in? >> coal industry is in a bad place. natural gas is around 2.60. a name to look at console energy. it will be a survivor and a winner. >> i got to add one. i'll go china banks. we haven't talked china. we had a correction a little bit. but we're looking at the china banks. the market is going on fire. i would go there. >> see you soon. that does it for us. "power" is next. >> halftime is over and "power lunch" and second half of the trading day starts now. >> good afternoon. the warnings have been rolling in and now rates are rising. >> so what do you do now? advice straight ahead. the imf said what to the fed? the international monetary fund is weighing in on u.s. monetary policy giving janet yellen advice. >> what the frack? a new report on what fracking does to nearby drinking water.

>> but we do begin what's happening in the bond market. boy, there's a lot there happening. this morning the ten year touched its highest level in seven months. the yield on the ten year is sitting at 2.23%. yields came off those highs after the imf urged the fed to wait until next year before raising rates. we'll bring you more on that in just a minute. >> steve liesman will bring in the man at the imf behind that warning to the fed in 25 minutes. 's more now on statement, those plus more on why the fed isn't raising rates despite what some would argue is an improving economic picture. >> reporter: the international monetary fund not mincing any words in urging the federal reserve to hold off hiking interest rates until the first half of 2016. in its annual review of the united states it said the fed should wait until wages and inflation start to rise. >> muted inflation pressures suggest that interest rate hike

can wait a little and that such interest rate hike would be better off in 2016. >> reporter: the comment not entirely at odds with remarks from fed officials in past days. governor brainard urged caution in rate hikes. and the fed governor said the economy lost momentum. he said he was uncertain whether the weakness is temporary but did say there are more questions about the economy now than there were last time. fed officials said they are looking at two criteria whether the job market is improving and inflation is moving back to 2% target. but there's another criteria. officials wait to see if the economy can handle normalization or consistent march higher rates towards 3% or 4%. so wait a quarter and wait. like a plane inspector who

doesn't certify the plane can fly at 5,000 feet can it handle cruising altitude of 30,000 feet. the fed is not judging whether it can handle liftoff can it handle adjustment. staying too long for too low could be a problem. >> we'll see you again in 20 minutes four live interview with the imf u.s. mission chief nigel chalk. >> great to see you guys. kenny, i think it was the words of jon najarian that debt markets had to get used to an era of volatility of low interest rates. what does this mean? >> the volatility and he said it and draggy said it yesterday. we should get used to

volatility. the bond market like the equity market is overvalued if rates start to rise and so investors are going to have to reprice the risk. so, therefore, it makes perfect since we'll see volatility and makes perfect since we'll see it in the bond market and equity market and can you feel it. you can almost feel it today. it's looking for that catalyst. it wants to make a move and looking for a reason to do that. >> what do you think of this? kenny says it makes perfect sense. it suggests a level he's not worried. would you be. >> i would be concerned where we are right now. we're testing the 2099 level. that was a low on tuesday in the s&p. that was the low this morning. so if we can successfully hold here maybe we can build something out it. if they break then we have to look at a few new things. i would suggest the viewers also watch how the ten year responds to more of what we're hearing from the imf. if they can bring rates back down to 2265 on the ten year we

will have to erase everything that happened with mario draghi. we're on the verge of some very interesting moves. >> kenny, i know you're not an economist. what did you make of what the imf was saying to the fed? do you agree? >> listen first of all i don't think rates are going of the year. it's not happening in june or september. i hear what she was saying. i was surprised here we have christine lagarde trying to tell our federal reserve what to do and how to manage our own economy. i hear you, she's concerned about a lot of issues she's concerned about global growth she's concerned about greece what does it mean for the eurozone and what does it mean if the united states raises rates. i get it. i think maybe by most accounts she probably you know overstepped the bounds in trying to tell us how to manage our own economy. it will be very interesting to see over the next -- next week when the fed comments ever comes out with their minutes what their think cigarette and what they say.

>> before we get next week we have the big payroll numbers to get through. how do you think the action will be in trading for the rest of today and tomorrow with payrolls being kept in mind? >> the balance of today will depend on whether we can hold and defend those lows that i spoke about earlier. tomorrow it will be -- you're going to have opec. that won't matter. but a distraction. people will think about it. then the nonfarm payrolls. most of the people are thinking 215, 220, i'm hearing whispering numbers under 200. we could look for a lot of volatility tomorrow, maybe even more than on a normal nonfarm payroll day. >> it's interesting on the other side i'm hearing people suggest the nonfarm payroll will have a three in front of it which will surprise to the upside which i can't see how that will happen but it will be very interesting. >> if there's a three what will stocks do? >> if there's a three handle then you have the argument once again and the market takes a push lower.

>> okay. we'll be watching. thanks guys. check in with you later. >> the sec has filed a lawsuit over an alleged fake offer to buy avon eamon javers. >> reporter: the company that doesn't exist was planning to buy avon. that sent avon shares into the stratosphere momentarily until it was figured out it was a hoax. the sec filed a complaint in federal court saying they think they know who did it. the sec pointing its finger at a 37-year-old bulgarian who lives in bulgaria. that's not established in this document. the sec saying he or others working with him attempted to manipulate prices of three stocks with false offers or press releases. they are saying it just wasn't this avon incident he was

involved with. they are saying the 2015 offer for avon 2014 false press release on tower group stock and in 2012 an allegedly false offer for rocky mountain chocolate fact together, all of those done the sec is saying by people working with this man based on their analysis forensic analysis of the trading and ip addresses of the computers where these documents came from. what strikes me in look through this complaint that the sec has just filed in open court is just how little money he made in these transactions. according to the complaint in the avon trade alone, he did sell but he only made $4,879 as his gain despite all the ho-ha about the deal. on the to your group trade he made about $23,368. rocky mountain going back to 2012 he made no money at all because he was unable to sell.

he apparently filed the document or somebody working with him filed the document at 4:28 p.m. aftermarket closed. that way the market was able to correct itself and figure it all out. he did not make any money on that one. >> what do they do? do they go find him? >> that's one of the questions. we're sitting hearing doing research whether bulgaria will extradite. you imagine there's some pressure from u.s. authorities with the bulgarian government to go get him but that's a legal thicket and diplomatic thicket. >> thanks very much. stocks are at session low. >> reporter: we'll look at shares of navistar international down 9% hitting a fresh two year low. second quarter revenue fell 2%. despite the miss company says cost-cutting initiatives help

minimize losses which were narrower than analysts expected. shares down 9%. back to you. >> rick perry the former governor of texas to no one's surprise announcing today that he will run yet again for the presidency of the united states. mr. perry, as you may remember a very successful business oriented governor of texas who ended his term under an indictment that he maintains is politically motivated. to sue herrera for some breaking news. >> reporter: from the imf the international monetary fund. the imf saying greek authorities have informed the fund that they plan to bundle greece's four june payments in to one. that's now due on june 30th. so greece wants to bundle its four june payments in to one. that payment now would be due on june 30th according to the imf. we'll see whether or not there's more news under that.

but there was an executive board decision that took place in the 1970s that allowed country nobs ask to bundle together multiple principle payments falling due in one calendar month. they couldn't take a june payment and july payment and bundle it. only bundle those payments due in a particular month and that's june. >> there was a payment that was supposed to be due tomorrow. the market not liking this apparently, as stocks move a little bit lower on the news you just reported. >> right. absolutely. >> thanks. we're gearing up for a big opec meeting in vienna. here are three key things to watch. will opec stay the course with its current strategy of ramping up production. number two what is the future much saudi's oil minister. and will three, opec reinstate indonesia as a full member? robby diamond is president and ceo of securing america's future energy known as safe. he's in vienna for us. mr. diamond, welcome.

good to have you with us. it feels to me as though oil prices have gone beyond opec's control control. do you agree? >> i think we see a clumsy cartel at the moment. it's suiting i'm standing in front of the palace a great empire from the 1500 to 1800s. where are they today no, where. real question on everyone's mind is opec empire of peck doomed for the same future. what we see now is a struggle between the producers and consumers, actually the shale producers in the united states and opec and waiting each other out and we're the victims of this game of chicken. >> victims or beneficiaries? oil prices are way down low because production is way up high. >> yeah. i'm thinking of course it's good for our oil companies and

good for our balance of payments and that's great and we should continue to produce. at the same time i'm thinking about the entire broader economy, our geopolitics of the world. oil prices and volatility is really the threat. volatility when oil prices jump up and down businesses are unable to make the investments or they lose their investments, not knowing, even producers today. we haven't seen it because banks have been willing to give them the money. weather we due for some companies going bankrupt or being bought by other players. volatility is bad and that's what we see in this market. >> thank you very much. robby's organization safe will award prize money in a special contest that makes america for energy secure. cnbc will profile the winners with the best ideas later this summer and for information you can go to secureenergy.org. >> the bird flu is having a huge

economic impact. morgan brennan has the story. >> egg prices are now at record levels. here's the bad news. it may actually get worse. what you need to know about bird flu and what it will mean for your breakfast. all of that when "power lunch" returns. stay tuned. male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

>> cyber security firm fire eye

partnering with visa to prevent hacking consumer payment data. shares of fire eye are soaring more than 50% this year although they are only up by .4%. a shares of ge are mildly lower today. dish network and t-mobile reportedly in talks to merge. both of those stocks you see there are positive on the news with dish up by 4.7% t-mobile up by 3.8. bird flu having a huge economic impact. consumers starting to feel the pinch and pain. morgan brennan has the story. >> this sal about eggs. we got more than 45 million birds have been infected by bird flu. a majority of those, 35 million are egg laying hence. 12% of the layer hence in the u.s. are being destroyed and

iowa state university's egg center calls the situation unchartered waters. it sent egg prices to record levels. >> the first impacts we've seen on the egg product side because that's where most of the production has been impacted. they have been buying shell eggs. >> that's pushed the wholesale price of a dozen midwest large eggs what you and i buy up 120% over the past six weeks. across the country grocery stores which tend to slob to adjust price tags on things like eggs are beginning to post notices. take a look at this one about higher prices due to the national egg short skrag. restaurants are also feeling the pain as well. whatta burger curbed and mcdonald's confirmed one of its suppliers were hit. contingency plans are avoiding some disruptions.

fda approved pasturized egg products to be imported from the netherlands. don't expect this issue to go away any time soon because more bird the flu cases keep on coming. for some of these large facilities it will take them up to a year to start producing eggs again. >> mostly centralized in the midwest. have you noticed a difference >> i purchased eggs myself a couple of days ago and i noticed my egg prices were higher and in fact some of the pictures we pulled from different grocery stores putting up notices about higher eggs are in the new jersey/new york area. we're seeing the worst impact in the midwest but grocery stores across the country -- >> you buy jumbos or regular large >> regular large. >> maybe this is the reason for telegraph shortage something you don't see every day. a very large scary rat snake

snuck into a kitchen through a spice cabinet and started feasting on a near bay basket of eggs. there is the snake and brown eggs. this went down in charlotte, north carolina where rat snakes are, we're told fairly common. after recording the horrifying event the brave homeowners let the intruding serpent finish its lunch and finish it. rat snakes are not venomous. nobody was hurt other than tegs. emotionally they are traumatized beyond believe. >> you call that a snake? that's not a snake. no way i would have stuck around to film it. i would have been out there was. racehorse american pharaoh is going for the triple crown this saturday. with all the excitement of the race doesn't happen just on the track. >> we'll take you behind the velvet rope of the ultimate race party cloth cigarette optional

red carpet is made with 40,000 roses and dinner ham costs $2 million. coming right up.

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>> the race for the triple crown doesn't happen on the track it happens in the party rooms. here are some of the exclusive parties. >> we'll take you where no cameras have gone before and never will again. actually inside the hermitage

grand gala. . welcome to the hermitage grand gal jan and grand doesn't do it justice. this over the top spaert one of kentucky's most sought after events. >> i'm new money. this is old money. >> these just aren't any hamas. it's a $2 million ham. what better way to wash down some pricey pork than a mint julep. the attire is supposed to be dirty chic. these jockeys are overdressed. their outfits are made by body paint. it's packed with nfl superstars. aaron rodgers, tom brady, rob gronkowski. all the proceeds from that party went to charity. the belmont is more of a hot

dogs and beer crowd. not quite as swanky but a lot at stake. no $2 million hot dog. >> $2 million ham. >> that's some good pork. >> that takes pork to another level. secret lives of the rich. triple crown tonight 10:00 p.m. eastern and pacific. >> looking forward to it. okay. let's go the bond market where all the action is originating. rick santelli has been tracking the action, the highs and lows. i cried a little laughed a little. what's going on? >> big number tomorrow. traders sometimes are brave. they are especially brave when liquidity seems to disappear and they all put their hands down. but i think with tomorrow's number you see the markets ease back a bit. here's something important. intraday five year. high yelled was at 173 at 4:46 a.m. ten year. it's high yield, 2:42.

guess what time? 4:45 eastern. boon yields. traded 1% within a whis kerrker. 4:45. euro peaked at 1.18. 4:40. dollar/yen bottomed at 4:40 eastern at 123.80. the point of the matter fx interest rates have been paired together and for a while. paired together with a high correlation right down to the exact minute. tyler, back to you. >> how much of the correlation is tied to what the german market is doing? is he there? he's gone maybe. >> i'm here. it's between -- yes, i'm here. it's between the euro -- yes, i'm here. >> i was asking. >> the bund is key. the euro is key.

they are all tied together. i know the big story is the imf. i get it. we're all supposed to be the same do, the same things, share the same strategies that's why the whole world is becoming what europe was ten years ago. the dynamic of what's playing out in bunds and foreign exchange particularly to the eurozone and in my estimation is at the epicenter right noulg of being a catalyst for some of the recent activity. >> thank you very much rick santelli. we'll leave it. we'll leave with you stocks it is ago round session lows right now as we speak. we'll be back in two. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center,

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hello remember everyone i'm sue herrera. here's your cnbc news update for this hour. u.s. officials association president obama will urge eu leaders to continue sanctions against russia over the conflict in ukraine. the foreign ministers of germany and ukraine holding talks in berlin on the latest fighting in that country noting pro russian separatists violated a

cease-fire agreement. boehner is working on a trade bill. house democratic leader nancy pelosi said republicans would have to produce 200 of the 218 votes needed to passing the house. rick perry the latest republican to throw his hat into the president ideal ring. he was the gop front-runner four years ago before his sbars embarrassing oops moment. the judge threw out a lawsuit against american pharaoh saying new jersey statute limitations expired. a florida person sued ahmad zayat saying he owed him $1 million for gambling betts he placed offshore. breaking news with morgan brennan. >> well dow chemical the sec is

investigating allegations of misspending. according to a reuters report. dow chemical down 1.5%. steve liesman with me now to talk with nigel chalk the u.s. mission chief for the imf on the day his organization told the fed not so fast. >> we got the news maker of the day. nigel chalk joins us from imf headquarters in washington. good afternoon. >> hi steve. how are you doing >> let's talk about what's behind this. first question people want to know how does imf approach the idea of advising the fed. does it feel it's not its place to advise the fed on interest rates in the u.s.. absolutely not. we advise all the central bank countries on imf policies and we look at the whole range of policies not monetary policies financial policies. that's the role of the imf. >> let's talk about what's behind this call here. what's changed in terms of the imf's outlook for the u.s. that

necessitate this idea that they should wait until the first half of 2016 to hike interest rates? >> there's a few things going on. first of all, we've seen the first quarter was disappointing in u.s. and growth after the first quarter hasn't been that great. we lowered our growth forecast to 2.5%. second thing we're starting to see inflation and core inflation starting to decline in the u.s. what we said in our report we think the fed should be data dependent, look at the information that's available and see a bit more wage and price inflation in the u.s. before they normalize rates. it's a balance of risk. we're worried if you raise rates too soon you could see tightening of monetary situation. rise in long term treasury yields and this economy is not one that's strong enough to sustain that. on the other hand if you wait longer yes maybe inflation will pick up a little bit. we feel inflation expectations are pretty well anchored in the u.s. so we're less worried.

>> did the united states and federal reserve push back against this recommendation of yours? >> i don't think so. we're pretty much aligned. the truth is as we've side in the report the timing is contingent on our outlook for the macro economy so our outlook is not so great particularly with one with lower inflation. that leads us to think next year would be better. >> how much is there a conflict at imf in advising the united states which says it's not the global central bank but essentially it the. were the imf members concerned about the global financial stability and the u.s. fed is concerned about the domestic economy. certainly you say in your report that one of the concerns about the fed hiking rates is the global impact. >> that feeds into our discussions with the federal reserve. we take an international perspective as well as looking at the domestic economy. in this case we're granding our view much more in the domestic economy perspective in terms of what the outlook for inflation is and job market. we see a lot of labor market

slack with lots of people working part time participation rates low. we feel both of those things that the sfed away from its goals on both inflation and full employment and together that means they can wait a bit longer. >> steve anticipated my question nigel a lit. >> he can do that. >> my question would be how concerned are you that a rise in u.s. interest rates apart from what it might do and you basically answered that to the u.s. economy how concerned would you be that it would derail the recovery in most especially europe? >> well i think certainly if a rise in interest rates caused a tightening of financial conditions here domestically and slowed down the economy it would be bad news. the fact that fed has been very good at communicating its intentions and telegraphing its view of how close they are to reaching full employment and their inflation goals gives us a lot of comfort, this won't be a

surprise. should be relatively smooth to feed into markets. but always a little uncertain. we've seen term premium move around in europe and the u.s. as i said the currency the dollar has been moving much stronger. you could see these moves in financial variables. >> does the current volatility in the bond market things like 17 basis point moves in an hour as well as the october flash crash does that concern you when you look and think about the fed hiking rates? >> i just mentioned we've done this year once every five years we look at financial stability for the u.s. this is one of the issues we've been looking at and repeated in our global financial stability report. there's this issue in the fixed income markets the liquidity there particularly when those markets are under stress doesn't happen to be there so you see these large moves in prices. that's another one of the financial vulnerabilities in both the u.s. and global economy face. >> thank you very much.

that was terrific. stocks are in the red. dow is down triple digits. so is growth or value a better way to go in a low rate environment? joining us now dave mccuen and andy murray. thank you very much to both of you for joining us. dave you're a fixed income guy. bond market activity is a hot topic. regulators keeping a keen eye on issues surrounding that. how great of a risk is this? >> investors in the bond market face a number of important risks and liquidity is just one of them. another one is fundamental credit quality and on that side quality is pretty good. economy continues to do well of course default rate is very low. liquidity is definitely an issue. we've seen a lot of money

flowing into riskier type asset, high yield and those markets can't with stand a lot of heavy selling without the prices dropping. but that's really normal market behavior. you have a lot of sellers line up whether in stocks treasuries or high yield, prices readjust. i see it more where the right price level is supposed to be rather than the stocks and liquidity. so investors should get used to a higher level of volatility. >> get used to it. that's what mario draghi said yesterday. reiterating those words. andy, what would be the consequences of raising rates this year as opposed to waiting to next year >> there's the risk of policy error if the fed waits too long. we're very focused on the fundamentals of actually investing, looking for high quality companies and high quality companies you have a greater advantage that they are able to adjust their business models to adopt to the environment that they are operating within. >> up are looking for unloved

and undervalued companies. where are they? >> the market is trading on 17 times earnings sway little bit higher than the 25 year average. that might be appropriate given the low interest rate environment we're still living with. there are areas of opportunity, we're still coming up with new ideas of unloved names. >> plum creek, discovery communication, allegheny tech. three of them you mentioned. >> what we look for is reinvest over the long term. three to five years. we're really looking at long term and for very price sensitive and more than willing to pay for securities we own. >> where would you be underweight and why would you be overweight. >> we like high yield. it's for investors such how much. so something around a 10% to 15% weight for investors would be enough. we encourage investors to look because some investors have definitely moved to being more than that at this point. beyond that we're investing outside the u.s. into bonds in

europe, we do think rates will be increasing more in the united states here and the u.s. rates will rise faster than european rates. also emerging market debt as well on the corporate side. >> okay. thank you very much to both of you for joining us today. go to powerlunch.cnbc.com. in the meantime shares of intercontinental exchange those shares of nearly doubled in the past three years as many people viewed stocks as the only place to be. what happens when those rates rise? we'll ask the head of the ice. no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids.

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>> it's powerhouse time. washington, d.c. my home town. redwood realty. welcome.

let's check out d.c. stats. median sale price about $708,000. inventory 342 homes. properties listed on the market for an average of 40 days. edward our first litting, 1935 wilson lane. taxes about two grand. one bed, one bat. 799 square feet of living space. that's out in virginia >> this home is in tysons corner. so three houses we'll look at today are in tysons corner. >> just to be clear. >> this particular house, condo is 800 square feet but what real story is location. it's situated within a mile walk to the first stop from d.c. on the brand new silver line. and it is, if you looked on a map it is right on the opposite side of the beltway from tysons corner center. the story here is what's

becoming of the area with fairfax county using your home town tyler of arlington, virginia as a road map and really taking a bull's eye approach to the four new metro stations and doing high density mixed-use. >> is this inside the beltway or just outside? >> this here is just inside the beltway. >> i thought so. i know roughly where it is. you've done your homework. you knew i grew up in arlington. second listing, 135 carter southwest. $725. three beds 3.5 because. that's further out in vienna. >> this is in vienna. vienna is a bedroom community located about three miles southwest of tysons corner. so there's 100,000 people that work every single day in tysons corner, 20,000 people live there. they live in typically in communities like vienna. this particular house has a two

car garage fee simple town home. you get all the lower costs of a fee simple ownership with three levels of living two car garage, big bedrooms some outdoor space, nice garden patio. you got a deck. then you can walk in one direction, you're at the whole foods right in the center of vienna tons of restaurant and shopping options. other direction you'll be at the end of the orange line. so this is a great accessible property. >> fantastic. powerhouse of the week 1606 seneca avenue $1.4 million, taxes over $12,000 annually. four beds 4.5 because, 5,000 square feet of living space. this is in mclean. >> this is going back towards where that first condo was. this home single family home is within a half mile walk to the mclean metro. when you take a look at

everything that's going on again, with this transition of tysons corner from this sort of mecca of shopping and commercial office space to a residential neighborhood with an actual street grid i mean this property could not be in a better location. so right now there's a bit of excitement and construction going on nearby with the brand new opening of the metro. but you fast forward in 20 years and you're owning a single family home essentially in like a dupont circle/d.c. type of a neighborhood. >> taking me back home. thanks a lot edward. we appreciate it. mandy. >> click your red shoes. >> let's go to bob pisani.

over to you, bob. >> sandler o'neal the heads of all the exchanges are here. let's talk to one of the biggest. mr. sprecher is here. you own global business. how is it doing? what your telling investors >> we're doing well. our earnings were up 26% year-over-year in the first quarter. clearly there's a lot of volatility in the world. and it's driving a lot of trading and risk management and we've bone doing quite well from an earnings standpoint and that's what investors want to know. >> up are very closely associated with the nyse which you own. i want to show how diversified your revenue stream was. your a derivative company. 50% of your company is derivatives. market is growing and listings is growing and the nyse cash

equity trading loin 5%. look how much is growing here and much of this is outside of the nyse. >> right. well we help people manage risk whether it's the risk of owning stocks and equities and managing the price of oil. we set the world's price of oil. can you imagine over the last few months as the price of oil has moved around people are managing their exposure to oil. we've been getting business from around the world. >> much of those derivative is oil futures a business that you're controlling or a major player in. >> correct. i wish we could control it. >> not the right word. there was a lot of discussion here, a lot of excitement about potential uses of new technology for trading. the block chain, bit coin has come up a number of times. how do you feel -- i know the nyse has made an investment in bit coin technology. how do you feel about using block chain for future trading? >> i think there's something to it. i think there's something here. that's why we invested in it.

we've been working on it for over a year tringds it which it's a new language, if you will, for us lay people. there's something going on here. young people millennials trust their app and how many stars you give a driver more than they trust the new york taxi department who vets and gives them a taxi driver. in the same way we're seeing millennials trust a currency that is really created in the ether more than they trust currency by government. i think that trend, whether it's a restaurant review or ordering a taxicab or the way you exchange value is something that this next generation really believes in and so i want to be with them and on top of it because i think it will impact you and i. >> the dow is down 180 points right now. i wonder if you have any thoughts whether the markets will be more volatile in the near future. we've been fairly quiet for the last several months.

right now we're getting a little bit volatility. down 180 points in the dow. >> so much of what's happening in the world economy is based on government policy and particularly federal or central bank policy and so as the world is struggling with quantitative easing and when to turn the spicket on or off i suspect we'll have a lot of volatility. >> anything on the bond market? a lot of discussion about liquidity. people who run the exchanges have expressed some concern about that potential liquidity. is there a better way to trade bonds or do we need to have more -- what do we need to have to get more liquid markets? >> one thing, there's a pretty big agreement that there's a lot of risk if everybody tried to exit the bond market at the same time. over the last few years a lot of money has poured into the bond market. it's been easy to do with this quantitative easing going on. it's been a safe-haven.

once people think there are other asset classes to put known to the sphere how does everyone leave at the same time. we don't have good infrastructure for that. it's very much a telephone market by appointment only market that works when it's kind of onesie-twossy. if everybody is going at the same time we don't know. the bond market is run like a stock market. it's transparent. that hasn't been popular. we don't keep that company alive and invest in it because we think its time may come and we'll see whether or not we're right. >> we have to leave it. you have a midday auction coming up later in the year for stocks. it's an innovative way to get trading in smaller cap stocks. our time is up. thanks very much for being here and good luck in the near future. mandy, back to you. >> let's take a look at the markets. we're sitting around session loss. the dow is down by over 180

points. it's a drop of over 1%. top of 1% for the s&p 500 and for the nasdaq as well. we'll continue to watch whether or not we keep on sliding in to the close so still got a little ways to go. don't go away.

ist in the last hour stocks hit their loss of the day. this is what you would call an across the board selloff as we look at all the sectors in the red right now. >> let's look at the sector that'site that'site that's utilities. but today its very much following what's happening with yields and we saw a ten year yield hitting its highest level in seven months early in the day and as the yield came off utilities doing badly as well. >> i want to switch to the map of the 500 stocks in the s&p 500. to the point that this is a broad selloff. you have nine out of the end of the s&p stocks basically in the red right now. but from top to bottom the declines are comparatively modest. most of them clustered as you go down there around 1% 1.5%.

very few stocks as you get to the bottom here very few stocks in that 3% 3.5%. some but not too many of them. while a broad selloff is not as steep as some would seem. >> good point to make. we'll try to get michelle caruso-cabrera to talk more what sparked this late in the afternoon selloff here. it all ties back to greece. we'll be back in a couple of minutes time.

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welcome back everybody. the selloff in stocks has been steepening over the course of the past hour. one of the big reasons is greece. michelle caruso-cabrera, talk us through it. >> reporter: so we just learned in the last half and hour or so greece will not pay the imf tomorrow 300 million euros they owe. they will bundle their june payment on the last day of the month. they are able to do this according to the imf bylaws but the fact is they do have the cash to make this payment tomorrow. this should be read as them trying to use this as leverage saying they won't pay anything until some kind of deal is finally done in which they get a dispersement of money so they can keep paying their bills. this is definitely a sign of them trying increase pressure on

the european union and correctedors to give them some money as soon as possible. we know there are two different proposals on the table. the greek have one reform plan on the table. european creditors a much tougher one. the two sides are very far apart but we're getting into crunch time because of all the mechanics it takes for parliament to pass certain measures to get money dispersed it has to get done soon or else we start to talk about greece defaulting not on the imf which while symbolic is not as big a deal as if they would default on ecb payments that are due in july and august and they definitely don't have the money to make those payments. >> very quickly how do the creditors feel about this tactic? >>. >> reporter: i'm sure they are completely annoyed and upset and feel jerked around the fact that they are not making the payment tomorrow. i doubt that they are surprised at this point but certainly is an annoyance and certainly see the symbolism of it. >> this is a very big story.

you and melissa will continue in this mode over the course of the next hour. we'll hand it over to you. >> thank you very much. it's 2:00 on wall street. 1:00 in little rock. as guys just saw some big market moves happening. the dow is down 184 points. just off its low for the session. the last time i checked a minute ago only one dow stock was higher and that was goldman sachs as stocks get sold buyers are coming into bonds. the ten year superas the yield falls back down to 2.3%. oil taking another hit off a 1.56 a barrel now trading at 58.08. oil very close to going back below 58 bucks a barrel. hi everybody, i'm brian sullivan. melissa lee is also with us. in the last hour we saw selling pressure in the market. >> there's been adeterioration. we're close to session highs. overnight the bond yield the ten

year bond yield hit 2.245%. there's a notion people are stepping into the bond market. also volatility across asset classes have been high. when we take a look at news we've seen recently in commodities whether it's oil or metals and the dollar and bond market we haven't seen it creep into the stock market and that's what we're seeing today with the s&p down by .9%. >> what i'm seeing is wheat super. lumber. and zinc. pretty much everything else is down. let's bring in founder and ceo of kkb. anything you're hearing from the traders as to why -- listen the markets aren't tanking but we're down 1%. what's going on? >> we're seeing emotion and volatility.

even this morning imf suggested to the fed that we hold off on raising rates. a lot of folks would arguably say here on the floor in chicago too many cooks in the kitchen. treasuries are being bought. 2.42 is a level for us. traders are watching that close. in the big picture we should welcome these rising rates. welcome rising rates means that inflation on. we're in the crux of the conversation. >> i understand this is a historical anomaly. we've never been at zero interest rates. but the last two times the federal reserve raised rates of any significance 1994 and 1995 and 2004 to 2006 the dow went up meaningfully. 2004 we gained 1,000 points. in 1994 jeff, the fed raised rates by 2.25%s very aggressively. you know what the dow did in 1995? it went up 33.36% its second

best return in 40 years. are we over fearing the fed? >> not necessarily. those were different types. there's three components of gdp. they are focused on the labor component. until labor comes along. that's why we think -- look at the sectors, the cap x sector which obviously cap x is at its low it's ever been. they are spending money on cap x. that's where we see the focus. janet yellen and team at the fed want to give that labor component a long runway before they raise rates. >> how much is today's move positioning ahead of tomorrow's job report? >> spot on. a lot. people are getting nervous. folks here in chicago are talking about an outlier. we get a good number could be perceived as bad news. more of a tightening. let's take one step back and realize the fed in essence by letting the dollar rise or suppressing the dollar as much

as they did in qe we've seen a tightening. we don't like the velocity. they want to be careful of the velocity. >> when you say outlier do you mean an outlier name that could be bad or a super strong number -- is there any good news? >> yeah. i think we would like to see a super strong number. that would negate and mitigate the weak gdp number we just recorded. a lot of folks arering to the side it will be a stronger number than the typical numbers we're receiving. >> strong number meaning sooner fed tightening. >> bingo. >> got it. >> jeff thank you very much. now let's talk more about the potential impact of rising interest rates on the housing market. obviously house sag huge part of the overall economy. rates go up. your monthly payment goes up. diana oleck is joining us. we talked about this yesterday.

the average rate on a 30 year fixed mortgage is about 2.2%. historically low. our parents would be cheering. above 4% are you hearing this is impacting home sales or is it inventories or something else? >> the impact may not be in those home sales number yet but i heard a new word from a mortgage lender panic. in just the past two days refi customers floating on the moves are taking money off the table and locking. it's not the rate right now but fear that rates are only going up. first take a look at the past month. a real spike coming in to june after we thought things were pulling back or at least stalling a bit. didn't happen. to get a better idea of where the scare s-let's go back two months. it's all up. we're now up three eighths of a percentage point. that may not sound like a lot but it's not the actual rate or the $40 or $50 more youled be

paying today. instead it's more what will it took like? is it a train not stopping said one lender. usually we see a little pull back before it goes up again and now that's just not happening. maybe you lock in on the refi today and maybe you buy that house sooner than later because the monthly payment is only going to go up. >> you and i have talked about this before but this is my concern. as everybody seems to be refiing over the last couple of years let's say mortgage rates normalize. let's say they go back to 6% five years from now. who will move. >> nobody. some people have to move because of relocation. >> if you want a bigger home -- >> i'm hearing about it more and more. >> add a wing on to my home. i can't afford to move. >> renovation that market is going up. exactly. people have that lock in effect. say they have 3.5% on their 30 year fix and seven or eight years into it they don't want to move. take their money. pull a little money out of the

house and remodel. i would look at the remodeling industry. >> be careful what you wish for. let's move from housing to autos and because most car buyers borrow a lot of money will higher rates hit car sales? managing editor of kelly blue book joins us now. when you look at these auto sales numbers. payment eight year terms. interest rates have to matter for cars too, don't they? >> well they do but not initially. if the rates begin to creep up you'll see that the manufacturers and the dealers will take the hit because they are offering incentives with 0% to 9% financing already. more of those deals around. what you may see is a shift more towards leasing where you won't see the interest rate rise as much because it will be hidden in the cost or longer monthly -- longer loan terms for the loans themselves. >> will higher rates -- higher

rates will bring home prices down because monthly payments go up and that's what they use. is the same thing true with cars. will car prices fall a bit if rates go up? >> if rates go up car prices won't fall but you'll see more incentives because the manufacturers aren't interested in lowering the prices for the sake of a cash buyer who will be coming in paying for the full pot. it won't make itself known as quickly as say in the housing market but a factor that will be there and play out over a longer term. >> matt we got to leave it there. thank you. all right. so interest rates may be going up at some point down road but oil today is going down. in fact soil back below -- well right at the $58 a barrel mark. "early today" it was at $57.83. despite today's move crude oil has gained 12% over the past three months. have oil prices finally bottomed

out. we asked the top energy analyst that exact question. jackie what did they say? >> reporter: the short answer to that question is yes, most of the people that we spoke to thought that oil prices had seen their loss for 2015. this is a round, an exclusive round up of some of the most prominent analysts out there, investors, traders, strategists alike. and, yeah about 75% of them thought that the $42 low that we saw in march is probably it for this year. in fact the average price target for crude oil wti by the end of the year from these respondents about $60 which is roughly where we're trading now. they don't think we'll see a huge jump in 2016 they think wti could get to about $70 a barrel. so this is somewhat in line with also with what we've heard from the big ceos, but there are some big bears on the street as you

know. citi goldman sachs calling for a volatile second half of the year and the potential to see that forehandle once again. they are talking about supply demand economics not making sense. well there are several wild cards here that could throw the scenario off kilter and we could see those levels. first if u.s. production continues to ramp as we've seen it do over the last few weeks. >> 9.5 million barrels a week. >> reporter: very staggering. saudi arabia continues to ramp. we got an opec meeting tomorrow where we probably will not get a production cut from the cartel. also as you you know follow the dollar too stronger dollar is going to mean lower crude. now what about iranian oil? if we get their oil, sanctions are lifted 40,000 barrels a day flooding the market. to the upside what we're talking about here is the geopolitical

strength. it hasn't packed the same punch or uptick in demand which analysts aren't expecting either. when you weigh these factors out it seems we could be going lower before we end up going back higher. >> i want to say i was at a conference a couple of days ago. everybody we talked to there at rbc did a survey they all expect prices to go up and i want to be on the record that when everybody says one thing -- >> reporter: when it's all to one side of the boat traders tells me that's when it goes the other way. >> we'll see you in about 28 minutes. thank you very much. if you are scoring at home the 52 week low for a barrel of oil is $43.56 back on march 17th. tomorrow is a big day because it's opec's big meeting in vienna. phil what do you expect to hear from opec tomorrow? >> we're going hear them come out and say they will leave production young changed. their quota around 30 million

barrels. they are still building about 1.4 million more. you see that. it's categoryize on a miscellaneous column. 1 to 2 million barrels for the next quarter. there's talk about the iranian sanction. once those are lifted you should see their production ramp up to about a million barrels a day and you're going to see that opec number they will don't gain market share, eventually start producing 32 million. if they can keep the price at 57 level they will steal share. >> if libya is back online and america is doing a 40 year record why would oil prices go up? >> well i don't see them going up with any kind of reason other than we continue to see baker hughes that rig count decline a lot or the u.s. starts coming off line as far as their production we start dropping below 9 million barrels oil

prices start to go up. otherwise we stabilize in a range between 53 on up to about 63. but north of 63 you start seeing canada start to produce more and the u.s. you can start to see wells come back online. range bound i got to agree with that $60 year end target. >> if we keep pumping oil and rigs come online 60 may be optimistic unless we see a big demand jump. just a reminder stocks are down. not down as much as they were. dow still off 170 points. it was about 30 points lower an hour ago. still not a good day for equities. nasdaq also down. we'll call it 1%. s&p 500 down .8%. more headlines more news more "power lunch" in two minutes.

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>> welcome back to power lunch. rick santelli at the sander o'neal global exchange conference. the heads of all exchanges are hear. let's talk to one of the big guys. bob is here. >> this is the ceo of nasdaq. before we get to business dow is down 175 points. rough day in the markets. are you expecting more volatility -- >> i think going forward you can expect more volatility than we've seen in the last two years. last two years volatility has been quite muted and you'll see more of it. you have to recognize the dow being at a high level 100 points move isn't what it was five

years ago. >> markets can't figure out what the right interest rate is. >> i think that there will be some interest rate rises coming in our economy in the next 12 months. >> you have been talking to investors all day, talking about how are you business is. tell us what the state of the trading business is. >> the state of the trading business is strong. i would say we're living in a world of reduced volatility as i mentioned so volumes are extraordinarily high. we've had the opportunity really to innovate in a number of key space that helped drive us to record financial performance. >> one of the thing people were excited about is new technology using big data analytics to analyze what the stock market is doing and block chain and bit coin have come up a number of time here. do you think block chain technology can be used to trade stocks, that we can use to settle stocks in a more quick and efficient manner? there seems to be a lot of excitement about this idea. >> there is.

we announced our private nasdaq market would use block chain to clear settlement. that's the first use of it. to understand that any time you're in book entry where you don't have physical certificates that book entry can be a bit on a block chain. >> right now settlement is three days. could we go to a settlement using block chain of ten minutes settlement? that would change the world. >> that's a realistic goal. if you're on the block chain, ten minute window to have your trade confirmed is realistic. >> before we let you go energy futures market investment now in that >> yeah. we're looking to go live within the next month sore. we have a wide support from the industry. they do not like the vertical monopolies that exist. they want to see it open trading and clearing separated. that's what we intend from provide to the market. >> bob pisani here. course we're at the sandler

o'neal conference. back to you. guys thank you very much. before we go break let's run you through some of the decliners. tough day for the pulse. verizon, dupont together. only stock up a moment ago, goldman sachs. we're back after this.

. markets off their loss still in the red. we're down by 150. let's bring in portfolio manager with steeple. great to have you with us. if we read the tea leaves seems the market is take off positions ahead of the jobs market anticipating a stronger number p.m. how do you interpret the decline we're seeing today. >> it's on the backdrop of global yields across the board going higher particularly in germany where we're at .83 on the ten year as well as concerns about greece and when they are going to come to a resolution. of course albeit a short term resolution. if they don't come to a short term resolution of course the markets will come under pressure. when we look at valuation -- >> go ahead. >> when we look at valuations valuations on the s&p 500 are a

stretch with a forward looking multiple of 17 times. i could make a bold case if you saw profit margins that were at historic lows or at least at the low end of historic ranges but profit margins within s&p 500 companies are at the top end of the range from historical perspective. >> given where we're seeing the ten year yield pushing and given you think valuations are stretched the risk/reward is to the down side in your view >> more volatility going into the summer months here and everyone should be expecting that. we do believe the federal reserve will start to act and go a quarter of a point. september or october. but, look if we get ourselves a 5% to 10% down side in the market over the course of the next six months no one should be surprised about that. with that said we're not ultrabearish. we believe there will be positive returns on the s&p 500 for 2015. >> chad thanks so much for your time. >> thank you for having me. it takes guts and maybe good

bankers to go public if you're an oil and gas company right now. most firms are getting smaller, oil down 30% from its recent high. that didn't stop penntex. the ceo joining us now live from nasdaq. stom part tom, is part of your reasoning -- >> penntex access the public matters we have a strong core of assets and certainly great visibility to a quality set of organic growth projects but we expect that being in the public do name not with standing the difficult take today that this is a place for penntex to have the most efficient access to capital to fuel our growth. >> in terms of your assets many are new. your phase one started operation

may 15th. phase two will start up october 15th. one of the major reasons you went public is to raise money to complete the assets. what happens at that point. >> so that's a great question. we are accessing the capital markets to make sure we always have access to the lowest cost capital to build our infrastructure. and while it's true that our current phase is only in operation for several weeks, penntex is in existence for 16 months. we accomplished a lot in a short period of time. investors should expect that we've got a strong counter party, we're showing rapid growth. volume growth in the next several years will grow. investors in penntex should expect a top tier growth ramping up rapidly. >> when should we expect that though? according to your estimate you

require for the minimum distribution 11 million a quarter or so. correct? >> yes. >> when will you start paying that out and when will that start ramping, that escalation? >> we'll start paying it out immediately because all of our contracts are in effect and unlike many of companies our revenues are taken from contracts. we have great visibility and certainty in our cash flow. we'll start paying out our distributions immediately and you'll see a ramp lumpy early on. lumpy growth. not on the down side. as we roll on the growth projects that we're building. you're going to see a pretty substantial ramp in our distribution, over the forecast period. >> people are looking for income and looking for that percentage that yield. is there a target in term of the yield that you'll pay at a certain date? >> well not so much a target for the yield because the market

will establish what the trading point is for mlps and others. we're targeting a very robust distribution growth. because that's what's going fuel investors wanting to invest in penntex. we think above most other mlps. we think our growth rate will be much higher than the middle of the road mlps and all investments are relative. relative to other investments where do we sit. we think we sit pretty well. >> thank you for your time. brian, over to you. >> thank you very much. tom, as we said oil taking a big hit as we head to the close. we're just a hair above 58 bucks a barrel. we'll give you close as we come back after the break. big oil stocks by the way down across the board. exxon, chevron conocophilips

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hello everyone i'm sue herrera. here's your cnbc news update at this hour. the government releasing photos of the weapons omar gonzalez was carrying his car the day he jumped the white house fence and entered the front door of the white house. the first family was not home.

texas senator ted crews has apologized for joke about joe biden just days after the vice president's eldest son beau died from brain cancer. he made jokes during political dinner in michigan last night but later posted his apologies. >> a study finds modified versions 2005 medications could one day be used to treat ebola. mice given zoloft and calcium blocker survived the virus. on the catwalk in moscow this week fashion designers presented new collections inspired by russian president vladimir putin. they were trying to appeal to putin's supporters with their creation. one t-shirt is depicting putin as a brick layer. that's the cnbc news update. back to you. >> when he's not scoring eight goals in a hockey game or riding a puma shirtless.

>> exactly. thanks, brian. >> thank you very much. now i got your christmas gift ready. as promised let's get down to oil close. >> reporter: if i'm reading the board correctly it looks like we settled at exactly $58. this was a market that was lower ahead of the opec meeting not expecting to hear anything new from the cartel about production. so supply and demand still coming in to play sending to us the down side. the fact that we didn't close under 58 is supportive positive sign. we've been range bound lately anywhere between 55 and 65 is where traders expect this trade to be. at this point it looks like we could go a little lower before we go higher. >> time now for street talk. the day's big analyst calls. just for you. almost hated word. first stock, cavium.

upgraded to a hold. target is 85 bucks. about 13% upside even with today's big move. stock super. >> today's big move is putting it at a fresh 52 week high. it's number three chip industry acquisition candidate for 2015. part of the reason behind this big move. northward dillard's, sustaining returns on capital. upside to current valuation that it appears limited. department stores are vulnerable to competition from off pricers and fast fashion. >> dillard's is down 13% over the month's time. so we've seen some weakness in that stock, obviously. they are calling for more. next jock arthur j. gallagher.

based on price target prices they like arthur gallagher the best. >> insurers have come back in vogue. rising rate environment we're talking about which stocks do well. insurers do well and they haven't stein rise that the region banks have. next stock, goldman sachs, raymond james downgrading goldman sachs to a market performance. driven on valuation. the stock hit arraignment james price target on june 2nd. the sector has outperformed the market. it's up almost 7%. goldman nice trade on a tough day. >> i was just saying to the audience it was the only dow component that was higher about ten minutes ago and looking right now guess what? it still is. that's goldman sachs but one day. i get it. finally today's under the radar name.

bill barrett. oil and gas company. bbg about $5.5 million market cap. their target goes to 14. they downgrade two others. >> bill barrett is down 64% in the past year. 500 million mark cap today was much bigger a year ago. >> they operate in unusual areas in baysins in utah. >> a big move in bonds. how significant those, is that move. joining us is jon najarian. put this in context, feels like the bond market has been whipping around lately. >> it does and has. no doubt about that. but i just want to point out what a great job janet yellen

has done not because she signs my checks but because she's basically talked and talked and talked about rates and so look at the impact. this is, for instance that october bond fuptd to call it a flash crash a 66% surge in a couple of days for the bonds back in october. 66% surge in volatility is massive. take a look. we had another surge here in early part of 2015 but not nearly as big and the latest one just from here to here this is only about 30%. so when you're talking about a move in volatility that's only half of what it was earlier, you know granted that was the flash crash but then here we were in january and we're only doing about half of that kind of move right now, that tells you that people are more comfortable with what janet yellen has been putting forward and not as surprised. >> also jon, because the move in the bond yields we've seen

has bean slow steady climb. we've seen the move since the beginning of the year. if the moves are gradual it won't be reflected as much. >> correct. i think there's a certain amount of folks like myself that are looking at what mario draghi listening to what he has to say and thinking with that trillion to spend and the german bund up that's going likely be pushed down by his buying and by the buying of other sovereigns and others. that's a reason to be looking at the muted volatility here. if we didn't have that happening the volatility moves might be more like that. >> doc, thanks so much. see you tonight on fast. brian. >> great stuff. now time for trading nation. today let's stick with bonds. let's stick with the 10 year. boris, first i'll begin with you. we look at the ten year. most people on this program are

calling for rates to go down. they've gone up. what do you think will happen from here? >> first, janet yellen signs all of our checks. >> i kind of felt the same way. >> exactly. i think, you know it's dangerous. i'm not as complacent as jon is on the bond situation. not necessarily because of the u.s. part of it but because of the european part of it. ecb is the last one to do qe. the market ran the qe policy way ahead of itself. it took the bunds down zero. yesterday mario draghi admitted there's going lot more volatility in the market. he himself is prepared for the idea there can be a lot more volatility. that volatility translating itself into the fx world but come back across the atlantic and hypothetical us hard as well. >> let's take away the fundamentals and look at the charts technically how is the ten year yield looking?

>> i think we can all agree there will be a time for higher rates but today's textbook reversals in bund yields at 1% and the ten year at 2.4% strongly suggests that the time for higher rates is not now. we think rates go lower and should retest 207 on the ten year. the way we'll play that is through the tlt. this is your bond price etf. clearly you can see the price of the etf comes off as yields move hire. i'm not going to tell enthusiast is the prettiest chart on the board. i'll tell when you a security reaches a key neck line of support like the tlt down around 118 it becomes very dangerous oftentimes the neck line of that pattern provides a spring board to higher prices which includes lower rates at this point. i think that's exactly what happens here. we get a strong bounce off 118 takes us up to 126. that should coincide with that pull back in rates where we are today on the heels of that early

morning reversal takes us down 20. buyer bond prices of seller interest rates go lower. >> thank you very much. folks remember for more trading nation we do two additional segments every day go to our website. as we head into a break let's take a look right now at the worst performing stocks of the s&p 500, they are frontier communication, iron mountain the company not the city in northern michigan and jm smucker. smucker falling after earnings. tried to pass unsuccessfully those higher costs on the you, the consumer. "power lunch" is back in two.

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e financial noise financial noise financial noise financial noise stocks are coming off session lows right now. the dow is down by 100 in 60

points or so. nasdaq is down .8%. 2790 is for the s&p. russell 2000 is a standout. that's down by 1.1%. >> overall weekly jobless claims fell by 8,000 last week and while the job market has improved a lot in the past couple of years a new survey shows the number of underemployed who have given up on ever finding a job is higher than ever. who are the long term unemployed and what can they do to get back in the job market? the former chairman of the kansas city federal reserve and an employment and labor attorney also author of the book "the perpetual paycheck." lori, first to you. there are officially 8.5 million

unemployed. we know the number is higher. 8.5 unemployed. 5 million job openings in america. 8.5 jobless, 5 million job openings. we should only have 3.5 jobless if you catch my math. why the disconnect? >> i think employers are nervous about hiring because they feel they don't apartment bad hire they have less resources and want the perfect fit. they now have this sort of time and energy and they really -- they know what they want and the job-seekers aren't matching the skills. >> bob this is an interesting point. we have ceo after ceo after ceo on this network who says i can't find skilled workers and people say i'm skilled hire me. are employers, though too picky? >> we're on the tale of two economies. we have the semi-skilled and skilled that are in demand and unskilled that are not in demand. most jobs are in the semi-skilled of which many employees are not prepared to

take those jobs or prepared to have the education or many of them may not want to go back and get their education in order to fill those jobs that are in the semi-skilled -- >> how much of that -- listen there are certainly a lot of people who could take jobs that they aren't taking but let's flip the script. how much is at any time employer's responsibility to say you know what mr. jones, we love everything about you, you're not quite qualified, but we got your back. we're going to train you. where does the employer responsibility start? >> well temporary help industry helps that out a lot because we're a try before you buy if you will or a training ground for many companies and they will put them on our payroll for approximately six to nine months and train them. the companies will train them. then flip them over to their permanent employment. about 60% of our employees do go to work permanently for the companies that we place them at

and express is a dadamant about finding work for those people with the right work ethic. >> lori if you're an employee how do you reinvent yourself. >> it's not about reinventing yourself it's about finding the job vacancies and putting your job skill sets to that. >> there's 5 million open jobs. how do you maximize the skill of finding those? >> they put the job search process. instead of employees and candidates saying this is what i want this is what i need you have to look at the employer and say what does the employer want and you have to fit yourself in. make the process about the employer and the employer's needs. >> bob quickly to you, how much of is a geographic issue. volvo investing 500 million in a new plant in charleston south carolina. you have a lot of out of workers in michigan and ohio but sitting on the mortgage of a house they

can't sell so they can't move. >> previous surveys we took 40% of them that will not move because they want to stay in their own communities. the real key is we re-educate our individuals and we're working closely with the career tech's we're working closely with the rural, of course communities, rural candidates that have the work ethic that we want to try to get them re-evidence indicated or educated to begin with so that they can take those jobs that are in such high demand right now. >> all right, great discussion. guys thank you very much. >> we're all over this market drop. let's look at the big nasdaq drops and how much they have been dropping. apple and google in line with fall. amazon that's the one that's really taking it harder down by 1.4%. much more on this market slide when "power lunch" returns. ities can now predict where the power will go out, within a few city blocks.

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this is the cnbc giant wall/heat map live updating the prices here. kind of like watching tv at sears back in the day. all the tvs. you get the idea. red is bad ironically. green is good if you own stocks. one name that's higher today the

most, wynn resorts. jpmorgan chase making positive comments upgrading that stock -- i believe it was jpmorgan. one of the wall street firms coming out positive. >> it was credit suisse. wynn seems to be really winning in today's session. hedge fund manager john paulson giving harvard its biggest gift ever. a $400 million donation. some applauding the move others not so much. malcolm gladwell tweeting it came down to helping the poor or giving the world's richest university $400 million it doesn't need. wise choice john. let's point/counterpoint this. brian, i am all for this donation. full disclosures, i am a graduate of harvard college. john paulson is donating this to the engineering and applied sciences working on solutions for the poor and others. that's my argument. >> you can never knock giving.

i will never see $400 million, much less have the ability to give away $400 million. that said harvard's endowment is probably $33 billion, $34 billion. that's the gdp of a mid sized nation like jordan. >> so? that's totally irrelevant. >> that's my point. it is 12 times boston's annual operating budget. >> so? >> at what point is enough enough? i mean that's all. >> at what point is enough enough? >> for harvard. what are they doing with the money? >> well they're creating programs to educate scientists and engineers, in particular in this case for this particular donation, brian. so that those people can go on and work on solutions -- >> because the other $32 billion wouldn't do it. no? >> oh come on. >> i'm not knocking the gift. i'm taking the other side of it. but it is also if john paulson is looking to raise the image of hedge fund managers out there be with giving money to basically a nation that is also a college is not the way to do it. >> i disagree completely with

you. agree to disagree. >> i am a land grant public school kid. >> that's fine. that's fantastic. >> he should have given some to virginia tech. >> you can give to virginia tech, brian. >> i got it right here in my wallet melissa. on a more serious note epa out on a report with the effect on fracking on drinking water. 998 pages! i didn't go to harvard. i gave up. >> well the draft assessment was on drinking water was on hydraulic fracking activities was done at the request of congress. the epa says while hawydraulic fracking activities have not led to effects on drinking waters there are findings in the life cycle that could impact. they were small when compared to the large number of hide

hydraulically fractured wells across the country. water withdrawals in areas with low water availability, hydraulic fracturing conducted directly into formations containing drinking water resources, inadequately cases or cemented wells resulting in below-ground migration of gases and liquids. the epa's senior science advisor says this is the most comprehensive compilation of data to date and the study is not a human health risk management or a category of wells type study. it should be used by states to regulate gas and oil development. no surprise the oil and gas industry officials praising the draft report. bottom line hydraulic fracturing activities have not led to widespread impacts on drinking water. so says the epa in this assessment. >> all right hampton pearson, thank you very much. that report is up on the epa's website. but again, folks, it is 998

pages long. it is all kind of charts and graphs. just read the executive summary like i did. back to these executive markets. the dow jones industrial average is down 170 points. that's just under a 1% move. the nasdaq is down as well. the big story to me i'm kind of an energy geek as melissa likes to say, oil falling again down to $58.06. at one point a barrel of crude oil was at $57.83. oil can't seem to get out of its own way after it gained a couple of months ago. kind of stuck in this same position. that's it. "closing bell" will dutifully take it over from here. melissa on "fast money," can't wait until 5:00. >> are we in a recession. after this quick break. when a rewards card is designed to sync with your life it gets talked about...

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hi and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> i'm bill griffeth. boy, this has turned out to be a big day for markets. let's just show you right now how we stand with the major averages. the dow down almost a full percent right now. a decline of 164 points. the s&p is down 16 almost 17 points. nasdaq down .81%. the yield on the 10-year has actually come back a bit. it was up in the 32.36