upl seeing upside. >> steph? >> chesapeake. chk. >> murph? >> doc? >> sun corps. canadian tar sands play. su. >> that does it for us. have a great rest of the day. watching crude here. $106 a barrel. "power lunch" picks up the story. "halftime" is over. "power lunch" and the second half of the trading day start now. >> full-scale war apparently has returned to iraq. rebels linked to al qaeda have taken the central part of the country and moving south toward the capital, baghdad. reports say many soldiers from iraq's army have abandoned their posts, dropping their uniforms, fleeing from the onslaught. that is video of their uniforms piled on the ground. the oil market is starting to react. finally it is up almost 3% this week. so how high can oil go and when will it start hitting the stock market? now also today, the semiconductor stocks.

this industry has been booming, up 36% over the past year. it is up 6.5 pk% in a month. today we will talk about making money in the market as we go through sectors that may have room to run. the bond side of the story with paul fabio mccully. he has a new look. the hair is clipped. i don't know about the goatee. he has a new note this morning in which he puts together i believe it is emerson canes and the singer, pink. anybody who does that has my attention. it's his first note since returning to pimco. first, though, to sue at headquarters today because, well, the traffic is still horrible getting into new york city from new jersey after a terrible fatal truck accident on the g.w. bridge. >> absolutely, ty, it was really an awful situation. the markets we're going to get to in a second. phil lebeau, he has breaking news for us. phil? >> reporter: this has been speculated about for some time.

tesla's ceo announced on the company's website that the company is going to open up patents for other automakers and others in the auto industry to use. he says this is part of the company trying to spur innovation and development of electric vehicles across the entire industry. musk saying in his blog post, we will not initiate any patent lawsuits against any competitors who, in good faith, use their patents to develop further technology for the electric vehicle and for automobiles in the industry. so there wyou have it, tesla opening up its patents for use by other competitors. this has been expected for some time. sue, tyler, back to you. >> thank you. it's a story that will develop throughout the day. i know you'll work it. to the stock market now which is moving lower again today. as a matter of fact, we're just off session lows. could mark three straight days of losses for the s&p which is down half a percent.

dow down 69 points on the trading session. look at the transports because oil is moving higher based on the iraqi worries. down 136 points right now. the nasdaq composite is off a half a percent and the russell 2000 is now down. dominic chu is with me and going to take a look at the best performing chip stocks though it's a down day today during this quarter because that's a sector that has really been on the run, right, dom. >> that's right. the second quarter hasn't been too shabby for the stock market overall but encouraging signs for fundamental investors waiting to do their homework here. some parts of market doing much better than the broader indices. the semiconductors, chip stocks. as an industry group, they're up 8% since just the end of march. that's a pretty hefty run, around double what the broader s&p 500 has done during that same time. among some of the biggest winners so far this quarter are company like applied materials. we haven't talked about them a lot. this is the company that makes the stuff that makes computer chips. now, it's up 8% during that time

from, you can see, a bit of a dip over the past couple of weeks and months and now we've risen to about an 8% level. it's a sharp bounceback after losing 13% in just april alone. so how about one of the biggest names out there? of course, intel which is up 9% so far this quarter. but look at this 13% drop here overall and then a nice rise again through the course of january through february and then now the rise. investors did buy that dip on this name and, of course, here's a stock that's really surged higher and just recently so. we're talking about broadcomm after it was considering strategic alternatives including a possible sale of its cellular chip business. helped shares surge 24% quarter to date. some of these stocks could be poised to enter the thirty-thd d quarter with a decent head of steam. and with intel it's a dividend story, a 4% dividend yield on that stock. >> thanks very much. this is an auction week. we a have breaking news.

i got a peek at the results and seems better than what we saw earlier this week. >> reporter: this one, if you were making a model of what a great auction would look like, this would be your model. a-plus on a 30-year bond auction. maybe it's because it's the longest guy out there, highest yield. much of the globe, whether china, europe, have a lot of questions. this was a buy. yield, 3.444. 4s are wild. lower yield, higher price. look at the demand side. 2.69. best since february of '13. it's a re-opening. indirects, 51.8. it's the best since feb of '06. directs, 21.8. the best since october of '13. dealers took a mere 26.5% of the auction. no matter how you sliced it, it was good auction and it most likely will spark a rally as some sometimes a good auction at

the end of the supply chain usually does. we're about ready to trade 2626 on a ten year which moved two basis points lower in yield since the results. >> i know you're a tough grader. you don't give out many a-pluses. >> i definitely don't. let's put it this way. i haven't given a politician an a-plus in about a century. >> that's true. but rick gushing over today's auction there. this is day one of trading for shares of mobile iron. the stock is up big. the company makes software that protects cell phones. live at the nasdaq with more on the stock. and the nasdaq at large. sima? >> good afternoon, tyler. that's right. the tech ipo market is definitely heating up. in fact, just speaking to renaissance capital, they were pointing out all a-tech ipos in may are trading well above their price. mobile iron focuses on creating software that enables employees to access work e-mail and data

on their own device. i caught up with the ceo, bosh tinker who says this is a fast-growing market as more employees go mobile. blackberry today announcing it signed a mobile payments deal with end stream to provide a secure platform for transactions between banks and their customers. an interesting deal there. the overall nasdaq, though, down about 15 points. that's due to the disappointing retail sales number, seems to be weigh on investor sentme eo eor. the nasdaq 500 is up about 1.5% due in part to big movers in the large cap tech space. hp, for example, goldman sachs writing that hp management have executed its strategy much better than anticipated. you're seeing hp, other names like broadcom, and qualcomm, xilinx moving to the up side. >> sema mentioned the pressure in the nasdaq. the dow has been falling throughout the day. right now it traded 7 5 points in the red. let's get down on the floor of

the new york stock exchange with bob pisani. it seemed who worsen as the president talked about iraq and it came back again. >> traders down here saw the president, said, look, he has very few options other to encourage the iraqis to have a political solution. there's not a lot of big effects on the major indices but ripple effects on different sectors. energy is up today. that's a pretty obvious pick here. no matter what you're looking at here, exploration, production companies, oil service companies like noble, the major oil companies like marathon oil, everything is up in the energy space today. that's a no brainer here. no brainer that the transports are getting hurt. not just the airlines like united and delta, but the truckers are also getting hurt. ryder, swift transport, some of the logistics companies involved are also on the down side. transports is another weak sector. think of what the opposite would be. think of another play,

alternative energy plays. solar stocks are doing much better. particularly chinese solar stocks today. renesola, yingli on the upside. what else would be hurt by higher energy costs? big commodity companies that use a lot of energy. they're on the downside. vale is on the downside. we'll have more in the next half hour. guys, back to you. >> look forward to it very much, bob. thank you. bertha coombs for a market flash. >> we're watching current green mountain near session highs and actually close to its highs of the year. continues to power forward. seeing some reports from traders saying that there's an awful lot of interest in call options. that is options that the stock is going to go higher. the 120 call expires tomorrow. the next activity seems to be at $135 for next month. the stock right now up better than 4.4%. back to you. >> all right, thank you very much, bertha. we have a real flashpoint popping up again in iraq. it is impacting the markets

especially oil. let's take a look at oil right now. if we could call it up, this week it is up. % 3%, by the way. wti trading above $106, hitting levels not seen since september 18th of last year. the big reason is this. a group linked with al qaeda is on a massive offensive. we've been track it for you all week long. knew now it appears the islamic state in iraq is 70 miles, just 70 miles from baghdad. the iraqi government is asking the united states to help stave off the attack. president obama clearly starting in the last hour isn't -- speaking in the last hour -- isn't ruling anything out. nbc news is broadcasting these pictures. those are iraq army uniforms. soldiers for the iraqi -- uniforms, they're abandoned their post basically, taking off their clothing to hide amongst civilians as the al qaeda insurgency advances. now, yesterday, they torched a

major oil refinery in iraq's main road leading from baghdad to the north. not far from saddam hussein's hometown. maybe you remember the name, tikrit. today iraqis in the central part of the country are fleeing their towns trying to get ahead of this onslaught. so things deteriorating there. morgan brennan is now looking at the u.s. energy companies that have been trying to build and invest in iraq. those plans, morgan, may need to change knnow. most of the oil is produced out of the south of the country. this is certainly a risk. >> most of the oil is produced out of the south of the country. let's take a look the some of the names. iraq has the fifth largest proven crude oil reserves in the world. many energy companies in the region. let's start with the integrated oil giants. blake fernandez says of these companies, exxonmobil has the most exposure, about 3%. others include hess, marathon oil, occidental petroleum, murphy oil.

looking at these stocks, they're all up today. here's why. iraq still only accounts for a small percentage of their overall production globally and not a lot of capital exposure because it's tied to existing oil fields that don't require significant investment. now, the area that could be most troublesome is kurdistan, where companies have been investing in exploration, but morningstar analyst, alan goode, says higher oil prices from disrupted production would actually still be overall a good thing for these oil giants. now, could be a different story for the oil fields services companies. halliburton, schlumberger, weatherford, could eat into the companies' bottom lines. it happened before. baker hughes reduced its fourth quarter profit by $80 million after operations were suspended at a facility last year, but for now those stocks are also benefiting from the higher oil prices and moving up today, too, tyler. >> cuts both ways potentially.

morgan, thank you very much. as oil rises you know what happens to airline stocks. they fall. let's take a look at a board of airline stocks as a group. you see american, delta, united, jetblue, and alaska air all with significant declines. delta, more than 6% as is americanairlines and united. the other two with somewhat lesser declines. sue? ty inflation has been vanquished and rates will be low. that's the report to pimco investors since his return to that firm. first on with the power lunch" we're pleased to welcome back paul mcculley live from beautiful newport beach, california. good to see you, paul. >> good to see you, sue. >> let's start with this note. you spent a lot of time talking about well anchored inflation expectations. tell me about it. >> i think the grand war against inflation that volcker started in 1979 was won at the turn of the century and for the last 15 years, inflation has been

incredibly absent. we've had our cyclical ups and downs but when you look at it on a chart, i think we achieved the promised land, price stability over many cycles and right now we're a little bit below where we'd like to be, but this whole notion that the fed has to always be fighting an inflation war is what i'm attacking because we won that war. >> does that mean that rates will stay low longer than, perhaps, the market expects? or a lot of investment advisers expect? i mean, the whole theme going into this year was race rates going to rise. that hasn't played out. >> i think rates are going to be lower than what historically is the case, but i think equally important issue is that the fed's cyclical, how they engage to try to cyclicly fine tune the economy will be changed because the old doctrine of opportunistic disinflation which

had its companion strategy, preemptive tightening, is dead. there is no reason for the fed to be engaged in preemptive tightening. i think the fed will tighten next year but it's not trying to preempt an increase in inflation. in fact, the feds told you they won't hike until after inflation has moved up closer to target. that is a profound paradigm change. >> and what does that mean, then, in terms of when they do decide to tighten up? how dramatic do you think it will be? >> twhactually that's another p of the argument, too. it's a quite complicated piece i guess in retrospect. >> it was. i read it and it was complicated. see, you've been gone too long. had too much time to think, paul. >> actually my new job here is to think, write, and speak. so, therefore, i guess i will do a lot of thinking. but not only is the doctrine of preemptive tightening dead, it's

that i think we've had a structural reduction in what we call the neutral real fed funds rate. and prior to the moment in 2008, we viscerally thought as a marketplace, because it's impe d embedded in a taylor rule, that a real fund rate would be 2% real and 2% inflation for 4%. i think in this new world that we're living in, we will still ultimately get the 2% inflation because i think the fed will achieve its target. so you can put that into your short-term interest rate, but i think you'll put in something close to zero for the real rate. so the new reality, having won the war against inflation, escaping the liquidity trap, is no preemption on tightening and a stopping point in the neighborhood of 2% nominal. >> what does that mean, then, for the equity market? because the big debate down on the floor when i go down there every day is are we overvalued or are we fairly valued? >> i think it means that the

stock market is fairly valued. there's a range around fair value, of course, and you move around it cyclicly. i think a structural reduction from 4% to 2% and the neutral fed funds rate has a profound impact on bonds and, therefore, on stocks. because bonds are the discounting mechanism for stocks. >> for stocks. right. >> so i actually don't have a problem with either bond valuation or stock valuation. now, if i still believed in a 4% neutral fed funds rate, then sell everything that you can get your hands on, but if you believe in, too, the markets are in a fair zone of valuation. >> all right. stay with us, paul. we're going to take a quick break, but i want to ask you about the story that the bond market's been telling us, specialical ical specifically the ten year, based on what the stock market has been telling us. amazon taking a hit.

retail giant launching its streaming music service today. will it really sing with consumers? the one big thing you need to know about that. plus, twitter shares flying. the guy the company was hoping would drive growth is out the door. who was he? now what? julia boorstin is in l.a. for us. julia? >> absolutely right. twitter's chief operating officer is leaving and company isn't replacing him. i'll tell you why this is good news for investors coming up after the break. friday night, buddy. you are gonna need a wingman. and with my cash back, you are money.

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welcome back to "power

lunch." take a look at the dow jones industrial average heading to session lows as the fighting in iraq escalates sending oil prices higher today coming off wednesday's 102-point decline. it would be the blue chip's worst two-day stretch in a month. the dow currently at 16,767, off 76 points. leading the way lower, caterpillar, home depot, walt disney, cisco, verizon, all off better than 1%. back to you, sue. >> thank you very much. we're back with pimco's chief economist paul mcculley. i posed the question in essence, if stocks are fairly skr lly va where does that put bonds? can they move in tandem? >> i start with the bond market and go to the stock market. i don't think the bond market can go a lot higher from here in price because i think that it's priced almost to where the fed's

terminal fed funds rate will be which is 2%, so i think the bond market is fair, and therefore, it makes valuation on the stock market fair, but the issue of whether or not the stock market can go up is a function of underlying growth in the economy and earnings, and so the extent that you're a believer that the economy is escaping from the liquidity trap, there's upside, i think, for stock on the back of earnings. but from a pure evaluation perspective, there's not going to be a lot more support on the upside coming from the bond market for the stock market. >> all right, paul, great to see you again. welcome back. >> great to see you. >> talk to you soon. >> thank you, appreciate it. sue, with us from washington, general barry mccaffrey. president obama, general, welcome, saying today regarding iraq that all options are on the table. iraq wants help. if the u.s. gives them help. general, welcome. what would it be? what could we do? >> very little. you know, at the end of the day, it's simply astonishing when you see a military force start

unraveling. they lose confidence in their own generals and their fellow soldiers. there's 270,000 people in the iraqi army. there were 30,000 troops at mosul, and they started to walk away. so we can do intelligence. the cia can stay in there. we can do a lot of predator drones, but we don't have people on the ground. we won't be able to distinguish friend from foe. we won't want to kill civilians. this is an iraqi problem. and after ten years, and, you know, $600 billion, they got to fight their own war. >> who are these insurinsurgent where did they come from and what is their objective? >> yeah, i think one of the big questions is, is there really a nation of iraq, is there really a nation of syria? most of these things are conglomerates stuck together by the brits in the aftermath of world war i, world war ii. there's no real geographical -- it's a minority population of iraq is sunni-muslim. they ran the country where their boot on the necks of the shia and kurds for a couple

generations. now that war, shia/sunni civil war has spread internationally. iran, syria, iraq. the saudis, the egyptians supporting the sunni side. this is a mess and we're not likely to positively influence it with military power. >> general, always great to see you. general barry mccaffrey. we'll certainly be talking to you again soon. thank you. let'ses move on to twitter. a big stock to watch today. let's take a look at its shares. there you see it up 85 cents. that's about a 2.5% move. the person in charge of the social media giant's growth, its chief operating officer, is leaving. cnbc's julia boorstin is in los angeles. the stock is up. you say this is good news. why? >> tyler, investors seem bullish that ceo ali rowghani's departure will streamline twitter and help accelerate growth. more key executives reporting directly to him. twitter is under pressure to

grow its user base. sources tell me rowghani is leaving because he and ceokoslow had a disagreement. the disagreement started in april when twitter hired a new vp of product to report directly to to koslow. twitter shares jumped the most it had since its ipo day. the company hired a new head of engineering at the end of may, also to report directly. now having koslow oversee more parts of the business is to designed to make it easier for the company to make changes quickly and quickly grow its user base. though the company has no plans to replace rowghani, it's not unusual for tech and internet companies to not have a c.o.o. look at google, apple, yahoo!. they don't. today's management shakeup doesn't impact the company's advertising strategies. it's important to keep that in mind. its head of revenue, adam bane, has always reported directly to koslow. rowghani tweetsed thanks to each

other today making a public show that the split isn't on terrible terms. sue? >> thank you so much. appreciate it, julia. to the housing market and the numbers are coming in from may. diana o li diana is live in washington and ms. more details. >> we don't get the national numbers until the end of the month but the local sales numbers are trickling in. the headline is a spring slump and a charge that weak winter sales had nothing to do with that polar vortex. >> it was never to me a winter weather story. it was always an economic fundamental story where we as an economy lacked the jobs to support a vibrant housing market. >> now, home sales in the 20 major metros covered by red fin fell 10% in may from a year ago despite a 9% jump in the number of homes for sale. other reports coming in from the houston realtors. sales down 5% from a year ago. and that's the first drop in sales in that very hot market in three years.

charlotte realtors report sales in may down 6.5%. seattle down 5%. southern california home sales down 15% from a year ago, according to data quick. now, a monthly survey of real estate agents found a dramatic drop in buyer traffic in may from april and a year ago. the agents said after all the finger pointing at winter weather, confidence among buyers has taken a step backward. now, higher home prices and weakened affordability are to blame for that. and while more homes are coming on to the market, it's not nearly enough to really ease those prices. tyler? >> all right, diana, thanks very much. we have much more on the markets coming up. we're near the lows of the day for stocks across the board. the s&p 500 down 10 points. industrials off by 78. nasdaq down 30. transports as you would expect, the biggest decliners as oil prices rise. more "power" in two minutes.

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the political unrest and fights in iraq has given a boost to the gold market in the close. up $13 on gold. 1% advance. silver market up as well. palladium giving back. it's had a big rally. palla palladium and platinum. dramatic percentage moves there. bertha coombs with the market flash. >> you're seeing the flight to

safety, that's going to tell you stocks aren't doing well. the nasdaq is at session lows trying to cling to fifth straight weekly gain, currently trading down fractionally about .7%. leading the way lower, lumina followed by amazon, expedia, apple, and fastenal. the street not terribly impressed with the streaming radio service. >> i think you absolutely right, bertha. thank you. let's check in on the bond market. had a big 30-year auction that rick santelli basically gave an "a" to. how's it doing post market? >> reporter: whether the "a" for the long end or the sequential weakness established the last several months on retail sales, look at these intraday charts, whether it's the 5s, 10s, 30s, big yield drops. now, i also put another chart in there. i wanted to give four that looked exactly the same. it's the dollar/yen and does look the same. i have to tell you, we've been watching this a long time, sue, so traders, certainly looks like the last three, four weeks you're not learning by watching

the dollar/yen. they're following the interest rate complex. at least that's our take for now so we want to continue to monitor, of course, how this guide gets digested with tomorrow being the last day before the ultimate settlement. tyler? back to you. >> rick, two things i've learned about my "power lunch" colleagues, rick loves the dollar/yen and sue the transports. one of mexico's most dangerous drug cartels extends its tentacles deep into the united states. a massive investigation involving big money, racehorses and a financial spider web. for the first time, the fbi is talking about it. but only to cnbc. here's andrea day. >> reporter: million dollar racehorses. >> mr. big time. a three-way photo for the win. >> reporter: private jets and acres of land loaded with champions. but behind all of this, federal investigators say some of the most vicious drug traffickers in the world. >> there's been an awful discovery on the side of a highway in mexico. dozens of bodies were dumped on the side of the road.

>> reporter: it's a case fbi special agent scott lawson's been working for four years. now he's letting cnbc in to the dangerous world of the los zetas drug cartel and its secret target. it was january 14th, 2010, in oklahoma city. with breeders lining up to bit on quarter horses. >> thank you, ladies and gentlemen. >> the horse sold for $875,000 and we were told that horse was bought for miguel trivinio. >> reporter: a record-setting price for an american quarter horse. what caught lawson's eye is the buyer. the leader of mexico's most feared drug cartel, the zetas. responsible for thousands of murderses and on the run from authorities. >> he keeps a log of the u.s. citizens he kills personally. >> reporter: he says the cartel was long known to be running millions of dollars worth of drugs into the united states and transporting the cash back to

mexico. >> one cooperator in this case, his monthly tab from dallas, texas, was $25 million for his cocaine shipments. >> reporter: what was his interest in the racehorse? >> quickly into the case we realized it was hundreds of horses worth millions of dollars. >> reporter: according to lawson, the zetas has turned to american quarter horse racing to hide dirty money. he says drug profits were being sent back north and invested in a legitimate business of training, racing and breeding horses. >> our case showed at least $16 million put into the american quarter horse association as a means to longer e lilicit funds from the zetas cartel. >> reporter: they enlisted miguel's brother, jose. he was working in the states as a bricklayer with no criminal connection to the zetas. the cartel used shell companies to buy horses and once a horse began to show promise, it was transferred to jose. that's jose travinio with his

horse, tempting dash. the horse, a clear winner. and jose's first million. dollar purse. >> a better bet than a -- >> reporter: with money flowing in 2011 jose bought this 140 acre ranch in oklahoma. moving in with his family and 522 champion horses. with jose in the limelight, c co-conspirators linked to the cartel stayed in shadows. the co-conspirators couldn't resist posing with jose and the winning horse. evidence like this helped agents seal the case. >> we were never intended to see this photo. that was the one time they were willing to let their guard down. >> reporter: here a brazen shout-out to the cartel from the winner circle. >> jose travinio's son and daughter are holding up the actual call signs as los zetas leaders. >> reporter: investigators had what they needed to take down the operation in oklahoma. the feds seizing $28 million in assets including two jets, cash, the ranch, and champion horses

worth $12 million. >> wow. what a story there. now, taking down the top leaders of the cartel was as you might expect a multiagency effort. involved the fbi, the irs, dea. the case is still going on. so far, ten cartel members have been convicted including jose travinio who has been sentenced to 20 years behind bars. his brother, miguel, is in a mexican prison but is still wanted by the u.s. sue? >> wow. that's some story, ty. all right. it's been called the air b&b of the retail business. where small businesses can rent airspace pretty much anywhere in the world. plus the power house. the city featured in today's power house is home to the nation's largest airport by area. a two-time host to the democratic national convention. and the only city to turn down the olympics. can you name that city?

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welcome back to "power lunch." stocks slumping midday. the s&p 500 at session lows. leading lower, a couple

airlines, delta and southwest with oil prices hired today followed by game stop, car max and ww ranger. now to sema mody. >> bertha, we're looking at the nasdaq composite currently at session lows. breaking 4,300. a key technical level that traders watch. it started with the weaker than expected retail sales number. add to that heightened tension in iraq resulting in some traders taking money off the table. definitely a cautious wait and see mood if you will on wall street. that's what i'm hearing from market participants that i'm speaking to. a lot of notable losers on the nasdaq 100 including illumina, the worst performing stock on that index. back over to you. >> okay. thank you very much. let's get more on the trading action. we're down at the lows of the day down about 93 points. so with us, bob pisani and cnbc market analyst, kenny. i have one minute because we've had so much breaking news. kenny, what do you make of the market today? how much of this is linked, perhaps, to the president's

statements about iraq? >> i think it's linked to that, i think it's linked to the weak macrodata today and linked to yesterday's weak data and political news. it's a catalyst, right? it's giving traders especially, not even the investors, traders a reason to take some money off the table. >> we've been weaker, by the way, since the words leaked out that the iranians may be getting involved in iraq. bear that in mind. one piece of perspective on oil, you know how much iraq makes every day? 3 million barrels. you know, kenny, how much the united states production every day is? 8 million barrels and growing by 1 million a day. we are becoming one of the biggest exporters, producers, in the world. hopefully it will be exporting as well. perspective on the iraq situation. not saying it's not serious. >> right, but oil at $105 a barrel is certainly also not going to help. >> if it goes up to $125, it's definitely going to hurt. >> thank you, guys. appreciate it very much. ty, over to you. let's talk more, sue, about what's going on in iraq. fighters linked to al qaeda taking control now of saddam hussein's hometown of tikrit,

moving within 70 miles of wgd baghdad. iraq asked the u.s. for help. president obama says all options are on the table. oil, meantime, is as bob and kennedy pointed out, is on the rise. jackie deangelis who spent time in the middle east is live with oil traders perspective. >> good afternoon, tyler. we're talking to alan harry. let's talk about the prices we're seeing now. $106. how high could we go? >> i'm thinking $112 to $114 before everything is over. >> how soon do you think that could happen? >> i think it's going to happen within the next two to three weeks. >> we saw little action in the equity market today to the downside. how high do we have to get in terms of the oil price before we hit the u.s. market? >> has to break 110 before people say, wait, this is going to take a toll on the economy. >> last question, talk about the consumer. gasoline prices up high today. how long before this starts to hurt at the pump? >> unfortunately, it's going to keep hurting and probably going to hurt for the next two, three months. we're going through the driving season. if we break the 110 level, it's

going to raise the price of unleaded gas. >> we'll be watching closely. back to you, sue. >> thank you. hours before the world cup begins, new problems popping up in brazil. this is exactly what the association didn't want and what brazil has feared. we're back in two minutes' time. financial noise financial noise financial noise

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and we give music creation for the masses. ♪ ♪ just hours before the first game of the world cup in brazil between the host nation and croatia, a large-scale protest has erupted. this is not what brazil wanted obviously. people hitting the streets to protest spending on the matches and stadiums rather than social projects like health care and education. check out shares of restoration hardware jumping today by 13.5% to 81.o 4. big earnings up some 200%. speaking of big, check out the catalog. look at that. give you some perspective on that. listen, it weighs 17 pounds. really? 17 pounds. i wonder what the postage is on that, ty.

>> it took about four seconds for the sound to reach over here. >> i know. beautiful catalogs, though. >> we got it at home. it's crazy, man. it's a doorstop. >> doesn't fit in the post box. >> no. all right. "power house" time. we've been giving you hints this week. the most bear in the country d and -- what's not to like? can you make the city? denver specifically. back with us is larry, a broker with the kenwood company. it's always a hot market in denver with larry. let's go to our first listing in lakewood. 14901 west warren. listed at $685,000. $3,400 in taxes mind heart bleeds at that low tax. four beds, four bathbaths, near 4baths, nearly 4 4 4,400 of square footage. >> it's located in saltera in

lakewood, sits at the base of the rock ty mountains, gorgeous italian style community. >> the median price is a little over $300,000. this is obviously a step up from there. you're paying for a lovely neighborhood and place with all the trimmings. second listing, 12394 west auburn. $775,000. taxes, $5,155. five bedrooms, five baths. three quarter bath. what is a three quarter bath, larry? >> it does not have a bathtub. >> just showers. i don't need the tub. tell us about it. >> this is listed by kentwood city office, jan nelson, steve jones. located in the bear creek country club area. backs right up to the golf chorus. has beautiful views of the foothills. the kitchen has even been remodeled in this one. it's got hardwood floors, gr

granigra granite, stainless appliances. everything a family could want. >> power house of the week, 2 117 south juniper, $1.45 million taxes. just 9,000 bucks. five beds, 4 1/2 baths. 6,000 square feet of living space. tell me about this one and why it's such a choice property. >> this is truly a custom home listed by ryan penn also out in saltera. it's actually a tuscan estate. it has every upgrade and extra you could possibly want in a home. it even has a front yard courtyard and a rear deck that faces the rocky mountains. our purple mountains imagimajes. >> look at that. i want to be there right now. right now. >> let's go to the wine cellar, tyler. >> always great to see you. have you back soon. sue, over to you. >> all right, ty, thank you very much. triple digits on the dow jones industrial average, off 101 points.

new low for the trading session. that's sent the money into the bond market. take a look at the yield on the ten year note. we're watching the flight to safety, bertha. >> yeah, that seems to be the momentum going on this afternoon, but speaking of momentum, some of the momentum stocks today are moving lower. priceline, netflix, amazon, all are down between 1% and 3%. as we're seeing folks move out of those momentum names and looking for little bit of protection. little cover today, sue. >> all right, talk you, bertha. call it the air b&b of retail. renting a store. a new way to get small businesses in the mix of the rapidly changing industry. the co-founders of store front are here to explain that right after a quick break. stay tuned. means keeping seven billion ctransactions flowing.g,

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you might call this the air b&b of the retail space. small businesses are using to set up popup shops around the world, anywhere from one day to several months. the co-founders, eric, and tristan join me now. i wish i could be down there at the nyse to meet you guys personally, but unfortunately the traffic did not allow that today. so it's great to have you here. eric, let's start with you. tell me how this works.

>> sure. store front is a marketplace that connects brands with retail space, so if you're an e-commerce brand or maker that makes candles out of your house, how do you find retail space instead of a store for father's day which is coming up this weekend, right? how do you do that in an easy way, low-risk way? we have a website that connects those brands with those spaces and in a matter of minutes search for your space, submit your request and payment, and be done in an hour and set up your store the next day. >> and tristan, i would think this would really benefit those who have a niche type of retail product that they want to sell. or an artist or designer where you don't want to get locked into something long term that might be costly because you're selling to basically a niche audience. >> yeah. 100%. artist, designers, people selling really unique products. it's a perfect fit for store front. it's something that you want to have a tactile experience with. and these artists, designers, brands can go to different parts of the city at the right time,

right place, test out different neighborhoods and all for a much lower cost than a five or ten-year lease. >> eric, how do they get out to their audience or their consumer where they are and how long they are going to be? is it through social media? do you help them with that? >> sure. what's great today is, like, all the tools across starting a business have become easier and less expensive. if you need a pos system, two to square and get that in a matter of minutes. if you need marketing services, you've got twitter, tumblr and youtube and share, i'm going to be at this store for this weekend, come by, say hi to the founders and have the tactile experience with the products. >> tristan, in general, can you give me kind of an idea of how long your clients tend to rent the space for? or maybe there isn't, you know, a hard number on that, but give me an idea. >> yeah, yeah, so we'll see someone renting a street, a street fair, a popup shop or trunk show for a matter of days,

all the way up to three, four months during the holidays. >> very cool. thanks, guys. best of luck to you. i'm not sure you'll need it. you're already doing really well. thanks a million. appreciate it. >> thanks, sue. >> ty, over to you. all right, sue, the top stock gainers on this down day when we return. first, let's see what's coming up on "street signs." >> hey there, tyler. tesla's musk is giving away their patent, so, quote, the world will all benefit from a common rapidly evolving platform. sounds good or crazy? we're going to debate that. plus bickering at the top of lululemon spelling warning signs for the stock maybe? amazon jumping into a very crowded music streaming scene. will they disrupt the sector or barely make a ripple? lots of things coming up top of the hour, guys. make sure you join us for "street signs." kid: hey dad, who was that man?

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all right. let's take a look at the markets at this point in the trading session. that is the low of the day. we're down on the dow. we're 112 points. much of this apparently is being linked to the continued unrest in iraq. and we'll talk more about that in a moment. s&p 500 is off almost a full percent. as is the nasdaq composite. that sent the money into the ten year note.

a one-week low on the yield of 2 2.581%. there are winners. green mountains of course, brenda highlighted earlier up about 4%. diamond offshore is up 3.29% or so. noble corp up 2.79% on the trading session. >> look at that last little stat. the dow has not fallen for two days in a row since may 14th and 15th. this link to what's going on in iraq reminds me how sometimes risks can affect your portfolio from out of nowhere. >> absolutely. >> we didn't really know this was coming a week ago and now the declines the past couple of days have been tied to this. >> you know, you just wonder, though, whether that wasn't what the bond market was signaling a couple weeks ago. >> perhaps so. >> when we had the yield moving down instead of up as everybody expected it to. and there are reports saying that iran is threatening to attack rebels in iraq if they come within a certain mile

radius of iran which would, of course, really complicate the situation. brent crude is up better than 2% now. something to watch as we egoi i the afternoon trading session. >> that will do it for "power lunch." this to yhave you in the buildig though it was due to a big traffic snarl. >> "street signs ""begins now. a tesla founder elon musk crazy like a fox or just crazy? a genius move musk just made with his patents. plus another city falls in iraq as iran now has reportedly sent troops into that growing civil war. apparently the government may have to take a mulligan on phil mickelson. did they completely botch the alleged inside trader investigation? we'll dig in, mandy. we kick it off with the big