construction story, free cash flow generation story in 2015. private equity selling down. >> marathon, why do you like it? >> in u.s. exploration and production we are looking at leverage. this is a company that has low leverage and sold off assets and gotten $2.1 billion on its balance sheet as a result. >> thanks for being here. >> tyler over to you. halftime is over. "power lunch" and the second half of the trading day start right now. right now folks. thank you very much. volatile day on the street. big swings in the dow. triple digits higher earlier than swinging. big swings in oil, too. rallying earlier but now prices sinking again. energy stocks have taken a big beating with oil's plunge but the sector is up a little bit today. why this may be a big buying opportunity for you. the stocks that should be on your radar now.

a very tense hostage situation over in sydney, australia now at an end. more than 16 hours, loud explosions. there have been fatalities. a number in serious condition, just how vulnerable might u.s. targets be? let's check in with sue at the new york stock exchange. >> we will have that story shortly. that is one of the reasons why we have had such volatility in the markets today. everybody here watching the situation in australia. triple digits to the upside and triple digits to the red. this market trying to climb into positive territory with the dow down 28. nasdaq down 16. we are only down about 1.3 points in the s&p. >> we are dealing with the collateral effects, collateral damage associated with oil. the hot topic down here right now is not u.s. what is going on in russia. you can still trade russia even though the market is closed

there. look at the etf for russia. symbol is rsx down 10%. this is an intraday. this is today. we are still sitting towards the lows of the day. this is all about oil and the big question is how are the russians going to pay for their imports that they have? look at this here. crude oil is one-third of all export revenues, 50% of revenues is crude oil petroleum products. they are massive importers of computers, cars, meat. how are they going to pay for that with oil down 40%. >> that's why the market, the russian market is freaking out a little bit because they can't figure out how to do it and they are concerned about that. let me show you collateral effects. brent moving south after the u.s. stock market opened. look what happened to germany, sue. straight down as brent crude kept dropping. that is an ugly close.

2.7%. we are seeing collateral. a basket of natural resources stocks. look what happened here in the last few days. it practically has been cut in half. $25 a few weeks ago now $13 here. finally i want to note uncertainty about the collateral damage around oil creating cerns about the market overall. you have people lightening up on exploration. >> let's go to dominic chu. he has a "market flash" for us. >> coach shares bouncing back because coca-cola ceo is quote incable of leading coke's turn around and should be replaced. winter green says coca-cola shares are deeply discounted. we have reached out to coca-cola for a comment. we are waiting to hear back from them. we will bring you that comment

if they have one. coca-cola shares are off session lows about flat so far today. back over to you, sue. let's put up market numbers for you. it has been such an interesting day down here. as we get closer to the end of the year recall kenny said the volatility is going to pick up. the vix spike this morning we see the dow jones industrial average down just over 0.1%. the volatility is presenting opportunities. for those of you who are long term investors you might want to put your shopping list together. let's talk more about that with ron sloane, cio at invest co. good to have you here, guys. thanks for joining me. i am going to start with you. what are you doing in this market as you start to wind down through the end of the year because the major expectation is that perhaps interest rates start to edge up on the fed funds rate next year.

how are you playing it? >> well, sue, i think every day people trying to lose weight. we have a shopping list with valuations of businesses we like to own. so when you get volatility like you are seeing here in the last week or so we try to take advantage of that and put some of the cash we had to work hopefully to track the prices. it has been an interesting year so far. >> what areas of the market do you like? >> well, sue, there is a couple of names internationally that i like. one was ipo from last year, royal mail group really the kind of franchise mail delivery system in the uk. they have privatized their mail system there. first class letter costs $1 in the uk versus 49 cents in the u.s. i think they have a model that we might emulate as far as recos

with u.s. postal service. interesting business with 5% dividend. you have to pay withholding, nonresident withholding tax. and trades are very cheap multiple. we think it is probably under valued by 30%. >> ron, are you overweighting equities at this point going into the end of the year? what do you think 2015 is going to look like in an environment where we may see more volatility? we certainly saw it today. we may see the fed move up on interest rates. >> good morning, sue. i think we should embrace the fed's move. i think it's overdue. the economy is doing just fine. i love the economy. i think we are seeing strength in all the right areas, durable goods, industrial production, manufacturing, employment. i think the risk actually 1is te fed could move sooner rather than later. i think you want to look at

economically sensitive companies because that is where the earnings growth is going to come from. that is where the upside margin and earnings leverage is going to be. this is going to be an earnings led market i think next year rather than valuation. >> gentlemen, we have breaking news. thank you very much. have a good end of year. thank you very much. that breaking news pertains to the story so many of us have been watching very closely all morning long, that hostage standoff in the heart of sydney, australia. it has ended with multiple fatalities. mandy, you were just telling me that this was a street on which you used it work. >> that's absolutely right. the old cnbc studios were right there. now the new one is just down the road. i know the area very well. it is a tragic ending to what we were hoping would be a peaceful

resolution. let me give you details. police stormed the lindt cafe after a shot was fired. there were two groups of police men and they were on either side of the cafe. they stormed the cafe when they heard the shots. it follows a period where six hostages did escape. we are learning that there are three dead, one is the gunman and the others hostages. one was apparently shot by the gunman. there are reports of up to five people injured, as well. 16 plus hours was a long scene to begin at 9:45 a.m. australian time, very busy time on a monday morning leading up to christmas. a lot of people going about their business. very visible attention grabbing spot if you are thinking about where a gunman who wanted to make his cause well known you

think where he wanted to go he would go right in the heart of sizny. he is reportedly an extremest muslim cleric. aged 50, iranian refugee who came to australia back in 1996. australian muslim groups immediately come out and denounced the attack and a number of them call it a criminal act because they do not want to be associated with this kind of one off extremism. here is what else we know about shiekh haron. he has a record. police know him well. he was sentenced to 300 hours of community service after being charged with sending hate mail. saying the soldiers were baby killers. he was recently accused of indecent sexual assault and the accessory to the brutal murder of his ex-wife. at one point during the siege he gave a flag to a number of

hostag hostages. he also has a website. i tried to click on his website. it is being taken down for obvious reasons. it is a very graphic website. he says this pen is my gun. peace is definitely not what this ended in. >> thank you very much. we will, of course, be following this story as developments unfold for the rest of the day here on the east coast. let's bring in managing director at quillium, a counter extremism think tank in london, a member of the uk's task force that looked at countering extremism in response to the terrorist bombings in london. welcome. good to have you with us. what do you make of this latest

incident in australia? and how vulnerable are countries and so-called soft targets to attacks like these? >> first of all, i think it's just the beginning for australia and what could well be a number of attempts at individuals who see [ inaudible ]s here we have somebody who used to be from the shi'a transitions who converted to a jihaddy mentality and believes that his actions were justified and the only way that he could fight the so-called jihad from his perspective was take these hostages. he clearly wanted to do something. he clearly wanted something otherwise this particular pattern wasn't normal. usually when people carry out these attacks in the west they tend to shoot first, kill first

and then worry about how they are captured or killed afterwards. this guy in particular he was somebody who was troubled, sick, he clearly wanted something. i think the police were left with little option other than to go in when he started killing hostages. this is something that i think is indicative of what we have coming. >> why specifically do you say that? you said that with respect to australia most particularly but i assume that you are extending that sort of warning globally to countries like united states, great britain and beyond. >> this person in particular did not have any direct links to isil. however, what he did have was a link to the ideology that allows

him to kill other people to effect political change. this is something that we have been warning about for years now. australia in particular has the worst problem of foreign fighters in the uk per capita. i think that australia in particular has some serious issues to contend especially when they haven't had to deal with these issues in the past. in the uk we have had a number of years to deal with these issues. we have been foiling plots along the way. i think this is a warning for the rest of the world. i think we see we countries that either had plots or foiled plots and there is more to come. >> on that note a sobering one, we thank you for your contribution today. managing director at a counter

extremism think tank in london. >> we have had a lot of volatility in the stock market, also a see saw day for oil. prices rallied after hitting five year lows, now prices under pressure again. where do we go from here with ice brent down 1% and west texas intermediate down 2.5%? is this the bottom? let's find out. joining us jeff grossman, president of brg brokerage. you predicted correctly on our program last week or the week before that you thought oil had more to go to the down side. there are people down here starting to talk about a bottoming formation in oil. do you see that or not? >> i have to say it the way it looks right now that mid 55 which is a little bit of a surprise to me seems to be something that we can pretty much hope will hold for a while. as far as rally ability it is getting tougher and tougher this market to hold any sort of rally. that is the thing that is a

little concerning. i think if nothing else this market will need help somewhere from either a weaker dollar, stronger stock market, maybe even some cold weather to give it legs on the upside. >> what do you think major influence will be? is it the weather? last time you thought weather was the major force. is it still the major force? >> for the next six to eight weeks you have to be careful about as far as temperature we will have in the northeast. that draws down our heating oil and that will if nothing else draw up the crude oil along with it. >> how are you trading it? >> very carefully. >> i think that is a given. >> if nothing else i still rather buy dips here more so than anything. i think there is a real correction here in the next couple of weeks that could be $5 to $7 in the upside. everything one is so sure we are going down. >> very interesting the play.

thanks, jeff, appreciate it very much. >> as oil continues to fall we mentioned it earlier so does the currency of a country that depends so much on oil. that is russia. following the most since the 1998 russian financial crisis. passing ukraine as the world's worst performing currency of 2014. michelle caruso-cabrera with more on what is behind that plunge. >> we should just keep that chart up. when it came down the stairs it was trading at $64. now it is at $65. now it looks like it is approaching $66. the single largest decline for the russian ruble since 1998. in 1998 russia defaulted and set up a whole ripple effect. very large hedge funds like $5 billion. back then considered very big and led to all kinds of ripple effects within the market.

oil, remember it went below 60 when it comes to brent and russia is a midger producer. also, the big oil producer put up a ton of bonds yesterday. everybody is wondering what they are going to do with them. are they going to take all of those and try to buy dollars which would collapse the market even more? there is fear there, as well. it's just been an incredible move. there is now increasing talks. one member of the government there. the legislator is trying to pass the bill that says if you are an exporter in russia you must sell 50% of the dollars you bring into the country. so really the ripple effects continue here even as we saw oil rebound a little bit the ruble did not. >> it absolutely did not. watching it closely. thank you. folks, despite the continued

drop in oil the energy sector has been rallying but giving much of its gains back just lately. let's take a look at s&p energy and there you see the move from june until now. there are a couple of stocks involved that compared with the move in oil. energy the worst performing sector this morning. exxon mobil upgraded today. exxon stock has dropped as you see there along with oil since the beginning of june but not by as much as brent crude has by a long shot. dominic chu taking a look at the sector and how much market value has evaporated. >> some of the numbers are staggering. we know because if you have been watching cnbc you realize how much crude has been sliding. let's put it in perspective here. wti crude off by another 2.5% today. let's take a look at how bad it has gotten. look at this.

wti crude down about 40% since hitting its highs in june of this year. june 20. what that has led to is 60% of stocks in the s&p 500 that are part of the energy sector are now down by at least 30%. if you look at this, 86% of stocks in the s&p 500 energy sector are down over 10% in the last month. what does this all mean in terms of the dollar value shaved off of energy stocks? take a look at this. s&p capital iq has crunched the numbers and said basically at the end of last quarter the energy sector had about 1.69, $1.7 trillion worth of market value. now as of friday's close about $1.43 trillion meaning that just this quarter we have seen the s&p 500 energy sector lose about $265 billion in market value.

>> that is a stunning number. that is bigger than the market values of an awful -- >> many of these companies. >> by a long shot. >> makes you wonder whether now is the time to start nibbling. >> a lot of smart people trying to figure that out right now. to housing now and home builder sentiment taking a dip. live in washington, d.c. what is behind it? >> after a four point jump in november home builder sentiment fell one point to 157. anything above 50 is positive. of the index's three components current sales predictions fell. future sales expectations down and potential buyer traffic held steady. that is mired in negative territory. single family housing starts are still well below normal even as

the builder confidence improves more dramatically the two generally travel in tandem. we will get the housing starts numbers tomorrow for november. part of the optimism for the builders may be latest drop in mortgage rates. lenders telling me the best borrowers looking at 3.85%. of course we expect that to change next year. i remember standing here saying the exact same thing last year and we were wrong. we will see what happens with mortgage rates. >> don't go on that deck back there. there is no railing around it. be safe. let's hit the housing stock board. toll brothers, pulte. d.r. horton all in the red today. biggest hits being suffered at this hour by hoynanian. >> we had a sell off on the street earlier. the dow was up triple digits to begin the trading session.

now it is in the red. it went from triple digit loss to down about 52. we will talk about what traders here on the floor are saying about key levels that you want to watch. plus, we are koupting down to our big interview with bill gross, his first live tv interview since he left pem co. we are back in two. (vo) watching. waiting.

for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

shares of pet smart soaring to be bought for more than $8 billion. the buyer is a group led by bc partners. biggest private equity deal of the year so far. >> upgrade forrerical raised to overweight from equal weight at morgan stanley saying oracle is poised to benefit from accelerating cloud app's growth. microsoft's bing search engine dropped from the facebook's website following the introduction of a new search tool by that social networking giant. there you see the respective stocks inching just a little bit lower. let's get back to the markets because the dow is clawing its way back. we are down about 50 points. joining me at post nine cnbc market analyst.

and they have now coined the phrase the kenny and benny show. >> benny and kenny. >> you get first billings. >> all right. no fighting on the set. you were saying something interesting to me that was not a sense of panic when the volatility kicked in this morning. >> absolutely not. i think what is important for people to understand is that is actually key because if there was a sense of panic or a sense of more pressure it would have been much more of a capitulation feel and we don't have that yet. >> we are going into the end of the year where we have some fund managers under performing and the grasp for the last bit of profit that they can get. is this what we are going to see into the end of the year? >> i think volatility will continue right into december 31, probably into the first week of january. 200 point swings will be nothing. i see that as a problem that we didn't have capitulation because it is something you are looking for to find the bottom.

i think what we saw coming in as you mentioned earlier coming in breaking through technical levels. we saw heavy selling -- that being said what i'm seeing is a lot of funds raising money. i don't see much of it going to work today. the energy sector we see a little dipping of the toe in some of the energy names which we think is counter intuitive it what is going on with crude itself. we say we add a little more on the stocks that have been crushed. i say we are in the need of a rally the day after christmas to see what happens with those fund managers. >> i think that is exactly right. the fact you are starting to see action on those energy names speaks to the fact that they are on sale. >> gentlemen, benny, kenny, it will stick.

the count down to christmas continues. >> only nine days to go. not much time to get your holiday shopping done. we take a look at which retailers are seeing the most traffic this year. microsoft's general council will join john fortt live at the nasdaq. he is challenging the u.s. government on the need to reform digital privacy laws. "power lunch" returns in two. take on the challenge of trading options and futures... with the easy-to-use suite of trading tools... at optionsxpress by charles schwab. and we'll give you a one hundred fifty dollar

amazon.com gift card when you open an account. if you're looking for a trade idea, start at the idea hub... where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. streaming charts give you the real-time quotes and customized views of the market that can help you make your final decision. and when you're ready to make it happen, walk limit helps you save time by searching for the most favorable price. find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. for a one hundred fifty dollar amazon.com gift card when you open an account, call 1-888-980-5745 today. optionsxpress by charles schwab. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad.

military families are uniquely thankful for many things, the legacy of usaa auto insurance could 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. you're down with crestor. yes! when diet and exercise aren't enough, adding crestor lowers bad cholesterol up to 55%. crestor is not for people with liver disease, or women who are nursing, pregnant, or may become pregnant. tell your doctor all medicines you take. call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. these could be signs of serious side effects. i'm down with crestor! make your move. ask your doctor about crestor. don't panic but there are

nine days, ten hours until christmas and it is hanukkah eve, as well. have you finished your holiday shopping yet? joining us is liz dunn, founder and ceo giving us the low down. you were checking out the stores in the malls. were they a little busier than the last time we talked to you? >> still it doesn't seem like the crowds are really out. it is a different story the high end mall versus low end mall. the low end malls really aren't busy at all. the higher end malls did take me a little while to find parking and certainly some shopping going on there. >> what stores, you talk about high end versus low end. what stores on the higher end of things do you think will do well this year? >> i think tiffany does well. macy's plays high end and more middle class, as well. i think that store is doing phenomenally well. >> on the low end who is not doing well?

>> i am sort of cautious on kohl's. i think the teen retailers are struggling. what's challenging right now is you have some teen retailers going bankrupt so you are getting liquidation sales. that is a pressure for all retailers. >> how important do you think price point is and promotions and the 20% off for the first five hours that they are open? is that key this year? it has been in the past. i don't know if it is this year. >> it is key for retailers that don't have the must-have items. sneakers are not on sale. the kids that want the sneakers know what they want and they are willing to pay it. certainly some consumer electronics. you are seeing lots of full price. for apparel a lot of that is happening at a price point. >> uggs never go on sale. what is it about that? just put the uggs on sale. help me. the gold market is closing.

let's get you caught up on where things stand on the gold market and the silver, copper, palladium and platinum. gold is down about 1.25%. we did have volatility in the other medals based on movement in the stock market and the poor asian and european close. we have losses across the board with palladium and platinum leading the way to the down side. >> rick santelli in chicago tracking the action at the cme. >> indeed crude oil is center of attention and hard to define how much. one and two-day of tens shows you we continue to stabilize just under 2.10 in terms of yield. we continue to hover right around the lowest yield closing since about mid 2013. if you look at a two-day of dax this is interesting. it seems as though even with influence of oil it was really when it traded under its lows friday that it accelerated to the down side and pound versus

dollar look at this long term chart. why is it important? because we are hovering so close to the lowest levels in 15 months at 156.35. we all know speeches about how the uk most likely is going to be in the same fed direction, monetary policy as the u.s. tyler, back to you. >> thank you very much, rick. first live television interview since leaving pimco. the full interview basically an hour away on "street signs." "street signs" starts in about 26 minutes. brian is going to stop by and join us for a preview after this. look, i love the way he controls abthe lightsbutler. and unlocks the door when i forget my keys... it's just that... i feel like he's always watching us.

yes, that is why we should use wink. ...look, it can monitor and manage our house but it won't start to develop human emotions. hey buddy. control your entire home with one simple app introducing wink it's like a robot butler, but not as awkward. i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. but what if you could see more of what you wanted to know? 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. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

welcome back. we are counting down. we are 52 minutes now to bill gross's first television interview since he left pimco. brian sullivan is on site in denver. tell us what you expect mr. gross to talk about and say.

>> well, really we are going to do a two parter here. i think the first part will talk about him and pimco and the departure and what prompted him to leave, why start again. the second part will be about investing, about the fed. we have the fed meeting on wednesday. does he expect the fed to raise rates? what would he do differently? it is interesting some of the bets that people rided him for last year have proven to be money good. maybe bill can take a victory lap. we can break it up in two sections and try to get inside the guy, as well. he is a colorful figure. >> we all know him from his appearances on cnbc. i have to imagine knowing portfolio managers over the years as i have that he must feel very liberated to now have a new platform, a smaller platform with fresh cash that he can put to work in his best ideas. in other words, he does not have a lot of legacy positions as he

did when he was running $290 billion over at pimco. >> i wonder if it is kind of like the oil tanker syndrome where the money pile was so big where you couldn't move the needle either way. the ship is so hard to turn. he has a couple billion now. here is probably why it is interesting to bill is that kind of like you he is an independently wealthy guy. he is financially secure for the rest of his life. when you have that freedom you can do a little more probably crazy stuff but certainly can be a little more individual than you could be if you are a little more beholdened to say the corporation. >> i think that is exactly right. he has more than enough capital to do what he wants. many would ask why start over? not that he is not a youthful 70 year old but he is a 70 year old. >> listen, we had a chance to catch up. he is here.

we were talking before the interview coming up in 50 minutes time. we got the ceo of janus capital. the guy who hired bill used to work and for bill as chief operating officer of pimco. why start over? 70 years old? billionaire, i think he has a competitive fire. i know a little bit about how he will answer that question. it might surprise you. i don't have a lot of set plan questions. we will try to make it just a conversation and talk about the fed, as well. >> we will all be watching. brian's interview with bill gross in about 50 minutes time. >> look forward to that very much. very volatile day down here on the floor. bob pisani is back with me at post nine. it has calmed down considerably. the vix spiked but now that is moving back down. >> about the collateral effects

of the oil drop. brent as well as west texas started moving to the down side. russia is the focus of all of this. how does russia pay for imports? almost half of export revenue is oil-related. that is a big issue. here is individual stocks that trade right here. all of them down. this is just on a one-day trade here. commodity countries are also weak again. you can see brazil, peru, south africa all down 1.5% to 3%. the odd thing about this on a day when oil is moving the markets the oil stocks themselves big oil in general is up today. chevron just went negative but has been positive most of the day. here is about tomorrow. one thing about the fomc meeting. starts tomorrow. there is a lot of trader lure about how to trade that and a lot of talk about that. i want to show something about

our partners that sort of indicates that we have a positive trade generally on the date of tomorrow, the day before the s&p trades positive 65% of the time. it doesn't trade up that much. it is pretty minimal. the biggest gainer is home builders up 60% of the time. the average gain there is 2.9%. >> 29%? >> no. it does -- you see modest gains overall there. the important thing is we do get gains on the day before the fed meeting. it is pretty consistent but not big gains. >> a gain none theless. let's go to the nasdaq. kate rogers is there following some of the movers for us. >> there she is. hey, kate. >> i'm not sure if kate can hear me. why don't you come back to me and we will take a look at markets for you at this point because we are down 58% on the dow and the positive turn

because of the lower oil price up 39%. thank you very much. in this digital age privacy is a major concern especially since major hacks seem to be happening much more often. microsoft general counsel brad smith will join john fortt next. mr. smith challenging the u.s. government on the need to reform digital privacy laws. let's take a look at the dow heat map. there are about five stocks that are higher led by boeing, home depot, united tech. "power lunch" returns in two minutes. ♪ music

...the getaway vehicle! for all the confidence you need. td ameritrade. you got this. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates.

makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. microsoft challenging the u.s. government saying reform is necessary at this point -- let's go to australia. a live news conference happening

right now. [ inaudible ]. >> we must go about our usual business. we must work. i say to everyone today we must come together like never before. we are stronger together. we will get through this. we will get through this. the events that we have seen have shaken us but they do not dampen our spirit. >> good morning, thank you. ladies and gentlemen, i would like to confirm [ inaudible ]

there is a thorough investigation. we need to find out what has happened here and what has happened inside that cafe. it is not time to speculate or develop theories. we will work through the facts and advise you as soon as we can. we need to think about the hostages. those that are caught up in the ordeal i can only imagine the terror that they have been through. they are very brave people in many cases were just buying a cup of coffee and got caught up. the families and not knowing what was happening to their loved ones.

it is a pressing time for these families. this was an isolated incident. it is an isolated incident. do not let this sort of incident bring about loss of confidence about working and visiting in our city. it was the act of an individual. this should never destroy or change the way of our life. as the premiere has indicated this will not change things we hold dear in this country. right now i ask members of the community to come together. this is exactly what we should be doing at this time. it is not about finding reasons to divide communities but finding ways to heal the wounds and help everyone grow stronger because we want a stronger australia. i, too, would like to commend the work of our police. while everyone second guesses to what has occurred in the last hours they are the ones that had

to make the decision. our police had to deal with this incident. it was tough exacting work. many hours whether on point or a part of the team to deal with the situation. i want to point out they have saved lives. they have saved many lives. and to those men and women all involved we thank you. as your commissioner i thank you but as a community i am sure australia thanks you. thank you that you are there and prepared to do this, to put your life on the line to keep us safe is a very, very honorable cause. for that our gratitude goes out to you. i can indicate to you that we have accounted for at this stage 17 hostages including the five that escaped yesterday and a number that have been caught up, some with traumatic injury and some with medical conditions. we have two deceased among the

hostages and six that were uninjured. we also have a lone gunman who has been shot and killed. we have a police officer who has been injured as a result of a gun shot wound to the face. he is in good condition. he is certainly being assessed and will be remaining in hospital for some time, not too long we hope but he is well and grateful to be alive. let me assure you. that, ladies and gentlemen, is where i will hand it over to you for questions. that's a decision made by the teams responsible. what we don't do is compete with those who make the call. they believed at that time if they didn't enter there would have been many lives lost. >> why is that? >> well, i think events

unfolding inside the premises. >> i understand there was a number of gun shots that were heard which caused officers to move into the emergency action plan. >> now is not the time to second guess this. we need to get it right. we have talked -- there is much to be done.

>> the families being caught up in this and we have two that have died as a result of actions inside the cafe and we are trying to make sure that we are there to comfort those families. >> can you repeat that, please? they are part of a hostage plan. they are part of this investigation. we need to talk to them. they are being looked after in terms of psychological needs. we will work with them but they have been well cared for. >> family are certainly involved in this process. as a result of exchange of gun fire inside that premises police moved in. at this stage we have a number of people that are injured and certainly we are working through

that. >> what was the last -- >> at this stage we are not going to enter into that. >> are you concerned that the [ inaudible ]. >> i'm concerned that there was a vicious horrendous attack that has taken place at the heart of our city. there are many questions that will come in coming hours, days and weeks. what i can assure you is i will

answer everyone of them. we will get to the bottom of events and do everything possible. >> at this stage that particular premises has been secured and at this stage we have no -- >> [ inaudible ]. >> at this stage rather than go into that we believed no one had been injured. that changed. we changed our take.

>> rather than give you information for the sake of giving you information we want to make sure it is accurate. when it is accurate we will release. >> thank you. >> thank you. thank you very much. that was the police commissioner of the new south wales police force commenting on the action resulted in the slaying of gunman. two of the hostages of apparently roughly 17 who were in that lindt cafe in australia

in sydney earlier today. let's take a look at the s&p 500 heat map where you see most of the stocks are in the red. we will talk about that and more when we come back in two minutes.

dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could 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.

this is a story making rounds about a 17-year-old whiz kid who allegedly made $72 million playing the market while still a senior in high school in new york city. that story is being widely disputed at this hour. i can tell you that i just spoke with the gentleman right here at cnbc headquarters. his name is mohammed islam here with his investing partner and told me the $72 million figure is not true. they do not know where it came from. they told me and they say the intention is not what we expected. we never wanted the hype. this was about friends trying to make something exciting together. they were, in fact, scheduled to appear on the halftime show earlier but then changed their minds once they got out here and thought about the hype that surrounded the story and in the

preinterview process with some of our producers decided not to appear on cnbc. they say we expected a regular article about what we hope to do in our career, the way we were portrayed is not who we are referring to a new york magazine article that mentioned him. that is the story at this hour. bill gross coming up right now with brian and the "street signs" gang. back to you. >> interesting tale. that will do it for this edition of "power lunch." "street signs" does start right now. we'll see you tomorrow. welcome to "street signs." live in denver, colorado with the headquarters of janus capital group. coming up the first exclusive interview with bill on television since he left pimco back on september 26, a friday morning that rocked the st