i bought that one today. >> a big reminder of the programming note for tomorrow. our very own steve liesman will be sitting down with president obama inclusively around 5:00 eastern time only right here on cnbc, a lot to talk about on the economy on a day where we're looking at the s&p hit a new intraday high. power best gins now. halftime is over. the second half of your trading day begins now. >> and technology just passed energy to become the top performing sector of the year. we're talking about value in techland in just about 30 seconds. says, on "power lunch" today, spending cuts versus international threats, war. which one will lead the way in this sector. the defense sector, by the way, outperforming both the s&p and the dow in the last year. there's tension there. we're trying to save money in the federal budget, but there are lots of international threats. don't need to tell you.

also today, the one thing to watch. one thing and one thing only in biotech that will likely move this very interesting sector. sue is out for a few days. sara eisen joins me from the new york stock exchange. >> hey, always good top with you, tyler, technology on a tear. energy stocks are in second, utilities in thing. intel, sandisk, and broadcom all up. tech arguably the most important component. that's more than finances. dominic chu has hunt fog value here to name some names. >> here as the case. the overall s&p secondo trades at about 18 times trailing earnings, so we looked at the s&p 500 tech sector and found some stocks notable ones that trade at a discount to that level.

you request see here, will communications equipment show byrne spending patterns, or could they be due for a bit of a pullback in first solar, believe it or not a solar trade, translate into a 15% up side for this stock so far this year, and solar always one of those sectors to focus on when it comes to more volatility. then there's hewlett-packard, meg whitman trying to turn this exude around. can they get things going. this stock has been an investor favorite after bottoming out last year, up 25%. micron trades at 11 times earns, a chip company believe it or not, and this stock is up 53%. >> thanks for pointing them out, dom. burns mckinney is a division of al yanz global division, and also with us is john bucking

hamm. both of these gentlemen like technology stocks. byrne, starting with you, forget the sexy names. old-school tech is where to be. >> specifically from our perspective, we have a focus on dividend-paying stocks. we've seen a bit of a rotation in recent weeks and months off sexy, the cloud computing names. >> intel specifically, which has done very well. >> one of our largest holdings, trading about 15 times earnings. they have nearly a 3% different yield. in fact over the last decades they have raised a legendary rate. >> john, what about you? within the broad realm of technology, where are you buying? >> well, we also favor dividend-paying stocks for the prudent speculator. we have done well with names like apple. we like a hold of that quote/unquote old tech, but

where you might be putting money are the names that haven't performed that well, so something like a symantec, broke kay communications would be another name, a company called avx. there are still opportunities out there in technology. we are overwraet technology, as you pointed out in our portfolios, and of course the interesting thing is the apple effect in the indexes, apple being such a large weight in the s&p 500. >> huge, yeah. >> as apple goes, sore of techland goes as far as that is concerned. we own apple, but we only have a 2% weight in apple, so we're not market weight in apple, so we actually don't do as well when apple does really well. >> apple is 13% of the nasdaq, while nasdaq is outperforming today. >> final question, burns, what about the ones with the higher valuations which obviously are attractive, but become more vulnerable during selloffs. >> one of the nice things about dividend-paying stocks, even within tech, is you're not

simply relying upon capital gains. if you're getting some of your return from a 2%, 3%, 4% yield, then when thing turns south that cash with compensate you. the tech sector is where we've soon some of the best dividend growth. >> gentlemen, thank you for all those ideas and those names. now to dominic chu for a market flash. dom? >> sara, not everyone is happy with rupert murdoch going after time warner, a double downgrade of issued to underperform from an outperform, arguing that fox would be better off getting its own house in order than trying to buy time warner. fox currently down 2%. cowen, though, also downgrades time warner to a neutral rating from a prior outperform time warner shares also down towards session lows, down by 3%. tyler, back over to you. >> dominic, thank you very much.

ukraine's government issue as statement one hour ago saying the missiles that shot down two ukrainian jets over eastern ukraine were fired from russia. the russians have not yet commented. this video reportedly does show the downing of those two fighters this morning. cnbc has not independently confirmed the all then 'tisity of that footage. this comes six date after another missile brought do you malaysian airways flight 17, killing ought 298 on board. to the next crisis, this one in the middle east. the faa now expanding the flight ban to and from israel for another 24 hours. 160 flights so far, 82, 80 from israel, have now been canceled after the faa made a move yesterday banning u.s. carriers from flying into that airport. that after a ground-to-ground missile granded close to the airplane. israel has said it would make another facility available to

foreign flights, but insists ben-gurion is well protected and safe. ed prime minister made that a hot topic of conversation today with secretary of state john kerry. kerry is in israel trying to establish a cease-fire with hamas. now on the left side of your screen, the fighting, and on the right side you can see the ukrainian army advancing against russian separatists. tension also high in the south china sea, where china has been facing off against vietnam and japan over shipping rights. what does it immediate for the u.s. defense sector? it is up 25% so far this year, outpacing the market as a whole. shares of general dynamics, there you see them up 1.49 today, northrop grumman, 13 cents higher, the defense contractor reporting better than expected quarterly profits today, but net income also fell from a year ago.

northrop griming reporting solid numbers. boeing, thorks down, however, down by 2.37% after reporting a 52% jump in profit. we'll talk to an analyst in a minute about that, but first let's go to phil lebeau. what's going on with boeing? why is the stock sinks? >> it's the commercial side of the business, tyler. that's where the sentiment is focused for investors. a lot of questions about cash flow, the remainder of this year, particularly on the commercial side. that's why we look at shares of boeing. they've been under pressure all day long. at with you point the pressure let to about 20 points of the losses. most people are saying, look, it's likely staying in that territory for some time. on the defense side of the business, and yes, boeing gets a sizable chunk of its earnings from the defense side of the business. $7.7 billion in revenue in the second quarter operating margins of 7.5%. the military aircraft revenue of

3.5 billion, the backlog, by the way, when you hear people talk about the backlog, about pa% comes from the military side. as you look at shares of boeing over the last year, the thing to keep in mind is for investors, so much of what's happening with the stock right now is primarily driven by the investor sentiment when it comes to the commercial side of the business. so, sara, we always get these questions, especially when you see the order defense stocks up. boeing like it is today, being under pressure, people wonder why is it moving up with the defense stocks? >> good point, and weighing on the dow jones industrial average. phil, lang you. jason gurski is with citi research. two major themes here, defense cuts and the threat for more war, the need for more weapons, which one will win out? >> oh, i think clearly the global instability will help

sustain defense spending for quite some time. as it relates specifically to defense contractors, we see the governments are reacting to constrained budgets by reducing the outlook for the number of soldiers and their fleets, in order to sustain weapons spending, so that they're prepared for future conflicts. not a bad outcome for defense contractors. >> we've already seen that in some of the manufacturing data, the outlays. which companies? can you name some names for us? are specifically poised to benefit from there? this? >> i think clearly the biggest beneficiaries will be the companies that support things that fly and float. lockheed martin, general dynamics, and northrop grumman. also the outlook for the things that crawl around on the ground, army related, soldier related, are the things that will be under pressure. >> jason gursky, thank you for the tips. interesting things to follow. positive news on housing,

but underlying concerns in the data. we'll explain that. plus the next gen railings of investors, the mill lennial will control almost $9 2ri8 onin et cetera in just four short years. where are they putting their money? what you need to know, when we come back. just take a closer look. it works how you want to work. 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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company lowered the 2014 outlook on news. sales slid a weaker than expected 13%, this as the long drugs struggled in the u.s. and a strong british pound hurt growth. just off their session lows, sara. back over to you. >> always about currencies. on the home front mortgage application are on the rise, but there's still underlying concerns. diana olick is in washington. >> applications to refinance home loans rose 4% week to week. that drove the overall volume, but there's really nothing to write home about, because refinance volume is still down 41% from a year ago. remember, a year ago rates had already taken a big jump up. now, more important to watch is mortgage applications to buy a home. they were down 15% from a year ago right around a five-month low. cash buyers are all over this market. they made up 32% of june home sales, according to a report from the realtors out yet. the chief economist called that,

quote, amazing. i might call it concerning, given that cash investors continue to leave the market, and despite still very low mortgage rates that haven't moved much, first-time buyer largely lack the cash to compete in today's housing market, as rents continue that are climb higher. renters are less been to save money for a down payment. owens corping, whirlpool and eagle materials, which makes building products. back to you, tyler. diana, thank you very much. major battle brewing between one key congressman an his family over so-called tax inversions. 'em is notafter has the story in d.c. eamon? >> now we have the radio el action provided by "national journal" from senator joe manchin, a democrats, to the news that his daughter's company, the kreismt off of myland pharmaceuticals, is engaging in a tax inversion.

her father is senator joe manchin of west virginia. this month mylan would announce it was invest in the netherlands, critics criticize these tax inversions, saying these companies are renouncing their american citizenship. now "national journal" has a new interview out with senator joe manchin, which he says of the daughter's tax inversion, i think basically inversion should be absolutely repealed, all of them. get them all. the senator apparently not agrees with his daughter ace decision. heather bresch was on cnbc's cloib been last week before her father's react. >> a% remained overseas, so our country had no problem opening the borders and saying we want all the competitiveness we can get for our consumers, for everything else. what our country failed to do

was keep pace and make our country globally competitive for corporations. if we want to sit here and have a discussion about how do we handcuff u.s. corporations to the united states? i think that's impractical and quite frankly ridiculous. >> tyler, as you know, these tax inversions are so controversial right now, i know i will be watching tomorrow when our steve liesman interviewed president obama at 5:00 p.m. to see if this issue of tax inversions comes up in that conversation. a very interesting one. ty. >> thank you very much, eamon. let's check in with sara. bioagain, watching the bioteching out with earnings. they were solid, but the most important number in biotech that investors need to be watching is out after the bell. could this one number be the next big thing that fuels the biotech boom? plus -- power pitch heads out to sea with your neighbor's boat. >> one to two rentals per month. a owner can offset the entire

cost of -- >> will the panelists be on board, or has the ship sailed? stay tuned to vote with the "power pitch" panelists. are you in or out with this week's start-up? go to cnbc.com/vote right now, and get ready to start voting.

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below wall street expectations, this after the company's second quarter sales also fell short of consensus views. you can see they're down near session lows, off by about 10-plus percent, sara. back over to you. >> thank you very much, dom. it turns out three dozens companies out with earnings today. pepsi among them, the beverage and snacks giant beating estimates on both of top and bottom line. that despite a decline in carbonated drink sales. whirlpool falling well short of estimates, and the appliance maker cutting the full-year forecast. delta flying high, the airline reporting a 17% jump in earns. xilinx is plunging, giving a weak forecast. on that note, our jim cramer will be speaking to the ceo about the outlook ahead on "mad money" tonight.

he's also got a big interview with which pot lay's ceo. catch "mad money" tonight, 6:00 p.m. eastern time on cnbc. they're certainly doing something right, tyler. >> thanks very much, sara. time for the "power pitch" where start upfounders get 60 seconds to convince a panel of experts that their company has what it takes to be the next big thing. during the pitch, you the view can grade it. you can log on to cnbc.com/vote, and give this pitch an a, b, c, d or an f. we want to know what you think. so get ready. this is today's pitch. >> my name is aaron hall. i'm one of the founder of boat bounds. it's to make boating more

accessible. in fact, the average boater only uses their boat 14 times a year. that means that 1 million boats sit idle over 4 1/2 days per year. as few as one to two rental as month, we prescreen and qualify every and include up to $3 million insurance and on the water protection for every rental. we have thousands of boats across the country, no experience is required, as many come equipped with a captain. we've raised over $4 million a day. we've picked exclusive marine partnership that is give us unrivals reach that will continue to fuel our growth this season and beyond. with hundreds added each day, look for boatbound in your city near soon. we have the managing pare of a hatchery, with a focus on technology. also a partner in pereg

ventures. also with us is kanyi, he's at one of the first funds to focus on the sharing economy. collaborative fund has raised more than $40 million and backed many companies. joining us from syracuse is peter isler, editor at large for "sailing world" magazine. he cofounded american sailing association. peter is on asa's board of directors. we have a great panel, but aaron, you my dear, are in the hot seat. would you like to throw the first question. >> the market size must be pretty large. could you address that a bit, along with how you plan on acquiring the users for the platform and growing that base? >> we're looking to targets over 16 million boats that are actively registered in the u.s. i think one of the most exciting

things about boat bound, we have a lot of the industry behindics with companies like brunswick. they believe as we get more young people, we can hope to raise sails for everything. >> my assumption is boating is expensive. where are you going to find the demand for people willing to -- >> boats vary, all the way from $22, up to $18,000 a day, depending on your budget. a group of six people can get out on the water and boat for as also as $30 to $50. >> i'm intrigued with the partnership with brunswick. are they having their dealers promote boat bound to the entry-level boater looking at a new boat in the showroom? >> we're working with not only their dealers, but their sea ray owners clubs, the bayliner owners club. years ago when i wanted to become a boat owner, just didn't have the ability to buy a boat because of the location i was in, in d.c., didn't have a slip. >> how many boats do you have in total to be able to rent out and

how many more are you adding every month? >> we're adding thousands a month. >> thousands a month? >> the growth that we have seen is, you know, is pretty exciting. i think our biggest challenge is getting them acinvestigated. pell curate and review ever boat to make it's it's seaworthy and presents itself well on the web sites. >> it seems like there's a lot of competition out there. how do you address that? how do you plan to become the market leader? >> from a competition standpoint we have already lapped the competition number of times. we're adding more every day -- >> how do you deal with liability? >> the first thing we did was put in place an insurance protection program that covers not only the liability if something happens to someone, but also the hull value of the boat. we provide up to $3 million insurance with every rental. >> are you in or are you out on boat bound? by the way, this includes you, the viewer, so you can get out your phones once again, and you can vote live, visit

cnbc.com/vote to say whether you are in or whether you are out. yao, what do you think? >> i think it has a seasoned team, they have thought through the market with one of the key partners in place. they have raised a lot of money and have a pretty good strategic plan in place units i'm in. >> i like that they have their insurance covered. it seems like it's a big market with a great average check size, which is good for a marketplace. so on that basis, given my experience, i would say i'm in. >> peter? >> i love the fact that bruns wick has the power and they're marketing to the new owner. for that reason primarily i'm in. >> wow, three ins. what's your reaction? >> we're excited, and you as boating becomes more accessible, the aspirational side of getting out on the water, enjoying a difference experience, as more and more people share that, more and more people will decide to be in. hopefully we can continue to build the boating industry and redefine what we're doing, and

we're excited to be a part of it. thank you for your time. >> best of luck, aaron. thank you for joining us. and a big thanks to our panelists today. by the way, our live voting is just about to close. thank you, viewers, for your in or out. that is today's power pitch. and the polls are now closed. there you see the results. 58% say they are in, and 42% say they would be out. of course, three of the panelists, all three said they would be in. i also want to look at the grading from our viewers vote on hout boatbound fareed regarding the power pitch. 31% gave them an a grade, 14% a b, 18% a c, 9% d, and 28% just didn't like it at all, giving the boatbound power pitch an f. tough graders, you viewers. let's go to phil lebeau with breaking news on gm. >> tyler, general motors is announcing six new recalls, covering 717,000 vehicles.

we should point out these six recalls, none of them are ignition switch related, and frankly you'll sea, really? that's a recall? some are rather serious, like 57,000 for the chevy impalas, 2014, they want to work on the belt drive, the power steering may fail. but there's other ones, like the 2011 to 2013 buick regal, the turn signal may not work properly, so they're recalling that vehicle, about 120,000 of those. all together, when you add these six recalls, tyler, there have been 60 recalls from general motors this year, covering approximately 30 million vehicles. don't forget gm reports earnings tomorrow morning before the bell. back to you. >> phil lebeau, thank you very much. the stock has little change. to the bond market, ten-year 245, rick santelli tracking the action. hi, rick. >> hi. there's a lot of defense of this spot. look at the intraday chart. very tiny range, this is about

the same yield it was four hours ago, you can see why. is the left side of that chart, that's what we're defending, the significant technical area on a 244 closing basis. hey, china, in about seven hours, one of their important pmis come out. it could be one of the better ones since march. what is that doing? look at the intraday of the dollar versus the yuan, dollar is moving down. this could be the lowest close on the greenback since early april. back to you. thank you very much, rick. the momentum stocks begin to report their earns. high-flies internet names. we'll tell you about the ones you need to watch. plus the next generation of the investors, the mill lennial will control about 9 trillion in assets by 2018. one investment move they're making right now, with major ramifications for the stock market in the years ahead. we will explain what also, after this.

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king digital taking a hit day as the price target has been reduced, due to a decline in popularity rankings of certainly games in the portfolio. those shares down by about 35.5%, 6% on the day's trade. sara, back over to you. with earnings in full swing, all eyes are on focused on biotechs. meg? >> some of the most arndt pated number, analysts looking for revenue, eps of 1.79, all eyes will be on this sovaldi. it has $1,000 price tag, set a record in the first quarter of 2.27 billion. for the second quarter consensus is at 2.6 billion. analysts say the whisper number could be even higher than that. so be looking for that after the

bell today, you guys. back to you. >> meg, thank you very much. joining us, dom chu, julia boorstin, seema mody, the so-called momentum stocks, at least they start, biotech, social media, internet names, what should we watch in biotech? >> you jest heard meg talk about the gilead numbers. biotech is also about whether or not you have the stomach to be invested in these stocks. refer, janet necessarilien made the comments about whether certain parts of the market were stretched. gilead sciences, already up 21% so far, but the biotech etf over tloo months is also up. if you look at the chart of -- ever since janet yellen spoke last tuesday, the shares took a big dip, but they've rallied back to become flat since she made her comments there. of course, if you look at some of the big names reporting throughout the course of the quarter, the one-week

performance of the big names, the iibb, over the past week they're up at least 3%. and bioagain reported their blockbuster numbers today. so a big, big deal for biotech, especially if you have the stomach to invest in these stocks. >> julia, facebook out after the bell. what should we watch for that one? >> the key thing here is annual revenue per user. you want to see growth in mobile user numbers, but it shows just how well facebook is doing making money as it continues to grow. it's expected to be 2.17. the other key number is looking at what we're going to see here in terms of mobile revenue. we want to see a percentage of revenue from mobile continuing to rise. most recent quarter it was 59%. this yar we're looking for about 61.5%. we're also looking for commentary on things like instagram, what's app. and video

ads. we want to hear some commentary from them about how they're doing right now and what the potential is from the likes of retail. >> julia, thanks very much. seema is back, high-flying names on the radar. what are you watching? >> we've seen a lot of volatility. earnings will definitely play a pick voltal role. in terms of metrics, display and click advertising revenue, aside from whether the consumers are using these sites to -- are they clicking on ads? performing goods? mobile growth, another key metric, especially as we see consumers shift. that would be something to watch. we do have tripadviser reporting earnings tonight. >> seema, julia, dom, thanks very much. ron insana joins me. he has a new post on cnbc.com focusing on inflation, a huge hot button issue obviously for the fed and for american

households. you have been, as i recall, an inflation skeptic. or to the extent that it is there, it's more anomalous. >> transitory. that's a word we borrow from janet yellen or the emf the things that have been bolstering, headline inflation have crashed and nobody's even talked about it. just for example, take a look at a chore of wheat. commodity prices, with the exception of live cattle are falling rather sharply. 5.28, corn in the $3 region. soybeans are at 10 -- >> why are cattle off? because of the california drought? >> it's more because of the pig infestation where pigs are being slaughters, so the available supply of meat is going on, and that's driving up demand for beef relative to pork. that's at least part of t yes,

of course, grain prices had been expensive, but grains, as we just showed, have collapsed. there's this phantom inflation. energy would be much lower not for the middle east and -- >> and natural gas has come down, right? >> below $4 per british thermal unit. that means your power bill leg less, and it's already a cool summer to start with generally speaking, so i think people are looking again, still, making this case for rising inflation. when you look at wage inflation, it's about 2% year over year. that is not the touch of a wage-price spiral. the velocity of money. st. louis fed has a chart of the 1re8 lossity of money over the last many years, you can see where velocity is right now. in order for monetary inflation to pick up, velocity should be accelerating. it's still falling. we don't see that type of churn in the money supply, that would

typically generate inflation, so i would much rather have an evidence-based argument with the inflationistas, and as i say in the piece, i will bet, you know, a lot of limes or several bushels of wheat that this will not be a problem, in fact it probably will reverse itself. >> how does the drought play into it? >> no sign of abatement in california. you had a drought in braz psi, and obviously disruptions between russia and ukraine that propped up wheat very, very briefly. the fed can't do anything about droughts. despite what people say, the fed cannot make it rain. so when people talk about inflation as an economic phenomenon there's a difference between this and price increases, and my bed is that when you look at the headline numbers on inflation, they're going down, not going up. >> and we have to leave it there. you mentioned wage growth. that's usually a driver of

inflation and it's not that big, and you don't have a wage-price spiral. >> ron, thanks. good to see you. >> good to see you. i love that. mill lennial are skeptical and sitting in cash. are they a lost generation of investors? that is the yahoo finance question of the day. go to finance.yahoo.com. weigh in and we'll discuss. don't just visit new york

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because the future belongs to those who challenge the present. hawaiian holdings soars, who doesn't like to go to hawaii? that's up 13.5%. delta posting better than expected second quarter profits, as again those earnings and profits rose 17%, so sara, a nice day for some of these airlines. >> the group is rallies, mill lennial, coming of age during

tumultuous times, and that seemed to shape their money habits. >> many millennia also who rains from 19 to 34 will likely manage a great deal of money in the coming decades. by 2018, they'll control $9 trillion in assets, according to a study by deloyalty. that numb her will likely continue to grow. they also stand to inherit in $36 trillion, according to boston college on wealth and philanthropy. as a result of this vast amount of potential wealth, investment habits is being studied closely. several recent surveys show mill lennial hold significantly more cash than any other generation, similar to the world war ii generation that came of age during the great depression -- 52% are sitting in cash with less than one third of their assets in equities. this statistic is very troubling. it's directly counter to the long-term investment advice you

hear from many wealth managers. the path they may be taking is long and winding. overjammed with student loan and credit card debt, so piling their money in cash won't help them easily reach their savings goal there. >> sharon, hang on. we're going to bring in michael parry goodell, also author of "jumpstart your business." they saw the tech bubble burst, they saw the housing crash. can you blame them for not jumping into the stock market? >> i cannot blame them at all, and i am one of them. i can take full responsibility. it's tough. we were raised in a period of time where there was such economic prosperity. we saw incredible wealth, opportunity and then we entered the job market and look what's happens. i feel like it's only natural to have some skepticism there. >> they certainly have missioned out on a nearly rally in stock

markets. they're not getting that in cash or anywhere else. >> i completely agree. it is a problem, especially if we're looking long term. short term the problem is folks don't have a lot of capital to investment. they don't understand the market, there's a lack of education and mistrust. in the short term,itis not so sure i blame them. there are a number of studies out that show they are creating some plan, they have some strategy and priorities in terms of where they want to put their moan, and saves is actually a number one priority, the problem is, of course, they're putting that money in cash, but the fact they are looking at saves, the fact they understand the important of paying off that student local and credit card dead as financial priorities, that may have hindered their parents, not having a plan at all. >> that's true, and you'll see that we're better savers, better than the boomers, so we understand the value of saving, saving from a younger age, but where we are putting our money,

very different on it comes down to the mistrust. we saw what happened to our parents and don't want it happen to us. >> our parents had better pension cushions, a completely different ball game not to see that think saw their retirement accounts get wiped out. >> we learned from though, and today we're acting a little differently because of it. >> i think there might be hesitancy, too, in getting advice from financial advisers, from people who are actually in the market, more so a loyalty of mill lennial seem to want to go to family, to their friends. that's not necessarily where they're going to get the most aattitude advice. >> that's truly true. what's funny is we're overeducated. we all have that student loan, but when it comes down to it, when it's about fiscal education, we're just not as part. there have been numerous studies including by the department of education, all showing that our fiscal knowledge is less than our parnts before us. that's a real danger. >> there's going to be a discussion, to.

if it's a structural problem. for now, mike at and sharon, thanks very much. >> thanks for having me. >> are mill lennial a lost generation of investors? here are the results. 21% say yes. 30%, though, say no, they'll just be late bloomers. >> 49% say you need to actually have mobben money to be able to invest perhaps, tyler, that is the most telling answer of them all. >> i, sara am a baby boomer, and we aim to crush the mill lennial. i'm just kidding. >> you can battle it owl. the department of transportation with in rules that could disrupt the rail business s morgan? >> as a millennial, i will crush you back. these are the trades carting the crude oil from the bakken. we'll lay out the new regulations and what they mean for the railroads. that's coming right after the

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10%, retail machine sales during that march to may period were down 12%. that stock, like we said, down 1.5%. sara, back over to you. thank you, dom. shares of yum higher following preliminary results of a chinese investigation of the food supplier that sold them expired meat. yum brandt has severed all ties with osi and has arranged for kfc and pizza hut to have alternate suppliers. dick's sporting goods lower, laying off more than 400 golf instructor, due to a decline in golf-related sales. profit ricely partly due to a rebound in coal shipments. norfolk southern, as sara just mentioned, beating the earnings estimate, but a big issue could be around the bend for this railroad company and several others. morgan brennan now with the story. >> it was a good report, but we're still seeing that stock

and the colleagues trading down today. here's why. with more crude coming from the bakken, which can be very volatile with large levels of combustible gases, the transportation department is proposing new rules how they can be moved via rail. this comes after a series of fiery crashes, tragically one killed 47 peet. the new proposal is calling for tens of thousands of older tank cars, specifically the d.o.t. 111 tanks to be replaced or retrofitted within the next two years trains not updated will have to travel more slowly, and ones that have can go 50 miles per hour. regulators also want the development of a flammable cargo sampling program, also risk assessments for the routes used by the rails. this would 'reply to trains loaded with 20 or more tank cars carrying oil or ethanol.

these aren't quite as extensive, not quite as intensive as the industry had feared, very sweeping still, but the rail stocks, they've been trading lower on the news today, all down about 1% on this, and take a look at tank car makers. trinity industries and greenbrier those are actually up today on the news, the association of american railroads welcoming the proposed rule changes. they're saying this will build upon voluntary operating practices that have already been put in place, tyler. >> you would think this would help the rail car makers and obviously the market responding favorably to that if they have to retrofit or buy new ones, certainly a good story for the teenager car makers. >> norfolk southern's ceo wick moorman will be on "closing bell" today. don't forget to tune in. meanwhile, what's coming up on "street signs"? >> doing business on a bar zone,

literally. are things getting stuff? we'll be -- to find out what's really happening with big on the ground. also the sector that's saying we will fight the fed, and which cities have the most millionaires per capita? robert frank has been scouring the globe for the list. that's coming up. toffee into a business.ve tr 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.

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check out the s&p 500, because we are not too far off from an intraday high, 1989 is the record intraday. if we close here, it will be above the closing high, the dow under pressure, a big part of that story is boeing, concerns about cash flow coming in, even though boeing did beat estimates. nasdaq is in the lead especially that boost, tie le they saw out of apple. high hopes for the new products cycle coming down the road. the ten-year treasury note, we are seeing a yield of 245. you can see there still is this backdrop of some tension and bid

for safe haven demand, even, a lot of factors out there, tyler, but i would say better earnings is give the market some optimism. >> i've got my eye as well on facebook, which is moving higher by about a dollar 50 right now ahead of its earnings. that's a move sort of by the rumor, i guess. we'll see whether they hang on after that. there you see facebook at 70.61. a very nice run. it will be interesting to see how much comes from mobile. i wonder if they'll get above that 60%. and the economy, a lot of shying going on. steve liesman will be speak with president obama tomorrow, how about that? 5:00 p.m. eastern time. a lot of topics to discuss not just internationally, but the tax inversion, boy, is that debate heating up. >> absolutely. and of course in the context of

very, very unsettling developments in ukraine add the middle east this week. so the palette of potential topics very colorful. >> thanks for watching, everybody. >> "street signs" begins right now. hello. welcome, everybody, to "street signs", where the signs are pointing to new records for the markets, and lots of green for one sector in the firing line of the fed just one week ago. shocking and worrying at the same time, mill lonial who say my money is safer under the pillow, thanks very much. just click five, melissa, it's that simple, or that is what facebook is hoping. welcome to the show, too, by the way. >> always good to see you, mandy. the faa extending its ban on u.s. flights into israel for an additional 24 hours, this comes as rockets continue to fly out of the gaza. israel's army hunts for tunnels and rocket