space. >> it is an iconic brand. i think you hold on to it through cycles. >> classic indication of great, great companies both under armour and nike at terrible prices. you can't own them here. footlocker is the way to go. >> we'll see all of you tomorrow. "power lunch" begins right now. >> announcer: lace 'em up. halftime is over. the second half of the trading day starts now. thank you very much. i'm tyler mathisen. welcome to "power lunch," everybody. reaction to the big ruling. a major victory for president obama's health care plan and any one interested in hospital health care and health insurance stocks. should you buy or sell the swoosh? we'll talk about that. numbers from nike due out after the bell. massive protests erupt throughout france. taxi drivers furious over uber's rise and they're blocking airport access shutting down major roads. mandy is out today but sara eisen is live at the nyse.

we have full coverage of the health care ruling and reaction. but we'll begin this hour with a battle royale between boeing and lockheed. they are locked here over which company will get a $55 billion air force contract for the next generation of american bombers. boeing shares in the $142 range. there you see north up thererop grumman. >> all three players are involved but it's two against one, in the coming weeks the air force is going to award the last manned contract award for the next 20 years.

it is possibly whoever loses may be forced to get out of that business. it is for the air force bomber. very secretive. we don't know many details but the hope is to buy up to 100 planes at a cotst of $550 million -- each. >> this is what we do. >> reporter: hoping to build that bomber is northrop grumman putting pressure on boeing's incoming ceo. northrop currently builds the fleet of stealth bombers. those cost $2 billion a piece and they're 20 years old. the new bomber would replace the much older b-1 and b-52s. some speculate that if northrop wins boeing might buy northrop but the outgoing ceo has told "aviation week," "that is not a thought that has occurred to us. lockheed will be okay either way

because it is still building the massive f- hn-f-35 program. we are told at this point it looks like california may have the edge. but no matter who wins be prepared with so much on the line for a possible protest there just as we saw with the protest over the air force tanker program. originally awarded to northrop then taken away and given to boeing. stay tuned. we'll look now at the major decision on obamacare, the supreme court upholding one of the main tenets of the health care law allowings nationwide tax subsidies to help poor and middle class consumers buy health insurance. the health care stocks are on fire this afternoon. from insurance to hospitals, some soaring double digits. bertha coombs has more on the action. >> a very big ruling. today's supreme court ruling does lift a big cloud of

uncertainty for the health care industry particularly for hospitals. both publicly traded and non-profit hospitals have experienced less bad debt over the last year due to obamacare. most of that is due to the expansion of medicaid. nonetheless, hca for example said in the first quarter 2% of their revenues came from exchange plans. the largest players, they were all up about 1% ahead of the decision. they have surged today. hca and universal health are up at their all-time highs today as a result of this ruling. as you look at the map for the federal exchange you can see why. concern is that a lot of these big players have in these blue states where the federal exchange are particularly in the south and southwest, that's where they have a lot of exposure. to have had all of that confusion in those markets, to have had that negative sentiment would really have been something that would have caused a lot of uncertainty for them. prospects of millions losing

coverage. analysts say they could have taken a hit of between 2% to 6% in their cash flow. a spokesman for hca told me that the company is pleased with today's ruling saying that "we support efforts that improve access by providing affordable coverage for the uninsured." you take a look at the insurance sector though not up quite as much. getting a boost today but it is not those double-digit moves that you're seeing in the hospitals. that's because for them, too, a lot of the profit has come from the expansion of medicaid. that's where they're seeing the big e growth. one analyst says that's why we're not seeing as big a pop in the insurance stocks. >> many of them such as humana which is potentially up for sale is also losing money on so this is not that impactful for managed care in the big scheme of themes. >> not that impactful right now. they see it more as a growth prospect with those exchanges.

bigger issue right now for them is consolidation with aetna potentially tying up with humana and anthem still pursuing cigna. it is still the smallest mover, cigna is at an historic high so that price continues to get more expensive. >> a lot of people see this ruling as a catalyst for those deals. news alert on the bond markets. rick santelli what are you seeing in terms of demand for the 7-year? >> best of breed on the 7-year. i give the auction an a-minus. 29 billion new 7-year notes just hit the streets. the yield -- 2.153%. what's interesting about that is, the high was a built-in concession with the sell-off but nonetheless solid. it priced through the right direction by three-quarters of a basis point. a little light at 10 auction

average, not much. 56.6% on indirect. best since christmas of 2010. 11.9% on directs. a little light. but the pricing really was aggressive. the 7-year an a-minus. down to 90 billion in supplies. >> the 10-year and 20-year note yield, higher yields lately. pretty much saw it all day in the wake of that big bond sale. we see prices selling off. yields a bit higher. there's the 10-year note yield. 2.40%, thanks in part to that better personal income and spending data earlier this morning. dominic chu has a "market flash." >> sara, from the bond market to the stock market -- let's call it a supermarket sweep. kroger seeing a spike after raising its quarterly dividend by about 13.5%. the board also approved a two for one stock split, as well as a $500 million share buyback

program. huge violent protest breaking out in paris today. taxi drivers are angry at uber. morgan brennan an uber user is tracking it all, as am i. >> that's right. tyler is saying that because i actually used uber in france last month myself. french taxi drivers block being main roads in paris marand southeastern france. they are demanding the government force its ban on the uber service. they stopped access to some of france's biggest airports. uber's been growing in france despite the government's attempts to stifle it. riot police were forced into a showdown with taxi drivers on the streets firing teargas at protesters. airport officials have been telling anyone who needs to fly today to not -- try not to do so. don't drive. don't take a cab. get on a train. but -- taxi drivers are also blocking train stations. late thursday france's interior minister ordered paris --

police excuse me paris police to enforce the ban on the uber pop service and calm the streets. one estimate in france shows that licensed taxi drivers have been losing up to one-third of their income to uber in the last two years. so this has really been bubbling up for some time. >> i can believe it. morgan, thank you. sara over to you. we're going to stay in europe to the drama unfolding in greece now. the country's debt crisis deepening amid a deadlock with its lenders. european finance ministers holding last-minute talks again in a desperate bid to find a solution for greece. stocks all maintaining their gains but just barely. they've lost the mini rally that was going on. euro pretty much flat 112. for more on the greek effect and the market let's bring in global strategist with jpmorgan. i just checked the markets and you aren't seeing anything in terms of hysteria or worry. is any of the worst situation being priced in and if it is

not, should it be? >> political economy is clearly complex but our base case scenario is that there is some resolution which does not lead to a greek exit from the euro. whether that's a deal or last-minute deferral for a few more months or in the event they do default, there are a few steps remaining before greek exit happens. i think it is fair to say that markets are not pricing in or fairly complacent to the possibility of a greek exit. a good way to think about that is that market prices are sort of aggregating over a lot of different scenarios. including many of which that -- many investors who stridently believe that euro -- greek exit from the euro is not a possibility. i guess the flip side of that argument is that if it does end up happening, then you would get a pretty big knee-jerk reaction by the market as those people are proven wrong. >> so where do you want to be in the case of that happening? how do you hedge yourself against the potential negative risk even if your base case scenario is that they get some kind of deal done? >> yes.

absolutely. from the perspective of a multi-asset investor even if it is not your base case that that happens, i think you want to be positioned in certain respects in the event that it does. so in our case we have a belief that the u.s. yield curve will flatten. we have an underweight in emerging market equities. we have a moderate overweight in the u.s. dollar. and those are all in place for other sort of fundamental reasons. but they also have the desirable side effect which is that if and when a greek -- or flight to quality due to greek event risk does unfold those would provide some protection. >> many folks here on the floor look at the currency market they look at the equity market and say central banks are driving the action. data is driving the action and that's why we're sort of immune to all of these negative headlines out of greece. do you agree with that? and if so what's going to be the next catalyst here to get these markets to break out one way or another? it's been a lot of sleepy action until some sort of resolution for greece. >> i'm inclined to agree. the fundamentals which we look

at in our overweight on european equities, are fairly solid. there you actually do see signs in earnest of a recovery in the economy gaining traction. i'm sorry. that's for your area in general, including lots of the peripheral countries. so i think the story really is one of fundamentals and even though greek -- i'm sorry. i keep saying greece. even though european equities are fairly rich at the moment the economy going up and an incipient cycle of upgrades in earnings will help bring valuations down and sort of keep that rally going. >> thanks very much ben. greece is on top of all of our minds these days. ben mandel, jpmorgan global strategist strategist. disney raising its dividend to pay shareholders twice a year. food manufacturer general mills announcing it will cut 675 to 725 jobs in a restructuring plan aimed at cutting costs and boosting growth there. the rare earth's miner mali

corp. says it will file for chapter 11 bankruptcy protection. the kpt hasn't reported a profit zips 2011. >> love and money. match.com and tinder looking to go public. good for a date but are these businesses gooed ford for investment? nike set to report earnings in just a few hours. is the stock a buy at these levels? or would you be better off buying faster growing rival under armour? we'll discuss that on "power lunch." ♪ mamas, don't let your babies grow up to be cowboys ♪ ♪ don't let'em

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welcome back to "power lunch." target is parting ways with its chief merchandising and supply chain officer. this is the highest level executive change since ceo brian cornell took since he started last year. the retailer's been there since 2008 and played a chief role in modeling their cheap chic reputation. president obama encountered trouble at a white house event yesterday members of the lesbian, gay, transsexual and transgender community. one person heckled the president

at the event and the president at one point just basically had enough. watch. >> listen. you're in my house. it's not respectful when you get invited to somebody -- can we ask to throw this person out? you can either stay and be quiet or we'll have to take you out. all right. can we have this person removed, please? >> once security arrived the protester was ejected quickly. >> that was before he got the good news on health care ruling. using a dating service is one thing, but investing in one is something else all together. parent of match.com and tinder planning to spin off the dating services. julia boorstin live in los angeles. julia. >> reporter: sara that's right. by the fourth quarter investors will be able to bet on the biggest portfolio of digital dating companies. match is the largest service in

the portfolio with 2.4 million paying subscribes and more than $850 million in revenue last year. while tinder is just starting to make money from the 16,000 swipes the app has every second. it's introducing a premium version. the company also owns a freemium okay cupid iac shares up 5% just on the potential for growing these dating services and for the company to potentially hit those projections of half a billion dollars in earnings next year. the dating business which comprised about 30% of iac's first quarter revenue helped drive iac shares up over 80% year to date. benefiting from the explosion of mobile devices enabling people to use these dating services constantly, as well as the predictability of subscription fees and network effects. that means the more people who use these services the more

appealing they become. on the downside there is sure to be another start-up to steal user's attention. just as tinder did. and online dating is a rare business that actually loses customers when it's successful. >> yeah. because they make a match and that's the whole success story. thank you very much. julia boorstin. it reminded us at the cnbc 25 gala back in november andrew ross sorkin and kara swisher spoke with barry diller and martha stewart about their thoughts on dating websites. diller is fully behind services like tinder and match. martha is a bit less optimistic based on her own personal experience. >> you've been on match. right? >> i tried. >> are you on tinder? >> not on tinder. i don't even -- no. >> whatever happened on match? >> on match? two bad dates. >> oh martha. >> i'm sorry. >> try again. >> i tried. i tried. i'm a little bit odd for match.com. >> i don't think so at all. >> you try it.

>> now that she's selling her company maybe she'd have better luck on that side. from hooking up to breaking up google co-founder sergei brin legally divorced from "23 and me" founder after 28. given that brin is worth 30 billion mr. and his ex is a high-tech mogul in her own right, we're guessing the two will be okay at least financially. safe assumption. hospital stocks on fire right now on the back of that supreme court ruling on obamacare subsidies. up double digits. but not all health care stocks are the same. how to trade this hot sector using etfs. plus crime and punishment. andrew day on the case. it was a massive $96 million ponzi scheme that left many investors broke. now the ruling that could get them back some of that cash.

that story coming up right here on "power lunch."

welcome back to "power lunch." shares of transunion up about 9% in its market debut. the credit reporting company priced its ipo at $22.50 a share at the top end of its expected range. the company sold 29.5 million shares. the shares are trading on the new york stock exchange under the ticker tru. according to renaissance capital transunion is the fifth largest

u.s. ipo of the year. it did get as high as about $25 and change early on but now has given back some of those gains. it was a massive $96 million ponzi scheme that left dozens of investors flat broke. now in a rare turn of events they could get some of their money back. andrea day here with the crime and punishment update. >> the official bid package is now out. while the list of bidders is highly confidential sources say they're hoping to attract a who's who of wall street and real estate big wigs. that could mean great news for investors who lost millions to these guys. it's been a while since we met up with brian callahan and his brother-in-law adam mansing. >> do you feel greedy? >> reporter: the two have since pleaded guilty to being part of a $96 million ponzi scheme where investors were duped into thinking that their money was going into hedge funds and other liquid investments. but according to prosecutors, a

big chunk went here into the panoramic view ocean front resort they owned. investigators say with the market down in '08, the duo couldn't flip units and lied to clients to keep the resort afloat. >> how these individuals could do what they do absolutely no integrity. >> reporter: most ponzi victims are left holding the bag but this one may have a silver lining. in a rare turn of events investors could get their money back. the resort now forfeited to the government, is now officially up for bids. and sources say they already have an unsolicited offer of at least $60 million. the money going to pay back lenders first, about $20 million of it. but the rest will go straight to the victims. buyers now have about a month to place bids before the government declares a winner. they're hoping to attract top hedge fund managers and real estate titans who can pay big bucks. investors are holding their breath and we'll keep you posted on everything that happens. back to you.

>> andrea day, thank you. let's get a check on the bond market on the back ever the 7-year note auction we had at the top of the show. rick, 10-year below 2.40%. >> there sometimes is a supply relief rally. today is no exception. look at that 7-year. a-minus. intraday yields falling. if you go to the longest maturity, the 30-year bond you really see how it is falling but make most important on the long end, open that chart up to year to date. the level we're falling from was very close to the highest yield close of the year. maybe it doesn't mean we won't test it again but at least for the moment there's a whole lot more buyers than sellers. last chart, two-day chart of the dollar index, hardly woke up for the great auction. tyler, back to you. school's out for summer. my son's ended on tuesday but we are already getting new forecasts on the state of --

yep -- back ln-to-school shopping. >> announcer: today's powerhouse is home to 11 fortune 500 companies. the first televised presidential debate was broadcast from here. and walt disney was born here. can you name that city?

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hell hoe, everyone. i'm sue herera. by a 6-3 vote the supreme court validating federal health insurance subsidies for nearly 6.4 million americans. president obama called the decision historic and declared the law has now been woven in to the fabric of america. >> as the dust has settled, there can be no doubt that this law is working it has changed and in some cases saved american lives. it set this country on a smarter, stronger course. >> reporter: taylor swift is letting apple music stream her "1989" album after apple decided it would pay artist royalties

during apple music's free trial. swift was critical of apple's initial decision not to do so. mcdonald's says fewer people are picking soda for happy meals after it stopped litssting the drinks as an option on menu boards. the fast food giant is trying to satisfy critics. tv actor dustin diamond has been sentenced to four months in jail for a bar room stabbing. he's best known for his role on "saved by the bell." thank you very much. i'm going to toss it to dominic chu for a quick "market flash." >> gogo hitting its session flies right now. offering guidance for a certain measure of profits that was on the higher end of its previous estimates. the stock is up 40% this year so gogo shares soaring in today's trade. i'm watching gold prices because they are closing right now. the headline here is that they're closing lower for a fourth session in a row on the back of a stronger dollar and

really just this general anxiety and wait-and-see mode on greece. silver silver, copperer palladium, platinum also lower except for platinum. gold down 2.5% just this week. stocks are going steady this hour but health care stocks are soaring on that supreme court obamacare ruling. check out the s&p health care sector. you can see the strength there. beneath that you are seeing a lot of action in hospital stocks and insurance stocks. bob pisani has been on the health care beat since the ruling broke this morning. >> it is a great way to play this whole thing. let me show you how health care names are playing out. you want to really talk about hospital stocks. uhs is universal health tenet, aca. double digit gains in a health care stock? you don't see that very often. there is an etf for that. the symbol is ihf. includes hospital stocks. you see that moving to the up

side here. that's sitting at a new high. elsewhere a little bit of problem, i'm watching transports. we turned negative again on the transports. that's not a good sign. remember the problems we've had with the transports particularly the railroads on the year. lot of debate about whether this is signaling problems in the u.s. economy. i don't feel that way but a lot of people when this moved negative started saying watch out. look at transports versus the dow this year. you can see why the concern is. we're basically flat on the dow. we've been moving down on transports, now down 10% for the year to date ever since april. let's move on. another pocket of excitement is the ipo business. we had two winners today. the first one transunion priced at $22.50 opened $24 and change and is right there essentially. that's a winner today. the other big winner glaukos, they priced yesterday at $18. they opened at $29 that's where it is right now. 62% move. anything having to do with the

biomed area continues to do very well. though i want to point out there were eight ipos today, only six of them got priced. two of them didn't get priced. one got priced above the range. that was glaukos. transunion was in the middle. three priced below the range. in terms of a scorecard for ipos today, i'd say a very mixed report. a lot of buyers of ipo basically pushed back and said we don't want to pay these kinds of prices and they knocked the prices down. that's a good healthy market sign. you get a bubble in ipos is when everybody pays above the price. >> for anything. >> for anything. we want anything just throw it at us, we'll buy it. they're saying no here right now and i think that's a very very good sign. no bubble in ipos. the buyers are out there and saying we want more reasonable prices. >> transunion was a big one. >> transunion was a success. >> thanks bob. we'll check back with you in a bit. wall street moving higher. this afternoon a rally in health care stocks, a jump in consumer spending sending the broader u.s. market higher.

where do we go from here? thoughts now from scott ren and wells fargo and john buckingham. feels like we are in a wait-and-see mode on greece and a wait-and-see mode on the federal reserve. where are you taking your cues from right now? >> sara that's sums it up pretty well. i think what's going on now, besides greece and what the fed is going to do the simple fact of the matter, at least in our market, is that the market's pretty close to fair value for this point in time as well. we want our clients -- i'd love to see more volatility. i'd love to see a decent pullback here because i think it is purely a buying opportunity. we have a target range at the end of the year for the s&p 500. 2,250 to 2,150. our bias is toward the top of that range. we want our buyers putting sideline cash to work. retail investors are

underinvested in stocks, they're sitting on way too much cash. >> but you want to see a pullback to have a healthy market and a buying opportunity. scott, what's going to lead to that pullback? >> you keep thinking that well maybe indecision over greece or uncertainty over greece. the market seems to have de digested that pretty well. sara, it is not going to be earnings, i don't think. the upcoming earnings season that's not going to be doing it. maybe some outside events. maybe just some additional turmoil in the middle east. just some uncertainty over what the federal reserve's going to do. basically what we've been trying to do is any type of pullback no matter what the magnitude is. we want our clients stepping in but also right here the market's at fair value. we think it is going higher. i think that's going to be the case probably through 2017. if you're buying at fair value, that's not a bad thing either. >> or maybe, john buckingham it is an influential investor like carl icahn coming out and saying stocks are very overheated and dangerous from here. do you think there's any merit

to those claims? >> i think there's merit in terms of some of the growthier stocks, some of the biotech companies, some of the tech names. but if you look at value type stocks like we favor in our "proven speculator" newsletter we don't see the market being overvalued especially given where we are in interest rates. the dividend yield on my own portfolio which is the model for our newsletter 2.7%. contrast to to 2.4% today on a 10-year treasury. stocks look appealing when you think about alternatives where you might put your money. >> how much cash are you in john? how much are you allocated for cash? >> we're a long equity manager and believe it or not, we've been fully invested for all of my 27 years, 28 years with al frank. but we always have a little bit of cash. because we've been selling some of our winners here in the last couple of weeks, we have a little more cash than normal. to put that in terms of a number it's 5% or 6% as opposed

to 1% or 2%. >> it's sort of an i understand case of your caution level for stocks, or is it an indication that there's no other game in town? >> well i would say that we want to have a little dry powder because there are certainly companies that are getting hit here. remember, it is a market of stocks and not a stock market. so mr. icahn is right that the netflixes of the world are super expensive. there are names that are attractive like seagate technologies with a 4% yield and a pe of 10. even today the rail car makers are getting whacked so a company like trinity industries which is trading around eight times earnings. there are certainly bargains out there and you got to be selective. we own both of those stocks right now. but i think that if investors can focus on individual names and be an active strategy as opposed to a passive indexing strategy they can do very well in that market. >> thanks for the tips gentlemen. scott wren and john buckingham. for more on their market

thoughts go to powerlunch.cnbc.com right to you nor today's power play from these two market strategists. some tips in there as well that we didn't even get to. check out nike up 9% so far this year. the athletic giant set to report earnings after the bell. we'll have that story. should i buy the dow member before the results? what you need to know before you trade it. plus school's out for summer. we've got new forecasts on the state of yes, back-to-school shopping. retail stocks that are set to benefit the most. >> announcer: the city in today today's "powerhouse" is loam to the world's first skyscraper. bat plan's gotham city was based off this town. and it is where historic route 66 originally began. can you name that city? i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options.

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fearless little feline named nanny who acted like a total boss when a black bear wandered on to her family porch up in eagle river, alaska. here she is single-handedly lungingality the bear who got so scared it actually fell of o the porch and ran back into the woods. that cat certainly showed him who's the boss ceo and master! nice work manny. there it is again. >> my cat yesterday was staring down this big ugly raccoon in a tree. i don't know that the raccoon was as scared as the bear was. that's nothing compared that's hilarious. time for our "powerhouse." we're talking about one of my favorite cities in the country -- chicago. with us today is colin henson. median sale price $275,000 inventory, 11,000 homes and

properties listed on the market for an average of about three months. 89 days. our first listing is 1857 west diversy parkway. what neighborhood is this in? start there. then describe the property. >> tyler, this is in the lake view neighborhood. it's like we said a three bedroom, two-bath condo. it is on the top floor so this unit actually has its own deeded roof deck to it. the only access to it is for owners of this condo. even though in chicago that we have these cold winters, we find that having these deeded roof spaces and spaces add a lot of value to the unit. probably in this case $50,000 or $60,000. the unit's 1,800 square feet. this unit has granite countertops, beautiful dark cabinets, marble bathrooms. brand-new floors. this building right here was built in 2007.

it's part of a nine-unit condo development. >> you said what neighborhood it's in. what is it near? what would i know that's near it? >> so probably right there you're probably about a half a mile from wrigley field. also a half-mile to three-quarters of a mile from lake michigan going straight down diversey. a neighbor like that is maybe a first-time home buyer, maybe ready to have children has one kid there and moves up in the market. >> second listing, 2830 west inglisting, 1830 west warner. $1,075,000. tell us about this one. >> that's a developer actually bought that as an existing two-flat. they wrapped the house in hardy board to have that nice clean nantucket look. they completely gutted the interior. what i like to call that is our high-end high-design chic.

like pottery barn with a twist of a little bit contemporary. that's a very family oriented neighborhood right there. basically our buyer for that is someone who's living in the diversey type condo looking to move up a little farther north. that's about a mile north of diversey. it is for the buyer that wants to come in and they don't want to do in he work to a house. it is completely turn key. >> quickly to the "powerhouse" of the week. known as a penthouse, $3.7 million. taxes yet to be determined. four beds three full and two half baths. 4,300 square feet of beautiful living space. take us through it quickly. >> this building right here was 1 00,000 square foot renovation of a loft downtown chicago. this is the most high-end loft renovation that we've ever seen in the city of chicago. that is a spectacular unit. it is on three levels. the ceilings are 12 feet. extremely high-end finishes. it is done by one of the best developers in chicago, lg

development. it is just an unbelievable project. we have 41 units there. we've already presold 19 of the 41 without even a sales center. >> that looks spectacular. love it. over to dom for breaking news. right now shares of health insurer humana halted for a volatility trading curve. again this is not news. this has affected the stock has spiked up so much that it has been laltedhalted until things calm down a bit. bloomberg headlines saying aetna is possibly close to a deal to buy humana. remember the "wall street journal report"ed back on the 20th that the two signs were talking. we also have some more headlines as well coming out of this whole situation here that possibly cigna had made an offer to take over the company as well at some point but the board thought that the deal from aetna made more sense so again, we're watching a number of these headlines come through.

nonetheless, shares of humana halted right now for a volatility trading curve, sara. this is not news yet but this again, on a bloomberg report that we might have a deal possibly close between aetna and humana. again this was previously reported by the "journal" last week. we'll bring you more news when the stock reopens and when we have more details, sara. >> deal speculation swirling around these insurance companies. thank you, dom. it is not just insurance companies. hospital stocks soaring on that supreme court ruling in favor of obamacare subsidies. health care the best performing sector already this year up 11% so far, continues to be so. but not all health care stocks are created equally. how to trade this red-hot groups with etfs. that's still ahead on "power lunch." y dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands

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share of medical marijuana company gw pharmaceuticals up today, nearly doubling so far this year as it heads into a critical phase 3 trial for a key drug tonight cramer's got the exclusive with its ceo on "mad money" to discuss the company's next catalyst and whether thc can provide some tlc for your portfolio. >> all right. sounds like it's worth a shot. here's this hour's "power

points." boeing and lockheed in a pitched battle with northrop grumman for a $55 billion air force contract for the next generation, maybe the last generation of human piloted bombers. health care stocks soar on the supreme court obamacare ruling that allows nationwide tax subsidies to help poor and middle class people buy health insurance off the federal exchanges. and french taxi drivers riot in paris over uber's rise. consumer spending up .9% last month. do you feel confident buying big ticket items? what do you say? 26% of you say yes, i'm confident. 51% say no don't give me any big ticket items. 22% say i'm a saver, not a

spender. more breaking news on humana. we've had in just the past few minutes humana shares reopen after that volatility trading curve. they are up by about 7.5% so a little bit below where it was when we saw that first spike on headlines from bloomberg again that aetna might be close to a deal to acquire humana. possibly that cigna had been involved in formally bidding for the company as well but humana's board seemed to like the aetna offer for the company better off. again, shares off their best levels of the session so far. also other insurers as well. watching cigna as well as aetna shares. everybody's moving to the up side here. not just because of this supreme court ruling but now we have some added deal speculation to throw in to the health insurer side of things. shares of cigna up towards their best level so far up by about 2%. we'll continue to monitor the developments here on the stock. humana shares specifically, just want to point out, 2.8 million shares have traded in humana so

far. on an average day over the last three months you get a little over 2 million. we're already a full day ahead of the average trading volume. >> lots of excitement in health care today. wall street continues to watch how things unfold with the greek crisis. stocks are struggling to hold on to any gains today. let's bring in the head of global multi-assets with us schltusaa investments. are you surprised we're not seeing more negative reaction to greece or positive reaction to better u.s. economic data? >> no not really especially when you think about the news coming out of europe about greece. this has been such a long slow-running negotiation that everything is telegraphed. the market has more or less priced in an eventual resolution with some kind of a package being agreed upon. so i think these day to day gyrations aren't really -- in

the news aren't really moving the markets as much. you did see a bigger move earlier when it looked like they actually had a deal because you started to see some compromise on both sides but i think the market wants to see the money before they start moving in any significant way. >> thanks for running us through some of the market action. you are overweight europe through some etfs that track germany. school's out for summer but we're already getting new forecasts on back-to-school shopping. the retail stocks that are set to cash in the most. that's coming up next.

we got a big hour ahead including a big bull/bear debate on one of america's top companies. it was bound to happen -- and it did -- sports betting, investing, all coming together. plus more on this breaking news of the deal eventually for humana. we say it is a big hour on tap. >> school may be out for summer just a few days ago in the case of my son's school but parents, some at least are already thinking about back-to-school spending in the fall. according to a new survey they are looking to spend more but

differently. cnbc.com's christina gustavson is here. more but differently. >> early polling by the national retail federation has found parents of both younger and college bound students are expecting to spend more this holiday but as we've seen over the past couple of years, the trends are shifting. what we're seeing is parents are getting out there, doing searches earlier but are only stocking up on essentials. things kids definitely need for the first day of school books, shoes, that sort of thing but they're waiting on apparel. >> how much more? do we know how much more they are inclined to spend? >> they do not have the actual figdz figures out yet. that will be in a new report out in july. >> spending patterns will be different. seems to me -- we're talking about this just three days after my son got out of school. >> it seems to be the trend. things start earlier but ironically enough they are also extending longer. what a lot of parents are doing is parents are waiting until holiday promotions kick in.

>> christmas holidays. >> christmas holiday promotions. >> we're seeing promotions for christmas holidays starting to kick in at the end of october. a lot of parents are, hey, our kids aren't going back to school until the end of fall. we'll hold out on those essential items. >> let's talk about retailers that may do best. if you got some ones tell us about those. >> one analyst told me that he expects american eagle and urban outfitters to do well. he's seen a lot of improvements in their merchandise the past couple months and he expects those trends to continue. arroweropostale has ordered more for its stores. this analyst was iffy whether that was a good bet. abercrombie & fitch is another name that expects trends to improve in the second half of the year. >> they've got from hot to not-so-hot. maybe they'll get their mojo back. >> read more online. now that will do it for the first hour. brian, over to you.

tyler, thank you very much. sara eisen is going to stay with us all for the next hour. 2:00 on wall street 11:00 a.m. in beaverton, oregon. i am brian sullivan. dow is down right now four points. not a big move for stock market overall. still there are a lot of stories out there. we begin with health care because until a few minutes ago our top story was the supreme court upholding obamacare subsidies effectively upholding the president's health care plan itself. but now there is new information on possible deal activity in the sector as well. let us get right to the breaking news desk. dom chu. >> to bring you and everyone up to speed on what's happening with humana shares they are currently up by 7.25%. $197.58 the last trade there. about 4.3 million shares have vaded so well in excess of the average daily full-day trading volume of humana shares. headlines that bloomberg is putting out right now that humana is possibly close to a

deal to be acquired by competitor aetna. now the interesting part about these headlines is that they imply that cigna, another large health insurer, had also made a possible bid for the company as well, but that the board of humana favored the deal from aetna. it go eses on to say deal talks continue right now and a deal could possibly be done by as early as this weekend. shares did trigger a single stock trading halt because of the volatility around those particular headlines. they were up by 8.5% there. you can see on your charts right there it is up about 7% now. off the best levels of the session. we also want to point out what's happening with shares of cigna and aetna, united health care as well. they were all catching a bid on the heels of the supreme court ruling on obamacare. but they've extended some of those gains towards the best leflgs levels of the session. we'll be watching all the big health insurers throughout the course of the afternoon for any new developments and of course brian, we'll bring you any of those details when they become available to us here.

back over to you. guess what? steven halper covers the insure insurers. your take on that report. >> on the aetna/humana deal there's been a lot of speculation around consolidation opportunities. last week we saw anthem or over the weekend we saw anthem make a bid for cigna and humana's been speculated about as well. we don't have a great amount of insight just yet but humana has an attractive franchise in the medicare advantage market and it would be a nice fit for aetna. >> we talk about these names as if they are all the same. they are not. you bring up a very important point. humana's got that huge medicare and medicare part d aspect to its industry perhaps bigger as a percentage than any of the other companies. does that make it different and more attractive or do you view all the companies really with the exception of unh as a takeover target?

>> the managed care industry is relatively attractive. humana is attractive balls of its franchise and medicare advantage. that market has gone -- undergone some change over the last couple years and profits are poised to increase over the next several years and you see more and more seniors electing to choose medicare advantage. all things being equal, it is a growth industry. >> so if the report is true aetna goes after humana. say something is consummated. headlines also suggest that cigna maybe wanted humana. that will leave cigna now out in the cold. i don't think you cover cigna. can you comment? do you think they'd then go do a deal themselves? >> again, you're correct, i don't cover cigna but we cover anthem. we put out some research earlier this weekend -- earlier this week suggesting that cigna with its franchise in self-insured employers would be a good fit for anthem. as the management team has laid out, presents a very compelling

synergy with cigna. again, we don't know what cigna ultimately does but anthem would be a good fit. >> all right. we'll leave it there. buddy, we appreciate you flowing with us this breaking and developing story. do appreciate that. >> you're welcome. now let's continue the health care theme. it is a major story today. frank morgan, managing director with rbc capital markets covering the hospital stocks. frank, obviously the market is viewing today as a big win for the hospitals stocks. tenet is up 14%. what is your take? is the market being overly exuberant to the supreme court ruling? >> this is certainly good news for the hospital sector. you are right, as a group up about 10%. some of those names are up a little bit more like a tenet in the community that's largely to do with leverage in their enterprise value but certainly a good day in the stocks. i think that's reflective of a better visibility in the sector going forward. certainly better visibility about uncompensated care volumes of insured coming out to

these hospitals. i think it is really good news for hospitals today. if you compare this on ot first scotus ruling there was about a 7% group reaction positive on the day of. today the group up about 10%. even more incrementally positive reaction today than back in 2012. >> tenet health care was a $3 stock just a couple of years ago. the stock is up literally 1,500% in the last let's call it five years. okay? i understand things were coming out of the great recession, things were dire for a lot of companies. is the business for tenet and other hospital companies really that good? does it reflect that kind of a gain? >> well, i think you can look at appreciation but you can also just look at valuation. that's probably how i would look at it. but certainly in general the affordable care act has brought a much improved environment, operating environment, for the hospital industry. lower levels of uncompensated care, about 8% of their volumes historically were uninsured. today that number's dropped to between 5% and 6%.

that's a huge increase in the amount of paying business all hospitals are seeing. another thing i'd point out is the economy is actually better and companies like hca quite honestly have done much better have seen much better volumes even in the absence of the impact of the affordable care act. yes, fundamentals. the backdrop for the business certainly has improved. >> why is the economy relevant to a hospital stock? >> well certainly kind of goes back to. -- good employment market means people have jobs. hopefully they have a health care benefit that goes with that. that hopefully addresses the underlying issue of uncompensated care. certainly it ties in there. and in the case of economies, usually hospital volumes have historically been tracked to how underlying population growth has gone. >> things do better people have kids. >> absolutely. that's an indicator that hca watches very closely and there are more births. guess what? there is better volumes for hospitals. >> we have the baby boomers and the baby boom which has boomd

the hospital stocks. frank morgan appreciate that. let's get back to dom chu with more on a news alert. right now disney -- thanks to blockbusters from marvel like "the avengers," "also "inside out," has passed the $100 billion mark for u.s. gross mfb receipts in record time. it took 174 days this time around to bring it to the market. that beats the previous record of 188 days. the company behind big studios like marvel pixar, lucas film growth receipts in record time in a calendar year. interesting news on the front of disney. >> almost 1%. >> one second. i'm going to be debbie downer for a second. with inflation, shouldn't it always get faster every year? because the tickets go up in price? >> they could. that's a point here but you can't have that kind of receipt if you don't put out movies.

right? i mean that's the point, too. if you don't put out a blockbuster movie, you can have all the inflation you want there and you're never going to get the kind of receipts that you have for a billion. i get what you're saying. but still when you have a few different blockbusters coming out already so far this year inflation is certainly part of the story but so is the "avengers, age of ultron," and "inside out." >> i'm just being a pain. >> i know. guys we're also watching shares of nike ahead of today's earnings. shares down about 1% but they are up double digits almost 40% over the last 12 months. let's have a debate on this stock and whether you should be owning it now. sam poser, also lorn vasaleska. start with you, sam. i understand that the valuation is very high. is that what gives you pause about this name? >> i think the valuation is high

and like sort of all of the good news we really don't just see a lot of stuff that's out there that is not already in the stock right now. we also think that if the u.s. business decelerates a little bit, people may take a read on it that things aren't that good. we think things are quite good. we think nike is a great company but we just don't think this is a place to get involved in the stock. >> loren, i was giving sam a little bit of a hard time because nike is a company that's really firing on all cylinders, overcoming headaches like the stronger u.s. dollar. why do you think there is still room to run? >> we've seen very strong border growth with regard to key suppliers for nike so we continue to be bullish on the name. the second point i think something that's a little bit underappreciated with regards to the market is the lower commodity costs out there. cotton is a key component. it's currently at 60 cents a pound versus the historical norm

of $1 a pound. there's also another factor oil inputs. oil inputs are very important for the sportswear industry. if you look at key components like nylon, be pleftpolyester and synthetic fabrics, oil is a keel component key component. we estimate for nike 22% of their inputs come from oil. oil is at a record low for the last six years. >> they just signed this eight-year deal with the nba where they're going to actually be able to put swooshes on the uniforms for the first time. we're potential will i looking at another product release ahead of the olympics last year. remember fly knit was announced really helped the bottom line the last time we had the olympics. do you think this is all priced in? >> first of all, i think fly knit while a great idea i would think if fly knit went away today it wouldn't affect the bottom line at all at this point. i think it is all about innovation. i think they're innovating great. china's going to be helped a lot by the nba deal actually probably more than the u.s.

but that again is a story that's 2017, 2018 and they're going to be spending a lot of money to invest against the olympics. i think everything laurent said is absolutely correct. but then you have the dollar working against you and these guys are doing whatever they can to support the brand. while there is a lot of triggers they can pull they rarely pull as many as people think they do. >> also jordan is very strong brand. >> brand jordan is unbelievable. sam and laurent, good debate there on the stock that's valid now at 30 times earnings which is historically pretty high. sara thank you. a funny thing has happened on the way to athens. despite much hand wringing over what is happening in greece the actual market hasn't really reactsed that negatively. case in point -- the dow is up 1.5% in the past three months. bond yields are higher than a few months ago. the so-called fear gauge, the vix, is down 5% just this month and is near extremely low levels.

let's get to the bottom of all of this with gibson smith of janus capital. thank you very much for joining us. you are the cio of fixed income but greece dominates everything right now but the market is not expressing a lot of fear. how come? >> well i think there is some fear around greece. you see that in the volatility in the fixed income markets. volatility on interest rates is running about two, three times that of equity volatility. i do think there is some fear around greece but underlying the overall markets right now, there are a lot of positives related to what's happening with risk assets and some concerns about what happens in the future. >> your job is to worry about a lot of stuff. i'm sure you do. but if i have to pluck out, gibson, and say what's the one thing you worry about the most right now for your clients and investors in fixed income it would be what? >> without a doubt, the biggest concern we have right now is around the liquidity in the fixed income market. the regulatory environment we're in, the issues that we're facing

post-'08 are finally coming to fruition in the fixed income markets and the ill-liquidity of the markets right now. >> this morning on "squawk box," we talked about defineing ill-liquidity and fixed incomes. what does that mean for mom and pop? >> it's really hard to quantify liquidity in the fixed income market. the way we think about it at janus and the way my team looks at liquidity in the markets, it is really a gauge of how quickly can we exit or enter a position in the marketplace. over the last ten years we've been able to freely trade $25 million, $50 million, $100 million positions in the market but today those positions have shrunk to $1 million, $2 million, $3 million on the bid offer. liquidity is really a gauge of how quickly can we enter or exit a position. we are working in a very ill-liquid market right now. >> does greece default?

gibson, you think greece is going to default? >> it's lard to tell. i really think that the ecb and all the folks working on the restructuring of the greek situation are working on a way to kick the can down the road and buy some time to hope that things work out. >> how long is the road? >> very clearly a focus for the markets. well, i think at some point, with any type of overleverred situation you have to come to a conclusion on whether you're really going to restructure or default. they need time. they absolutely need time. >> i'm going to take that answer then as a probably not or at least not any time soon default. correct? would that be fair? >> i think it's in the best interest of markets just to let this go let it have some time on it try and work out a better resolution that's acceptable for not just european union but for overall markets. >> gibson smith of janus, a pleasure. thank you very much. do appreciate it.

let's not forget the marathon was invented, by the way, in greece. here's what's on menu for the rest of this hour. london falling. there's no more room to build up. so many much are going underground. maybe it could cause a clash. budweiser, the parent company of may owe you money. we'll tell you what's wrong with the beer. and it is finally here. the intersection of sports betting and investing. you knew it was coming didn't you, america? the full details ahead. ♪ mamas, don't let your babies grow up to be cowboys ♪ ♪ don't let'em pick guitars and drive them old trucks ♪ boys? ♪ mamas, don't let your babies...♪ stop less. go more.

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with zoning laws in many high-end communities preventing the rich from building up they're going underground. literally. wealth editor robert frank is here with more of the bunker mentality. >> this is a really cool house. we traveled to a house just side of l.a. that had its own luxury underworld five stories below ground. alex mcloed gave us a tour of the mega home with the price tag of $53 million. on the outside this may look like a modest one-story home but looks can be intentionally deceiving. >> this house has many secretes. >> the 50,000 square foot home has nine bedrooms 25 bathrooms and a secret underground world. >> now i'm going to show you the subterranean surprises. >> 20 feet below ground there is a 10,000 square foot turkish spa that includes a subterranean pool. 30 feet deeper or five stories below ground there is a tennis

court that turns into a ballroom. >> whoever buys this house for $53 million, they're going to have to be comfortable spending time underground. >> a portion of their time. >> if you're buying in l.a. you want the sunshine. >> that's right. i mean we spend the majority of our time outdoors. we're very active people. we take full advantage of our eight acres. >> now many towns are cracking down on underground building so this house would actually be impossible to build today which makes it even more valuable. another reason i like this house, it has two tennis courts one outdoor and one indoor. maria sharapova plays on that indoor court when it is range in l.a. >> who owns the house? you can't say? how do -- >> we can't say. >> how do they build it? did they build the house then go down? >> the concrete alone is enough to build an entire road from l.a. to san francisco. just the concrete used to build that house. >> they had to have built the

lower levels first because i don't know how they can get down that deep for that level of detail. >> they did. because the house was there first. they just kept digging. mountains of dirt came out of there. amazing house. >> it is unbelievable. that's the cool -- trying to put my jaw up on that story. it's insane! tell me though $53 million. tell me there's an elevator. >> there's an elevator. there are two elevators. that's the secret passageway. there are two elevators. they're high-speed. again, five stories below ground. a tennis court that converts to a ballroom? that's crazy. >> it's fantastic. that is really cool. robert, thank you very much. this though is a serious story because there is a big problem kind of related to this in london. 42 fatalities among construction workers in england in just two years. 17 deaths as a result of collapsing evacuations over the past decade. let us bring in an architect at lecturer at westminster university in london who's

seeing it happen over and over again across the pond. when you look at london toby it is in some ways more tightly packed than any city in america maybe with the exception of new york so the rich can't go out or up, they're going down. how serious of a problem is that type of construction for you guys? >> that's right. people are building down. there's no space in london and that's where you can go. where else can you go? >> but you know you guys are a lot older than our cities as well. you got a lot of secrets. catacombs. there's obviously some risk to people building these things. you believe this is something that will be put to end in london? >> i don't think it will be put to end. kensington and chelsea is one of the most densely populated areas and it is filled with a lot of foreign investments and a lot of very large rich houses. people in that area do tend to dig down. the borough has just put a blanket on just digging one story down. >> i'm going to show the meager extent of my architectural

knowledge with probably a very stupid question here toby. >> okay. >> if everybody in one area is building down, what's holding it up? >> a lot of concrete. >> i mean it's got to change the whole structural dynamic of certain areas. no? >> well that's what happens. that's what happens basically and that's why they're starting to clamp down on it. >> is this a massive industry? robert frank just showed us this one crazy house in los angeles. but is this a huge industry in london especially chelsea and kensington? >> it definitely is in london especially in this particular borough. i think there is a ten-fold increase of people building into their basements in the last ten years. so it is significant. 450 applications to build last year. it is a very small borough. so, yes. >> but do you have a tennis court five stories underground that you know of toby? >> well, there they're definitely here yes. >> you guys have everybody first. we do appreciate you joining us

here. toeby burgess. our top state for business has been revealed. it's minnesota, don't ya know? but which state has the best workers? plus we're going to belly up to the bar and talk beer because anheiser-busch may owe you some money. yep, a beer company may have to pay you. what could be better? norm? we're back after this.

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welcome back to "power lunch." we just took a leg lower in the dow. it was pretty much trading unchanged all day. it just went down about 70 points in the last few moments. 2:00 we started heading south. no real headline being discussed right now. the s&p 500 down six points now getting some real traction on the downside down .3%. in terms of the better performing groups on the day, telecom and health care were the winners. on the lagging side energy industrials coming up from the rear after what was a pretty quiet day on wall street. all of a sudden we're getting a real move lower here. >> but sara stick around. i've got some big news around cincinnati for you. that's a tease. all right, america. when is the last time that you had a beck's german beer or

maybe a killian's irish red or even some german chocolate cake? we'll get to that in a second. dom chu is back. eric. this is a story we have got to hear. three plaintiffs from florida received preliminary approval of a class action lawsuit against the producer of beck's beer which happens to be anheiser-busch. the lawsuit points out that the label on beck's says beer "originated in bremen germany." but below that it says it is made brewed in the usa. so we are now suing apparently over false labelling. eric, have you some amazing examples of how we are getting snookered everywhere. >> it is not just about beer. red stripe wants to say they're jamaican. they've even sponsored the jamaican bobsledding team. they're from wisconsin. >> red stripe is brewed in wisconsin. i'm going to the brewery. foster's is american. red stripe is american. there are other lawsuits. in fact blue moon says they're artfully crafted.

they pretend to be a craft beer. the best examples aren't even about beer. haagen-dazs founded by a jewish couple. they wanted the company to sound danish because of how denmark treated are the jews in world war ii but haagen-dazs is from the bronx. german chocolate cake is actually from a guy named sam german. that's his last name. he's an american guy. >> this is fascinating. >> so the beer companies are just doing what everyone else has been doing. >> it is marketing. right? this isn't the first time aen highs anheiser-busch has run into this problem. they do beck's but they also do kieran. a japanese label. it means one large, large one. so these guys -- anheiser-busch basically has the license to distribute in the u.s. for the japanese beer. you think it is a japanese beer and it is a japanese beer and the label is japanese be with

everything else the company is japanese. it is brewed in southern california or in virginia under the supervision of brew masters from japan. >> how do you get the money back? how do you get the money? >> the claims are -- >> we are by the way, running out of things to sue over in america. this has got to be hopefully near the end of law. >> it's either 50 cents a six-pack if you can prove you paid for that many six-packs or $12 if you cannot prove you bought that many six-packs. >> you realize all over america there are probably thousands of people spending days and hours just going through labels to see how they're being screwed over so they can sue for 50 cents. thanks. appreciate the story. chug this. it's absolutely apple juice. >> that looks like fun. we showed you in the last few moments we took a leg down. been talking to a lot of traders on the floor. no real headlines. obviously there's general anxiety about greece the lack

of progress in the european debt talks but we do see the dow down 70 points now. s&p 500 down 6 1/2 or .3%. the nasdaq and the russell 2000 lower as well. the russell down .4%. we are taking you live to the new york mercantile exchange for the close of trading for oil. can it hold above $60 a barrel? energy, by the way, one of the biggest lag groups on the s&p. we'll be right back on "power lunch."

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hello, everyone. i'm sue herera. here's your cnbc news update at this hour. congress overwhelmingly passing a worker training program just week after it was blocked. the president called the trade bills a win for workers and said that he will encourage congress to pass robust trade enforcement legislation. iranian president hassan rowhani telling political party representatives that the country will continue its nuclear talks with world powers according to the guidelines of the leader of the islamic revolution. his comments come as negotiators try to resolve their differences over iran's nuclear program. bill gates meeting with

french president france swa hollandeo hollande in paris. the epic drought in california is having at least one positive impact. low river levels and shallow creeks are making it easier to pan for gold apparently. california is now in its fourth year of an extreme drought. maybe a little bit of a golden lining there. . that's the update for you at this hour. we've got new footage coming in to the newsroom of the massive explosion that began an isis assault on the syrian border town of kobani. the car of a suicide bomber detonated near the border gate that separates syria from turkey. there are 15 deaths and over 70 00 injuries reported as a result of the assault. oil steady around $60. get to jackie deangeles.

>> at the close we saw wti finish at 59.70, down about 1%. still continuing to cling to this $60 level. can't really decide where to go. the question is what happens to crude in the second half of the year. what's interesting is a data point out of opec's annual bulletin for 2014. opec drew the line in the sand saying we're going to hold on to market share and sacrifice price. that bulletin actually shows that their market share hit a 10-year low. maybe this isn't necessarily a strategy but it potentially is opec's last option here making shale here in the united states the swing producer. but at $60 a barrel shale producers are doing just fine. in facting eia reported production in the united states back over 9.6 million barrels a day. what we do know about opec is its exports to the u.s. have certainly gone down. its exports to asia have gone down as well. perhaps this pricing war is hurting opec more than it is hurting the shale producers and

we'll continue to see this range play out until shale starts to bring that production down and we see a little bit more price action volatility. but this really is a sea change brian. it could impact what we see for oil prices not only just for the second half of the year but for future. >> 9.6 million barrels a day. rigs go down production goes up. all right. time for "trading nation." it is a nation because traders trade better together. boris schlossberg, and craig johnson. craig, first off start with the technicals here. these stocks have gone parabolic. >> what we're seeing with the charts is the health care sector has clearly been the number one sector in terms of performance here to date. lot of people had questioned that at the beginning of the year. when we look at five-year relative strength trends unweighted and weighted if you figure out large and small caps

they're very close to making five-year highs with no sign of slowing down. we think this health care trend and outperformance is going to continue. when you drill down into the ihf, the etf you are looking at health care providers with be we continue to see a chart that's making higher highs, higher lows we're above our 40-week moving average, and not seeing sign of a trend change yet. from a chart perspective, we want to continue to remain long this sector and remain long this etf because that's providing positive help for one's portfolio. >> boris, what is the long-term trade here in if he? >> i think this is one of the cases where technicals and fundamentals really line up. we've clearly had a secular change toward health care with today's ruling very much helping the sector. even after you have the positive news the continuation actually goes for several months forward so hospitals, insurers all of them i think will benefit

significantly from the ruling today. but i think long term what's interesting here that's kind of happening is that you at the same time have a consolidation in the industry. i think ironically enough the -- we're moving towards a single payor but in a very different way where we're probably going to have two or three major insurance providers in a utility like fashion somewhere down the road as you have support now on bottom from consumers and now you'll essentially have two or three producers at the top and the market is going to consolidate. >> if this aetna/humana deal does happen you won't be far off. for more "trading nation," head to our website. sara. brian, minnesota the land of 1,000 lakes and also our 2015 top state for business. scott cohn joins us in the next block to take a look at which states have the best workers. >> i'm scott cohn at the mall of america in america's top state for business minnesota. in a moment we're going to look at one of our key categories.

our study lets us take the states through their ups and downs. allow me to illustrate. >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor.

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insurance. hundreds of firefighters battling blazes in dry, hot california. it is an especially terrible time for the fires in the golden state because of the drought. we've been warned this will be a bad fire season in california. those fires are raging. minnesota boosting into the top spot in our study for best states for business this year in part thanks to its stronger labor force, a category that was more important this year. scott cohn is in minnesota. >> reporter: 10,000 lakes here.

don't undersell them. there's a lot of lakes here. there's also a lot of available talented workers, that helps. in a category that took on new importance in our study this year because of something called the skills gap. you know we have about 9 million, give or take people who are out of work and yet employers are having a hard time finding skilled workers to fill open positions. that's the skills gap and that's why it's become such an issue and such an important part of our study. we have a piece about that on our special website, topstates.cnbc.com. minnesota comes in 13th in the category this year. this is a very union friendly state. top five work forces according to our study, five new jersey. this is an area where new jersey's higher than average unemployment rate helps. it means more available workers and the work force in new jersey is very well educated. same situation in connecticut. very well educated workforce and connecticut workers, by the

numbers, are among the most productive in the country, partly because it is a state with a lot of big-money industries. we look at economic output per job. that helps connecticut. georgia is a right to work very union friendly state. it was top workforce in our study last year. drops to number three but still very strong. in maryland they're investing a lot in what we call human capital. they're putting a lot into workforce development. that helps maryland with the runner-up spot. north dakota they don't have high unemployment, but workers are staying there because there is so much going on in the economy. we looked at migration as part of this workforce ranking. lots more on topstates.cnbc.com. see howie you are state stacks up in this category and all the others. >> thank you very much scott cohn. you can also visit the website

powerlunch.cnbc.com. we know minnesota's the top state for business but how is it doing in the stock market in here on "power lunch" we've done something pretty cool. we've created our own city stock market indexes, we call them the "power city indexes." they feature 12 biggest public companies in 39 different city and metro areas around america. all we got to do is rup a quick spread sheet and see how any area is doing from a stock perspective. minneapolis is doing pretty doggone well. united health target best buy, general mills and eight others are all based around minneapolis. up an average of 12% over the past past 12 months. not a bad return. san diego is still way out in front. averaging 75% mostly because of biotechs. sara, this is what i teased for you. cincinnati is doing great. up 20% over the past year. you got gains in kroger omni

care, and others. >> p&g not so much but kroger has been on an absolute roll i would think boosting that city. >> cincinnati is actually one of the top six6 of the 39 metro indexes we tracked. what do you consider putting your money into sports gambling fund? like a mutual fund? thanks to a new nevada law you actually can. how does it work? we'll explain when "power lunch" returns. >> announcer: the cnbc real-time exchange market snapshot is sponsored by the interactive brokers. (vo) me? i don't just wait for a moment. i watch for the perfect moment. the one nobody else sees. 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

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shares of medical marijuana company gw pharmaceuticals up today nearly doubling in 2015 as it heads into a critical phase 3 trial drug for a key drug in the pipeline. tonight cramer's got the exclusive with the company's ceo on "mad money." they'll discuss the company's next big catalyst and whether you should be investing in gw. brian. sara thank you. time now for "street talk." analyst recommendations that we

find every single day. first up amazon.com is the run done? evercorps isi thinks so. they say the stock is nearing than point so they can't increasing capital investment by amazon is making modeling on free cash flow increasingly difficult. >> starbucks target increase to $63 from $55 at piper jaffray following a meeting with management. piper reiterating shares as a 2015 top pick. increased confidence in the pipeline of global initiatives and its track record of consistent operational execution. rating remains overweight on starbucks. >> third stock is l brands. bbent t starting coverage with a buy and $100 target. research notice titled, "boos "boosting the entire earth by

two cup sizes." it owns victoria's secret bath and body works. they like the recent work toward international expansion. that 100 target applies 15% up side. >> fourth stock burlington stores. stockaded to the u.s. one list at bank of america/merg lynch. retailer up 66%. shares remain buy rated. target is $70. that would be another $17 to go from here. >> go new jersey. >> today's under the radar name new park resources. nr. it's an oil and gas related company. they make equipment. raymond james upgrading to strong buy from outperform. they did cut the target from $13 to $11. 40% up side. newpark resources. with that we say adios. >> sports betting and investing

are about to come together. at least in nevada. nevada's governor signing a bill onto law which makes it legal for out of state residents to have access to the state's licensed sports books through sports betting investment funds. basically, could you put money onto a fund managed by one of the best handicappers in vegas. quinton singleton with cg gtech gtechnology. if i gave money to a fund, am i betting on one person's ability to gamble better than i can? >> good afternoon. yes. what we've done is created the opportunity and make the analogy to mutual funds. you could domicile sports fund here in nevada. you have a fund manager who makes those picks for you like you would find a mutual fund manager taking that opportunity. >> it's hard enough to beat the overall market. if you are a mutual fund

manager, but not every stock goes to zero right? you could still do okay and there are dividends and stuff. do you believe there are sports handicappers that are consistently good enough to merit anybody else's money? >> we do. i think what we are looking at is exact viewership of cnbc. traders, sophisticated investors, fund managers. they have the algorithms data and technology and they can price markets and do beat the markets. we expect them to locate to nevada and become those fund managers for sports fund. >> how much control would an investor -- i want to give my money to some guy that runs a fund there. can he or she bet on anything they want? how much control will be over this? sorry, mr. sullivan lost all your money in the eighth race in santa anita. >> it's a fair point. investors do bear their own risk. the way we drafted the law and we are working through the regulatory adoption process now,

we didn't place limitations with respect to what a sports fund manager could invest in or trade on. you could have a guy who is a basketball guy. you could have a woman who is a football-only person. it's the fund manager's expertise as you see any other funds would you find that drives the market. >> are these going to launch? are they ready? do you know of any? >> we are talking to people right now and we have the goal of beginning to onboard sports funds before the football season kicks off later this year. >> maybe within two months or so we would have one of these up and running. >> that's our goal. we are working through the process now. there's a lot of open questions. we should say kudos to nevada. we are fortunate to have regulators and a governor and legislature working through this process. >> thank you very much. interesting stuff. our own power lunch jake novak

running a piece on this topic. markets are starting to trend higher. investors keeping an eye and ear and nose on greece.

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up 1% over the past three months when this greek drama started to play out? >> i think people are believing the ecb has the power to step in and stop the problem or the contagion going beyond greek borders. i don't know how convinced i am of that. it seems like the market is. even if greek banking system and the greek bond market were to collapse, the ecb would ride to the rescue if anything happened in spain or portugal or italy. that's the market's opinion. little bit of whistling by the grave yard here. appears the market is relatively unconcerned. >> consumer spending jumped the most since august 2009. data appears to be better. multiyear highs for the housing market industry. when will the market focused on fundamentals and improving

economy instead of paying attention to greece and higher rates? >> i think they are. it seems to have the greatest income in equity income securities. people are pricing a significant rise in interest rates. the ten year backed up from 2% to 2.4% many of the traditional high-yielding equity areas have taken water this year. you've got all those groups down 5%, 10% on the year. people are pricing in 2.3% 10-year. in terms of overall valuations, 18 times forward, you can argue the markets anticipated that some time ago. we are getting economic data maybe the market anticipated back in q-4 and q-3 of last year. >> steve, we've got to leave it there. thank you very much. >> thank you. sara thank you. >> always happy to join you.

>> nicest thing anybody has said to me all day. >> you had a long day. >> dow is down 55 points. oil close below 60. "closing bell" starts right now. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. major news in health care. supreme court upholding obamacare federal subsidies this morning and breaking just over an hour ago, whether it's related or not, aetna is reportedly now closing in on a deal to acquire humana. we'll tell you what this means for the rest of the insurance space. >> huge moves in