"halftime" is over. "power lunch" starts right now. >> all right, folks. you know the numbers. the dow down 3% in less than two weeks, and that brings up a lot of questions. question number one today, is this the correction everybody has been talking about? question number two, what is oil telling us? brent crude now down more than 18% since mid-june. is that helping the economy, or is it a sign of a slowdown in the economy? and another question today, tesla. while shares are up 80% in 10 months, what does this mean?

it is a tesla mystery. the market "d." there it is. the market likes it. the stock is up almost 3% today, but what does "d" mean? first to sue at the nyse. hi, sue. >> hi, ty. there was another triple-digit loss in the dow earlier. it's trying to fight its way back. let's get you up to date. the dow right now is down 47 points. but as we said, it was down triple digits. s&p is down 7.5%. nasdaq is down 13%. the yield on the ten-year note holding at 2.41%. ty mentioned oil. it continues to plunge. brent near a two-year low. this after saudi arabia cut its official selling price. that is a 1 1/3% loss in brent kud. west texas intermediate down just about a tenth of a percent. it was a very rough close in europe. germany down 2%. the ftse down 1.7%. france down almost 3%. italy down 4%. spain, 2.5%.

that is the definition of ugly. let's get the trading action with simon hobbs and bob pisani. they both join me here. bob, set the stage for us here and then simon's going to tell us one of the reasons of the selloff in europe. >> europe led us to the downside. take a look at the s&p 500 because things have improved since the european close. simon will give you all the details on that. but the s&p well off of its lows and we're heading back up towards positive territory. the big problem with new york is the commodity complex. sue mentioned oil but it's not just oil. the individual commodity markets like aluminum and copper, the base metals, nickel and zinc, have been continuing to decline on a daily basis for almost five weeks now. that's a major problem. it's global commodity deflation that we're faced with. as a result, anything in the commodity stock complex, exploration of production stocks particularly have been hard hit. some of them down 2% to 4%. this has been going on every day for a matter of weeks now. aluminum stocks have also been weak. your alcoas of the world are down again here today.

alcoa is down about 3% as you can see. we also have coal stocks. they've been having a rough time of it. they're weak again today as you can see. down 2% and 3%. finally, i just want to note that we have been slowly creeping up on the vix. it's been historically low. but as it sits around now 17, almost 17 here, we're sitting at, oh, three, four-month high on the volatility. >> bob, i'll see you again in a little bit. simon, it really did get ugly right at the close leading into the close in europe. >> absolutely, sue. and to be honest about it, it looks as if it's all about mario draghi. yes, the president of the ecb announced that it will start buying bundles of bank loans across the 18 member states but he failed to give a target. more importantly, markets have already rallied in anticipation of public quantitative easing, big-time buying of each nation's government debt. not only surprises towards that, draghi appeared to walk back from his earlier target of

increasing the size of the ecb's balance sheet by 1 trillion euros. an analyst at adm said all he had to offer was an air of irritation, suggesting that germany has now badly split the ecb on further action. the actual impression that mario draghi made, he concludes, was not only that the ecb has run out of road, but that also if the eurozone does not recover, the blame will have to be parked at the doors of politicians and their failure to act. now, as sue pointed out on europe's four biggest stock markets accelerated into the close. italy's market down almost 4% led by the banks which are, of course, big holders of local sovereign debt. now, in fairness, sue, since the close, we have had some less pessimistic notes coming through from the likes of citi and jpmorgan. you may bounce back tomorrow. but that qe idea is moving further and further away. >> thank you. so brian sullivan. breaking news right now concerning exxon. >> yeah, it's concerning exxon

mobil, sue. it's also concerning ebola. rick tillerson coming out and saying that the ebola outbreak has indeed affected exxon mobil's operations in west africa including their future plans to drill off the coast of liberia. liberia really no oil production, but exxon had had planned to drill offshore. now, tillerson not quantifying exactly what impact it means, but still, we are seeing concern from exxon mobil about that and some kind of impact on its business in west africa. tillerson also saying, sue, that they are prohibiting employees from now on to travel to the regions that have been most impacted by ebola. so exxon mobil coming out and saying our employees are simply not going to be going to those parts of west africa until further notice. back to you. >> and the stock has moved to the downside since you brought us that news, brian. it was down just about .10. we're now down better than .25%. thank you very much. a busy day, as you can tell, on wall street. let's stop for a second, take a breath and listen to jim cramer

on "mad money" last night. >> corrections, they're a process. think of these selloffs as gigantic sales of all sorts of merchandise, and they're not orchestrated sales. they're free-for-alls. as i see it, you have two choices here. you can be like warren buffett and decide to take the pain, confident that we'll come back to where we were not that long ago and all will be well because it's a great country and the stock market is a good place to invest. or you could acknowledge that we're going to roll back a little more, a decent chunk of our gains for the year. and it's time to take some evasive action. i think we first must separate fact from fiction. which companies are really being hurt by the slowdown? not just their stocks but the companies, and which are just collateral damage, and which are in a position to benefit from the chaos? even as almost all stocks go down at the same time, here's the bad news. we haven't had the estimate cuts for these companies yet with the exception of ford which spoke at an analysts meeting on monday. that means when these companies

report earnings, we're going to hear about these number cuts for the companies that are in the blast zone. largely industrials and commodity producers, and they will likely go down even more, just like ford did even though it was already well off its highs. the good news is that it's now dawning on many investors that these estimate cuts are coming. that's what the selloff was about. many stocks have fallen a great deal in anticipation of it. others haven't fallen enough, though. it's case by case. >> all right. as jim cramer breaks it down, do you stay the course or get out of the market? this question as the s&p 500 is on track for its first four-day losing streak of the year. joining us right now, carmine, chief investment strategist at mizuho securities and craig columbus, ceo of first ail lied asset management. welcome. carmine, react to what jim said last night and also the weakness that simon described to us in europe which i think is a very worrisome factor to many people out there. >> yes.

you could get further correction. you could see something in the order of 6%, maybe 8%. but i don't see the ingredients for a major selloff in the equity market. the km he remains healthy. interest rates are not rising. and while corporate profits might be a bit disappointing, the reality is that a lot of this damage has already been reflected in the prices and estimates. if you look at the year-over-year growth rate for the s&p 500 net income, it's down about two percentage points over the last couple of months. but more importantly, if you look at the companies that generate 60% or more of their revenues from overseas, their earnings estimates now imply a 2% growth rate. in the first half we grew at 9%. so there's been a scaling back in expectations. and i think ultimately probably halfway through this earnings cycle, you'll see a resumption of the bull market. >> craig, i think you might disagree with some of that. and you're a little bit more bearish than the last time we talked to you. tell me why. >> well, i don't want to sugar coat it. i thought mr. draghi's performance this morning was very weak.

and incredibly lacking in specifics. and the ukraine has toppled what is a very wobbly european economy. so we've got to keep an eye on that. but i think it makes the chance of an earlier rate hike in the u.s. almost off the table. that's a positive. we're coming into a strong seasonal period for u.s. stocks. give it a little bit of the benefit of the doubt. and i think ultimately, if the fed doesn't panic, please, no qe 4 here. and i think we're in okay shape. but watch europe close. >> carmine, would would you put money to work right now given the fact that we have a commodity complex, specifically oil, under so much pressure right now? i mean, that could be helpful to the consumer. it can be helpful to the economy. but how do you play it? >> well, i'm looking to buy into any weakness that occurs in semiconductors and software and pretty much across the board in the technology sector. these companies are going to be generating significant growth, and i think the capital spending cycle is beginning to kick in. so i would be a major buyer of tech. i would also continue to buy health care. this is -- many of these stocks

will benefit from obamacare. they've been showing some of the positive effects of that. i particularly like the hospital sector. and i do think that you will see further gains. just keep one thing in mind. okay. m&a activity is soaring. buybacks are basically up about 20% this year, going to equal about $600 million. >> carmine -- >> in the vicinity of 6% to 10%. >> hold your thought, carmine. let's go to kate for a market flash and then craig, i'll come back to you. >> that's right, sue, the argentina merval getting hit hard again today, down more than 9%. that's on top of an 8% drop yesterday ahead of the resignation of central bank governor juan-carlos fabrega. he's defended the government's intervention into the economy. hard-hit argentina-based stocks which is down more than 6%. back to you. >> thank you very much. craig columbus, you get the final word. i know you like technology. you did the last time we were with you, but you also like financials. >> i like financials because

we've had the best loan growth and also the 100 largest financial stocks that we follow, 85% of them had declining nonperforming loans. so that's a pretty good backdrop. that's an area i would look at. >> thanks, gentlemen. i really appreciate it. ty, up to you. >> sue, thanks very much. oil prices continuing to plunge. brent sitting at two-year lows. wti crude 52-week lows. citi out with a note saying oil prices ending the third quarter as though they were about to go into freefall. jack and anthony grizante. welcome to you both. anthony, how low do you think oil may go this quarter? >> well, we've had a nice little bounceback from the $88 area this morning but i still think this is a dead bounce and we could see $85 closer to thanksgiving and into the christmas season. >> anthony says 85. what do you say, jack?

>> i think that we can go down even lower. in fact, you know, this is a perfect storm for oil. think about it. between the saudis trying to maintain market share and cutting and slashing prices, between the strong dollar, let's keep in mind that dollar has been rallying. and the fact is that there is huge supply out there, tyler. in my own backyard in the midwest right now, you've got oil that's trading for $70 a barrel because there's nowhere to store it. >> you know, actually -- >> anthony, jump in. >> jack, you make a very good point especially the saudis and cutting prices. you didn't hear them say cutting production which is what you'd expect with falling prices. cutting prices means that they're really just trying to hold on to market share at this point. and they're not really worried about the overproduction at this point. and jack is right on, that there is a huge oversupply of oil in this world right now. >> so what does this mean, jack, for investors who may, for example, own the integrated oil companies, the drillers, the oil services companies? is this a bad time to be in those areas? >> absolutely. i think that's the one sector

that i wouldn't want to be in. and i'm one of the biggest bulls on the stock market you'll ever find. i think we could see oil work its way down under $80, maybe $78, $75. on the flip side of that, this is a huge tax cut for the american consumer. this is more money in the hands of the american economy and the fact that gasoline prices are going to go down. and we're going to see all of that really affect the economy over the course of the next six months. >> anthony, jack, thanks very much. we appreciate it. i know this will be one we'll be talking about a lot more. now to the uprising in hong kong. tensions mounting between police and pro-democracy demonstrators there. protesters demanding now the resignation of the city's chief executive. they say they'll occupy government buildings if he doesn't stand down. and you're looking live at pictures from hong kong. he says, by the way, he will not step down but is appointing his second in command to represent the government in negotiations with those protesters. sue? ty, planes, trains and now

automobiles. warren buffett buying one of the nation's biggest car dealerships. what does the oracle of omaha know about the auto business right now that perhaps we do not? well, the ceo of camping world and host of the cnbc show "the profit," marcus lemonis is with us. he used to be one of the biggest car salesmen in america. as we head out, it's not just oil getting slammed. quite a few members of the commodities complex trading in bear market territory, off more than 20% from their respective highs this year. we're following that in two minutes' time. with the dow jones industrial average now only down 26 points. we're back in two. the cnbc trend tracker live data board is brought to you by cme group. cme group, where the world comes to manage risk. mr. daniels. mr. daniels. look at this. what's this? clicks are off the charts. yeah.

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in our headlines, nike delaying the launch of its lebron 12 sneaker. the shoe was supposed to be launched yesterday in china and october 11th worldwide. no indication on the new date. the stock is up better tha than .75%. netflix announcing an exclusive deal with adam sandler for four new movies. netflix says his films consistently rank among the most viewed on its streaming service. that's almost a 2% gain in that stock. and music streaming service pandora getting upgraded to a

buy from a hold at topeka capital. the firm maintaining its $30 price target saying the reason drop in that stock is an opportunity. and the stock is responding by moving up almost 3% today, ty. another company whose shares we're watching today, sue, is alcoa, the giant unveiling the world's largest aluminum lithium facility, focusing exclusively on the aerospace sector. morgan brennan is live in lafayette, indiana, with a look at what this move means for alcoa. hi, morgan. >> reporter: hi, tyler. well, take a look at the furnace behind me. this is spewing out 2,000 degrees of heat right now. it is hot. and that is because it is filled with molten aluminum. this is the first step in a manufacturing process that is going to produce plane parts for the likes of airbus, boeing, pratt & whitney, gulfstream, also spacex. this is one of several facilities the company is investing in right now. it's part of a big push in

aerospace, an expansion that also includes the $2.8 billion rixon acquisition, also more e titanium and nickel. they're doing this because aerospace is a high growth, high-margin business not particularly vulnerable to the weak aluminum prices that have hit this company and its competitors so hard in the downturn. analysts say aluminum in particular represents a long-term opportunity because it's lightweight so it's good for fuel efficiency. it's strong and also new forging processes are making it more cost efficient. that's why this facility already has $100 million in revenues booked for 2017. >> our expertise lies in both the product and the process. and we very carefully choose where we're going to pursue patent protection, typically, sframpl, the metallurgy. we have a patented alloy here. >> reporter: alcoa says it doesn't always file a patent because that can give important

details away. some things are kept as a trade secret. for you, that's really critical because other companies are looking to expand their own product portfolios as well. constellium is the other main player. kaiser makes plates for planes. also general electric produces carbon fiber composites, chz a material that directly competes with certain aluminum alloys. now, as for this facility, this will generate 44 million pounds per year of aluminum lithium. and when you have companies like boeing announcing that they're increasing production, this industry, in general, is only set to take off. sue and tyler, back to you. >> morgan, stay safe down there. thank you very much. all right. we want to update you on the market because we have come very close to turning positive after being down 131 points earlier this morning. we're now down only 7. and we were hugging the

unchanged line just a few moments ago. the s&p down less than 3 and the nasdaq is only down about a point on the trading session. so we'll see now that europe's bad close is out of the way, whether this market can muster any momentum to the upside. we told you the commodity complex getting hit in many sectors. the gold market is holding up much better on a percentage basis than the copper, silver and palladium market. the gold market is basically flat. we're back with more market coverage for you in two minutes' time on "power lunch." big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

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enjoy the relief. well, planes, trains and now automobiles. warren buffett on cnbc earlier today breaking news that berkshire hathaway is buying the van toil group, the nation's largest privately owned auto dealership chain. buffett spoke about why he's bullish on the car biz right now. >> cars aren't going like that. dealerships are. that means every dealership's going to sell more cars, on average. so the pattern has changed, but the fundamental demand for cars has not gone down. the average dealership will do a lot more business now than 30 or 40 years ago in terms of units. >> let's bring in marcus, the ceo of camping world, host of cnb's "the profit" which returns on october 14th. we look forward to that. before we get into your rvs, you got into rvs, you were in the car business.

what do you make of buffett's move? is he a little late to the party with car sales at really a post-recession peak right now? >> well, i don't think warren's ever late to anything. i think we've got to be honest about that. but we know that the car business continues to be strong. and i think that his play on grabbing what i consider one of the best -- the group is one of the best operators out there. great process. they understand the systems. and i think warren picked up on the fact that he knows the automobile business has really turned into a digital play with great execution at the store level. you're seeing it in auto nation, with sonic, with penske. and van tile to me represents an opportunity for him to get into the car business in a big way. >> where do car dealers make their money? >> a really good car dealer will what we call 100% absorption. and that means that in the fixed operations side of the business, the service, the parts and the collision repair, they're going to be able to pay all of their bills. and so you'll find that with a really good car dealership, a

lot like a van tile group or an auto nation, if you look at their margins, you're going to see most of their fixed costs being covered by their fixed operations. and then everything else is just gravy which is why they performed so well. >> why have so many car dealerships consolidated over the years? i know when i was growing up, it was a much more sort of fragmented business. and now it seems to be consolidating very rapidly and the chains really are dominant. >> well, there's a couple things, tyler. first, we saw the elimination of a number of manufacturers, no more buick, no more hummer, et cetera, et cetera. and so i think that was kind of the wave, the first wave. i think secondly, the consumer wants to buy a car in a more professional environment today. and while ind pend auto dealers vil agrit allows for dealers to carry maybe 10% or 15% less inventory when they're part of a

consolidation because they can access stores that are 10, 20, 100 miles away. there's a lot of systems and process. now, unlike the rv business, the auto dealers don't get to buy cars for less whether they have 100 stores or 1. and so they really make it up on the used car side, on the service side, and on the internet side. and that's why i think the consolidation plays made a lot of sense. >> before we let you go, check out this mysterious tweet there tesla ceo elon musk. looks like he's suggesting that the electric carmaker may be gearing up for a new product next week. it's called "d." is it a new car? a new feature? about time to unveil the "d" and something else. what is it? it's kind of unclear. we're going to ask viewers what they think mysterious "d" stands for. go to cnbc.com/vote. marcus, what do you think "d" could mean for tesla? >> look, we know elon's one of the smartest guys not only in the car business but in business in general. he's got to not only have a new product, but i think it's also

addressing some of the battery issues that have existed. that would be my expectation. if i was a betting man, i'm not, but if i was, i'd hope to see a sport utility come into the lineup. >> that's an interesting thought, marcus. that is an interesting thought. of course, marcus is the host of cnbc's -- there are two shows that i look forward to, one is "the blacklist," the other is "the profit." the new season of "the profit," october 14th. marcus, we'll be watching. go ahead. >> and tyler, don't forget, the business you see behind me, automatch usa, is one of the episodes from our season two. we started with one. we'll have ten open by the end of the year. and so we obviously believe in the car business as well, and "the profit" helped me get there. >> thanks very much. we'll see you in a little while. to phil lebeau now with more on what tesla's mysterious "d" could be. phil. >> it's ginn's guess. take a look at that tweet one more time. when i saw this last night and i sent it out, i immediately got bombarded with ideas.

people saying well, here's what i think it is. and the most common idea that's out there -- and let's be honest, this is all conjecture at this point -- the most common one you'll find is that the "d" stands for all-wheel drive because they'll have dual models on the model "s" because right now it's only rear-wheel drive. a lot of people said it would be wonderful if you could increase the torque by making it dual motor and then all-wheel drive. we should also point out that after he sent out that tweet, elon musk then sent out a following tweet because he was reading what everybody was saying on the internet in terms of their ideas. and he wrote, "i love the internet. comments had me literally rolling on the floor laughing. no, it wasn't intentional. glad i didn't mention the other letter." obviously playing off some people thinking it should have a dirty connotation. not just the "d." at the end of the day, tyler, it's anyone's guess what we'll see on october 9th. most people are of the belief that the "d" stands for dual motor. therefore, they will see an all-wheel drive version of the

model "s." >> interesting, phil. and if i learn nothing else, i learned what rofl means from you today. let's lock in the vote, folks. what do you think "d" stands to are? 19% say a dual-motor all-wheel drive. 40% say driver assistance. and 41% of you say it means a new model. sue? all right, ty, the nasdaq has moved into positive territory. and the dow is challenging that as well. so let's take a look at the markets. we're down less than a full point. well, we were down less than a full point. the dow's clawed its way almost all the way back. it's down 1.3%. the s&p is down 1.3 points i should say. the s&p down a little over 1 point. there's the positive, the green arrow at the nasdaq, which is up 4.5 points on the trading session. so what's that doing to interest rates? let's go to the bond market, rick santelli tracking not only the bond market but there was a lot of action in europe today. currency action. and ricky's going to wrap it all up for us. hey, rick.

>> absolutely. it really is about europe. it's like stereo. we have the weakness in japan on one side. the weakness in europe on the other. and even though we're doing pretty well, the effects of those negative vibrations is going to take a toll. now, if we look at the two-day chart of tens, it really says it all. yeah, we're up a couple basis points, but look at it in the context of year and yesterday and the previous several days. part of the driving force had had been weak equities. it will be interesting how this turnaround may affect interest rates. hoping to chart up to february of this year. you can clearly see why it stopped where it did. whether it's the left side or the right side coming from the bottom, it was the perfect place to have the reversal technically. the next two charts, sue was talking about europe. look at the dax intraday. look at the cac intraday. not pretty pictures. and on the dollar intraday, it's actually up off its two-year lows against the greenback. tyler. >> actually, i'll toss to sue. sue. >> absolutely. we're going to take it because the major indices, well, they

were flirting with four straight days of losses, but we'll see whether or not the dow -- we just went positive by two points. the dow's fighting back. what traders are saying about the days and the weeks ahead. plus -- >> today's "power house" is home to four fortune 500 companies. the birthplace of former microsoft ceo steve ballmer. and it was the first to hold the country's state fair. can you name that city? we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing.

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welcome back to "power lunch." jpmorgan is pushing back against a "new york times" report that it is dealing with a second hacking attempt to access its computer servers. jpmorgan giving a statement to cnbc just within the past couple of minutes saying the story is false. we are not aware of a gnawnew attack. this despite that jpmorgan uncovered a second attack linked to hackers based in italy. jpmorgan, however, saying that story simply not true. and sue, all the information we have right now is based on this jpmorgan statement to us. and that is the full extent of what they're saying right now.

the story is false. we are not aware of a new attack, sue. >> all right. eamon, thank you very much. sorry i stepped on you there at the top. i know you'll continue to follow that story for us. now to the stock market where we had briefly moved into positive territory for the dow jones industrial average. the s&p had turned positive as well. right now we're only down about 10 points on the dow. the s&p is down under 2, and the nasdaq is actually up 4.25. so let's get to the trading action. bob pisani here with me at post 9 along with art cashin with ubs financial services. art, you know there are so many rumors out there today. geopolitical risk is high, but the bulls and europe is really a mess right now, but the bulls are fighting the good fight today. >> yeah, i'll give a little piece of circumstantial evidence here. what we saw was when europe closed, the selling began to dry up, but more importantly, and the real evidence was, the run rate, the volume fell off a cliff. so that tells you that the early

selling was not just influenced by europe. some of it actually came from europe. >> came from europe, yeah. >> draghi gave a very downbeat assessment of the overall state of europe. and i have to say, good for him. draghi has been saying for a year now that the european leadership needs to get more aggressive about restructuring the economy. he said i've done nveverything can to keep interest rates low and said the european leadership have done nothing to restructure your economies. you've done nothing to improve the tax situation, freer movement of people across your borders. and he's right. they've done nothing. and he had a little bit of a tell ter tmper tantrum today, i. >> how important is our market to europe? i talked to an increasing number of analysts on -- here at post 9 who say it's on the verge of recession again. and what's the impact to us if that happens? >> well, that's a real difficulty because not only is europe on the verge of dipping back into a recession, but there's several misfires going on in tokyo. >> right.

>> you know, as rick was saying before, we were caught in kind of a stereo problem here. and that could be a real difficulty. a good deal of the income -- of the income coming in from the s&p comes from international sales. so that could be a problem. important to watch how we close today. do they worry about europe overnight. >> take a look at, you know, those percentage losses that we just showed you on european is very worrisome. it's very worrisome. what would you ideally, for the bull camp, like to see on the close today, art? >> i would like to see at least relative firmness in the final hour. i don't want to see them say uh-oh, less than 24 hours from now, i'm going to wake up and find out that europe is a mess all over again. >> right. >> so they need to show a little bit of courage going out. >> we're still dealing with the implications of the ebola virus. we don't know, it might be contained here in the united states, the cdc says they can contain it, but when i was at the traders conference

yesterday, the big issue was can you contain it from a global pandemic. look at africa. we can't model for that easily. and the whole democracy thing in hong kong is another little known/unknown that's descended on the markets that we had to deal with. >> absolutely. thank you so much, gentlemen. appreciate it. to kate rogers for a "market flash." >> t-mobile is spiking right now on a report that francis ilead will bid for a bigger stake. he intends to offer $33 for the larger stake according to the report. t-mobile up more than 1.5% on that news. back to you guys. tyler? >> all right, kate. most football fans already emotionally invested in their favorite team or player. one company is taking it to the next level, turning athletes into stocks. securities, you can invest your money in. but would you? go to cnbc.com/vote and let us know. plus -- >> today's "power house" is the birthplace of filmmaker francis

ford coppola and has the country's most registered bowlers, and it's home to the first automatic coffee maker. can you name that city? today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today.

really big comeback for the dow jones industrial average. we were down at the low of the day, 131 points. that was just a couple of hours ago. we went into positive territory after the market digested the bad closes that we got in various european forces. now we are down about 20 points on the dow jones industrial average. and there's some big winners out there in today's trading session as well. home depot is one of them, moving up on the trading session. so we're going to keep track of all of this, ty, and keep you up to date as the bulls try and battle the bears down here on the floor of the nyse. over to you. >> it's been a very interesting couple of weeks, sue. let's go to a "power house." birthplace of filmmaker francis ford coppola. can you name the city? it is detroit. jenny lynn esterreicher is a

realtor with century 21 town & country. here's a snapshot. the median sale price, $167,000. inventory, about 19,000 properties. the local mls service says properties are on the market for an average of 40 days. now, we're going to go a little bit north to the suburb of rochester hills, specifically oakland township. some of the nicest suburbs in the country are in this area of michigan. about 45 minutes from downtown detroit. our first listing, jenny lynn, 4122 norwich court, $472,000. taxes, just $4,500. 5 beds, 4 1/2 baths, 3200 square feet of living space. man, you couldn't come close to that kind of space, jenny lynn, around new york. >> yeah, that's right. it's a beautiful area of oakland township. this is a 2004 built. it's got a three-car garage, finished walkout, five bedrooms. the fifth bedroom is actually in the basement with a full bath.

and it's got almost a half an acre. it's just a beautiful home. and for that price, it's unbelievable. >> wonderful combination of price, space and low taxes. talking to a jersey guy, that is perhaps best of all. second listing, let's move to 2261 north rochester road. it's $679,000. taxes, $6200. 4 beds, 3 1/2 baths. 4500 square feet of living space. tell us about it. >> now, this is magnificent. this is almost five acres. >> wow! >> and it has a pond. it's almost like a park setting. this is absolutely a gorgeous piece of property. in oakland township. it's got a finished walkout basement as well. and it has a four-car garage. actually, the fourth car is in the back with your own private workshop. it's a beautiful piece of property. and at almost five acres. it's unbelievable with the

price. >> that is big. no wonder, $679,000, that's for five acres. 2888 addison circle south, just recently sold, $1.1 million. that is below the list of 1.195. annual taxes here, a very modest $7600. i'm getting ill just seeing that. 4 bedrooms, 5 1/2 baths, nearly 5,000 square feet of living space. what makes this one special? >> now, this is a 2013 custom-built home. it's got vintage beams in the kitchen, gourmet kitchen, with subzero refrigerator, granite countertops. it also has a finished walkout basement with bar. it even has a really cute little craft room in the basement. and it's got all today's fixtures and this is almost on a half an acre as well. and in an area of oakland township, which is just surrounded by luxury home estate homes. >> that is very nice. jenny lynn, thank you very much

for taking us on a tour there of oakland township today where there are some nice places. >> no problem. >> sue. ty, we've got another "power house" to show you. check out 602 north roxbury drive in beverly hills, california. i love spanish architecture. it is the former residence of lucille ball and desi arnaz. it is listed by the agency at $6.9 million. it is a classic 1920s spanish style home. it has an oversized private yard, extensive two-level decks, a guest house. in total there are 7 bedrooms, 6 1/2 bathrooms. it is a gorgeous, gorgeous home. big sigh. all right. turning football players into stocks. what's that, you say? well, that's exactly what one company is doing. we'll talk to the man behind that idea coming up next. plus, we want to know, would you invest in a football player? yes or no? go to vote at cnbc.com/vote.

"power lunch" is back in two with the dow down 18 points. location. location. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made with ibm.

a day after tumbling ebola

fears, raymond james upgrading the stock from market perform from under perform. shares of constellation brands lower after missing second quarter sales estimates. despite my efforts. shares of directv rising. the digital entertainment provider striking a $12 billion deal to continue showing nfl games on sunday. sue? speaking of the nfl, the vikings play by packers tonight. go, pack. if you're a big football fan like i am, you are probably already invested emotionally in the sport, or in your team, or in your favorite player, perhaps. but there's one company that takes that a step further by turning athletes into stocks that you can invest your money in. buck french is the co-founder and ceo of fantechs. he joins me here at post 9. we want to know what you think. would you invest in a football player? go to cnbc.com/vote and weigh in. buck, it's great to have you here. welcome to post 9. tell me how basically this works. it sounds a lot like a tracking

stock. >> it is a tracking stock. we acquire the future cash flow streams both from on-field and off-field performance that's associated with a professional athlete, one-day entertainer. we acquire, in the case of, say, vernon davis, we bought 10% of that future cash flow stream for $43$4 million. >> so you give him the $4 million and you get 10% of his future cash flow. >> correct. >> it sounds good, but there are risks in every investment. >> sure. >> football's a very tough, violent sport sometimes. you've got the injury risk, and you've also got, as we know recently, off-field risk as well. >> sure. i mean, as you pointed out, every investment has risks associated with it, and it really comes down to the risk-adjusted return you're expecting out of that cash flow stream. for example, on the fantechs vernon davis offering, we've already paid out a 70 cent per share dividend within the first four months of the offering. so if you bought in the ipo price, that would be a 7% yield

off the $10 ipo share. >> how do you determine the valuation? you know, we're always talking down here, when they bring an ipo to market, the valuation of the company, where to determine the share price. how do you do that with an athlete? >> you know, it's basic discounted cash flow analysis. it's actually, at least from my perspective, simpler than what you all do here. >> i don't think so, but anyway. >> it's all done at gross. you know, really you have to understand, estimate out how long you believe a player has the opportunity to play in whatever sport they're playing. and then you can forecast out based on comparable analysis what the potential future contracts that that player could ultimately sign. >> what about liquidity. say i buy into aaron rodgers. who incidentally, for those of you who don't know, packer, and, you know, i hold my shares for a certain amount of time, and then i want to liquidate my shares or sell my shares. how liquid is the market? >> well, this is a new

marketplace, so it's not that liquid right now. the floats are also very -- are small relative to what you all deal with on the new york stock exchange. so liquidity, we believe has more and more issuance that the liquidity will increase. >> let's bring in jack brewer, our resident athlete turned financial analyst. what do you think? do you think it's a good one for athletes to do? >> from the athlete perspective, it's a great opportunity. given the fact that in the nfl, average careers are 3.2 years. and if you look at a case like vernon davis or e.j. manuel, these players got pretty good -- pretty fair valuations for their talent levels. i mean, right now e.j. manuel won't be starting this week, so i'm sure his stock value has pulled back some, but i think he's one of the better young quarterbacks in the national football league. i think that still has potential to run. from an athlete's perspective, i think it's more of an insurance policy more than anything, really.

>> yeah. jack, from your perspective of the athletes that you know so well out there might be considered for this type of ipo? >> definitely. i mean, there's some great athletes. can you imagine getting a megatron and be having the opportunity to buy into 10% of his future earnings? some of these athletes that are playing in the league now, if they stay healthy, which can also be insured, by the way, if they stay healthy, their earnings potential is huge. from an athlete's side, i think it's an opportunity to hedge yourself. now you're not taking on all the risk. you're passing on 10% of your future earnings risk on to investors, and i think it's incredible platform. >> who do you have, buck, on your list next? >> so we're currently in the road show offering period for the fantechs muhammed sanu offering which is a wide receiver for the cincinnati bengals, former rutgers grad. and then we also tifiled the s1 for the alshon jeffery offering.

alshon jeffery for the chicago bears. >> are you going to do other sports? tennis comes to mind, perhaps. >> no, absolutely. our goal is to sign athletes across the world of sports. and as i mentioned, actually go into the entertainment sector. >> best of luck. >> thank you. >> really interesting. appreciate it. jack, always good to see you. thanks for joining us. >> you, too, sue. thank you. let's lock in the vote. would you invest in a football player? let's take a look at the percentages. sorry about this, buck. 70% say no. 30% say yes. >> i'm an optimist. that means 30% will. >> that's right. that's right. and as you say, it's an emerging market. >> and that's what makes a market. >> indeed. thank you so much. all right. what's coming up on "street signs," you ask? lots. they're up at 2:00, right, bri? >> that's right, sue. thanks very much. warren buffett says the federal reserve means nothing to him when he picks stocks. so guess what? we're going to try to find stocks that could be good bets even without the fed. including one an analyst says could double from here.

why we strapped a brain wave monitor to julia boorstin's noggin. and a guy who says gold is going to move 45% soon. but which way? you've got to tune into "street signs" to find out. meantime, "power lunch" is back after the break. arian foster, get well. you're killing my fantasy team! we needed 30 new hires for our call center.

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all right. after being off triple didn'ts earlier this morning, the market clawed its way back into positive territory on all three of the major indices. the dow, the s&p and the nasdaq. it's dipped a little bit. the dow's now down 17 points. the s&p is down just a little bit more than 0.10%. the nasdaq remains in the green, not by much, but it's good enough for the bulls looking for a recovery in the nasdaq. transports are up about 0.5%. that's pleasing some who follow the dow theory which means when the transports go up, the dow jones industrial average gets support. the ten-year note, the yield is still holding at 2.41% on the trading session. a lot of parts of the market did get hit very hard because of oil this morning. there's the russell. it has turned positive and actually of the major indices, it is leading the way. it is up almost a full percent on the trading session. the oil market going in the opposite direction with both brent and west texas intermediate kind of mixed on

the day. west texas just moved positive, ty, but we still have brent down on the day. >> and we still have that jobs report coming out tomorrow. >> that's right. zl >> it will be interesting to see how stocks react over the next two hours because that will be the last chance to position ahead of that report. that does it for "power lunch." >> here come "street signs." see you tomorrow. warren buffett says buy the dip. he did and it may be helping because stocks are doing okay despite worries over, let's see, ebola, hong kong, european weakness and even isis. mandy, of that litany of problems we walked through, what seems to be worry number one down there? >> growth. you know, i was doing quite a bit of talking with traders. a lot of them were pointing to the fears about what is going on with growth. remember from the ecb, you had draghi making those comments this morning that it's possible that the recovery will not be as strong as expte