josh brown. >> vwo. that does it for you. there's the dow, up 32 points, on thereabouts. that does it for us. "power lunch" begins right now. war in the middle east, heavy fighting in eastern europe between russian separatists and ukrainian troops. hello, i'm tyler mathisen. >> and i'm kayla tausche in for sue today. now there is a new factor for the markets to digest, europe getting tougher on russia. eu governors reaching a deal to hit the oil and financial

sector. our international correspondent michelle caruso-cabrera has more. >> we're awaiting details and also expecting to hear from president obama who may announce additional u.s. sanctions. the eu has imposed new sanctions after an am bass endorse meeting today, the most widespread they have done so far, what think call sectoral sanctions, no longer just individuals, but now bigger entities, and you named it, the financial sector, defense, also what they call dual-use technology. what we don't know is what are the specific companies they will target. they will name specifics. we expect five different banks to get named, but we don't know the specifics. when you look at the russian

etfs that trade here in the united states, look at that. they're all higher. that may be a kay of people selling ahead of selling on the rumor and then buying on the news. take a look at the one-week chart. this is the most actively trade ed the rsx shot up on the news but traded lower as we awaited what's happening. when you look at the one-week chart, these sanctions had been signaled that they were coming, so as a result we saw a lot of heavy. this is the russian stock market when it reopens. it's already been getting hammered all week in light of expectations of more sanctions. also we're going to watch what happens with shares of sperbank. and we want to show you the

overall impact that the sanctions have had on the russian stock market at this point, because look at some comparative multiples here. sperbasic p.e. of 4.4. citi bank's is 16. -looking at the energy sector, which has already been sanctioned in some ways, you compare that to exxon mobil with a p.e. of 14. a lot of people look at the russian mark and say, wow, it's really cheap, but often gets cheaper. >> thank you, michelle, very much. a big question stateside. what will the new sanctions on russia mean for some of the biggest american company that is do business there? gm has $7 billion in revenue from russia. pepsi, jpmorgan about $5 billion, and ford and mcdonald's almost $3 billion apiece. it is a split ticket there with gm, pepsico and jpmorgan down fractionally today. ford and mcdonald's up a little

bit. meanwhile, let's go to bertha coombs for a market flash. >> the stock spiking after cass blanca capital announced that all six of the nominees have been elected to the cliffs board of directors. >> thanks so much, bertha. treasuries have been flat in light of all of this news. that's on the backdrop of the five-year note. rick santelli, what is the auction doing right now? >> $35 billion of five-year notes just hit the streets. the grade on this auction demand wiz is strait up. a-minus. very solid auction. the yield 1.72. the offer side of the one issued market was 172 1/2, the low yield in the one issued market was 169 1/2, so this was super sold, 2.81 bill to covered trumps the 2.72 ten auction average. better than average on indirects

at 48.2. 25.9 on directs, best since december of 2012, which means the dealers -- what did they end up with? dealers took a significantly less chunk of the auction based on the directs. don't have the final figures, but a-minus. back to you. >> thank you very much, rick. another big story this hour ahead of the fed meeting results, the cnbc fed surveys, steve liesman focusing on growth and your first graph is very interesting. >> scary? >> a little bit, yeah. >> let me show you why it may not be or is overly optimistic. what's happens is the growth framt for 2014 and '15 have both come down. this is percent change year over year. now we're down to 189. if you can zoom in on that, that was the number for last year as

well. this won't be the year of growth. however, we think we hit about zero? the first half. to get to 189, do the math at home, folks, you knee about a 3.8 in the second half, almost 4% growth. this may be too optimistic. the story for next year remains impact. what you see here is we did come down as 275 from a high of 3 for this series, so we'll see and monitor whether that remains intact. but the big drop right northeasterly is the story for 2014 because of that big negative number. we're getting gdp tomorrow for the second quarter to see how much ground we have to make up. meanwhile, the probability of recession, it did tick up just a little bit, but remains in this area we've been for a very long time. let's go back and look back at 2011. 36% was the high watershed market. not a lot of concern right now

with the fed with their foot on the accelerator, at least right now. and geopolitical threats, we asked our respondents on a scale of zero, not concerned to 10 being very concerned. how much concerned do you have that russia or israel -- they're about the middle here, russia a bit ahead of israel for the possibility of wider global risk. what are the biggest threats out there? a lot of kind of disperse here. slow job growth. the big run, one that's been talking regulatory and tax policies, which is a catch jaw for a lot of stuff that is going on and is not going on. we've got to have 4% to get to 189? >> you have to do the math. >> but nothing in 2015 see anything close to 4%.

>> they don't, and that's not in the forecast. 3% is what i'm hearing fro third and fourth quarters, soiology we'll do that 189. coming back in a bit to talk about how this fed policy will end. mr. leashman, thank you very much. kayla, down to you. we're watching earnings. several big names not up to snuff last quarter, and some stocks are being punished. >> i'm a little worried right now, but maybe not in the long term. a lot of earnings misses, and earnings and revenue missions. "new york times" big miss, their ad revenues declined, then united parcel service with a miss. eastman chemical, not on the chart, but they had a big revenue miss, look at the declines here, 6%, 9%, eastman is down. is this the start of a trend? we've had some high-profile earnings misses recently.

for example. that's higher than it's historically been, and a trend is to the up side on earnings and revenues, earnings for the second quarter up 8.4%. if that holds, even the revenues are getting better, now close to 5%. we'd like to see it higher, 7 or 8, but still moving in the right direction. finally, kayla, what's important is the guidance. so far the guidance for the third quarter much better than the guidance for the first quarter. much fewer negative guidance and more positive guidance. still 2 to 1 negative to positive. >> so we're getting out of that place where people are saying the expectations were just so low, now they're guiding higher. >> and i think today was a bit of an anomaly. we're about 52% of the way through earnings season, so i'll

keep an eye on that. >> thank you, bob. > . we also is have jim dunnigan on hand. they have 130 billionened management. thanks to you both for joining us today. mike, i want to start with you. we're seeing earnings growth, 4.9%, consumer confidence is the best in seven years. did the economy heal while we weren't looking? >> we had a snap back from the first quarter, which is very, very weak. i think one of the big mistakes people are making is every year we come in more optimistic that it will accelerate however, that's a very good environment for earnings to continue to grow. they get 2% revenue growth, plus low inflation and they're delivering the earnings on that kind of gdp numbers. >> and we're seeing the stocks expand as well. when you look at data like what

steve liesman showed us, which is basically that gdp for the most part might be in the 3% range not even next year, you say we're going to see a 4% print tomorrow. why are you so optimistic? >> we think the rebound from that abysmal first quarter will be much stronger than the consensus we'll see continued growth, so hard to track off the first quarter, so i think you have to look forward to see, and you can see many of the numbers support higher growth. and you bring up a good point. the fed meeting is kicking off today. mike, what sort of picture does all of this economic data paint for the fed as they go into their meeting today? >> the fed has been pretty clear about what they think about the economy. the private economy is doing

okay, right? enough to generate 2 hubz,000 jobs a month or more for the last six months. that's the key metric for the fed, they have said that. so, look, our view is the two-year note is probably too low. we think as the market moves past the end of tapering, which is october, they're going to start to focus on the big hikes, and the two-year note is way lower than it probably should e be. >> what sort of volatility should shake up the market? >> it's really the speed in which, you know, the market thinks we get to the first hike and the rate of increase from there. i think the surprise could come sometime this fall, whether at jackson hole or maybe the september meeting, where the fed has to transition the market. our view all along has been that tapering is tightening. >> it's not a rate hike, but the beginning of the tightening policy. the market is kind of taking it a different way. once we get past the end of qe, the short end will move pretty

quick. the other news that's front and center, the new sanctions from the eu. you don't have as much exposure to this sector right now that is expected to be affected the most, but do you stay away from names that could potential be affected? the market doesn't seem to be thinking much of them. >> i think at this point in time it's hard to take a read here in the early signs and what the sanctions will be, kayla. typically, you know, rather short-lived. it all depends on the reaction of russia to those sanctions and how long they take to react. i wouldn't be quick here to make any knee-jerk reactions to the sanctions until we see how prolonged they are in fact in place and how that situation, if the tensions de-escalate there, that would be a positive overall for the markets. mike. >> just a quick final word, you're still buying europe? >> we're still buying europe. we think the summer swoon is a function of a couple things.

first the ecb did their thing on june 5th, and the aqrs, and the bank stress tests, that's the anxiety creating the opportunity right know. dow is up 22 midday, for now, mike, jim, thanks to you both. let's go to berth that coombs for a market flashback. >> kayla, check out wynne resorts. with increased gambling in las vegas helping to overcome weak growth in macau. and other sin city stocks are following suit today, getting a bit of a lift. it's all about vegas, baby, tyler. thank you, bertha. first china wen after mcdonald's last week, then russia, now japan, the stock down 5%. sara eisen is live at the nyse. >> expired chicken is the latest

cull print, specifically mcdonald's japan, which was set to see the first profit increase in years and actually had to get rid of the forecasts because of the uncertainty around the meat coming from china and the impact that's having on its customers. we've been covering this latest food safety care in china where a under of an illinois-based company found bad chicken and beef. now we're seeing the ripple effect, mcdonald's in japan saying earnings targets will not be met this year because of, quote, the negative impact on sales and consumer confidence resulting from this incident combined with the resulting lost margins, and to restore trust of our customers. executives there saying they're losing 15% to 20% of the daily sales, compared with original projections. they're working on alternative supplies, but obviously consumers are already losing trust. just for reference m. donald's

japan is about 50% owned by mcdonald's corporation. it's been trying to turn around sales, closing stores, cutting costs, raising burger prices, until this, tyler. they do have new tofu mcnuggets on the menu this week, so maybe that should help. will slaybaugh, what do these international incidents mean for mcdonald's revenues and profits and its stock? >> thanks for having she. we you this that china and japan make up close to 10% of the company os total revenues. both of those markets are more company-owned, which means it could have a disproportionate impact on profit, so we think it could be impactful on the third quarter. >> you think the stock dao go down? >> i think it could.

japan has been a fairly troubled market. china has been doing pretty well, you know that could put pressure on both markets. >> very quickly. a rating on the stock? >> really just downgraded to equal weight. let's look at the people who cover mcdonald's on wall street, about 24 of them, 17 have a hold, buy 7, sell 0. kayla? thank, tyler. when we come back, two headaches, a potential big one, phil lebeau is on both of the stories. >> kayla, it has been a great five-year return in terms of sales and profitability for the auto industry. some are now asking is it possibility the auto cycle as peaked? and something is crawling around in the headquarters at united. those stories when we return. i know it's is the says

perfect case for roscoe the bedbug dog. how does he sniff out the critters? roscoe himself will join us live in two minutes. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. virtually all your important legal matters in just minutes.

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♪ i voted for culture... ...with a 'k.' how are you? i voted for plausible deniability. i didn't kill her, david. and i voted for decisive military action. ♪ america, you cast your votes. now, go to xfinity on demand and select the people's hotlist to see this summer's top 100 shows and movies. i voted! saying it expects the earnings growth to reaccelerate.

costco trading up there nearly 2% on the day. goldman downgraded walmart from a neutral to a buy, saying it believes the current strategy will cause a reduction in capital returns. wall matt is flat, to the up side about a quarter of a percent. tyler, over to you with a special guest. we'll get to the special guest in just a moment. it's not a five-year bull run in stocks that investors are worried about. there are fears that the five years of soaring ground that the auto makers have seen may be coming to a rough spot. phil lebeau is in chicago. >> just look at the stocks, tyler. let's be clear. nobody is saying that allo sales are expected to fall. they're expected to remain robust. in fact when the go into showrooms you'll see a lot of optimism cheer expected to come in at a snail's pace.

about the fourth straight month of sales over 16 million, and when we talked with the dealership here in chicago, they said 9 problem is finding enough vehicles to sell quickly enough. >> i'm more concerned about not having enough cars. it'sing a long time since i've had that feeling, usually you go into it you have too much inventory, right now i'm saying we don't have enough inventory. i'm saying we need more cars. >> or do we need more cars to be build by the autoindustry? look at the surge in auto sales over the last five years. nobody denies this has been fantastic for the industry. what you don't see, however, is the auto production, which has skyrocketed since 2010. in fact automakers are planning to all roughly 3.5 million vehicles in north american capacity, a lot of that down in members ko, headed for showrooms here. that has adam jonas worked about

where the industry is headed. >> we think we're going from a consumer attitude of i need to replace my car, so i really just want to replace my car, or i can't afford to give up this great deal giving to me by various financial institutions. so that's starting to concern us a bit. adam is not the only analyst who said this is not the time to be investing in auto stocks. as a result take a look at what we've seen versus the s&p 500, tyler. no comparison at all. you do not want to invest in the auto stocks toward the end of aic sole. you said to be in toward the beginning of a cycle. the concern is there will be so much supply, tyler, that you will have dealer at some point say, you know what? we need to move the metal. it's coming from the production lines, so that's the concern that we're approaching that point. >> let's take you to our yahoo financial question of the day.

strongest since 2006. do you think auto sales are at or near a top? 34% say yes, they are, no there's room to grow say 30%. 36% say i think they'll flatten out. a perfect curve there. before we let you go, phil, we're getting reports that united has some things causing problems at headquarters in chicago. >> yeah, this is a report that, when i first saw this, i said, seriously? but it shouldn't come as a huge surprise. i think these are also critters in more places than we expect. bedbugs have been found in the headquarters at united airlines. we're talking about the headquarters, not on the planes. the headquarters is located in willis tower, used to be known as sears tower. united has 916th floor. we called united, asked for a statement, they said we did identify an isolated issue in a small group of cubicles and immediately brought in exterminator toss do a full remediation. we continue to bring in

exterminators on site to ensure eradicati eradication. taking a look at shares of united. it's an interesting story to say the least. >> unchanged on that bedbug news. let's meet roscoe, and rescued beagle and lead investigator at a pest control company. he performs thousands of inspections in people's apartments, houses, homes, hospitals, even here at cnbc just moments ago. didn't find anything other than some lunch. with us is her co-worker jennifer erdogan. roscoe, what did you find here at cnbc today? any thoughts, roscoe? hock accurate are you? >> 98% accurate. what is a day in roscoe's life like? >> he's shedding.

>> i know, he is. we'll wake up, do a little training, get him out in a field. if he does a large inspection with a company, it may just by one large 30,000 inspection. residences about four, five in a day. >> roscoe is beautiful, he's clean, he's nice. >> yes. >> there are some people who say the bedbug dogs aren't perfect, they sometimes bring false positives. what do you do when you say there's bedbugs here? what do you do to follow through on that? >> the handler will inspect the area that he areas letters. we will look for bedbug activity, such as fecal spotting, live bedbugs, casing. is there an increase? or have they flattened out? >> i think they've increased, if not maintained since 2010. >> well, roscoe, any final thoughts? no? roscoe has no final thoughts. roscoe at bell environmental and his co-worker jennifer, thank

you for being with us. kayla down to you. >> he's a very humble dog about his work. great interview there. when we come back, a day of big stories continues. we have seema mody working on momentum and julia on twitter. >> kayla, twitter reports after the bell. there are three big issues -- revenue growth, user numbers and what the ceo has to say. >> we talk about momentum a lot. will the stock behind that momentum are getting set to report earnings. will the data be enough to push the stocks higher? "power lunch" back in two. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

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welcome back to "power lunch." today lyric upgrading the stock and raising the price target to 142 from $102 a share. shares surging another 13% on the day. kayla? thanks so much, bertha, a check on gold. prices are closing right now. take a look at our trade today. below that 1300 level. 1298 is the price for august gold. so there are your appreciate metals. time for the "power lunch" countdown. julia boorsing joins us from san francisco. it's all about twitter, shares of the social media giant up 10%

over the past quarter, not so hot over the past year to date, but the stock down 40% year to date. revenue growth will be in the spotlight, what is twitter doing, julia, to fuel growth there? >> well, kayla, twitter has made a number of changes which should booth -- and one key thing in april they launched app. install ads. this is a category of ads that facebook has had success with, encouraging people to go download an app.. the key number there will be average revenue per user and also average revenue we are thousand time line used. and the number of users going to be more important than ever. there was always pressure for twitter to grow their user base. how much more pressure after facebook's surprisingly strong earnings last week. >> the appreciate is on. the key question is can twitter make its service more of a mainstream service.

it's expected to grow from 255 million yards to 267 million now. it's expected to get a being boost from the world cup, but then the question is, can it hold on to the users, or are these people going to sign up, use it to talk about soccer, and then forget about it. we'll be using those -- and any indication of how much they can maintain that. >> i know you'll be asking all these questions to the ceo. you have an exclusive interview on "closing bell" today. a lot of people weighing in with questions of their own. #askcostello. what are they ask? >> some of them is what will twit el be like in ten years? , and how many fake accounts does twitter have? be honest. so we'll have to include some of those in our interview. >> be honest. i like that. we'll be tuning in, julia. thanks so much. we're watching momentum stocks in focus also where. seema mody is tracking them.

despite concerns over valuations, many of these stocks have actually rebounded in recent weeks, right? what's behind this? >> you guys were talking about twitter, social media yelp also reports this week, how much it makes from local merchants internet stocks will also be in focus, analysts will be looking for evidence of growth in hotel bookings, which makes up about two thirds of its overall revenue. hotel bookings, $375 billion market and expedia owns nearly 5% of the space. go pro, remember that fun day at the nasdaq, profitable, fast-growing consumer electronics company. the street will be anxiously awaiting details around expansion, plus evidence of everyday consumer, not just with an act ifr lifetime like surfers, tesla, investors will want to know how many vehicles it sold in the quarter as well

as any details behind a battery giga factory. while we have seen a comeback in many of these names. so-called momentum stocks will be in focus. back to you. >> seema, a lot of questions on a busy week. thanks for rounding them up for us. treasuries are flat on the day. we want a check back on the bond action after that five-year note auction. rick santelli is tracking that at the cme. >> we're a little better than flawed. yields are a bit lower after the very solid action. we're at low yields, his turkey yields, there you see the five-year. look at fives versus 30s, a two-day shatter, we shaved another basis points out. the news came out around 10:40 eastern. very close to 134. happened right about that time.

tyler, back to you. thank you very much, rick. they saw the fed's easing money policy will ahn just as badly. accomplice, what do you think? will the fed's exit end well or not so well? go to cnbc.com/vote and weigh in in real time. the ca♪illac summer collection is here. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style.

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♪ i voted for culture... ...with a 'k.' how are you? i voted for plausible deniability. i didn't kill her, david. and i voted for decisive military action. ♪

america, you cast your votes. now, go to xfinity on demand and select the people's hotlist to see this summer's top 100 shows and movies. i voted! impax labs getting hit after concerns of the factor in taiwan. unsatisfactory manufacturing practices have become an achilles' heel for them. over to you. >> thank you so much, bertha. movers, allstate downgraded at william blare. the firm expects the insurance company's to peak. xl group, and the firm's rating

on the property and casualty insurance company remains overweight. price target 39 bucks salary beauty holdings upgraded. the firm kept its price target at $29, but that stock is up to $25.48, up nearly 5% today, ty. >> kayla, thank you. a new cnbc fed survey finds the market is equally divided. while 34% say the fed's monetary policy will end badly. another 34% say the fed can execute a smooth exit. about half say the current policy is too easy, and 43% say it's just right. john lonsky is chief economist, and says this whole thing could end well. bob brusca, who thinks it won't. steve liesman, he's right in the middle of it all. take it away. >> our viewers can play this fed game at home to join the conversation at cnbc.com/vote, to tell us what your opinion is

of whether or not this easen monetary policy will -- both government ph.d.s, and have come to opposite conclusion about the fed policy. bob bruska, tell us why you think it will end badly. >> i think they kept interest rates very low for a very long period of time. i think they just have too many things they have to juggle, too many balls in the air in order to avoid making a mistake. its think it's a different thing for them to try to do. i think there's some division on what to do, and i think that having a division will make it harder for them to do the right thing in a timely fashion. >> what does badly mean to you? how does it end? >> to me the most likely thing is we wind up getting inflation if the fed doesn't react to it. they think there's slacks in the economy t then one day they'll say something you can't say on tv itches john, a $4.4 trillion

balance sheet, zero interest rates that will surge rule go somewhere near 4%. how do they get there? >> first of all, on the balance sheet, we had a comparable situation involving the bank of japan, yet inflation never took off. until recently japan was suffering from chronic price deflation. until i begin toss thissing in in reserve, produce more in terms of loan growth, chances are it will not go ahead and trigger a lasting up turn. sure, we could get a run-up by prices over the near term, but if price growth continues to outpace wage growth, chances are that will be self-correcting. we may find consumers.

>> half of our audience is throwing stuff at the television at you. they say the fed never gets it right. what evidence is there? >> i think they did a very good job at trying to engineer a decline or reining in that perhaps wasn't enough. we're looking at a year over year drop-off. >> you can make the argument that maybe the fed began to taper a bit too early. right now, i don't see that in their -- in their posture.

that's the problem. when bad things happen, you have to believe it. >> thank you for joining us. >> go, michigan state guy, you are a va guy. >> i am. >> guys, thank you very much. about 5% of you say poorly, about 40% say it will end okay. so there is the vote. kayla? east versus west coast, where would you rather own a home? malibu or the hamptons? jane wells is live in malibu. here's a core rot. since we don't have real bugs, you have to buy sculpture. status symbols of is the rich up

here. >> first there was golf and yoga, now paddleboarding is the hottest workout trend among the super-rich in the hamptons. we'll meet the paddle diva after the break.

welcome back. shares of chesapeake moving higher, on news that it's going to purchase the unrestricted subsidiary. chesapeake trading up nearly 1.4% on the news, kayla. it's the battle of the billionaire beach places. jane wells in malibu california. robert frank is in west hampton. robert, tell us what's included in the good life in the hamptons?

>> here are some other favorite things and status symbols in the hamptons this summer. living the good life in the hamptons has always been expensive, but now the hamptons has taken status to a whole new level. leave the ferrari in the garage. the real rich get to the hamptons on blade, the new uber for helicopters, you'll need sandals like they at $135, and bondy glint in gold and silver. and to keep up that beach body, hampennites have taken to paddleboarding. >> it allows for the user to get very intimate. >> down this alley is one of the hamptons best kept secrets. a bar owned by a billionaire and bon jovi, and they make one of the hottest drinks in the

hamptons, 9 spicy marg gritta at the blue parrot costs only $14. here in paradise, you begin the day at malibu bluffs park above the pacific doing tie which i, th taichi, and then to biodynamic kale, and then rent gear. jay quood to be a stand-in no clint eastwood, then use an app. to locate hidden public access points to carbon beach. up next, walk your rescue dogs at the malibu country mart where actor rob reiner is pushing a ballot initiative to reduce the number of chain retailers to keep malibu malibu. the wealthy eat at nobu, but

the locals eel at ollies duck and dive. and pure spa malibu with a or vampire lift. and finish the day in the mountains, improving your inner peace at the ashram where the rich and famous come to center themselves for a mere five grand a week. man, do i feel good. this is the daily outfit you wear, yoga pants, shirr, flip flopping, the better to eat your biodynamic carrot in your raw malibu honey. kayla, i feel so good about myself. >> jane, it certainly doesn't seem like a bad day's work. robert, jane's argument before was that malibu is relatively close to l.a., how long does a helicopter take you to get from new york to the hamptons? >> only a half hour. before i promised you that water view from this house, now we're

going to turn -- o. look at that. >> you promised and you delivered. >> reporter: oh, so what? who cares? >> reporter: now we go back to the lobster. what else do you need? heaven in the hamptons, provided you can get through the traffic. >> flying a helicopter isn't very green, robert. it's better to do your peru is down pch. i want to correct something from the last show? when you add in all the square footage of all three structures, it's almost 19,000 square feet. >> we'll leave it up. >> unapologetic wealth, jane. >> before we get the final results, is there an off-season in the hamptons? could you use this in the winter or autumn? >> it is. it's wintererized. one thing, the hottest sandwich in the hamptons, a blowfish wrap. pretty amazing. they sell like hundreds of these a weekend.

>> reporter: that sounds dangerous. >> it tastes good. >> that was tastier, but to each their own. we're going to lock in the vote. >> reporter: i feel so good. >> take a look at the vote. hamptons, robert, 44%, malibu the winner at 56%, though we did have a very close call there. >> reporter: it's rigged! >> 2 for 2 for jane. ty, back to you. >> woo-hoo! we have to bring sobriety back to this. argentina on the edge of default. just one day left. what's at stake for some big hedge funds? that's next.

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we're now about 36 hours away from what may be an impasse. and there's no break in the logjam. argentina -- is refusing to negotiate with a small group of bond investors. they have until tomorrow to

change their mind the refusal to stop may stem from rufo, a detail of argentina's contract with other bondholders that stads for rights upon future offers. they made demand fuller payment. argentina has three options. two, hope for a federal judge to change his order mandating that everyone be paid at once, or three, default. if they do, elliott is circling globe for assets it can collect. in 2012, it in an effort to collect of money, this was off the coast of ghana. under a recent supreme court opinion, the hedge fund is free to look for over overseas assets

that it could potential liquidate in exchange for cash. >> kate kelly reporting. let's see what's coming up on "street signs." the screws are really tightening on russia. we'll look at whether or not this time it's going to work. headlines about america's debt are they overblown? if i was a restaurant owner, i would not like this latest move by yelp. all the details at the top of the hour. make sure you join us at 2:00 p.m. eastern for "street signs." thank ythank you for defendiyour sacrifice. and thank you for your bravery.

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. gravity setting in on el pollo locko. today investors taking some profit. kayla. let's take stock of the major indices. despite going into negative territory, when the first news of those new european sanctions against europe -- against russia were inked this morning, major averages sold off, but now managing to get slightly into the green, as we go into a busy market close with lots of earnings after the bell. >> this is a busy, busy week, obviously for economic data, we're going to get a gdp number,

the fed tomorrow, also on friday the unemployment number and auto sales. there's a lot of data to go through, kayla, on top of the earnings which have been part of the narrative this week. >> not a week for vacation, that's for sure. >> thanks very much. that will do it for "power lunch." >> "street signs" begins right now. -isha might be hit with even more sanctions as earnings take center stage for stocks. hi, everybody. then hat dramatic video of israel's strike on gaza's only power plant. and what yelp just did to make every restaurant owner nervous. welcome back. >> good to be back. before losing it all, we have, of