10% cash in our equity portfolios but i don't think we'll put that to work today or tomorrow. the referendum is out there. even though mobbed's solved 2% is still a better day to buy. >> "power" begins now. "halftime" is over. "power lunch" and the second half of the trading day start right now. lows of the day for the markets. welcome to "power lunch," along with mandy drury, i'm tyler mathisen. the markets are, or have been mostly higher today but are puerto rico and greece still putting investors on shaky ground? are we one statement, one e-mail, one letter away from a big air pocket? test pilots dropping bombs on the new f-35. lockheed firing back saying this plane is safe and it will be the very best in the sky. mortgage rates have been moving up while mortgage applications are moving down.

what's the bottom line for housing prices? the usa? we mentioned at the top of the show we aret session lows but we are still moving higher with the possibility of a deal in greece hopefully in the cards. let's look at the numbers. the s&p 500 is currently up by six points and the rug sell 2000, the small caps is in the red. the 10-year yield currently sitting at 2.147%. the euro at $110.74, moving to the downside. in other words, dollar strength today. bob pisani is at the nyse. >> important thing is we're starting off the second half with two up trends very much intact and a down trend also very much intact. the important thing today. bank stocks continuing. remember they were big winners. the trend is up in interest rates. whenever you get a strong up trend in interest rates, banks usually move to the up side.

this trend is now continuing into the third quarter. no new highs here but again every day you get a little bit of a move up in the banks. other up trend -- health care. particularly pharmaceutical stocks. they kind of play second fiddle to biotech but they had had a very good quarter last time. they are moving up as well. the down trend -- energy. again you heard about what what's going on stockpiles increasing for the first time in nine weeks. opec production highest in a long time. they are resuming the down trend. this has been going on for six weeks. shale stocks down as well. greece does trade here in the united states. there is an etf for that grek. this the intraday. it moved down as we got word there would be no more negotiations until that referendum on sunday. as you see still up about 3%. guys, back to you. >> bob thank you. automakers releasing june sales numbers. gm, ford toyota down a bit. phil lebeau has details in

chicago. >> tyler, when you look at these numbers, it is not necessarily the percentage year of over year, june versus june. it is looking at those and keeping in mind what the overall sales pace is. fiat chrysler toyota and ford all reporting sales that were better than expected at least with toyota and ford better than expected. fiat and chrysler a built le bow and gm a little below expectations as well. fiat fiat chrysler, jeep continues to be the hottest brand among mass automakers. sales up 25% last month. for the first time ever fiat chrysler outsold ford on a retail basis. that means sales through dealerships for the first time ever. now ford admittedly had increased the number of sales that it was doing with fleet customers. talking about rental car companies, corporations, et cetera. that's why when you take a look at ford and a lot of people today have been e-mailing me saying, wait a second we saw

f-series sales drop off by 8%, is there a slowdown in demand for the f-series i don't know if i'd read that into it. the f-series did drop 8% as the company increased its fleet sales. but last month f-series average transaction price -- $44,100, up 9%. i don't care what industry you're in -- you will take that kind of a gain in transaction prices even if it means selling a few fewer vehicles. sales pace is what everybody's looking for this afternoon. if you look at what we've seen over the last six months going back to january, it's abeen a gradual increase. the expectation is for sales to come in hat aat a pace of 17.1 million and 17.3 million vehicles. all shares down today, by the way, in the trading, in part because people are looking at the auto industry and saying when are we going to see some consolidation potentially within

this group. so they aren't moving higher on the you a sewauto sales data. quickly to tesla. tesla doesn't report monthly auto sales. it does report quarterly auto sales and we should get those in the next three, four days. it will be interesting to see those numbers. shares of tesla tickling $270 a share for the first time since last december. now to the drama unfolding in greece. at this hour european finance ministers ended a conference call a short time ago. there's the parliament. they say there will be no other meeting until sunday's referendum in greece yes or no. on the demands by the creditors. greek prime minister alexis tsipras again urging a no vote but offering new concessions to creditors. angela merkel saying "nothing is possible until the referendum and europe must not seek compromise with athens at any cost." let's look at yields on the greek 10-year note.

the year to date way up. the yield is 15.1%. they have sort of bowed 50% so far this year. the etf tracking greece down 22% year to date and down 5% over the past week though it is up just a little bit today, mandy. the other big debt threat to the markets is some people saying it even a bigger threat than greece -- puerto rico. kate kelly is live in san juan. kate, what are you hearing? >> reporter: mandy, the countdown is well under way today for puerto rico's numerous borrowers to make debt payments that come to $1.9 billion by the end of the day. so far what we know is that at least half of that has been satisfied. maybe even a little bit more. one set of so-called general obligation bonds which are considered very safe for investors because of the rights that investors haven't under them have been paid. as have bonds tied to the island's electric power authority which owed $416 million. in a somewhat creative and

surprise deal that really emerged overnight after the market had real doubts about whether that obligation would be met, they announced they had extended a forbearance agreement to creditors until december which allow is more time to restructure and it will pay the $416 million with the help this is key, of some bond insurers that are investors that are going to buy new notes they're issuing to the tune of $130 million in short-term debt that will have to be repaid by december. some questions there. this is a long-term agency the roots go back to the late 1800s. it serves 1.8 million customers in puerto rico. there's no question that it is a crucially important utility here. but it is also beleaguered already by $9 billion in debt. in adding that short-term debt, i asked in an exclusive interview with their chief restructuring officer are you simply kicking the can down the road? >> the debt is something that

from the beginning i said has to be dealt with. it's not sustainable in its current form we've been making a lot of progress towards transforming prepa into a modern utility with an ability to manage itself from a business perspective and in a more flexible manner. >> reporter: now i've spoken to some markets participants today. they seem to be comfortable with this deal. general obligation bonds tied to puerto rico often regarded as benchmark trading slightly up today. you can see, people are breathing a little bit of a sigh of relief with this progress but there is still a big picture that needs to be addressed in terms of long-standing debt and no obvious solutions to get out of it. >> thank you very much kit kelly, live from san juan. now to dominic chu for a "market flash"." shares of teladoc up over 65% in its market debut. they facilitate calls between

doctors and patients. sold over 8 million shares. stock opened at nearly $30. shares trading on the snoeshgsnew york stock exchange. mortgage rates are rises and mortgage applications are falling. diana olick, that shouldn't be too much of a surprise should it? >> reporter: its a he all because interest rates moved to their highest level in nine months last week. total mortgage application volume fell 4.7% week to week. re-fis down 5%. applications for buying a home down 4%. this as the average rate on 30-year fixed rose to 4.26% from 4.19%. every time rates move up slightly i get tons of tweets saying it doesn't matter it's $50 a month more, et cetera. well,er hoo's erhere's why it does matter in today's unique housing recovery. prices. core lodge eshggic ran the numbers and

found home values are up 10% just from a year ago. investors bought so many low-end homes during the crash they cleaned out supply and drove prices dramatically higher. for homes above the national median, there are far more of those for sale so they're only seeing 4% price gains and they're not back to peak. that means buyers of lower priced homes, generally lower income or first-time buyers are being squeezed tight by prices and are therefore much more sensitive to those little rate moves. >> all right thank you diana. major and coordinated terror attack in egypt's sinai desert today. islamic state affiliated group launched simultaneous attacks on egyptian army checkpoints and an officers club. the attacks included rocket propelled grenades and suicide bombings. 50 officers and persons were killed. the air force was called in to support egyptian ground troops. at least 22 of the attackers

were killed in fighting. as you probably recall two days ago egypt's top prosecutor was killed in a car bombing. he was the person in charge of sending the former egyptian president mohammeded morsi to jail. egypt's leader said just before today's attack he would launch a full fledged assault on terror in egypt. some test pilots surrounding off about the new f-35. basically they don't like it. lockheed martin is themaker of the plane and shares are up about 16%. let's go to jane wells live in los angeles. kind of a dog fight, huh? >> reporter: well, that's what one guy is saying mandy. it is america's most expensive defense program and one that continues to fight out verbal attacks. in a blog called war is boring, an f-35 test pilot report they got their hands on claiming the new fighter cannot dog fight based on a mock battle he was in against f-16s earlier this year. jet was too sluggish, he said. he also complained the helmet was too large to move around and see him behind in the cockpit.

you are not seeing that test right now. this is general video of the f-35. lockheed martin and the pentagon don't deny the report but they tell cnbc the f-35 used in the mock battle was for testing only and did not have special stealth coding. in addition, in the real world, the f-35 isn't supposed to get close enough for dog fights. "the f-35's technology is designed to engage shoot and kill its enemies from long distances." they said in simulated scenarios with f-16s, the f-35 won because of those distances. while they are investigating how the report was leaked the candid feedback by our test community is welcomed because it makes what we do better. bottom line, it is not clear how a real f-35 would handle a real dog fight but the thinking is if a pilot got into that situation, a lot has already gone wrong. by the way, mandy, in about a month the marine corps is going to take possession of the first f-35 certified for combat. no more test being. back to you.

>> the real world hits hard. thank you very much jane wells. wall street closing the books on the first half. the dow and s&p pretty much flat. but the nasdaq did outperform. where are the opportunities in the second half? dominic chu, you've got some clues. >> maybe not necessarily the nasdaq, but check this out. two sectors, industry groups have taken huge hits to far this year in the first half. they may be due for a pop. we'll bring you five stocks in the next hour on "power lunch."

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switzerland based insurance products chubb, shares soaring by 28%. food manufacturing giant general mills reporting weaker than expected revenue in may. the company has been struggling to adjust to changing consumer tastes. the shares still up moderately. and peabody energy warning it will post a worse than expected second quarter loss due to bad weather and lower coal prices. peabody absolutely tanking like a stone down by 26%. >> wow. 80% year who date. the first half is over. the recent sell-off could be setting up a nice trading opportunity for the second half of the year so says dominic chu and he's got five stocks ready to pop in the second half. >> here's the thing. >> promise? >> no. i wish i could tell you that they were for sure going to go higher but there is our friends over at cnbc pro.

subscribers there can read about this story online. they looked at two specific parts of the market and ten stocks total. five in one, five in the other. this hour we'll bring you what's at least showing perhaps signs of life given the downturn. that's the real estate investment trusts. down 7% so far year to date as measured by the etf. s&p 500 fairly flat. some of the names that could be due for a pop if analyst target prices are met are some interesting names here. first, a diversified reit real estate investment trust, realty income. if analysts are right we have a 10% possible pop. it is yielding 5% on its dividend. pretty decent return. hcp, a health care related reit up 14%. it is yielding north of 6%. another health care related reit, health care reit up 20% if target prices are correct. it's got a 5% yield. a big private prison operator corrections corp. of america, possibly a 21% up side. it yields 6.5%.

ventas, a possibly 23% up side. those are the five stocks for this group. next hour we'll bring you five more in another industry group that's taken a big beating but could be due for a pop. >> i love the cleverly named health care reit let care reit. for more on this story, go to powerlunch.cnbc.com. do you want to move to the big apple? why buying an apartment in manhattan now will cost you more than ever. trust me i was shocked and i live in manhattan. you'll be shocked, too. plus -- >> coming up "power pitch." a start-up calling the end to the selfie stick. >> the first and only phone case that uses nanotechnology to stick to flat surfaces. >> i definitely noticed that with your case it looks like every other case. >> stay tuned to find out.

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it is turning into quite a year for ipos. high-tech health care xla conformis. 9 million shares of the custom knee replacement company going public on nasdaq. tonight the ceo will talk exclusively with jaime cramer about how new technology can continue to disrupt the medical industry. "mad money" at 6:00. it is wednesday so it must be time for "power pitch" where

one start-up has just 60 seconds to convince a panel of experts that it has what it takes to be the next big thing. hi i'm jeff. >> i'm carl one of the co-founders of the mega tiny corporation. we are excited to introduce our antigravity case the first and only phone case that uses nanotechnology to stick to flat surfaces without being sticky. emergency millions of tiny suction cups on the back of your case allowing it to stick to surfaces like mirrors, glass, kitchen cabinets white boards and metal. >> with over 2 billion pictures taken every week and over 1.2 billion smartphones sold every year, we know the market potential is huge. no more handing your phone to a stranger. no one gets left out of the picture. who wants to look foolish with a selfie stick? with our case you place the phone on a smooth flat surface, use the timer on your camera and, boom everyone's in the picture. >> in 30 days we raised over

$160,000 on kick starter so we know there's huge market potential and huge demand. we love the antigravity case. our customers love it. and we know you will too. >> welcome to today's "power pitch." i'm man duedy drury. on set, angel investor kelly hoey. also alicia sy rechltrett. and in san francisco, david wu. david has over 30 start-ups right now under his wing. great to see you owl all. welcome to the show. >> so getting rid of selfie sticks is a worthy challenge but how is this not just another gimmick like the selfie stick. >> the selfie stick was kind of a phenomenon but it is embarrassing to use. we are looking for a way to improve that and how do we extend this product line over the course or life cycle of the

product. >> tell me a little bit more about the patent that's pending. what's the technology behind it and what specifically would it protect -- prevent other competitors from doing? >> so the patent that we have pending currently is for the application of the actual nanosuction material to cases for smart phones and tablets. that would prevent any other companies from using that -- >> why do you think competitors like apple, for example, haven't already done this? >> we have kind of a strategic advantage of being able to be small and take risks on products like this. so we can in less than five months come up with an idea and go to market quickly and get feedback from customers and take small risks and take small bets that can pay off big time. >> one of the first things i notices when i took it out of the box was the packaging slams really male and really techie in terms of the design from the ominous dark colors to the stairry robot on the cover. is that your target demographic? >> no. i don't think so. we're trying to make something,

a brand that's fun and unique and interesting. we feel that the players in this market are kind of bland and boring so we looked at it as an opportunity to stand out. we feel that was a strategic advantage for us. as a small company. >> it retails for $49. >> yes. >> kelly. >> people invest in teams. why are you the team that someone should invest in? >> we have over 30 years combined experience in the consumer electronics industry. we have a great agreement that we just signed with amazon.com for a new initiative they have called amazon exclusives. >> i saw in your pitch that you currently have four employees. are they all based in one location and are you only working on this company or are you splitting your time across other businesses? >> most of our time is spent specifically on this business and we're all transitioning to spend all of our time in the business. the employees are focused solely on this business. everybody but myself is located in one location. and it's focused daily on pushing the product through our distribution channel. >> when i think about a lot of the big break-out accessory brands, they often incorporate a

very distinctive design element or fashion element. i was -- i definitely noticed that with your case it looks like every other case. is that by -- is that intentional? >> the actual sticking the stick on the wall and doing the group hands-free selfie actually draws more people to the product. it's actually the use case that's drawing people to the product, not necessarily the design. we've established demand now for this product so that doesn't rule out the second iteration or continued extension of a product line where we might focus more on the fashion side of it. >> okay. we all heard from carl and jeff had to say. now we need to know if the panel is in or out. >> i don't know at this point whether or not they're going to be able to produce other innovative products, but this is a strong team so i'm in. >> i still have one main concern and that is whether this is more than a novelty and whether it can really reach a mass market status. i'm not convinced of that yet so, unfortunately for now, i'm out. >> david, what do you think? >> i think they're going to be successful selling a lot of cases but at the same time i'm

not sure they have the dna to build a break-out iconic consumer brand so i'm going to be out. >> one in and two outs but quite a lot of advice at the same time. carl, jeff what's your reaction? >> we're just extremely grateful for the feedback. we're going to take that feedback from the team here and from our customers and make that break-you the brand that david was talking about. >> okay thank you very much to carl and jeff sf megof mega tiny. are you in or out? let us know on mega tiny corp. for more on "power pitch," visit powerlunch.cnbc.com. water shaming. it's become the new trend in california's big droutd. there's one company cashing in on exposing people who use too much h2o. manhattan real estate prices at a new record. shocking -- i mean shocking -- numbers coming up when "power

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. hi i'm sue herera. here's your cnbc news update for this hour. president obama announcing that the u.s. and cuba will re-open their embassies in havana and washington later this month. heralding a new chapter in relations after a half-century of hostilities. >> the progress that we mark today is yet another demonstration that we don't have to be imprisoned by the past. when something isn't working, we can and will change. new york city's ban on plastic foam now in effect. the ban applies to single-use food packing products including take-out containers and coffee cups. in 2014 the city's sanitation department collected 28,500 tons of that material. a drowning risk has prompted the recall of a about 3,000 baby floats sold online. it involves round ring inflatable floats made by otteroo. the company has received 54

reports of broken seams on that product. a pair of argentinean pilots were fired after allowing a greek model to fly in the cockpit with them. the model tweeted and bragged about it in a series of social media posts. that's your cnbc newsy up date this hour. so shares of angie's list coming off their session lows right now down by around 8%. the online review site announced that its current coo has been named the interim ceo at the company following the resignation of iftsts co-founder. who had said he'd step down to become more involved in civic issues in indiana. those shares up, you can see under pressure down by 7.5% in today's trading. to the bond market and rick santelli tracking the action at the cme. >> it wasn't that many hours ago

we were debating whether it was china, puerto rico or greece pushing yields down close to 2.30%. today we're back over 2.42%. an intraday chart of 10s, it's definitely been a slow creep up. we can argue the data today is better than expected but if you sum it up whether ism or adp jobs, six months of this year versus last year last year was stronger. year to date chart reveals we're only a handful basis points away from the 2.48% close of the year. 24-hour chart year row versus dollar had strength early but weakness now. mandy, back to you. >> rick santelli. talking of a slow creep up the dow almost back to a triple-digit gain. currently up by 99 points. it was up by 182 points earlier on in the day.

courtney reagan is the aat the nasdaq. but first, bob pisani. >> i think this is a little bit of belief that the second half of the year is going to see some real improvement and the i think the jobs numbers will be a good one tomorrow. we're off of our highs and some of this was on the greek deal but the important thing is the trends in the sectors are very much intact. i've mentioned banks as the number one trend in the first half of the year. that's continuing. the kbe, the bank index, higher rates moving the banks. the other trend -- health care. i don't mean biotech. pharmaceutical stocks have held up very well they are up again today and they have the potential to break out in the next few weeks as well. a little more iffy are home builders. the sales are good but affordability is an issue. it will get worse as interest rates move up. i think that's a bit of a problem for housing stocks right now despite the good numbers they've been putting up. clear down trend continues today

in energy stocks. there is the xle. that's a down trend. we're almost at a new 52-week low. everyone realized too much supply and that's not going to stop any time soon. >> robert thank you. courtney reagan now at nasdaq. hi, court. >> similar to what bob was talking about we are seeing a slow drift up here for the nasdaq composite and nasdaq 100 but well off the day's highs. semiconductor stocks among early winners today but the fplphlx drifting marchal lower. some of the standout stocks aren't your typical tech or biotech stocks today. i want to point out shares of wynn. this is the nasdaq 100 winner. stronger for the second straight day after pretty good news out of macao whether it comes to gambling revenues.

kraft also a winner after a deal has gone through to acquire heinz. >> we'll talk more about gambling stocks later on "power lunch." let's get you up to speed on the very latest in the greek debt crisis. our chief international correspondent michelle caruso-cabrera is live for us as she has been over the past week or two in athens. hi michelle. >> reporter: hey tyler. one of the key events we were waiting for today is over. it was a meeting of all the finance ministers of europe. they convened in a teleconference to look over yet another letter from the prime minister of this country asking for help and for a bailout, making concessions, et cetera. the result is -- nothing. we've heard details from a couple of the finance ministers who said you know what? we really want to see the results of sunday's referendum before we go any further. the finnish finance minister went so far as to say he doesn't believe the current government is trust worthily enough to do a

deal. the greek prime minister telling at least one reporter that the finance ministers said the most recent application by the greeks was a good start. in the meantime we expect that once again the banks will open briefly tomorrow morning for another round of pensioners so that they can withdraw 120 euros of their monthly stipend. it's done alphabetically. this morning was the first part of the alphabet. tomorrow is the second part of the alphabet as well. guys, back to you. >> thank you very much michelle caruso-cabrera. let's bring in some market guests now. john traynor and darren richards. both advisors. gentlemen, great of you to join us today. we are starting a second half new half hopefully better markets. we've got this wall of worry that we also have to climb at the same time. john how do we tackle this? >> for our clients we've actually been showing them a chart of the performance of the

10-year treasury versus the s&p 500 in january, then from february 1 on. the dramatic shift in the market. stocks doing well from february 1. bonds doing very poorly. we've been saying that's the kind of market that we anticipate for the second half of the year. we've been -- we don't speck the magnitude of the difference to continue but we expect that trend to continue. stay overweight equities stay underweight bonds. we think the second half of the year could be very positive. >> do you think you should stay overweight united states? >> yes. we're overweight the u.s. and we're also overweighting -- just did it for the first time in four years back in february, we overweighted developed international. we're still underwithout emerging market but we like the u.s. and we like europe so we've overweighted those markets. >> darren i see you increased your exposure to european markets at the beginning of the year. are you sticking with that theme especially in light of everything that's going on? >> yeah we are. i agree with john i think stocks over bonds is the biggest play to focus on this year.

europe got off to a great start. it slowed down a little bit in the second quarter but overall all the action the european central bank has taken, weakening of the euro these are things that are really tailwinds for the countries over there. we're very optimistic. plus valuations are 15 times forwards earnings where they are 17 times in the united states. we have a bias internationally relative to the united states right now. >> let's get to what's happening with earnings. bob's been talking a lot about earnings expectations. to what degree do you think we can move away from some of the daily headlines with regards to maybe greece or china or puerto rico rico? can we come back to what's happening here when earnings start and will it be good news or bad news for the markets? >> it will be difficult to move away from those headlines but youi agree, i think investors should focus on the second half of the year. as you take a look at earnings as we head into a rising rate environment, a rising dollar environment and we believe rising wages, you're going to see pressure on margins. so we are really focused on

profit growth and profit growth driven by revenues. those companies that are growing revenue, growing units that can control their own destination -- >> i mean this is so key, isn't it. revenue is absolutely -- show me the revenue, john! but which companies do you think are going to be able to do that? >> we like health care technology and we've actually -- we started repositioning last november december. we have repositioned our financial stocks for those companies that are going to see growing net interest margins. we think the financial stocks -- normally they're early cycle stocks. they are actually poised to do very well. they've been doing well since february 1 so financials health care and tech. >> thank you. you can get more of both of their thoughts on powerlunch.cnbc.com to see today's "power play." let's get to phil lebeau. we have a news alert. phil? >> we're talking about june auto

sales. mercedes-benz registering numbers that are going to get attention. mercedes posting its best june sales ever with sales increasing 5.8% compared to a year ago. for the first half of 2 o'015, record sales in the united states for mercedes-benz. at this pace guys mercedes-benz is on pace i should say to finish the year with sales in the u.s. of more than 310,000, 320,000 vehicles. just to show how much demand is out there in the luxury market here in the u.s. back to you. check out shares of fitbit. an active first half for the company and for other companies that have gone public. will that continue as we head into the second half of the year? >> the ipo business started with a whimper in the beginning of the year ended with a bang in june and looks very good for the second half. right now we had 104 ipos.

that's pretty good. looks like we'll do maybe 220, 225 for year. last year we did 275 but it was the best year since 2000. 2015 is shaping up to be a very good year. the important thing is not so much the number of deals, the star power. a lot of big well-known companies are going public in the second half of the year. planet fitness. blue buffalo. that's a big deal but it's got a lot of money behind it. sungard the software for financial institutions company. terraform a wind/solar power yield company with a lot off money behind it. there are companies out there that have not yet filed registration statements but everybody believes they are likely going to make some kind of move in the second half or first quarter of 2016. ferrari, first data. pinterest.

chobani. these are all pretty big names. notice what's not on the list db. this is still plenty of star power. the etf business is doing pretty well. you can own the etf for that that's ipo. that's outperforming the market. it is a basket of about 60 of the most recent ipos out there. remember, the most important thing about the ipo business is the state of the stock market. if the market continues to hold up near highs, most of those companies you see will have a very good chance of coming as well as 100 other ones that are sitting out there on the horizon. if things fall apart a month from now, it will stop. >> thank you. the big apple. manhattan. yeah. real estate prices just hitting an all-time high. robert frank has the stiky-high price tags. >> the average apartment in manhattan will now set you back

more than $1.8 million. we'll show you what you get for that $1.8 million and we'll show you the most expensive apartment sold in the quarter. it is on the 77th floor. that's comeing right up. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

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usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. pm mastercard saying it has stopped processing ad purchases on back page.com as law enforcement sources say it supports the slave sex industry. corona and modelo beers reporting higher than expected profits. the manhattan apartment of the late comedian joan rivers has a new owner. diana olick has the exclusive details live from washington. >> reporter: hi, ty. sources close to the rivers family tell me the late comedian's triplex apartment has

sold to "middle east royalty." it closed for the asking price of $28 million. there were multiple offer from several parties. the apartment went on the market in february. all of its ornate gilded splendor. rivers used to say of the place it's what marie antoinette would have done had she had money. manhattan real estate prices just hit a record high. robert frank the numbers, please, sir. >> the big, big numbers. the average sale price for a manhattan apartment hitting 1. $1,876,000. median sale price for the second-highest of all time at $980,000. average co-op prices hit a record 1$.5 million.$.5 million the average new price for development, $2,000 per square foot. most expensive sale in the quarter was a unit on the 77th floor of 157.

that new tower. that apartment sold for $47.8 million. the number two was also at that same building for $46.5 million. the problem is these skyrocketing prices may be getting too rich even for the rich. the number of sales fell by 20% year over year. that is the fourth straight quarter of declines and inventory is not budging. there's about six months of inventory. over half of the sales in the second quarter were for at or above the asking price. so there's continued upward pressure on prices. for $1.8 million, 1,400 square foot hardwood floors but not that manhattan luxury of your own washer and dryer. >> a real estate agent will never tell you that the markets are peaking or has already peaked. >> but there is a standoff and there is a bubble and it's clearly these prices are really getting harder to justify. >> harder to sustain.

thank you, robert frank. if you're looking for a little place in manhattan, a um can of spots have just opened up. for $350,000 a piece. what a price. great neighborhood, lots of greenery. the only problem is the size. it's 6 feet by 3 feet by 6 feet. new york marble cemetery has opened up the only two plots for sale on the entire island of manhattan. as robert just told us $350,000 isn't a bad price to pay for manhattan real estate, especially for a very long term purchase. mandy. a cure for cancer. are we on the brink of a big breakthrough in the fight against the disease? wait until you hear what one cancer doctor is going to say to us. plus five more stocks that could pop in the second half of the year. we'll give you those names ahead. as we head out, a look at today's mystery chart. here's a hint -- it's not a

stock. it's a commodity. "power lunch" is back in two.

beautiful shot of evening in athens. the tranquility there, the beauty there belying the turmoil

down below as we look at a live shot of athens. we'll go back there in the next hour of "power." here are this hour's power points. number one, fiat chrysler beating ford for the very first time in retail sales for the month of june. number two, total mortgage application volume fell 4.7% this week. three, fitbit shares up almost 90% since i ipo on june 18th but investors are wrachg toatching to see if the stock can continue to climb in this half of the year. the historic drought continues out in california. believe it or not, there are some winners. jane wells has details. where hey, tyler, i thought i was conserving water and doing a new job but according to this new technology, i am a water hog. i dispute this. winners in the drought when we come back.

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i'm mechanicallissa lee. coming up the double death threat hanging over the market. . latest on greece and puerto rico and how it impacts your money. we'll speak with one doctor

who says we're on brink of a major breakthrough in the fight against cancer. and we've got a mystery chart for you. can you naked it? it is not a stock. it is a commodity. the answer is coming up in the second hour of "power lunch." but first, back over to mandy and tyler. >> i just put my thinking cap on. the historic drought in california has caused a lot of hardship but for some companies it's also been a windfall. one of them produces software that shamses people into using less water. jane wells is live for us in los angeles with the details. >> reporter: i feel so guilty! i'm being shamed. water agencies are being ordered to reduce consumption. my water agency we have to get down 32% from 2013 levels. one way they're doing some of that is with relatively inexpensive technology. software which tells me how much water i am using compared to neighbors. it claims i'm using 50% more. >> actually a pool with a cover is often better than having a

lawn. >> reporter: wow. the software comes from a is that right-up water smart, where the ceo assessed where i might be wasting. uses all kinds of data to compare me to peers. business has quadrupled in the last two years heading to seven figures in month lyly costs. residents of california are buying it to see if they can do a better job. >> the hottest months are ahead of us. the hard work's really ahead of us between now and the end of september. >> i'd like to think of it in terms of the last century having been about energy and the next century being about water. >> reporter: next hour on "power," a very "sod" sorry. drought's lossers. the largest sod guy in southern california. >> is that your hound? >> that was eyore.

>> aw! very cute dog. >> so cute. that is it for the first hour. but of course i'm going to be handing it over to you for the second hour. let's go down and check in with melissa lee at nasdaq. >> you're watching the second hour of "power lunch." tyler mathisen is with me for the hour. hope over a greek deal helping push u.s. stocks into the green. the dow right now up triple digits though down from the highs of the session when we were up as much as 182 points. right now the gain is 89 points. oil, the losses are steepening into the close. right now down 4%. we saw the first build in inventories in nine weeks. gold is down just by about . 3% -- .3%. this is a report from the associated press out of washington that says the department of justice is

investigating whether airlines are colluding to grow at a slower pace in an effort to keep airfares higher. the justice department according to the ap is looking at whether or not there is potentially unlawful coordination among some airlines in an effort to keep airfares higher and grow at a slower pace. that's all we know the a this point. we are in the process of reaching out to the justice department. what's interesting about this is, in order for there to be collusion, you would think that you would have to have executives at several of the airlines -- the big four -- talking to each other and saying instead of adding that flight, let's hold off and therefore it's going to restrict the supply of available seats that are out there in the market. that's going to be an interesting case to see if the justice department can see if there's anything to it. for a long time people have complained, hey, they should be adding flights. fares should be going down. keep in mind airfares -- strictly airfares -- have not been rising. it is the tack-on fees. that's what's been rising when

you hear people complain about the cost of flying. >> phil lebeau thanks for that. we should note that we are tracking the reaction to airline stocks. all of them trading lower for the day. we are seeing reaction to the report of the doj that they're investigating collusion in pricing. delta air lines down about 4.25%. meantime we are watching oil tank into the close. jackie deangelis is at the nymex with the latest. >> that's right. we are seeing prices going down at a quick pace here. our session low, $56.85. technically speaking that is very significant. traders are saying there are a couple of factors here. the first that you mentioned before inventories. we did see them build according to the department of energy earlier. what traders are saying now is that they think that we've seen that peak for summer driving season. they expect that demand to slowly start to fall off. that brings us back to a situation where we have over supply. speaking of oversupply we are

talking about an oil gut in the world. everybody is focused on the negotiations with iran. traders are buzzing about reports that indicate we might have a draft deal on the table though there is no confirmation of that. what we do know is talks are progressing quite well so that is why we're seeing this kind of pressure today. right now $57.06. oil down stocks up. bob pisani on the floor of the new york stock exchange. >> stocks starting off the second half of the year slightly higher volume and the basic trends that we saw in the first half of the year very much intact. we're off of our highs today but here's what i mean by up trends intact. bank stocks not new highs but they're slowly moving up. again as interest rates have moved up in the second quarter, bank stocks have moved up. we did hit some highs a while ago. not today but the trend is definitely on the up side. other trend up side is in the health care area.

biotech is the big leader here but i want to note that the pharmaceutical stocks have held near their highs for a while now. they haven't broken out in any decisive way but they're also performing very well. then we have the down trends. the clear down trend is in energy names. you saw what happened today. oil stockpiles increasing for the first time in nine weeks. opec production highest in a long time. big oil weak again today. most of the big shale names all trading to the downside. the nasdaq trading higher right now as you can see, there's a lot of green on that nasdaq 100 heat map. among the best performers in the index right now, wynn kraft, comcast, the parent of our company. just last week the nasdaq hit an all-time since, since pulled back. for the year though the nasdaq is still up just about 6%. now over to sue herera for some breaking news. reuters reporting that the antitrust staff is apparently

opposed to ge's unit sale to electrolux. that's very interesting. that's according to a source knowledgeable of the justice department's staff. the justice department basically at this point the staff is against that particular sale. we aren't seeing too much of a movement in general electric stock. of course the entire -- the full commission has to vote on this but the staff apparently is recommending against it. back to you. we'll continue to follow it. >> all right, thanks a lot, sue herera. for general electric this is a session low. you also want to watch shares of whirlpool which has been seen on a beneficiary for this consolidation in the industry. whirlpool right now trading down by 1.7%. the small caps have been a standout this year. the index up 3.5% year to date. should you expect big things from small caps in the second half of the year? lamar, great to have you with us. with concerns about greece concerns about china and the

u.s. economy looking pretty good, are small caps the best defensive sector right now? >> we think they are. small caps have had a good run this year but if you look over the last 12 months it is basically a dead-heat between the large and small cap industries. they're both up about 6%. we like small caps here because if you want to avoid greece if you want to avoid china and if you're worried about interest rates rising and so thus some of these large cap stocks that really trade like bonds, some of the telecom services utilities, reits, as interest rates go up -- which, by the way, they have already and look like they'll continue to. as interest rates go up, those stocks are the ones set up to get hurt. we think small caps where you are able to see growth over the long term is really where you want too be positioned. >> your top small cap pick somebody financial engines. a robo advisor. year to date up 16% which is a much better performance than it's seen over the past 12 months. >> that's right. we think the most recent things is they recently added at&t and

ibm as clients. these guys are sort of a robo advisor. they help people invest their 401(k)s. when people sign up for a 401(k) they have no idea how to pick these funds. these are financial advisors that help employees make smart choices. they're now in the top 20401(k) plans in the plans in the u.s. the platform is really starting to prove out. >> you mentioned rising rates. you like financials overall? >> we do. again, we prefer to be in more domestic financials. there is a company we really like called carney based up near you guys in northern new jersey in staten island. they've got 45 branches. that's good exposure without having to have a lot of these global risks. they're not worried about greece on their balance sheet, for example, like the jpmorgans of the world. >> lamar, thanks, always great to speak with you. stocks are in the green but

at their lows of the day. to dominic chu for a "market flash." >> an interesting story developing here. we do have headlines crossing right now that the department of justice and the antitrust division there are possibly looking into or investigating whether major airline carriers in the united states have possibly colluded or were in collusion with each other to grow at a slower pace in order to keep airfares higher. this again ap headlines coming across the wires right now. as a result of these headlines and that story, stocks like delta air lines, united airlines continental, southwest, all of them making a sharp intraday move into today's trade so far. majors down by 3% to 4%. if you look at the intraday charts and see that sharp drop-off in those airline stocks, that's what's driving it. we'll keep an eye on whether this story again has more developments. but for right now, the major airline stocks a big focus for investors so far in today's trade. from airlines we go to

automakers. they are reporting strong sales for june with the exception of general motors, down a little bit. but most of the auto stocks are trading lower today, so how should you trade the group? though you see fiat chrysler is higher. michael ward is an auto analyst with stern agcrt. the big overarching question that's been so much in the conversation in the past month about consolidation. do you expect any of the major automakers to merge one with another any time soon? >> no. i think history has proven that that's fool's gold. we do not expect that to occur. >> let's talk about some of the stocks you like and don't like. i know you like ford. you think it is a buy. gm you think is a buy i gather with a price target of about $50. why those two? >> the north american industry underlying fundamentals are very strong. positive pricing, incentives are range bound. mix favors the detroit three. trucks are hot. pick-up trucks.

the profitability, atvs are up 5% to 10%. gm ford and chrysler. they have no foreign competition. we should see a very strong earnings season coming out of detroit over the next few weeks. >> give me one more stock that you do like in the sector more broadly defined. >> boringg-warnerborg-warner. penske. those are buy rated at our company. company. penske is the largest public dealer of luxury cars on a global basis. >> thank you very much you answered the questions the first time out. beautifully. the world's casino capital appears to be hitting a cold streak. gambling revenues in macao fell 36% in june the third straight monthly decline. a big factor at play -- crackdown on corruption of the chinese government. some of the stocks with exposure

to macao are trading higher in today's session. with troubles in the region is now the time to roll the dice on casino stocks or stay away. >> harry curtis, senior gaming analyst. we've seen the stocks have some pretty strong performances in the past couple of days. wynn has seen a lot of bullish options activity in the past couple of sessions. you're still skeptical. why? >> i'm skeptical in the long run but in a note we put out this morning we think that there's probably a trading rally because the sequential numbers in macao should look a bit better over the coming two months for seasonal reasons than over the past 12 months. but longer term i think that the supply/demand dynamics in macao are still very negative. >> what's the primary driver behind the demand not being there? is it what we're seeing in china? i mean in terms of a potential sloudown slowdown or just the crackdown having lingering effects? >> it is primarily the crackdown having a lingering effect.

that level of casino wynn which is close to $10 million is gone and it is not coming back. >> you said these pops in the stocks we're seeing are trading rallies. would you short them? >> i wouldn't do that yet. in the two stocks that we discussed, wynn and las vegas sands which are neutral rayed, we think that there can be a near-term rally into the summer months whether summer holiday travel is generally pretty strong. but at that point if this rally continues, i think that the stocks are vulnerable. >> harry, thank you. harry curtis. here's what's on the menu for the rest of the hour in "power lunch." up next the double dose of debt threats. we've got the latest out of greece and puerto rico. also ahead, are we on the brink of a major breakthrough in the fight against cancer? just wait until you hear what one cancer doctor is saying today. he'll join us live. can you name today's mystery chart? it is not a stock, it is a commodity. it's been struggling this year.

tweet me your guesses at melissaleecnbc. more hints and the answerer when "power lunch" returns. to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ ♪ take advantage of our summer offers. the 2015 cadillac srx, a crossover with space safety, and style. lease this from around $339 per month. ♪ ♪ ♪ i built my business with passion. but i keep it growing by making every 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 of dollars each year going back into my business... that's huge for my bottom line.

what's in your wallet?

. take a look at where we stand right now. stocks are close to their session lows. dow jones industrials up about 85. points. we had been up by 182. the nasdaq is higher by 12. s&p up by 7 1/2. dom chu has a "market flash"."

the move in the airlines. we told you just in the past few minutes airline stocks had been hitting their worst levels so far today. the dow transportation stocks have now moved towards negative on the session so far. it's important also remember from a technical standpoint chart watchers technicians, people who look at history, they're looking at these charts for the dow jones transportation index and looking at what is a 14% to 15% decline from their highs that we saw over the past 12 months. again, sharply and certainly in correction territory at this point for a lot of the transportation stocks. of course you want to watch the etfs that track them as well. the news from the ap that justice department possibly investigating collusion by major u.s. airline carriers to keep fares high. that's what's having an impact on the stock. we'll bring you more updates but for now transportation stocks very much a focus in today's trade. today marks the deadline for puerto rico to make its debt

payments of nearly $2 billion on outstanding bond loans. kay kelly spoke with puerto rico's resident commissioner yesterday about the state of the economy. >> this talk about a moratorium on all of puerto rico's debt or restructuring of all of puerto rico's debt it's not right. that's not the way this works. >>. the former imf advisor and currently professor of international economics at johns hopkins university joins us now. he says the restructuring of debt is not the way it works, it's not right but that's exactly what puerto rico might need. correct? >> i don't know what the rest of his talk was about so i can't interpret that remark. obviously puerto rico needs quite a bit. i think you're basing your invitation to me on a report we did for the government of puerto rico. quite clearly they have a number of problems ahead which cannot be solved unless they can handle something about their debt load and unless they can restore

economic growth. >> so in your assessment what's the number one thing that puerto rico needs to do right now? >> there is no number one thing because if they only work on the fiscal side they'll be stuck with no growth. and visa versa. so it can't be a one-pronged approach. it has to be a several-prong approach. >> a several-pronged approach. is one of those prongs restructuring of debt? should the bond holders feel any sort of a pinch in order to get puerto rico out of its mess? >> well i don't know it is a pinch but i do know that if they keep -- if puerto rico keeps going the way it is going, even if it tries to do what it can on the fiscal side it will be unable to pay all its debt before too long in which case the bond holders are lose even more than if now there's now some more constructive arrangement? >> what's the worst case scenario here in your view. >> the worst case is very very hard. i don't think anybody for example looking at greece several years ago would have said it's going to get as bad as it's gotten so in effect we

don't know what the downside is. but what i can tell you is that right now the government of puerto rico seems to be fairly much cut off from markets. they can borrow a bit but only at very high rates. they have very large obligations and what have you. with all of that one possibility if nothing is done -- by the way, i think the government will do things. but one possibility if nothing is done is that they could run out of cash. >> they could run out of cash. what would your advise be to puerto rico right now? >> i've already written the advice in the report. that's the report we produced was about, that they had to address these problems together and not just one pat a time. >> ann, thanks a lot for your time. up next five stocks that could pop in the second half of the year. we'll give you those names ahead. another look at today's mystery chart. your first hint was, it's not a stock, it is a commodity. your second hint -- it is the worst performing soft commodity this year. tweet me your guesses

guessesguesses @melissa guesses @melissaleenbc. we have your answer when "power lunch" returns.

shares of constellation brands moving higher today on the back of a stronger than expected erpgsarnings report. beer business double digit

sales growth. . ceo rob sands will have more on the results when he joins "closing bell" for a few beers in an exclusive interview at 3:00 p.m. last hour we gave you five stocks that could potentially pop in the second half of 2015. this hour you get five more. who's got them? democrat dom chu. >> five stocks that we talked about the last time around were from the real estate investment trust. now we'll talk about the utility stocks. both those industry groups are down 16% from their recent highs. as we take a look at the dow jones industrials, s&p, nasdaq gains for today but the stocks overall we've shown so far have not shown some of those quite as well. stocks that have a least the ability to pop, you can see here the s&p 500 utilities select sector spdr is down 12% so far this year. maybe if there is a pop, some

analysts are already say something it's gone too far, too fast. shares sf ameren have the possibility of a 13% up side. also firstenergy shares possibly a 15% up side. also 4.5% dividend yield there. duke energy same story. 15% up side. 4.5% yield. entergy, nearly 5%. ppl, an 18% possible up side move with a 5% dividend deal. that's if the analyst average target price is correct. ten different stocks. last hour the reits. this hour the utility stocks. both those groups are down sharply from their 52-week highs. maybe if they are due for a pop these are some names that could show some of the biggest moves higher and you get paid to wait. that's from our friends at cnbcpro cnbcpro. >> thank you. for a recap of all the stocks head to powerlunch.cnbc.com.

u.s. stocks are off the highs of the session but still higher for the day. chad looking ahead to the second half of the year are you concerned about greece as a factor in how stocks perform, your 12-month forecast of the s&p is up 4% to 5%. or are you more concerned about profit growth at this point? >> it's a combination of both. really profit growth. we believe that if greece does leave the eurozone you're looking at perhaps a 5% to 7% correction. we don't believe it is going to be that lehman moment. nonetheless, value u sagss at this point seem fully valued. we believe believe a 5% total return on the s&p 500 on back of the earnings growth for the s&p 500 of roughly 3% to 4% and revenue growth at 2%. now the general fanatic that we think is going to happen over the next 12 months is that low momentum stocks which have

underperformed high-momentum stocks after all the qe that's been in place for the last 36 months will actually shift. so we would be looking at high-quality names, dividend growing names, the likes of danaher, abbott labs budweiser or pepsi. >> is it more that these names are going to actually rev up their performance or that the rest of the market is going to just lag? >> it's a combination of both. we think that as the federal reserve moves off the zero-bound rates that they have that you'll see increased volatility. from that subsection of the market, that will bode well for these individual names. but also with that in mind all four of these companies that i mentioned we believe will have 10% to 15% up side and that's going to be on the back of revenue growth as well as profit growth that we believe will be better than the street is expect being. >> chad, thank you. stick around we have two great stores coming your way. first the fallout continues over

some controversial comments donald trump made at a campaign rally last week. courtney reagan joins us with those detail. report report. >> one big retailer telling donald trump you're fired today. but wait until you hear what donald trump did next. details coming up. . and also more ahead on the big move we're seeing in the oil market. >> that's right, melissa. the final trades are about to cross over. we're going to have the sale price at the close all for you when we come back on "power lunch."an policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

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[ music plays ] don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money. i'm sue herera. here is your cnbc news update this hour. secretary of state john kerry speaking in vienna weighing in on president obama's announcement of the restoration of diplomatic relations with cuba. >> i will travel to cuba to personally take part in the formal re-opening of our united states embassy in havana. this will mark the resumption of embassy operations after a period of 54 years. south korea announcing new visa measures to rejuvenate a touristvy hit hard by the mers

virus. tour fooezees from its asian neighbors will be waived. the national park service will not grant the district of columbia a new lease for the site of the washington redskins' former stadium. in fartherpart because the interior second tar oretary opposes the team's name. talks have been to move of the team back to washington from landover, maryland. sir nicholas winton who rescued 6,000 children destined for nazi concentration camps has died at 106. he was a stockbroker when he arranged for trains to carry the jewish children out of occupied prague. an amazing life lived. that is your cnbc news update this hour. back to you, ty. >> 106. jackie deangelis is following oil close for us at nymex. >> final trades just crossing,

oil closing today at $56.86. under $57 a barrel is breaking to the downside in a real way traders are saying. a couple of issues here today that are impacting this. first, the build that we saw in oil inventories. issue here could be that we see this peak in summer driving and we're going to see that supply/demand situation come back in focus with over supply in the marketplace. also traders are buzzing about reports that we may get a draft deal in the nuclear negotiations with iran and that took prices down at the ends of the session. there's been no formal announcement about this but this is certainly something that everybody is watching. technically because we made this move lower we could see big selling again in tomorrow's session. back to you. >> thank you. negotiations are over in greece. both sides awaiting a crucial referendum on sunday. greek business are under increasing strange.

for more michelle caruso-cabrera is live in athens. >> reporter: the banks are still closed melissa. they're going to be closed for the foreseeable future at the rate things are going. if you run a business in greece that relies on imports you're getting increasingly nervous. without a functioning bank you can't paid your overseas suppliers. you need stuff. meet a woman who imports italian coffee. it's from where? >> it's from italy. we bring it here in greece and we give to all customers but the big problem now is that we don't have how to pay because all banks are closed so they cannot from italy bring here any coffee. have to pay with some way. >> are you worried the banks will be closed for three months? >> i'm worried that they will be closed for one year two years. it's a big problem. >> you get up you dry around

you distribute to how many places? >> 15 20 places. >> every day? >> every day. only cash. only cash. i don't know how he can pay me. i'm worried for this. >> do you like your job? >> very much. because the first thing you do in the morning is what? drinking coffee. i am very proud to do something that makes you feeling better in the morning. maybe the greek people stop drink ing drinking it. maybe they'll stop going out with their friends, but they will never stop drinking coffee. i am proud. >> it is an incredible tradition here drinking coffee. that's one example of an importer that's struggling. already there are reports on greek television tonight that the supermarkets and managers of the supermarkets are worried you're going to start seeing

shortages within a week because this country is so reliant on imports. >> that's the perfect segway to today's mystery chart. this is a commodity, not a stock. it's the worst performing stocked commodity this year. some could say it is getting roasted. it is coffee. the commodity is down 24% year it o date. that could be good news if you are a coffee drinker. jm smucker announcing a big price tut cut to its package coffee sold in the states. dropping the price on most folgers and dunkin' brands. some of you guys who tweeted me got it right so good for you. while your cup of joe might be getting a little cheaper, you might need to brace yourself for some sticker shop on your next grocery bill. morgan brenbrennan, this is an interesting transition. >> fromthe boston consulting group

and grocery manufacturers association are saying transportation is now the number one worry for consumer packaged good companies in the u.s. according to their report freight costs have jumped 14% since 2012 for food manufacturers which already spend about $15.5 billion annually on transportation. the reason -- not enough freight capacity. that's thanks to driver shortages, growing congestion and delays and deteriorating infrastructure so that's pushing up costs despite the fact that we're seeing lower fuel charges. higher costs, lower margins for businesses, and of course that means potentially higher prices for consumers. this has caused companies like procter & gamble land-o-lakes bumble bee foods, some businesses now relocating their manufacturing or warehouse facilities. it is also the reason investors should keep an eye on logistics firms as we head into the second half of the year. that's a shipper struggle with tight capacity looking to cut costs. and also set up contingency plans following the west coast

port strikes earlier this year. names like c.h. robinson xpo logistics, hub group and even ryder should benefit from grow region demand for their services. >> thank you, morgan brennan. shanghai composite falling 5% in the overnight session. are more losses ahead and what could it mean for equities here at home? het's ask let's ask the tradesing nation. larry, is this a bubble we republican watching pop? >> if you look at total debt we've gone from ten years ago to $5 trillion $6 trillion of total debt household debt and corporate debt to $35 trillion. if you look at the margin debt margin debt -- in some say the black market -- is up to 600 billion mr. billion. so yes this bubble is popping. >> at the same time is there a beijing put?

would you buy chinese stocks knowing beijing cannot afford to see the stock market collapse? >> look. i look at it and say the government's in full support here. you're not going to see this market pull back in a meaningful way. i think the government is going to basically protect it at all costs. from a practical perspective there's no difference to what the ecb and the fed did to influence asset prices here in the u.s. and abroad. my argument is is the market going to go higher? it probably is going to go higher. have we seen a fallout? no. it maybe gets a little bit worse. i can't really gauge that. but over time i do expect the government to be there and the strategies that they're implementing to inflate equity prices there are going to remain intact so look the market can gravitate higher. there is no doubt about it. >> so you're -- >> i'm uncomfortable with it there's no question. it is not the type of market i'd want to invest in but i do believe that it will gravitate higher. >> lrts,all right, thank you both.

for more "trading nation," head to cnbc.com. krebs on security is reporting that the trump hotel collection appears to be the latest victim of a credit card breach. that's according to data shared on security with several u.s. banks. now cnbc has reached out to the trump organization. we have not gotten a response from them but it apparently appears as though the trump hotel collection has been the latest victim of a credit card breach. we'll keep you posted. >> sue herera thanks. seems like it just keeps piling on to donald trump. macy's is the latest business to cut ties with donald trump following some comments he made about immigrants pat a campaign rally. mr. trump wasted no time pushing back. courtney reagan joins us now with details. >> couldn't write a better segue. >> unbelievable. >> donald trump getting fired by another partner. an online petition with more than 700,000 signatures likely propelling macy's to end its business relationship with mr.

trump. it will phase out hits men's wear line it's carried in stores and online. the collection of men's shirts ties and accessories debuted in 2004 landing the donald in macy's commercials throughout the relationship. a search on macy's.com reveals 165 products bearing the donald trump name. macy's says in part it is a company that stands for diversity and inclusion with no tolerance for discrimination in any form. adding remarks the republican presidential candidate made recently about mexican immigrants are inconsistent with macy's values. trump for his part says it was his decision to end the relationship with macy's. saying he was never happy that the merchandise was made in china. now one of the collections is one of the macy's most successful launches it is of a latina superstar. >> thank you, courtney. airline stocks have seen a

good amount of volatility. we know you can see, down by 3.5% to 4.5% for most of the major airlines. we do have a statement from the department of justice, a spokesperson telling nbc and cnbc that it is looking into possible unlawful collaboration by some of these airlines. again, you can see all these airlines stock mayjors -- united continental, skywest, latam airlines hawaiian all moving lower. we tried to reach out to at least some of the airlines with confirmation as to whether or not they are part of these investigations. we'll bring you more as we know but you can see, the airline stocks taking a hit today and that's dragging the whole transportation industry group down along with it. let's get more on story. joining us on the cnbc news line hunter kay, senior airline analyst. how big of a deal is this for the sector?

>> well, we haven't seen the suit so i really don't know. no one has yet. so there's no way to know how big of a deal this is. >> is there anything in terms of the data that you've seen on fares that would lead you to believe that they are colluding in any way or that fares are going higher? our airline reporter phil lebeau made the point when this news first crossed, it is not the actual fares going up, it is the ancillary add-on fees that are actually causing that ticket price to go higher. >> so i follow this group extremely closely. i follow every word that comes out of management's mouth and -- mouths. and i have not seen any communication that should imply a tit for tat type arrangement between the airlines. they have answered questions from the analyst community about capacity. they have not proactively signaled, in my opinion, in any form that i have seen in a way that would imply that if they were to do something that

another airline should be expected to do the same thing. analysts including myself and others have asked about capacity discipline because that is the only thing that has given them a modacim of pricing power. this is about a basement argument, in my opinion, that fares have somehow gone too high. data that we see clearly suggests they are down because of aggressive capacity growth. >> the nature of collusion is that it takes place in the dark. you don't hear about it in a analyst call. but why is it that airline fares on similar routes are so close to one another? if i'm flying from new york to chicago, within a few dollars generally. >>. >> exact same thing as when gas

stations are located across the street from each other. it's extremely transparent pricing and airlines can see how other airlines price. because it is publicly -- it is widely available. >> it is perfectly transparent. >> it is extremelyextremelitive. i would argue this is one of the most competitive industries in the united states. capacity growth has been higher than in 8 years. unless there is some sort of behind-the-scenes communications between executives that i'm not aware of i have seen absolutely nothing in any of the conference calls that we listen to or anything about these field trips other analysts have hosted that should imply at all these airline executives have any willingness or desire to do anything that would possibly be construed as collusion. >> it would be incredibly stupid obviously as well. hunter keay senior airline analyst. so is a cure for cancer possible? one of the world's leading cancer researchers says he thinks so and it could be coming

sooner than many people think. he'll tell us why straight ahead on "power lunch." >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor.

hello, everyone. i'm sue herera with breaking news concerning general electric. the justice department has indeed filed an anti-trust lawsuit to stop electrolux from buying general electric's appliance business. here are some of the details on that. they filed the civil anti-trust lawsuit today seeking to block the acquisition of general electric's applies business by ab electrolu. the department says the $3.3 billion acquisition would combine two of the leading manufacturers of ranges cooktops and ovens sold in the united states eliminating competition that's benefited american consumers.

"electrolux's proposed acquisitions of general electric's appliance business would leave millions of americans vulnerable to price increases for ranges cooktops and wall ovens. products that serve an important role in family life and represent large purchases for many households. this lawsuit seeks to prevent a duopoly in the sale of these cooking appliances to builders or other purchasers who often pass on price increases to home buyers or renters. again, we thought this would happen and indeed it has, the justice department filing that anti-trust lawsuit. the btk, the etf that tracks biostocks up 20% year to date. nasdaq composite rose 5.5% during the same period. one of the world's leading cancer geneticists says it is possible for a cure for cancer will be found within the next ten years thanks to the promise from new technology from juneau

that you are therapeutics which he claims literally melts away cancer. doctor welcome to "power lunch." great to have you with us. >> thank you, melissa. very happy to be here. >> this new technology has not gone unnoticed by biotech investors. can you explain what car t is? >> we're so excited about the potential for immuno therapy to develop new treatments for cancer and potentially to cure cancers. i've been in this business for a long time and for the first time we can see the opportunity for cures in a relatively short time frame. the so-called car-t cells are cells that we genetically engineer. we program them to seek and destroy cancer cells. and in patients who have disease that hasn't responded to any other treatments that we have we have indeed seen tumors melt

away and induce complete responses that have been quite durable. it's a very exciting time in immunooncology. we see a wave see a tsunami coming. and cancer is running scared. >> when we say cancer there could be cure for cancers in humans in the next ten years, which types of cancer would you put top on that list? >> well the cancers we have the best data are blood borne cancers leukemias and lymphomas and the cancers we're initially targeting with the cells. and that's where we've seen promising responses, 91% responses in pediatric leukemia in children that had no other treatments available for them. >> does this mean that cancer is going to be eradicated? or cancer's going to be a condition with which one can live for a long period of time?

>> well that's a terrific point, melissa. and the goal is to eradicate the cancer. it's not to convert cancer into a chronic disease but to truly eradicate it. and one important point about car t cells, is one instance the single infusion of the cells derived from the patient's own immune system has been able to induce complete responses and may well induce cures. we're not looking to treat cancers at the hutch, we're looking to cure cancers. and we do see that opportunity coming and there's a real sense of urgency around this for patients who currently have cancer. we're trying to focus all of our attention on moving these technologies forward into the more common solid tumors. colon cancer lung cancer breast cancer, prostate cancer, where there's an enormous unmet medical need. >> repeat for me quickly how soon some of these medicines might be coming to market. >> well the medicines being

developed, which v moved rapidly toward fda approval and we're quite confident those drugs will be approved in a relatively short time frame. i can't speak to the exact time line, but very soon. and hopefully, other indications in cancer moving on beyond that. >> all right. dr. gilliland, fascinating stuff here. we've got much more "power lunch" in two. stay tuned. the cnbc realtime exchange market snapshot is sponsored by interactive brokers.

mornings. wonderful, crazy mornings.

we figure you probably don't have time to wait on hold. that's why at xfinity we're hard at work building new apps like this one that lets you choose a time for us to call you. so instead of waiting on hold, we'll call you when things are just as wonderful... [phone rings] but a little less crazy. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. i'm sue herrera. back with ge's response to the justice department filing that anti-trust lawsuit. electrolux and ge intend to defend the proposed acquisition as pro competitive and pro consumer. our goal remains to close this deal this year. ge continues to believe that the ge appliances and customers and consumers and employees will

benefit from electrolux's commitment. so you're up to date on that. "power lunch" is back in a moment.

welcome back to "power lunch." i'm jane wells with a very sad story. california's suburbs were built on sod. ever since the governor ordered water cuts and you can get rebates for tearing out your grass, it's been tough times.

southlands sod farms is the largest grower of sod in socall. business has plummeted 50%. gardening businesses are getting some work tearing out lawns and replacing them with plants, but after that who needs a gardener anymore? and nurseries are finding people are buying fewer plants overall and certainly not flowers. >> may's the best one we've had in the last ten years and it wasn't so. >> it's forced us to educate ourselves on the industry the industry technology in order to help our customers. >> we laid off 30 people last friday. it was a tough day. probably the toughest thing i've ever done. >> now, he thinks people will come back to it after the drought is over. melissa, that is assuming the drought ends. back to you. >> all right. sod story. jane wells. take a look at shares of mcdonald's up about 2% year-to-date. but could this sleeper in the fast food space be an outperformer in the second half? we'll debate that tonight at

5:00 p.m. tuel tyler? >> and that'll do it for the two hours of "power lunch." thanks so much for watching. melissa, great to be with you. >> good to be with you. "closing bell" starts right now. welcome to the "closing bell." >> welcome back i'm bill griffith. so is there a deal in greece, or not? europeans are trying to figure it out, greeks are trying to figure it out. stocks still rallying on greek optimism, but the dow is well off the highs of the session. and breaking a little more than half an hour ago, an hour ago, the justice department reportedly investigating airlines for colluding to keep airfares high.