it's breaking out as we speak. >> steve? >> thc long. the government, they're backstopping all these guys p. great growth. >> that does it for us. more "fast money" at 5:00 p.m. this evening. are a great rest of the day. we'll see you tomorrow. "power lunch" starts now. "halftime" is over. the second half of your trading day begins now. >> and what a second half it stack up to be. investors taking a bit of a step back a day aftered ethe fed's surprise move to keep its easing move in place. the consensus? always be wear of the consensus. where do we go from hear? will washington kill the rally with the threat of a government shutdown in just two weeks? two big things looming on the horizon there. the debt ceiling vote and the federal budget vote. the fed's move to keep providing stimulus raising a serious question, is the economy actually worse than people think? we're going to explore this one

this hour. what about mortgage rates in where do they go from here? they've been rising on the fears about the fell pulling back, so where next? my partner, sue, is at the nyse. hi, sue. >> reporter: and the market's euphoria not to scale back on qe is farding a bit. the dow jones industrial average off about 31 points. the nasdaq has remained positive, up about 5.25 point p the s&p off 2 points. the threat of a government shutdown becoming a possibility less than two weeks from that deadline. fed chairman pbernanke talked about it during his news conference yesterday. >> a government shutdown and perhaps even more so a failure to raise the debt limit could have very serious consequences for the financial markets and for the economy. and the federal reserve's policy is to do whatever we can to keep the economy on course. >> reporter: and house speaker boehner making some comments today as well. our chief washington correspondent, john harwood, is here with the very latest on

what is turning into a pretty ugly bat, john. >> reporter: ugly and it's going it get uglier. the u.s. chamber expressed the same view yesterday that bernanke did, calling the husband to raise the debt limit, avoid a crisis involving the full faith and credit in the u.s. government. but right now thoer not on a path to do that any time soon. house speaker boehner came out in his news conference today, defending an approach toward keeping the government running and also the debt limit that he knows is not going to become law because the senate will reject it. but he called on president obama to negotiate with him. >> most presidents refer to their bipartisan efforts to reduce the deficit as achievements. the rpresident sees this, quote unquote, as extortion. is while the president is happy to negotiate with vladimir putin, he won't engage with the congress on a plan that deals with the deficits that threaten our economy. >> reporter: the problem, of course, is that the real negotiations are going on within

the republican party right now between pragmatists and the tea party zealot and the house of representatives, between senate republican and house republicans and intellectuals on the oud like "the wall street journal" editorial page which yesterday said that republicans who were trying to extract an end it obamacare as the price for keeping the government open and avoiding a debt crisis are kamikaze pilots. john boehner shares that view, but he hasn't been able to make it prevail yet, sue. >> yeah, he sure hasn't. john, thank you very much. so will the dysfunction in washington prevent stocks from going higher? let's bring in bob pisani and kenny polcari, cnbc analyst. you got a lot of heat for that. >> a little bit. >> all through september. but now the onus which is to wash washington. and the market seems to be all of a sudden now that the fed is out of the way paying a lot of

attention to that. >> but as they should. that was simmering but now that the fed is out of the way, it's come right to the top and people do need to start aing attention. it could derail us a little wit. it absolutely could. with the fed continuing to push money into the system, it will temper any real pullback. that's ha people will have to watch. >> so far this year everything has worked out for the stock market. >> so far. >> we dodged an issue with china, with europe, with syria, with larry summers. the markets hope that we're going to dodge an issue with the government shutting down, but that's a big if. >> let me go to glen schultz choose in chicago with performance trust. glen, the interest rate scenario, where do we go from here with interest rates now that taper at least for now is off the table? >> well, with taper off the table, i think where we go in terms of the interest rate environment is we clearly have established a 2.5% to a 3% trading range in the absence of taper. i don't think the likelihood of getting inside 2.5 yield on the

ten-year treasury is very high because remember, taper is at least on the horizon now. and if it's not this year, perhaps will we see tapering or talk of tapering bow beginning at the end of the first quarter of next year going into the second quarter of 2014. >> all right. let me listen -- take a listen to what stanley trudruckenmille told "squawk box" earlier this morning. >> we're going into extra innings, baby. the punch bowl is running out. it's just about try, and two waiters just came in, and they're carrying this new punch in. we're going to really party now. >> are we, kenny? are we going to really party now? >> listen, after yesterday's action, it felted like that's what it's going to want to do. i think the hangover's going to be a really tough one. once people start to dissect that news yesterday and really think about the reasons that the fed kept pushing at it, they're going to realize, you any, it's not all coming up roses. and so we should be concerned. >> that's kind of what you said, glen, too. >> yeah. go ahead, glen. >> what i wassing if to say, i

think the fed actually missed an opportunity. i think the fed was looking at uncertainty in the market, uncertainty around the budget. also uncertainty around the transition of the leadership of the federal reserve, and they decided it keep the pedal to the metal and continue with their tap tapering. what they did ironically is create more uncertainty in the marketplace. on so everybody's looking backwards, asking what they missed and the fed saw. and i don't think they saw anything. i think the fed missed the opportunity. >> forgive me for interrupting, guys. i beg your pardon. we're going to ask the question and hopefully answer it with dominic chu. can wall street overcome the dysfunction in washington with some thoughts you in, dominic chu? >> tyler, all of the budget issues in washington, they will are an effect on the markets. but there's one other thing that many traders are keying on as a reason why we may actually be due for a pullback, and that's momentum, simply put. have we gone that far too fast? sure, we hit a record high in the s&p yesterday, took another shot at it today, but we also

saw two similar peak earlier this year, one back in august, the other in may. each of these three peak we're talking about put the s&p in a statistical situation where a pullback was very, very likely. in august, that pullback was around 5%. in may, the doctor was close to 8%. now, a lot of traders and investors operate under the philosophy that history tends to repeat itself. so if recent history repeats, then could stock be due for a pullback? that's the real question. the average of the last two pullback that we saw, around 6%. now, there are no crystal balls here, but many traders are looking for this to be a real caution flag. if we dovy asimilar pullback, we could go back to around the 16.26ish range, sue. that's why a lot of traders are paying attention to. >> what he's referring to there is the percentage above the 20020 200-day moving average. traditionally that's been an area where you get reversion of the mean and pullback.

what you were saying, just a couple comments. number one, much of the rally yesterday now appear to lack like short covering, not actual new buying coming in. number two, we're moving in line with the ten-year today. as the ten-year moves up -- >> interest rates are dictating. >> the bond market does not trust what's going on with the fed right now, and that's going to be the biggest issue. finally, if the economy was so good, the fed would have tapered. >> that's what you've been saying all along. >> that's the issue what you were saying earlier. that's the simple way to understand this. if the economy was good, the fed would have tapered. >> absent -- >> going out blind blying global industrials today. they're still in the sure. >> right. but all those issues coming into september, we nknew all these issue were out there. and so the market and a lot of people chose to ignore it. it didn't matter. in fact, it did matter. >> glen, final thoughts on whether the economy actually is not as strong as the market has perceived it to be. >> i think that the economy is slightly weaker than the market has perceive it to be.

the ebb and flow of the taat th time data generally is positive. it just doesn't have the type of momentum that a lot of people are looking for in the marketplace. but look at the federal express earnings reports just released first quarter, saw 15% increase in international shipping. so that's a good leading indicator. today's economic data beat consensus across the board. the problem is the hmagnitude o the strength of the trend. we're not on a 3, 3.5% trend, and that's what the federal reserve wants to see. we're just not getting it. >> all right. gentlemen, i have to leave it there. thank you all very much. glen, thank you. ty, up to you. >> and props to polcari for calling the no taper. that guy had it right. he told us that the day before. you know, you heard bob pisani just mention the idea that today it looks like yesterday's rally may have been a big of short covering. so one of the questions is, can yesterday's big sector movers like utilities sustain their gains? seema mody has been looking at the numbers. >> tyler, it did seem like

traders were at the edge of their seats waiting for that fed decision. in fact, two-third of yesterday's rally happened within five minutes of the fed's decision not to taper. all ten s&p sectors posted gains, but looking at the market performance post the fed's decision at 2:00 p.m. to the market close shows that real estate stocks were the wiggest winners, gaining roughly 4%. other rate-sensitive sectors like utilities is and consumer staples also rallied. these two sectors had combined are yielding the highest percentage of 52-week highs in today's trade. hears what's interesting. a quarter of today's new 52-week highs are in the industrial space which remember not a leader in yesterday's trade. united tech, lockheed martin, among others leading the pack. so yesterday's winner, aside from housing stocks, are on average extending their gains while a couple gnaw sectors are getting a bid as traders, of course, try to diversify their portfolio. tiler? >> thank you very much. the emerging markets, of course, on fire following the fed's move to keep qe in place.

the question, is this the green light there? michelle caruso-cabrera here with that part of the story. what do you say? >> well, it's in surprise we saw it, right? the emerging markets sold off the most on fears of the fed taper way back when, so in surprise they skyrocketed on yesterday's announcement even more than the united states did. joer night stock markets in southeast asia gained on average more than 3%. indonesia was up more than 4.5%. india and thailand shot up more than 3%. currency saw impacts as well. the real, the turkish and the indian rupee all moved higher. you seat the same pattern. sew how the dollar declines there? that shows you the rupee improved. a one-month high. emerging markets, u.s. rates started rising. nearly every other country in the world also faces higher rates. other countries have to pay a premium to the u.s. they're seen as higher risk. of course, higher interest rates often slow economies. ashmore research earlier this

month and before yesterday's announcement said we think the consensus is wrong about u.s. monetary policy and went on to say we think it's quite likely that emerging markets will be the strongest performing asset class in the world over the next 12 miss. that's a big, bold call because people were so negative on them. jens says many em currencies can go even higher even after the rally we saw in the last 24 hour. they think emfx continues it gain this coming weeks. the now highly likely yellen appointment may give a further impetus. buy the peso, the real, the polish, the malaysian and the peso, you'd better fund that trade in u.s. dollars. >> i can't get enough. thank you very much. sue, down to you. >> guys, thank you. tesla hitting an all-time high today. deutsche bank raising its price target to $200 from 160s it. saying it expects the electric

car company it mdestly outperform third quarter margin expectations. the stock is up 7% today. but did you buy tesla back in january? hope so. nice call if you did. the stock is up 420% this year. agilent gaining ground, up 4%, almost 5 now. the company to split into two companies, one focusing on life science and diagnostics, the other on electronic measurement twi device. ty? to housing now, mortgage rates were rising because of fears s about the fed pulling bk on the bond buying and stimulus. dayian that o iaia iaian diana where rates will move. dia diana. >> reporter: rates moved down pretty dramatically after the fed's no-taper talk. take a look where we were last week, right around 4.80% on the mortgage bankers association read. since may, up well over a full

percentage point which translates into about 20% less purchasing power for the average homebuyer. all right. where are we today? of course it depends on the lender. 4.25 is once again a viable rate, but i would likely have to pay some points. the range is now 3.75% to 4.5%. if you have no points and a great credit risk with low down payment. this is all from matthew graham at mortgage news daily. interesting, though, the realtors say lower rates will not help home sales this fall. closed existing hem sales rose 1.7% in august, boati inbeating expectations. the realtors call that the last hurrah as buyers got off the fence and signed contracts in june, fearing higher rates. they expect sales to fall this fall and into 2014 because of very tight inventory and still very tight credit. there's, of course, lots more, in the one, but two articles online, realty tl check.cnbc.com. >> thanks very much.

wells fargo, the largest u.s. mortgage lender says it's going to cut 1800 jobs because of lower demand for refinancing amid those higher interest rates. the stock of wells fargo down 47 cents at $42.85. you can call it a whale of a setment. kayla tausche with the fallout from jpmorgan's $900 million headache. kayla? >> well, tyler, the banks's price tag forty london whale trading debacle has the twoen costly and still growing. other regulatory issues are popping up. why it matters and what's next for that stock. that's up next after this break. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪

when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

rite-aid moving higher. the drugstore chain reporting a surprising second quarter profit. it boosted its earnings outlook based on continued sales growth and profit margins, the stock right now is up just under 20%, ty. well, sue, big news from jpmorgan. sort of as expected. the banking giant paying maybe a little more than had been originally forecast. 920 milli$920 million in penalto countries to settle some of the liabilities fromity $6 billion london whale trading fiasco last year. investors kind of shrugging it off. the stock down just 65 cents at

5 $52.76. kayla tausche has the details. >> the settlement is among four regulators who will split that total, $920 million. it's the federal reserve, the o.c.c., s.e.c. and uk's financial conduct authority which in this case has jurisdiction because the office that placed the trades at jpmorgan was located in london. it's a big price tag especially since the trade already lost $6 billion for the bank and since there's more fallout coming. staff at the cftc have recommended the agency launchity own enforcement action over the issue, informing the bank of that decision on monday through what's called a wells notice. other federal agencies are investigating civil and criminal matter related to this case as well. but that's just for the whale. the outside credit derivatives trade the bank buildup. the bank is also under investigation for hiring practices in china, mortgage-backed securities fraud and potential in electricity trading. another issue concerning proper consumer collection practices. all told the bank said its legal

liabilities could go up to $6.8 billion beyond what it's already earmarked to pay for this stuff. it's been putting aside more each quarter to pay for it, ty, but this is just a boatload of mope. >> they talk about these settlements being a plaque eye for jpmorgan, but you koind of wouldn't know it. it's the biggest bank still. what's giving it a bos? >> well, it's the biggest investment bank still. and where is it getting that business from? ity balance sheet. it is the single biggest jupd writer of bonds and loans and a will the of companies have been taking those out, refinancing and taking out new loans because interest rates have been low. they have been capturing the bulk of that business. it will be spg it see, though, once rates tart twg back up a little bit, how does that activity shake out? >> i asked the question the other night of former s.e.c. commissioner harvey pitt, does this settlement potentially cost jpmorgan business? customers? clients in you're finding no, they're probably going to be the lead underwriter on a chrysler ipo. >> yeah, and that's a situation that's interesting because it's more about the bragging rights there. we don't really know how big

specifically chrysler as an ipo will be. but farce kay kelly's reporting all day, jpmorgan apparently is the only other name. there are no other banks on it. that could be a potential source of fees for the bank. they're still getting a lot of business here. i think what will happen is they won't be able to grow. jamie dimon the aye told all my executives if it's noncore, not part of our four cornerstone businesses, we're not doing it. it could hurt them in growth and they could louz that competitively going forward. we just talked about what the chrysler ipo manes for jpmorgan. our phil lebeau will be on in a few moments to discuss what it mens for the automaker. sue? ty, microsoft is meeting with analysts today. a departing ceo, a stock buyback, a dividend bos, a deal to buy nokia's phone business. what's next for the tech giant? plus -- >> a former nba player now st d stands accused of running a

multimillion-dollar ponzi scheme. that story coming up when "power lunch" comes right back. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪

to help you take charge. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

a former nba player turned alleged ponzi schemer now facing friends and former teammates in court, not on the court. andrea day has the story. andrea. >> it was just one shot that sent tate george into the nba. and now one deal could take him down. a $2 million upponzi scheme tha

prosecutor say he was running under the guise of a real estate firm. we caught up with him on his way into federal court. >> being an nba legend is what droems are made of. >> reporter: this is tate george. >> jersey, jersey in the house. this is how we do it. >> reporter: a former husky who hit one of the most famous buzzer-beating shot in uconn history. that shot catapult tate it the nba and now he calls himself a real estate developer. clearly tate george loves the camera. just check out the video he made and posted on youtube. >> it's all things tate. let's go watch. >> reporter: well, maybe not so much anymore. paem trust you, tate, to invest their money. the fast talker clamming up on his way into court. here's a question. you claimed you had $500 million under hmanagement. was that true? he's now charged with swindling another former husky out of hundred of you this. and that's just the beginning of his trouble.

investigators say he's behind a multi--dollar ponzi scheme with a laundry list of victims including former nba player brevin knight and fame rhodes scholar randall paninkett. tate could soon be looking at 20 year behind bar. ware talking about millions of dollars, tate. the trial under way right now in trenton, new jersey, and we were in court for the face to face. the detroit piston' harley villanueva testifying against tate. >> we don't get along much. >> reporter: he claims he invested a quarter million dollars with tate. the nba star had just signed a 35 $37 million contract with the pistons and was looking for investment opportunities. he said tate sold him on the idea of developing a mall in connecticut. that was 2010 when villanueva wired the money to his fellow uconn alum. this is what the lot still look like today. villanueva says he was promised

a nearly $40,000 profit and 2% of the project's gross income. put when prosecutors asked him in court, did you ever get the money back? villanueva respond, "zero." he didn't want to speak about it on camera but told cnbc he felt hurt and betrayed by a player he thought had his back. >> we don't get along at all. >> reporter: investigators say you blew a lot of money. what did you buy? according to the indictment, quote, tate george did not use investors' monies to fund the george group's real estate development business as promised. in fact, the group virtually no income-generating operations at all. >> sometimes pleasure is business. >> reporter: so where did all the money go? prosecutors claim tate spent some of it on its own personal promgts including $3500 for roam repairs, $160 to a pool service, $19,000 to pay his tax bill, $2900 to produce "the tate show." even money for hi daughter's birthday party.

do you have anything to say to other people who trusted you in >> it's got to be desperation. >> reporter: jack brewer is a former nfl player who heads up the brewer group. he manages money for professional athletes. >> to be close to someone and have them, you know, take advantage of you, you know, and when they understand how much work you've put in to get to where you are in your career, you know, to have your money stolen is just unacceptable. >> reporter: and heartbreaking, jack says, because he see athletes fall into the trap over and over. >> when you get used to a leif style that's taken away and stripped away from you, you'll do anything to get it back. >> the trial is still going on right now in new jersey. and tate george maintains his innocence. now, prosecutors tell us that villanueva had no idea that his money was allegedly going to pay for things like parties, food, gas x "the tate show." we will, of course, kaep you posted on how this case turn out. back to you. >> andrea, thank you very much. gold surged after the fed's

no-taper move yesterday. prices are closing right now. another extremely strong day. where does it go from here? sharon epperson is down with the traders at the nay mechaniymex. there were a lot of people on the wrong side of this particular trade. >> reporter: a lot of people caught. they didn't know. they had no idea it was going to go this way. and as a result, they did get caught off guard and lost a lot of money. we are seeing gold prices that remain in significant gain territory, up over $60 since the fed announcement. much of those gains were made after 2:00 p.m. yesterday in electronic trading. in today's session, we remain steady and holding on to those fwan. i'm joined by kevin grady who is a veteran trader here on the floor with faen ix futures and options. and kevin, as we just outlined, a lot of people were on the wrong side of this trade. what did you think was going to happen going into that announcement? >> well, i did think there was going to be some tapering. 65% to 70% of all economist polled were also looking for

that tapering. so a lot of traders were on that side. if you couple that the fact that a lot of the major banks were putting out sell signals for gold at that time, there were a lot of traders caught short and literally got trapped around those lows. >> reporter: you're still saying you're somewhat bearish this market, but we have seen tremendous gains. how do you play it now? how do you position yourself now? >> i am still bearish. the market lately has been driven just basically by the physical players. so we saw the last two time down around $1200, very strong physical buying, but that buying seem it basically stop around the 1420 level. that's where we see physical selling. i think the only thing this does is raise the floor. i think you'll see the floor of the buyi ining come up to about 1300, maybe the sell side to 1500. i do not see a full-fledged rally here for gold. >> reporter: there i have it from kevin grady. a lot of folks yesterday talking about gold going to 1425. kevin says look more at the floor of how local prices could go. still bearish on this market.

>> sharon, thank you very much. right now the dow's industrial average is off about 37 points on the trading session. bob pisani's back with me here at post 9 on the floor of the nyse. >> i'm getting all these e-mails. this is it? this is the big fed stock rally? you're joking, right? >> that was yesterday. >> we forgot about that. take a look at the s&p 500. we started in positive territory and gradually been sinking into the west here. and most traders simply are watching the ten-year yield. that's the story and the bond market doesn't entirely believe the fed at this point. so ten years, they have been moving it to the upside and we've been slowly sinking to the down side. the vix, remember, we've got a big options exploration today, a quadrup quadruple. traders seem a bit confused down here. >> who can blame them? >> right. you can very easily have a lot of buying in put as well as call and not have the vix necessarily move that much. so it's not necessarily surprising the vix isn't up today on a down day.

i do want to point out a lot of people have been saying some very simple things to me. they'ved, bob, if the economy was great, the fed would have tapered. i think it's a simple but profound truth. rate-sensitive stocks aren't doing much. some of the sectors here today, most of the big cyclical names, materials, energy and financials, as can you see, sue, aren't really doing anything. again, we go back to this idea if the economy was good, fed would have taper. sfw >> thank you. thank you very much. downtown to the nasdaq where sheila's following the big movers. >> reporter: we are managing to hang on to gain over here at the nasdaq. the 100 hitting a 13-year intraday high. in fact, 15 names have hit record high today. some big ones out there like tesla, amazon, facebook, and starbucks setting new records today. p about a dozen or so have hit their yearly highs. yahoo! texas instruments. still that outward momentum

being felt begging the question, is it time for investors to take profits? well, a lot of people are considering it when you take a look at what's happening with valuations. consider this. facebook's forward pe right now is about 63 time. tesla's for example, is in the 100s because the company barely makes any money. average forward pe for the tech sector, only 17 times. so a lot of questions. a lot of pem scratching their head about valuations at this point. i want to quickly mention priceline because you guys talked about it before, kroing that $1,000 mark, retreating a bit today, but keep this in mind. ri priceline has the same market cap right around gm. >> thank you very much. let's go to kayla tausche with breaking news. >> sue, if you thought the news was over for jpmorgan today, you were wrong. a new $389 million in fines that the bank will be paying. we told you a little bit earlier about a settlement that it had reached with the o. krncc.c. ov unfair billing practices for consumers that had borrowed

student and auto loans and also had credit cards with jpmorgan. there was not a price tag associated with the initial consent order filed this morning, but we are just getting that right now. it will include $20 million to be paid to the consumer financial protection bureau.$60 o.c.c. directly and $309-set to be returned to what the o.c.c. is more than 2.1 million customers harmed by these practices. so that puts jpmorgan's total fines levied in one day, $1.2 billion and counting, sue. definitely a lot of legal action coming out of the paipeline tha the bank had expected, but nonetheless, those numbers still are fairly shocking. sue? >> yeah, they really are, kayla. and the stock is responding. it's now atity low or just off its low of the day, down about 1.3%. kayla, thanks. to the bond market, everybody's looking at that ten-year yield. ricky, over to you. >> reporter: you know what? we had decent data.

we're up 5 basis points. we're at 274. look at an intraday chart and two-day chart. you can clearly see rates are coming back. if you open the chart up, i still contend that left side high right before the fourth of july at 22.74 is key. and the last chart, here's where the residual damage still resides. the dollar index, lowest level since february. tyler, back to you. >> rick, thank you very much. so what is next for microsoft? we hey get some answers this afternoon from the outgoing ceo, steve ballmer. the company is holding its analysts meeting, and we will report on it.

recalling do you to a fwlich in the computer chip use in the air bag system. a majority of those cars are from the years 2003 and 2004. they are honda odyssey minivans. a two interactive up after the company racked up $800 million in first-day sales of "grand theft auto 5." and con agra falling after posting weaker than expected

first quarter ernlings hurt by weak sales of its consumer foods which is its biggest business. ty, up to you. sue, microsoft holding its first analyst meeting since purchasing nokia's hand set business and hiking its quarterly dividend earlier this week. cnbc's jon fortt is following it all. will there be more news, john, i guess i should say at this conference call or analysts day today, jon? >> yeah, tyler, they're trying to purchase that hand set business, and i'll be following it via webcast. the won't allow the press there. i don't know that we'll see any bombshells out of this meeting. normally what microsoft tries to do is tell financial analysts about the size of the financial market they're playing in, make the case that it's go ahead enough, that they'll be able to gain share. this year it will be interesting because we've got three huge new things happening at once. steve ballmer having his last one as ceo, microsoft in the throes of reorganization and trying to buy up nokia's devices and services business. what's different this time is

that all of the heads of the engineering groups, those new groups, will talk to analysts about halfway through the event. julie larsen-green, qi lu, terry myerson. mobile and cloud will be huge themes. monday's surface event and the day before the iphone goes on sale from apple. the meating schedu imeeting sch at 4:00 eastern. i expect the most interesting parts it happen after 5:00 p.m. when ballmer speaks and when we get the q&a session. >> thank you very much. look forward to that. will the fed's surprise move give housing a boost? we travel to the top real estate markets in america today. beautiful philadelphia, the power house is next. nnouncer ] let's say you pay your guy around 2% to manage your money. that's not much, you think. except it's 2% every year. go to e-trade and find out how much our advice and guidance costs. spoiler alert: it's low.

it's guidance on your terms, not ours. e-trade. less for us. more for you. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. [ woman ] we are the united states postal service.

[ man ] we are the united states postal service. [ male announcer ] and our priority is you. go to usps.com® and tr today. see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare.

do you think this rally is sustainable? 20% of you say yes, the fed will provide a safety net. 48% say no, the economy is worse than it seem. 32% of you say i'm holding tight, and i'm not investing new money right now. that's an interesting finding given the lack of volume here. let's see what's coming up on "street signs" at 2:00 p.m. eastern. >> a very appropriate introduction to this tease because we have markets coming up that are going to explode your brain. see if you're still optimistic after these stats. jim cramer will join us. why priceline shares are above 1,000 bucks and because the cliche is simply too easy, apple reaching into its box of tricks and tries to outradio pandora. will it work? we'll have a lyrical debate

ahead. mandy's out sick. who's down with mcc? yeah, you know me. i am. this week we are in the city of brotherly love where the eagles play the chiefs tonight. jeff bach is a realtor with prudential. he leads the city block team in philadelphia. let's look at a couple numbers on the philadelphia markets, market stats for single-family homes, year-to-date price, fairly moderate $179 moye, median sale, $135,000. there have been 7600 sales, 20% higher than a year ago. the inventory, a little tighter, down 20% year over year. our first listing, it is a condo, 4300 spruce street, listing, $359,000. the taxes, a modest 584s it for the year. two bedrooms, two bath and $1,000 square feet.

tell us about it. >> yeah, tyler, thank you. 4300 spruce, unit number c405 is right off the university of pennsylvania campus. and it's really, really popular both for a young professional who's just starting out as well as parents of penn graduate students who will often buy in cash for their kids who are going to vet school, dental school, et cetera. >> very nice. >> it's a really, really great -- >> obviously, just redone there. there's an awful lot of nice touches that i can see at 4300 spruce. let's move on just a few blocks down. 4212 spruce street. it sold for $763,000. $8200 in taxes. five bedrooms. is this a house? an attached house or what, jeff? >> yeah, this is a townhome. an attach home. and 4212 spruce was built in the late 19th century. it's historically significant. it's actually protected on the philadelphia historic register.

yet it is beautifully renovated inside. very contemporary and moderate inside. 28-foot ceilings. beautiful kitchen with stainless appliances, viking range and so forth. >> orient me a little bit about where this is in center city, philadelphia. tell me where the relative, say, to city hall. >> okay. so this is university city. now, university city is just west of the river. i'd say it's a ten-minute car drive, 15 minute on septa public transportation to the business district, to city hall. >> 271 south fourth street. listing there, this is our house of the week, $2.3 million, $11,000 in taxes on a $2 million home. i'm getting ill. five bedrooms, 5100 square feet. this is a pigbiggie, jeff.

>> it is. not only is it large, but it's beautifully updated in not only one of the best locations in philadelphia, but it me one of the best locations in the country. society hill, it's the historic district. it's very close to independence hall, yet also very close to the business district. it's beautifully updated. lots of space. high ceilings. building 1811. really modern fae taurs but really, really wonderful early 19th century character. great outdoor space. a 98 walk score. you can really -- you know, you can walk to anywhere from here. restaurants, movie that'sers, shopping. it's really wonderful. two-car parking as well. >> i know exactly where it is. just gorgeous. and if you like in-town living, that is a bustle lace. jeff, thank you very much for being with us. >> absolutely. thank you. >> down to you. >> boy, that was a beautiful home, wasn't it? let's switch gears a little bit. jpmorgan likely to be the lead jupd writer in the chrysler ipo, but going public could be

complicated. what will the ipo look like for the automaker, phil? >> another question, sue, will it even happen? a lot of people on wall street still skeptical that sergio will pull the trigger and actually file for an ipo. we'll explain why had "power lunch" returns. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center.

hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. [ male announcer ] some things are designed to draw crowds. others are designed to leave them behind. ♪ the all-new 2014 lexus is. it's your move.

what does it involve and what might it mean for the company if they do go forward? cnbc's phil lebeau is here with some of that detail for us. hi, phil. >> hi, sue. keep in mind, this is all about sergio trying to get the best price possible to buy the remaining 41% of chrysler that fiat does not currently own. with that in mind, our kate kelly has been talking to some of the people on wall street who might be behind the chrysler ipo. j pchpmorgan is close to filing s-1. there will be others likely to join in. the approximate value, at least $1 billion. we say approximately, because the float is only going to be 17% of the company. now, ceo sergio has kept his ipo plan so quiet that earlier this week, there were some investment bankers who were saying i even doubt that they're going to file an ipo. he wants to buy the 41% of chrysler that is owned by the voluntary employee benefits association trust.

that's the trust that the uaw owns which supply health care benefits for retirees. there is a disagreement between mr. marchionne and chrysler as a whole. had you look at shares of fiat which are down more than 20% if you go back to the time when they actually bought chrysler, the key thing to keep in mind is, there's a negotiation that's going on, tyler, between mr. marchionne and fiat, and ultimately they're trying to figure out a pras for fiat to buy veba. this ipo pricing could be part of figuring out that valuation. >> phil, thank you very much, keeping his eye on that story for us. time now for "the power rundown." first up, a new census study finds that america's economic gap is widening with the poor getting poorer, even as the rich get richer. what, guys, is driving that split? robert? >> you know, stan druckenmiller this morning saying what's driving that split in part is the fed. he said he bernanke and the fed is behind the largest

redistribution of wealth from the middle class and poor to the wealthy ever. and if you look at this -- let's accept that the fed does drive stock prices higher. the top 10% of the wealthy own more than 80% of the stock. so an argument could be made that by helping stocks, you've really only helped the wealthy. >> it's also interesting, too, because it's not just the wealthy versus the middle class, it's also the elderly versus the younger generation. by keeping interest rates low, you've inflated asset prices for thing like stock and commodities, but you've taken away the savings power or buying power that savings produces for people who are older and have fixed incomes and pension. >> he's saying it's the grandkids who will get the bill for all this down the road p. zla i also noticed in that survey, the distribution of poverty is changing. more hispanics live in poverty. 37% of the poor are hispanic, a record. priceline, very first stock in the united states to cross the s&p 500, i should say, to cross the $1,000 mark. albeit briefly.

so what is priceline doing better, dom, than say a goggle? i know they're very strong in europe, for example. >> this is a growth story outside the u.s. priceline gets a ton of their sales, a ton of their revenues, outside the u.s. now, you say europe, it's a problem, right? they're going through a -- a lot of places are going through recession. but the one thing priceline has done well is execute their strategy which is to really grow and not just in the u.s. but also abroad. they're also doing it in a way that at least gives investors a bit of confidence about the stock. with price line reaching $1,000, the interesting part about this is, they are worth $512 billion, $53 billion at this point. that makes them worth about as much as gm which we were talking about quite a bit these days. also, worth more than fedex, worth more than the biggest air cargo freight company. >> should they split the stock? >> yeah, but the travel industry is the next trillion-dollar industry. think p it, trillion dollars globally spent on travel. and online right now is about 40% of that. perfect environment for online.

if you can get that up to 50, 60, 70%, that's part of 70% of a trillion-dollar industry, and they are the global leader, huge. >> the question becomes competition. >> why don't they split it? >> why split it if you don't have to? all it does is improve liquidity. if people aren't going to sell it -- >> they're fans of warren buffett. >> this one had us all scratching our heads. an air watchdog group found that 30% of respondents have tip their flight attendants. really? >> i think the people answering yes to that are flight attendants because -- >> you're saying they have an ax to grind here, right? >> no. >> maybe they sponsored the study. i don't know. >> a lot of flights, you cannot even give them cash. they say we don't accept cash. so, you know, i don't know how you could even tip if you wanted to. >> that's the reason why airlines are going to cashless. you've got to swipe your card. i will say this. >> i've never seen somebody tip a flight attendant. >> pilot maybe? >> safe landing. >> i remember the first time i

was in europe at a bar, and i remember they don't tip very often over there. i slipped it to the bartender, and they didn't leave me alone for the rest of the night. i never waited for another drink. >> is that right? that's a good thing. very interesting. i couldn't believe that people tipped their flied taeght atten but maybe they do. thank you very much. we'll come back in just a minute and give you the biggest stock winners this hour when we return. [scream] ♪ don't tell mom. don't tell mom. don't tell mom! don't tell mom. okay. don't tell mom. don't tell mom. don't tell mom? yeah. the best stories you'll ever tell start with, don't tell." don't tell dad. start yours in the new santa fe. from hyundai.

♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

all right. coming up on "closing bell" this afternoon, becky quick sits down with warren buffett and brian moynihan. that's at 4:00 p.m. eastern time. and then tomorrow on "power lunch," we all know that google employee perks range from free lunches to nap pods. well, we're going on it see why it wants its employees it find their higher self. google's zen master will be right here with us on "power lunch." see why perhaps this week especially a little meditation might help some of the traders down here and also maybe help a company's bottom line. the markets now, we're down 48 points on the dow jones industrial average. the s&p is down about 4 and the nasdaq has now turned negative,

off almost 1.25 points. winners this another, ajilent, foster wheeler on the list. that about does it. >> i'm the zen master. >> yes, you are, my dear. >> sue, see you back here in an hour or so. thanks for watching. that's if for "power lunch." >> and "street signs" begins now. one day after the fed, is it still all systems go for stocks and your money, or is it time to take a bit of a breather? we have got some eye-popping market stats that will have you really amazing paem eople at cocktail parties and gold's pig move. real estate staying hot. plus, will itunes new radio slam pandora and its investors? and champagne wishes and maybeve