so, don't shout your opinions, pay the feed, don't be cheap, and don't get drunk. >> there you go. all great advice, judge. that does it for us. "power lunch" picks up the story on the markets, are off the lows right now. halftime is over. the second half of the trading day starts now. >> will there be war? records coming in early today. ukrainian forces tracked a russian military convoy and they proceeded to destroy it. at about that exact minute, as you see right there on that graphic. if i would get out of the way, the do you took a big dip. there it is falling down. the ten-year yield falling sharply as well. to saved up, fleeing the equity markets, fearing the worst in eastern europe. there you see the yield, 233.5.

another big story on our money radar today is the rioting we have seen in the last few days in north st. louis. in the county there, scenes like this have been playing out now for several days since the shooting death of a young african-american. today calm has returned, but we have a special report on the mill tarization of american police department. big money, big-ticket military items are showing up in police forces across the country. is it really necessary? or is it a waste of money. the minute by minute update on what's happening in the ukraine. >> indeed, ty, our top story does -- a russian military force. after that force reportedly crossed ukraine's border. ukraine's leader has told british prime minister that a significant portion of that russian force was destroyed.

and we'll get you up to date like the s&p 500 and where it's sitting right now. right now the s&p is down about seven points, nasdaq down almost ten, the russell 200 is off about eight on the trading session. as for the yield on the ten-year note, here's where it's sitting now. the last trade right now is 2.33%. this is the latest video, last 24 hours of russian tanks on the ukrainian border, with you do not know if this was the force that moved into the ukraine and was attacked, but the it was clear there was a military force near the border and sometimes miscalculations are made. this is separate, of course, from the russian aid convoy that is also approaching the ukrainian border. they're also distributing aid to people and towns caught in the crossfire between ukrainian army forces and pro-russian separatists. so let's talk more about this

can carmine, chief investment strategi strategist, and scott wren at wells fargo advisers. welcome, gentlemen. carmine, help me make sense of this. and what should you do on a day like this? >> well, i think on a day like this, you should look for opportunities to add to positions. unless they events have a major or significant impact on our economy, the impact in the equity market is usually short-lived, the market recovers rather quickly. in order to have a sustained pullback, you would have to have a spike in oil prices, similar to what you said when -- so these are not really big events. europe might be another matter there. europe could -- could weaken significantly from here. before i go to you, scott, couldn't that have a spillover effect on our market if indeed

we see continued weakness in europe? >> it has had, to some extend through the bond market, interest rates have fallen in europe, which has created a strong bid for u.s. debt, the ten-year today is at 1030. and the reality is that it has. typically if you assumed that even you fall to a 1% decline in gdp ire like leg to a one to two percentage point -- it is significant, but earnings have been running at a 10% rate here recently, so i don't think it will be that big of an issue. >> we did see a new knee-jerk reaction, but we seem to have stade yesterday out now. >> well, sue, i think the situation here is, you know, you're on a friday, it's all, volume is thing. over the last couple hours,

traders do not want to go home long stocks and short bonds. so you're seeing, you know bonds rally, you're seeing stocks fall off. i think that's a logical answer when you're going into the weekend when there's a lot of uncertainty, but i would agree with carmine, the chance of this turning into russia ukraine, turning into a big military event. when i say big, i'm talking about drawing in western europe, drawing in the united states to some actual military action, i think that possibility is very, very low, and for me the way this can hurt our stock market, is if europe slows further, our companies make a lot of money in europe. if something like natural gas is cut off or -- i'm looking at how this thing could affect our stock market.

i think there's very little chance. we really appreciate you putting it in perspective. have a great weekend. to bertha coombs. >> sue, we are watching fedex near session lows. the company was indicted on new criminal charges in online -- in an online pharmacy case. the company already faced several criminal counts include conspiracy to distribute controlled substances. fedex is trading off about 1.25%. thank you, bertha. hi, seema. reversing morning gains. how vulnerable this market is off settle lows. one trader told me there is a level of kept simple.

when there is a certainly level of risk -- tends to underperform. that's what we're seeing today. trading to the down side. facebook, amazon also moving to the down side. that being said, the big stock is monster beverage. a $2.1 billion deal as coke looks to diversify. not only the biggest winner on the nasdaq but also a big winner this week, talking about big winners. take a look at intel. puerto rico's electric power authority is now the center of potential the next battle of the bondholder. kate kelly has the story. >> thanks so much. the investor battle over argentina may be raging still,

but there's -- the caribbean island and u.s. territory facing some major economic issues at the moment. despite beautiful beaches and caper tax rates that has attracted mainland businesses from the u.s., it faces major issue with his poverty, crime, a huge government deficit and unemployment of about 13.1%, more than double the u.s. at large. as recently as yesterday, the elect power authority was flirting with default as it struggled with some 671 billion in overdie papers. at the same time, some investors who will press.

even unconstitutional. the hedge fund manager -- and promised to invest a billion. it also spent 100 million on -- alongside hedge fund investors. so find of an interesting battle here. i think i said 67 billion with a b, should be million with an m. >> got it. thank you. kate. in the treasury market, and rates hitting the lowest level on the ten year in more than a year. >> jeffrey gundloch is the ceo of doubleline, joins us exclusively. >> how should investor it is be

seei seeing. put it into your own words. yields are being dragged down pretty clearly by the persist isn't decline in yields. i mean, when you take a look at the relative value of treasury bonds versus french bonds. spanish bonds german bonds below 1%, it's totally understandable why treasury bond years have been falling. been positioned very badly. with rate differentials where they are, there's every remembers in the -- not only do they not only yield more, but the dollar is likely to continue

to be relatively strong given the geopolitical concerns, an given the recessary type of economic that's a consequence so long-term treasury bonds against all prediction, there's no value, really. if you thought there was no value in the ten-year at three. , people are looking for safety, and obviously the treasury bonds. >> how low do you think we're going? >> i don't think so i've been talking about since my last webcast, which was back several months ago, we talked about a range for the rest of 2014, of 2.2 to 2.8. we got to 2.3 today.

you might remember back in april of 2013, we talked about 235 as being a really being left. when it broke above that late last april, it instantly rocketed higher up to about 2.75%. it will be sbz toss if we can make it down below that breakout left. all of this in the context the jackson hole in a week. you'll heard from janet yellen, drawingi and the gang. that could have an impact. it seems to us it will -- she keeps coming up with different ways to think about the economy to push out the interest rate

increase. so obviously the action of the bond market is not suggesting interest rate increases at all. i can't remember the fed ever really going against the message being send, to start tightening. i think we're looking at fairly be -- >> you know, following up on what you're just saying about the fed. when i'm down on the floor of in the. y se every day, everyone is talking about the fact that -- as to me the bond market needs to have it right and the stock market neither to have it wrong. >> that may not be coming as soon as they think it is.

you know, you have the yield -- that's why the fed really doesn't need to tighten, and so one thing that's probably is helping the stock market stay relatively high is -- likely to be with us in our view. and bonds continue to -- this.

>> that could happen. that's been happening all year. you've had have i strong long-term treasury bond returns. you still have. it's difficult, and dales -- and leads people to go to -- to still stay with their stock position. bond markets i think at this juncture is supportive. >> i can't thank you enough to coming in. it's -- either stocks or bonds. >> thanks. >> hi, yulia. >> sue, hollywood studios, to

see their films, just before they hit theaters. a look at piracy's impact coming up after the break. virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side.

welcome back to "power lunch." the stock plummeting, brought by a subsidiary against several companies, including google. it had previously won a jury verdict for two patents.

it's evaluating the options. the stock currently down. 69%. back to. you lionsgate "the expendables 3" opens today and already very popular, and that is a property. julia? >> sue "the expendables 3" has been legally downloaded 5 million times. >> the vast majority of that piracy was overseas. a judge granted a brought unjinx. sources say the number of downloads has decreased every day this week. >> it's hard to know for sure.

it's happen before. >> reduces box office on average on 19%, which could mean tens of millions in losses. . but based on ticket sales, the film is on track to open in-l e in-line. lion disgate' exposure is limited. both open very big. they could have been bigger. we'll have to see. see that guy? that is a real and very serious -- there's that guy.

it was all caught on tape. we'll show you how it ended up. oh, my. plus cnbc's million dollar homes are back. this time bigger and better than ever. you can join in the fun. place your vote for the winning home. go to cnbc.com/vote right now. and get ready to start voting. rapid prototype a lot of ideas.o being able to pay as we go was crucial for a start up. having to fork out a lot of money up front was risky. you can launch a feature really quick, and if the feature doesn't work, we haven't lost anything and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month. ideas can be tried and tried again on the ibm cloud. the ibm cloud is the cloud for business.

ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief.

machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today. so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

the dow off its lows after reports that ukraine attacked russian military vehicles entering the country the right now the blue chips are down about 88%, leading the way lower today, visa followed by ge, boeing, amex, and at&t. they've all also come off their lows, too. bertha, thank you. cnbc's extremely popular competition is back with a twist. this time around we're blowing the roof right off the $1 million price range. we're going to show you the most expensive houses we could get into. prepare yourself. the mega mansions are battling to see which one is the best bang for your buck, and you determine who the winner will be. in this round it's the cliff chateau going up against last time's winner.

the pious pad. and at to the fun, we're keeping the location of each home a seek credit. nearly 13,000 square feet of living space is adorned in special touches. italian marble floors, a spacious gourmet kitchen feeds -- plus a wine cellar, movie theater, his and her offices, and a ski hut just steps away from one of the biggest skiing destinations in the country. hall lieua. this tudor estate was built as a convent.

but converted into a residence a quarter of a century ago. walk through the hand-crafted front doors into 15,000 square feet of heaven. the spacious three-story megamansions hosts five bedrooms and seven full baths, and experience a piece of eden it is luxury poolhouse or laze around the inground pool or tennis or hot tub. $3,995,000. voting is under way. it's up to you to select the winner. the cliff chateau or the pious pad, which is your best bang for the buck? sdplee let's talk first about the location, because that in your business is very key. where are these homes located? >> the sky-high beautiful chateau over the cliff is in big sky, montana.

great ski area, lots of outdoorsy stuff to do there, really fun, fun area. the only issue with that house is we're talking about under three acres, and in montana, houses have tons of acreage. >> i guess that's all relative, really, when you think about it. to me living in this part of the word 3 acres is a lot. >> and we're talking $20 million for under 3 acres. 20 million is 50 times the average sales price in the area. 5-0. so you could have 5-0 other houses or this one. >> what about the square footage? 13,000. >> that's big. >> is that good for the area? >> it's good for the area. good also in terms of the size of the lots. 13,000 fits well on 3 acres, so it's really nice. >> they didn't build to the edge of the property. >> but still a lot of money, you know, i don't know. we were asking the broker, who

do you think buys this? she says, i don't know, hoping one of the neighbors looking to have a neighbor as a friend next door. >> what about the pious pad? >> that's a magnificent home. >> that stole my heart. >> it's just magnificent. also just over 3 acres, but 3,995, a very different price point. >> where is it? >> it's in columbus, ohio. >> okay. >> we -- on both of these houses there's almost 24 months of inventory on the market in both of these areas. so, again, that doesn't bode so well for a quick sale. >> no, it doesn't, but there's history to this house. >> it was a convent, it was a magnificent house, 17,000 square feet. wow, it's so beautiful. 17,000 square feet for $3 million. i can't even imagine what that would cost here in new york. >> >> which one would you pick?

which is the better value? >> yos how you can possibly go wrong in columbus, house house. it's a central location, the house is pristine. there's great employer. the unemployment rate is very low there. its think it's more of a year-round house. the other one is vacation-y. >> you can't always get a convent. there you go. >> you see? you've got it. >> let's lot in the vote. our viewers have spoken. the house that wins is instead the pious pad. a bit later, she'll crown a winner, i know you always have magnificent homes, but i think that is just fantastic. >> thank you, dolly. >> ty, over to you. >> a lot of happy buckeyes. >> monster beverages.

>> it is also announcing $10 million in new that stock has been hammered lately. a booking volumes appear to have increased. in its most at 1306. palladium higher. rick santelli tracking the -- you probably -- >> yeah, well, i did hear, it's

hard to argue its success. one thing i found interesting is you mentioned you would never envision the, helps that condition. but i would during as being a motivation for higher rates as well. if you look at a five-year. we've got half of that back. same phenomenon. down to about 230. if you look at the big chart. it hasn't been since june. we'll be back there for a while. here is something that doesn't add up. nene, it's still under a bit of

pressure. that in the backyard of the european area, we wouldn't see more fx volatility regarding the headlines t see, back to you. >> let's talk more about that, because stocks have been lower. on art cashin is director. >> art, you know, i read your notes that you send me every day, thank you. you think it's going to come down to whether or not there were actual casualties as to how the market handicaps this? >> yeah, the traders are having a bit of a problem. the reason we are off the lows is that there's no clear statement coming out of russia. almost all the conversations have come out of the ukraine, and we're seeing some gnomelies that rick is referring to. gold you would have thought would have spiked.

instead, it's not doing very much of anything. he's -- he's basically that's what traders have been looking for. >> no second shoe has fallen, and that's why we're at the lows here. the volume has been very light. >> you can almost feel the

nervousment. karkts or it's escalating. now, that being set. unless it really, really escalates. >> take care. clashes with raising question about the mitt tarization about the american police departments. we'll look at the -- and where all this equipment is coming from. and you can join the conversation. should military equipment be

repurr for police use in the u.s.? a controversial subject. cnbc.com/vote. "power lunch" is back in two minutes. in today's market, 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. call or click to open your fidelity account today. your studied day and night for her driver's test. secretly inside, you hoped she wouldn't pass. the thought of your baby girl driving around all by herself was... you just weren't ready. but she did pass.

'cause she's your baby girl. and now you're proud. a bundle of nerves proud. but proud. get a discount when you add a newly-licensed teen to your liberty mutual insurance policy. call to learn about our whole range of life event discounts. newlywed discount. new college graduate and retiree discounts. you could even get a discount when you add a car. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

welcome back. the s&p 500 off its lows as well, currently trading down about seven points or so among the big loser. gamestop, nordstrom among the biggest gainers, monster beverage and applied materials on earnings. >> bertha, thank you very much. officials in missouri have released 911 calls, surveillance video and the name of the officer involved in the police shooting death of unarmed teenager michael brown a week ago. tomorrow he is identify filled as six-year police officers darren wilson. officials say police were called to the scene after the report of a strong-arm robbery, this is what is seen in the surveillance video. moments after this, officer wilson encountered brown and a friend matching a description of the robbers, a struggle ensued, and shots were fired. a shooting sparked several days

of looting and clashes between protester and riot-clad police. this always comes as members of congress are calling into question a controversial program called 1033. under which the department of defense transfers billions of dollars worth of surplus war zone equipment to state and local law enforcement agencies nationwide, including ferguson, missouri. to look at the program by the number. since its inception it has transferred more than 5.1 billion worth of property to police department. roughly 500 million worth of property was transferred to law enforcement agencies. some of the equipment includes 432 mine-resistant ambush-protected armor vehicles, 533 many and helicopter aircraft, nearly 95,000 machine guns and more than 180,000 ammunition magazines.

we want to know what you think -- should military equipment be repurr purposed. >> joining us on walter olson, a senior fellow at the cato institute, and richard licken is a retired lieutenant with the l.a. sheriff's department. walter, let me start with you. cato is one of the foremost sort of centers of libertarian thought in this country, at least that was its origin. a lot of people have concerns about the militarization of police forces, on the ground that it foments a big state, big brother aspect. that's not your concern, is it? >> it's part of my concern. the equipment is out there, it will tend to be used, and but

there's also the cost, and we should talk about the cost, because it's important. >> mentioned it was billions, and it's a typical federal program in so many ways. it goes to buy things that the local police forces would never have made it through a budget process. it has backing on capitol hill, because members of congress want to cut the ribbons, mayors like it yet it's expensive to maintain. once it's there, police can become more lethal and more feared by the community. >> richard, your reaction to that, and let me pose a slightly different question. as you look at the dough plimt of poor amilitary uniforming, body armor, machine guns, night vision things, does it have the

potential to escalate by virtue of the way -- escalate situations by virtue of the way it did intimidate? >> i've got three decades of experience, and i've personally used much of the equipment when i worked narcotics, other places. ply teams that i have deployed actually benefited greatly from having much of the equipment you talked about. keep in mind when you're talking about military equipment being repurpose, it's not just weapons and vehicles, it's tents, mobile command posts, food preparation, copy machines, communication equipment. when you deploy to a large wildfire, and all this equipment is being used, and sure, why not have police department gets it at a fantastic price if not free. now, to your question.

>> i'm sorry. i didn't mean to interrupt. >> sure, thanks. mr. olson makes a great point, however, all this equipment should be, no matter who it's delivered to, needs to be personnel needs to be trained, there should be policies and procedures of when to use the equipment, heavily supervised so that equipment is not misused, but i can tell you from a guy who's actually been at these type of situations, much of the equipment that you described is needed. >> does it -- to address, and i think i know your answer here, mr. richard, to address mr. olson's point. if the equipment is there, it is likely to be used is there a set of circumstances by virtue of the very 2345i67 of the equipment, police officers might become more belligerent than they otherwise might be.

of course there is times that happens, which is why you need strong oversight, the night vision, of course it should be used. the vehicles transporting teams, instead of six cars transporting the team, one vehicle where they can seek safe refuge and use it for rescue purposes as well. in ferguson, there were people fire bombing cops, throwing mall to have coke tails. >> and the police showed tremendous restraint not using deadly force while being fire-bombed. the vehicles there would offer protection, so yes, there is a need. >> let me turn back with a concluding question, if i might. some of trps of use of post-9/11, i would think that most americans would favor having local police forces prepared to fight terror.

that's number one. question number two is, some of this materiel, would you just scrap it? >> let me answer the first question. yes, there are some terrorist targets, and any sensible policy -- this is a federal program. it spreads the money around. most of those armored vehicles go to smaller communities. why does ohio state university need a armored vehicle? i don't believe that the police in ferguson were a model in restraint f the laser pointers on of chest of demonstrators, that was unnecessary, that was intimidating. and i think without the camouflage, even though they switched back boo blue uniforms, and things like that make a difference in the calming down of a community. >> what would you do with the

surplus military materiel. what should we doing before this program began? maybe we were selling it to allies or using it for training. i wouldic look to find out what we were doing. >> thank you for the thoughtful discussion. and we appreciate your voting. viewers have said, we asked the questi question. a nice pleasant swim in the water, but he got more than he expected. see how it ended in just a second.

say the strong third-quarter earnings have already been priced in. the stock currently trading down. back to you. >> thanks, bertha. commodities have been getting crunched as of late. withering. and you think this has some desire consequences. when you look at xhodie prices, oil today's action, you know, notwithstanding, down to 96 bucks.

so, you know this stuff. >> so gives the fed a lot of leeway. the bond mark is doing it for them. breaking below 1%. >>. does it mean a -- >> it will go through a triple dip. china is probably not nearly as strong as people would suggest. we're effectively the most table and -- that reduces headline inflation. >> it's going to be very interesting. i know you'll be writing about it. >> yes, thank you. >> tyler over to you.

almost run down and eaten alive. who's faster, the croc or the guy? >> bone-chilling -- closing fast, fortunately thinking -- tossed an object the croc's way, giving the swimmer enough time to swim, and then dash to safety. somewhere, somewhere in the pacific, almost tonight down the internet after chomping down on part of google's under -- look at that. thought it was a piece of lings google plans to reinforce all 10,000 miles of the deep-sea capabilities with kevlar. are attracted or they just want to log in. they like to bite anything in side. blame it on the jaws.

these are the wings taking mercedes prices to all-new highs. we're going to take it out for a high-speed test drive. yes, i will scream, coming up at the break.

virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side.

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. robert frank is there in pebble beach. >> this is actually the first goldwing that mercedes ever produced. we god to take it out for a test drive. whoa, look at that. just by moving they hinges, they started a revolution, didn't they if. >> they really did. in a process they -- is this car as fun to drive? >> everybody bit as much fun to drive.

>> this is really tight. this is a -- every bit a sports car. >> what did you think -- pull ultimate -- and like nothing anyone had ever seen. these cars have always been -- >> yeah. >> and, you know, tyler, this car actually sold for $11,000 in 1954, now will sell for up to 4.5 million. and around the world everyone wants these. >> absolutely beautiful. that does it for us. >> and thank you both, very

much. we'll provide you the latest on ukraine. and we'll have -- bill gross is here. we'll ask about the treasury and stock markets, and money moves for you. we'll have plenty of actionable advice. "street signs" will begin with mandy drury and myself after this short break. don't go anywhere. a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com

with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings

of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

welcome to the "street signs." live from the floor of the new york city, stocks still selling off. have opened attract on russian armored vehicles. the open stocks are up as high as 16,775. right now we are much lower than that. in fact down 107 points. throughout the hour we will be hitting every single angle of this market. >> indeed we will. let me run you through some of the reactions. it gave gold an initial -- downed ever so slightly.