play, upside call. s&p and nasdaq having their best day in a couple months. it would be potential interesting given the situation in ukraine, and also the developing story. "power lunch" starts right now. >> thank you very much. it is another day of developing news stories. this is video of israeli army operating inside gaza on day 2 of its operation to stop rocket fire and destroy those tunnel networks through which hamas individuals burrow their way into israel. this is the wreckage site in ukraine where flight 17 went down after it was hit by a missile yesterday. u.s. investigators after a delay are now en route to that debris field. sue? >> despite those headlines and developing stories, the markets have had a very strong day.

we're up triple digits on the dow jones industrial average, about half a percent gain. look at the nasdaq, un1.3%, the s&p up almost a full percent, the russell 200 is up 1.5%. in terms of the gold market, interestingly enough the money has been coming out of gold into bonds. there's the yield at 2.49%. we welcome to you "power lunch." >> and i'm tyler matheson it is although busy day. there you hear and see the images and hear the sounds of gunfire. despied the grown invasion, hamas has fired 80 rockets into

israel just today. captured an additional 13. in his first comments, israel's permit said the operation may need to be expanded. u.s. investigators are on the way to ukraine to investigate the downing of malaysian airlines flights 17. there you see image. it is unclear yet who fired the missiles, but u.s. sources it almost almost certainly came from -- almost a third of those kid were aids researchers. president obama spoke about 30 minutes ago. >> i spoke to president putin yesterday in the wage of additional stageses. he said he wasn't happen with them. i told him that we have been very clear from the outset so

far they have yesterday to take that path. >> president obama also confirming one passenger aboard was an american. sue? dom any chu is here on the floor of the nyse. morgan brennan is uptown at the nasdaq. i'm impressed by the fact that the market is able to move up and bond yields are moving down. >> i spoke with art cashin earlier today, and he said in essence you have a situation where there's still a risk out there, but traders are handy capping the situation. investors have taken the tuned to less get back into the markets some in ways. what's telling about the trade, if you look at the sectors, it's the cyclical ones.

>> you talk about utilities, health care. but if you look at the overall picture, they have interesting, to go up and of course two big ipos -- not big, but two ipos are double digit. >> they are significant, though. >> it's a sentiment about the market. >> absolutely. dom, thank you. uptown to morgan brennan. the nasdaq is having a terrific day. >> that's right. the nasdaq is regaining ground after that 1.4 percentage drop that we saw yesterday, the largest since april 25th. today we're having the best day since may 12th. the nasdaq is currently up about 1.2% to 44.16, earnings playing

a big part here, starting with google, class a and class d shares both up today, despite the worse than expected profits. we saw the 22% gain in revenue, tied largely to online ads. that's also -- meteorology on to semiconductors, led by skyworks solutions. that's up about 14%, with the earnings beat the outlook. beyond that rf microdevices, and all rising in sympathy. tyler, back to you. >> morgan, thank you very much. some powerful catalyst yesterday. in the aftermath, a time when some investors want to buy on geopolitical-induced events. other jim cramer urged caution. >> you don't want to be calling

anything a buying opportunity until we have at least a modicum of clarity. we need some degree of certainly to buy any stocks. i didn't get that much certainty. did you you they'll be worried about something that can happen over the weekend. i don't want to mix up money and people's lives. i say, wait, donnell be overanxious. >> the word from jim cramer. and now a market flash. >> petrobras, brazil's state-run oil company, higher after the results of the presidential poll showing greater odds of a new administration after the october election. the administration has kept

prices down, forcing petrobras to import and sell fuel, so a change certainly would be welcomed by shoulders. sue? >> thank you so much, bertha tryle-digit advances. joining mess on the floor here is katie nixon, wealth management's cio, and good to see you both. it's a friday, we're going into what could be a tense weekend. katie, i was reading in my notes that you say the geopolitical tensions make you just want to take another look at your global equity allocation, right? >> i think, sue, it's important to separate sentiments from fundamentals. certainly it will ebb and flow with all the geopolitical tensions we're seeing pop up, but it's equally important to step back and look at the fundamentals and recognize unless they have a transmission mechanism into gdp, the

fundamentals remain very, very strong here. >> so you just have to take a step back. >> exactly. >> andre, you kind said the same thing, this may be very important, but you think the most important mea, the -- >> here is the story of the reason why the market is up. the mobile has continued to expand. that's because rates are lower. therefore that pushes the multiple higher. as long as the fed is on the sidelines or the vigilantes don't push rates up, that will allow the multiple to continue to expand. so i think we're going through a summer slowdown in the markets. >> it's dicey, though. there are a lot of vocal fed presidents. >> so what will happen then? is she going to come out and remain dovish, because the economic data isn't strong enough? or there their voice get heard? and that would keep the multiple mixed. so that's the big events that we need to focus on, less so the

geopolitical events. >> what are you doing in terms of allocations right now? >> we remain constructive on risk assets. we love global equities, remain overweighted where the fundamentals are very strong, and they're supported by what we think will be a continually easen monetary policy. we're constructive on developed xus, recognizing that earnings growth can probably surprise on the up side, and even more accommodative emcb there. >> where are you putting money to work? >> i think this summer i wouldn't get out of the market, but would be more defensive. as was touched on earlier, i think some of these -- there's a third for yield, everyone loves utilities reits, but they have -- and they haven't done nearly as well. so great defensive play, especially with the geopolitical issues. i think they're 3% to 4%

different yields. >> so you get the global play, the yield -- >> and in case some of this geopolitical stuff continues. thanks to you both. ty, up to you. sue, thank. how much leverage does europe really have when it comes to russia and vladimir putin? you have to see these stagger stats, next. plus jane wells on the new bomber. jane? >> the pentagon wants a new bomber. can we afford it? and there are some concerns that the current fleet is not up to the task. we'll look at that, after the break. being a keen observer of the world has gotten you far, 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 is all in one place, so finding more insight is easier. it's your idea powered by active trader pro.

another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. ♪he cadillac summer collection is here. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. ♪

gill adsciences trading at session highs. upgraded today, it raised the price target to 141 from 130 a share, saying it sees the hepatitis-c franchise eventually reaches 22 billion in annual sales, the company expected to report earnings next wednesday, and a lot of folks looking to see what happens in october, sue, when they put out an all oral combination drug version of sovaldi, a very bee dated drug these days. >> a report from congress suggests that the b-2 and b-52 bombers run the risk of becoming

irrelevant. northrop grumman rolling out a show-and-tell, and jane wells is live in los angeles for us with some of the details. a bomber competition, you say? >> yeah, well, sue, you know, the world is a dangerous place. a congressional report suggests the current fleet may not keep you with adversaries. this is the b-2 built by northrop grumman, expected to compete for the next bomber, which the pentagon hopes to buy for about $550 million apiece, but a congressional research report suggests that the ability to pierce the air defenses is deteriorating. the error questions whether current bombers can remain credible weapon systems.

those in palmdale yesterday disagree. >> it's important to make sure we continue to learn from the aircraft and make sure as we continue to advance forward, we continue to maintain the technological advantage over potential adversaries. what the b-2 actually brings to the nation, it does brings the stealth technology, that long-range precision strike capability. it's a great air krafl. >> well, the congressional report says the question remains will the bomber force keep pace with sustainment and modernization efforts in order to remain a credible response to adversaries, or will they become increasingly irrelevant, because the nation cannot afford them. new bombers may not be flying until the middle of next decade. tyler? >> thank you, jane. could the crash over ukraine be a turning point in the conflict? it depends. europe very dependent on russia

for its energy needs. jackie deangelis is on the case. >> good afternoon, tyler. that is the exact situation and issue right now that's making it sticky. remember, the day before the plane crash, we had the u.s. imposing fresh sanctions on russia because of its involvement in ukraine's conflict. those sanctions, of course, targeting a couple key firms include november atech, that's owned by gas-pro mvp, but not directly targeted to the big parent company. gas prom is also the number one supplier to europe. now, analysts and traders reading this to mean the u.s. wants to turn up the heat on russia, but doesn't want to throw europe into an energy crisis. now, when you consider gasp rflt om alone, it fill the demand, up from 27% in 2012, and year over year, the growth was driven in certain parts of europe,

specifically places like italy, the uk and germany. according to the iea overall europe takes roughly three quarters of russia's natural gas exports. you have analysts out there saying this is only going to continue to get worse. europe will be more dependent on russia for natural gas, because the excess output we are seeing from the middle east, that's being absorbed by asia, so it is not going over to europe. the situation clearly escalating over the last few days, also reigniting the debate about natural gas exports here in this country, certainly something that we've been talking about for some time. could ethe global market in times of turmoil. there's been effort, of course to green light more domestic natural gatt export terminals the that progress is definitely positive. at the same time it could take years better the terminals are actually up and running. right now analysts and traders are looking at this, saying russia is still holding a lot of the cards here. intoic to you, tyler.

>> jackie, thank you very much. on the news line is thomas pickering, former u.s. ambassador to russia. the big question among many others is who did it? and what's the diplomatic response and aftermath. ambassador pickering, welcome. you just hard our jackie deainge his pointing out how dependent europe is on russian-supplied natural gas for heat and power europe has been notably hesitant to join the u.s. is applies sanctions. what can the u.s. do to press europe to fridays back on putin and russia? >> tyler, this has been a problem for some months. what the u.s. can do is obviously put together with the europeans a plan to replace the dependency and reverse the cards. russia is very heavily depend t dependent, obviously on the income from the sail of gas in

europe, and it would reverse the tables. experts think about perhaps a year or so. so it isn't immediately available now for the kind of pressure, if in fact the present conditions continue, including obviously the horrible act of bringing down a civilian airplane. >> you know the players in russia certainly as well as anyone in the united states. what is their reaction to the words that come out of washington from the president? a lot of people think that mr. putin isn't threatened at all by the sanctions, really, or by the chiding language that western leaders used toward him. what is it line when you're dealing with these folks? >> it's obviously the hard shell that grew up in the soviet period never left a number of russian leaders. so they obviously see the great

disadvantage of creating in you the impression that they're being pressured in a way that's successful. they don't want that. we would do the same thing i think if we were until the same sort of pressure. that's the way they will react and certainly will continue to react. they are in my view, very embarrassed by what as happened, and some of their propaganda, some of their language, some of their efforts to shift blame, i think not without a great deal of success at the present time are part of what we see as the game playing out here. i suggested yesterday this might be a game changer. i think it might be. the horror of the event and indeed the miscalculation, and indeed the evidence this shows the separatists are really not under russian control in a serious way. the russians wouldn't do a thing lie this, i think in any deliberate fashion. i know years ago what a mess

they made of things until those circumstances. >> ambassador, thank you as always. i hope to come back to you as circumstances warrant. >> thank you, tyler. and to pick up more on this story, the fbi and ntsb are sendling investigatoring to ukraine to help with the probe at that crash site. 298 people on board that flight. phil lebeau is here with more on that particular part of the story. it will be a different mission given the circumstances, phil. >> it's not clear at this point, sue, when they may be able to get into the debride field. the bbc is reporting some of the investigators, they had to called off work, because there were shots in the area. this is a hot zone and therefore that is the problem you have with getting investigators in there. again, the ntsb and fbi do plan on sending investigators to the debris field. the fbi will be senden an

explosiver. what about boeing which manufactured the 777-200-er. it's ready to assist and send in investigators. that ultimately is the call of the nssb. there are some former investigators who are surprised that the in the meantime ssb would even send in an investigator. >> this is not a convention at investigatio investigation where a ntsb would conduct. we know what brought it down. >> also a lot of questions still about why this plane was on this route flying over a hot zone, if you will. well, the fact of the matter is, this is a popular air route between amsterdam and malaysia, and therefore it was deemed safe by the international air transports association. that's why malaysia airways was flying on this route. now, if you look at what's happened over the last 24 hours, look at the flights in that area right now.

there are very few that are near ukraine. in fact they're to the south down in turkey, a few going a bit to the north, but for the most pasch they're steering clear of this area. the international air transports association's ceo says the airlines will not risk safety and that commercial flights, they assumed it would be safe, sue, because the altitude of the flight was 32,000 feet. there's no way that anything shoulder-fired can go above 20,000, that's why the belief was this would be a safe route. it was deemed a safe route until yesterday. that's the latest, sue. it will be interesting when the investigators actually get into this debris field. absolutely. thank you. almost one third of the passengers on that plane were aids researchers and activists. with you very prominent researchers whose loss is being felt. meg tirrell is here with that peril of the story. >> reporter: reports say there

could have been 100 aids researchers and advocates on this flight, a number cited today by president obama in his speech. they were headed to melbourne for the international aids conference. it was expected as many as 14,000 attendees were plan to go, starting this weekend. the conference says it's planning to proceed as schedule with opportunities to reflect and remember lost colleagues and trends. the impact on the research community is immeasurable here. it's reported that several leaders both in terms of research and advocacy were on board the flight, one member of the community saying the cure for aids may have been possibly been on that flight. clearly a huge blow for the community. tyler? implts meg, thank you. amazon taking a page from netflix, and we will tell you what it will mean for consumers. plus, fedex under fire, the parcel delivery giant facing criminal charges over drug trafficking. what?

we'll have that story, next. moderate to severe crohn's disease is tough, but i've managed. ♪ i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. ♪ when i finally told my doctor, he said my crohn's was not under control. ♪ he said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. and that in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. [ female announcer ] humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened;

as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. if you're still just managing your symptoms, ask your gastroenterologist about humira. with humira, remission is possible. [ thud ] visit tripadvisor rome. with millions of reviews, tripadvisor makes any destination better. with millions of reviews, virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com

we put the law on your side. welcome back to "power lunch." following its impressive second quarter earnings beat. in addition, jeffries raising its price target $5 to $42 a share on the stock. blackstone trading up 3% on the

back of those results. tyler? >> bertha, thank you very much. the service lets users gain unlimited access to kindle books for $9.99 a month. all you can read. bf corporation, the clothing maker says results were led by strong performances for the outdoor and sports segments, sticking with the full-year forecast. nevertheless, the stock a little lower. mellon also beading estimates, that despite a drop in fees. that stock up about 32 cents. sue? we're going to look at gold right now. jackie deangelis is tracking the action. jackie? >> that's exactly right, sue. after a $20 pop yesterday, we're seeing gold change directions, nearly $10, two ways to look at this, according to traders.

one way is to say it's a good thing that gold is staying above 1300, but others say, look, if gold couldn't rally more substantially on this plane crash, then we have to assume that it's going lower from here. meantime, the rest of the metals are seeing declines across the board as well. silver and copper are the worst performers in the complex. sue, back to you. >> thank you, jackie. let's go to rick santelli at the cme and get an update. hi, rick. >> money hag flowing in this for quite a while. all of the issues of the day set aside. the market did what many experts were saying it did. remember we touched 250s. at 252 last week, we're currently trading about two, three basis points down on the week. the gets affected by many them,

with you culprits, it's the bund yield. they have never touched 113. bang of italy lowering the forecast to two tenths. remember those sayers of big growth in europe, well, it certainly does seem to have diminished. it's very important to pay attention to, too, as the issues of the day in bank of thely and ongoing stubbornness with regard to their economy is finally taking a toll. tyler, back to you. >> thank you very much. what do the big money people make of all the uncertainty in the world today. the chief investment officer of lowe's is here to talk about that. he oversees some $50 billion. and is money the main motivator in this current meet crisis? why hamas salaries -- yes, salaries -- have become such a big deal in the global stage form coming up.

thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life.

♪ i voted for culture... ...with a 'k.' how are you? i voted for plausible deniability. i didn't kill her, david. and i voted for decisive military action. ♪ xfinity presents the people's hotlist where you choose this summer's top 100 shows and movies. and all you have to do is watch with xfinity on demand. now through july 23rd. vote! sgloor at:33 past the hour, let's get you caught up. u.s. investigators are on the

way to ukraine to investigate the downing of malaysia airlines flight 17. president obama speaking an hour or so ago about hi conversation with vladimir putin yesterday, explaining that more sanctions are on the way because russia's cooperation with the separatist it is. it's unclear who fired the missile, but u.s. officials say it surely came from a immediate union-range anti-aircraft battery in russian separatist territory. if the listen closely to this tape, you can hear the gunpyre. despite the ground invasion, hamas has fired more than 80 rockets into israel. israel says it has killed 20 hamas fighters. in his first comments since the ground attack, israel's prime minister said the operation may need to be expanded, and that it will take some time. sue? >> it is markets have proved

reville yen today, though, ty. dom any chu is here with me. first we go to morgan brennan at the nasdaq morgan, over to you. >> yeah, that's right, the nasdaq is up today, about 1.2%, taking a quick read here to 44.14, up about 51 points right now. i want to hone in on biotech, because we had those comments earlier in the week from fed chair janelle yellen about certain groups being overvalued. it's been a back week for biotech stocks. s the spede or xpi, both of those down for the week, but rallying today. here are some of the names here on the nasdaq trading higher today and outperforming the markets, amgen announcing positive phase 3 results. gilyard mentioned earlier, analysts updade, that's up about

4%. bioagain, celgene, rejenneren and alex on. still down for the week. >> thanks, morgan. appreciate it. trading action here, post 9, dominic chu, and kenny polcari. dom highlighted it earlier this afternoon, but the market is proving very resilient in the face of two large global conflicts. >> we had that nervousness, and a lot of it is generated. it's the automation that allows the reaction to happen so quick, the smart algorithms that create those orders based on news headlines. after you sit and think about it and really consider the implications, is it an overreaction? or is it not? so the market today tell us that yesterday's news was yesterday's news, they're not worried about it day. >> i wonder if they're underestimating it, though. >> we've been speaking about this and other traders as well, about this idea there's a hunt for a catalyst in the marketplace. everyone wants to buy, they want to be bullish, but waiting for

the pullback. every time we think it's going to happen, we were looking for make judd two days of down market in a row on huge geopolitical headlines that has no carry-through today, and all of a sit maybe people pamplly invested, but not yet getting back in the market. that's one of the reasons volumes are as low as they are. >> but the bond market very quickly is telling you something to be worried about. >> and i think it's the whole israeli/gaza thing. the malaysian airline is not the thing to be worried about. it's the potential to implode in israel and gaza. the prime minister already said it it's potentially a long fight, right? >> absolutely. thank you, guys, very much. back up to ec. berta coombs has a market flash. >> we have a winner for this week. information technology, the s&p i.t. sector, the best performing

sector trading up about 1%. for the week it's the best performer. a lot of that has to do with some of the big-name earners. flir systems followed by google. it beat on revenue. they're getting people back into tech today. tyler? >> bertha, thank you very much. with us is richard scott, chief investment officer as lowe's, he manages about $50 billion in total assets over the insurance platforms, pensions and more. mr. scott was with us the other day at delivering alpha. we're delighted you're back with us again today. >> thank you. >> yesterday was obviously a big day for geopolitical ehaven't. how does an investor like you process those events. did you do anything yesterday in reaction? i want we did not do a lot yesterday in direct reaction to the events. the vast majority of the money we manage is related to our

insurance subsidiary. that is truly invested against a liability structured benchmar. we do try to be opportunistic. we did not buy into the rally on rates yesterday, though we did put money to work today on the resulting sell-off. in general we are investing against some intermediate and longer-term benchmarks, and that way we can lock in a good return, sort of irrespective of the rate direction of the rates market. >> when we were speaking the other day, you mentioned a very high percentage of the assets you run are in fixed-income securities. why don't you tell you what that percentage is, and then talk a bit about how you were getting ready, what you think you will do strategically and tactically, as both the bond buys program of

the fed winds down and interest rates may start to rise a little bit next career. what are you going to do? >> if you look at the structure of the current portfolio, it's relatively ladered. we are running two businesses. one business is a traditional insurance business, where the average life of the liabilities is around four years. the other is long-term care, and similar type products, where the average life is very long, 15, 20 years or more. so we run two fairly distinct portfolios. both those portfolios have ongoing cash flows into them. in a strange sense, raising interest rates would actually improve the profitability pictu picture, because when you get right down to it the the liability side cost is more or less fixed. it's what we can learn that provides the opportunities. >> the income that was come in. that would go up, so you would actually have a better position,

right? >> correct. >> that's an interesting point of view. how do you expect the fed will start to raise interest rates? do you have a forecast as to when they may do it? or is it not something you think all that much about >> we do, because it affects the shape of the curve which tactically affects some of what we do. i'm basically in the crowd that -- and it is a crowd, i might add, that believes that sometime the first half of next year, you're likely to see the first affirmative increase in the fed funds rate. we think the fed will complete their tapering program in october, following the october meeting and begin raising rates somewhere three to six months thereafter. >> thank you for coming back, and we appreciate your patience as we expected to spend more time, but governor christie was so engaging, you got kind of

bumped out by your fellow jerseyian. is this fighting all about money? why so many people in the middle east are so worried about the salaries of hamas employees. that interesting angle of this story is next, on "power lunch." r credit report site and i have a problem. i need to speak with your fraud resolution department. ugh, we don't have that. what should i tell him? just make that super annoying modem noise... (shuuuuuuuh....zzzzzzzz...de ee...dong...shuuuhh...) hello? not all credit report sites are equal. classic. experian.com members get personalized help plus fraud resolution support. join now at experian.com. with enrollment in experian credit tracker.

♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us. tdd#: 1-800-345-2550. life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities.

tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. investors riding the rails. check out kansas city southern, the stock moving higher after the rail operator reported better than expected revenue, as it shifts more agricultural products and cars, cars being sold. kansas city is a good barometer for the economy in that respect. currently trading higher by 1.25%. sue? >> bertha, thank you. despite israel 'ground invasion, hamas is managing to fire more than 80 rockets today. israel launched illustrate ground forces yesterday, after

hamas managed to infiltrate into israel yesterday, staging near a small israeli town before being wiped out by an air strike. israel's prime minister says the mission is design to destroy the tunnels and knock out the rocket launchers. he says it might tail a while. the ambassador is israel's council general right here in new york it's a pleasure to have you with us, sir. >> thank you. why has it been so hard to end that particular missile strikes and the threat? >> two reasons. the first is hamas went underground. they created a network, as you stated correctly, of 1,000 tunnels. some of them are one mile locks some of them penetrate under israeli territory. squads of terrorists pop out of those tunnels trying to attract innocent israeli victims. many of those are being used as storage facilities. that's one reason. the second reason, which is more

important than just the need to have troops on the ground, is the fact that we are operating in the most surgical fashion possible in order it minimize loss of life of innocent people. this is perhaps the most transparent military operation of late we took the time, energy and resources to inform the residents of the gaza strip about our intention days ago. >> let me turn you to another aspect selfthis conflict. there are those who have put pen to paper and basically said that one of the reasons that this conflict is going on is that hamas as finances have been cut off. as a result of that, they can't finance themselves, so they're trying to draw attention to their particular situation by launches these attacks. is that a viable explanation or not? >> in the middle east we have

lots of conspiracy theories. i don't know the answer to your question. all i can say is this, hamas entered this whole situation, imposed on us this escalation perhaps out of weakness. they lost the support of syria, lost the attention of iran, they lost their ideological twins in egypt, the islamic brotherhood and the palestinian authority has started to distance itself from them after they abducted and murdered brutally three israelis. maybe the salaries have something to do with it, i don't know, but i can tell you one thing -- hamas has not changed its core ideology. it's not about building a viable economy in gaza. what should the world do to address, if there is the financial aspect of it, what should the world do? how long prime minister netanyahu has said this may take a while. how long do you expect this particular conflict to go on? >> you're asking two different

questions. >> right. >> the first is what needs to happen. mahmoud abbas, the leader of the palestinian authority, who is go ahead kregt for advocating nonviolence. he has to break the pact that he formed with hamas. you can't speak the language of peace on the one hand and other form a political alliance with a terrorist organization recognized as such by the entire international community. the second thing, the other question about what can be done on the money issue. if indeed this is the case, what you described, we would expect the palestinian authority to use this as leverage against hamas. at the end end of the dalles, they're viewing -- no less than israel. >> sir, last night your ambassador to washington told or john harwood that, with respect to the images of killed children on a beach, that his view waust hamas was cheering that. do you agree with that?

>> well, you know, former president bill clinton just gave an interview in india. i just saw it before i cam into the studio, where he actually said very, very clearly, this has been hamas's strategy for a long time. they are perpetuating the suffering of their own people, as horrible as it sounds, this is what they do. why? because of this ill-conceived notion that this may put pressure on israel, international pressure, maybe further isolate israel politically. let me tell you, we're not impressed by this. we will do whatever we can to protect our people, 1500 rockets in 11 days. bev me, these are not fireworks. these are real rockets that are meant to kill real people. >> mr. ambassador, i know you're a very busy man, especially at this time. thank you very much for spending time with us on "power lunch." we appreciate it. >> thank you. >> ty? sue, trouble on board for fedex, the world 'second-largest

delivery company, indicted as the justice department investigators illegal pharmaceutical shipments. we asked today, is it fair to sanction a carrier like fedex for the content of the packages they're lugging? go vote now. the results when we return. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. ♪he cadillac summer collection is here.

♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style.

yeah, citi mobile. pay the dog sitter? and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app. could help your business didavoid hours of delaynd test caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90.

comcast business. built for business. check out aalongian air. it's working to resolve a computer system. they have an outage. that's slowing check-ins and causing delays. the stock, though, up 1.8% just about. tyler? thank you, trouble on board for feddics. the world's second-largest package carrier has been indicted. scott cohn has the story. >> two weeks ago we showed you how buying drugs online can be a game of prescription ruoulette. today fedex is caught up in that. sometimes making deliveries to parking lots and schools, even though the indictment says senior management had been

warned by u.s. authorities. fedex says it is innocent. we are a transportation company, we're not law enforcement, the company says. the company says it has a long history of cooperating with law enforcement, but notes it handles million of packages every day. shares took a hit after the indictment was filed. it's rebounded a bit, in part because rival u.p.s. settled a similar claim. his wife sheryl was addicted to painkillers. she overdosed and died after ordering drugs on the internet with no prescription. >> an online pharmacy to an addict is candyland. there's -- nobody is there saying you shouldn't be doing this. they come via fedex, they come to any address you want to put them to, as long as there's a credit card to pay for them.

>> you can order prescriptions on safely. we got lipitor at a huge savings, though one did substitute a generic drug. the shipments we got, tyler came by regular mail. >> it is a bizarre sort of netherworld to me. >> it's tough if you're trying to get legitimate prescription drugs and save money, but at the same time somebody that has a problem can run into these issues. the sure is whether fedex is doing enough to police it. >> scott cohn, thank you very much. in today's yahoo finance question of the day, should carriers like fedex be held responsible for the content of their packages? 15% say yes, they need to be held accountable for everything. 43% say no, it's too much of a burden, and 43% say only for explosives or items that directly endanger others. that's what you say. meanwhile, what's coming up on "street signs"?

brian? >> thank you very much, tyler and scott. by the way, coming up on the show, we're going to talk about the things outside of geopolitical concerns that two of our guests are worried about. the real reason rupert mer talk may want to buy time warner. and the one stat -- all of that is on stein sometimes. we'll see you with a bit move. >> we have more coming your way. where are you? there you are. hi. der vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours.

at every ford dealership, you'll find the works! it's a complete checkup 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.

take them on the way you always have. live healthy and take one a day men's 50+. a complete multivitamin with 7 antioxidants to support cell health. age? who cares. my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

despite some geopolitical headwinds, the dow is proving resilient as well as the s&p 500. dow is up, s&p 500 is up just under is%. the nasdaq is the winner in terms of percentage moves, followed closely by the russell 2000, which is up is.25%. the money has been going into the bond market today from the very beginning of the day. the yield right now is at 2.48%. ty, that's what they're watching. they'll see whether or not that yield moves beautiful the 2.5% mark, and that might move the

market a little more than a lot of people think. that's what i'm hearing down here. >> it's the direct opposite of what we saw yet. what was down yesterday seems to be up yesterday. what was up yesterday, a little bit down today. an interesting weekend ahead. that will do it po "power lunch." >> "street signs" begins now. stocks bounce back even as russia remains on edge. hi, everybody i'm brian sullivan. mandy is off today. melissa lee is in the house with us. plus we list the biggest concerns for to being your side of russia in the middle east. the real reason rupert mer talk wants time warner. the one stat about ibm may make you think differently. >> trademark infringement going on over there.