power starts right now. halftime is over. "power lunch" starts right now. thank you very much, scott. indeed it does, the s&p hits 2000. is there still value in this market? if so, where is it we have guests lined many to tell you basically whereished put your money. we're calling the series stocking up for september. that's straight ahead. we know that california has a water crisis because of the drought. did you know they're turning off the taps? the water crisis in detroit is hours away from getting a lot worse, as residential and company water is about to be shut off. all of that is straight ahead on

power. tyler is off this week. simon is my coanchor. >> hi, sue. historic day down here on the floor of the new york stock exchange, where shortly after 10:00. we hit 2000 for the first time ever. we basically spend the last three hours trying to retake that, but to be honest with you, it's been a bit of a struggle. the nasdaq -- with seema mody. bob pisani is with me here at the nyse. let's first kick off with dom chu. >> if you look at what's happening, we talk about the leaders and lag guards, since the first time the s&p crossed 91000 mark. they weren't necessarily s&p 500

members back then, but look at the stocks on the leading side of things. it's in beverages, take a look at what we are talking about here. this stock is great. we're talking about a company that coca-cola just invested in. keurig green mountain. up 51,000-plus percent, a big move for this stock. this one here, $87 stock. back in the day, it was not that much. just worth pennies now up 78,000 some percent. this used to be called hansen's natural today, today it's known as monster beverage. that stock up 78,000%. if you look at some of the worst

performing stocks since then, there's a theme. they're all part of this sector. this is one of them. a stock now down 78%, this is a big bang in america. we're talking about citigroup shares. down about 78%. that's aig, that's citigroup. the number one worst performing stock, $55. it's aig. it used to be a $670 stock if you adjust for split. so financials still among the worst-performens stocks since 1998, but two beverage companies ironically are the best performing stocks since then. back over to you. >> okay. i'll pick it up. thank you very much. dom.

dow is in double digits. people keep say why is this happening? i can give you two simple reasons. one is continuing low rates. not just in europe. take a look at our ten-year, right around there, 2.396. right now that's number one factor. number two, lower commodity prices. that's keeping consumers very, very happen happy. finally there's also the theory that no -- of course mario draghi, hinting there will be continued stimulus over there. home builders a bit weak here. there's sort of disappointing spot here today. july new home sales were very disappointing. very simple comment, be careful about making brought

pronouncements on a quiet day in august. i would like to see what happens when we see more volume and more conviction. it's not that there's no -- we're having light volume on a seasonal basis. all i can tell you is there's not a lot for sale out there right now. >> bob. thank you very much. let's check out a chart of the qs over certainly the last three months. seema mody is in times square at the nasdaq suites. >> yeah, you know, simon, the resilience being the topic among traders that i speak to, specifically the nasdaq and nasdaq 100, both trading at the highest levels since september of 2000. internet stocks playing a significant role in not only today's rally, but the rally

over the past nine days. expedia and netflix both trading at 52-week highs. this time the momentum pushing these stocks to the up side. as the market gets more expensive, there was talk we would potential see a slowdown in deal activity, but clearly that's not the case. you're sealing larger pharma. drug in an effort to strengthen the pipelines. today's deal providing a lift to other biotech stocks. in terms of some of the biggest winners on the nasdaq 100, it's not tech. in fact, consumer keurig green mountain coffee on the distribution partnership with kraft and ross stores, it's moving higher on stronger than expected earnings. back to you. >> thank you so much, seema. right now we're stocking up for september. how should you invest with the s&p 500 hitting another record height breaking through the 200 mark?

joinedings is the comanager the morningstarred five-start villery rate d. welcome to both of you. brian i'm going to start with you. we're calling it stocking up for september. i know long term ear very bullish, but september can sometimes be a tricky month. how would you put cash to work in this environment? >> you know we've been buying the dips for some time now. if we do get some sign of a pullback, whether it's september or october, we would look at that as a great entry point and opportunity to put additional monies to wok. there's still some stuff around that looks reasonably valued, so there is some opportunities, but, you know, with the prices as high as they are, you do have to remain cautious. >> sandy, what about that? i know long term you were also very bullish on this market, but your strategy also involves taking some profits when stocks have hit specific cornerstones and marks for your portfolio.

what are you doing with that? >> that's exactly right. we looked at 40 years of data. we saw the only month worse than august was september for the markets, so what we're trying to do is we're looking at a lot of things about the market, have us a bit cautious. last friday i think was the lowest day of the year. i think it's been one of the longest stretches really in history where we haven't had a 10% pullback. i go through my portfolio and try to find where i think the 12-month price objective will be. if they're surpassing that today, we're going to sell and take some profits and look to september/october to put more money to work at cheaper levels. >> brian, what could you buy right now? what's on your buy list if indeed we get that pullback? >> there's some stocks we have owned for some time and continue to really like. avis budget group, the company's done really well driving revenues and earnings. i think the new pricing system which rolls out in the latter part of this year continues to expand their margins. zip cars turning positive,

you've got new markets rolling out. we really like them. another company we're really in love with is skechers brand. i think the brand is gaining some rep tagsz. they've that i highest quarterly sales in company history. their revenues were up 37% year over year. so they're doing everything right to drive their sales and profitability. >> sandy, if you do raise some cash, where would you put it to work? >> one of the names i like is lkq. probably one of the few 8.4 billion mark cap companies that people don't know much about, but they essential refurbish and recycle auto parts. about 25 to 50% cheaper than new. so it's about 16% year to date. trades at about 16 sometimes earnings, and it's growing north of 22%. it's a name we like a lot. another name is sanchez energy which will have their analyst day in houston tomorrow. so i hope to learn a lot about

acquisitions they just made from shell that will double their production, double their prove reserves. so we want to learn a lot about that tomorrow. but anyway those are two that i like a lot right now. >> good ideas for our viewers. thank you, gentlemen, very much. appreciate it. >> thanks, sue. today yahoo finance's question of the day -- how are you planning for september? go to vote at cnbc.com/vote. check out what's happening, which is a big chinese intern internetsh and sales, so the reason it reported lower margins. gross profit margin was down two percentage points from the first quarter and operating margin was down 1%, due to heavy marketing expenses and personnel costs. the shares off their session lows, still, simon down by nearly 9% on the day's trade. new single-home sales falling 2.4% in july. diana olick has more live from washington.

>> reporter: well, simon sales were down month to month, but there's a huge margin of error. you have to look at june to really understand july. so let's do that. the striae was looking for 425,000 annualized sale in july from the june's really low 406,000. instead it got 412, but june was revised way up. so it ends up being a 2%, but up over 12% from a year ago. now there are big regional differences mainly only the south saw a gain month to month. the northeast saw a huge drop in new home sales. the west also a big drop. every region but the south is down in sales from a year ago. the slower sales pace pushed supplies to six months. that's a lot less tight. the builders are starting to develop more loss, though starts are still very slow. that, of course, keeps prices high. the median price rose 3% from a

year ago, and to give you an that's 21% higher. 9 home builders have admitted they're focusing on the higher end product, because that's where demand is, but d.r. horton saying they will offer incentives to get more buyers in the door. >> diana, thank you. susan wachter is at, and raymond james senior vice president. professor, let me kick off with you. thank you both for coyning us. how would you sum up the present state of the housing market, professor? >> it's lagging the overall economy for sure. that's because we've got investors stepping back and also first-time homeowners missing in action. >> it's interesting. we had a very strong new home starts for july coming through. i guess that has more to do with

apartment building, which is not what we're really talking about in today's figures. >> multifamily is doing well. that's a reflection of renter is the way to go for the mill lennial. they can't become homeowners as in the past. >> buck, from an analyst perspective, what is your view, and what does it mean for the stock market or the individual players? >> well, i think we were set up for a dismoment given the builders sentiments that came out. we really haven't seen a major inflection point in single family demand in more than a year. the demand is still driven by the renters, and still see demand for single-family rental product as well. the sweet spot of the market, like diana mentioned is the move-up segment. if you break down the data sales of 234u homes, which is a fairly expensive home for most

households were up 34% year over year. sales under that $300,000 mark were only up 6% year over year. >> bottom line in terms of investments, what do you like at the moment? >> exactly. bottom line is we would stick with home builders more focused on the move-up segment, and have land positions that we think are in the best and highest quality school districts. that's where we think there's a differentiation in the market. names like toll brothers, lie pauly group, standard pacific, and small-cap pure play. all have very high-quality land positions. we would stay away, names and nor like a d.r. horton, maybe a kaybee homes, those names just have positions that we like. if you were invited in, what would you say? >> well, we need to redo

housing, it's on the table, but we haven't gotten there. we have -- constrahan, constraint, constraint. >> we're talking about the calm years and decades -- we're double those down payment requirements. it's basically taking the first-time homebuyer out of action. it's making it a different market to trade up as well, but certainly there's more action in the trade-up, and multifamily is what's doing well because of this. >> good to see you both. susan wachter, and -- coming up next, we're going to tell you about a unique earthquake warning system, plus josh lipton is on the cleanup that is occurring after that napa quake. he's live in napa. over to you, josh. >> reporter: well, sue, take a look at this building behind me. this is in fact the oldest commercial building in napa. the inspectors are. the fear is this building might

have to get torn down. we'll have more on what napa is doing to get back online. that's culling up next on "power lunch." 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. [ squeaking ] [ water dripping ] visit tripadvisor hawaii. [ whistling ] with millions of reviews, tripadvisor makes any destination better.

after gallo, downplaying damage to the operations in the northern california earthquake that was centered in napa valley. it reported minor damage inside some of its wineries, but

nothing structural, saying the vineyards were not affected. that stock you can see, still down about three quarters of a percent, but still not at bad as people thought it would be. >> that's a good note to leave it on. we're going to talk more about the earthquake, though. this is the security camera video from a 7-eleven in american canyon. basically you can see that it's showing us what happened with the earthquake, and it's basically showing what happens when the quake strikes. you can see the customer and clerk run for the exit. the food falling in the aisles. mary thompson is here at cnbc headquarters with a look at the business of earthquake insurance and the financial loss, but first we're going to go for josh lipton. he's on the ground there in napa. >> reporter: the city has identified 33 buildings as unsafe because of damage from this earthquake, and nearly 100 in total throughout the area. so government buildings, the

post office, the courthouse, are deemed hazardous. as for private business owners impacted, for them it's about getting back up and running as quickly as possible. to help them, a private company based in california called rest ray management company has been brought in to help. it specializes in emergency services, so sewage cleanup, demolition, construction, whatever it takes basically to get businesses back. >> basically trying to get these buildings back up and going so businesses can open up again as well. >> reporter: that's what the city wants to see, the businesses get back online, and to keep this economy growing. sue, back to you. >> josh, thank you very much. to mary thompson, the usgs estimating the loss could be in the billions. tell us more about that and the insurance costs. >> well, sue, the united states geological survey says when it does come to economic losses, it's tagging the napa earthquake with a red alert.

according to the usga's website it suggests to $10 billion, but equicat puts it half a billion to a billion. we know for sure it's a fluid situation, and the numbers will be changing, as the interruptions to businesses are understood. still, this could make it the third or fourth most expensive in terms of insured losses. the last quake to hit that region was back in 199. while the usgs says the there are plenty of vulnerable structures there. adding disruption to the tourism industries and the wineries, and those losses are likely to mount. while california is home to two thirds of the -- and 2,000 known fault lines, only 12% of the state's homeowners actually carry earthquake insurance. the percentage in napa even

lower, according to the insurance information institute. cost and high deductibles are a high reason that homeowners opt out for covering their homes. and it only covers the structural damage, any fires or disruptions, gas pipes, should be covered by regular homeowner -- so it's a structural issue. >> i remember in southern california we were required to have it by or mortgage holder, and it was really expensive. >> but it changed after the northridge earthquake in 1984, because the insurance companies didn't want to do it anymore. >> understandably so. >> that was the most expensive earthquake, of course. >> thank you, mary, very much. simon, down to you. it's worth pointing out that earthquake early warning systems are in place given alerts before they actually hit. >> earthquake, earthquake, light shaking expected in 3 seconds.

>> like this one, the shake alert system is a collaboration between uc berkeley, cal tech and the university of washington, and instead the u.s. geological survey. joining us is john vidali, the pacific northwest northwest seismic network. professor welcome to the program. i suppose the important thing is earthquakes travel at the speed of sound, but you can transmit a signal at the speed of light, therefore you could get an early warning to say, downtown l.a., hopefully eventually? >> that's exactly right. that's just how they work. you can give a few seconds or best kay even a couple minutes of warning. >> what is the state of the technology at the meantime. where do we need to get to? >> the concept is simple, as you just explained. it's really that we need the equipment to reliably detect the shaking and we need the ability

to transmit the information and need to use the information once people received it. so it's really the fact that we have to build out the software and prepare people to use the information. there's no huge technological problems. >> there is a judgment, though, in what do you if you go ahead a 30-second warning that a quake is on its way. presumably elevators stop, surgeries stop, what type of things would you envisage. >> there's quite a lot. getting off bad bridges, vie aducts, surgeries stuck in hospitals, airplanes not landing, you know trains that would rather not run into landslides. also people's frame of minds. if they know what's coming, they can prepare. >> how do you deliver it? i guess for each individual application -- do you get a siren? an audible voice? how would you ideally do it? >> it depends, we're most of these things would be your cell

phone can tell you when and how severe, your television would have it pop up, the computer, sirens, as you're saying. mostly a lot of automated signals would go out to machinery and controls. >> i imagine it's going to cost some money to do this. we have a specific plan, and it's under $20 million a year. that's where we are now. there would be an incentive. we have to leave it there, too, john. john vidale joining us from the pacific northwest seismic institute. we have some exclusive footage of the sochi track.

that's good news for sochi. what about the other former sites? we'll look at how some have fareed since they hosted the games. it could become one of the most expensive divorces ever. robert frank is on the story. >> expensive indeed, so harold hamm is worth more than $20 billion. as part of the divorce he's arguing the company's success is mainly due to luck. we'll explain why and what it could cost him. we want to hear from you. in a divorce, should assets earned during a marriage be split in half? go to cnbc.com/vote, and weigh in. n kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy, affordable, kid-inspired, chef-crafted food. we looked at what are the aspects of food that will help set up kids for success?

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the dow is closing in on its intraday high, for you stock fans out there. leading the way higher, goldman sachs, also jpmorgan, a couple financials. nike, merck and verizon, with goldman sachs and jpmorgan, leading the way higher. back over to you. >> political problems or no. the f-1 has given the green light, making the formula one track in sochi available for racing. hi's boulevard to be perhaps the only western journalist to see it up close and personal. check out these other photographs of sochi taken by alexander belingi, he describes

it as a virtual ghost town six months after everyone was there. he says tourists are nonexistent and restaurants and stores appear deserted. here's a look at the present-day olympic site from athens, greece, host to the 2004 summer games, which were roundly criticized for massive traffic jams and overall chaos more than anything else at the time. despite spending $15 billion on the games, today most of the venues are unused and in disrepair. timely some haunting pictures of current day sarajevo, capital of the present day bosnia and herzegovina, host of the 1984 winter olympics. three, the crumbling bullet-ridden ruins show little evidence of the game from the brutal four-year war that tore

apart the former yugoslavia. let's talk about the gold mark. we're going into the close on gold. right now we have a lot of about 1.80. most of the markets not all that active today. to the bond market, though, where there's always a lot of activity. rick santelli is there to track the action. hi, rick. indeed new home sales today, i guess beauty of new homes sales is in the eye of the beholder or in the length of the chart. you look at a five-year, it looks a lot better than if you look at a ten-year, which doesn't look nearly as aggressive first of all the ten-year, second of all the euro versus the dollar, and clicked off 2000 today, down here they call it the s&p as the new gold. back to you i realize thank you, rick, very much. it could become one of the most expensive divorces ever.

billionaire harold hamm and his wife calling it quits after 25 years of marriage. robert frank has the details. we want to hear from you as well. do you think that assets earned during a marriage should simply be split in half. can you vote, go to cnbc.com/vote and weigh in. i cannot even imagine how much money we're talking about. >> we're definitely talking billions. he's worth over $20 billion. his wife could receive billions, but it depends on how much of it came from luck or hard work. now, get this. here's why. like most states, oklahoma is an equitable distribution state, means a judge determines how to fairly divide the assets. the couple has active and passive assets. active assets are those that come from work. those are the ones that can be divided. passive assets are hamm actually gets to keep all of those. so his attorney are arguing in court that the $17 billion that he created during his marriage came largely from luck or

happenstance, not from his management. they just happened to strike oil in the right place. this is a man who has run the company since 1967, the ceo and the chairman. he owns 70% of the company last year he total comp was more than $3 million. look at the stock under his leadership, going from 65 in 2012 to 154 today. now to be the biggest divorce, sue, ever, his wife would need to get more than $4.5 billion, but to be richer than oprah, she would need just $3 billion. even a tiny share of that 17, she did okay. >> but i wonder how the board of directors feel about it all being just luck. >> i don't think he'll say that in the next quarterly earnings call. >> right. what did you say? the only time you'll hear a ceo say that? i think you're right on that. we are going to give you the poll numbers right after a quick break. you voted, and we're going to basically give you the situation in a second.

simon, take it away. >> no wonder she's divorcing him. a history day for the market. s&p 500 topping 200 for the first time ever, struggling to hold on to the gains. plus, ahead in the show, stalkling sony, the playstation network gets hacked, and a ball threat on an aircraft carries the head of its online business the this is one bizarre story, and it's next on "power lunch." thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life.

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before the break, we asked, in a divorce should assets earned during the marriage be simply be split in ha of 34% say yes, but 66% say no, a third party should decide. thanks for voting. very interesting. back to dom for a market flash. >> very interesting on that question. we're watching shares of boeing. the stock is rising on news that boc and i have jails, the leasing arm of the bank of china has placed the biggest order in its 20-year history for 80 boeing medium-haul passenger planes.

boeing shares, you can see off the session highs, up about a half person, simon, on the day's trade. >> the big headline is the s&p 500 broke through 200 for the first time ever, and the speed of the climb is really quite impressive. it took six months to go from 1800 to 1900. that last 1,000-point leap, be did it in just three months. joining me now is bob pisani. so an accelerating trend on lower volume in the summer months with qe ending. >> very impressive, in a supposedly weak month like august we moved forward. as you noted 100 points in three months on the s&p 500? >> 5,000 points in three months. >> yes, 1900 to 2000. >> sorry. yesterday. that's why you're here, bob. >> that's what's important. here's the key. take a look at the s&p 500. my point is that it's been a broad rally here so you get

cyclical names. here's three stock that is power the s&p forward. the first one is underarmour, up 46%. that's a huge move, but that's not impressing me. two stocks really have impressed me. you never would have picked them to power the s&p forward. first is intel, up 32% in three months. we have the combination of the great yield 2.6%, but the potential for earnings growth off of cap ex revival in the computer space. that's what's moving it forward. remember, hewlett-packard was left for dead 18 months ago. a $22 stock. nobody, nobody was putting money on hewlett-packard. you see the move up there. hewlett-packard up, what, so%? nice move. so today we're hitting new

14-year high for the nasdaq 100. nonetheless xwreive. we're off the highs of the day. yes. both trading at their highest level since september of 2000, nine days of gains for both indexes. in terms of what stocks have been driving the index higher, what's interesting is that it's not just tech playing a big role. a lot of consumer names. take a look at that full screen. monster beverage up about 22% over the past nine trading days. keurig green mow, with the partnership with kraft. and also ross stores. when you look at tech, it's apple that's playing a big role in driving the nasdaq higher, hitting an all-time high, rising expectations ahead of the iphone

6 launches which is slated for september. sue and simon? >> thank you so much, seema. we are also keeping eyes on the shares of sony today. the company's popular playstation network hit with a cyberattack, but that's not all. a plane carrying the online president being diverted because of a bomb threat. our jon fortt is here with the latest details on a pretty incredible story, jon. >> it's an interesting story. in a sense it's probably a victory for sony that it did end up being more serious. first of all the plane -- it seems that lizard squad took the opportunity to issue what amounted to a bomb threat. no such thing was found, but the fbi on the case there. on the digital side, sony said that they experienced in their online network what's called a distributed denial of service attack. the basic way to explain that is

the service gets flooded with all sorts of requests, all sorts of traffic, and sometimes what happens, they go ahead flooded with so much traffic that it causes something to shake loose, and the serve i was give up information, perhaps about customers. sony said that did not happen in this case, no customer information was compromised, but the online network was brought down for several hours, came back up this morning, sony saying this sort of thing happens all the time if you're a big target as sony obviously is, because they're in the lead in the latest rounds of the console wars, but very serious. it becomes a criminal issue in the real world with a plane as well as an issue for an online network. >> an awful lot for a company for handle in one day. simon, down to you. you think california has a drought problem? detroit is facing a really worrying problem with the water supply. how the taps could be turned off for many homes beginning tonight.

also it comes to wearables, forget smart watches, think smart t-shirts. high-end retails high-tech bets. and mcdonald's problem with the mill lennial. that that and pour on the power rundown next on "power lunch." starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

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[ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon. sgra morgan, what can you tell us? a moratorium against water shutoff expires tonight. so starting tomorrow businesses and residents that are more than 60 days dlingt are delinquent will start to see shutoffs again. we saw this earlier starting in march as the water and sewage department started shutting people's water supplies off we saw about 19,500 residents go without water between march and july, as well as a little over 150 businesses.

they did this just to try to drum up money. we've seen a lot of issues with the water department. they've been running deficits. they need billions in infrastructure maintenance, so this is how the city has been cracking down. that caused a lot of drama. we saw the u.n. calling it a human rights issue, and even though it's not at part of the bankruptcy situation in detroit, it got folded into it. >> i guess the difficulty, dom, is they have 90 billion of bad debt they want to write, but it's who can pay versus who is refusing to pay. >> that is the key. first of all, water should be at least in a developed world country a human right almost if you look at it that way. it seems almost unfair or even unjustified to have water be at the center of a controversy like this, but for detroit's situation, if it comes down to whether or not who can pay or who can't, maybe you have to relook at what exactly you can hold hostage in a situation like

this. >> topic number two, ralph lauren with a biometric smart shirt. they're being worn by selected players during the u.s. open this year. this look a bit tight, dom, with these sensors. >> first of all, simon, i think they would look great on you. personally -- >> you are a kind man. >> you are a fit man. but this is just the next evolution. we all knew that basically with fitbits and wearables, the next thing that was going to happen is we would have them on us all the time. clothing that does this is that logical next step. what is interesting, this is very big brother, right? we all thought the cloud was going to be with wearables, and you can take off -- it's constantly monitoring you all the time. that could be a big deal. >> i can imagine that in years to come bosses will require their workforce to wear them to see if they're sweating it at work. >> i think it's a data play. the the fact that fashion designers are getting into

wearables, i think it's a bigger trend, but the other is this the amount of data it can collect. >> let's talks about topic 3. with analysis of the worst sales slump in the decades in the journal being blamed in part about the mill lennial. it goes instead of the golden arch, people in their 20s and 30s are good to chipotle, five guys and panera. >> does that ring true for you? >> that's probably why shake shack is reportedly looking to ipo. the same concept. we've seen mill lennial falling off. i think a lot of it has to do with shifting tastes toward organic, locally sourced better quality ingredients. mcdonald's is now in a position to scramble. >> i guess the issue is they should have seen this coming. this is happening time and time again. they seem surprised every time. >> simon, first of all, i would

say i still like mcdonald's, i still eat it every once in a while and probably why i don't look nearly as good as the wearable polo shirt that as wearable technology in it. but mcdonald's has its work cut out. it has to figure out how to get the younger shoppers in there. i tend to like the menu items, but again i'm not exactly the target audience. >> dom, morgan, it's been a pleasure. we have three movers to watch for you right now. plus escape the cube. coming up, a woman walks away from the wealth of a hedge fund to craft a career-making rum. >> i wanted to make something that i was going to be drinking a lot. >> escaping the cube, next. 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.

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welcome back to "power lunch." dow jones is reporting that the company is buys twitch for more than a billion, this after reports that google had virtually sealed a deal to acquire that video game maker for about a billion. twitch shows video play, amazon is up. as for google, they're down on the session.

sue, back over to you. >> thanks, dom. burger king and tim horsen's are soaring. bk is in talk to merge with the canadian chain. that would create the world's third largest fast food company and allow burger king called an inversion, it cuts the u.s. taxes significantly. activist investors engine capital and red -- putting pressure on ann taylor, saying it's deeply undervalued. u.s. steel has been higher. it was upgraded to outperform by credit suisse, citing cost advantages for raw materials. why make piles of money studying liquor when you can earn a living making your own. that's her plan when he started a rum distillery in brooklyn. >> this is something, you know, a crazy person would do, build a distillery, make a product having ner made it before.

hi. i'm bridget, the founder of the noble experiment nyc. i used to work at a hedge fund. i was a financial analyst. i had a specialization in the global alcoholic beverage categories. i had decided that i wanted to open my own business. i love rum and wanted to make something that i was going to be drinking a lot. a big part of the research was kind of visiting the small distilleries, listening to their experiences, understanding how they actually constructed the distilleries. i kept it really hush-hush for a while. i told my parents and they kind of brushed it off. they were taking aback a bit. i'm bridget's sister. they thought she had a great standing in her current career. >> by the time i had secured all the funding and had signed a lease on a space and had quit my job at the hedge fund, they kind

of thought i was having a bar or something? >> but they were very confident in her approach and very proud of the business idea she had laid out. i name the company the noble experiment. actually the u.s. government's nickname for prohibition. it also serves as a double entendry for my own non-gmo, grade a molasses, a long cold fermentation. when i first tasted the rum, i was nervous, but also super excited. i thought it was delicious and wouldn't way to try it out in various cocktails. >> i started out selling the rum out of the trunk of my car. from the beginning, there was a lot of interest in the product. >> the last tasting was really popular. >> not getting the draw or bon uses i was getting on wall street at all, but way more fulfilled with growing a brand. >> thanks, cheers.

a great story. she must be doing something right, because her white rum is winning awards and recognition. right now you can only buy it in new york state, but it is expanding into new marx this year. let's see what's coming up on "street signs." >> good to see you. a milestone in the market today, but we don't just tell you about the milestones, we analyze them techically fundamentally and historically. also, is twitter destroying itself? one guy thinks so. and if you want to, you can weigh in ironically, you can tweet us. we want to know what you think about that topic as well. we'll be right back after this at 12:00 p.m. eastern, make sure you make it a date. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if." no question about that.

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the marx, meats another assault on s&p 500. will we get there before the end of the so, sue? probably not. >> maybe not, but hope springs eternal. thanks, simon. that does it for us on "power lunch." >> "street signs" begins right now. they will be eyes s&p 2000. i think simon must have looked at our rundown. yes, we are talking about stock records, but also earthquakes in napa. superman, and is twitter killing itself? a busy summer monday. starting with the latest. the strange of an executive on a diverted flight, and what mike the weaverer excuse you have heard in a divorce. >> now we know that the s&p hit 2000 for the very first time ever