonoma and guess are reporting tonight. brits as they lay out their case for action. that's it for "power lunch," sue. >> "street signs" begins now. stocks are shaking off syria for now. the dow is up even as oil climbs again. folks, we have got your full oil playbook. we'll show you exactly who's producing how much oil and where, more importantly, the key flash points are right now. plus, the very interesting name that some are saying should be bought, mandy, by none other than amazon.com. >> okay, everybody, let's take a look at those markets. fear lifting a couple out there right now. oil and gold, for example, are on the rise. and that gain in energy shares hoping to push up the