it's going to continue to go higher. >> final trades. >> pva, penn virginia. oil play. >> murphy. >> kkr. >> stephen weiss. >> pro share. >> i will see you tonight at 4:00 for more "fast." meantime, don't go anywhere. "power lunch" starts right now. >> halftime is over. "power lunch" and the second half of the trading day start right now. and we are still flirting with a milestone, namely dow 17,000. there are a lot of themes to cover behind that number. we've got big caps versus small. we've got risk and reward. the economy behind the rally and a lot more. right now the dow is trading higher but not by much. up 19 points. the s&p and the nasdaq also doing higher. anything positive for the dow and the s&p record territory at the close. six months after colorado legalizes marijuana, you're going to meet the investors behind the businesses profiting from that movement. these are very special private

equity funds. now we want to know, would you put your money to work in pot-related businesses? and you're going to love this story. we get the brutal truth from pepsi ceoindra nuie. this is the true story about how she told her mother about a huge promotion at pepsi. listen. >> let me explain something to you. you might be president of pepsi pepsico. when you enter this house you're the wife, daughter, daughter-in-law, you're all that. nobody else can take that place. leave that damn crown in the garage. >> leave the damn crown out. it gets better. more brutal truth from pepsi's ceo coming up later. tyner is out but susan is at the big board. >> absolutely, bill. so good to see you. the dow is 25 points from 17,000. year to date the dow is swaggered really. it's up 2.3%. the s&p and nasdaq up almost 7%.

there's another big story. ten-year note. take a look at the yield which crests above 2.60% earlier this morning which caused a little bit of a pull back in stocks early on. now we're at 2.625%. seema mody is looking at the small cap momentum names that are making a big comeback. first dominic xu on what could the next stock moves be in the next couple of weeks and days ahead taking a shorter term look. >> that's correct. the market will be drawn by macro or big picture items as well as micro or company specific catalysts. let's start with the big picture. macro catalysts. it's all going to be about tomorrow, a big economic report. the nonfarm payrolls come out tomorrow. that's going to be interesting because, of course, we're not just thinking about unemployment and what else is happening with the employment picture, it's also about wage growth as well. remember all the talk about inflation will be if there is

wage growth. what's going to happen here, next week as the fed comes out with their minutes. that's going to happen next wednesday, the 9th. that will give us a more colorful picture about the overall economy from the fed's perspective. on the company specific side of things, we have earnings season kicking off just next week. it's all going to start with wells fargo on the large cap side of things. next friday. the week after that a couple of tech things. intel on the 15th, that tuesday. then of course google coming out on the 17th. tech and financials the first two weeks of earnings season. big company event. back over to you. >> thanks, don. now to seema on the rise of momentum stocks. quick power definition in order here. momentum stocks are stocks that consistently move without fundamental moves and without concerns for the underlying fundamentals of that particular company. i've set the stage for you, seema. take it over. >> thank you, sue. fast-growing companies, momentum stocks, they really got hit hard during spring, march and april to be specific.

and lists were questioning user growth but what was really the prime concern was valuations. however, social media and internet and small caps -- this one may surprise you, too m. candy crush up 20%. cloud computing at the mytech, sales force double digits. chinese internet a pocket of strength. really interesting to see wall street warming up to chinese companies which a couple of years ago weren't particularly loved by investors. with this growing interest, j.d..com some of the big winners. with that said, sue, some experts are cautioning to say if the stocks run up too fast valuations will become a concern. bill and sue. >> seema, thank you very much. the cma group in chicago.

cnbc contributors who had a memorable encounter this morning on the train. you'll have to read his twitter feed to hear all about it because i'm not dealing with it. all i can say, jim, is follow your dreams, buddy. do they include 17,000? do we pause here, do you think, or do we go higher? >> no, we pause here enough. we're going to take it out now. we rarely come within sitting distance of something like this. it's somewhat monumental. the dow is not a huge way to go. >> i have a pull back. >> on the momentum plays, the market has been defensive. where do you guys stand on the momo stocks as they're known,

jim? highs 2 months ago, 12-15. i believe it's green light. i'm in facebook already. i would consider testila, netfl. >> we are getting into the month of july. historically the vix, up 9% historically. since 1926, as this situation turns, it's giving us small caps. they move first. >> what jeff said, too, they're giving you a gift out here. volatility is at such unbelievable low levels that you are supposed to replicate long

positions and cheap call backs. >> everyone is bidding up the cause. >> jim, thank you very much. enjoy your holiday. >> thank you, bill. you too. let's go over to don. >> phil, check out what's happening with the airlines. the stock is moving lower as they said june unit revenue reports. you can see the stock session is down 5%. that helps send 9 rest of the industry lower as well. look at names like united continental, american airlines. >> nyse airlines index is up 25% year to date. >> it has been, thank you, dorch don. dow 1700 watch. the higher you climb, the harder you fall.

we'll be talking about market riskment also, hunting for value. where the bargains are right now. energy was the top performing sector when the dow first closed between 1606 months ago. that sector has been outperforming so far this year. is it still a good play for the second half? that's all ahead still on this hower on "power lunch", sue. bill, as you know a major storm is marching up the east coast. of course, just in time for the long weekend. with an update here's weather channel's greg postel. >> the latest on tropical storm arthur, 60 mile per hour storm 100 miles to the east of the florida coast. let's have a look at the latest advisories. it is moving north essentially paralleling the coast of florida this afternoon. we do expect it to eventually take a northeastward turn and come very close to the north carolina coast as an 80 to an 85-mile-an-hour category 1 hurricane thursday evening and friday morning. so stay tuned for all the latest updates on tropical storm arthur and its movement during the next

48 hours. we do have tropical storm warnings out there in orange and tropical storm watches in yellow. in addition to that we have hurricane watches here shaded in orange for parts of eastern north carolina. stay tuned. back to you. thank you very much. all right. dan leonard joins us. he's a senior energy meteorologist with weather services international. we like to call him wall street's weather guy. dan, what businesses and sectors do you think that we really need to focus on as arthur marches its way up the coast? >> yeah. this is entirely a tourism industry impact that we're looking at here. does not look like a major storm. this is certainly no irene. this is certainly no sandy. it has a big impact on tourism industry. let me give you an example. in 2011 when irene hit cape cod estimates they lost $35 million in revenue when irene hit. granted, that was a much bigger storm but it came on a nonholiday week end. there's a lot of tourism dollars at play. i'm guessing in the hundreds of

millions range. then you compact that with the fact that we have a major holiday weekend on the east coast for tourism, the beaches. the first storm of the season and the first storm for the east coast since sandy. compound all of the factors, a lot of hype in the media. we have a big deal with the tourism impact. >> well, yeah. it sets the stage for the rest of the summer. what about the energy sector, dan? >> not a lot but traders are sort of shrugging their shoulders with this one. we're not talking gulf of mexico so no disruption to supply for gas in the south. it has a slightly bearish tone for the markets. a little bit about rain and wind and cloud cover for the east coast and cooler than normal temperatures. that's put a damper on electricity demand and you tend to get lower power prices out of that. in the end it's probably slightly bearish. not a huge impact for the energy markets. >> dan, we'll hope for the best. thanks a million. bill, back up to you. lousy timing for the 4th of

july weekend. here's the question, would you invest in marijuana? we have found two people who do and they want you to do it, too. it's also today's viewer vote. go to cnbc.com/vote. let us know where you stand on that. check out this incredible video. one of those street food trucks exploded last night. it was all caught on videotape. we'll have that story when we come back. of the services your vehicle needs. so prepare your car for any road trip by taking it to an expert ford technician. because no matter your destination good maintenance helps you save at the pump. get our multi-point inspection with a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup only at your ford dealer.

energy, the rate sensitive sectors are taking a breather. >> don, thank you. an incredible story, the street food truck exploding last night in philadelphia all caught on videotape by a security camera. take a look at this, 12 people were hurt in the blast. two of them critically. two of those people were a mother and daughter who were the ones working inside that food truck. investigators are quick to blame a propane tank that exploded inside the truck. new research from "consumer reports." sarah eisen is here with the results. >> it turns out mcdonald's burgers are the absolute worst in america. that's accord to go "consumer

reports." latest fast food survey. big chains like mcdonald, taco bell and subway rated lower than smaller chains than in and out burger, chipotle and chick-fil-a. they're spending more than ever to dine out topping $680 billion per year. fast food chains are struggling to find the right recipe to woo younger diners who are looking for fresher, healthier food to keep costs low. it is all about getting the millennial consumer. >> they're lagging behind. incredible. go to breakfast. >> that's where the action is. breakfast sandwiches. >> thank you. you heard it first. >> thanks, bill. it has been -- don't expect new jersey to follow suit. as governor chris christie told "squawk box" yesterday. >> i'm against legalization of marijuana.

i think it's wrong. i don't think we should do it. >> well, governor christie isn't the only governor against it. washington state and colorado have green lighted recreational use so far. so clearly there are some barriers to growth. brendan kenny is ceo of private tear holding. the first private equity firm dedicated to the market. david dynberg which aims to be the ge capital for the pot industry. viewers, you can weigh in on this. go to cnbc.com/vote. we want your thoughts. we'll put the vote on the bottom of the screen in a couple of minutes. gentlemen, welcome. it's a pleasure to have you here. >> pleasure to be here. >> i'd like to start with you, brendan. we highlighted that sound bite from governor christie yesterday. he is not the only governor against this. i wonder what kind of impingement that is to your growth in your business? >> well, thank you, sue. gosh nor christie has 61% of the vote.

>> there's a mandate there on the other side. the american populus disagrees with him. >> david, let me turn to you. you want to be the ge capital, if you will, of this particular market. tell me what services you want to offer some of these companies. most of them are privately held certainly, but they also have a tough time getting access to cash by the sheer nature of the business that they're in, correct? >> thank you, sue. yes. kind banking is the first full service financial solution for the legal cannabis and hemp industry. currently we offer financing via debt, convertible debt as well as we make private equity investments. we have other services for merchant services as well as payroll services as well as vaulting services.

we've found -- >> let me remind our viewers that they can vote in on this. we want to know would you invest in a marijuana business. you can go to cnbc.com/vote. we'll give you the results in a couple of minutes. david, i'll get back to you in a minute. tell me how much money you've been able to raise. i think there was some impediments to raising money short as maybe two years ago but apparently that has all changed now because of states like washington state and colorado. is that a correct read? >> that's exactly right. we've been polling investors for the last four years. to date we've raised $22 million from investors from around the world who are interested in this indust industry. this month we will announce that we have raised an additional 50 million, at least 50 million more. it has gotten much easier over the last four years as people realize that change in the end of prohibition is near. certainly there's been momentum

with the launch of retail cannabis in colorado on january 1st and then next week it looks like on july 8th we'll see the first retail stores open up here in washington state. >> so, david, talk to me though about the political climate. right now the political climate is perhaps on the federal level anyway slightly more friendly to the use of cannabis for medical purposes and perhaps for recreational purposes, but we have an election coming up. if we get a change in administration in terms of the party, does that work for or against your business? >> it's a very interesting topic. i look at it like this. it will be very difficult for any politician to run for national office today. like brendan mentioned earlier with the majority of america in favor of some form of legalization, whether it be medical oreck -- or

or recreational. we will see a new white house take over, obviously, but i do think the medical legalization has a very good chance of passing. currently the fda is looking into the medicinal value of marijuana. >> and, brendan, i'll give you the final word. i know that the canadian government has a very different program where health canada basically runs that particular system. and it's a rather onerous system. apparently in your opinion there's less risk because it is so highly regulated. is that true? >> that's entirely correct. so we look at international and national opportunities as well. we've invested $20 million in the facility in canada where we have a federal license to produce, process, package and distribute cannabis to medical cannabis patients through the -- through our till ray subsidiary. >> best of luck to you both. appreciate it, brendan and david. let's lock in the vote.

we asked you would you invest in a marijuana business. 76% of you said yes, 24% of you said no. so, the majority, bill, seems to be in favor of it. >> big thumbs up from our viewers here on cnbc. very interesting. thanks, sue. ahead, cnbc investigation. scott cohn went to different prescription retailers. he found differences. plus, the road to 17,000 continues. we're covering several themes including the risk angle. plus, the power pitch is coming up. i'm a little bit confused how you make money. >> stay tuned to vote with the power pitch analysts live. are you in or are you out on this week's startup. go to cnbc.com/vote right now. get ready to start voting.

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[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ welcome back. it's power pitch time. we give budding entrepreneurs 60 seconds and we want to hear from you at cnbc.com/vote. welcome, everybody. i'm mandy curry. in a moment we're going to see today's power pitch. at that time you the viewer can grade the pitch live.

log on to cnbc.com/vote. give the pitch an a, b, c, d, or f. this is today's pitch. i'm noah santos and i'm will nathan. >> we're the founders of home polish.com. >> we're bringing interior decoration to a whole new level. >> unlike traditional design firms, home polish designers work for a flat hourly rate minus markups. we have unparalleled service and hundreds of discounters. go to home polish.com. we'll send you a hand matched designer straight to your door for $50. >> home polish is almost 2 years old, self-funded, profitable and one of nyc's fastest moving startups. we've expanded to 130 designers.

nyc san francisco, l.a. and chicago. we've designed over 1,000 homes and offices. >> from renters to homeowners, home polish is proving interior design is more than that, it's about living and working better. >> welcome to today's "power pitch." with us is will and nathan. on the power pitch panel is colin cowie. he plans celebrity wettings. he's a design consultant for companies like the marriott. he has his own brand on the home shopping network. also is ryan serhant. he was one of the stars of the hit show "million dollar listing new york." he's the executive vice president of real estate firm nest seekers international. he has sold nearly $1 billion in properties in less than five years. joining us from silicon valley is paul hsiao.

he handles venture funds. he previously worked at nea. that's where he led the investment of house. they have millions of users and more than 300,000 professionals on a platform. so we've got a lot of expertise here on the panel. guys, you're in the hot seat. great to have you with us. colin, would you like to throw the first question? >> it's very impressive that you have gone into four divisions and tiers, how do you plan to scale it? >> we're in eight cities. we want to find the right balance between technology and marketing and social media to really drive our growth. >> customer service is the most important in my business but how do you manage the quality control of i think it's 130 designers? >> i think we have some really amazing people on the team that are specifically tasked with keeping the customer experience really locked down from start to finish. we don't sacrifice on the quality of the service to say build faster than we think we should. >> how do you attract, retain these talented designers and the

economics you show with them? >> we want to credit the designers so we work to build them as personalities in the industry and get them in publications whether it's elle decor and build their brands. it's important for younger designers. it's a pretty big value add to them as they're trying to start their own companies. >> are the designers rated? >> yes. we keep pretty close tabs on that experience. it's very important that we have touch points with the client throughout the process. we consider them home polished client. >> so how are you going to incentivize in the market that we're in wherein tear i don't remember design is a luxury and they make the majority of their income on markups? >> there's two components. for the emerging designers we give them a platform and a way to get out there and get in homes which is really difficult. for the more established designers, for our price points and charging an hourly rate, it

is competitive in the market. we're giving them the other tools to make sure they tonight have to worry about billing, invoicing, all of the other things that would have spent more time and they would have made more money on. we give them that ability. >> if they're not happy with the first designer, you'll find them a second and third? >> yes. that rarely happens. we have a team in new york that spends a lot of time matching them with someone who will be a good fit. >> how do you ensure that they're not making markups? >> legally we have contracts in place. through the system we provide discounts that incentive advises the clients to control the buying process. >> guys, we heard what will and noah had to say. are you in or are you out for this? this includes you the viewers. get out your phones or go on the computer. you can vote live. cnbc.com/vote to say whether you are in or out. ryan? >> i like your business model. like brokerage, you have no cost basis except for admins and everything else is profit.

no matter what anyone says, i think you're going to make money. i'm he in. >> what about you colin? >> i was skeptical. it's a first line service. but when you think about it and you see what they've done so far, i am in. >> you know, i like the opportunity and i think i'm impressed with how scrappy and creative. for those reasons, i'm in. >> wow, we've got three ins. i don't think you realize how rare it is to get three ins. will and noah, what's your reaction? >> thank you so much, everybody. >> thank you to will and noah and our panelists. and our live voting is just about to close. thank you, viewers, for your in or out. that is today's "power pitch." >> they may have gotten three ins, but you guys are the tough sell. we're locking in the vote now from you folks and you don't like it here. we've got 71% who are out with the other 29% saying they would

be in on home polish. i also want to look back at the grading from your viewer vote on how you think the home polish guys fared regarding the power pitch. 19% gave them an a, 3% a b, 9% a c, 6% a d and a whopping 63% didn't like them at all giving the home polish power pitch itself an f. ouch. hey, the truth hurts sometimes, right? by the way, big news. you probably have heard for a power pitch alumn. songza. they've been bought by google. the startup received three ins last year just as home polish did today. i wonder if our viewers liked it. the money man behind this david hirsch will be here. proof there is life after the power pitch. >> there absolutely is. we have had a number of the

power pitch contestants and companies receive funding from silicon valley so it's a very powerful segment. let's take a look at the metals markets. the up side for the copper market. the gold market gained $4.30. the copper market closed up under 2%. that's the biggest move since may 12th, bill. >> all right. sue, stocks as we know trying for a dow 17,000. we almost got there yesterday. we got within 15 points today. the risk investors need to know about before they click buy or sell. that trade is coming up next. and indra nui, the ceo of pepsi with some very hard truths about what it's like to work and run a family. very candid thoughts that really shock some. that's coming up on "power lunch."

lunch." check out shares of tesla which are session lows right now down by around 3% here. 2 1/2% now. it could get the profit taking at these levels. this stock had been up by 30% since the beginning of may. the company is worth $29 billion

now. just for some context, sue, gm is worth 60 billion. nice run for tesla shares. >> absolutely. thanks, dom. stocks trading in a narrow range. that comes despite an adp rating. with the dow up 19 points approaching the 17,000 mark, the s&p is up just a fraction and the nasdaq is up a fraction as well. with me is bob tasani. in washington is cnbc michael bar, president of bar, miller and washington. bob you wrote about this on cnbc.com. so many issues that the market may be facing. can you outline them for me? >> the major problem is can we move forward on the economic front if we can get strong numbers tomorrow, i'm talking $250,000 over the job creation area. that will add to a string of data that the economy is improving. then you're going to start seeing the front page of the newspapers and you start

generating a discussion around the country about how strong the economy is. we're still getting somewhat mixed data. we need to see it stronger. that will help power the stock market. i think the stock market could handle slightly higher interest rates in exchange for clear evidence, clear evidence of an acceleration in the economy. >> michael, you're a conservative investor. you try to manage risk. you see a number of risks. longer term we should know that you are bullish. you think the market can go further from here, correct? >> do. sue, everybody's been calling for a market pull back now for a couple of years and it just won't happen. this might be the longest anticipated bull back that just won't come to pass. while it's been happening economic data has been improving and that adp report this morning was a good number. if we see the number that bob wants north of 250 tomorrow, that would be another -- yet another positive point in a rather long argument taking the economic improvement a little bit better.

>> but you say the -- yeah, the valuations though, do they look fairly valued or a little stretched? >> i think they're a little stretched. i don't see any way to say that they're not a little bit stretched. the earnings growth we've had, we've had multiple expansion that's still more considerable. 17 times earnings, forward earnings, somewhere close to higher than that on the trailing -- on a trailing basis, that looks expensive. profit margins are at all-time highs, you know? so are we seeing a stronger consumer which is 70% of our gdp? are we seeing them buying more, demanding more so factories are hiring? no, we're not. >> okay. we have to leave it there. thank you, michael. thank you, bob. appreciate it there. >> how do you play the market at the record highs? corey is chief investment market. darren richards is chief investment officer at wells

advisors. first of all, good to see you. it's been a while. this is the first time since 2008 when you've been getting calls from clients wondering if they should stay in the market. >> once you start to reach new highs clients call and say is it time to get out. for the last five years it's been easy to say valuations are inexpensive. this year you're hitting it where valuations are fair or slightly over valued. it's getting a little bit harder to convince people to stay invested. with interest rates, i think that's one thing that allows them to go a little further or stay at this level. i'm still kind of convincing clients to stay the course. >> what about you? you're cautious of this market? >> yeah, i'm cautious. we've had a 42% rally in the last 18 months which is extraordinary. the s&p has tripled in value since the lows of march '09. i think it's a time when investors should take a look at their portfolio and look to

rebound. the ones along the market should make sure they're not overexposed. people have not been invested at all in the equity market the last five years. i would encourage them to not plunge into the market but to use dips and any kind of selloffs to maybe wade into the market. >> darrin, you've changed your asset allocation. you're looking outside the united states. break it down for me quickly. >> we're 2/3/ 1/3. we're starting to drift more towards 50-50 over the coming quarters. i think what's going on in europe is the early stage of recovery. i think that's attractive. particularly at the smaller cap level. and we're also looking at emerging markets. asia's doing great. both funds are up over 11% this year. i think getting away from the u.s. market, undervalued markets makes sense at this time. >> more y, darin, thank you.

>> happy 4th. >> happy 4th of july. >> we'll take a break. why are drugs so much more expensive in the u.s. than outside our borders and what's the risk if you try to buy your drugs outside the country right now? our senior correspondent scott cohn went undercover to find answers. >> hello. we ordered some lipitor from you folks. we received it. we got it tested. it came back as product that's not authorized for sale in the u.s. i just wanted to find out what the explanation is for that. >> you'll hear that explanation in scott's undercover report when we come back on "power lunch." with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.

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as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, 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 cialis for daily use and a free 30-tablet trial. the high cost of prescription drugs in this country has some surprising and potentially risky side effects. senior correspondent scott cohn went undercover and has a story that you'll only see here on "power lunch." >> the question of safety or beating the drug companies at their own game. it took some interesting turns.

the drug companies say part of what you're paying for with the higher prices is safety which doesn't explain the low prices in other parts of the world. the alternative sellers claim they get you safety, too, but at a much lower cost. is it cost versus risk? here's what we found. >> you are wrong. >> we're not wrong. the prescription lipitor we purchased undercover from this business in florida and had tested is different from the lipitor we got from a traditional pharmacy. >> hi. i need to get this filled. >> but like just about everything else involving prescription drugs, this story is a lot more complicated than that. we had gone undercover to look at the explosion of what are known as facilitators, basically brick and mortar versions of internet pharmacies offering prescription drugs at big discounts. they claim to be legal but drug companies say they're exploiting a legal loophole. we found these businesses all over the place in florida where a lot of seniors are on expensive drugs but might not feel comfortable ordering them

online. the idea is i can take a prescription like this, bring it in, they'll fill it, they'll ship it to me house at a huge savings. discounts as much as 80% or so they claim. some people, like this woman who wouldn't give her name, swear by these places. >> people need to save money and drug prices are too high. it's simply economics. >> reporter: but the national association of boards of pharmacies says ordering from a facilitator carries the same risk as ordering from a website. those risks, they say, are considerable. >> of the 10,000 sites we've looked at, 97% of those sites are illegal or rogue sites and they're operating dangerously. >> reporter: offering selling counterfeit drugs which is where this lab comes in. it's run by pfizer. here they can test a pill. >> run. >> reporter: with pretty much the push of a button. >> so this fails. this is a counter fit tablet. >> reporter: pfizer director of

global security is a former fbi agent and pharmacist. >> the big bone of contention here is patient safety. we want to make sure that when a patient gets a pfizer medication, that they get a pfizer medication not some knockoff. >> reporter: some of what they're finding online is frightening. >> they'll use things like brick dust to hold it together. they'll use wall board, sheetrock to hold it -- to hold these things together because they compress well. >> reporter: to see if the facilitators are any different from the online sellers, pfizer agreed to help put us to the test. we ordered brand name lipitor and we filled two more prescriptions in new york and new jersey at traditional pharmacies. >> i need to get the prescription filled. i need the brand name. >> the first difference is obvious. the price. the facilitators charged us $1.71 per pill. the pharmacies, more than four

times of that. >> $182.74 when we got our prescriptions, the difference was noticeable. we sent samples to pfizer's lab removing packaging to keep the tests blind. do you think you know how the tests came back? think again. according to pfizer's own reports, the oblong lipitor came back authentic. no surprise. but what about the round lipitor that came in the mail? turns out according to pfizer's own analysis, it's authentic, too. >> authentic pfizer manufactured drug product, but not intended for distribution in the u.s. that's right. pfizer makes two kinds of lipitor, the drug sold in the u.s. and the drug sold overseas at a fraction of the price. >> i think a lot of people would be surprised that pfizer makes more than one kind of lipitor. >> we make products around the

world. >> reporter: pfizer's brian donnelley says the overseas lipitor is the same drug and the same quality. >> whatever product pfizer makes is going to be a top chef product. >> reporter: so what's the risk to the patient beyond saving a lot of money of ordering this way? >> well, the risk is any time you go outside of the u.s. system you are circumventing a system that's put in place for your safety. >> reporter: he says the higher price in the u.s. buys you the fda and what he calls a closed system to keep out substandard or counter fit drugs. it happens to also keep out the less expensive overseas lipitor and june boody says that's what's really going on here. >> we save you lot of money for a lot of elderly people. i have a lot of happy customers. >> an attorney for two of the other facilitators say they do try to make sure they order from overseas pharmacies. the owner of the fourth business says he requires all of his

suppliers to be licensed in their home country. pfizer, meanwhile, points out that it spent more than $7 billion in the last five years to help people afford their prescriptions through an assistance program called rx pathways. bill. >> fascinating. great story as always. thank you, scott cohn. when we come back, brutal, honest true from the ceo of pepsi, indra nooyi on whether women can really have it all after this.

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comcast business. built for business. welcome back. we have a shocking update on a story we first brought to you here on "power lunch" two weeks ago. the story was bae systems said they had busted up a major hack attack against a hedge fund. now there's a new twist in this story. eamon j eamonjavers has the story. >> they're saying the executive who provided the account to us is now taking some time away from the business and is unavailable to talk to us. they've given us a statement on the story we originally ran on june 19th. i'm going to read the whole statement. it lays out what they're saying. here's the statement. there has been an enormous

amount of interest in cyber attacks on the financial sector. from the extensive amount of cyber incidents we deal with, we occasionally produce illustrative scenarios to help inform industry and the media. we now understand that we recently provided cnbc with an example rather than an example. although it was plausible, we believe that it does not relate to a specific company client. we sincerely apologize for this inaccuracy. we are taking the necessary action to ensure this type of error does not occur again. that all according to a bae systems applied intelligence spokesperson. bill, i can tell you when we interviewed on camera the executive initially, he was quite clear what he was talking about was a real world event. he was describing the reaction of the board of directors of the hedge fund that had been hit and giving us a lot of details

responding in detail to a lot of follow-up questions. bae saying this was not, in fact, a real world incident. they're apologizing for putting out inaccurate information. >> this is more like game playing or practice to prepare for the possibility of a hack attack of some kind, is that the idea? >> that's what they're saying. they're saying somehow one of these internal scenarios was presented to us as something that had actually happened but it was internal. i asked them why it took nearly two weeks to get back to us after we had done the story and they said it took them some time internally to figure out that this mistake had happened and it took them some time to verify. they're now saying they don't believe any real client was affected. that's what they're telling us as of this morning. it's very surprising and in my career unusual to see a company put that out. >> eamon, thanks. we'll let you go. the stock bae is down 1.58% this

hour. we'll have more details coming up. also, this is a rather complicated story. if you want more details, the full background on this you can find it right now. we've just uploaded it to our website at cnbc.com. crazy story. sue? >> it really is. i've never recalled anything like that. the ceo of pepsi. indra nooyi answering questions at the aspen ideas forum which occurred earlier this week. the interviewer asked her about being a ceo and running a family and indra nooyi was very, very cand candid. >> i don't think women can have it all. i just don't think so. we pretend we have it all. we pretend we can have it all. you know, my husband and i married for 34 years and we have two daughters, and every day you have to make a decision on whether you are going to be a wife or a mother. in fact, many times during the day you have to make those decisions. and you have to could opt a lot

of people to help you. we co-opted our families to help us. we plan our lives meticulously so we can be decent parents but if you ask our daughters, i'm not sure they will say that i've been a good mom. i'm not sure. and i try all kinds of coping mechanisms. >> indra nooyi. very candid and, you know, as a mom of three and i know you're a parent as well of two, bill, it is a never ending challenge and there's really no balance. >> whether you're in the sea suite or not. >> absolutely. >> it is a balancing act so many people have to come up with in their careers. i know you especially in your career have had to balance so much with your three kids and this demanding career that we have here in television. so for somebody like indra nooyi to step up. >> absolutely. >> ceos are supposed to be bullet proof. they're supposed to be immune on these problems. they're focused on their business but for her to come out is very candid and very

refreshing. >> i thank her because i think it opens up the conversation and it is very refreshing. >> exactly. >> all right. let's see what's coming up on "street signs." mandy's here. >> yeah. yeah. good for her for being honest, right? i feel like i'm juggling every single day and sometimes the balls drop. i'm really excited for today's "street signs." we have bill gross. we have the money man behind google buying songza. sarah and i have the tongs. we're grilling and finding out the true cost of your 4th of july barbecue. "power lunch" will be back after the break but we'll see you at the top of the hour with tongs. it elicits pride... ...incites envy... ♪ ...and unleashes wrath. ♪ temptation comes in many heart-pounding forms. but only one letter. "f". the performance marque from lexus.

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that is "power lunch" for this wednesday. thanks for joining us. i'll see you an hour from now on closing bell. we'll see if we hit dow 17,000. >> maybe. it's been fun, bill. thanks. have a great 4th, everybody. "street signs" begins right now. and welcome, everybody, to "street signs." pimco has one big investment idea for you. bond king bill gross will be joining us in a moment's time. are you dreading the airport this weekend? what is happening at our nation's airports that is costing our