i like this name. >> simon baker, the trade maker. >> altell, lieu cent, rumors or suggestions nokia might buy the mobile business. we like it. >> i like energy. national oilwell varco. >> josh? >> last chance to buy dupont under 60. great weekend. power starts now. >> "halftime" is over. "power lunch" and the second half of the trading day starts right now. scott, thank you very much. jc penney getting nickeled and dimed down 9%. the struggling retailer selling shares to raise cash. also rolling out a risky new strategy. we're live at a jc penney store in new york. big payouts for small results. blackberry, billion dollar loss, but the massive gold en parachute. the jaw-dropping details. martha, martha, marcia, domestic diva going on a twitter rant

over why apple won't fix her broken ipad. it's a rich story, folks. apple fighting back, but don't worry, we have the perfect person to fix your pad for your. sue, meanwhile is at the nyse. how are you? >> hi, ty. i'm good. as you mentioned two brands in trouble, jc penney stock hitting single digits on concerns that retailer doesn't have enough cash to fund its operations into the holiday shopping season. it expects to raise $932 million in a stock sale. for blackberry it lost a billion dollars in its latest quarter paying out millions to executives. we have courtney reagan on the jc penney and seema mody on blackberry. court, you go first on jc penney's attempts to turn things around or try to. >> that's right. good evening to you, sue. the retailer announcing it expects to end the year with liquidity in excess of $1.3 billion, $200 million less than it expected at its second quarter earnings announcement.

jc penney's cash burn has been concern for a while. its transformation isn't cheap. it's been a considerable amount of money building out its new shops. two more are launching, here at this store behind me in new york city, the company held a media event showing off its two new shops, giggle and disney. it will be 565 of them in jc penney stores throughout the country. others lines, ted baker and flowers by zoe. the senior vice president in charge of kids had to clear the floor of some of the, quote, unproductive brands to make way for the new labels. kids represents about 12% of jc penney sales. we were able to speaks to the founder of giggle inside and how she feels launching 565 new shops in jc penney as concerns continue to swirl about the company's financial condition and vendor confidence. this what is she had to say. >> we can already see early numbers on-line and some of their on-line, quick rebound in

having on-line perform is really encouraging to me for what they can do as a brand and absolutely they're talking to us about this all the time. they've been great partners. >> and so jc penney soldiers on with a basic tenant of retailing selling merchandise as long as the vendors remain committed they will be able to continue on for some time more. that is what everyone is going to be watching the sales as we move into the second half of the year and the holiday quarter is just around the corner. sue and tyler. >> court, thank you very much. let's drill down on at future of jc penney. can that retailer be revitalized. stacy is a cnbc contributor and joins us on the newsline right now. stacy, you've been critical of this company but i also have to add you've been right on in terms of how you see this story unfolding. look into the future for me we're going into the holiday shopping season, what do you see for jc penney? >> now here's a whole new problem. i think if you search on google under [ inaudible ] credibility

a picture of jc penney will pop up. now you have a management team that basically yesterday, they came out with this press release saying the reports are wrong, sales are fine. they even said they expect positive comps in q4. why would you put that out there? not only that but they came out after the bell with the share offering. right now if you take a look at the future, first of all now you have a management credibility problem. you have to bring in a new team. on top of that, sorry, go ahead. >> go ahead, stacy. finish your thought. >> i was going to say, on top of that, you know, certainly now you scared the customer away. that's not changing. things are really not turning in the right direction. you're going to have to keep couponing to get the consumer back in the store. what happens to margins in the long term some. >> exactly. on-line sales, i don't know if you were able it to hear the sound bite of the person that courtney reagan interviewed

saying on-line sales have been strong, but you point out in a note you gave to us that on-line sales were negative 37.3% last year. so, what do you anticipate in terms of any potential growth for on-line sales? >> yeah. i mean, last year on-line sales were a complete disaster. i mean, in a time where all -- most companies are growing double digits, you know, jc penney was down 30 plus percent on-line. now they're up double digits. i'm not ready to throw a party yet. yes, that is -- will be a focus for them. that will help. but again, the real problem here is the real estate. the problem is getting the foot traffic back in the stores. i think on-line is great that it's improving, but it is so not the first priority that should be out there. it's getting those consumers back in the store. >> all right. stacy, thank you very much. ty, up to you? >> folks, thank you. blackberry down 20% in just the past month.

what a dive this stock has seen over the past couple years. seema mody here, blackberry lost a billion dollars, but it is in the latest quarter but it's the executive compensate for the ceo. >> does a ceo deserve a package when the company they're leading is suffering. according to reports blackberry's ceo could rake in $55 million if the company is sold or his job is terminated. this cushy golden parachute said to have been secured by three board members including prima watson of fairfax. a professor at yale school of management said heins was the wrong guy for the job and now his compensation package is calling into question whether ceos deserve such high payouts when the companies they are leading are under performing. other high-profile exit pay packages include carry fiorina paid $21 million even though shares of hewlett-packard fell

during her reign. bob nardeli of home depot paid a serve ran package of $210 million. henry mckinle of pfizer received $196 million even though shares while he was ceo dropped 30%. william mcgwire got $1.2 billion. the shares of united health gained roughly 5,000% while he was ceo. i spoke to one professor at the columbia business school and he told me it comes down to the boards putting together realistic payout schemes that are performance based that could potentially -- >> what is so curious here, mr. heins pay package was revised upward, tripled back in what the spring in april, mr. prem who is the guy now trying to take the company private, was part of the group as you said that boosted his pay package. >> experts tell me that's probably because wassa wanted had imto stay there.

it was going to be a tough road for blackberry es special list with the bb 10 launch in place. that's not what happened. >> all right. thanks very much. seema mody reporting. let's bring in brine, senior analyst with morning star. is he making too much for a company that's done nothing but suffer? >> sure. the easy answer yes. he's getting paid as if he's in charge of a successful $15 billion company and the truth is he's in charge of an unsuccessful $6 billion company. the reason whe probably got the pay package, you alluded to, he needed to stay on through this transition. we can only imagine what would have happened to blackberry share price if there was another ceo. i'm sure that went into the thinking at the time. >> i can well imagine if i was a share holder of blackberry, which i'm not, i would be ticked off. talk about the future of blackberry. can the company survive, brine brian? >> it's going to be difficult.

this $9 takeout offer is the best and only offer. if that doesn't go through you're looking at a further floor. they're selling for cash plus patents on hand. i'm skeptical they're going to turn into any significant player in the smartphone pace. the private equity side is maybe they could sh rirng the business enough to be an enterprise only company selling to governments. quite frankly we would take it at 9 and hope that the 9 goes through and that's the best deal for investors. >> the market doesn't seem to be saying the 9 will go through. when that offer came out i believe a week ago the stock blipped toward 9 but nothing but slide back around 8. we have a chart of blackberry we can throw up quickly. there you see it. 8.12. right now up 2%. 17 cents. broin, thanks very much. >> you're welcome. >> you bet. all right. there are stocks doing well. call it the sneaker trade. nike hitting a record high. reporting better than expected quarterlies, boosted by big

sales, gains in north america and over in europe surprisingly. future orders rising 10%. finish line reporting better than expected results on increased revenue and there you see finish line's stock up 27% year to date. that's a nice one. it's benefiting also foot locker its rival higher as you see, only foot locker is failing to beat the s&p 500 so far this year. sue? >> we have more for you, ty. facebook hitting another record high. while yahoo! hitting multiyear highs. yahoo! at its highest level since october of 2007 over the excitement ability an alibaba ipo. all three having a great year. easily beating the s&p 500. >> all right. wall street keeping a close eye on congress and that battle over the budget. three days and counting now to a potential government shutdown. chief washington correspondent john harwood here with the

latest on the negotiation and the voting. last i saw there was actually a vote taking place. john? >> tyler, the senate has now voted to end debate on the underlying bill which would extend government funding through the middle of november. now we're in a voting process, just in the next few minutes, where harry reid is going to offer an amendment the democratic leader to strip out the provision the house had passed to defund obama care. so the senate is on the verge within the hour of passing a clean extension of government funding for a couple of months to permit negotiations over a longer term budget deal. then the house of representatives is going to have to decide and that's a decision for speaker john boehner, how to proceed. for now harry reid was thankful that republicans, more han of that in the republican caucus, went against ted cruz and his filibuster and voted to move forward. here's harry reid. >> i'm confident many of my republican colleagues will vote

with us to allow the government to perform its basic duties. together we'll send a message to radical republicans that we will not allow the law of the land to be used as a hostage. >> reporter: but now the bill is going to go back later this afternoon into the hands of the house republican caucus and speaker boehner is going to have to decide whether republicans are willing to avoid a shutdown and extend government funding, or whether he's going to have to turn to democratic leader nancy pelosi and get a significant number of votes from her and pass an extension of government funding with republican and democratic votes. if he doesn't do that, and the house can't pass the extension, we're going to go into a shutdown while the who chambers continue to go back and forth. >> all right. john, thank you. i'll take it. that's what's pressuring stocks today on wall street. among other things, but washington really does loom large today. we're down 60 points on the dow jones industrial average. the nasdaq is down almost 1.5 points. the s&p 500, is off almost 6

points. more on the trading action with mary thompson, on the nyse floor today. >> hey, sue. those concerns about washington, offsetting decent news on personal income and spending today. the markets lower throughout the session. note they have come off the lows, though, in recent trading now the dow is off just about 60 points. we have seen a little strengthening in the drug sector and oil services looking healthier with the banks than they were earlier today. let's take a look at dow movers today to the downside. weakness in big tech names and telecom names. verizon, cisco, ibm. nike, the new dow component is the biggest winner among the 30 after reporting those strong results. microsoft, getting a bid from the news that alan mulally the ceo of ford is reportedly the frontrunner for the ceo job. couple of other stocks, the stock of the day is jc penney. keeping watch on that. the share offering one which will increase the number of shares outstanding by about 38% and dilute its earnings by

roughly 28%. we're seeing weakness in gaming stocks. igt downgraded at deutsch from a hold to a buy. citing an extended run on in-line results and also concerns about the gaming, the industry fund mems in the gaming industry. expecting them to become more challenged and that's keeping pressure on the stock today. back to you. >> mary, thank you very much. with that looming debt deadline dragging wall street lower. how do you play that uncertainty? answers from katie, cio of northern trust wealth management where she is responsible for $202 billion in assets under management. good to see you. >> nice to see you. >> you made changes to your tactical allocation just a short while ago. you overweighted some of the developed markets outside of the united states. tell me about that. >> we did, sue. we see three key underpinnings to increasing our international developed exposure. first and foremost, we see

continued central bank action being very, very positive. we have an accommodative bank of england, accommodative ecb and super accommodative bank of japan. diversified international development exposure that's a key benefit. very attractive valuations particularly in europe, significantly below their long-term averages. the third thing are green chutes of economic recovery. in europe out of recession and starting to see impact in terms of economic growth and behavior in japan which will be positive for equity markets. >> what about the u.s.? you've been saying for some time now that the economy is slowly improving. but yet, we have this situation in washington that seems to be weighing down stocks. are you worried at all about the looming debate going on in washington? how are you handling that with your clients? >> we recognize that this is a

very volatile time for stocks and bonds. the stock market has had a lot to guy guest over the last -- digest over the last week. thinking about the taper and the market had come to peace with the taper as long as the fed was tapering for the right reason. if the fed tapered because it saw strong momentum in our economy that would be a good thing for stocks. the decision by bernanke not to taper calls into question the sustainability of recovery. bernanke mentioned the dysfunction in washington as being potentially a negative for economic growth. so the markets digesting that as well. we see this period of volatility being continuing probably for the rest of the year. however, we think that the bottom line it comes down to earnings. and we do see the s&p 500 earning about $111 on a 12-month forward basis. we think there's room for the market to run here. >> let me turn you to the credit markets. blackstone, one of the big guys at blackstone thinks that we are in a credit bubble the likes of

which he has never seen in his career. are you seeing that kind of bubble formation in credit or not? >> we really don't see that in terms of credit spreads which look right around historical average. in terms of issuance, although issue anance has been high it ht been extraordinarily high. what we see going forward is a low return environment for fixed income investors. >> go into equities, right? finding value here in the u.s. >> absolutely. the market is not undervalued the way it was in the fairly recent past. we've come a long way and multiple expansion has done a lot of the heavy lifting for the market this year. but we certainly see the market fairly valued and see fundamentals super strong and earnings continuing to grow. >> all right. on that note, thank you, katie. >> thank you. >> nice to see you. have a good weekend. >> you too. >> ty, up to you. >> all right. sue, home making guru martha stewart on a twitter rant about why apple won't fix her broken ipad. apple is firing back. dominic chu has been plumping

the pillows all morning and following the feud. >> tyler, martha wants door-to-door personalized repair service and even got some business suggestions for apple. all the details next. keep it right here on "power lunch." when does your work end? does it end after you've expanded your business? after your company's gone public? and the capital's been invested?

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lumber lick question daters getting stepped all over today, taking it down 9 .75% after the fed's raided the company's headquarters looking for illegally wood flooring

products. the company says it is cooperating with authorities. despite the fall the stock is up 90% or thereabouts this year. ty? >> sue, martha stewart is unhappy with apple and dropped her ipad, cracked the screen and wants apple to fix it. dominic chu has the details. this was a long twitter chain. it's become a kerfuffle. >> it's been interesting because martha stewart is a lady who often gets her way. when she doesn't really get her way she turns to twitter to rant about it. the blow by blow on what martha said on twitter. she goes, i just dropped by ipad on the ground and shattered two glass corners. what to do, does one call apple to come and pick it up or do i go and take it? she follows that up with i am still waiting for an apple rep to pick up my ipad. no action yet. and then she says, maybe i've had a good entrepreneurial idea. apple now. like same day delivery from amazon i think i am on to

something. same day fix it. maybe advice for apple. she goes on, i cannot believe that apple public relations is mad at me for tweeting about my ipad and how to get it fixed. steve jobs gave it to me and then you invite all kinds of haters. this came up from matthew, he tweets, i think apple pr is mad just because you keep spelling ipad with a capital "i." defend herself a little bit, i wish i could explain everything on twitter about the broken ipad, stolen iphone and silly joke about the repairs and my stration. i will hope that apple will fix everything so i can function with proper things. she took to the airwaves on the "today" show this morning to clear up her side of the story. >> when i dropped my ipad i was so mad at myself for breaking

something that i can't live without, i love my ipad, don't you all love your ipads. >> yes, we do. >> i mean i'm addicted. >> get a free ipad. what's this about? >> no. actually, it was a gift from steve jobs. i have a note that came with it. had he knew i was an early adopter of technology. so i was just -- and so i was just making a joke, should i -- will apple come an pick it up. >> oh. >> they don't really do that. >> well, i didn't -- i was just joking. of course i know that. >> so tyler, she was joking. tyler, it did have sentimental value. it was from steve jobs himself. >> thank you very much. martha stewart. let's talk more about this story because we can't get enough. icracked is a start-up that repairs broken ipad and iphone screens. tech doctors who do do make house calls. found around ceo aj was on the power pitch a few months ago and mandy drury and tim draper and

box group's david tish gave his business plan three ins. good day. aj, welcome back. you know, have you reached out to miss stewart? >> oh, we've reached out to her multiple times and we'd love to help her out. we do what she's looking for in terms of press a but and we fix it in about 30 minutes. >> you go to her house? >> home, office or work. mobile on demand service. >> will you get there today? >> absolutely. we -- our website, we have a dispatch system which sends the closest tech to you and it's quite a convenient and awesomes service. >> how much would it cost for miss stewart to get her ipad screen fixed? depending on the break? >> probably about $150 but we could possibly work out a deal. >> could possibly work out a deal for miss stewart. maybe barter. she could endorse your service. how about that?

>> i think she would love our service. we have itechs standing by. >> how is the business going? how is traction? if you got stewart behind you here with some complimentary tweets i could see the business doing better. how is it going? >> yeah. business is going to well. we have 402have 402 itechs. >> the typical price to fix an ipad screen is about $150. how about iphone? >> iphone is anywhere from 70 to 150 depending on the model. >> and do it very quickly. >> very quickly. talking within an hour of you requesting service. >> and you make house calls. that $150 includes the price of the house call or is that for the service itself? >> it's all -- we believe in flat rates. it includes everything. and our itechs are the best customer service people in the world. >> let's get that website out

there. what's your address? >> it's icracked.com. martha, if you're watching, why don't you log in. i'm sure they would love to hear from you. ceo aj forsythe delivering his entire power pitch as if he just didn't do it there on yahoo! finance.com. >> thank you very much. >> sue, back to you. >> i bet martha gives him a call. selling obama care to america, can the private sector do it better than the states can? bertha coombs taking a look at that. >> e-brokers have been selling insurance on line for years. with glitches delaying some enrollment capability on the government exchanges could these marketplace veterans. we fit? we'll take a look when "power lunch" comes right back. [ 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.

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by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ let's check in on the price of gold right now as they try to wrap things up for the week. jackie is tracking the action at the nymex. >> good afternoon. a good day for the metals complex across the board. let's start off with gold, seeing a more than 1% move to the upside today. a couple of reasons for that. the first one being some safe haven buying on the concerns over washington gridlock. but then also you had some headlines out this morning, a little dovish fed speak helping out as well and end of quarter so you're seeing repositioning today. we are watching prices at this point, 1339. we're up about $15. traders saying we're getting

kind of stuck there, can't break through the 1350 mark. in the rest of the complex i want to point out palladium was a very good gainer today up more than 1%. the best gainer in copper wrapping up the week with three straight days of gains. tyler, back to you. >> jackie, thanks very much. t minus 4 days until the obama care health exchange is launched. not everything is going as planned. a number of glitches will cause delays for some people looking to sign up. bertha coombs has a rundown of some of the problems and one alternative option in some places. >> changes will open on time tuesday but technical glitches are pushing back some functionality. still, on-line enrollment on the spanish language portal is now pushed back to mid october. until then, you could enroll on paper. on-line buying on the small business, shop exchange, is delayed to november. this after last spring the administration delayed offering

a choice of plan option on that exchange for one year. of course in july there was the big delay, on the employer mandate to 2015. the government exchanges aren't the only game in town. on-line insurance brokers like e health and go health got approval from the obama administration this summer to sell exchange qualified plans, which are the only ones eligible for tax credits. that means that residents in the three dozen states with federal or federal/state partnership exchanges can use private sector on-line marketplaces and still buy those health insurance plans with subsidies. so far, the state built exchanges has said no to that. steven hall pert thinks the states are being protective of their investment in the infrastructure and exchange jobs that have come with it. the on-line brokers say for residents in the federally built states they're going to be able to offer added value here, the ability to compare the exchange

plans and private market costs and plans side by side. >> someone who is subsidy eligible but so high on the income bracket it's a small subsidy and something else make more sense for them financially we help them with those kinds of things. >> e-health the one plan that is publicly traded you can see the stock has performed very well, they have about 20 million customers that use their site last year. they also have mobile capability which, tyler, is something that government exchanges do not have. >> all right. ber, th bertha, thanks very much. >> let's toss it to mary thompson following a market down about 76 points right now. mary? >> that's right. that's pretty much where we've been through the session, sue. weakness pretty much across the board. again, slight gains in the drug stocks and gold shares today but that's about where you're seeing most of the strengths. some of the tech stocks as well. we want to point out is that the s&p and the dow actually are on track for a very bad week.

the s&p down five out of the last six sessions. no change today after yesterday's rebound. what's interesting to note is that we had seen a correlation between treasury yields and the s&p, ever since the fed released its statement last wednesday, treasury yields have declined so has the stock market. that's unusual. typically they move in opposite directions. it suggests traders are focusing more on economic data now because it will give them an idea as to when the fed will taper and they're no longer just looking for the -- what a number people call an artificial boost through the markets through the easy money policy. what's interesting to note even though we are seeing a pull back in yields, the rate sensitive stocks are not benefiting at all. they are the laggards today. weakness in utilities and telecomes. >> back to you. >> thank you. up town to the nasdaq, sheila dharmarajan is following the movers for us. >> hey there. traditionally the nasdaq has been such an outperformer always

gaining but the index has not been immune. after starting out the day flat, nasdaq 100 down about one tenth of 1%. qualcomm and broadcom. piper jaffray cutting their price targets on those stocks and those are leading the nasdaq lower down 100 today. on the upside you have to think old school technology companies, microsoft getting the potential mulally ceo lift and yahoo! on the potential of alibaba going public. back to you. >> okay. thank you. to the bond market we had data this morning, that took the dollar to the downside and also put some traders into the bond market. we had three kind of iffy auctions this week. wrap it up for us. >> no. the auctions were not spectacular and the dollar index might be marched into a drummer we established over the last two nonfarm numbers. a two-day chart says it all. once we traded under yesterday's

lows and we have followed stocks down, it seems as though in the end of the quarter, is coming on monday, maybe there's a little bit of a jump. things that went down are going up. things that went up are going down. if you open the chart up we set the three days from august 12th to august 9th. we're proactive. look at an lqd it looks similar. the hyg doesn't because we're at a record month for investment grade issue wans, close to $150 billion. last chart is the dollar and yes nothing working well for the dollar index. all yours. >> all right. thank you very much. have a great weekend. can a crash avoidance feature in your car actually prevent rear-end collisions like the one you saw? phil lebeau knows and live in a place near and dear to my heart. charlottesville, virginia. phil? >> hello from wahoo country. not very often do you see a tv

reporter do a crash test live on tv. you will see one next on "power lunch."

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for the first time ever the insurance institute for highway safety is conducting crash tests to evaluate the increasingly popular collision avoidance systems in new cars. coupons's phil lebeau is behind the wheel for us in charlottesville, virginia, with the results. hey, phil. >> hey, sue. i get this question a lot, do the collision avoidance systems work do they prevent accidents? the answer is yes, they do. they have proof to back it up. they have done the first crash test ever of collision avoidance systems. they're measuring two things, how long does it take for the system to warn drivers they're about to hit another car and also if there's auto brakes how quickly do the brakes kick in to slow the car down and prevent it from rear ending another vehicle. seven vehicles got superior ratings. the sue but ru legacy and outback, followed by the cadillac ats, cadillac srx and

mercedes c class, volvo s 60 and volvo xc 60. there are 1.7 million crashes considered rear ender, that's the most recent statistics from the department of transportation looking at 2011. 31% of the injury crashes are rear-enders which is why the auto industry is spending more time developing these systems and people are realizing i'll pay to have that system put in my car. >> safety sells and it's actually required in a lot of the premium markets that you absolutely have to have the latest safety content going forward. >> how do they do the crash tests here at the iihs test track in charlottesville, virginia. we're in a 2014 cadillac ats. this system is rated as superior. but it doesn't work above 25 miles per hour. that's what we're going to do here. we're going to get up to 25 miles per hour and watch what

happens. doesn't kick in. that's a little taste of what happens if the system doesn't kick in. what you probably didn't realize, though, is the system did start to slow the vehicle down. ultimately, guys, that's what they're hoping the technology does. slow the vehicles down. it's not always going to prevent a rear-end crash but it will slow the vehicle down and give you a better chance of not being injured. back to you. >> phil, i also heard a beeping sound. i would assume that's warning the driver that they are about to hit something? is that correct? >> yep. >> or telling you that the system is trying to kick in? >> yes. >> and we should point out the ats does stop the vehicle from rear ending -- rear-end accidents up to 12 miles per hour. it's that 25 mile per hour that it does not work. a lot of vehicles don't stop at 12 miles per hourp. that's why it's rated as superior. >> can i switch gears and talk about mr. mulally at this point. what do you think of the rumors that are out there about him

moving? >> i think if he wants to go he can go. that's the bottom line. ford is not going to hold him back. if he thinks it's the right opportunity he has the blessing from the ford board. bill ford jr. will not stop him if he wants to go. the key is whether or not alan mulally believe he has a vision for the fewer of microsoft. if he does and wants the challenge he could go. >> all right. phil, thanks so much. be safe. don't go above 25. phil lebeau, ty, up to you. >> just remember phil's last answer may have been impaired because he was in a serious car accident there. remember that. phil, we can have you in court with a filing by later today if your neck is hurting. let's move on. there he goes. there goes phil. going to crash into something else, isn't he? watch him go. going above 25. he's at risk now, ladies and gentlemen. how the other half -- he's taking that car back to chicago, man. how the other half live. what do the rich want in a new

home. you've been wondering. robert has been doing digging. >> we could call them the wired wealthy. technology is a top prioritynd they like a nice pool and outdoor kitchen. you will be surprised at their number one amenity up when we come back after the break. i love having a free checked bag

with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪

♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ welcome back to "power lunch." i'm diana olick in washington. the fha which is the government's mortgage insurer will draw $1.7 billion from the u.s. treasury. it's the first time in the fha's 79-year history it has needed help and it's nearly twice what the administration projected earlier this year. in a letter to members of congress, fha commissioner carol galants said this amount is higher than the estimate because of a decline in fha endorsement

volume. fha has been getting less business due to higher mortgage rates and higher premiums and fees it's charging. the draw based on tricky accounting that requires the fha to predict how much it will need over the next 30 years to cover losses that prediction was made last december. galants says improvements already this year including fewer defaults and foreclosures would have made the draw unnecessary regardless it does need the cash to pay claims it -- it doesn't need it to pay claims. it has over $30 billion in reserves. >> interesting. >> thank you very much. >> what do the rich really want in a new home? our wealth editor knows and i'm waiting to be surprised. >> the suspense killing you. >> location still important when it comes to choosing a home. inside their house, their tastes are changing. a new study from caldwell banker international and a luxury institute polled homeowners with income of more than $250,000. the average home purchased was

$1.6 million. their top priority in a home is an open floor plan. they like to be able it to see all that space that they paid for, especially nice views. ranking second was technology. they like things like high-speed internet in all the rooms, smart appliances, lights and blinds to operate with your iphone. that's important. ranking near the top, nice pool. pools getting more elaborate on the coast with infinity pools overlooking the water and outdoor kitchens also very big with the wealthy. they've got full cooking ranges and $6,000 pizza ovens. wealthy women are less interested in technology, more it interested in the pool and environmentally friendly homes. what's out? well, wine cellars and tennis courts. they're not drinking or playing tennis as much. >> they like to cook outside. you see a lot of outdoor kitchens. open floor plans. the big kitchen that spills into the family room and to the dining area and the old we have a victorian home with lots of

small rooms. >> right. so they like to be, again, that sort of grand feeling and a lot of space. >> we will leave it right there. to john harwood with breaking news. >> the senate bassed bay 54-44 vote extension of government funding through mid-november, stripping out the defunding of obama care, the house had added to that measure. that goes back to the house and we're left with a decision by the house of representatives to -- on whether or not to extend government funding avoid a shutdown or to send something back, a new condition, back. ted cruz, who had advocated the filibuster to stop this bill, was -- lost senate republicans as well as the entire senate, 25 of the senate republicans voted against him. only 18 of his colleagues voted with him. he's just at a stakeout camera just now urging house republicans to stand firm, listen to the american people, who he says don't like obama care, and not give in to an

extension of funding with obama care. so we don't have a resolution. the house will be in over the weekend. the question is, can they get it done an extension of funding by monday when the fiscal year runs out. if they don't we'll have a shutdown for some period of time. >> all right. john, as you predicted it's going to go down to the wire. thanks. appreciate it. will i be able to retire? one of those questions that keeps americans up at night as they face challenges that could put an end to their retirement dreams. there's a new paper out by pnc which boiled down the concerns to the -- find the really five most serious threats to your retirement. take a look at this. so watch out for inappropriate asset allocation. higher interest rates. losses of purchasing power. rising health care costs. and changes in net worth. if you are in preretirement you can make the moves to up your net worth. here's pnc's bill stone. >> in preretirement investors earn a much better place to deal

with negative shocks to net worth. if you're working, you're going to still have money coming in and you can invest it, say even i'll say double down, buy more real estate, buy more stocks, et cetera and actually ride that move back up. >> well, that move back up is happening as a whole households that seen declines in their net worth are pretty much fully recovered even beating the pre-recession highs thanks to a strong stock market. the first casualty of the fall tv season could be intel. you heard me right. intel. because intel tv is in trouble. could it be canceled altogether? "power lunch" is back in 30 seconds.

coming up in "street signs" in less than ten minute's time. looking for a mortgage, rushing to get one before they get higher or they may go lower. ceo of lending tree is out in the green room. he will give us his tick on what's going on. feel like you can't catch a break. we have three breaking bad stocks that feel the same way. chuck nice is here to chew the fat over three outrageous headlines. all that and lots more coming up, "street signs" in about seven minutes time from now and counting. back to you on "power lunch" in the meantime. >> all right. thank you very much, mandy. we'll be there. want fruit with your big mac

perhaps. mcdonald's is rolling out healthy options as part of its popular value meals. is that a good move to expand beyond your core. talk about that next. aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401(k) to hidden fees. thankfully e-trade has low cost investments and no hidden fees. but, you know, if you're still bent on blowing this fat stack of cash, there's a couple of ways you could do it. ♪ ♪ or just go to e-trade and save it. boom. ♪

we have never had these two together on the power rundown. julia boorstin and seema mody. start with alan mulally, may he go to microsoft as the executive, top executive, following ballmer? would it be a good move? >> some of the skeptics say he's an auto guy. what does he know about technology? keep in mind that order to be a leader in the auto space you

have to have a deep skillskets in technology. >> before an auto guy he's a airplane guy. >> let's talk with a story you've been following intel and its tv aspirations. >> earlier this year intel said it would have a new tv service like a bundle of channels similar to cable tv it would distribute over the internet and had to do -- >> called net flicks. >> actually more like comcast or time warner cable. to do that it had to strike deals with all of the content providers with viacom and disney and fuse corp, fox, the problem is they haven't been able to strike the deals yet. they promised it would launch by the end of the year. it's looking like it's not going to be ready in time. >> mcdonald's which announced they are going to start serving fruits and special other kinds of healthy treats. >> love it. >> with their other fare. is it wise for them to stray from the area where they've been so affiliated in the past,

burgers, fries, shakes? they've tried this before and it didn't work. >> i still think it's a good concept because as a company you need to find ways to evo satisfy your customer. as a customer our demands and what we wants changes. a company also needs to change their goals and their targets. >> mom, what do you say? >> i totally agree. i think there's a major obesity epidemic in this country and any way you can get healthier foods to kids is a good thing. instead of giving soda, they're giving milk. any way to swap -- >> sliced apples and so forth. >> it's got to be a good thing. >> thanks very much. seema and julia. "playboy" magazine out with its top party schools in the nation. my alma mater used to be in the top ten, didn't qualify because it was professional. who's number one. you might be surprised. [ tires screech ]

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[ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. all right. listen up parents here are the top five party schools in the nation. "playboy" magazine has the list. let's count it down. number five, florida state university, number four, university of southern california, number three, university of colorado, number two, university of wisconsin.

scott cohen went there. the number one party school is none other than west virginia university, in morgantown. all right. you got the list. >> i believe it. >> i believe it, ladies and gentlemen. thanks for joining us this week, everybody. >> the dow is down 76, the s&p is down 7, the nasdaq down 3 and "street signs" begins right now. ♪ if you close your eyes does it ever feel like nothing changed at all ♪ ♪ if you close your eyes does >> just like the song says, does it feel like nothing changes? because there's now just four days until a possible shutdown in d.c. one firm is saying the odds are higher than you think for a shutdown. the do to-do list, the way to play the disarray. mortgage market toast or the good times and still low rates roll on. ceo of lending tree is here