>> el paso pipeline partners, epb. >> "power lunch" starts right now. "halftime" is over. "power lunch" and the second half of the trading day start right now. we welcome you to "power lunch." it's the data, big day for numbers. gdp down 2.9%. durable goods for may were terrible. today on "power lunch" we're doing a black swan check forrious. yes, the numbers are bad but there's more on the horizon that investors need to know about before locking in their trade. despite all that bad news in terms of data, the markets are actually up today. the dow, the s&p and the russell all with pretty decent gains so far. also coming up this hour, we are going to talk about the fast changing american breakfast. cereal companies are very nervous they're not making money. but if they're not making money, who is making money? we'll talk about that. tyler is out. simon is my partner today at the

nyse. hi, simon. >> hey, sue. it's the economy. we start with the data, the final present on first quarter gdp is in and it's not good, the u.s. economy shrinking at an allual rate of 2.9% between january and march. that's the worst for five years. durable good numbers dropping like a refrigerator, down 1% in may. most of that drop in fairness is being blamed on lower demand for military equipment. cnbc.com's jeff cox is here. we call him sometimes our black swan. he sees danger ahead. jeff, you're saying basically people should forget the vix, which is obviously very low. there's a more sophisticated way of seeing the market. >> this predicts event that goes beyond what we talk about in the vix. it makes sense to buy protection against unusual things. what might those things be? i think there are three concerns that could go beyond the norm. i think gdp is number one. we saw that number, most

economists think that was an outlier. it's not going to be repeated. i had an interesting quote from ethan harris, bank of america, merrill lynch. he compared this gdp number to suarez biting somebody on the back in a world cup game. we think it's unusual, it's not going to be repeated. is that true? we'll see. the number two thing is the consumer. you look at rises food prices, energy prices, do they persist? if they do, the consumer is going to weaken. number three, the big enchilada here is inflation. when you look at the black swan index, we saw a spike the day after the federal reserve meeting last week. i think it's because traders are worried the fed could get behind the curve as far as inflation goes. there's your big black swan. >> the black swan index or the skew as they call it. for more on that, go to cnbc.com. let's pick up right there. investors don't seem too concerned about the drop in gdp.

the dow is up 26 points, the s&p 500 up almost 5 and the nasdaq up about 14 points on the trading session. bob pavloc is here and jerry castellini is with castle arch management. you expected this kind of economic downturn, you called it for us early on. what does it say about our recovery, economic recovery, going forward and, therefore, the markets? >> well, it's going to be delayed. 2013 had a wonderful year for the overall market, up 30%. there wasn't that much in the way of really underlying, strengthening fundamentals. the economic activity has to catch up to the market. that's exactly what we're seeing in 2014. now, as you said, i called the economic slowdown a cyclical slowdown that began in the fourth quarter and was only complicated during january and

february. january and february, just really made matters worse. you know, because of that, the data hasn't really been able to catch up to the market. >> right. >> it is catching up. it's doing it slowly. one that data eventually catches up, 2015 and probably the back half of 2014 is going to be a good year. and so you really don't want to focus too much on the gdp report today. it's already over and done with. you want to focus on the next six months to one year going out. >> breaking news flt bond market, the five-year note auction was today. rick santelli, how does it look? yesterday wasn't that good. >> no, yesterday wasn't that the good. right in the middle of the road, a curve to the right, a curve to the left. 35 billion five-year notes hit the streets four minutes ago. the yield 1.67. which coincidentally is where it was trading in the wi market and the ultimate bid side. quickly, everything is average. this was 274, a little high.

45% on directs, ten auction averages 52.5. the weak lunk was direx, this 9.3, a little up, a little down. we walk away with the seven-year tomorrow. also tomorrow, we get personal consumption, expenditures and the income and spending numbers which might gives us reason why yesterday's two-year note option was so spongy. back to you. >> i'll see you in just a little bit. jerry castellini, weigh in on the inflation issue. i know you've been positive on the market, putting money to work quite successfully. but when you look at some of those producer price index components, we've seen a spike. are you worried about inflation? >> if you worry about inflation, that's something to the level of maybe 5% or 6%. inflation has historically traded in the 2% to 4% range quite comfortably with stocks. while that's likely to start manufacture moving in that

direction, recent reports suggest that, that's not an uncomfortable period. people have worried about deflation and the impact that could have on global economy. inflation if we get some would probably be a respite for investors. it would probably help both earnings and valuations going higher. we don't mind seeing something on the order of the 3% to 4% range that the markets are more accustomed to. >> you know, bob, for people that look at the fact that the economy shrank at a 3% rate or look at inflation and say that doesn't seem right that the markets should be close to record highs, how do they protect their wealth? what do they do if they're unsure this isn't going to work out maybe so well? >> that's a difficult question to answer. because things are working out. there are some caveats that you have to be aware of, the geopolitical risk, the global growth risk. what's going to happen with

earnings going forward? really things are starting to move in the right direction. you can't really put too much money in the fixed income market because rates are going to be taken up. the market's going to take up rates long before the fed is. even like jerry was saying, inflation is a necessary -- necessity for this overall market. higher rates are going to be benefiting the banks. banks will benefit from net interest margins. that's going to spur on banks to make more loans. once you start to see more loans, you're going to see, you know, higher rates. you're going to see more capex spending. corporate treasures will put money to work. that will lift not only the financials, it will help the industrials and the tech space. better economic environment, a l be it slowly will help the discretionary space. more people will be able to buy first-time homes. >> if wages go up.

>> the best way to protect yourself is companies that have a high probability of expanding earnings at reasonable prices. we see that now in areas that have been. at least 20% growth in oil services, halliburton is another example of that. you could see this in apple even, who's at the bottom of its valuation chart over the last five years. and yet last five years, probably about to introduce a bunch of new products. there's a lot of places where investors can feel safe. >> perfect place to leave it.

bob, jerry, thank you very much. simon, over to you. sue, the crisis in iraq, syria and the jordanian border shows no signs of -- there is reports that they have struck sunni targets inside iraq. one report says scores of civilians have been skilled. secretary of state john kerry is in northern iraq visiting the kurdish president, urging him to keep iraq together. statements from the kurds, however, show there's no willingness to do that. the kurds are moving toward a de facto state of their own. in iraq itself, the prime minister malaki seems to be suggesting he doesn't want to form a more inclusive government, either. major news directly for the oil markets. the white house seems to be starting to clear the way for oil producers in this country to export for the first time since the arab oil embargo in 1973. clearly this could have major ramifications for drivers and for investors. jackie deangelis is at the nymex with what this means for oil

prices moving ahead, but first morgan brennan joins us. a lot of people will want to know if the united states has enough oil to do this. >> that's certainly a big question. we're cranks out oil. u.s. oil production jumped by 3 million barrels per day. that means we're producing 8.4 million barrels of oil per day right now, the most since 1988, and in 2015, that could jump to 9.2 million. in this case it's two companies, pioneer natural resources and enter price that have gotten permission to export as soon as august, oil that will likely go to asia. this exception is only for condensate, an ultra-light, very gassy form of crude that's plentiful in shale formations like in texas. it can easily be converted into jet fuel and gasoline, and in this case minimal processing, meaning it's classified as a

product rather than crude owl. so this doesn't change the 3-year ban on crude exports. that's important to keep in mind here. analysts say this could open the door for broader easing of that ban, but condensate is only a small portion of the u.s. production mix, maybe 15%, so while this move is significant, don't expect a large impact on traditional crude just yet, simon. >> an important point to make, morgan. jackie, what are they says at the nymex? >> crude prices are higher today, partially on this news, but other factors contributing as well. you know, what they are talking about here is what morgan said, the fact that this starts the conversation. it's a relatively small step, but it does open the door to left that 40-year embargo on exporting. of course geopolitics have kept these oil prices high. that's why this is a very hot

topic and very relevant point to the oil confession generally speaking. the impact of lifting the export ban a bit longer term, it's a bit counter intuitive. you would think it's a positive thing and it is for the global markets. it would bring global prices down when there's conflict abroad, it would help keep those prices a little more steady, but experts say it could raise prices here at home. the reason for that is because it would bring together, closer together the wti price and the brent price, which is the international benchmark. it would bring that spread closer in together. now if that's the case, rover it would impact consumers, where else? prices at the pump would be an issue. aaa reported that the national average, 13 cents higher already this year than where it was last year. traders are saying if these prices stay supported we could sigh another 10 to 15 cent price hike at the pump. of course that's going to trickle down and impact consumers. you also made a very good point

earlier today, which is the fact that even domestically we're having a very hard time getting our crude around. that could keep prices high as well, so a lot of issues to watch out for here. >> and just in time for the summer driving season as well. jackie, thank you very much. dominic chu has a market flash. >> how about the breaks news in the morning. the supreme court has spoken and it's not good for internet company aereo. justices decided that the business model amounted to a vials of copyright law. major outlets were all against aereo, including comcast, the parent company of this network cnbc. you look at cbs, disney, fox, comcast all higher. even big are movesings though, came up from companies that own local television.

all of which moved higher. back over to you, sue. thank you so much,dom. yahoo meeting with shareholders a day after news that the ceo overself-a meeting with bick advertisers. >> kicking off right on time today. marissa mayer took the stage to talk about her turnaround plan for yahoo, her focus on native 5ds and video. she's also talked about what she's accomplished, noting growth in mobile traffic, and the fact that t. mutual blr hosts 183 million blocks. she pointed to yahoo becoming a more appealing place to work. she also discussed her investment in engineering and content with new hires, including katy couric. mayer put spotlight on a new

app., what it calls an intelligent home screen to organize your app.s and make suggestions about what app.s you may want to use. another announcement highlighting the commitment to content, mayer said starting in july as part of the partnership with livenation, yahoo will broadcast one live concert a day. as expected, all of the proposals were approvedly shareholders electing four new members to the board, including lee scott. google is also holding a big meeting today, the developers conference in san francisco. the talk is of a new tv settop bock. josh lipton is live with more. josh? >> well, simon, you've got thousands of developers here at this conference in san francisco, another 1 million watching on live stream. you also, though, have some protesters who showed up.

there's not many of them, but they have instruments, they've got signs, and we have a sound bite from one -- no sound bite. so let me tell you what they protesters are about. not many of them, but you can see the instruments, one of them actually parent got inside the conference. what's going on ichb side, they're talking about android ware, the platform they -- they're saying they're aware that design is very important for wearables, so this would support both circular and square screens. about 19 million units will ship this year. that's the estimate. that would be triple what it was last year. sue, back to you. >> josh, thank you very much. appreciate it. we'll keep track of that story. ford shares up about 1.5%. it'sen a wild ride over the past year, the automaker looking for

a new boost with a new redesigned edge crossover. phil lebeau is behind the wheel for you in chicago. hi, phil. >> hi, sue. it's not every day when we talk about a redesigned vehicle we give it a lot of attention, because it happens all the time, but in the case of the edge, it's fairly important for a number of reasons form they unveiled it last night at the headquarters if dearborn, michigan. the edge primarily has a north american crossover vehicle. they will not be selling it in china and europe, for the potential for vastly improved sales worldwide is significant. when you look at the edge sales here in the united states, the older model, which many are saying, look it was time for it to be updated, sales this year down 8%, the industry overall up 4.1%. the edge will go on sale early next year, and even though we're seeing gas prices move a bit higher, the head of ford of the americas believe there's still strong demand for crossover utility vehicles.

>> that continues to be hot. consumers are adjusting to gas prices in the 3.80 to $4 range. as long as we don't see a major spike, we think consumers continue to be hot. >> where is the pressure point? he thinks it jumps another 50 cents, then there might be reason for concern. here are the sales through may for the big three. ford is the only one that's negative. you look at shares of ford versus general motors. next week is a big week, auto sales coming, so guys, this is one of those weeks where a lot of people will be watching june and see how much it slows down relative to may. we don't expect the same base, but we do expect to see a sales pace above 16 million vehicles. back to you. >> may was a real blowout. phil lebeau in chicago. ahead on the show, a walmart customer getting more than he bargained for after a scorpion pinked his hand while reaching into a box of bananas, details are coming up. plus this is turning into one bizarre story.

we are in new york to explain. >> hi, simon, what does a chinese tycoon serve hundreds of homeless people at a charity event? says my crusted tuna. we'll tell you more about what's going on inside, after the break. spokesperson: the volkswagen passat is heads above the competition,

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welcome back. shares of best buy are on the wriz, as it reportedly is looking for options for its china operations. the stores operate in china under the best buy mobile and five star brands. efforts are being undertaken to helple company better focus on its u.s. business. back over to you, sue. a walmart customer in pittsburgh got a lot more than he bargained for after finding a real live scorpion. as feeling what he described as a pinching favor, he flung it on the ground. "power lunch" mo to walmart earlier today and told us, we are committed to providing our customers with safe, quality food products. we alerted or food safety team, our supplies and our third party pest control provider, who

inspected the product and the store and found no other issues. walmart said fortunately the man wasn't injured and offered to pay for his medical bills. yikes, simon, yikes. >> that's okay, then. he's known for his crazy publicity stunts. today he's throwing a lavish feast for hundreds of new york's homeless. eunice yoon is live for the event. >> reporter: homeless people as well as volunteers have been gathering. nobody is quite sure what to expect or who he really is. now, he arrived a couple hours ago to this event. he said that originally he was going to be hosting 1,000 people and giving homeless people $300 each in cash, but because of security concerns, he was forced to pear back those numbers. now about 200 people are inside.

a lot of people have been asking who chen guanbao. he's probably best known here for wanting to buy the "new york times." in fact, he says he now wants to buy "wall street journal." i want to show you how he describes himself. he says he is china's moral leader, one of the best and most beloved role model, and known as quite an eccentric. that is his style of charity. sometimes he'll just break into song talking to strangers, he'll hand people $100 bills, but he says this is part of his main mission. he wants to change the way that america views china's wealthy people and that they're not just about wealthy lifestyles, but they actually should do and want to do more good. >> all right. eunice, thank you very much. it's nice to have you in new york, by the way. let's bring in our wealth editor

robert frank for a reality check on this gentleman. a self-made man, his family was very poor. >> yeah. >> i think he lost several of his siblings to hunger when they were younger. >> but it's many a little unclear exactly what his's worth or how he made his money. his first business venture was a device that could diagnose your body for illness. he tends to built stacks of dollar bills, very good at publicity stunts. he one went to taiwan and gave away red envelopes. whether hi's truly interested in philanthropy is the big question. there are a lot of people in china who do give a lot to charity, who get no attention. this guy, a lot of the chinese media are wondering how close he is to the chinese government, and in fact there's pledges that he's given that he's not made good on, according to some press reports.

so what's there, is my question, whether this is real. >> well, we will find out. thank you so much, robert frank. simon, down to you. shares of general mills taking a hit. a sarah eisen has that story, next. up next, a start-up giving dog tags an upgrade. >> it's a huge problem. >> will this prove to be man as new best friend? or will it be sent to the doghouse? stay tuned to vote with the power pitch panelists live. are you in or out on this week's start-up if get ready to start voting. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you

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my mom makes trains that are friends with trees. [ train whistle blows ] ♪ my mom works at ge. ♪ my mom works at ge. the numbers are impressive.y to new york state. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies

to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. we showed you the great white shark spotted off the new jersey shore yesterday. check out this one. they tagged it, cut it loose, one men also saying they saul an adult great white about ten feet long shortly before they caught that baby. stay out of the water. all right. time for our weekly series "the pow irpitch" when start-ups get

60 seconds to try to convince that they are the next best thin. so grab year mobile devices and give this an a, b, c, d, even an f. so start voting. here's the pitch. >> dog owners face two major problems. first every few seconds a dog is lost. second, the majority of our pets are overweight or obese. tagg pet tracker was designed to solve both those problems. here's how it works. when you're setting up your device, you create a virtual boundary around year house. if your dog ever breaches that boundary, you get an immediate alert by our free smartphone app.s, hen you get a live gps

tracking map that shows you where your pet is, so you can find him yourself immediately. the tracker also included an embedded activity monitor, which measures the amount of activity your pet is going, so you can see if they're getting 30 to 60 minutes of exercise per day as vets recommend. tagg the gps pet tracker is the only wearable that offers gps tracking and activity monitoring in one device. it's available in stores nationwide today. >> welcome to "power pitch." on our power pitch panel we have an droeia arden, former host of animal planet's "dogs 101" and named best dog trainer. sell is joined by nora. wendy diamond, lifestyle site for animal lovers. . and new yorker calls her the martha stewart of the milk bone

dish. she's joined by baby hope. >> and she focuses on entrepreneurs with big lasting consumer brandt. scott, you're in the hot seat. >> how did you set the size of the device? it seems limited in regardings to being used on smaller animals? >> it is the smallest device out there. we spent a lot of time and a lot of money building it to be as small as it is we're trying to make it as small as we can. >> what about putting a camera within this, so you can actually track your dog and now where the dog is going? >> that's a great idea. we're integrating with a lot of connect at home companies that have video systems already in your house. so there will be integrations available in the near future which would allow you to tap into the existing cameras already in the house. >> rebecca. >> you have a set price mixed with this service fee every

month. how did you determine the business molding, in how you were going to price it. >> we wanted to keep it economical for the widest market possible, because that's why the $99 price point is there. it's the lowest price for a device that's on the market today. and, you know, $10 a month in the scheme of our -- what we spend on our pets and everything else, you know, it's a couple cups of coffee. it seems like a comfortable price. >> some people don't like the subscription model, every month it reminds them that it's costing them. why do that initial of a higher initial outlay. >> you can purchase it with a year of service included, so you don't have to pay that monthly recurring price, and you get a discount on the overall device. it's just the way we chose. our research showed people panted a lower price product. >> how water poof. >> it's rated i puff-67, an official rating, it means you can submerge the device in

water. it can't go underneath like diving, but it can get wet and will stay water. >> we all heard what scott had to say, are you in or are you out on tagg? this includes you the viewer, time to get out your phones. visit cnbc.com/vote to say whether you are in or whether you are out. so andrew, what did you think? >> i would say i do have some issues with the device. i think it could be smaller. i would like to see it be more securely fitted to a collar so less likely to be lost, but i would say overall anything that helps to recover animals, i'm in. >> wendy? >> i think once he fixes some of these issues, i think i would absolutely be in, and i think he has a huge markets including husbands, boyfriends, children. >> so you're in? >> i'm an in. >> we have two ins. rebecca? >> you know, i like the added functionality of both having that gps location tracker, as

well as that activity tracker, to give your customers not only something to use when they're scared their dog is lost, but also something to interact with on a daily basis. but i'm really worried about how competitive this space is and if you're really building a brand. >> i'd like to see more visual elements, an abled to get that viral loop going, so for now i'm out. so scott, what's your reaction? >> thanks for the feedback and the positive reviews. we're always working to make the product better, and we'll continue to do that. >> thanks to scott and our panelists, and of course to all of our lovely pets. our live voting is just about to close, so thank you, viewers, for your in or outs, and that's today's power pitch. and the power pitch viewer vote is in. it's pretty positive. 69% of you said that you would be in. 31% say that they would be out, but there's more to it. we want to look at the grading

from our viewer vote on how tagg fareed regards the power pitch itself. 49% of you gave them an a, 9% a b, 16% a c. 4% didn't like them at all. that seems a little harsh to me, but nonetheless. it's your vote. josh lipton has breaking news from the google developer conference. >> sue, executives now talking but something they'll call android tv. it it will help you access all your content. you can talk to your phone and pull of your show. they know you spent a lot of time on your smartphone on your tablet. you also spend time on your coach watching your television. the executives saying they want to give tv as much emphasis as they do your smartphone and tablet. they also talked about new

in-car technology. this is called android auto, basically voice messaging music, and the car is a little battleground when it comes to big tech. gills, back to you. >> josh, we'll check in with you later. rick santelli for a check on the action of the cme. rick? >> hi, simon hobbs. we're down a couple basis points. by the way, we auctioned 39 billion of them off. that's why the auction being over we're seeing rates go up, should we settle anywhere with a yield under 165, it would be a new 2 1/2 week low closing yield, and the last chart, dollar index, notice the low on it. that was a touch of unchanged on 2014. back to you. thank you very much, rick. let's check on where we are with gold. what was interesting is today the weak gdp data actually gave 2k3w08d a boost, so closing for flat foss session overall.

it was down on the argument that the weaker economic future -- let's look at how the ag commodities are faring. so far sugar soy bheen and corn have made substantial gains. general mills clearly a big user. the fourth quarter results coming in below expectations today. the latest results come in amid a seismic shift in the way people are consuming breakfast in this country. sarah eisen knows a thing or two about an early breakfast. >> we often share an early breakfast. they're scrambling to keep up with a major shift in the way we are heating. for starters, cereal losing popularity pretty fast. cereal, as you can see has been declining for a long period of time checking volumes and fails. it turns out in the last monthly batch of data, kellogg, which

makes special k and mini wheat was hardest hit, but we should note that private label cereals are hurting as well. instead people are turning to yogurt, a $4.2 billion industry driven by growth in greek yogurt, and increasing demand for protein. take a look, in 2003, alternates more than a third of adults ate yogurt regularly. ten years later that has exploded to about half of the adult population. it's actually the cho bannis and other private greek yogurt companies that are reaping the benefits over general mills. 9 other major shift, eating out. check out traffics at restaurants, you can see breakfast is the only time of day that's actually grow iing s wonder they're all jumping on the breakfast bandwagon chasing

mcdonald's. what are the cereals of the world doing about it? they're trying to get the message that cereal also has protein, they're making it gluen free, gm off-free, they're trying to appeal to the more head conscious consumers. the industry is ripe for consolidation. >> absolutely. i mean, if you can't beat them, buy them. >> all right. thanks, sarah, very much. as you know, go pro is going public. >> but they aren't just a camera maker. they are increasingly becoming a content company. we'll explain all about that, coming up next. nice shooting john, chris.

full-year 2014 outlook and announcing a buy back program.

analysts expect it to double earns over the course of the next five years. and again, sue, this helps make materials one of the best performing sectors in the market today. back over to you. >>dom, thank you. go pro's ipo is pricing after the closing bell. the expected range $21 to $24 a share. that would value it at more than $3 billion. for those of you not dialed into the craze, this consumer electronics company isn't just a camera maker, it's increasingly becoming a content company. julia boorstin joins us live from los angeles. >> for go pro, content is a great way to showcase the cameras, and could create a new revenue stream. owners are eager to shire go pro has more than 100 employ crease dedicated to curating the photos the the company then secures

rights and adds music to polishes the video to distribute them on the go pro's youtube channel. the channel has 2 million subscribers and 50 million views in the first quarter alone, but the future could be in the original productions, an area where the company is increasingly investing. since launching the video production business in 2009 to showcase its technology, companies made more than 75 original videos, spending as much as $50,000 to produce a single original clip, like this one about the lion whisperer which was watched more than 17 million times. in addition to youtube, the company has a numb before the ways to distribute the content. and on its facebook page which has more than 7 million likes. there are ads on the youtube videos. right now ad revenue is relatively small and go pro doesn't break it out, but the potential in the future, especially with sponsor ships

could be huge. >> julia, thank you so much. the monster online retail presence just keeps growing, it seems, but not without some headaches, including the fight with the faa on drone delivery, and disputes with book publishers you are our david faber will join us next to talk about that. this comes ahead of david's documentary, "amazon rising" june 29th 9:00 p.m. eastern and pacific. it's terrific. "power lunch" will return right after this. she keeps you on your toes.

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swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about experiencing cialis for daily use and a free 30-tablet trial. david faber joins us now ahead of his do you rememberary which airs on cnbc this sunday, june 29th at 9:00 p.m. eastern and pacific time. good to see you, david. welcome back. >> thank you. >> amazon is getting bigger and

bigger, and are taking on publishers. >> the digital deals they dined up after the very publisher by the u.s. government are starting to expire. amazon is always extraordinarily tough in those negotiations, that's nothing new. it started as a book keller, we now know it as the everything store, the name of a book about it recently as well, but books are still important, and they are be part the most partner when it comes to books. when it comes to digital it's a much higher percentage than that, sue. >> at what point, though, do they get so big they group on the scrutiny and the headaches, as we mentioned from regulators, and from others units that's a great question. even their customer base, perhaps. having done a number of documentaries on walmart years ago, as you well know it's sbz to see some of similar, as it's

not seen as a befif sent force. it's interesting, in our documentary, we did speak with a former executive, randy miller, who ran this very business some time back when amazon was smaller, but even back then, they were still trying to press their advantage. former amazon executive randy miller left the company in 2006. he acknowledges that amazon bullied publishers and makes no apologies. >> retail is a contact sports. no, i think there were concerns in publishing. >> the power went to amazon, yes, it did. >> and amazon always seems to press the advantage. >> that's the hand book, rule number two, i think. press your advantage. >> and he did. when publishers bought to giving amazon, they buried their titles on the web sites, ensuring the sales and ranking would plummet.

>> we would target particular books who have authors on the best sellers list. ultimately they would call their publisher, i'm below 75, what are you people doing to drive my book sales? >> wow. >> well, of course, in fact their power has continued to grow and therefore their power within the publishing industry has grown. not that it's a small company. it's getting larger with this recent deal. interestingly, i spoke to might be hmm oosby, the c oeismt of barnes and noble, and i asked him whether they're benefiting, he said yes. he said they are seeing in benefits from this dispute. >> very interesting, david, i can't way to see the documentary, and perfect time to promo it. >> absolutely. don't forget to tune into david's documentary, "amazon rising" sunday june 29th, 9:00

p.m. eastern and pacific. we have market movers next for, you a very eclectic group, apparently. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening. they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability. give fans more then just the game with the ibm cloud.

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aerospace and defense giant is down around 1.5 to 2%. now helping matters are comments from delta air lines' ceo richard anderson. he says there's a huge bubble in single-aisle or the narrow body jets that could eventually lead to drops in values from those models, which is the best sellers at boeing and airbus. >> and priced in real time around the world. let's check out the oil refiners, exports of certain oil products, concern is building, the refiners in this country will now have to pay higher prices to get ahold of crude that they turn into gasoline. the biotech dropping after morgan stanley rating its shares as underweight, and hanes brand higher, buying db apparel in a deal valuing that company at $545 million. the three top winners after this break, and what's coming up in "street signs"?

>> hey there, simon. a moment ago you were talking about the big story about the government taking the first step in opening the doors on the decades-old banner. we've got a guest on the show who actually says this is really premature. what is google up to? what's driving it and how it impacts you? we're keeping an eye on all of that. and how do you make money off uber before it's even public? lots of things coming up at the top of the hour. back to you on "power lunch." er. now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ but you better get here fast... [ daughter ] yay, daddy's here! here you go, honey. thank you. [ male announcer ] ...because a good thing like this... phew! [ male announcer ] ...won't last forever. see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. but hurry, offers end soon. share your summer moments in your mercedes-benz with us. [ female announcer ] we love our smartphones.

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well kim back to "power lunch." check out pbh, spiking up about 7%, 8% the session highs, this on a reuters report that the management has sent a letter to pba's management say it thinks the best tap to value is for the company to be put up for sales. back over to you, simon. the markets up 45 points on the dow, as we head back towards 17,000 in an optimistic frame of mind. schlumberger is saying it will earn $9 to $10 a share, and cvs and gwinnett, both broadcast

owners rising in the wake of that decision intel the supreme court that aereo is infringing copyright to rebroadcast those signals. >> that was a big win for most of the major broadcasters. >> including our own, of course. >> absolutely. thanks for "power lunch." thank you for watching. >> we'll see you tomorrow. "street signs" begins now. american economic growth falls off a cliff, and stocks are back on the rise. hi, everybody we're going to simp or teeth into this paradone. is the new set top bock a game changer or another web tv bust, the impact of aereo's massive supreme court lost, and just one day ahead of the massive soccer game against germany, we go head to head, me and mandy, guess who gets to play america? >> i get to play germany, go figure. germany, australia, whatever, i get german,.