it's continued to this day. >> we have to run. it's priceless. i hope it's been priceless for you in some way, shape or form too. >> i have a good relationship with aol. >> we'll leave it at that. thank you for coming on. that does it for us. >> halftime is over. "power lunch" and second half of the trading day start right now. >> welcome. you've got "power lunch." this is one big week for the markets and for the american economy. we'll tell you what you need to know in this single hour. another hot spot explodes. this is video of a massive gasoline fire in libya near that country's main international airport. it was sparked by artillery fire. plus, a day of deals. three big ones to tell you about. zillow and trulia. dollar tree and family dollar. you have to figure dollar will be in the name. and perhaps an inversion play

involving hospira. and terrible weather in the midwest. it's moving east fast. some areas are getting hit as we speak. look at the damage there. i said it once. i'll say it again. it's a big hour. sue is out. kayla is in at the nyse. >> if you think busy and summer don't belong in the same sentence, think again. we're gearing up for what is the busiest week of the summer for the markets. avalanche of big cap earnings including pfizer, american express and mobil on deck this week. and we're talking g ining gdp,i and jobs. bob pisani, steve liesman and chief international correspondent michelle

caruso-cabrera all here. 140 s&p components on tap to report this week. what are we looking for? >> that's 30% of the s&p 500. it's the biggest week so far. what we're doing right now, numbers are better than anticipated. take a look at where we stand right now. up 8.3% on earnings. that's the best since 2011. second quarter there. revenues, they're getting better. we were only expecting 3% at the start of the quarter. we're up to almost 5%. if we can get over 5%, you'll hear people say definite signs of revenue improvement. after the hill, we'll talk about cabinets and windows and faucets. frankly, i'm not expecting too much. why not? because we've had terrible commentary from a lot of the people who do home improvement. this morning we saw from armstrong world, the company that makes ceiling and floorings, light on earnings and revenues and guidance below expectation down 3%. i'm worried about this particular industry. home builders rolling over as

well. we'll get big global industrial companies tomorrow. these companies operate across dozens of different countries and sell different products and they're a good window on the global business. again, i'm expecting modest growth here. 3m had 3% revenue growth. >> some investors said it was time for a pullback in industrials. we'll see how that industry continues to trade. more on the market later on this hour. for now, thanks. let's get to rick santelli in chicago with some breaking news in the bond market right now. two-year notes up for auction. >> 29 billion of those bouncing two-year notes just hit the hands of investors. yield .544. the market was .545 bid so it's right there. with regard to the grade, i gave it a c. you'll be able to see why. it priced where it should and bid to cover was light.

everything else nailed the average. a very average auction. remember, the yield .544 i just mentioned, highest yield at auction since may of 2011. i think that's probably the most interesting factoid revolving around this particular auction. back to you. >> rick, thank you very much. steve liesman now. big week for economic data. jobs, gdp, two-day fed meeting, housing data thrown in for good measure. you argue this is the most challenging week for chair yellen so far. >> it could be. they interrelate. the big risk for investors is whether economic data comes in at odds with fed policy. it could present janet yellen with the first test of her tenure. should be $10 billion taper

bringing it down. it was 80 million before taper began. ending quantitative easing in october and first rate hike next year. all results of the cnbc fed survey tomorrow. this data could change the fed outlook. expected to show a 10% year over year increase and consumer confidence unchanged in 85 range. the big data begins on wednesday. adp looking for up to 33. reversing the first quarter weakness. watch the prices number and then on friday we'll watch the overall payroll number, unemployment rate and changes whether or not they present changes to the fed. only a slight tweak to language to take note of improving jobs scenario. likely to be serious behind the scenes discussions from hawks and those in the center to speed pup the pace of tapering or move up the timetable for hiking

interest rates. this is how the fed may look at the data. compare it to when qe began. job growth over three-month average much higher. participation rate is down. earnings up. not as high as the fed chair would like. inflation, shows pretty much even. what you don't see on that chart is we've been down as low as 1%. on the way up. here's the issue for the fed. it's one that investors have highlighted. can policy remain so far away from normal and can it stay there for so long while the economy, which is what we should get this week, tyler, shows us it's a lot closer to normal. that difference between the two presents the challenge for yellen to explain herself. >> spin the film ahead. is she going next month to jackson hole? that's going to be an interesting conference. >> it's my understanding and belief she'll be there. >> unlike bernanke who didn't go

last year, right? >> he missed the last one. >> all right. >> it's shaping up to be an interesting jackson hole meeting. >> you'll be there? >> it's my understanding and belief that i will be there. >> we hope so. thank you, steve. the crisis in the middle east nothing to laugh about. it's expanding at this hour. u.s. embassy personnel were evacuated from libya yesterday as warring factions turned tripoli into a battleground. artillery fire slamming into a huge oil depot near the airport. massive explosion and fire could be seen from miles away. over in gaza, a massive explosion at the main hospital where hamas leaders are reportedly hiding but israel says it was not operating in the area. israel was not that is. the israeli army says the explosion was caused by two hamas missiles that misfired. several people were killed and injured. at the same time, four israeli civilians were killed and others

wounded in an attack on southern israel. this video was released a short time ago showing soldiers detonating a hamas tunnel leading into israel. a big part of the network. you see the explosion going off there. the faces of those soldiers objecscur obscured. a new round of fighting in ukraine. trading gunfire and artillery barrages. the fighting so bad today that international inspectors on the site of the downed malaysian airlines flight 17 had to pull back fearing for their lives. to a developing story we're watching that could trigger the breakup of iraq. our chief international correspondent michelle caruso-cabrera has the details. michelle? >> believe it or not, this starts down in texas. there's a tanker full of 1 million barrels of crude oil sitting off the coast of texas. do you not have my audio?

can you hear me now? okay. believe it or not, this story starts down in texas. there's a tanker full of crude oil sitting off the coast of texas near the port of galveston. these photos shot by the coast guard before an inspection conducted over the weekend, the ship hoping to unload oil in coming days to an unknown buyer in the united states. however, the oil in that tanker comes from kurdistan. they are desperate to sell their own oil so they're not dependent on baghdad but baghdad says what kurds are doing is illegal and violates the country's constitution. they hired to american lawmakers to fight the sales. in a letter obtained by cnbc, all shipping companies in the houston/galveston area that could help the kurds unload this oil have been told they will be in possession of stolen property and if they do pick it up, it should be delivered to custody of the lawyers and not to the

original buyer. there's a lot of international focus on the sunni insurgency in the western part of iraq, northwestern part of iraq. many observers believe the greater threat to the breakup of iraq is the kurds and their long desire to be independent. if they can successfully sell oil despite protests of the u.s. state department and the iraqi government, they're going to be one step closer to achieving first financial independence and then, tyler, full independence potentially. >> all right. michelle, thank you very much. interesting story there. michelle caruso-cabrera. bertha coombs with a market flash. >> this is another story that michelle has had her eye on. a government delegation from argentina set to meet with mediators in new york tomorrow. argentina securities are getting hit. the benchmark index there you can see down over 2% on the day. a number of companies getting hit feeling the pain.

electricity company is down. oil giant ypf has also seen significant losses along with financial services company. not sure we have those charts at the moment. there you go. you can see them. they're all down over 3% on the day. kayla? >> all right. thanks so much for that, bertha. a big week as we mentioned for the economy. we're awaiting the latest jobs report on friday and gdp numbers on wednesday. michael is president at permanent portfolio funds and kevin is president and cio at asset management. good afternoon to both of you. we've had half of the s&p report so far. 8.3% earnings growth. revenue growth too. when you think about what that means for gdp on wednesday, are we going to see something that's a surprise or are we conditioned for a lower print? >> i think we're going to see something around that high 2s to low 3s number. what that does is give us break

even for the year so far. and if you assume that continues through the rest of the year, you're going to get gdp annu annualized growth in high 1s to low 2s. higher than many expected going into the new year but better than the first quarter. earnings are supporting that. i think earnings and revenue growth so far this year have basically supported fundamentally the move in stocks this year. the s&p 500 is up around 7% or 8%. it's a reasonable move and provides a great foundation for stocks going forward. >> kevin, do you think economists are too conservative on gdp? we have seen those numbers come down significantly in just the last week even though the expectation from consensus is still 2.9%. any chance for a surprise to the upside? >> i don't see a surprise to the upside. i think what's most important is we won't have a second consecutive quarter of contraction. two quarters of a contraction marked a recession. we're far from that. going forward, i think the realistic norm for gdp growth is

going to be sub 3% level and that could take place for the next six to eight to ten years where we have gdp growth in the 2% range and that's okay. >> you expect bounce of volatility through the second half of the year. do you think the fed can smooth those over or will those be fed driven? >> i think a large part of that is most investors hope and root for a pullback to re-enter the market. i can make it much more logical case from upside than downside. you look at economic growth and housing starts, i think we're within the midst of a bull market. with that said, there will be intermittent pullbacks creating opportunities for investors to r re-enter the market. >> do you expect geopolitics to continue being in the background as far as the markets are concerned? >> yeah. i think investors are underappreciating the risks in the world right now and focused more domestically on the fed and corporate earnings and the like,

which is fine. you got to worry about those. so much of the u.s. growth story is predicated on international growth and if the legs of that stool fall off, that will impact the u.s. in a big way going forward and that would be a very big risk to stocks. >> we'll leave it there for now. michael, kevin, thanks to you both. tyler, up to you. >> deal of the day. dollar tree buying family dollar for a lot of dollars. 8.5 billion of them bringing together two of north america's biggest retail chains. shares moving up. look at family dollar. look at that. 25% higher in one day. courtney reagan on what this means for investors. kate kelly is looking at the number of hedge fund titans involved in this trade. a lot of money being made here proving you can make money from money. what does this do to the retail landscape? >> you don't see acquirer shares gain with acquires but that's

what's happening today. an early vote of confidence because of those moves. 23% premium over family dollar's closing price on friday. it will provide $300 million in cost savings by the third year. you'll have one-time costs that will total $300 million right away. family dollar and dollar tree brands will remain separate but combination will generate 18 billion in revenue. edward kelly says family dollar could bring in a dollar of earnings to dollar tree but he's gro downgrading shares because he doesn't think it's the best move for shareholders. under the new structure, dollar tree will have more stores than

in the u. walmart in the u.s. square footage is smaller. >> there's a lot of dollars here. more buying power here. >> that's what we would see down the road. if this deal close, the economies of scale could allow them to have more affordable pricing. >> kate kelly looking at who is making money on this deal. hedge fund titans are doing it. i wonder whether any of the gentlemen that we'll talk about have ever been in a family dollar or a dollar tree store. >> if nothing else, they do due diligence on their investments. in terms of shopping, don't know. >> nice shampoo maybe. i don't know. >> you never know. they have a wide saturation in the market. you may have popped in at some point. this company is a popular holding among the hedge funds in recent years. among them, carl icahn.

things didn't pan out as he expected with dollar tree winning family dollar over instead as courtney just discussed. icahn woke up this morning $100 million richer. and now with the stock trading even higher this last hour, i believe it's at all-time highs. he made about 159 million on paper. peltz isn't far behind him. got into the stock in 2010, he's up substantially and with more than 7% of family dollar in his portfolio, overnight earnings look to be about 124 million. finally, john paulson who made his name in the 1990s is up about 96 million overnight. he bought family dollar the same year peltz did and obviously it proved to be a great pick both

for this year and over the longer term depending on where you got in, you could be up -- i haven't even done the math on other guys. could be billion dollar range. >> those guys were delivering alpha two weeks ago. they made more money in that time than you and i have. >> more details on what they had to say at deliveringalpha.com. obviously it's in our interest to say so but it happens to be true as well. >> thanks. appreciate it. kayla, down to you. >> thanks. richard branson's virgin america filing for an ipo. what this says about his aspirations in the u.s. and state of the airline industry right now. they shook up the real estate business a decade ago and now they're merging. morgan has fallout. >> an estimated 90% of americans start their house hunting online. some go to zillow. some go to trulio. that's all about to change.

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welcome back. we're keeping an eye on solar stocks today. shares of enphase trading lower. they found out products were sold too cheaply here in the u.s. market.

and solar etf which trades solar stocks are trading slightly higher following the news. hopefully it will be better makers. >> two big housing disruptors moving in together. online real estate listing sight zillow buying trulia for $3.5 billion in stocks and shares of both of those companies moving higher most especially trulia by almost 17.5%. zillow and trulia shares soaring this year up more than 70%. more than 80%. almost 90% sfor both of those. margaret brennan has more on what this merger means for the companies operating in this area. >> i think the short answer here is this means a combined company that would be the biggest player in the online listing space. zillow and trulia compete ed fo years. two largest sites.

this is an all stock deal that breaks down to equivalent of $70.53 per share for trulia which is why you see shares jump or a 25% premium based on last friday's closing price. zillow shareholders own two-thirds of the company. trulia shareholders the rest. zillow ceo says trulia will continue to operate as its own brand kpcatering to homeowners d retailers. >> it's very helpful to have multiple brands to appeal to a larger audience and i think trulia brand complements zillow brand very well. the overall stats, fewer than half of trulia's visitors visit zillow. it's a differentiated audience already. >> analysts i spoke to said this deal makes sense because the companies have similar business models. both are media companies that focus on real estate and they generate revenue from online

ads. this wouldn't be cannibalizing each other's online traffic. they could wield better pricing power and the deal is expected to close next year. despite lack of competition it would create within the listing space, analysts don't expect regulators to stand in the way. >> doesn't seem like there would be many barriers to entry in that space. get in and off the ground and you can compete. thanks very much. morgue morgue. kayla, down to you. >> the other deal we're watching today is a big ipo. virgin america filing for ipo here in the u.s. phil lebeau has more on what this move means for verirgin an what it is saying about the industry. >> people said don't go into the airline business years ago. things have changed. virgin america is the latest america to capitalize on renewed

enthusiasm for airline stocks on wall street. it filed for an ipo. it posted first profit last year. made just $10 million. it will fund expansion of routes. they are primarily based out of san francisco and l.a. right now. does this mean richard branson will own an airline in the united states and have full ownership? not exactly. look at ownership. a hedge fund owns three-quarters of. the virgin group owns 22%. remember, because of foreign ownership rules, they'll own less than 25% once the ipo is completed. and they are running this ipo and here's the reason they bring this to market. look at the airline index in the last year compared to the s&p 500. no comparison at all. this has been the place to make money on wall street and airlines are posting record profits right now. they are issuing dividends and keeping cost relatively in check

because fuel prices have been fairly modest. so the airline profits are surging due to limited capacity, stronger pricing. that's expected to continue. what you're looking at right now hot market for the airline stocks and that's what they're doing with virgin america right now. they are hitting while the iron is hot. they realize this is the time to bring a deal to the markets. >> all right. phil lebeau, thank you very much. let's go to eamon javers in washington with breaking news. >> white house officials are briefing reporters even as we speak on potential new sanctions against russia. we're getting some wire flashes here and just starting to see some of the reporting on this. what we're seeing is the white house is saying the u.s. will adopt additional sanction against russia. u.s. expect significant european sanction against russia as well as from the united states. also we're seeing the white house expects the eu to sanction sectors of the russian economy. that's the national security adviser to the president in the briefing room right now briefing

reporters on what to expect from this round of sanctions. we're also seeing that the president has asked for immediate unconditional humanitarian cease-fire in the middle east. that's obviously a significant new development on some of the misery that we've seen in the gaza strip with the conflict there. so a couple different things here on the white house's radar screen as we see this briefing. >> let's pivot to another story that i know you have been following. reportedly talks to buy a medical nutrition unit but one of the wrinkles here as we have become accustomed to hearing is the idea that hospira would move headquarters to europe specifically in this case to france of all polices to lower its tax burden. this on a day where treasury secretary wrote an op-ed piece calling for this loophole to be tied off. what can you tell us? >> that's right. procedure is called a tax inversion when a company buys as

foreign subsidiary and is now a foreign company and owned by the subsidiary. the white house has been adamantly against these. we saw the president last week talking about economic patriotism and now as you say in this op-ed, treasury secretary jack lew pressure the case. this is what he wrote in making the argument. he said by moving tax homes overseas, they are making the decision to reduce taxes forcing a greater share of maintaining core public functions on small businesses and hard working americans. but the consensus political conventional wisdom in washington is despite this white house push, we're not likely to see stand alone legislation on tax inversions any time this year. there's a broader push for tax reform and is too big of a pile for washington to take on just this year. we expect nothing to happen. the white house likes the

politics of this though, guys. >> thank you very much. to kayla now with news on the gold close. >> thanks so much, tyler. we're watching gold right now just about to close. look at the chart on gold. it's at 1303. holding above that 1,300 level all day with of course the backdrop of increased geopolitical concerns and of course the federal reserve set to make a decision on interest rates on wednesday so with all of that in the backdrop, you are seeing gold looking like it's actually unchanged as we are just moments away from the official close in the metals complex. a few other headlines we're watching today. plunging more than 30% after an fda rejected pain medication dispensing device. less than $6 right now.

cisco also downgraded citing challenges in the cloud space and margin pressures in new markets. pacific crest says cisco at this hour at $26 is fairly valued but bulls to the upside would be 28 bucks. and pfizer downgraded. it's seeing headwinds and unlimited growth prospects for major pharmaceutical companies. pfizer down less than 1% at $30 right now. when we come back, severe storms threatening many parts of the country. the incredible damage already created and where those storms could be heading next. and the fight against climate change may create some opportunities for investors. we'll tell you where on the other side of "power lunch." ate we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure.

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severe storms around the country. this is damage in parts of northern tennessee after strong storms moved through the area yesterday. ten homes either destroyed or badly damaged. no reports of injury or deaths. the weather channel's carl parker has the latest on the

storm's path. >> what we're looking at is the chance for severe storms once again today in the northeast and it's going to be anywhere from the hudson valley over into new england possibly some wind and hail producing storms this afternoon. here's a look at the area of concern and that extends again from eastern new york and across into the 95 corridor storms firing primarily this afternoon and then really beginning to settle down as we move into the evening hours. cooler air is then going to take over. the feature that's producing all this is an upper low that's now swinging through and in the wake of that, that cooler drier air dropping through a lot of the country. we'll see severe thunderstorms along the gulf coast ahead of the front coming through today and again wind and hail the primary threats in those areas. one other thing that we're watching is this feature. it's an invest area. it's sort of a pretropical depression. it's now being given a 70% chance of developing within the next five days and could affect the islands in the caribbean as early as friday or saturday.

back to you. >> all right. thanks so much for that. more than 80% of california is experiencing extreme or exceptional drought and experts say it could only get worse. but there could be a silver lining. the fight against climate change creating opportunities in some cases for investors. we have co-founder and ceo of motif investing. a company that lets you build your own mini atfs. you wrote a blog about investing in climate change. what are the main takeaways from that. >> the main takeaway is despite naysayers, climate change is getting worse. three months in a row back to back where our co2 exceeded 400 parts per million. the way to invest in climate change has two approaches. slow down emissions and accept it's going to happen and invest in companies that are going to help you clean up water, drought

resistant seeds and stuff like that. >> both of those issues are captured in climate change motif which is index of 25 stocks. what's in that basket? >> think of energy renewables like first solar. think of energy storage companies like ballard and think of energy efficiency companies. but also in the second category of where you are dealing with the reality of climate change, you've got water recycling and cleaning companies. those are kinds of companies that are in there. >> all those companies also have their own unique issues that they are tackling on a corporate basis and not just the general theme of the changing climate. needless to say, two years this motif would have returned 46%. in the last year the performance is just 7.8%. i wonder what the performance has looked like? has it been a roller coaster or fairly steady?

>> it's been fairly steady until recently. there's a lot going on with government tariffs on solar. a lot of things affecting this. one of the nice things about buying an index is you can't pick the individual stock so behind it is actually a 77-stock universe and our motif rebalances quarterly and picks 25 stocks and we adjust the market cap to give you pure exposure so when a company has multiple lines of business, we really tease out that exposurex. >> some people are against climate change. anything for the mnaysayers? >> soon you can short the entire motifs. >> why did you decide to implement shorting now? how does that work? >> it allows us to take categories of motifs and really initiate a short position and it's because a lot of people have differing views on any motive so we have individual

motifs like an obamacare motif so we need an easy way to short so we're responding to that d e dema demand. >> thank you for joining us. we appreciate it. for more on this and the blog post, go to cnbc.com and find it there. we want to get to the bond market where rick santelli is standing by tracking all of the action at the cme. hey, rick. >> hi. we had a two-year note auction today but it didn't make a huge difference. if you look at a chart of two year, it's not very interesting. open the chart up for one year and it becomes a lot more interesting. we're hovering at some of the highest yields since september of last year and about to break to the upside. contrast that with the chart at 14-month low yield and if you think about some of the spreads like 5 to 30s, there's narrows that we've seen in 5 1/2 years. last chart is dollar versus chinese currency. notice that the dollar is at the

lowest level since may. something to pay attention to and really the pmi we had last week that was positive for the chinese economy was one of the catalysts. tyler, back to you. >> thank you very much. turning into busiest week of the summer economically, profit wise, earnings, economy, fed. we'll talk about that as all of those major market barometers are now in the green. plus, a handshake, a high five, or a fist pump. what is the right move in terms of greetings? it's the power rundown coming up. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month

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carl icahn weighing in on the family dollar acquisition saying in a statement we continue to believe there are handful of poe continuation buyers who could realize greater synergies in combination with family dollar and are hopeful that one or more of them will surface as a result of today's announcement. this is a big win, he says, for all shareholders of family dollar and yet another validation of the activists investment philosophy in general. family dollar shares are trading up 24% but for carl, there's a

better deal there somewhere. >> all in a day's work, bertha. >> i guess so. >> thank you for that. let's head up to the nasdaq. seema mody is there. nasdaq in positive territory. >> there's a lot of deal news today. we talked about deals in retail and housing space. more acquisitions for the tech giant apple. apple is close to buying swell. it's described as the panndora for talk radio. another stock in focus, the mexican fast casual chain. shares in rally mode after a strong debut on friday. spoke to the ceo on friday who said ipo proceeds would expand into other locations including houston. while sales are growing, they have been unprofitable for the past three years but nonetheless a big move in shares. speaking of hot ipos, go pro getting set to release earnings

and tesla in focus for tomorrow. >> where are the rich putting their money right now? there's one area they are piling into and robert frank knows what it is. robert? >> millionaires love private equity right now. stocks in some portfolio and we'll tell you why it's attractive and whether the rich know something that you don't coming right up. back of the bus might have a song that he has in his head the bus but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device, up to the cloud it goes, back down it comes, sounding better. we break down the walls of creation and we give music creation for the masses. ♪ ♪ unlock the creativity in anyone. with the ibm cloud. the ibm cloud is the cloud for business.

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working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. we are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. until every kid has built those life-long eating habits, we'll keep working. welcome back to "power lunch." shares of smith & wesson are higher at this hour settling with the s.e.c. for $2 million over charges of improper payments to foreign officials. also shares of family dollar store still surging. dollar tree buying the company in a deal valued at $8.5 billion. investors wanted that deal for years at this point. tyson foods higher on third quarter earnings and news the company is selling its mexican and brazilian poultry businesses to jbs and pilgrims pride.

price tag on that deal $575 million leading tyson up 2.5%. where are ultra wealthy p y putting their money? >> they are drawing down cash and fixed income and boosting private equity holdings. private equity makes up 22% for the portfolio of those members polled. that's almost equal to equities holding at 23% and way above fixed income now. spectrum group says that the richer you are, the faster your private equity holdings are growing. worth 5 million or more, 15% own private equity now way up and those worth $25 million or more, more than half of them now own pe. so what's the appeal? they want long-term returns without volatility of stock. pe returning 13.9% a year

between 2003 and 2013 and want exposure to smaller growth companies and in some case these want to be hands-on with management. they like that control. private equity has a lot of risks. you can lose all of your principle but the rewards can be rich and pe is getting more assessable. kkr launched a fund where you need $10,000 to get in. not just for the rich anymore. >> all right. thank you very much. coming up, a fist bump or a handshake? let's do a fist bump. maybe one reason perhaps why president obama choses to fist bump this maybe rather than kiss him. we'll tell you about that. the new ways to greet and "the new york times" says it's high time to legalize weed. agree or disagree? cast your vote now at cnbc.com/vote. we'll be right back.

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could help your business didavoid hours of delaynd test caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. go to comcastbusiness.com/ checkyourspeed if we can't offer faster speeds - or save you money - we'll give you $150. comcast business. built for business. time for the power rundown. kayla has brought notes for this. i'm just warning you. we want to know what you think. it is high time to legalize marijuana? go to cnbc.com/vote.

and we'll show you the results in realtime. let's get down to the other topics. "wall street journal" reporting regulators are looking into whether jpmorgan chase may have directed private bank clients to invest in its own investment products. when i was growing up in this business, that's what the brokerage houses did. they would steer their customers into the smith barney mutual funds. >> that's half of the perk of being a client of jpmorgan's private bank where you need 10 million in net assets to even qualify with them. the story paints this as a common place early stage i don't want to call it investigation at this point. as long as you're disclosing to clients that you are going to steer them toward your proprietary products, that's fine. two issues could present themselves. one is performance. if you are driving dollars into lower performing funds versus higher performing third-party funds, that could be an issue.

otherwise an inventive. if there's an inventive for jpmorgan bankers to do their own funds versus other funds but otherwise you're right. this seems like business as usual. >> let's move onto topic number two. fast food workers continuing their quest for $15 an hour wages and a union more than 1,000 workers met in chicago over the weekend for sort of occupy fast food event in hopes of pressuring fast food chains and prevaers to meet their demands for higher pay. thoughts here? >> full disclosure here. i have a family member in fast food. he said is a business i know well. the reason you see so much minimum wage debate take place is you are talking about small business owners that give a cut to other revenues to the corporation to use the license and to use that brand. and then they're the ones that turn around with tight margins because it is a restaurant business. they're the ones who pay their employees and that's why you tend to see fast food companies

paying at minimum wage whereas brands, chains that are owned by corporations do tend to pay more than him wage. that's why we see this heat up with fast food. >> $15 an hour does sound like quite a leap for my son who works in a fast food restaurant. i believe he makes about $8.75 an hour. that's a big leap. >> it would be a big leap. and it's unlikely that we'll see much in the way of direct results of something from this protest. of course, we've seen this story before. there have been many protests over the last couple of years when the minimum wage debate has been a topic of national conversation. so we'll see what happens. certainly the more that you see this come to the fore, the likelier you are to get closer to that number. >> vital topic here. fist bumps. are they cleaner than hand shakes? fist bumps transmit the least amount of bacteria. one reason perhaps that president obama does it. i favor a sloppy, wet kiss.

how about you? >> not me. i favor the wave. i hear that's actually the safest. when you're not even touch the person. i found funny in this study, tyler, the longest, firmest hand shakes transmit the most germs. we were taught that was the best way to go. it turns out now that's the most dangerous. >> what do you like? a fist bump? a high five? a low five. >> if you'rethere's nothing lik shaking somebody's hand and getting a read on who they are. >> let's go to "the new york times" editorial board who says it's high time for the federal government to repeal the ban on marijuana. you can cast your vote. let's lock in the results if we have it. i'm sorry? go ahead. we'll discuss it. yes, we'll discuss it. is it time to legalize weed? >> even if we're not talking about weed itself and usage and

smoking of weed, the fact is that legalizing marijuana would do huge things for infrastructure of selling it. these colorado and washington shops have to hold their money in cash because banks won't even process these accounts or process payments for this. the industry really lacks infrastructure to be successful without some sort of federal backing. so regardless of how you feel about the drug, to have it be a viable business, it needs to be legal. >> morgan? >> i say legalize it. repeal the ban as "the new york times" is arguing. repeal the ban on marijuana. that ban is so old that marijuana is spelled with an h instead of a j and compares it to herman caoin and we know tha antiquated way to look at this specific controlled substance. >> i used to be for legalizing it. i have a son. when you have kids and you see it, you may change your point of view. i don't know. i don't know.

i'm conflict ed about it. >> there's something to be said about regulating it. >> there's the vote. 65% yes. 35% no. that is the verdict of the viewers. mr. sullivan has come in here. >> they told me to walk over and give you a sloppy kiss. >> i want to see this. >> we won't at all. >> get in here. "street signs," what's coming up? >> we need to hire taller people around here. big show ahead. why real estate agents are na nervous about the zillow and trulia deal. some rare good news for those of us hoping to retire in 20 years. good news from social security. that's coming up on "street signs." i'm out. >> we'll come back.

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