certainly in focus. lowest levels now in just about a year. got to go back to last june or july as that note -- there it is -- the top of your screen, hit 241 earlier today. that does it for us. "power lunch," i'm certain, is going to talk about that. we'll see you tomorrow. "power" begins now. >> "halftime" is over. the second half of your trading day begins now. >> all right, we certainly will be talking about that this hour. scott, bond yields down. what is going on here? the dow transports hitting a new record high today. look at the ten-year, approaching the 2.40 level. there you see it. 2.424. let's see what that means for the big stock picture. also today, a special report ahead of the big american society of clinical oncology meeting this weekend. the main cancer fighters. the through ones. this is a meeting that moves stocks. we're getting you ahead of the game on names big and small. i'm standing in the wrong place, but you'll understand. we're going to fix america's internet, folks.

the ceo of softbank and sprint, chairmen, say the u.s. internet speed stinks. 15 out of a possible 16. who's going to fix it and how can you profit? now go over here, right? here i go. we're exactly two weeks from the start of the world cup in brazil. and it is a very scary picture apparently down in that country. gang violence spiraling out of control. brazilians staging massive protests. we're going to talk to a big voice in brazil who says the country will not -- repeat -- not be ready to host this tournament. first to sue at the nyse. >> hi, ty. and right now we're focusing in on interest rates, as you mentioned, but also on the markets with the dow jones industrial average right now up 17 points on the trading session. s&p at a new record high earlier today, up about 4.5 points. nasdaq composite is up 14 points, one-third of a percent to the upside. the russell 2000 almost up 3%.

gold down. there are many story lines for this hour. we're beginning in times square with the nasdaq and seema mody. hi, seema. >> reporter: good afternoon, sue. a lot of traders watching the yield on the ten-year treasury note, there are more market participants looking for other asset classes that can provide that yield to income-hungry investors. technology is seen by many pros as a good place to get that yield. in fact, here are some of the companies in the s&p tech index that have a dividend yield higher than the yield on the ten-year. all of these stocks higher on the day. now, in terms of market leadership here at the nasdaq, biotech playing a big role. biogen, the best performing stock on the nasdaq 100. jpmorgan cited upside potential from the biotech's multiple sclerosis franchise. a comeback in the nasdaq. the spike in volatility in the

so-called momentous stocks. here they are over the past three months. sandisk, number one, apple in second place with about 19.5% gain. in fact, today, tyler, ubs uping its price target to $700 a share. back over to you. >> seema, thank you very much. big news from two of the biggest retailers around. we start with costco, flat on the day. up 2% over the past two months. courtney reagan here with the retail detail. court? >> so many of the earnings seasons are over for a lot of these companies. for the for retailers. where has retailer costco reporting earnings today proving that it's an expensive task even if you're charging admission. costco's fiscal third quarter profit missing wall street's expectations for the fourth straight quarter. revenue of $25.23 billion coming in slightly shy of consensus. the warehouse retailer's results took hits from both less favorable exchange rates and lower gasoline prices. costs also increased. sg&n up 8%. merchandise costs swelled by 7% in the quarter. now, analyst david straser says

costco does pass on higher costs to consumers but slower and to a lesser degree than competitors. separately newly installed walmart ceo doug mcmillan spoke with kara swisher at the code conference discussing everything on thoughts from social media, store format and just how much walmart thinks about securing consumer data. >> customer trust is our biggest asset. we've got a great team. internally, externally. we invest a lot. it's a daily battle. and it's a risk point. >> have you been attacked? >> we get attacked regularly. >> walmart chairs have underperformed the s&p retail index over the last month. shareholders waiting to hear mcmillan's plans to reinvigorate the retailer when he takes the stage next friday. >> courtney, thank you very much. >> thank you. breaking news in the bond market right now. and for that, we go to rick santelli at the cme. rick, what's the demand? >> reporter: well, tyler, we just capped $95 billion in supply with $29 billion seven years. the grade, "d" minus. actually, the best of breed

compared to two "c" plus auctions. the yield, 2.01. right on the screws. that's pretty much the trade that was going on in the market at the top of the 1. the internals, 2.6. on bid to cover, very close to 10 auction average, as is 40.4 on indirects, it's a little light, but you were a little heavy on directs at 24.1. i guess the best news is that dealers only took 35.6%, meaning investors took the rest. "b" minus, well, now it's on to trying to handicap how much lower rates can go. sue, back to you. >> thank you very much, rick. we'll see you a little bit later. thank you, ricky. the s&p 500, as i mentioned, hitting a new record high today, zpat d despite showing data contracted in the first quarter. what should you trust? stocks for the economic data? george is co-manager of the morningstar five-star rated vilery balanced fund and lee

partridge is chief investment officer at salient partners. george, i'm going to start with you. the gdp data was somewhat disturbing, but is that still a weather overhang, that we're still seeing the effects of, or is it something else? >> i think a lot of people focus on short-term data way too much. in our world, we're bottom-up stock pickers. we like stocks that will do well in any sort of economic environment. in our case, there's several stocks we think are undervalued and should be bought by all investors if they have the patience. that comes with investing in stocks. >> yes, it does. quickly the names you like. >> sure. sanchez energy. they've had a good run already. they made a huge acquisition in texas recently in eagleford shale. we think that's going to double their production, double the size of the company. they're much more efficient operators than who they bought it from, shell. they can operate more efficiently. and they're escalating costs can be contained. >> all right. let me go to you, lee. what do you like or not like in this market? and george mentioned some of the

volatility that's inherent in investing. although some down here would argue we haven't seen as much volatility as they would like to see. it makes it an easier market for them to trade when they do have volatility. >> no i think you're exactly right. the fed has been suppressing volatility over the last five years. if you look at the fed forcing an end trade in 2012 and now you've had kind of a repricing of risk, we think volatility is likely to enter back into the market. now, from an equities standpoint, i would agree with a lot of what george said. we think that energy infrastructure plays and what's going on in the eagleford shale and even some of the legacy assets in the permean basin is creating infrastructure buildout. and we see huge needs for gathering systems, pipelines, storage systems. they're going to be in place for the next three to five years. we think that's a very important trend. just one comment on the gdp number, too. listen, i think that what's unrealistic on gdp was the third quarter print that we had at 4%,

down 1% due to weather-related activities is not a surprise for us. we think we're living in a world of 2% growth. and that's kind of, you know, what we're going to expect for the next three years. >> lee, i'm going to stick with you and then give the final word to george. do you like emerging markets, or do you want to stay mostly here in the u.s.? >> we're big fans of emerging markets. so the important catalyst is number one, emerging markets are trading at a 40% discount to developed markets right now. that was really in place last year. so the s&p was up 32%. the emerging market indices were down 2%. but you're in an environment today where the fed is withdrawing stimulus, and the people's bank of china is easing their monetary conditions because they're worried that their growth rates declined by 2% from the top. so that easing pressure that's coming from china to stimulate growth we think is going to reprice emerging markets. >> george, what about you? i know that you take a longer-term view of things, and you say you have to have patience.

but in the reach for yield, would you consider going outside of the united states, or do you really find values still compelling here? >> no, we stay here. that's what we've done historically. we think domestic stocks are very attractive. we think if you go outside the market, you lose certain leveling factors such as the s.e.c., gaap accounting, fair markets and exchanges, we stick to what we know. we're bottom-up investors. plenty of stocks out there we think are still undervalued. we don't really want to get involved in emerging markets. a lot of trouble out there. >> thank you very much. good to see you again. lee, thank you as well. ty, up to you. >> sue, thank you. a harsh winter weather and falling interest rates had some hoping for a spring rebound, a surge in housing. but the numbers so far aren't exactly panning out. diana olick in washington now. diana? >> well, tyler, signed contracts to buy existing homes in april were up just barely. 0.4% from march and are down 9.2% from a year ago. the expectation was for bigger

gains as april brought warmer weather and slightly lower mortgage rates. still, sales were up the most in the midwest and down the most in the west. really unchanged everywhere else month to month. a lot of blame has been placed on higher mortgage rates. but rates are falling again today as the ten-year yield slumps to lowest in nearly a year. the average rate on the 30-year fixed today, right around 4% for the best borrowers. more online at cnbc.com. tyler? >> thank you very much. a food fight. tyson foods jumping in the battle to biuy hill scheyer far hillshire farms. tyson up, look at hillshchlt moving up. dominic chu, who likes food, is outside cnbc headquarters talking food. chef, take it away. >> reporter: tyler, this is all about brands. so we have tyson brands,

hillshire, pilgrim's pride and pinnacle foods. we're trying to show you, the viewers, what the recipe is for what the combination is. if you look on the right-hand side, you'll see the combos and the numbers appear before you. in essence, what tyson is trying to do, they're the nation's biggest meat processor. they're going after hillshire to combine their chicken products and prepared foods with brands like hillshire farms, kielbasa, prepared meats and remember jimmy dean's is a big part of that mix as well. they're paying a lot for it, but still it's a combination they want to do. now, pilgrim's pride is a lot like tyson, although perhaps on a little bit of a smaller scale. they do fresh and prepared chicken products as well. and they want those same processed meats. that hillshire farms brings. that's why they want to bid $45 a share for that. they want to combine these two particular brands. again, it's all about these brands. and then we can't forget that's happening really on the pinnacle foods side of things because you're talking about a company with pinnacle foods that has brands like vlasic pickles, log

cabin syrup, bird's eye vegetables. what they're trying to do is join up because hillshire wants to buy them. but in the end it's really all about what's happening with these brands because stephanie link, i was just chatting with her about our little food setup. she says that basically tyson is going to pay about 13 times operating profit for hillshire brands. at current levels, that's expensive. she shes it should be below ten times. they're paying a lot for them. what these companies want to create, if you will, a paella, a stir fry, a stew of all of these brands because all of these commoditized brands become one big portfolio. that's what all of these companies are trying to do. >> if you can't grow it yourself, you buy it. thanks, dom. appreciate it very much. food network online, too. shares of gm down 15% year to date. today a major hearing is being held regarding all of those

lawsuits over the automaker's faulty ignition switch. phil lebeau has got more on that story, and he's in chicago for us. hi, phil. >> hi, sue. this is a transition hearing. actually it's a number of attorneys who have filed cases against gm. they'll be meeting here in chicago. and here's what they're doing today. this is step one in a really lengthy process we're going to see play out over the next year or two years. 60 to 70 cases are going to be subject to this hearing today. these are all federal product liability suits from a number of jurisdictions. what they're going to be doing is asking a panel of judges, decide on one jurisdiction where we can try these cases. that way it's more central location, and they can basically all work in unison there. now, as they're doing this, general motors is considering the compensation fund for those who are victims of the defective ignition switch. general motors is also fighting liability on those cases, or having liability for those cases that took place before the company filed for bankruptcy in

2009. again, take a look at shares of general motors. the company is expected to finish its internal investigation. that investigation, by the way, being conducted by a former u.s. attorney. the results are expected relatively soon, within the next week or two. and then gm's ceo, mary barra, after she releases those results, could be facing more congressional hearings. and speaking of -- speaking with congressional investigators, take a look at this gentleman right here. day digiorgio, a gm engineer. we talked about him in the documentary "failure to recall." he is the engineer who signed a document that authorized a change in the ignition switch. he met with investigators on capitol hill within the last couple of weeks. reportedly he was upset when discussing the deaths involving victims in the ignition switch defect. mr. digiorgio is on paid leave from gm while they conduct this investigation. we have reached out to him today. we have not been able to talk with him. it's interesting, sue. the next two or three weeks, we're going to see a lot of

things happen here in terms of gm's internal investigation on capitol hill as well. >> and phil, i know you'll be on top of all of that. thank you. and you're going to stick around because we have another big story that we're watching today. take a look at this. >> we'll see if the auto brake keeps us from crashing. there's the warning. >> what happened? the surprising results of a new study on front crash prevention. that's coming up next. plus, the european parliament elections shocked the european establishment. michelle caruso-cabrera is across the atlantic for us live. michelle? >> hey there, sue. yeah, today i spoke with the leader of the uk independence party. if the uk had a tea party, this would be it. he has got a lot to say. and unlike most brits, he doesn't feel he has to be polite when he says it. you can see him on "power lunch" in two minutes. mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®.

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that is test video from the highway institute for safety. that is from a report with cars with built-in prevention systems and how effective they are. the man behind of wheel of those tests, executive vice president of the iihs, david zubi. david, cars are built to protect people when crashes happen, but this technology promises to prevent many crashes from happening altogether. tell us about the technology and how you rated it.

>> yeah, that's exactly right. the systems have sensors that look forward of the vehicle, and they monitor the position and closing distance and speed to the vehicle in front of you. and when they determine that you're about to crash, they give you a warning, and in an attempt to get the driver to take an evasive maneuver like braking. in the event drivers fail to respond to that warning, many of these systems will automatically apply the brakes to try to avoid crashing into the vehicle in front. >> you ranked several of the cars that you tested that have these systems. some were superior. some were advanced. and some received a basic rating. let's talk about the superior rated cars. >> yeah. basically, the superior rated cars, there were 13 out of this 24 group. you know, have early enough and strong enough braking to avoid many crashes and reduce the severity of those that they can't avoid. we've got winners from luxury brands like bmw and cadillac where a lot of this technology

is available, but we're starting to see it on more common vehicles like chevrolet malibu and some buick products. >> phil lebeau, jump in. >> dave, i was out at your facility last fall, had a chance to test some of the early models that were developing this technology. i'm curious from your perspective, i know you do the tests at 12 and 25 miles per hour. we saw firsthand how it works. do you see the automakers using this technology at higher speeds, or is it a little bit unknown at this point how effective that technology can be if, let's say, at 40 or 50 miles per hour? >> yeah, i think this technology will move to working at higher speeds. in fact, some of the technology is operating at higher speeds to provide adaptive cruise control functionality. but right now, in terms of being able to avoid crashes, it's generally lower speed differentials that they're able to cope with. >> when do you think it's going to be widespread that we see this really in almost all models of vehicles as opposed to where

it is right now? >> so i think it's coming in a few years because already we've seen a huge increase in the number of cars that are available with these systems. and if consumers show interest in them, then i think you'll see them more widespread throughout the market. >> all right. david, in my favorite place in america, charlottesville, virginia, thanks very much. and phil lebeau, i like where you are, too. it's just fine. i'm particularly fond of charlottesville. thanks, guys. dominic chu has set aside the processed meats and he is here for a "market flash." >> lockheed martin shares are at session highs. the company is buying a very small company or at least the operations of space operations of astro tech for about $61 million. you can see there lockheed martin up about a percent. again, a very small company's operations, they're paying $61 million for it. the stock is up for lockheed, sue. back over to you. >> dom, thank you very much. well, across the pond, results of european parliamentary elections shocking the establishment there.

many of the winners were parties that think the european parliament shouldn't exist. so why were they so successful, and what does it mean for the future of the euro and the eurozone? our chief international correspondent, michelle caruso-cabrera, is in london, and she spoke with one of those controversial and outspoken winners. michelle, over to you. >> hey there, sue. in at least four countries here in europe, the voters resoundingly said they wanted the party that was actually against the eu. here in the uk, the leader of that party is nigel firage. why do you think you did so well, and why do you think other people are surprised that you did well? >> because we got a political class, an establishment, that 40 years ago decided the future of this country was to be part of a political project in europe, one that behind it had the whole process of ever-closer unions. so what's happening is the united states of europe is being built without the consent of anybody. and really, we've come along and said hey, hang on. we want to trade with europe.

we want to cooperate with europe. we want to be good next-door neighbors, but we do not want 75% of our laws made somewhere else. and this magnificent building behind us effectively turned into a museum of democracy. >> reporter: this is the parliament. >> yes. >> reporter: they don't do anything? >> very little. very little. most of our laws that affect our businesses, that affect our ability to trade globally are not made in this country. they're made somewhere else. so what we've done is we've actually stood up and said what many people think. >> nigel farrage is going to push for a referendum in the uk for voters to decide whether or not they should remain part of the european union. if you see that happen across europe, you really have big questions about the future of the integration of europe. guys, back to you. >> thank you very much. fascinating stuff. all right. the world cup begins in brazil in just two weeks. are they ready? well, one major voice says brazil is in big, big trouble. there has been violence, transportation problems. will this world cup be a

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welcome back to "power lunch." check out what's happening with michael kors shares. it's taken a hit after the company warned wednesday that its margins might suffer from the cost of opening stores in europe. that stock is down toward session lows, off by about 5 %.s it may be nothing more than a valuation call. the stock has risen nearly 120%

in just the past two years. so a big deal on the upside, but a down day today, sue. back over to you. >> thank you very much, dom. all right. inside that plane is australia's national soccer team. they arrived in brazil last night. the first foreign team to arrive for the matches which start in two weeks. there are a lot of questions about this tournament. there has been a rash of severe violence in brazil. reports say drug gang activity is on the rise. there was a major shootout just last night. a taxi driver was killed in the cross fire. brazilians have been protesting the matches, saying that the government is overspending while ignoring social issues like transportation, health and education. the roof at an international airport in northern brazil collapsed last week during a rainstorm. and then there's the stadiums. of the 12 venues, many are not fully ready. media areas are not complete. roofs to shield fans from the sun and the rain unfinished. transportation, a huge problem. joe leahy is "the financial

times" man in brazil. he's been in sao paulo. from the looks of it, it doesn't seem as though brazil can handle what is one of the biggest sporting events in the world. what can you tell us? >> so yeah, it's certainly a bit of a mixed picture, as you mentioned there in the introduction. there's a lot of things that are still unfinished. the parts that are unfinished are usually not very serious things. it's a little bit disturbing to see that we've arrived at this stage only two weeks before. and this is still going on. having said that, one of the things about brazil, and it's really a cultural thing here is that things do get left till the last minute. and we say this every year with the annual carnivale festival, that we see quite a bit of chaos right up until the event, and then the event comes off quite well. it's always very difficult to make a call on whether or not something like this will be a disaster or not. >> what about crime?

i mean, we mentioned the shooting that took place last night. and from my notes, apparently, you know, crime seems to be pretty much rampant. you're going to have people coming from all over the world to brazil. many of them visiting that country for the first time. what do they need to know? >> yes. well, i think there's -- one of the great ironies is that if people who are visiting brazil at this time, if they stick to the touristy areas, copacabana, these areas, then perhaps these areas will never have been safer because the army, the police, they're all mobilizing in huge numbers. i saw here -- i saw here in sao paulo yesterday, the police were saying they were actually trying to prearrest protesters that they regard as violent to stop them from protesting. the problem for visitors will be if they don't stay alert, for instance, if they arrive in brazil, hire a car with a gps and then blindly follow the gps and wander out of these touristy

areas, then they could find themselves in areas that are not so nice. and rio has quite a few of those. >> of the venues, what is not finished now? what are the major projects that still need to be completed? >> the big one is the sao paulo stadium, which they're still testing. as of this month, they haven't installed all of the additional seating that they need for the world cup. and they had done one test match and then they had to delay the second one. that's quite a serious problem. the other one, one of the other big states here, had problems with the roof and the field actually flooded in one of the games recently. and then there's a lot of details. things such as, you know, the signage, you know, to get to the stadium in sao paulo. it's very confusing. the stadium has three or four names. some of them nicknames.

others are names the officials are using. it could be confusing for tourists. >> yeah. joe, thank you. we'll keep in touch because the big event is only a couple weeks away. thank you very much for joining us. tyler, up to you. >> thank you, sue. gold prices closing now. let's look at where the metals are finishing the day. gold is down by 0.3%. silver also a little lower. ditto copper. palladium and platinum, all fractionally lower today. sue? >> all righty. here at post 9, mary thompson joins me to give us the lowdown on the market. we're fractionally higher. >> basically a drift higher in what is another low-volume day, sue. another day where we see yields dropping at least on the ten-year to levels that we haven't seen in a number of months. you know, traders waiting to see what happens with draghi next week over in the eu. again, we have light volume today. the markets hitting record levels earlier today. the s&p 500, if it closed right

now, this would be a new record closing high. but below its all-time high hit earlier in the session. these are the sectors that are driving the markets higher today. we have strength in consumer staples because of deal flow there. materials, stronger as well. and health care. utilities and telecom are among the laggards today. financials basically have been back and forth across a flat line as well in today's session. i mentioned a lot of deal flow. specifically in the consumer staples area. you did have tyson foods bidding $50 for hillshire, topping another bid from pilgrim's pride. and then you had sanderson farms also coming in with better than expected results. so all of those with the exception of pilgrim's pride getting a boost in today's session. transports also hit an earlier all-time high earlier in the session. but they've since turned lower in large part because of weakness that we are seeing in airlines today. and we just want to mention some of the retailers. you heard dominic talking about michael kors earlier, but we also had abercrombie & fitch coming in, better than expected results, although they were lower helped by its women's

division. also dollar tree getting an upgrade. check out tilly's. this teen retailer took a very big hit, not only disappointing results but also disappointing forecast. so basically, a mixed bag in the retail sector. but again, if we hold here, we could see a record close for the s&p right now. we'll see whether or not it happens. again, really low volume here. >> those teenagers are dragging those retailers through the mud this year. >> they're a fickle bunch. >> they are. >> and we're keeping an eye on where they want to shop, it's a full-time job, certainly. >> it is. thanks, mary, very much. we had that seven-year note auction. "b" minus grade from rick. let's see how it's doing post-auction. >> reporter: hello again, sue. if you look at the aforementioned seven-year, if you squint, we did see a subtle climb of rates. close to unchanged. let's look at the more frequently traded ten-year part of the curve. we're down a basis point. actually, we just traded 2.44.

we're unchanged on the day. open the chart up. these are yields we haven't seen since june. but an important safety tip. we're going to be comping back to june for a long time because the low yield in june was down 2.07. we're currently at 2.44. you know what? if people are amazed at the recent drop, they would be much more amazed if we started comping to february or march any time soon. the last chart, this is a march 1st chart, ten had of year minus boons. watch this chart. i think it helped predict lower interest rates. it may be reversing a bit from a 9 1/2-year wide. tyler, back to you. it is one of the most coveted areas of drug development today. immunoonolo immunooncolo immunooncology. how do americans live like this? one major telecom ceo says he can't believe how bad internet access really is here in the united states. what are we missing out on? and google saying it's sorry for not being as diverse when it comes to hiring.

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welcome back to "power lunch." two biotech stocks are heading in opposite directions thanks to a jpmorgan call. the firm is upgrading biogen citing upside potential from the company's multiple sclerosis ms tr franchise. up about 3%. now, cellgene is moving lower. jpmorgan downgrades the stock to a neutral, saying the company's growth drivers are largely reflected in the stock already. it also said biogen has a better pipeline. cellgene down about 1%. back to you. >> thank you very much. wall street and the pharma industry gearing up for one of the biggest events of the year this weekend. the big topic on the agenda, immunooncology. our biotech reporter is here to explain, and you're going to

chicago this weekend. >> i sure am. that's where the year's biggest cancer conference will start tomorrow. data is bound to move stocks. analysts say the big key will be immunotherapy. so how do they work? immune knhimni best for attacking cancer, multiplying them, and then reintroducing them to the body to fight that cancer. another technique takes t-cells out of the patient's body and recodes them to be better cancer hunters. then returns them so they can find and destroy cancer. other immunotherapies are medications patients e es take infusion. others help immune cells see the enemy, revealing invisible cancer cells so immune cells can identify the target and attack. so companies working in this space include bristol meyers, merck, novartis and astrazeneca.

remember, astrazeneca's pipeline was one of the big reasons for pfizer interest in it. also companies like incite and celldex. the drugs could total $13 billion in peak annual revenue. this weekend will give us another glimpse at the promise of these medicines. >> meg, have a great weekend in chicago. great place to be in the summer. sue, down to you. >> yes, indeed. well, you've just heard about some big medical breakthroughs. now let's find out what's happening in the world of start-ups from venture capitalist john lilly who's led the firm's investments in instagram, dropbox, tumblr and many others. he joins us live from the code conference in california. welcome. nice to have you here, john. >> thanks for having me. >> i know that there are some great conversations taking place out there. and one of them involves the internet. you wanted to talk a little bit about the internet of things. tell me what you mean by that and how the internet is changing from what it is now to what you think it will become.

>> sure. i think virtually all the conversations here about the internet at some level, i think that as we move from a pc world into a world where we have our phones with us all the time and increasingly are moving to this world beyond that where they're competing with us all the time, the walls, the lights, competing in the networks around us. the control is how do we control them, interact with them, interact with the things that are physical in our world, the lights and our music and sonos and that kind of thing. also the services around us like uber to get a lift, sprig to get dinner on demand. the question is how do we control things in realtime all the time. >> yeah. you know, sprint's ceo just recently really took america's internet to task, saying the service is horrible. do you agree with that? is web speed so much more behind the rest of the world? do you find that when you travel around the globe, or not? >> i think that's obviously true.

i think that cell phone in the subway in london is better than my data rate in my house. in palo alto right next to stanford. we also have improvements and investments we need to make in the infrastructure for sure. >> do you think it can be addressed? others say it's a big problem that's going to take a long time. >> i think it is a big problem and will take money. obviously, there's 300 million, 350 million people in the u.s. everybody's trying to live more and more on their phones, on their laptops and tablets. i think there's a real market. i think people will see greater and greater investment. i think we already have. >> you mentioned silicon valley, palo alto where you live. i'd like to turn you to the story that google broke yesterday which basically talks about the lack of diversity in silicon valley. you know, i applaud them for basically coming out with a groundbreaking disclosure, saying that silicon valley skews to the white male and that a number of women and minorities

are not prevalent at these big firms. and it just seems so counterintuitive because silicon valley is so innovative and forward looking. why do you think that problem exists? >> well, i think it exists in every initiative. i think we don't have enough women leaders that are visible. i think it's changing. the ceo of gm, hp and yahoo! it's changing. what's particularly admirable about what google did is they said, look. here's the data. everybody can look at it. will be as disclosive as we can. we feel like we need to make progress. and by us making progress and talking about it and talking about the struggles we're going through, we can help others make progress more quickly. that's very true to silicon valley's nature. which is you're always standing on the shoulders of giants. you're always helping each other, networking and trying to make it better. what's special about google yesterday is they just said we understand there's a problem. we know it needs to get addressed. and what we're going to do is

start talking about it in a way that's as open and vulnerable as we can. i will say obviously in technology fields over time, they've historically been more male and more white. i think that that can change over time. and i already see it happening at stanford. you're seeing more and more computer scientists who are women, more and more designers and ceos of start-ups that are women. i think it's changing. i think it's not changing fast enough. i think the google's disclosure will help that. >> let me turn you to an issue of security, you know, on the back of brian williams' discussion last night with edward snowden. it brought to mind issues with hacking, and there recently was an article about iran being able to hack into facebook accounts, if you will. that's a pretty serious thing because so many people do have those accounts. is there any way to stop that type of activity, or not? >> well, i think it's an ever-escalating war. i think that people -- especially silicon valley companies, they know that our

vitality depends on security of data, security in the cloud. and so people are working on it more and more. i think that the nsa disclosures by snowden haven't helped anybody. they haven't helped the u.s. they haven't helped technology companies. and the things that the u.s. government may have done to make encryption less safe, that's worrisome. and i think it's worrisome for a very long time. i think the truth is, data online is often safer than data in the world is. you hand your credit cards to waiters and staff all the time. they can just scribble it off. online is often safer than offline, but that doesn't mean it's not a problem and it doesn't mean we shouldn't address it more and more. >> john, nice to spend time with you. thanks so much. we'll let you get back to the seminar in a beautiful part of the world. john lilly, greylock partners. ty, up to you. >> very interesting conversation. interesting guy. this is one hot tech stock right now on pace for four straight monthly gains. up 25% in that time. can you guess which one it is? plus -- >> the city featured in today's

"power house" is the birthplace of actor robin williams. daily deals website groupon is headquartered here. and it's home to the world's first skyscraper. can you name that city? mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. in a 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.

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options and futures. optionsxpress. open an account today and get a $150 amazon.com gift card when you call 1-888-330-3137 now. optionsxpress by charles schwab. every week i love this feature. we call it the "power house." we gave you some hints about the city or the general area where we're going to be. the birthplace of robin williams, home of the world's first skyscraper. can you name that city? i just said it, chicago. she's going there this weekend. with us is millie rosenbloom. millie, welcome. good to have you with us. up 2.2% year over year. properties on the market, average 68 days. and there's a 2.7-month supply of inventory. today where you're going to take

us, millie, out to naperville which is a suburb out there. very nice place. have some friends who live out there. first listing, 719 -- i guess it's called knoch knolls road, $490,000, $9500 in taxes. looks very nice, millie. >> it's a three-story home. it has a very open floor plan. large kitchen, family room combination. beautifully finished, and it's close to the metra. >> close to the metro. do we have interior shots of it? on a nice piece of land. >> we do. >> how old is this house? it looks relatively new. >> ten-year-old home. >> ten-year-old home. look at the finishes in there, folks. $490,000. you can live well in naperville. let's move on to 4623 sassafras lane, $750,000, $14,500 in taxes. 4,400 square feet of living space. that, too, looks awfully nice,

millie. >> it's a beautiful home. it has a very open floor plan also. a two-story living room and foyer area. it's a patterman-built home. it's part of a community called ashwood club. and it has four seasons entertaining. sports court, volleyball, tennis, swimming pool. and it also has a private school on its premises. >> love it. power house of the week, 1040 caroline court. $1.4 million. $27,000 in taxes. fo 4 beds, 4 1/2 baths, this is a lot higher price than the last one we saw but doesn't seem to be that much bigger, millie. why does it command such a high price? >> location, finishes. plus that home actually cost $2.1 million to build. and you can buy it today for $1.4 million. it's the finishes but also it has an outdoor area that cost $200,000 to improve.

it's 1800 square feet. beautiful patio area. built-in kitchen. fire pit. grill. >> oh, my, look at that closet. millie, that closet is -- my wife would go crazy! i'd go crazy in that closet. millie, thank you very much. >> you're welcome. >> we appreciate it. let's go to dominic chu, "market flash." >> check out what's happening with netflix at session highs. a wide-ranging interview we saw on cnbc. the ceo at the recode conference made upbeat comments about the company's business. among those comments, that original programming is doing well and he expects international expansion to be successful. that stock currently up you see there close to 3% and well off of its recent lows, sue. back over to you. >> all right, dom. we want to take your attention to the bottom of the screen where ford is announcing a series of recalls today. phil lebeau is working that story and he'll join us in just a few moments. they're recalling 915,216 model years '08 to '11.

and i missed the model, but we will get that for you when we come back in just a moment. and phil lebeau is working the story. back in a minute. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant,

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narrator: these are the skater kid: whoa narrator: that got torture tested by teenagers and cried out for help. from the surprised designers. who came to the rescue with a brilliant fix male designer: i love it narrator: which created thousands of new customers for the tennis shoes that got torture tested by teenagers. the internet of everything is changing manufacturing. is your network ready?

welcome back to "power lunch." i'm phil lebeau with breaking news from ford. two large recalls being announced by the company. let's start first with 915,000 2008 to 2011 ford escape and mariners. mercury mariners are being recalled. fad, another 195,000 2011 to 2013 ford explorers are being recalled. in both cases, with both of these recalls, there are potential problems with the power steering that could result in the vehicles losing power steering. so again, ford recalling more than 1.1 million vehicles due to potential issues with power steering. guys, back to you. >> phil, thank you very much. i know that story is going to have more developments later in the day. and phil will be working it. apple is high on the back of its $3 billion deal to buy beats. apple shares at their highest level since october of 2012. and on pace for four straight months of gains, up 25% in that time. abercrombie & fitch shares

soaring. the retailer posting a smaller than expected loss. revenue also topping estimates. and dish network joining the bitcoin bandwagon. the satellite tv operator says it will begin accepting bitcoin payments from customers in the third quarter. let's go back up to headquarters and dominic chu with a "market flash." >> we're checking out alcoa shares which are at session highs. the company said it started work on a $100 million plant in indiana to meet rising demand from large commercial aircraft makers. the plant is expected to be completed by the end of 2015. it's going to create about 300-plus jobs by the year 2019. again, alcoa shares, you can see, up about a percent at session highs, sue. back to you. let's check the markets. with the dow jones industrial average up about 10 points on the day, transports are down after hitting a record high. s&p may be on pace for a record high close. and that will do it for us on "power lunch," ty. >> thank you very much, sue. first let's see what's coming up on "street signs."

>> hey there, ty. new offers, new structures. now pimco in a newly created role of chief economist. we're going to be talking exclusively to paul and also to him pimco's bill gross. in order to keep down gasoline prices and valiant's $150 billion mistake, at least according to herb greenberg. all of that at the top of the hour. make sure you join us for "street signs." hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

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ink from chase. so you can. stocks up again. interest rates down again. and an investing legend is back again. hi, everybody, big show. pimco's big gross is here along with a name from the past who is back in the saddle once again. we're going to bring you ways to invest in the red-hot world of cybersecurity. and mandy, could the clippers really sell for more than $2 billion? >> that is our question. let's take a look at those markets. we've got the s&p mildly higher. another high for the s&p 500, by the way. the dow transports, yes, okay, slightly in the red but it did also hit a new high this