traders to account. >> joe turner. short sears. >> i like mcdonald's. >> all the alibaba talk yahoo going higher. >> have a great rest of the day. "power lunch" starts now. "power lunch" and the second half of the trading day start right now. welcome to "power lunch." a big fall for the nasdaq today and the russell outpacing it. the s&p and dow are holding on. we will talk about why tech is in trouble today. a big step in the fight against alzheimer's. announcing positive testing of a new drug. take a look at the shares today because they are up huge on the trading session, 63%. the ceo is going to be with us in just one minute. would you put your money with this man? you know him. he is making a big move allowing many more people to do exactly

that. we are going to let you weigh in. you can vote at cnbc.com/vote. tyler is off today so simon is my partner. >> let's check back on the markets. the dow and s&p 500 holding steady. the nasdaq getting clobbered. there is an active discussion about the proportion of the composite and the russell 2000. they are in correction territory down over 20%. it is that research and analysis doing the round and the possibility that you are actually narrowing the risk appetite in the market that people are talking about. let's check specifically what is lower today and get over for more on the nasdaq. >> here is what we have here big name nasdaq stocks are down big across the board. tesla is taking a hit on a morgan stanley report echoing that the stock was getting maybe ahead of itself. tesla down about 8% on the trade

today. netflix is moving lower as it begins its push into europe. the telegraph saying the company is getting perhaps cold reception in that area. netflix down by about 3% in trading. facebook amazon, price line, internet momentum stocks getting caught in the tech selloff, as well. those shares down on the day. >> maybe people raising cash for alibaba on friday. a mixed session for stocks. one drug name making big news. avanir trading at an eight-year high. the company says its drug was more effective in reducing agitation associated with alzheimer's compared with a placebo. the stock got more than 230% so far this year. here with the ceo of this stock in the cnbc exclusive.

>> joining us now exclusively from irvine california is ceo of avanir farmpharmaceuticals. >> what about the data surprised investors so much? >> i think because alzheimer's has been such a difficult area to demonstrate success in the fact that we were able to demonstrate success in such a clinicaly meaningful benefit for patients that caught people by surprise today. >> tell us about the potential market. you are not treating the underlying cause of alzheimer's but treating something that effects about half with alzheimer's disease. >> we estimate over 1.5 million americans. the ability to ultimately get a product approved that can help the patients is something we believe will be welcome.

>> tell us about how your drug is thought to work. i understand it is a combination of two existing drugs and some call it controversial because the drugs already exist. maybe tell us about those and whether it has bearing on how you can price the drug given the drugs are available apparently. >> it is a proprietary combination. it is a metabolic inhibitor so it stops the body's ability and that allows it to go into the brain and ultimately confer the benefit that we saw in this study. >> are you concerned at all with reimbursement for the drug? i know there have been questions about pricing is higher than the two drugs independently? >> certainly we have a lung path before -- long path before fda approval. the focus is to meet with regulatory agencies and

understand what it is going to take to make the drug available. it is a huge day for patients who have agitation due to alzheimer's. we are focused on how to make the therapy available. >> thanks for joining us. >> thank you. >> back to you. developing news on the nfl crisis. >> so here is what we have the latest from the nfl with regards to the steps it is taking to prevent domestic violence in the future. nfl commissioner roger goodell sent a memo saying he placed current nfl vice president of community affairs into a more expanded role. she is the vice president of social responsibility. isakson's new role will oversee development and education, training and support, these programs relating to domestic violence, sexual assault and matters of respect. goodell announced the league has retained the services of three senior advisers.

also a group that raises and deals with domestic violence and conversations about sexual assault. and rita smith, the former executive director of the national coalition against domestic violence. three new hires, three senior advisers. we have also got news about commissioner roger goodell's compensation. we have learned that roger goodell made about $104.5 million in compensation between the years of 2008 and 2012 much of that 40 some million dollars coming alone in 2012. some numbers behind the current nfl commissioner. >> it is a big business. stocks down here new york stock

exchange mixed today. venture capitalist telling "wall street journal" that silicon valley is taking on an excessive amount of risk something he says he hasn't seen since the last tech bubble. meanwhile the oecd says there is a possibility that risk is being mispriced again as it slashes its growth forecast for most of the developed economies. so is there an asset bubble? the senior vice president at advisers asset management. portfolio manager with compass funds. gentlemen, good afternoon. >> is there an asset bubble here? >> i think there is. there are several asset bubbles. one is certainly the bond market. i also think when you look at some technology stocks in the s&p 500 like apple and microsoft, way too much impact for the market.

the market is really not up as much as we think it is at 9%. apple and microsoft have way, way too much impact in that return. >> interesting. let me highlight one of the most respected venture capitalists. he is arguing no one is fearful. everyone is greedy and it will end. he invested in uber and open table and zillow. what do you think about this big tech? >> from a stock market perspective i would say the market overall is probably vulnerable here to some decline. i don't see a real parallel between the prices the buying urgency today with what we saw back in 1999 or early 2000. i think we are in for more of a correction but i don't think the multiples are that frightening that the market can't continue after correction that the technology can't continue to lead. we have seen several sharp corrections in technology and

bio technology this year. probably see another repeat to some degree maybe a lesser degree of both of those sectors right now. >> how would you position your portfolio for people that are worried? >> as we see in the market now there is a flight to safety. the dow is outperforming the broader market. i think it is time to wait it out. the volatility index looks like it is going higher to me. i think you are looking into the dow that could go down to mid to upper 16,000s we will call it. right now a time i think to sit on the hands and let the market play out. >> just finally what do you make of the argument that the appetite for risk in the market is narrowing specifically the work going around that almost half of nasdaq composite stocks are in correction territory and fallen by over 20% and i think the figure is around 40%.

>> i think the appetite of risk is increasing for the stock market not decreasing simply because you have a lot of investors that have been moving out of bonds into stocks over the last few years because the bond market is not an exciting place to be. the stock market is not overpriced as a hole. it might be slightly on the higher side but it definitely has room to grow. we are probably going to be in a side ways trading environment for a while. it's just you got a few stocks that have way too much impact in the technology sector that i am worried about. i am not worried about the stock market as a hole. >> thank you both. . all eyes are on alibaba this week following a busy ipo. reporting today that the chinese e-commerce will price the range later today and that the new alibaba -- there were reports

that is leak alibaba planned to close the order book early after it received enough orders to sell all the shares in the record-breaking offering which comes on friday. from alibaba to apple for the new iphone 6. new details on apple and how big a cut apple will make from the banks. >> so apple 4 million -- about twice the number that apple did the last time they did pre-orders of the iphone where they do $2 million in sales. last year with the 5 s they did around -- it looks like this is going to mean that apple will -- the preorder figures have growth

at about 17% year over year over 7% what the street had been expecting. iphone a big deal setting the table for apple pay, the payment system and the apple watch as we expect to see later next year and on apple pay there is a report saying it looks like apple will get around 15 cents from every $100 in sales. small slice but if there are a lot of transactions that can certainly add up in big margins. >> it is a nice side revenue stream for it. >> a few cars you buy on that. >> thanks john. now to microsoft which is announcing a $2.5 billion deal to buy mojang the developer of mine craft. it is a head scratcher of a

pairing. josh over to you. >> today at the conference the big buzz is microsoft buying mojang the maker of mine craft for $2.5 billion. the cofounder of mojang blogging about why he is buying. saying thank you for turning mine craft for what it has become but there are too many of you and i can't be responsible for something this big. amazon amazon's big push into video games. this is where fans watch each other play video games. that might be seen as unusual but it is a big business. twitch is the fourth largest source of internet traffic

behind netflix, google and apple. >> thank you very much for that. the latest on the gaming sector. some giants on the move. which companies are being targeted and what is going on behind the scenes. general motors begins compensating families of victims who died or were injured in gm cars with faulty ignition switches. live in washington with the man in charge of that fund. >> more than 400 claims have been filed so far seeking compensation from general motors fund. how many of those, however, are actually eligible for a payment? the numbers will likely surprise you when "power lunch" returns. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead and what's possible when you get

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welcome back. it is "power lunch." let's talk about lunch and darden restaurants after analysts upgraded the stock from outperform to under perform believing focus on restaging of olive garden restaurants suggests better performance. olive garden defended practice of giving away all the pasta you can eat. the stock is up by session highs. >> thank you. general motors victim compensation fund is making the first payment to families of victims injured or killed in the

vehicle recall due to faulty ignition switches. >> no payments have gone out yet but we expect that to happen probably in the next three to four weeks. we have data regarding the number of claims that have been filed and those determined as being eligible for a payment. the total number of claims including 125 for those who have passed away in gm vehicles that are under recall total number of claims 445 received. just 31 so far have been approved. that doesn't mean the remainder 414 have been rejected. when we talked with attorney earlier today who is overseeing the compensation fund he says a number of these are still in process of being determined whether or not they are eligible. >> we have received these claims some of them owoefully inadequate no documentation, no

addresses. we are finding 31 are eligible and the remainder are currently being processed and working with the claimant to firm up those claims. >> he is hoping to resolve more than 90% of the gm ignition cases that have been out there so far. gm has linked 54 deaths to faulty ignition switches. now it is up to 54. in a statement today general motors said fineburg and his team would determine the number of individuals so we accept determinations for the compensation program. as for the number of death claims which is currently at 19, feinburg expects the number to go higher. >> we have some in the queue right now. there will be more than 19. how many more i think is speculative. >> no payments have been made and the final determination on those payments should happen beginning over the next month. simon and sue keep in mind that

amount is up to feinberg and his staff. it depends on particulars, severity of the injury if someone was killed what was their age and income level. he will not negotiate. she expects most of them who have filed claims if eligible will take what is being offered. there is a lot of chatter in the beer world today. reporting that ab is not in talks about financing for purchase of sab miller. what is going on in the sector? apparently a lot. are these moves out of strength or weakness? joining us to talk about that is ceo and founder of beverage marketing corporation and securities analyst. let me start with you, mark. you changed some of the ratings and expectations on some of these major players today.

tell me why. >> the ratings remain the same at buy for anheiser bush. we did pick up targets. we saw heineken's rejection as a sign at abi was interested in buying sab miller. we see a probability we will see a bid. >> this last stage of global consolidation of beer. >> the last 15 or 20 years you had what i call the global beer consolidators. and now what you are starting to see is the last stages the global consolidators consolidating. this means abi will look at what is out there and sab miller is attractive for them. >> tell me about some of the niche players that could come

into play or do you think they could come into play like coors or sam adams or are they too small at this point? >> in the case of coors we think there is a very attractive dynamic here. it is basically motivated by the anti-trust situation. specifically what i mean is that sab miller owns 58% of the joint venture in the united states. if abi were to buy sab miller odds are high considering the way regulators look at things here in the u.s. that they would say usa miller and need to get out and the way to do that is the sell the stake. >> talk to me about demand. a lot of times when you see the consolidation and see people companies going overseas to look

for an acquisition it is because demand is up. what is the state of the global beer market. >> if you look at abi you notice european market and its use markets mature. they lost about 10% of the volume. so also you have had some issues in the past improving in brazil. the other factor is that their earnings to net debt ratio has come down. this is what they do. they are very good at this. this is just another step in their global evolution. >> thank you very much. interesting conversation. we appreciate it. >> simon, down to you. can you believe there is only 100 days to go until christmas. what do people want this holiday season? clothes or electronics? and which retailers are best positioned? our panel of experts will weigh in next. join the conversation. what are you intending to buy

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lunch." check out nps pharmaceuticals. this lukewarm tone plus unresolved safety issues could compel the agency to extend its review approve the drug with restrictions or reject the recommendation. shares down about 15.5%. back over to you. hurricane odile making landfall. mexican authorities are starting evacuations shortly before the storm came in yesterday that part of mexico felt the effects of a 4.7 magnitude earthquake centered in the pacific ocean. >> wow. thank you. well no pressure here but believe it or not today marks the 100th day until christmas. what will the big trends be? which retailers might get it right this year. principle of mary epineur retail

analysis. welcome ladies. before we start talking about this we want to know what is on your mind this holiday season and on your wish list. we are asking you what you are thinking of buying this holiday season. i'm going to start with you. do you think it will be a good season. we have lower gas prices. some food costs are dropping as well. do you think it will be a good christmas christmas? >> i think it will be a decent christmas. it will be different from last year with the launch of the iphone. that will take business away from some of the traditional mall retailers. >> you think apple might make people postpone like for the i watch? >> i think a combination of things, the phone and accessories that go with it so the designers who have designed for the iphone 6 if there is a change will win from that.

and then secondly i believe that there will be gift cards given in anticipation of that watch. i believe that is also a very specific customer. i wouldn't rule that out completely. >> what do you think will be in this season. >> we have been talking about apparel over the last few years and has really been terrible. there hasn't been a big trend. the bigger deal is about technology eating into apparel sales. this year investors are really hoping very high hopes for the second half of this year that that is going to change and there will be a trend. some of the trends you are seeing out there is the consumer wants to be comfortable. retailers are come up with the jogger pant. it looks like you are wearing a pair of sweat pants and trying to convince you that this is the new trend here. >> that is not going to fly in very many offices.

>> not at all. >> what about the death of denim. stacy touched on it in that fashion trends are changing. i would assume a retailer has to be careful that they have the right mix of apparel. >> that is more important than ever. to your point and stacy's point there has been the shift to the comfort people for those people who think they will workout like me or people who do workout. it is a matter of having the right depth and assortment. >> what stocks do you like this season? >> as mary was just saying there is a lot of focus on denim. the team players are trying to convince us that black denim is the driver. i would stick with the consistent players like lb

victoria's secret that turned around their product and has inventories in line. i would like at a ralph lauren that has low expectations relaunching polo for women's brand and tj max which is the off price retailer. that is where the consumer is shopping and going for the deals and for their apparel basics and for designer wear. >> which stores do you think will benefit? >> i think j.c. penney kohl's and macy's. and i believe they are taking business back from discounters that they lost in previous years. i think they have gotten some of that back. i think they are going to be stronger than we anticipate. >> nice to see you. thank you. >> let's lock in the vote. what are you buying this holiday season? only 7% said electronics. 2% said clothes. gift cards 24% gift

certificates. 56% apple stuff. 11% of you no clue yet. i'm not ready. didn't we just finish the holidays? >> nice fire by the way. let's check out where we are on gold. last week we had five days of losses taking us to levels we have not seen since june. a little bit of a bounce back up $3.50. rick santelli tracking action in chicago. >> normally i would be showing you charts of ten year notes but it seems as though the preoccupation of our fed meeting is more on the intermediate middle part of the curve. as you look at the two-day chart of the five year first of all round 183 represented high yield before it backed off. but the next chart will show you why. most of the bearishness of late is in the five-year sector. should we trade above 185 on

closing yield basis? on the far left that was the extreme from last year. should we close above that? many traders think you see very aggressive selling and come back to may of 2011. the euro versus the dollar. our central banks on a different mode than european central bank? wednesday could be big if this trade is going under 1.29. >> a big week for many reasons. for many the reason will be the focus on alibaba. activist hedgefund manager bill acman planning his own ipo. would you invest with ackman? go to cnbc.com/vote. forget somalia, this is the most pirated water in the world. this is an incredible story you will hear and see only on cnbc.

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welcome back to "power lunch." we are watching shares of maker

of the robotics system faces lower revenues on stiff spending because of changes emminating from health care reform. right now down about 3% in the trade. >> could be tough for health care. let's look at where we are. dow up 23 points. nasdaq is still notably in negative territory. let's get a trader's perspective. >> nasdaq made this nice rebound almost 10% year to date. when people start to get a little bit anxious about what yellin may say they are going to take money where they have made profits. the high growth names are the ones that make sense to take money out of. you are not going to take money out of a value name you take money where you made it.

it makes perfect sense that money would be coming out of high growth names. >> is it too simplistic to say alibaba type stocks? >> i have heard that story all day today. that might make some sense of people. >> is that how the world works? >> i think the trader types want to have cash because they want to play on the ipo and want to be able to play afterwards. do i think that is the reason nasdaq is completely -- >> always a pleasure. let's head to the new york mercantile exchange. checking out the oil market which is rebounding today. >> good afternoon to you. it was a tough morning here in the oil pits very busy. you had crude falling to a 26 month low under $97 a barrel on the back of that weak factory outpresident data out of china. a lot of people stringing the pieces of the china story together.

when it comes to brent the international product most going to china. the u.s. not taking as much as it once was. brent prices under $97 a barrel. wti over $92 a barrel. this is a supply story on the u.s. stied. there is a lot of supply in the market. you mentioned the fed on wednesday. traders are going to be watching closely. the dollar index at 84 handle. that is what has been taking these prices lower. in terms of price targets, traders telling me wti the next stop could be $88 a barrel the next critical support to watch. >> thank you very much. good to see you. billionaire activist investor bill ackman making headlines planning to float a fund on the amsterdam stock exchange with the hope of

raising at least $5 billion. would you invest with mr. ackman? log on to cnbc.com/vote and weigh in. he has had a very good year probably a good time to do this. >> absolutely sue. i'm sure timing has to play a role in this. bill ackman looking to raise capital for years. with the hedge fund up more than 30% through the end of august he is ready to pounce. holdings a foreign offshoot will begin trading on october 13 in a deal expected to raise about $5 billion. that should add steam to the 2.9 billion currently under management as well as to the overall war chest of a little over 14 billion. the deal is launching in europe to take advantage of lower corporate taxes there. here is another interesting wrinkle. the ultimate active last investor is using a dual class

structure. these have been used for years by companies like newspapers to make sure the owners can maintain editorial independence even if the business model might be unprofitable enough. as tech and other companies embrace it it is seen as the foe and can make someone like ackman look like a hypocrit. despite that i am told that the public vehicle will use a somewhat novel model to protect investor interests by placing the beneficial ownership in the hands of a nonprofit company. that company will have the job of voting in shareholders' best interests i am told. more on that when we see the exact language in the prospectus. very interesting he is doing this. >> absolutely. we will see how it turns out for him. let's lock in the viewer vote. would you invest with mr. ackman.

i believe that is 65% of you said no you would not. 35% of you say yes. interesting result right? >> given the returns, too. >> 30%? >> that herbal life stake has been very controversial. >> tough and sticking with it. j.c. penney. but then you have allergan. china's rich are on the move. robert frank to the right of me. >> half of china's millionaires plan to move overseas. we will tell you which american cities may cash in on china's millionaire migration when "power lunch" comes right back. # special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am. equinox from chevrolet... the first and only car company to bring built-in 4g lte wi-fi

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least capital spending slow downs. >> what is left of radio shack is higher on news that the chief financial officer has resigned. adviser to the company is taking over in the interim. the hedgefund's engine capital for the parents of retailer ann taylor to sell itself. they say the company could be sold for as much as $65 a share. nokia shares upgrade from outperform to perform. >> nearly half of china's wealthiest people plan to move to another country. where are they taking their fortunes? >> china created 40,000 new millionaires last year and now have just over 1 million millionaires. half may be moving. they plan to move abroad over

the next five years. when asked why they are leaving top reason was education for their kids followed by economic security and a better climate. when asked where they are going hong kong was top destination followed by canada and the u.s. the u.s. may get more of them since canada shut down a popular visa program and hong kong facing increasing political uncertainty. last year chinese were the top foreign buyers of u.s. real estate bought $22 billion worth of u.s. homes. favorite places were california, washington state and new york. look for those markets to do better. china's loss is our gain. >> a good way to look at it. down to you, simon. >> true buyers they r. drones are all the rage including it would appear

amongst pirates. crimes on the high seas are getting more sophisticated. we will tell you a new aged pirate attack goes down and why it is almost impossible to stop them. that is next on "power lunch."

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lunch." turned under performed rating from prior neutral on the belief that estimates are too high and expectations are too aggressive. it blames slowing sales gains and rising competitive capacity. jet blue shares down by more than 7%. the stock is up more than 40% since just may. back over to you. >> thank you. this is a picture of the new kc 46 super tanker that is actually manufactured by boeing. it will be used by the air force to refuel jets in mid air. after delay the first test flight is now set for mid november. boeing shares are down today and down almost 2% in a week. in the last year they are up more than 12%. piracy is a huge problem for global shipping. while much of the attention used to focus off the coast of africa the action is more and more in a dangerous part of asia.

cnbc.com's ted kempt went to singapore. >> reporter: one involves a lot less risk of getting caught or getting killed. they are taking over ships and offloading whole cargoes. here is how it works. one team of pirates will attack a vessel underway in the straits and sail to a separate location. the first team of pirates or a separate team from aboard the waiting ship will begin siphoning off the liquid fuel or using a crane to offload large cargoes. >> they are along side one another. one of them is offloading oil on to the other one right now as we speak. chances are that is completely on the up and up. there is no way to know. if there were pirates on board with guns nobody on that crew is going to alert that coast guard

vessel that there is something going on on the ship that is dangerous. it happens right underneath people's noses. >> and the case here sue, is that once the pirates have what they want they don't take hostages. it is a very different business model, if you will than what you see, what we have seen in african somalia and the gulf of bay. they are taking whole cargoes, sometimes oil siphoning from one big ship to another big ship and moving on with it. >> let's talk more about this and bring in chief financial officer from oil transport company. welcome to the conversation. i think ted made the point that this is very sophisticated. it is obviously well organized. i would argue it is linked to organized crime. has that been your experience? >> well indeed it is linked to

organized crime because it really required an infrastructure in order to make this business model work. the infrastructure requires a team not only to go out, capture the vessel and get its cargo, but if you can't sell the cargo after you have gotten it it is not doing you any good. they have to have distribution and sales mechanisms in place in the region in order for this type of piracy to work. >> they obviously have to have a prearranged buyer on the other end, that has to drive up cost. does that get passed on to consumers? i know it is probably not possible to calculate it. >> it is really tough to calculate. the best estimates we have indicate that global piracy overall is costing shippers somewhere in the neighborhood of $4 billion a year. when you consider that that half

of the world's shipping is going through here every year you don't have to extrapolate far to figure out that that is a lot of cost. the costs go beyond the vessel that gets hit. everybody has to pay higher insurance and pay for security crews if they decide to go that route, even higher fuel costs. >> what could be done to prevent them from taking the ship or once they are on the ship what can you do? >> the first thing that everybody wants them to do that owns a ship like our company we develop best management practices. that means when we go into a risk area and our ships go into these areas carrying the very types of cargoes that are being hijacked we implement best management practices which is enhanced vigilance.

sometimes defensive measurements such as barbed wires. having the crew on alert. we are always in communication with the port state agencies so they know where we are. but at the end of the day this is also a very criminal enterprise and we have sailors not crime fighters on our ships. it will ultimately come down to law enforcement to prevent and prosecute and ultimately deter this type of activity. fortunately, though, as ted pointed out unlike the somali business model where they would hijack crew this is really just hijack for cargo and the crews have remained although traumatized maybe, unharmed. >> if there is the bright side to the story that is it. a lot of people think why not just put armed guards on. that is illegal in that part of the world? >> it is illegal in singapore and malaysia and indonesia.

>> it is a great story. thank you so much for joining us. i know we will be talking again soon. it is a terrific story. you can see more of it on cnbc.com/pirates. let's see what is coming up. >> there are a number of really big events this week that will move the markets. we will try to get a jump on them. beer consolidation, who is going to be next? and your views on tipping the hotel house keeping staff as marriott is launching a new tipping campaign. we have views that we will read out, as well. make sure you join "street signs" at the top of the hour. work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without

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make it matter. a pretty tight margin on the markets overall. dow jones about 17,000 as you can see. notable movers nasdaq has fallen away and the russell 2000 big commentary about the degree to which large proportions of both indexes with stocks in correction territory. waiting for the fed on wednesday. the ten year yields up 2.5%.

a check on what is winning. big talk about beer and whether there is a consolidation play about to sweep through there which you called earlier in the show. >> always a pleasure. thanks for joining me today. >> absolutely. >> "street signs" right now. . and welcome to the new trading week on "street signs." what a week it will be. lucky i have steve leesman along for the ride. there is the biggest us ipo in history and potential divorce british style. the lead lawyer for gm will speak minutes from now. to tip or not tip the house keeping staff. >> thanks for having me here. stocks at this hour are mixed