attorney general schneiderman. big hurdle out of the way. buy the stock? >> yeah, buy it yesterday. we added to it. i like the synchrony financial, ge credit card. >> have a great rest of the day. that does it for us. our good friends at "power lunch" pick up the ball right now. "halftime" is over. the second half of your trading day begins now. >> scott, thank you very much. the fed and the markets. there's more rate high talks. several fed presidents weighing in on cnbc today. and then there is the fed and housing. what a rising interest rate environment might well mean for mortgage rates and the housing market. which has benefitted so much from those very low mortgage rates. sue herera is on vacation and susan lee from cnbc asia joins us for the hour. susan? >> hey, tyler, despite all the talk of the fed making a move, stocks are up anyway. the s&p hitting a new all-time intraday high a few hours ago. dow posting solid gains and been an up and up day so far.

dominic chu is standing by at the new york stock exchange. what's the word on the floor? >> the word on the floor, first of all, the s&p 500 closed at a record high just about one out of every five trading days so far this year. cnbc data crunchers look at the s&p and said, hey, 17% of the times or 27 times this year, we've closed at a record high for the s&p 500. so not too shabby. the odds are good. now, if you take a look at the overall picture for where the markets are headed, we've seen a nice move higher, despite fed concerns out there. look at the sectors leading the way, financials and technology. the biggest sectors in the s&p 500, that gives the bulls some bullishness or bullish feel about the whole thing. take a look at some of the stocks that are moving. big names like hormel on earnings. look at other ones, because ebay and hp doing well on their particular moves and staples on the downside on their earnings results. overall, a nice move higher

despite the fact we have a lingering fed and comments coming out tomorrow. back over to you. >> thank you for that. you mentioned the fed heads are gathering in jackson hole, wyoming. steve liesman is corralling the big names out west, get their thoughts on when the fed will begin to act. >> the economy is already showing signs, so as we look ahead, does the economy look like it's able to sustain this? i think it signals a very important decision point for the committee. to say, we will have to move at some point. i don't want us to be behind the curve and beginning to normalize interest rates. >> i think the thinking around summer of 2015 for the first rate hike is a reasonable guess given where we think the economy is going and, you know, how much progress we're making toward our goals. but, again, it really depends on the data if, if the data gets stronger, it could be earlier. if the data disappoint, it could be a little later. >> we're getting nine starts worth of investment device.

george young, joining us. brian, co-manager of the four star rated chase mid-cap growth fund is with us as well. george, let's start with you. you're saying when interest rates go up, that's when the bond bubble pops. >> that makes me very nervous. it's not much of a move before interest rates move upward. that means something like a 2.4% yield moves to a 2.75%. you lose 3% of your money just like that. a lot of people haven't experienced that. that's something that makes me nervous. there's a good saying, it's like picking up a dime in front of a steam roller. that's a scary thought. >> brian, what do you think, interest rates go up, not necessarily bad for stocks. >> it's not bad for stocks, susan. look at the year leading up to the interest rate hike, the fed is hiking rates because the economy is improving. what we're optimistic about is, in that kind of environment, people start focusing a little more on the individual stocks and a little less on the macro. and a stock picker than really add value in that kind of

environment. >> george, i was looking through your stock picks, when interest rates go up, doesn't that crimp consumer demand? some of your stock picks are focused on consumers. >> one we like a lot is sutherbys. i don't disagree with brian. they have a duopoly with christie's. you might think of it as a rich man's stock. other hand, there are always people who need to sell or buy because of death, debt, divorce, or discretion. people have their picassos. that may be a lo of outside of the realm for a lot of viewers today. but this is a company that can make money all sorts of different operating environments. we love the stock. it's cheap. they have a lot of interests from activists nowadays and going to froth things up a bit. we love the opportunity. >> brian, why do you think mid-caps are the place to be? >> mid-cap s historically, a gd place for exposure, different than large caps. not as much risk you take on if you get into the small cap

space. >> george, let's get back to the markets. have you seen the selling done for year? >> i thing therek there's a lot upside. as one of our student investors said, it's a little like fishing, little luck, little skill, maybe throw in a little beer sometimes. there's a little bit of luck. we think we've had good skill. >> george b, brian, thanks for your time today. let's get a market flash. airlines are moving lower today as investors take profits from the recent run-up, a number of them yesterday, jetblue had gotten upgraded. united continental, american, delta, all of them are losing ground today, though. and one new tidbit if you're flying, seems like united is trying to win back business travelers who defected to other carriers following its rocky merger with continental and think the stomach is the way to go. it's upgrading its first class food options and replacing snacks with full meals on some of its shortest flights.

the move comes as american e limb neas hot meals on most flights that are less than 1,000 miles. take a look. they're all a little bit lower, but united upgrading food, tyler. you know the way to a person's heart is through their stomach. >> all right. thank you very much, bertha. you know, airline food -- existing home sales numbers for july up 2.4%. their highest levels in ten months. dia diana on that and the impact of possibly higher interest rates and what that could mean to housing. she comes to us live from washington. di? >> reporter: well, ty, you're right, look, sales of existi ii homes in july beat expectations slightly, probably due to smaller price gains and more supply on the market. let's look at the data a little closer. as you said, existing home sales rose 2.4% from june but down 4.3% from a year ago. realtors saying last july was

the cyclical peak when investors ruled the market. their share is down to 16%. all cash sales, though, still really high at nearly 1/3 of this market. the median home price in july still up nearly 5% year over year. prices had been jumping in the double digits last year, sidelining mortgage-depend buyers as rents continued to rise. now a new report from zillow says 94 out of the top 100 house markets are affordable today, but renting is more expensive in 88 of those markets. that could change if mortgage rates rise. that's what we're all talking about, right? rates hit their lowest level of the year last week at 4.12% on the 30 year fixed according to freddie mac. it was 4.58% just one year ago. we're already coming off that low. as investors are moving back into the stock market. they moved out last friday when we had all the trouble in ukraine. the expectation is those rates will rise. question, of course, is how much it will, of course, affect housing? tyler? >> diane that, thanks very much.

ceo of coldwell banker. nice to have you with us here. >> thank you so much. >> let's talk about a couple things. we're going to get to interest rates first. diana said 1/3 of all sales are all cash. is that what you see? >> that is correct. we started to see cash sales tick down slightly, it's highly irregular considering the business mix is changing. a lot of that was simply due over the last couple years by everywhevirtue of investor acti. in that place, we're moving back to a more normal traditional market. traditional buyers are coming into the mix. those with cash are leveraging it. >> you know, interest rates are obviously a key factor in the purchase decision. how much is -- people -- people buy a house, they buy the monthly payment, i believe. how much can i afford? okay? if interest rates go up, they're down from where they were a year ago, over the next few -- how's that going to affect your sales

and prices? >> well, of course, there's always a correlation between overall activity and interest rates. the only people that would be really concerned about where interest rates are headed in the near term would be the individuals who didn't have the historical perspective on interest rates. if we see interest rates tick up, which they probably will, that's a sign of a strengthening economy. the fact is it's still going to be an incredible environment for buyers who are ready to get into the market. >> what's more important in the housing market, interest rates or job gains and income gains? >> certainly on the long run, as we move back toward a more traditional market, we know that as the investors leave, traditional buyers coming in, and that's all about the fundamentals of real estate which has always been lifestyle choices but fueled heavily by overall job growth, wage growth, confidence in where the national economy is going. >> if you don't have a solid job market in your town, you're not going have a solid real estate market, right? >> i think this is a sign of the

continuing recovery. as we move from a national view to the local view. in those markets where there's strengthening, job opportunities, and economy is moving, those are the areas where we're seeing the greatest growth in market activity. >> i want to talk a little l more about interest rates. you say, okay, two back to the person who goes -- the only person who's affected by it is the person who doesn't understand that rates are h historically low. if the fed raises interest points by a half point by this time next year, we go from zero to .5 of 1% and interest rates on mortgages go from 4.1% to 4.75%, let's say. i hear you. you weren't here when rates were 9%. you weren't here when rates were 6%. but that buyer remembers when rates were 4% and that buyer knows that their monthly payment on a house went from $1,100, potentially, to $1,400 potentially. how do you answer that? that's got to slow sales and price gains. >> certainly there's a

psychological aspect that plays into this, but in the long run, people are going to start to have a more holistic view of what the market is, and as interest rates start to tick up, the other thing we're seeing is a compensating balance is the fact that the price increases are decelerating which they're moving back to kind of from an unrealistic kind of pace that we -- >> double digit -- >> -- have seen over the last couple years down to a pace which one could be considered normal and probably in the long term tied again to inflation. >> if rates start to move up, do you think there will be a surge of buyers that come in and say, man, i want to move now because i don't want to wait and pay 4.75% a year from now. >> traditionally that's the case as you know. >> you expect it? >> of course. >> thanks very much zblau. hi, tyler, ebay is coming off of its highs. reuters reported that ebay says its stance on the paypal spinoff has not changed. earlier the tech website, the information, citing sources reported the company had been telling potential paypal ceo

candidates a spinoff could come as soon as next year. ebay shares currently up about 4.25%. susan? let's check in on other headlines as well. bank of america is up after reaching a $16.65 billion deal with regulators to settle charges that it misled investors into buying bad mortgage-backed securities. a retailer who's doing well, children's place posting better than expected results and third quarter and full-year results are in line with expectations. speaking of retailers, amazon, u.p.s., sears and more, who will win the battle between clicks and bricks? we'll be talking with retail serial startup mogul kevin ryan, who sold one, invested in one, sold to yahoo! for half a billion, and another has wall street sal investigate salivating for an ipo. do you think it's safe for drones to deliver packages in the u.s.?

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welcome back to "power lunch." the dow back above 17,000 for the first time since july 29th. as it closed in on record highs, the blue chips are currently trading up here. about 75 points. take a look at the leaders. jpmorgan chase, j&j, intel at a new 52-week high, walmart and

coke coca cola. double click, sold to google to $3 billion and two startups, tech company mongo db. also an early investor in hot jobs which was sold to yahoo! for half a billion dollars and found business insider, shop wiki. kevin, welcome to "power lunch." great resume there. let's talk about the headlines this morning. u.p.s. reporting a credit card data breach. simon hawes reporting that u.p.s. can't get the addresses of some of these people whose credit cards have been stolen from. so what do you make of this news flow? >> so, i think there's always going to be threats on the security side. it's actually not as severe as people want to make it out to be. there's been shop lifting in stores for 100 years. it's the cost of doing business. same thing here. every retailer is very concerned about it, mostly from a brand point of view. reality is consumers are

generally protected on this and so we need to -- we're all worried about it as retailers. i think it will be managed, a constant battle for the next 50 years of cat and mouse between security internally and hackers outside. >> yeah, what about etailers versus bricks and mortars? we heard from sears reporting a ninth straight quarterly loss. have you heard the death knell? >> at the same time, you're seeing other retailers doing well. different types. single brands. tory burch, michael coors hitting record highs. what we are seeing is that, you know, the share of market is going to go online. that's a continual trend for the next 25 years we're going to see and it's only just begun. >> what about ewail tailers trying to get sb bricks and mortars? what do you think of the trend we're seeing? >> i don't think it's an

enormous trend. if you looked at it, you'd see maybe five examples. most from marketing. if you start one new store, you get a lot of press for it and allows people to visualize your brand. could be a loss leader. i don't think you're going to see most of the brands going with an enormous foot print over time. their businesses are more efficient online. they're going to stick with that. you'll see people trying and sampling it. it will be small. >> one trend people want to reverse is about this question of diversity in silicon valley. google and apple, most of their workers are primarily male and caucasian. what do you think of the diversity question? >> the diversity question is a huge challenge in our country. when you look at the tech companies, that's the end of the line. the core problem is that probably 85% of computer science degrees are going to men. if you don't have a computer science degree, it's hard to work as a programmer in a very technical company. the senior management team is about 75% women with a woman as ceo. we obviously don't discriminate

against women there. having said that, 75%, 80% of our programmers are male. so that's just reflects the industry out there. i have four companies, you know, zola and guilt have female ceos. and very successful. ecommerce in general has a lot of women. but the core issue that is not easy is how do we get more women to major in computer science? >> kevin, you've been called a disrupter. one company that's disrupting is amazon saying they could test drones in india. i want to talk to the viewe ere and want them to weigh in. do you think it's safe for drones to deliver packages in the united states? go to our website, tell us what you think, cnbc.com/vote. kevin, what do you think of this move from amazon? >> so i don't think it's a technical problem. i think it's fun to try. i don't think it scales. so, you know, i live in manhattan. so there's probably, you know, a 5,000 people in my building. if we're getting 2,000 drones a day, i don't think that's going to work. in suburbia, selectively, if

it's a high value added product and very light, could it be used in some cases? yes. i don't think people want to see 500 drones over their building right now. and the reality is u.p.s. works pretty well. i think what's going to be a bigger trend, which we're seeing is same-delay delivery. large companies being able to deliver things same day. that's really about as good as a drone. but more efficient and cheaper over time. >> let's lock in the vote. is it safer for drones to deliver packages right here in the united states? and we're looking at the poll results. 62% say never. 23% saying totally. 15% only in rural areas. i want to thank you for sharing your time with us. thanks for having me. tyler, over to you. >> susan, thank you very much. ford's struggling brand going hollywood, matthew mcconaughey to be its new pitchman. mcconaughey will debut in an ad next month introducing lincoln's

sports utility vehicle. mcconaughey will act as a storyteller in a series of tv and digital campaigns. you may recall mcconaughey starred in the movie can the lincoln lawyer" whose character was a defense lawyer who drove around town in a lincoln town car. all the way, mcconaughey. and they may not be as sexy and shiny as new cars, sexy, but used vehicles have become far more profitable for dealers and we want to hear from you, is it a better deal to buy or lease a new car or a used car? go to cnbc.com/vote. cnbc's phil lebeau is at a used car dealership in mattison, that's m-a-t-t-i-s-o-n. >> this is a place where they buy and sell used cars that will eventually end up in dealerships. look at this bad boy right here. looking at a late model vw jet tax that's going to go down

there. let's see what the opening bid is. i believe the opening bid, this is an actual bid going on now, tyler. they're going to open that thing, $1,700. that's not what it's going to sell for in a dealership. what you're seeing here, they're going to process 3,500 vehicles will buy and sell and eventually take to their dealerships or ship from their dealerships. what you're eventually seeing is the marketplace showing greater demand for used vehicles. in fact, the demand is so strong, that's the reason we've seen prices moving up over the last six years. in fact, since 2009, really, we've seen a big increase. going up to an average price of just over $12,000. there are 41.5 million used vehicles that will be sold in the u.s. this year. and why's the business so lucrative, so profitable, and so many dealers are here? because the profit margins are far greater. in fact, they were up 13% last year. the profit margin for a used vehicle is about $2,300. almost double what it is for a new vehicle which is $1,200, and

for manheim, they believe this is the best place for dealers to actually see the vehicles that they're selling and whether or not it will be a good deal. >> one of our buyers this morning who said, i asked him, do you buy cars on the internet? he said, i want to be here, i want to smell the tires, kick it, look at it. i can do a better job buying it for less and selling it for more and that's my advantage. >> reporter: there's so much demand for used vehicles. look at this. $5,000, if you were to spend $5,000 on a vehicle ten years ago, look at how much lower the mimage was in terms of what you'd get at a dealership compared for what you'd get for $5,000 today na. that speaks to the demand in the marketplace. look at the shares of publicly traded dealership stocks. keep this in mind, we're seeing more dealership groups opening up dedicated used vehicle lots because demand and the sales are there right now.

and as we wrap up this auction here, what's the last vehicle we have there? a chevy caprice. what was the last price we had there, art? >> $2,000. >> reporter: $2,000, tyler. there are $2,000 and that car could have been yours. >> i think you want to be an auctioneer. i think that's in your future, baby. i think you want to be an auctioneer. >> reporter: there's no way i can talk -- >> phil lebeau, thanks very much. >> reporter: yeah, it's right there. let's lock in the vote. two out of three think a used car is a better deal than a new car. there's the proof in the pudding right there. susan? okay. tyler. remember this? our own reporter surprising aeropostale -- >> did you feel the need to steal $25 million more? >> he did and has been sentenced for it. how harsh was his punishment? we'll tell you next. plus, it's called a massive

pyramid scheme that moved more than $100 million and sucked in thousands of investors. authorities say the man who was on top of it all, a bestselling author, a notorious infomercial pitchman. that story coming up right here on "power lunch." when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. she thought she'd feel better after seeing her doctor. and she might have if not for kari, the identity thief who stole jill's social security number to open credit cards, destroying jill's credit and her dream of retirement. every year, millions of americans just like you

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carrier on to their plan. that means both customers would choose the cheapest plan, and lock in unlimited data for a year under that promotion. it's not sitting very well with t-mobile investors, though. the stock currently down about 1%. tyler? bertha, thank you very much. crime as the saying goes, doesn't pay. and as a former aeropostale merchandising executive found out he's going to have to pay up big-time after defrauding the company attend taking more than $25 million in kickbacks from a vendor. our own andrea day confronted him about a few months ago. >> how are you? >> good. >> you made $20 million -- >> no, no, no. >> legitimately, did you really feel the need to steal $25 million more? >> really, this is crazy. >> how greedy are you? >> the answer is greedy enough that he was sentenced to eight years in prison yesterday. he was also ordered to forfeit more than $25 million and pay

the company $13.7 million in restitution for his crimes. and in today's crime and punishment, a former famed infomercial pitchman is now behind bars. >> a judge called him deceitful to the core. while being investigated for one scam, he was secretly building another. a massive pyramid scheme that moved more than $100 million and sucked in thousands of investors. the promise, he would reveal the valuable secrets of the 1%. >> you could basically create a perpetual money making machine. >> would you like to lose up to ten pounds in the first 24 hours? >> from weight loss, to get rich quick schemes, even cures for cancer, incredible claims that helped kevin trudeaux build an impeer. >> had his only personal butler in the house. everything. >> his fans handing over truck loads of cash even after the

government said he's lied. >> lied to consumers thousands of times and the ftc. >> this for going on tv with wild claims from his diet book. >> he ran the infomercial approximately 32,000 times. essentially none of the things he said about the weight loss program on the infomercial were true. >> while the fcc's case was heating up in court, he was deep into another scheme called g.i.n. >> information information network is a pyramid scheme that he designed and operated largely for his benefit. >> he claimed he founded g.i.n. with a group of international powerhouses. and this 30-member council held the secrets to becoming rich. >> these people are billionaires, multibillionaires, control major industries around the world. >> and tens of thousands of followers were convinced. even though trudeau refused to identify council members. >> the way he talked about the council was huge people in power

and run the world right now. i even thought our current president, barack obama, might even be in the g.i.n. council. >> abe husein invested in fwvmg. >> telling people we're going to have g.i.n. yachts and clubhouses around the world is. >> he shelled out for committees like this one, under cover, where the so-called secrets of the 1% were handed out. >> shake hands, how to -- >> it is one of the best money-making opportunities of all time. >> in just a few years, investigators say g.i.n. generated more than a stunning $100 million in revenue and grew to some 35,000 members. but according to prosecutors, only trudeau and a few others were getting rich. most g.i.n. members never saw a dime. why would he come up with a bigger scam?

was kevin trudeau using the g.i.n. network to conceal millions of dollars? >> yes. >> in fact, cohen says g.i.n. was creating to make trudeau's assets difficult to trace. >> his response was he was never going to pay it. nevertheless, he found approximately $7 million to both fight the ftc's claim and also to make his assets more difficult to locate. >> when trudeau didn't pay the judgment against him from the ftc, he was sentencined to ten years in jail for criminal contempt and unbelievably from behind bars he's reached out to his followers asking for money to appeal his case and some are actually still donating. back to you. markets are looking like we're looking at a higher session here on wall street. we have a selloff taking place on gold pricing. closing right now and selloff of 1.5%. fixed income space, let's get to the bond markets. rick santelli tracking the action at the cme. rick? >> reporter: thank you, sue.

this is an important day watching all markets. the fed does have quite a bit of power. debate as to how they're using it. look at a chart of existing home sales. five-year chart. good day today. up 2.4%. open it up to a 20-year chart, maybe a better perspective. look at a two-day chart of tens. yields drifting lower. hey, the stock market higher. yes, it has to be jackson hole. sense 1st, dollar index, it's cooking in grease. why? euro is also at the lowest level since september. tyler, back to you. >> rick, thank you very much. sending students into danger zones. lycike ramallah. that's one way indiana university's kelly school of business stands apart from many other mba programs. what is else on the curriculum? we're going to ask kelly professor, phillip powell, next. plus -- >> today's powerhouse is the

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s&p 500 setting a new record high. the dow back above 17,000. dominic chu at the new york stock exchange. >> yeah, so susan, what we've got right now is a situation where we are at, again, record highs, intraday for the s&p 500. session highs right now for both the dow and s&p. if you look at where the action is, you got to look at the financials. it's been a while since we've really talked about them and it's not just because the "b" of "a" settlement, though that has some impact on the overall markets. look at the big names. hudson city bank corp, sun trust, regents financial, bigger names are catching a bid in today's trade. remember with the financials we're talking about the seconds biggest seconder in the entire s&p 500. traders are starting to pay a little more attention because they're seeing big tech names and financial names. tyler, leading the way higher. keep an eye on those as we head toward the jackson hole comments tomorrow. >> dom, thank you very much. indiana university kelly school of business stands away

from mba programs thanks to a powerful alumni network and truly maverick curriculum including a business of medicine degree for doctors specifically grappling with obamacare and there's also a third world immersive program where students are thrust into danger zones to help small businesses get off the ground. let's go back to business school with kelly professor phillip powell. professor powell, welcome, good to have you with us. >> hi, tyler. >> you're the faculty chairperson for kelly direct which is the school's online program ranked number one by u.s. news. we celebrate disrupters in business. i know in business schools. but i've got two questions. >> sure. >> is online education the future of higher education in america? and specifically business school education? that's number one. and number two, do your fellow professors at indiana celebrate the disruption that online education will bring the way we typically celebrate disrupters? >> well, tyler, we've been teaching online for 15 years.

we were early in this marketplace, our faculty quickly embraced it because we live and die by innovation. we have to practice what we teach. and we teach our students to be disruptive in order to beat their competitors. so, if we're not going thdoing don't embrace that, we're not being true to our mission. absolutely, that culture of disruption defines who we are at the kelley school in bloomington. >> but there must be people on the faculty, not just at the kelley school, but more broadly in bloomington who say, we have a lot of build rings we have to fill, dorms, all of this infrastructure we have to take advantage of, and, you know, online doesn't do that. >> who we are, tyler, we're not our buildings, we are what we teach. we're the knowledge we deliver to our students. we have to rise to the occasion and set the example of how you compete in the marketplace. so our faculty celebrate sort of liberation of new ways to teach that technology delivers. >> so there's no fighting the

old. we're embracing the new. >> i like what i'm hearing here, professor. let's talk a little bit about a couple of your innovative programs. one is one under which some of your folks get to go and spend a couple of weeks in stressful business zones. whether it's botswana, ramallah, or any number of countries in latin america. where you say part of your goal is to make them uncomfortable. why is that a good teaching tool? >> you know, if we want our students to have extraordinary solutions we have to provide an out of ordinary experience. when you take students out of their comfort zone, they have to question their assumptions, and they have to think on their feet and apply what they have learned. everything they've learned in the mba program fuses and they have to deliver a solution for a small business on the ground. and when those stakes are high, failure is not an option. and our students rise to the occasion. they come back to their job, they come back to the campus,

they're better managers than they were before. truly transformative experience for them. >> i can well imagine that. i'd love to talk more about it, but i done want to neglect another thing that you all are really pioneering. one of the few in the country, mba program for physicians with a particular emphasis on how to deal with the brave new world under the affordable care act. what is included in the curriculum, what's on the syllabus? >> our curriculum, we purposely do not use health care examples. our students want to learn examples from other industries because they feel that the market and the industry is so dysfunctional that they want outside ideas. and we purposely structure the curriculum so that they're in teams, they're working in teams. they're learning to be managers through examples and through cases. so they can go back into the clinic, they can be better doctors in terms of arranging the resources their patients need. >> these are practicing

physicians who do what? is it partly online and partly in residents? >> we leverage our online expertise. one weekend a month where the students come to campus. they're practicing physicians. we purposely structure things so they go back to the clinic on monday or tuesday and apply what they've learned. not only are they healing people, but they're managers. they have employees, they have budgets, they have contracts to sign. and so we encourage them that when they head back is to use the clinic almost as the classroom. to apply what they're learning. we see a very rapid transformation in their ability to deliver health care in an efficient and even more patient-friendly way. >> professor powell, thank you very much for being with us today. you taught us a lot. >> thank you, sir. >> we appreciate it. phillip powell of indiana university's kelley school of business. yahoo! finance question of the day, bank of america paying $17 billion to settle allegations it sold risky mortgage-backed securities to investors before the financial

crisis. is $17 billion excessive? 21% of you say yep, too much. 20% say it's perfect, the government bailed out the banks, after all, and 52% say, no, it should be even more. susan? >> thanks, tyler. he was a top regulator for years criticized high-speed trading firms. now he's working for them. you'll be surprised who he is. plus -- >> the city featured in today's powerhouse is home to the largest indoor theme park. medtronir is headquartered here. its may unemployment rate came in at a low 4%. can you name that city? an unlimited mileage warranty on a certified pre-owned mercedes-benz? what does it mean to drive as far as you want... for up to three years... and be covered? it means your odometer... is there to record... the memories. during the mercedes-benz certified pre-owned sales event now through september 2nd, you'll get complimentary

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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 back to "power lunch." famous for slamming high speed trading firms. now he's going to work for him. eamon javers posted a fwragreat story on cnbc.com and is live for us. >> he was famous for calling

high frequency traders cheetahs and saying they were just like the fast and potentially dangerous animals of the african plains. well, now bart chilton has left the cftc, gone to the lobbying firm here in washington known as dla piper and the modern markets initiative, a trade association just announced today bart chilton will be working with them as they help unveil a serious of proposals throughout this year on what should be done in terms of regulation and hft. so bart chillton working alongside the lobbying group for high frequency trading. take a listen to him talking on "squawk box" last year about what he thinks about high frequency trading. >> i've been sounding this alarm on your show and a lot of places for three years now, and i want to keep them in the narcotmarke. they're important to the market. i'm not so sure they're not just a new version of the floor trader and new middleman. and if they're only holding liquidity for two or three

seconds and they're really not -- we're not transferring any risk, i'm not so sure that that's as valuable to market as it once was. >> i talked to bart chilton earlier today. what he says about all this is he's not changing his position on how frequency trading. he says he still believes there needs to be regulation for high frequency traders. he still believes there needs to be kill switches for some of these computerized algorithms. what he said is he's going to help the modern market nir initiatives unveil its series of proposals and not going to change his stripes so to speak. he did say he's probably not going to call them cheetahs as much. >> thank you very much, eamon javers. powerhouse time. home to target. will host the 2018 super bowl. i bet you know what city it is. the beautiful city of minneapolis. with us, matt baker, realtor with coldwell banker burnett. here's a snapshot of minneapolis real estate. one of the most lovely livable cities in the country. median sales price of a home 226

grand. inventory, 12,000 properties on the market. average time on the market, 69 days. we're going to focus on the downtown as well as the nearby lakes region. you know, people love it out there, you know, to live. and take us through this first listing, if you will, 103rd avenue south. taxes, $66,0 $6,000. one bed, two baths. this might be right downtown. >> yes, tyler. thanks for coming back to minneapolis. it's always a pleasure to showcase our city. real proud of what we have going on. this is in a building called the carlisle, a recent development, right on the banks of the mightmy mississippi. it's an art dekko inspired high-rise. this property is a unit with a nice open floor plan, granite countertops, walk-in closet, beautiful balcony. the building, itself, offers so much. you've got beautiful views. you're able to look out over the

downtown skyline. and as you mentioned in your intro, there's lots going on in the city. there's cranes in the air. we've got the viking stadium under construction, but they better her urry because we havee superbull co bowl coming. we're excited about that. >> is that a dome stadium or not? >> this is not a dome stadium. this one is going to have a wall of glass, so we're not going to have the dome, don't vo to worry about that thing. >> it's not an enclosed stadium? >> it is enclosed with a wall of glass which is going to be a significant -- it will be architecturally significant. not an air inflated dome like before. >> they got lucky in new york last year with the super bowl in early february. minneapolis in early february would be something else. the pool at that place you could use for three days a year, right? i'm just kidding. second listing, $695,000, taxes of $10,600. tell us about this one.

>> this is a building which was constructed in 1981 for early adapters to downtown living. it's a beautiful building. classic brick architecture, new york style. this is 2,700 square feet. >> that's big. >> it's an opportunity to transition from your single family home. tyler, it's a lifestyle. you're right at the base of a beautiful urban park. walk out the door. a very walkable city. we have the nicolette mall, pedestrian friendly boulevard. it's home to restaurants, minnesota orchestra, all sorts of other entertainment industries and about to undergo a $50 million renovation. you have a lifestyle as well as a wonderful place to live. spacious, great open floor plan for entertaining. >> people i know who have moved to minneapolis love it, don't want to leave. they adore it. powerhouse of the week, 4644 west lake harriet parkway. $1 million basically. taxes of $20,000.

makes me ill considering what i pay in jersey. four bedrooms, five paths, 5,000 square feet of living space. look at that. that's a beauty, rod. >> well, that is really symbolic of living in minneapolis in the lakes area. you're right on the banks of lake harriet, named after harriet lovejoy in 1985. don't know the backstory there, but i'm sure there was one. it's rich in detail. lots of old world charm blended with many, many modern amenities. a third floor retreat, wonderful porch, extensive landscaping and views of lake harriet. you walk out your door, walk around the lake, get on a sailboat, enjoy an outdoor concert at the amphitheater. there's a lot of lifestyle amenities. one word of caution, in the interest of full disclosure, if you move to this home, in four months the lake will be frozen solid so you'll need to trade your roller blades for ice skates. >> ice skates. do a little ice fishes.

rod, thank wyou very much. nice to see you again. >> my pleasure. another real powerhouse. steve martin's st. barts home for sale if you'd like it. 20,000 square feet of living space. half an acre, four bedrooms, outdoor shower. you know it's got to have an outdoor shower. that opens to its own terrace. so everybody can watch you. after being on the market since last year, the price was just reduced to $10.6 million. that's not bad from $11.6 million for all that space. now, this is an offer at the far other end you might not be able -- can't refuse the town of ganji on the italian island of sicily. look at that. houses here are going for 1 euro a peace. that's $1.35, $1.40. no joke. here's a few catches. there always are catches. the houses are, politely put, as fixer-uppers and have to ante up

$6,000 as a guarantee to say you will renovate. 15 of the homes are already under contract. that guy comes along with the house there. in the new york burbs these houses would go -- those guys, you get to meet those guys -- hundreds of thousands of dollars. you get the house for a euro, you fix it up, it's yours. don't fix it up, you pay the state $6 6 ,000 euros. >> home in sicily for 1 euro. >> i didn't know your aitalian was that good. food, retail and autos, three big stocks you need to watch. that comes your way next. in india we have 400 million people

who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud. the ibm cloud is the cloud for business.

welcome back. dollar general says it's still committed to acquiring family dollar, releasing a statement saying they don't think there would be any antitrust problems. that was the reason family dollar says it rejected their bid. family dollar in turn reaffirmed its commitment to dollar tree. got that? here's how the scorecard is looking. also moving to the downside. back to you. >> thank you, bertha. hormel food, beating earnings estimates. the challenging for grocery products and specialty food but strong in other segments. ford, a new hybrid to

compete with toyota's bestselling prius. let's see what's coming up next on "street signs." the market is breaking new records all over the place these days. we'll get to the bottom of whether or not the market is thumbing its nose at the fed. also we've been talking about the used car boom. because we are cnbc, we look at the stocks that can piggyback on that. i have accepted the ice bucket challenge from michael erickson. that's going to be on our show. make sure you tune in. join in. do whatever you want. make sure you tune into "street signs" top of the hour, two minutes' time from now. "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

frothere's no reasonn average 17 we can't manufacture in shuthe united states. here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. if it can be done here in san francisco, it can be done anywhere in america.

so over. >> "street signs" begins right now. has the fed fear faded? the market surprising many be being strong. hi, everybody. we're going to ask if stocks can stay this way even if higher rates. plus the one thing that may quietly hurt real estate more than anything else, few are talking about it. where the bank settlement money really goes. yeah. and we finally put mandy on ice with this ice bucket challenge thing sweeping the country. >> certainly is sweeping the country. okay. 27 is today's magic number. do you know what it represents, brian?