why? >> i think it's going higher, scott. >> josh that's profound. that does it for us. we are watching the markets today, off the worst levels, dow is still down 75 points. "power lunch" picks up that story and much more right now. halftime's over. the second half of your trading day begins now. scott, thank you. a fascinating and incendiary conversation with bill ackman. we will be watching that story, herbalife, as well as last week, of course, the markets largely shrugged off the ground war in the middle east and the shooting down of that malaysia airlines flight 17. but there is a growing international crisis, the markets are paying especially close attention to and we will tell you about it in 30 seconds. also on our radar today, corporate results and a lot of them, netflix, apple, facebook, mcdonald's, du pont, verizon, pepsi, caterpillar, lily, 3 m, amazon, visa, the list, as you get it, goes on and on. we will be reporting about them

all week long. we will get you ahead of the trade there. and big trouble in china for two big american brands, mcdonald's and yum under fire for poor food quality. both stocks are down today, largely in response to word out of that very important market. and the terrible drought in california may be about to get a lot worse. we will tell you about that. first first, let's check in with sue at the new york stock exchange. sue? >> good to see you, ty. the stock market starting down on this first trading day of the week, off the worst levels of the day only off 74 points now. bob pisani joins me here on the floor of the nyse on the emerging threat from overseas, the potential really to rock markets around the world. and is something that you've covered for us before in its initial stages. things have changed. >> the middle east is a hot investment plane, property markets are on fire there sunday, the dubai stock market

dropped almost 6%. we covered a little bit in sunday trading, cube bind the middle east, they trade friday and saturday are closed days and they begin their first day of trading on sunday. well, the mark the closed on thursday and then opened on sunday down 6%, up a little bit here today. largely, that's on concerns of potentially overheating property market, so arab tech this is a big builder that's operating in that part of the world, was down nearly 10% at one point on sunday. there was a little bit of concerns that ones of the major stakeholders, aybar investments, did not confirm a report where there had been speculation they would be increasing their share in the companies and that stock dropping, as you can see, about 10% there, a big issue over there. now, european banks retreated several years ago on emerging markets and middle east investments have been coming back into the middle east in a big way. they are all down and sue, largely on greater concerns sanctions in russia, hurt businesses from banks, deutsche

bank, british banks big in russia, lloyds bank, ing of ireland, german stocks are trading at the lowest levels since may, that's largely on these concerns about the russian sanctions but also some broader general weakness in europe as well as in the middle east. finally, i just want to note here, the s & p 500 opened down, traded down and bounced off of that when president obama came on the air and did not any additional sanctions against the market -- russia, we saw the markets bounce off. >> to be clear, one of the reasons the market is watching dubai so closely is the european banks have basically issued debt and other paper to some of those middle eastern countries, specifically in dubai and if that goes south, then they have exposure. >> a lot of these banks try to move away from the middle east in the last several years, four or five years ago and have been coming back in a big way. they are trying to figure out how to get in because the markets have been improving there >> right. >> so, it's a major issue. the point is these banks don't need any additional headaches

but russia to deal with now. >> bob, thank you vet. bob pisani, see you a little bit later. about a quarter of the s & p, nearly half of the dow this week, some big names, netflix, apple, facebook, boeing and amazon. they are all reporting. joining me now is jack rifkin, cio at altergus. i'm close. you'll correct me, i know. and hayes miller, i have never been able to say that correct slick, head of global asset allocation. not having a major impact on the markets. let's take a listen. >> for two reasons, one is the market believes they are containable so that while -- while there are tragedies they can do not spill over to border. >> so this is the consensus thinking of the markets now? >> number one. which may not be true. >> some go further. the ambassador says this is a turning point, positive turning

point for the markets in russia. the second issue say the markets say even if there are spillover affects, it doesn't matter. earnings are strong and the fed is there. >> hmm. jack, do you agree with that? >> well, the fed is there. i don't necessarily agree earnings are strong. earnings are okay. i do think that these androgenous events affect the market in the sense that they trigger what may have been an internal problem with the market. i don't see that this by itself is a major problem here. we need to look at the fundamentals of the market, which on balance are good, maybe not as good as some people would like, but they're good. >> hayes, do you agree with that? >> well, i do think that what's going on in russia right now and in the ukraine does now begin to take effect on the russian market. i think the sanctions are going to be more scrutinized by investors and i do think that although the russian market is

extraordinarily expensive, we have to be a little cautious and that may, in fact, also apply to other eastern european markets as well, but other than that i think that mohammed's point about contain ability is probably a fairly sound one. >> you said things looked go, are you having problems finding places to allocate cash now? >> difficulty finding sectors to allocate cash. i'm finding individual companies, managers are finding individual companies as well. we have had profit margin forecasts coming down all year, everyone has to look stock by stock here. someone forced me, i would look at energies, industrials, financials and possibly, some of the consumer stock. >> okay. hayes, i notice that you're overweight japan, which i find an interesting play, because so many people that i talk to say they like asia, ex-japan. why would you overweight it?

>> well, you know exjap, japan first time in my car veer a buy. >> mine, too. >> i'm sorry. yeah. you know, it's the only overweight market we have right now. i don't want to take up too much time talking about the three arrows but fiscal and monetary policies we think are pretty strong. the big story is about perform and we believe that corporate governance reform in particular is much stronger than people believe it is. and return on equity for the market, always issue, always traded around 7%, now trending its way to 10%. it's currently above those preferable european market, and buy that market today on a forward pe of less than 15, which is for a major market, the cheapest available. so i think it's going to be a structural play. it's gonna take probably a number of years for it to play out and it will be punctuated by periods like we saw earlier in this year, but i think it's a structural overweight. >> all right, thank you so much,

hayes and jack, pleasure to have you with us. appreciate it. dominic chu from market flash. >> sue, check out what's happening with eye tron shares, the stock moving lower after analysts downgrade the provider of metering systems to utility companies two notches to an underperform or sell rating. it was previously a buy. now, in part, that's due to lower-than-expected margins and that stock you can see down toward session lows, off by nearly 8 1/2%, tyler. back to you. >> dominic, thank you very much. nbc news is reporting in less than one hour, malaysian officials are expected to receive the black boxes from malaysia airlines flight 17. president obama again calling on russia to force pro-russian separatists in ukraine to allow for an international investigation into thursday's shooting down of the airplane that killed all passengers, 298 people aboard. phil lebeau covers airlines here for us in the united states. so can this airline, phil, stay

in business after two terrible tragedies in just four months, of course the other being the disappearance of that airliner, still missing over the indian ocean? >> i don't think it's going to you the of business, tyler. keep in mind, however that malaysia airlines, even before this incident and mh-370, which disappeared over the indian ocean, it was struggling to cut costs and to turn a pro. and now you've got the fact that they are fighting negative headlines around the world, which is obviously gonna hurt perhaps passenger load factors. maybe fewer people flying the airline. you've also gotten a lists questioning the financial options for this airline as a whole. keep in mind that in the first quarter, malaysia airlines lost $139.5 million and they've had three straight losses, three straight years where they've reported a net loss for the entire year and then you have passenger yields under pressure ever since the mh-370 plane disappeared over the indian ocean. fewer people were flying the as i line that has started to pick up within the last couple of weeks as they've cut fares. take a look at this stock from

malaysian airlines over the last ten years. now, people might be looking at this and saying, a 20-cent stock here, but tough consider that this is over the last ten years, the pressure that this airline has felt. the bottom line is this, tyler, the state will step in with malaysia airlines. if it gets to a point where they have to consider bankruptcy or going private, the state of malaysia will also step in. they are not gonna let this airline go out of business, however it is going to struggle and this is the latest problem that they are facing is this negative perception out there that there's something wrong if you fly malaysia airlines. >> and a stock that has lost something like 95% of its value over the past decade, as you just pointed out. phil, thank you very much. >> you bet. the water crisis out west may be about to get a whole lot worse. and food safety fears involving two of america's biggest fast food chains. jane wells and sarah ison on those stories. jane, you first. >> tyler, with bad news, when it rains, it pours and that's what's happening in california,

with the bad news, not with the rain. and could affect your food prices. we will talk about that after the break. sarah? >> yeah, speaking of food, front news for yum brands and mcdonald's. expired chicken and beef from a chinese sun is plier fueling major concerns about sales in that key market, i will have the story on the latest food scare out of china hitting major american companies when power lunch returns. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. ♪

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welcome back to "power lunch." we are watching shares of manpower group. this stock is moving lower despite the fact that the staffing company posted better-than-expected second quarter results and provided a third quarter forecast above street consensus. while hiring in europe did pick up it did have a weak performance in france. you can see the stock off by 4%. profit taking could be one of the reasons the stock up over 20% just over the past year. but it's also flowing into other hr staffing-type names taking a hit as well here, kelly services on assignment, all losing ground you can see there in today's trade. tyler, back to you. >> thank you. california in a severe drought, as you probably know. the golden state now is taking measures to cut water consumption, fining residents for excessive use, but looks like now, the conditions are only gonna get worse out there jane wells is in los angeles with the latest forecast. hi, jane. >> it's funny about that, tyler, because in one community, someone let their lawn die is

being cited by the city for being an eyesore. so you know, welcome to california. it's been weird around here this weekend. it was humid for us, even had a sprinkle. whatever. because take a look at this map. over 80% of california is now in extreme or exceptional drought. that's either the dark red or the red. and that's up from a week ago. experts say it's only gonna get worse. uc davis predicts drought will cost the stated 2.2 billion and cost over 17,000 jobs, though many of those are seasonal or part-time jobs. california is the number one dairy state and davis estimates dairy farmers and ranchers could lose over $200 million. crops, though, will take the biggest hit, predicted to lose an estimated $810 million and most of the fresh fruits and vegetables eat come from california. meantime, popping for groundwater, digging new as well as, if you can even get a well during out to your farm right now, demand is so high, could top $450 million. water's being sold at auction at unheard of prices.

the daily news reporting that water, which in a normal year, whenever we have one, go for like $60 an acre foot, is being bid up to over $1,000 an acre foot. here are some stocks which could be impacted, diamond foods and white way, which depend on california's al and moss, campbell's soups which needs california tomorrow mate toes, whole foods which needs the produce, i can go on and on, because farming is a $50 billion industry here. back to you. >> i completely understand, jane. let's hope you guys get a little bit of water out there some time soon. >> thanks. shares of mcdonald's and yum brands taking a big hit today. mcdonald's down almost a full percent. yum brands, 3 1/2%. facing food safety fears in china after the discovering meat went up to par, that's putting it nicely. sarah eyesson here at post 9 with me. not a pretty story. >> looked like china sales were coming back, another body blow to the two largest american chains that operate there,

mcdonald's and yum brands saying they have stopped buying meat from a shanghai supplier while shorts investigate allegations that the supplier sold the restaurants chicken and beef past the expiration dates. both companies apologized and said the move would result in actually shortages of some menu items. the scare is all too familiar for the companies much the biggie back in december 2012, antibiotics levels were messed up in chicken batches supplied to yum and mcdonald's. this was a huge hit for yum brands, with half of all of the company sales coming from china. yum china just starting to come back with seams up 15% last quarter. but investors weren't fully convinced because on the call last week, executives said sales in china continue to be difficult to predict. and that sales growth will be at the low end of guidance range. well, this certainly makes it even harder to predict. adds to those concerns. trust has already been lost for customers in china for this change. see how they react to this

latest scare. as far as mcdonald's it has more than 2,000 locations in china, a small chunk of the 35,000 around the world, but china has been seen for mcdonald's as a source of growth because we have seen it struggle in the united states. last year, china was a struggle, same-store sales dropped 3.6% for the year. of course, we will be looking for any commentary on whether this will hurt mcdonald's. they report earnings tomorrow. they are getting hit pretty hard, especially yum brands, heavy presence of kfc in china. >> thank you very much. the global calls for tougher sanctions against russia are getting louder and louder following the downing of that malaysian flight, mh-17, by according to u.s., pro-russian separatists, killed 198 people on board. but what can be done and which u.s. companies have exposure to russia? steve liesman and robert frank are on the story. steve, you first. >> thanks, tyler. russia isn't the u.s.'s biggest

trading partner but a lot of big companies have done a lot of work over there. what happens to them if this economic tat for tat fight gets worse? mcdonald, visa, ford, pep circumstance the full list and what's at next and what's at stake. >> and the russian ol leg gashing could be paying a price for ukraine. tell you which billionaires could be sanction targets and where they may be hiding their money overseas, coming up right after the break. ♪ ♪ 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. the ibm cloud is the cloud for business.

welcome back to power lunch. watches shares of debeet ta health care, off its lows after raymond james down grades this stock to a market perform from an outperform rating, citing uncertainty related to executive changes at one of its division, see shares down 3 1/2% on the day's trade, sue. back to you. >> thank you very much, dom. video in a short time ago of the israeli army detecting and blowing up hamas tunnels leading from gas zoo in-- gaza into israel. take a look that video sent to us by the israeli army. israel announcing a short time ago seven more soldiers have been killed in that fighting. secretary of state john kerry is trying to mediate a cease-fire in egypt. egypt proposeded a cease-fire last week that was accepted by israel but then rejected by hamas. ty? >> sue, thank you. president obama speaking earlier today about the situation in

ukraine. more calls for tougher sanctions against russia. steve liesman joins us now. he spent many years over in russia. he has been looking at the u.s. companies and there are quite a few that do big business there and our robert frank is looking at what the oligarchs are going, potentially to influence putin. steve, you first. >> it's really interesting, tyler. some of these companies got their first foothold in russia when i start there had, so, i rook at these numbers both ways. one is that they're rilltively -- they are not insubstantial numbers but certainly the hopes and dreams of a lot of these companies when fell thirst start were a lot bigger 20 years on. mcdonald's, $2.5 billion of revenue, john deere, 1.7 billion. visa, 470 million, doing a all right of the transactions over there, credit card transactions. ford trying very hard over there and has a couple of plans, reduce some of its employment. gm, one of the first dealerships open american goods, gm dealership in moscow.

citigroup, $1 billion. pep circumstance 5 billion. they were one of the earliest companies in there, the 1970s, post detente, beaten by coke and then a comeback there, mondeli. >> and abbott, exxon mobile, 500 billion investment with ross nav, offshore project. that's big number. the oil companies in a big watch what i see are the hopes in the '90s this decade, this number would be bigger and and that essentially, the issue of economics would bind the two countries together. tyler, it never really happened the way the policymakers hoped it would one of the reasons is put unwas very, very -- what's the right way to put it, reluctant to really give some of the natural resource games -- plays to some of the u.s. energy companies and been very nationalistic about opening up

russia to foreign -- >> other companies, even in the consumer area like mcdonald's expep aand so forth. ample all right of the companies have trouble going in there because of some of the corruption in the country as well. >> steve liesman, thank you very much. to robert frank now who is going to explore for us whether the russian oligarchs have any real sway over putin in the midst of this crisis. >> yeah, to steve's point, the people that have done really well are the nationalistic oligarchs, pressure is growing to make them pay a price for the country's politics. british prime minister david cameron telling russian president vladimir putin yesterday in a phone call that his "cronies" could pay stiff sanctions unless they change course on ukraine. some british and american officials are pushing for asset freezes, travel bans and capital restrictions on companies or individuals that support or influence putin. this would go way beyond the current sanctions which target the billionaires only with direct ties putin and military campaign in ukraine. but russia's richest men, they aren't likely to become target

because they can't be tied so directly to putin. officials i spoke with say you can't sanction someone because they are a russian billionaire. as for the rest of the russian rich, they already have shielded a lot of their fortunes overseas, russians move $75 billion overseas in the first half alone. these more than all of last year and real estate experts tell me the russians are still buying big in new york, florida, new jersey. tyler, russians were one of the top ten buyers of real estate in the u.s. last year, so that money, a lot of it is coming here. >> want to tie the two stories together, all this revenue back here around yet this incredible influx of money from capital play from russia, i think on net, whatever happens, and there's no sense if there will be retaliation from putin, ultimately, the u.s. is a win. >> more money comes out. >> just financially speak egg. >> if a share of that $75 billion came here, that could be much bigger than the -- >> you know almost certainly end up predominantly in dollars. >> robert, steve, thank you very

much. go down to sue and check in. >> well, the gold market's closing, ty, take a look at how things are faring as we go into the close. com next up 4.70. another loss in palladium and the platinum market up about $3.50. as for a check on the bond market, all of the international tensions, we have seen yields drop, the yield falling below 3.24% in one of the key measures, but let's take a look at the ten-year note, where the yield is 2.47%. 2.47% on the trading session. it was the 30-year that moved below the 3% mark, 3.25% earlier this after into. you are up to dayton at bond markets. let's recap the headlines for, rj reynolds hit with a $23.6 billion ruling. the nation's number two cigarettemaker says it will fight the florida jury verdict. experts say the damages probably will not stand. the lawsuit was file by the widow of a smoker who died of lung cancer. this comes amid a major deal in

that sector with reynolds american, which owns reynolds american, buying lorillard for $27 billion. the stock right now, both to the downside. suntrust down despite earnings estimates. growth in the loan portfolio helping the result, down 2.66%. hasbro, meeting second quarter estimates, revenue short. the ceo will be on "fast money" at 5 p.m. eastern time to talk about the toy pipeline and the outlook ahead for sales. there he is. see him. 5 p.m. eastern time. stocks off their earlier lows, now down only 46 points. bob pisani, kenny polcari here with me. how does the market feel going into this week? a lot of earnings but also have a lot of international tensions. >> right, so today, much more about the tension, not a lot of macrodata, the earnings that we have seen come out, you named a couple of them, causing a little bit of frustration. i think once again, the focus is kind of on the geopolitical, because that's what's really in the news much as we have seen, it's probably going to be short lived, saw this happen last

week, thursday was a down day, friday, just took the markets straight higher again, after investors around the world kind of got used to it, almost a sad statement that you become immune to it. >> you see the markets -- the markets don't like the sanctions. you can see as soon as president obama finished talking, the markets started lifting, when it became clear there weren't going to be any immediate additional sanctions against russia, even though that maybe the right thing to do, the markets are concerned that's going to hurt business. seen the german stock market the lowest level to since may on these kind of concerns. absent that, look at the earnings picture. we are 20% of the way through the earnings situation and they are holding up a lot better than anticipated. >> 75% of them have already beat the sometimes and about 70% of those are issuing better forward guidance. all that's very positive, which is yes think, you know this is once again going to end up being more short term. creates an opportunity for the long-term investor. >> the long-term investor. >> absolutely. >> thanks, guys. appreciate it. up town to courtney at the nasdaq. hi, courtney. >>ic there, sue.

the nasdaq composite and 100 still in negative ter attorney general as bob subjected, markets moving a little bit higher on what president obama had to say about the circumstances overseas in russia and ukraine, though certainly also keeping an eye on what's going on in the middle east. monster beverage though getting a downgrade today, equal weight at morgan stanley. the company saying actually, there could be -- morgan stanley, that is slowing u.s. sales growth and that's concern really weighing on shares of monster beverage. there's also trouble in toy land, sue, i know you mentioned hasbro, the ceo will be on "fast money" and shares of mattel pulled down. and look at shares of gopro, skip down to that getting initiated today by at least six different analysts, mostly hold, but two buy shares moving higher. back to you. >> courtney, thank you very much. you know, shares of monster, as courtney just mentioned, moving down. we are going to talk a little bit about that later this hour. also, the economy, we know

how airlines are nickel and diming and 25 dollaring can customers to left. but do fees make good investments? call it the obstacle economy. morgan brennan outside, hanging by a thread. morgan? >> we are putting you the power in "power lunch" today. this is the fastest growing sport in the u.s. and it involves ropes like the one i'm hanging from. we will tell you all about it when "power lunch" returns. ♪ ♪ ♪ [ 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.

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feel like you're being nickled and dimed more than ever, chances are you are being nickled and dimed and 10 and 20s it is part of the economy. phil lebeau looking at airport security fees going into effect today. dom chu looking the fee-based companies and whether they are actually a good investment. phil, you first. >> you know, tyler, it's not hard to find people complaining about fees when it comes to flying and they have got a new one to complain about. starting today, the tsa is raising the security fee for your tickets. it's going up from $2.50 per flight up to $5.60 per flight and then there's no cap on. this it used to be you wouldn't pay more than $10.

well, now depending on how many legs you're flying there is no cap there the higher fees are expected to raise an additional $16.9 billion for the it sa, which, by the way i was not raising enough money to cover security fees in the past, but this is going well beyond what they need. and the airlines for america, the lobbying group for the airline industry, they're not happy about this because they're of the belief that ultimately, this is gonna force people to make a choice about whether or not they want to fly. base fares between 2000 and 2013 dropped 8%, look at that, taxes including tsa security fee, up 49%. now the higher tsa fee could hurt demand with travelers in theory, according to the general accounting office, when you take a look at the possibility of people saying, you know what, everything in the end is going to make me fly a little bit less. in fact, the gao report says the higher fees could reduce demand by approximately 1% over the next couple of years. doesn't sound like a lot, but that's about $26 million. having said that take a look at

the airline index, it continues to move higher. i think there are other concerns for investors in the airlines, tyler, other than the tsa fee, but there's no doubt, people are not gonna be happy about. this they are already complaining and that's gonna continue. >> no it's really true. you break apart a ticket exparticularly on an international flight and you see the portion represented by fees and taxes, it's amazing. phil lebeau, thank you very much. >> and only gonna continue. >> you bet. dom now, are fee-based companies or companies that rely heavily on fees, whether it's a mutual fund fee or an airline, are they better investments than the norm? >> it's hard to say, because those fees represent usually just one part of the revenue or profit structure for any carrier, any one industry group. but we picked out three of them that are more heavily reliant on fees or perhaps just more well fees. like you said, pick it off where where phil left off, the airline stocks, since the march 2009 financial crisis lows, we've known every stock has had a nice upside runner, just before he one of them, but some have done better than others.

airlines, at this point clay fee associated-type industry, you can see here on the one happened, alaska airlines, not a major, major, per say but a larger airline in this country, it's up nearly 1300% since the crisis lows. meanwhile, you take a look at a stock like skywest airlines a smaller, regional jet-type operator, it's up, but only up about 36%. you can't just say that fees one way or the other make a good investment. tough look at the fundamentals as well. alaska airlines doing very well on that front. the other side of things, we think banks as well, right, wells fargo and hudson city bank corps, wells fargo, up 412% since the crisis lows, fees that we they deal with as well on their side banking side of things. hudson city, the smaller side, only 1u7 3% the same amount of time. here's another one, this is a little bit tougher to compare this is credit cards, capital one and issuer, credit card company, is up 839% since the crisis lows, meanwhile, visa, which is not an issuer but a credit card transaction

processor, is up 340%. so despite the fact they all charge fees, tyler, got to be specific about the types of companies you're dealing with as well as the overall microeconomies they all operate in, because some do better than others, can't just say fees make something a better investment. >> all right, dom chu, thank you very much. sue to you. crawling through the mud, climbing up ropes, obstacle course racing is all the rage these days. is it a fad or a trend that's here to stay? well, our morgan brennan has other sneakers on for that part of the story. look at you. you go, girl. >> i'll tell you what fad or not, it's not all fun and games. this is a fast-growing business. we have got corporate pop is source and media giants getting involved. we will tell you who, right after the break. >> you need a lot of energy to get that -- go through that course, which brings us to our first i pow-wow question, energy drinks, should they be regulateded more heavily?

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welcome back to power lunch. who is in the mood for a roller coaster? check out what's happening with six flag shares a five-month low, a downside here, after reporting second quarter revenues that were shy of wall street estimates as attendance at theme parks fell 8%. that stock, you can see there, off session lows, still down about we call it 6, 7%. in a programming note, six flacks ceo james reed anderson will be live on closing bell beginning at 3 p.m. eastern right here on cnbc. we will get a nice look, sue, about that roller coaster economy. back over to you. >> i look forward to it very much, dom. the spartan race airing this week on nbc, and you know, last year, about 3 million people crossed an obstacle course race finish line. that's more than all half-marathon and marathon finishers combined. so some people say it's a fad, others say it's a trend that's here to stay. morgan brennan, as you know, is at cnbc's spartan course, which

is right outside our headquarters in englewood delivers. she is breaking down the numbers of what is really a growing sport, morgan. >> it really s i will tell you, i have been breaking a sweat, too this is not for the feint of heart, but this is the fastest growing sport in the u.s. right now, you just mentioned 3 million participants last year, that's compared to only 50,000, an estimated 50,000 in 2010. now, take spartan race, the company was founded in 2010 by a former wall street trader, joe desena, four years later, it's operating in 17 companies with 120 races plan in order year and races average about 15,000 participants. desena tells me he is looking to expand as quickly as possible. >> a long-term plan was to reach more people and without an nbc sports, without a reebok, it would be very hard to go it alone. and with them, we will just reach more people, reach more countries. we are in 17 countries now, the goal is to get to 42 countries as quickly as we can. and turn this into a legitimate

sport. >> so, 42 countries is the amount needed to be considered as an olympic sport and actually, the industry's newly formed international obstacle racing federation is already will be lobbying for placement in the 2020 olympics. other companies that are in this arena, tough murder and warrior dash, and with such explosive popularity, we've got corporate sponsors signing on to back all of these races. pfizer's advil sponsors tough murder and reebok is the title sponsor for spartan. our sister network, nbc sports, will start broadcasting spartan races later this week. desena tells me all of this is fostering a cottage industry. we have got gyms with obstacles for training, specially designed sneakers, even ropes like the ones here on this particular course and he estimates that's worth about $60 million and growing, but there are two potential hurdles facing this industry. the first, injuries, critics have been calling for more safety regulations and the second is potential market saturation, as more competitors

jump into this space to sue what could be a very limited number of people willing to run around and do all of these extreme obstacles. sue, back to you. >> all right, morgan, good luck out there. we will see you when we get back. all right, ty, up to you. >> you do need energy to run one of those courses. monster beverage, the energy drink company, taking a hit today. the shares down more than 3% right now, volatile year for that company. the energy drinkmaker today also downgraded to equal weight from overweight at morgan stanley today. the firm also lowering eps estimates due to concern over slowing u.s. sales growth, saying they now see a balanced risk/reward around believe the valuation is appropriate. that is wall street speak right there, isn't it? >> [ inaudible ] becoming potentially mature. >> a mature business. the other news here, herb, is that the company today, in a case that is going to court today in oklahoma, where a mother is suing on behalf of her

teenaged son, who allegedly experienced a cardiac incident that she claims was directly related to monster beverage. now, the analyst who covered this really didn't focus so much on the health risk here or the regulatory risk, he did mention it, but just on slowing growth, which of course, could be contributable to concerns about health. >> look, the health issues have been dogging this company for years. when i first wrote about this company, red flagged it back five, six years ago, looking like an absolute fool now for doing that because the company did so well, one of the issues was health because even back then, there was the issue of teens getting this, teens getting any energy drink. remember, not just monster. you have red bull out there, a private company before monster. you had a proliferation of companies, the whole thing, they could get so much caffeine. in the face of this, not much happened, a little regionally, a little more the past year, you started to see some serious, you know, questions raised, the lawsuits, this type of thing.

>> attorney general, i believe. >> get involved, the companies come back, effectively said in all these cases, this is no different than going to starbucks, getting some coffee, what's the difference? trying to compare, you know, what is really in a cup of energy drink. >> what do you think the end game is for monster? you know, the beverage business has been marked by the big guys coming in and buying, but this one feels like -- >> tyler -- >> it may not be a nice target. >> well, tyler, years ago, you always assumed, in fact, when you had a red flag on this assumed the big guys come out, had their own energy drinks and slammed these guys. they were able to come out we are rill la marketing and grow the companies have in the beverage industry. what is the end game? always speculation. tomorrow, for instance, coke's ceo on "squawk box", you want to think, why did they never go that route? to me, that's very important question, why didn't they go that route? could they be acquiring it at some point?

where does energy stand with the big guys? they certainly missed it >> interesting stuff. >> and watching herbalife tomorrow as well? >> watching that presentation as well. >> that is going to be something else, bill ackman. and also the cfo of that company, scott wapner, will have them on "squawk on the street." let's lock in the vote right now on energy drinks, do you think energy drinks should be more heavily regulated, 44% say yes, 43% say no and 13% for certain ages, they should be more heavily regulated. interesting stuff there all right, sue, down to you. >> thanks, guys. netflix, the big earnings to watch for after the bell. will the company top 50 million streaming subscribers? plus, golfer -- golf -- golfer rory mcilroy cashed in on the british open yesterday, but so did his dad. and a three-day workweek? we want you to weigh in. what does your ideal workweek look like? go to cnbc.com/vote and "power lunch" is back in two with the dow now down only 29 points. we are back in a minute.

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haliburton hitting an all-time high in today's trading session, down now, however. the oil field services provider meeting second quarter

estimates. revenue topped forecast. ibm downgraded to sell on concerns that growth needs to be based on more revenue, not on lower tax rates, share buy backs and cost cuts. the stock is up .75%. bbt is lower by better than 4%. second quarter missing analyst forecasts, due partly to an increase in mortgage and tax-related reserves. time for the power run down. julia boorstin and dominic chu with us today. should the workweek get chopped down not to four days but to three instead of five, as one billionaire has suggested? go to cnbc.com/vote. the voting starts momentarily. go there, let us know what you think. let's talk about netflix, subscriber numbers in the spotlight later today when the company reports this afternoon, the number to watch, apparently, julia is 50 million. >> that's right. now, netflix itself projected in its last quarterly report it would be just under 50 million in total streaming subscribers,

both in the u.s. and overseas and netflix has a history of overdelivering. so if they come in even a hair better than their projections, they would top 50 million streaming subscribers, going to be really interesting to see whether the continued success of orange is the new black really help drive new subscribers. the other thing to watch, tyler, is the fact they raised prices for new subscribers in may. that's actually expected to help because that would actually reduce turn and keep people from canceling their subscriptions. >> 50 -- 50 million subscribers, $10 a month. >> $500 million. >> that's 6 billion a year in straight revenue. >> here is the thing about netflix and julia knows the story, in ever about revenue, these guys will make the money on the top line, "is he whether they can maintain their cost structure enough where they can become profitable and grow those profits over time. content acquisition is a big deal so maybe that original programming helps lower some of the costs, still costs a lot of

money to put that. >> topic two never wrong when you bet on yourself, how about betting on your son? a decade ago, jerry mci will rind some of his buddies bet a few hundred dollars that a then-15-year-old boy named rory mcilroy would win the british open before he turned 26. that day and that audacious 500:1 wager came true on sunday and they are now about $100,000 richer. >> how about $171,000? 200 pounds wagered, 500:1 odds back then, current exchange rates, talking about 171 grand. the bookmaker put this bet on in the first play, the bookmakers in england, they are notorious for taking money on just about anything. they will make a market for you, find way to put odds together for any kind of a bet. in this case here, i mean, 500:1 may seem cheap now, but it was probably a pretty decent chunk of money. >> sure it was. >> if you're a dad, my dad always had faith in me. dads always have faith in their

kids. i got to figure this is going to be -- >> put a bet on dom saying he would be on cnbc by -- >> some day. someday. i have no idea. >> julia, what is your bet on your children? >> oh, i would bet anything on my kids. i think this is wonderful, tyler. the bottom line what he made on his kids was not this financial bet but the fact that he really worked overtime, worked two jobs, everything he could to support his son in training and being able to prands get all the opportunities in the world. >> good for the mcilroys, good for the son who is now the youngest or one of the three youngest people to have three major championships under his belt. carlos slim, second richest man on the planet, calls for a three-day workweek. one catch, retirement won't kick in until 75, not 65, he says, but slim argues you will enjoy a better quality of life working three. i bet he, julia, hasn't worked three days a week in a long time. he probably works all seven days. >> yeah, look this guy is the

second richest man in the world, he can work as many or few days as he would like at this point, but i -- sounds good to me, but i have to think he must have some sort of ulterior motive. we have to remember that carlos slim controls the majority of both vicks line and mobile tell come in mexico, a guy that can make a lot of money maybe if people have more free time to consumer entertainment on their mobile devices. i would be curious -- >> you're suggesting that he might be proposing something that would benefit him? >> shocking. shocking, i say. stop the presses right now is what i say. can hear's what i love this i'm probably going to be working into retirement anyway, find some other job after i retire from hopefully this long, illustrious career here at cnbc. one mind working until 70, 75 years old, i will be working anyway. >> get on the golf course more. >> work on my handicap. >> folks, see if you agree or disagree with a three-day workweek, what is your ideal

work day, three or four days, 40-plus hours, 72% say that's best. 13% say a five-day week at 40 hours is their gave and 15% say spread it out over six days but work flexible hours. that's 15%. but basically, most people would like to work three or four days a week. i guess i would be, too. julia, thank you. dom, thanks very much. winners in today's trading but first, let see what's coming up on "street signs." >> i think the four-day camp, ty. lots to keep us distracked offshore right now in the markets, right and also distracting us from some really good things that are happening here at home, so gonna go through those and also a lot of questions regarding liability and the latest malaysia airlines disaster. going to be speaking to a lawyer who was involved after the shooting down of a korean flight back in the '80s and also 9/11, really want to drill down on who's liable here and what kind of payout could the victim families expect. lots of things coming up, top of the show, make sure you join us. "power" is back in two. in india we have 400 million people

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get an auto insurance quote and see why 92% of our members plan to stay for life. welcome back to "power lunch." the dow, a triple digit loss, now it's not. down 31 points. stocks turning positive. among those in the green, intel, microsoft, chevron, boeing,

exxon mobile. ge, pfizer, mcdonald's, dowel all to the downside. >> thanks, everybody. thanks for watching that will do it for this edition of "power lunch." >> have a great afternoon. we will see you tomorrow. street signs begins right now. tensions are up around the world, take a look at stocks, dom just told you, we are coming back again. hi, everybody, welcome to street signs. speaking of coming back, mandy, welcome back. all the way back from lake tahoe. >> thank you. >> in the shrug it off stock market, nothing seems to be able to hold the markets down. the high times of colorado's pot boom and true story on how to lose billions. >> ouch. off the lows as you say, down 126 points, low of the day. but you know what, we could be even positive, not just by the cle,