i think it's going hot. >> and josh, what and why? >> raising first solar to a strong accumulate. and i like the stock. >> all right. you guys have a good one, we'll see you next week. all of you have a great one too, "power" starts right now. the second half of the day gets started right now. "power lunch" is all over it. >> we're all over it, that's what he says. dow taking a big, want to see what 121 points looks like. that's what it looks like in a graphic form. you can see the chart there. the nasdaq, s&p, and russ ls also trading lower. nasdaq down about 21, s&p about eight and a third. it is a day of some big name losers. visa, general motors, amazon, we will run through the list. and a wall street analyst downgrading, downgrading a stock over tax inversion.

she will be with us live. sue is out, but simon is in at the new york stock exchange, simon. >> yes, we've lost 17,000 on the dow. only six members are in positive territory. it is the credit card manufacturers, although the credit card players and indeed the insurers that are leading the freight down. >> visa of course guidance, very poor, and that's a real problem for the dow jones industrial average right now. i want to turn to crude, past 11:00, we saw spike in brent. moving to the juch side, this is probably related to ukrainian issues. mr. van rump, the president of the european council is backing the idea of additional sanctions against russia, but that is not been confirmed. they have not signed off on that, that is what's moving things. also some reports that russia may be providing heavier weapon systems to separatists, that's floating out there as a concern. at any point, brent moving up the s&p 500 on that news, a little after 11:00. as you can see moved to the downside. since come off of those lows,

but germany had a tougher time. of course simon covers all of that. you can see germany covering the lows for the day, moving down on that news. germany's had a tougher time with the ukrainian issues. german now down 2%. they're being affected by this. i want to point out another day of weakness after those really disappointing new home sales numbers, yesterday, all of them down another 2%. horton is down about 12% in the last two days. so obviously a lot of concerns out there in home building. >> okay. thank you very much. let's get some analysis, president and chief investment officer at cab bot wealth management. berth white, he's chief investment officer, gentlemen, welcome to the program. let me kick off with you, rob. you're really upbeat about the market. you think in 12 months question get an 18% gain on the s&p plus dividends. why so optimistic? >> well that's correct. i believe we could be up to 2300

on the s&p 500. the real reason is the fundamentals underneath this market are remarkably strong. you've got monetary conditions, probably the most bullish in my entire career, you've got an earnings trends, very positive. you're got a pretty fair value on the market, and investor psychology, in my read, is still in the favorable camp because we don't really have wild speculation going on yet. people are a little more optimistic today. but they're still fairly cautious on balance. so i think you could have an 18 multiple on earnings estimated for the 12 months out, and that's how you goat 2300. >> interesting. burt, you also believe that at the current evaluations, that should not spell an end to the bull market. you think you can stretch the evaluations as indeed robert's suggesting here? >> absolutely. we know where bull market goes to die, and it's not 17 times trailing earnings. tip clip higher than that. we have room to go there. but the real key is earnings

growth. you're going to get growth in the five to 10% range. and if you get that, then that could calls the stock market to rise five, 6, 8% with no north carolina in evaluations. and so i think that's crucial. and here's what's the real kicker, the kicker is it's not just earnings, but revenue growth. that's been the surprise this year. 3.2% year over year. that's twice the 1.5% for last year. and what that means, we're seeing sales growth and ceo would now begin to open up the cap ex wallet. i think it's going to be business spending that's the catalyst for the rays of this sort of bull cycle. >> interesting, rob, what happens when the feds starts raising interest rates? is that a significant depressing factor for you or can you shrug that off because of the fundamentals you were referring to? >> i think you could get interest rates to go 200 basis points before there's real competition for equities. i'm not too concerned about that. and i believe today, we saw this

past ten days, a real test for the market. we had really difficult geopolitical news with joouk -- ukraine, russia, the middle east. and you the a chair questioning values, creating doubt for people. we got a new high in the market. that's telling you there's buying power under this market. i think the path of least resistance will continue to be up. >> guys, have good weekends, thank you. >> thanks. >> great, thank you. all right simon, thank you very much. former bear ceo passed away. we are joined on the newsline, andrew, he was a colorful and interesting character who rode bear sterns all the way um, then watches it fall. >> he was a legend on wall street. warren buffett once wrote ace greenburg does everything better than i do, bridge, magic tricks, all the important things in

life, of course he did ride the roller coaster that was bear staerns, started there in 1949 as a clerk at bear. of course became the coo of that company. he will always perhaps have a bit of a mixed reputation. he did choose jimmy cain to become the coo of that company, of course whiem the company had an enormous rise, it also had an enormous fall, but as you said, he was old school. he was a legend in and of himself. he was a magician, kept a deck of cards, literally on his desk and he used to say, i don't do tricks, i do miracles. and that really is so much of what allan greenberg was about. one thing i think worth making and remembering about ace greenberg. he was very charitable, perhaps more than that himself, he actually made the employees of bear stearns be charitable, 4% of their incomes every year, he

used to press them to give away. and that's something that i think is worth remembering on this day. >> put him into context ab andrew, if you would, with respect to what responsibility, if any, he bore for the ultimate demise of bear stearns. and did he lose his personal fortune when it went away? >> he lost some of his personal fortune, not all of his personal fortune. you know, there are going to be lots of people with various views on to what degree you blame ace greenberg. i would argue to you that he is, he has less to blame in all of this, in fact he would have argued at the time that he told them they were doing too many risky things, but at the same time, there are other people on the other side of the argument that would say he created a culture. and many of the people who rose to the top of the that the firm did so under him. so, by default, he would bear some form of responsibility.

>> what, two relationships seem to leap out here, one is his relationship with jimmy cain, his successor, tell me a little bit about that the, and also his relationship with donald trump. >> well, i'll take donald trump first, donald trump happened to be one of his clients. donald trump has come on our air on "squawk box," and other programs and talked about how ace greenberg has made some terrific bets for him over the years and kept him out of a number of stocks that were also the right fits. and jimmy cain was to some degree his protege. so that's that relationship though. it had a mixed, a mixed ending if you would. >> thank you for joining us today. commenting on the pass r of ala ace greenberg, the former chairman of bear stearns and a legend on wleet. it has been a monster week for earnings. yesterday the biggest day of the quarter so far, we hit the

halfway far of the s&p 500 company's earlier week. we now have a score board. >> tuesday, tuesday morning we to want say when we hit that 250 store portion. we're just about halftime when it comes to the earnings season and around 230 companies so far in the s&p 500 reported their results. here's how we stand with our earnings score card. this is all by thompson reuters, 69% of companies so far this season have beaten for profits. 11 met expectations and 20 have reported earnings that have fallen short of estimates. now the sale side of things, revenues, top line. 63% of beaten revenue estimates and the other 37 have missed. two-thirds of companies doing a good job on the revenue side of things. then there's a profit growth part of the story, which companies are driving profit and sales growth as well. well profit growth is being handled by health care, tech and industrials health care stocks are growing profits by, get this, 16%. tech by 15, and industrials by 11. so pretty healthy growth there.

as for the sales side of things, health care still very much up there. growing by about 10%. tech is growing by 6% for its sales, and this is interesting, consumer discretionary, we've talked about the consumer funk quite a bit, but companies so far this season have grown their revenues, their top line numbers by around 5%. so maybe, maybe an encouraging, possibly encouraging sign. >> overall, what is the profit growth number? >> it's around 7, 8% right now. >> good quarter compared with the one proceeding it. >> yeah. the first time around, we thought there was going to be flat profit growth. no real profit growth at all. ended up being 5 or 6%. remember, this is year over year, at least things are getting better. >> 60 something percent are beating on the bottom line. less than that beating on the top line. it is the ones that miss that draw an awful lot of our attention, like amazon, like visa. >> and the reason why is because

some of those misses are from high profile companies, or the larger ones. when you talk about a company like amazon or visa. those two stocks are accounting for about a third of the s&p's drop today. visa accounting for about 63%. >> because it's a price index. >> and it is a heavy, so again, these are numbers, the statistics evenly weigh all the stocks in the s&p. the s&p itself is market weighted index. some are a lot bigger than others in terms of its weight. >> thank you very much. a developing story now, european union reaching a deal apparently on additional sanctions against russia. this just a day after president obama said on cnbc that europe needed to stiffen its spine with respect to mr. putin and rooish. at the same time, a major u.s. company is in russia's cross hairs and we are live in moscow. what can you tell us about russia, what russia is doing with respect top maybe the most american of all companies,

mcdonald's? >> well, i'm going to get to that in a second, but there have been three wars going on today, tyler. one of them, probably most of importantly is the war of words between russia and the u.s. there were more fire today this time by the russian foreign minister taking aim at the state department spokeswoman. he slammed what he called unfounded public insinuations towards russia. he tipped off her statements that russia is about to supply heavy aircraft weapons to the rebels, and that russian forces had actually fired artillery at ukrainian troops from inside russia. he called these unsubstantiates fabrications streaming from kiev who is not shy to make up its own stories, but the pentagon i should say today said that heavy caliber, multiple launch rocket systems could be transferred as early as today. then we have economic wars.

and the sanctions issued very important. vladimir putin may be feeling a bit less confidence today with the news that as you mentioned that eu had reached a initial agreement on much more robust sanctions this time against russia. the deal in some would include a ban on eu investment and embargo on new arm sales to moscow and restrictions on the supply of dual used technologies, like deep sea drilling and shale technology. among eu members was that the strong sanctions could become law as early as next week. then we have the berg awards as you said in your lead. there may be a berg award to report. russian consumer protection agency here in moscow filed a lawsuit against mcdonald's in russia claiming that its nutritional information, you know what appears on packages, fat content and calorie content,

cheesebergers, specifically as chickenburgers is false and therefore illegal. its already been fined 70,000. mcdonald's told us that everything is approved by russian authorities and in order. top so tyler, you're right, looks like the golden arches, an american icon, are in kremlin's cross hairs. >> thank you very much. reporting for us today from moscow. simon, down to you. >> tyler, russia a problem for mcdonald's, russia is also a problem for visa. one stock we're watching today as it seriously pressures the dow now down 128 points. here's mary thompson within more. >> we should note that russia said it's not impacts business, limits or new rules are going to cost them about 50 million in revenue. let's go to the stock first, it's impacting visa another way. the company's stock of course the biggest loser among the dow 30 today after lowering revenue

forecast for the fuel year. the outward linked to the impact of a persistently strong dollar and decline in payments revenue. these were impacted by unrest in the ukraine and rising political attentions with russia. here cfo byron pallet on the conference call. >> we've seen no signs yet of any acceleration and economic recovery and cost border volume growth remains soft in the mid single digits. >> now these are earned better than expected $2.17 in the fiscal third quarter on revenue in line with expectations, but the full year revenue outlook including the impact of foreign exchange is now expected to be growth of 7 to 8%. that's down from a previous forecast of 8 to 9% growth. the firm says marketing expenses rising as well in the fourth quarter with the promotion of its new sri is a checkout. as for the coming year, visa said its bullish long-term expecting strong u.s. and international payments growth remains cautious in the short term because again, it's not

seeing any acceleration in that global glout, back to you. >> thank you very much. the accra moeny getting yet more intense. now an analyst downgraded a business over the issue. she will be here next. plus more on why this has become such a big issue now. morgan. >> thanks simon. we followed the money from the u.s. to europe, asia, and back again. dividends high, nobody wants to cut them, and that's part of the issue. we'll have more on that on "power lunch" in two minutes. 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.

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take a look at shares which are dipping down towards lowing off about 2.5%. it is dropping after david called it a quote, very attractive short sale candidate if it's merger with questcore is completed. making those comments in the second quarter letter to investors. a spokesman for green light declined to comment and tyler, they did also in that letter say they're short questcore, back to you. >> thank you very much. tax inverngss become a bigger and bigger issue in the united states it seems every day. it happened when companies head overseas to avoid paying taxes in this country, and the president told us where he stands in an exclusive cnbc interview yesterday. >> this is basically taking advantage of tax provisions that are technically legal, but i think most people would say if you're doing business here, if you're basically still an

american company, but you're simply changing your mailing address in order to avoid paying taxes, then you're really not doing right by the country, and by the american people. >> why is this debate heating up now? morgan brennan knows why, morgan. >> well, we're going to strap on your seat belts kiddies, we're about to go down a rabbit hole that is corporate taxes. we've been hearing about the tax invernss and it has us wondering why so many now and why so many health care companies. charles cantor says, the health care sector fulfills three criteria that make this strategy attracti attractive. first, these are global companies that have global operations that raise a lot of money abroad. money that would have to, at least in theory pay 35% u.s. corporate income tax to bring it home. second, for a tax inverngs to work, the acquisition must be at least 25% of the companies market cap, in other words, there has to be an acquisition target that's big enough to buy. third, and this makes the most

sense for companies that pay dividends, because the companies in theory could use cash to pay dividends to investors, so, tax rates are obviously very complicated, they vary by country, plus all the loop holes, say a u.s. farm ma company has a substantial cash pile abroad. to pay a $4 dividend using that cash, the company has to transfer $6 to the u.s., then pay up to 35% u.s. corporate income tax to end up with the $4. this is in theory ab and that's after the tax has been taxed abroad. after the inverngs, again in theory, the company could pay a future $4 dividends and not owe anymore of the u.s. corporate income tax which could then free up the other $2 of cash for other things. soex perts say this is why we're seeing this in pharma and biotech and not in tech companies. even know tech companies have a

lot of cash abroad, not enough foreign tech firms to make since to buy. and many are not big dividend payers. and i'll tell you what, tyler, we could also start to see some of these tax inverngs strategies pay out in another sector, and that's industrials. >> because the companies there, the target companies would be big enough to qualify for that, and technology not big enough. if i'm understanding correctly, instead of repay treuating the profits, bringing them back here and baying a dividend, you pay the dividend out of the profits that are being held overseas in a foreign country. >> exactly. >> all right. and you avoid a third layer of tax there. >> a third layer because the other is once that dividend goes out to investors -- >> the individual. >> so two instead of three taxes. >> all right, morgan brennan, thank you very much. simon, down to you. an awful lot of tax inverngss surround farma. mooier will in negative territory in the last year, however it's up a 58%. got a downgrade today from

abraham because in part of the tax inverngs process that it's going through. why did you make that decision? >> well, tax inverngs has been a good thing for mylan. it's good for the company's ability to continue to do an organic deals.it's good for the ability to continue to do an organic deals. it could spill an excess of that, this is not a simple transaction. and we think there are other places to put one's incremental dollar of the near term. >> see one of the major factors to come out of this exclusive interview we had last night is that he's pushing for a surgical piece of legislation that could go through both houses that says if you want to do a tax inversion, we raise the threshold from 20% for an ownership to 50% in order for that to go through. are you worried that perhaps the window might be missed on mylan.

we have a finite opportunity here? >> no, that's not what i'm talking about. i'm talking about, i'm talking about a situation where mylan is acquiring, not acquiring another company, it's acquiring the division of abbot's business, and that's what makes this deal transaction, this deal, this transaction take longer to occur. i do, i don't believe that the window's closing any time soon. and surprisingly this talk is coming out of the white house at the moment, but i don't see the window closing any time soon. >> thank you for your time. joining tlus from citi. back to you. >> thank you very much. panel now to discuss that and more. at the washington post, josh boke with the associate the press, and chief economist. folks, what's your view here? josh, let me start with you. is there any likelihood that this gap in our tax law will be closed any time soon? >> it appears extremely unlikely

without broader tax reform. and obama said in his interview with cnbc the last time that happened was in 1986. to put that in perspective, the u.s. economy was growing at 3.5% in '86. and we haven't seen an economy grow enough such that both sides might be more willing to compromise. and that's going to be a problem in doing anything on taxes. >> joe, how big, how big could this get, really? right now so far, these inversions have largely not exclusively, but largely by pharmaceutical companies, but there's no barrier as morgan brennan said for other companies to do it. could it get much bigger? >> perhaps, tyler. to me the issue is really the message that some type of tax reform would seen. narrowly targeted or broader. and i agree that it's unlikely you're going to get a targeted program. part of a larger package where both sides, dims and -- democrats and republicans get

what they want. but can you imagine how much better the economy would do if corporate america had sense that washington can work together, and you had a more efficient tax system? both parties agree it's broken, but they can't do anything about it. and the election this year makes it highly, highly unlikely that anything happens. >> elan, you're in washington, you listen to executives, we had several on yesterday, they all decry the complexity, the sort of visiting nature of the u.s. tax code, and they all say it should be reformed. people on both sides of the aisle, they agree, what's going on here? >> well, one of the logistic holdups is in the details of the legislation whether or not got any division to include the companies that were mentioned earlier to sort of put them under the umbrella of any type of prohibition or making it more difficult for these to happen. that's a key sticking point. more broadly, we're in an election year.

we're in the middle of midterm election year, midterm campaign and the fact to me obama is focussing on this message of economic patriottism rather than economic incentives to encourage companies to do this. this is a rhetorical device, and this is more of an issue that he hopes will resinate with voters rather than something that will go through congress. >> always in an election cycle one way or another, aren't we josh? >> totally. and this is a key example of that. we'll see how much more obama talks about it at the stop. >> yeah. >> tyler, if the republicans take the senate, there may not be any mood to compromise the last two years of obama's president si and effectively going no in '16, one side having their view and the other their view. >> interesting. from my part, i would love to see a much simpler tax code with a lot los write-offs across the board. and i would love to see a world where income is regarded as income. . doesn't matter what the source

of it is. what the kind of it is. it's all income. >> it would help growth. >> it would help growth a lot. thank you very much, appreciate it. josh boke of the ap. enjoy the weekend, folks, simon. tyler. a big time he think fund manager is calling the s&p 500 flawed. saying investors will be better off choosing stocks completely at random. is he right? plus in the yahoo finance question of the day, are you picking stocks, tracking industries, or doing both right now? go to yahoo.com and vote. how would you like to live in a former white house? i beg your pardon, a former lighthouse, or fire house? million dollar homes is back with a look at homes that weren't meant to be homes when they were built. ♪

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goltd prices -- gold prices closing where you see bonds up and stock market down. gains, it has, $12.30. so remember, let's get a market flash with don. >> all right, it wasn't that long ago when we told you about that social networks company, it was called sync technology. you know the ones with no revenues or substantial asset us. one employee and headquarters that were supposed to be in bah please and reached $6 billion. those shares had been halted for trading over the last two weeks by the sec.

now they're open for trading, it's down 84% in value, get this, that means that company with no employees, no assets and revenue is still around $650 million. it was expected, but no investors are wondering how low it will go now that it's opening for trading again. back to you. >> thank you very much. david harding runs one of the biggest hedge funds, he's known for bold bets during the financial crisis of 2008. now harding tells cnbc, he believes the index is so flawed that even picking stocks at random offers far better returns than tracking the benchmark. so you've heard the argument, now to weigh in, s&p capitol iq, and bob are all with me now. todd, you first, for an -- from an asset management view, what makes sense? >> s&p 500 index is market tap weighted. if you want to take a bet, take a growth bet through an etf from i shares or value bet, or you

can choose individual stocks that you think have strong fundamentals instead of own 500, own a smaller subset of good structured companies. >> mishmash. >> yeah, instead of owning everything, it's hard to outever. the benchmark. if you want to tilt and go one way or the other. management is still consistently out of performance. >> and that's the point that he makes, only 20% kenny of the big cap fund actually outperform the events. >> that's right. but his argument about just choose 50 random stocks makes no sense to me. why would you choose 50 stocks you nothing about, you haven't put it the in a plan. you haven't put it to the test, if you want to choose 50 random stocks as homework that you would go through, very much like todd said. if you want growth, pick some of the growth things. value, some combination, but to pick 50 random stocks, or if i track the index is weighting

towards those that are winning. that is an automatic thing, isn't it? >> yeah, this goes back, this goes back to burton and random walk down wall street. the bottom line is, personally i've been a jack vogel desieple, when you add in the fees, passive management will beat it in the long run. that's why i'm an etf guy. there are great legendary stocks. s&p is not flawed. market capitolization is a reasonable way to weight an index. there are other ways. wisdom tree has other ways and i'm willing to look at that, but throwing darts at a board, that goes, that's different than passive management. that's just throwing darts at a board, not the same thing. >> thank you very much guys. today's yahoo finance question of the day, is the market, are you better off picking stocks or index fund? 34% say stocks, 32% say picking index funds, 34 say you have to

combine your pick, relatively evenly squared. it has to be said. okay, let's get a quick check on the market. the bond were rallying, let's look at exactly where we are. and there you can see chart of amazon which is one of the main lose source far today. look back to the bull market, and you'll see yes, the bonds are rallying there therefore the yields are low. that's your bond market report heading into the weekend. wandering on the back of its latest earnings, revenues are growing, but so are costs in a big way. stock down more than 20% if from its all time high in january. are investors losing patients? the three big issues facing that ceo. plus cnbc million dollar homes, homes that originally weren't meant to be homes. fire houses, lighthouses, warehouses, and more. e

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we're keeping an eye on the em is bah sis today. down 137 points as you can see on the dow as we head into the weekend, tyler. >> thanks. cnbc's home competition is back. six homes battling all day long to see which one is the best bang for your million dollars. and this time we're going to look at reclaimed homes, each home originally built for another purpose. such as a mill or a church. here's how the game works. $2 million homes face off, for the first time ever, we're going to have you choose the winner. it's a live vote. here's how, vote as many times as you want, get ready and go to cnbc.com/vote, the winner moves on and the loser is eliminated. so far, the mill mansion has won in rounds one and two on to a new contender now. the church condo.

>> this sits on three and three quarter acres. it's listed on the national historic register and recently, its been functioning as a bed and breakfast. inside this 6,000 square foot home. many pieces of the original machinery remain. alongside modern appliances. like these authentic brain funnels, now lights inside this enormous commercial grade kitchen. this property has three bedrooms, one full bathroom and two half baths with wide open floor plans. across four levels. and this detached guest cottage used to be the hog house. in the early 19th century, this water fall powered the mill. today, it adds to the peacefulness of this farm country property. this historic stone mill for a million dollars. >> this brand new custom condo sits on a blessed location. a historic stone church dating back to 1899.

the unit up occupies what used to be the bell tower. the bell now resides in the front of the building. take the private elevator right into your 2800 square foot home which spans four stories. the church's old wood work has been carefully restored. this home has been transformed for modern living featuring one bedroom, two and a half baths plus three bonus rooms with floor to ceiling windows. panoramic views from the private deck offering a peaceful backdrop in a historic setting. all of this for $975,000. >> wow, those are two interesting places. dolly learn, we learned this morning that the mill mansion is in upstate new york, where the church? >> watertown, massachusetts. >> watertown, massachusetts. >> it's a beautiful, historic place. >> so this church, which is now leading in the voting, keep voting there, folks, to see

which ones you like the best. >> church, church, church. >> oh. so you like the church? >> i love the church. i have to tell you, it is such a beautiful conversion of a church. >> just one bedroom though? >> 3,000 square feet. one bedroom, three bonus rooms, and my feeling is that they call them bonus rooms because they weren't legally allowed to call them a bedroom. >> i see. >> as a result of a window issue or air-conditioning issue. >> i see. >> but they're perfectible use. >> you were describing this condo as a church that has been made into a variety of counters. this particular unit is in the bell tower. >> is the bell tower. encompassing four floors, entire bell tower and interesting fact is, you know the building downtown is being converted in new york city to condos. the top five floors have exactly the same characteristics as this. and that's going to ask over $100 million. when it comes on the market.

>> for unit? >> for the tower. the tower. which is a very similar story to this, it's interesting. >> so on the church there, you said it's four different floors, does the elevator stop on each floor? >> it's a quad rue plex, and stops on the main floor and second floor. >> main and second, be ready for stairs there. >> yeah. yeah. you like it. >> that's your choice. >> that's your choice. >> bought a townhouse, it'd be the same. >> i live in a fourth floor walkup once, it got so hot that the candles would melt. it was hot. >> that's another issue. >> this is all plumed and air-conditioned. >> well, the vote has stopped. >> no, not yet, no, no. >> dolly, the mill. >> oh gosh. >> the mill wins again. that is incredible. you know what it is, it's the visuals. the visuals of the mill, i'm getting e-mail after e-mail and text after text, everyone loves it. but when it cops to putting down your money, would they love it

as much? >> uh-huh. >> because i have to tell you, the mill has not sold in years. and the church sold at the full asking price. >> that's a broker talking right there. >> uh-huh. >> money. money talks. >> we have to leave it there, you'll be back, we'll take on out one. meanwhile, breaking news. yeah, tyler, we just getting this break-in news, bose apparently suing beats electronics. saying they're suing beats in response to a technology of patten infringements for noise cancelling headphones. the noise cancelling headphones would involve 36 different u.s. pattens. of course you're really taking on apple here as well. apple is buying beats for $3 billion. now in part that was for the live streaming service. also involved beats headphones. in that high end section sf headphones, it dominates the market according to mpd. again though, bose suing beats

for patten infringement on noise cancelling head gones, back to you. >> took time. let's look at the stock market, currently down 144 points, hovering near the section lows. amazon and visa weighing on the markets. we will have more after this. ♪ ♪ ♪

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welcome back to "power lunch." big losses for health care related losses today. you can see they are 20 for some of the day after saying it expected higher than expected medical and drug cost. meanwhile the other names in health insurance, especially in medicaid are down big. also hew man in a lower on the day as well. we'll be watching a slew report earnings in the coming weeks. simon, big health insurance names, big focus for investors, back over to you. >> thank you very much. xerox managed to beat estimates from its printing business which is accounts for

about 40% of total revenue. actually fell about 6%. cop is retiring. mark hunter who heads calls european business will take over the top spot and the fed approved the capitol plan of banco. they failed a stress test. stocks sinking of course overall, hovering near session lows down 412 points -- 142 points on the dow. the most active stocks here at the nyse. we're back in two. 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.

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the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. welcome back to "power lunch." coming off the lows in the session, still they're down 16% on the day. the north american truckload carrier reported earnings in lines with estimates, but the company gave weak guidance for the rest of the year. swift is saying it's a higher driver turnover than expected simon, back to you. >> dom, stay with us. we need to talk about where we are on the dow and the general markets in negative territory. also joined me here, it's interesting because we zig zagged for seven days back and forth, back and forth, then we had two up, now we're getting two down and further into

negative territory. >> ting shows the concern about what's going over in the ukraine. we saw brent move up on some reports that the eu may, may be more interested in much stronger sanctions. also some reports that the russians may be supplying heavier weapon systems to separatists, i think that has people nervous. the idea that this doesn't have any effect on us is not quite right. brent moved up and germany had a weak close today. we are seeing a little bit of geopolitical jitters here. >> what's your take? >> the interesting part about that, geopolitical, there's going to be that fear in the marketplace, but there's also the sense that as risk aversion takes place, the economy is part of the discussion no matter what happens. when you see the bigger laggers today, of course with amazon.com, consumer discretionary, and amazon is pretty much the big reason for it. but the other stocks that are following in consumer discretionary are dr horton and lanar, home builders are weak

today, and that of course is a story we've been seeing the past couple of weeks. >> i don't think we should get the wrong impression here. earning season has been very stroke. >> excellent. >> very, very strong. >> we're going to do 9% when the quarter is over, i'm quite certain at this point kwooel see 9% revenue growth. we started out with, excuse me, started out with 6% in the earlier quarter, that's a 50% improvement, and unfortunately, what i'm not happy about is, still very modest revenue growth. 3 to 4% with we should get that up to 5, 6, 7%. it's another reason they're seeing we see a tepid recovery. >> now overall, the earnings reports have been very, very good. today you do have those two sore thumbs. you have visa which is a big constituent in the dow because as dom was mentioning earlier, it's a price weighted index, and the other sore thumb is amazon, these both have individual stories, but you can't, you

can't not say that they're not really affecting those indexes today. but in the broader context, i agree with what you said, bob, i think it's geopolitical stuff. >> and visa is a specific story. people are getting tired of amazon, better revenue growth and not doing anything on the bottom line. visa made it very clear. they're not seeing the sales recovery that we thought. and i think that's an important point. >> they don't feel that the economy is accelerating as you might have expect, tyler, that was the point co made. >> right, that's exactly right. and they've got their own particular problems, but that was the real key there that they're volume all depend on what the consumers are doing and if they aren't using their visas. >> this is a maddening recovery. i was talking to joy about it earlier, it is very difficult to have a consistent narrative, a point of view when you get this kind of choppy data. look what happened, dom was mentioning the home builders,

new home sales yesterday, you looked and said what, this is a fluke, then you look at the revisions and the thing went through the floor on the revisions as well. how do you have a consistent narrative that's bullish or bearish whenout get dat that that doesn't match up well from month to month? it's a maddening time to be in the stock picking business right now. >> you know, we just got word from our control room on the effort by john kerry, u.s. secretary of state, to broke aerocease-fire in the conflict in gaza. apparently that effort, for now, has failed. and the fighting there only seemingly getting hotter by the day. so that is certainly not going to be something that the market is likely to welcome. >> i don't think a lot of people, they won't be many people who are not surprised with that. it's quite clear from the israeli defense force has targets with those tunnels that it wants to take out. and the israeli defense minister saying they're close anyway. i think a lot of people felt that a deal was unlikely until

they'd achieve that. >> while we haven't talked about the gold trade yet, i mean again, if there really is going to be the geopolitical tension, you can't forget about gold. we to want watch gold spiking up. >> only about $12. guys for the moment, let's leave it there and take a quick break. coming up, we have the guy behind the only sell on the street from amazon. we're going to tell you what's in pandora's box and only 153 days until christmas. hope you're ready. if you're not, our crew will help you. lots of things coming up. we, street signs are occupy at the top of the hour with melissa lee joining us today as well. . now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ [ tires screech ] but you better get here fast... [ daughter ] yay, daddy's here! here you go, honey. thank you.

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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. welcome back to "power lunch," shareses are up at session highs, up stock in this down period. you can see the chinese google reported a 34% rise in second quarter profits after the bell yesterday. of all things, mobile services for the big beats simon, back over to you. we continue to fall further into negative territory. dow down 151, more winners

though, verisign is a winner. a lot of the insurance stocks are down today, along with a the home builders. but there, tyler, three winners. that is all for power lurge this friday. >> simon, always great to be with you. "street signs" begins right now. happy friday everybody, the sun is shining outside, but the markets are not we're just a few on the party of all the others. the drug that both saves and kills. we'll explain. and good news if you like shopping, guy or gal. 40% is the new normal, but the retailers make any money? million dollar homes plus billion dollar divorces. we have it all here on street signs. thanks for joining us as well today. >>