olatility that exist in those calls. >> i'm keeping an eye on these financials. story lines will play out and i don't think it will be over. it will just continue to play out. but look at that 50-day and 200-day. you look at jpmorgan around $66. it's a buy. >> happy fourth to everybody. see you on other side. "power" starts right now. >> announcer: "halftime" is over. "power lunch" and the second half of the trading day start right now. good afternoon, everybody. along with mandy drury, i'm tyler. one foot out the door matheson for july fourth. 223,000 jobs created in june. mandy drury, almost two feet out the door. the main chinese market is up 90% in the year but down almost 20% in one single month. is the chinese run over? will these guys ruin your fourth of july holiday weekend? we're talking about getting ahead of in he problems that could come out puerto rico and greece. why we're all out of here, oupt out

of the office! we begin with a tense situation in greece. the 10-year note is sitting around 15% and have soared 60% this year. a referendum is set for sunday with greece's prime minister urging a no vote. let's go live to athens chief international correspondent michelle caruso-cabrera joins us there with i believe also the president of athens chamber of xlers commerce? >> yeah, the chairman of the hellenic chamber of commerce, good to have you here. excuse the music, there is is a small communist rally going on. shall i call you camomrade? >> michelle, this is a country of extremes. in the first century, existential comemunism has died 20, 25 years ago but here in greece it is rampant. you can hear them chanting. there you are. this is greece. >> we know that this crowd will vote no in sunday's referendum they hate the euro they hate everything about euro et

cetera. how do you think the vote will go on sunday? >> i'm cautiously optimistic that we don't have a strong yes vote. vast majority of greek people this has shown in every poll is in favor of the euro. i know the question which has been set on the ballot paper on sunday for this charade referendum is not yes or no to the euro but behind everyone's mind, it is yes or no to the euro and it will be a strong vote for yes which is going to be registered. >> listening to the graek government officials on television today, they are telling the greek people that the banks will re-open after the vote. i find that very hard to believe. is that your understanding? >> absolutely not. fully one who knows basic elements of when you've got capital controls being applied to a particular economy to a banking system it has never been valid for one week. i think it is absolutely impossible unless there is a deal, a deal that passes all the

parliaments of the eurozone. a deal that is struck here in greece, signed and sealed and then the ecb has to send funds because at the moment the only available funds in the greek banking system does not exceed 600 million euros. so you can imagine that when banks do open the credibility factor has to be at an acceptable level so that we don't have exactly the same phenomenon of greeks rushing to it the banks to withdraw their remaining deposits. it's absolutely impossible for tuesday for banks to be open. i personally envision if everything goes smoothly and we have a strong registration of is around the 20th of july. >> wow. that could really be devastating for the economy. thank you so much for joining us ahead of this key vote that's coming up on sunday. guys back to you. the other big debt threat out there is puerto rico. what a week the governor saying the island cannot pay its debts. puerto rican bonds getting hit very hard this week.

cnbc contributor alexandra labenthal, is the damage already done to my bond funds if i own ones that have puerto rican debt in them or could more trouble be on the horizon? >> well it's been a slow erosion for quite some time. this last week was a bad week. in fact i just took a look at one of the funds, oppenheimer new york, which holds a number of puerto rico bonds and if we have a moment we should talk about the oppenheimer funds, it was down 2.6% or not week whereas the muni market in gel was flat general in flat. the week ended okay. the electric made its payment. gos made their payment. but there is still a lot to come and there's still the bond funds

and the hedge funds and insurance companies as well that are going to have to be sitting down with the government and working out some type of deal. >> you mentioned oppenheimer. we've had the portfolio manager or managers on from that company. they have a strong point of view on puerto rican bonds. they believe in their position sincerity. what do you think? >> well what i wanted to say -- and i'm sorry i missed their interview -- they have a very very large percentage of puerto rico bonds in their funds. they have always been a very high-income fund group. and they've come out with a very strong stance about defending those -- the credit of the puerto rico bonds. so if people hold op himpenheimer funds, they should certainly be taking a look at how those funds

perform. look, as somebody who's spent her life and certainly her family in the municipal bond world, do i believe very strongly in an issuer's willingness to pay the validity of a general obligation bond as many first in line in the capital structure. but certainly whether it's puerto rico or detroit over the last year has shown us that when you do get to the bottom of the barrel and the money isn't there, there does have to be the realization that something has to be done. >> thank you very much. think one of the key points that you make there expressly and implicitly is that if you're a bond fund owner, no matter what you need to know what is in your fund, whether it is a bond fund or a stock fund. you need to know what it owns. >> yeah. if i can very quickly say, in any bond fund or any mutual fund, look at your top ten holdings and if you have more than one fund you may find you actually have the same holdings.

>> the same things. alexandra, great point. have a great weekend. right now the baker hughes weekly writden out a day early because of the fourth of july holiday. a gain of u.s. active oil rigs. a again the caveat here oil production still remains near record high levels but still a gain of 12 oil rigs to 640. this represents the first time that the baker hughes weekly u.s. oil rig recount has gone up since december of last year. >> we'll watch for any impact on crude which will close in about 90 minutes from now. currently sitting at $57.27 a gain of .5% so far. another crazy trading day overnight in china. . shanghai and shenzhen stock markets plunging 4%. it's been a volatile week. but take a look at this -- on

monday and tuesday we saw 10% swings intraday in the shenzhen. wednesday had an 8% swing in trading. last night had a 7% swing. just -- it's incredible. lot of people liken the chinese stock market to gambling in macao, ty. it really is turning into a bit of a gamble at the employment. don't know what you'll get on a day to day basis. >> we talk about little moves in the vix. those are big moves there, folks. federal regulators today holding safety hearings into recalls announced by fiat chrysler. phil lebeau is in chicago following that for us. >> we're monitoring that hearing in washington, d.c. essentially it comes down to the national highway traffic safety administration holding a rare public hearing to ask take yootfiat chrysler to explain how it has handled or they would say at nit nhtsa, mishandled a number of recalls.

according to nhtsa, they were either slow in communicating people who were involved in recalls or they were delayed or hadn't done the repairs quick enough. millions of dollars in fines are possible. there is the outside chance nhtsa could eventually move to have fiat chrysler refund the cost of those vehicles to buyers, though most believe that's unlikely to happen. shares of fiat chrysler since its ipo last fall. a lot of this is because of the euro and the benefit there in terms of manufacturing some of their vehicles specifically jeep vehicles in europe. those vehicles are sold here in the u.s. some of this is also because is celebrating gains in the auto industry. the hottest brand right now is fiat chrysler's jeep brand. sales here in the u.s. up 20%. folks, it's growing five times faster than the market overall in terms of sales and the jeep brand is expanding globally. we'll continue watching this hearing going on in washington. it is coming at an interesting time because that jeep brand,

red-hot. there anticipate not a hotter brand out there right now in terms of the mass markets. >> jeep drivers look red-hot, don't they? they like driving around with the top down in the summer. stay with us phil. let's get more insight into fiat chrysler right now. the former president of chrysler, bob lutz former general chairman of general motors. bob, you should know a thing or two about this. is there an element of fiat chrysler being singled out? >> well i don't think they're being singled out but it has been interesting to observe that over the last few years whenever there's a nhtsa investigation or nhtsa inquiry, such in jeep rear-end collisions and everything the company has taken a very aggressive, somewhat denying stance and has been pretty feisty which to those of us in the industry always seemed like you like to see somebody push back if they really don't think there's a

problem with their vehicles. but i think every automobile company has learned over the years, you can't fight city hall. even if you're right. you're going to be wrong. and, frankly, they're going to get you. i think there is a generalized feeling that chrysler is somewhat reluctant and defensive. it could be wrong, but i think that's the impression that they've created and i think this is payback time. >> bob? sorry to interrupt you there. i have a quick question. in all your years in this industry have you ever seen a situation like this where you have fiat chrysler with one of the hottest brands going right now with jeep and another brand that's doing well with ram trucks growing sales as quickly as they're doing that and yet when you look at the reliability ratings, whether it's "consumer reports," whether it's j.d. power, they are consistently at the bottom. i'm not talking about one time.

i'm talking about consistently. yet it's as if the buyer is going out there don't put that together with the possibility of buying a particular vehicle. >> sill's tell you what it is. if you look at the absolute scores, the worst performing brand today in the surveys would have won the survey would have been the triumphant winner would have beaten lexus and toyota seven or eight years ago. so the overall quality level has gone -- gotten so high that you can still split hairs and say, well, somebody's at the top and somebody's in the middle and somebody's at the bottom. but the overall quality is so high now that nobody perceives the difference. frankly, the public has wised up and has figured out that these quality ratings just are irrelevant to them anymore. that's basically what's happened. >> thank you, great discussion bob lutz.

airline stocks down hard this week. the department of justice investigating carriers over collusion saying carriers are intentionally growing capacity at a slow pace to keep airfares high. gordon bethune, a cnbc contributor and one of my favorite guests because every time you're on you say something, doggone it! i'm going to ask you a simple question. are today's airline executives dumb enough to collude or are they just being smart in the ways they are running their businesses and manage pentagon capacity? >> that's it tyler. they're smart people. the smart people usually come up with the same correct answer two and two is four. that's not collusion. that's just making the correct answer to the issue of how many seats do we want to try to sell. you shouldn't try to sell more than you can sell. >> that's right. it seems to me that in the past there was a race to the bottom with airfares and a race to the bottom in terms of having more seats flying between new york

and cleveland or cleveland and chicago and they couldn't fill them so they were running their planes at a lot. it's basic fath.math. >> look how many people lost their pensions employees lost their jobs. those guys are gone. you're only as good as your dumbest competitor. those guys are gone and we've got about four mainstream airlines all run by very intelligent people and they're making a business and paying their employees. i think that's great. >> we hear a lot -- listen. i don't know what kind of evidence the department of justice has at all. i don't think any of us it truly do at this point. but be that as it may, the point is repeatedly made that 80% of the airline traffic in this country is run through four major carriers. but that's not so unlike a lot of other businesses in this country, whether it's cell phone providers or my cable opportunities in my local town. >> absolutely tyler. those four guys are head-to-head in almost every market. there's lots of competition

between sarasota florida and spokane, washington. everybody will get you there so it's very price competitive. but they're not trying to buy market share, because you can't do it because your competitor is just going to match it and you'll both lose money. that's what's going on. >> bethune in matheson in vigorous agreement here! >> thanks tyler. >> what's that saying? great minds think alike. something like that? birds of a feather? >> at least one great mind in that conversation. bp announcing a multi-billion dollar settlement to try to end lawsuits over the gulf oil spill disaster five years ago. is bp now free and clear? also another big health care deal to. sector's been soaring to far this year. speculation, m&a, you name it. all ahead in the second half.

payments company xoom corp. for $9.9 $97 million. it plans to keep all of paypal's current customers. tesla reported a 52% increase from the year prior. centene set to buy healthnet. health net soaring, centene hitting record highs earlier but

paring those gains. people in tennessee had to flee their homes after a train derailment near knoxville. it was carrying flammable and poisonous liquids. no one killed by seven sheriff's deputies were sent to the hospital after they inhaled some fumes. bp agreeing to a multi- multi-billion dollar settlement after that big oil spill. >> this is is a record setter on a couple of different fronts. it is the largest environmental settlement innocent history of the united states. it's also the largest settlement of any kind in terms of a civil settlement with one entity by the department of justice in the department of justice's history. here's how it all breaks down in terms of who gets what. the grand total here -- $18.7 billion. louisiana gets $6.8 billion. you see all the different states there getting a large chunk of money. florida, $3.3 billion, on down to mississippi at $2.2 billion. all of the gulf states benefiting here. florida's attorney general said the goal here in coming up with

this deal was ultimately not to have protracted litigation that goes on and on and on. take a listen. >> we think this is going to help our state recover and move on. the last thing that we wanted was to be tied up again in a black hole of litigation that could have gone 15 20 30 years that perhaps our grandchdren would have seen the results of b certa aeein with that be sentiment. the statement now from bp's chairman -- it resolves t compy's lgest remaining legal exposures, provides clity costsndreates certainty of payment for all partiesinlved mandy and tyler, the money here is going to go to a variety of different funds, environmental clean-up, general state funds, also to help students in the area. a lot of different beneficiaries of this money which will be paid out over a long period of time. this deal will still need to be approved by a federal judge. >> thank you very much eamon

javers reporting from washington. another big deal in health care. the sector has been a high-flyer this year up 10% well outperforming the broader markets. will that rally continue for the rest of the week? we've got your second half playbook, folks. coming up right after this break.

welcome black to "power lunch." shares of car rental giant hertz are hitting their worst levels today. ryan air the european budget carrier, says it will take legal

action against hertz after the company term narted its car rental supply agreement with that carrier citing a breach of contract. both sides are now responding to this whole situation. remember tyler, hertz used to be a $31 stock just last summer. it is now around $17, $18 a share. and activist investors carl icahn and janus partners among the two biggest holders of hertz shares. dow and s&p 500 pretty much gone nowhere in the first half. not so the nasdaq. but one area of the market that does continue to be on fire -- health care. the sector is up about 9% so far this year. will this rally continue? bertha coombs here with your second half playbook in health care. >> we're seeing merger musical chairs throughout health care. in the second half the big five insurers all at or near all-time highs could finally figure out who's left standing. the big questions -- how they pair up, how long it will take how expensive and leveraged will the deals be and will

regulators okay these big deals? by revenues united health is the giant with $143 billion annually. anthem is pursuing cigna. . combined company revenues would be $116 billion. as would a potential aetna/humana combo. that's much bigger than their nearest competitors. hospitals are also near all-time highs, and big gainers this year. analysts raise estimates for the sector after last week's supreme court obamacare ruling but this fall providers face a big tech challenge with the switchover to a complex new billing code system. providers are basing for payment glitches and delays. it is a big test for the electronic records firms. they've vowed to compensate payments for doctor glitches. those are the kind of tie-ups we could see next in health care

more firms combining in different sectors. back to you. >> bertha coombs. thank you. rising mortgage rates, soaring rents, fed rate hikes ahead. what's ahead for housing in the second half. plus -- >> today's "powerhouse" is home to two fortune 500 companies. it is the nation's 54th largest city. and there is no individual income tax here. can you name that city? 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? ♪ every auto insurance policy has a number. but not every insurance company understands

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hello, everyone. i'm sue herera. here's your cnbc news update this hour. george soros and steven spielberg are said to be among the biggest backers of a super pac backing the hillary clinton campaign. super pacs can take donations of unlimited size. miss clinton's campaign reported on wednesday that it has raised $45 million since mid-april. some flight delays today after a united express flight heading to d.c. was diverted to ohio. an airport spokesman says one of the passengers made threatening comments aboard that flight which had departed from st.

louis. officials in north carolina are trying to find a pattern in the series of shark attacks there. there have now been seven shark attacks off both north and south carolina's coasts in the past three weeks. the latest came tuesday when a 12-year-old boy was bitten about 15 feet off the shoreline. the size of a c iffo's signature really does matter pft university of maryland's business school finds cfos with larger signatures tend to be more likely to exploit others and bend the truth. interesting. that's the cnbc news update this hour. >> i wonder if they'll all start changing their signatures. thank you very much for that sue. gold prices closing right now. gold currently sitting at $1,163 moving down .3%. silver copper palladium and platinum, all in the red. moving over to the bond market on the back of the latest jobs report this morning, rick santelli at the cme.

>> the report wasn't bad. it wasn't good. it was kind of peas poreridge reflected in the middle. the 2-day chart gives you a better idea of how the action really fits in. 2.48% is the high yield close. we sit at $2.28. a june 1st of 10s, does today change the notion? it still seems rates have a bias to drift higher. a 2-day of the dollar index doesn't show a lot of volatility. if you zero in on theeuro versus the dollar still continues to be what drives most traders. i will say you wouldn't associate and aggressive interpretation of the fed. in the final seconds i have happy birthday america 239 on

the fourth but i would like to wish all of the support staff and futures traders whose pits are going to close partially today, maybe the rest on monday but thank you for a great job. you are the cornerstone of much software that now moves electronically and there floor will still be vibrant with option trades but i wish to give one big salute to all the personnel i've worked with these many years close to 36 years, job well done. tyler, back to you. >> and well said rick santelli. thank you very much for that tribute to your esteemed colleagues. we appreciate it. to all of you, happy fourth of july. major averages up for much of the early part of the sessions in terms of equities but they've lost their gains, now sporting modest losses. bob pisani is at the new york stock exchange to fill us from. >> drifting lower on light volume. s&p, really this is a lack of bids. no really enthusiastic selling overall. bond rates lower. look at the utilities.

telecom and reits all moving to the up side. yields down. that means banks generally tend to move to the downside particularly the regional banks and that's generally what we're seeing in that particular group. a lot of people have been asking me about what will happen on greece? how you can play that. on a yes vote we could expect the euro to rally and you would expect certain sectors like spain, italy, france and germany, these are etfs you can buy to rally. we asked our partner about that and they do see rallies in this group when you see rallies in the euro. if there is a no vote you can expect a flight to safety a bit. i would expect bonds in europe to rally and i would expect bonds in the united states to rally like the tlt, 20-year treasury. this is just depending how you feel that referendum will go. a lot of people ask me about etf volume in general and ask me how important it is. etf trading is a percentage of total daily value of stock trading. right now it is about 28%. that's high and it is getting higher. it is getting bigger every

single year, tyler. almost a quarter of all the volume, the value of stock trading is now etf. again, june biggest month in a long time. back to you. >> thank you very much bob. matt tuttle from tuttle tech technical management it has been for the s&p the worst week of losses in about 14 weeks. you've made a buy. you've been taking advantage of this. right? >> yeah. we bought monday and we bought tuesday. the way we look at it this market's been mired in this trading range all year. and what happened the other day put us at the bottom of that range. i know what happens in greece over the weekend is going to dominate trading but at the end of the day i think this is a great entry point to get in at the bottom of of this trading range. eventually we'll break through the top. >> what will be the catalyst for breaking through the top? earnings? resolution in greece? something else? >> yes, yes, and yes. it's earnings, it's a resolution

to this greek crisis. we don't think the fed's going to raise interest rates until 2016. >> you decide that after you saw the jobs this morning or -- >> no no. we've actually been calling for that for a while. at the beginning of the year i was really worried that we were going to be totally and completely wrong. but everything i've been saying lately is pointing to 2016 for us. >> what about you, jack? you're on the bond side of things. i was looking at numbers here. we saw another week of outflows for high-yield bond funds. emerging market dead funds. obviously muni bond funds. a lot of outflows there. is this something you expect to continue or change in the coming weeks? >> we don't. we know the second quarter was a challenging environment for fishgsed in fixed income. i just don't think that's going to continue. the markets have gotten ahead of themselves. everybody wants the global economy to pick up but i just don't think that's going to be the case. i certainly don't see a lot of inflation pressures building so i'm not in the camp i don't

think the yields in the bond world are going to continue to drift higher. >> what do you think is going to be happening to bonds in light of what we saw with the jobs market this morning? for example, matt was just saying that he doesn't expect a hike until 2016. >> okay. two quick points. one is that certainly i think there is more uncertainty of actually when the fed is going to tighten, whether september or december. i think the more important question is what is the pace of the tightening look like. will it be shallow, they will go slow. i think they still think they have some things positive from a growth standpoint but it is a diss inflation disinflationary growth spur. i don't don't see it flowing through to inflation. when the fed does tighten, they will will go very slow. >> we're going to leave it there. for more go to powerlunch.cnbc.com. i want to add before you jump

in, ty both of you fuelly think that china is a whole lot more worth watching than greece. 220,000 jobs created in june. expected, 230,000. jobless rate ticked lower slightly. mayor, what do you think of the jobs report here? >> key word is consistency. you've had consistent job growth. this continues to pattern, it continues to trend. but of course you still have high youth unemployment. what the numbers don't reflect is continued high unemployment in many urban communities. so more needs to be done and wage stagnation. we don't have the wage growth that you'd expect in this kind

of tightening job market. it's a good report. it's a consistent report. but there's a lot more work to be done and i say too early to raise interest rates. >> some of the revisions, ron, were a little bit i guess disappointing. if you were rick santelli -- maybe i shouldn't say that how would you grade it. but how would you assess it? >> i'm going to channel my inner santelli. give this jobs report a "c." the number of jobs revised in the last two months have gone down significantly. the job growth we had for this past month -- sure on focus it looks like tts up by 220,000-something. but then we had 432,000 folks who left the workforce. you have a net loss of 200,000 jobs. i think on the whole you are looking at wages are stagnant, you are were looking at the fact that folks just don't have that confidence. with 93 million people out of work in this country. we can sure do a lot more and this jobs report was not a step

in the right direction. >> as mayor morial says ron, one of the key things here is trying to get wages up. a lot of municipalities have pushed through higher minimum wage laws. is that the way to get wages up? or what has to happen for that to happen? >> no. i think that's absolutely a mistake, tyler. i think if you look at the private sector, they're the ones who are fueling economic and job growth in this country. if you're a white castle and you decide that you want to increase the amount of money that you are paying your employees, you should do that. when you say you'll raise the minimum wage to $10, $15 an hour, all that's going to do is hurt younger folks who are looking to enter the job market and it will retard economic growth. >> you agree with that and what about the president's proposal to increase overtime? >> the evidence simply doesn't support what ron's saying. over time that argument's been made. it is really a hollow argument that doesn't have any substantiation. we do need to push up wages. >> how do you do that? >> i'd prefer the public policy step of a national increase in

the minimum wage. because that hasn't happened you have avenue got this patchwork of states and municipalities doing it. that's the reality. it may not be best. it is better to have a national standard. i also think we need broad public investment in infrastructure. i think that would push the economy and i think ron has historically agreed to that. i think the president's step to change the overtime rules is a necessary step because here's a president trying to do what he can with a congress that doesn't want to act. >> do you see ron, the move to broaden the income -- or raise the income limits for which people would be entitled to overtime? do you soo he thatee that in the same way that you see raising the minimum wage? i should point out that i don't think that overtime number has risen since the 1970s or '80s. >> i do. again, i think this is the instance where the president is using his pen and his phone to act rather than working with the congress to try to promote economic development. look, what the president's

overtime rules will do for public sector for me that's fine. if the president wrantsants to do that and that's something congress supports that's fine. but to say private employers should automatically extend these increases in salary i think will only lead to them deciding are we going to reduce the hours or reduce the employees. >> pass a philosophical matter mayor morial why should government set a wage in the first place? if a worker wants to work at $5 an hour and a company wants to pay him $5 an hour why shouldn't they be free to do that? >> it is all about who we are as a nation. work and dignity go hand in hand. if a person works, they ought to be able to support themselves. that's the idea for people to be economically independent. it's tragic that many people work and still can't pay their rent pay for food pay for the necessities of life. that's really what we have to strive for and understand that when we do that.

workers who are at that level in the economy will spend their money back in the economy and therefore continue to prime the economy. we remember 70% of economic growth in this country derives from consumer spending. there is an economic reality. but this is who we are as a nation. idea that work and dignity go hand in hand. >> ron, why don't you aggress that question of whether government really has a role in setting wages at all or is it really a private compact -- contract between a, woulder and erworker around a willing employer. mason, come on over here. i want to introduce you to the crowd. >> i think as we see the mayor's fine son joining on set, i think this is the role the private sector. the government has legitimate role to play as far as providing a social safety net. but it is the private sector that creates the multitude of jobs in this country. if government wants to help us government wants to create economic opportunities, they should restrict have the amount of regulations that are hurting this country. the obamacare bill is going to hurt the amount of people who

are getting in the workworkplace. the cadillac tax will hurt their position pmt government position. i think the government should get out of the way rather than being more intricately involved to make sure to find a way our businesses can have a climate to create economic opportunity. >> have a great weekend, ron. what are you doing this summer, mason? >> camp. >> camp? day camp or sleep-away camp? >> sleep-away. >> how long you going to be gone? >> two weeks. >> all right. fine. good to have you with us. how old are you? >> 13. >> 13. great. have a great summer man. >> one nation one flag. >> right. mandy, take it away. we's waiting for the courts to decide any day now whether sports betting in new jersey will be legalized, and if so will more states follow suit. that is ahead. plus -- >> the city in today's

"powerhouse" is home of the bloomin' brands. four-time host of the super bowl. and the buccaneers hail from here. can you name that city?

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three months inventory. 70 days average on the market. listed for just about $160,000. taxes a mammoth 4 you can pay that in a month. >> this condo is the exact reason tampa is such a great city for pam that to buy real estate. you can still get great opportunities for reasonable prices. this condo is right in the heart of downtown a gated secure community. right in the middle of everything that's going on with the tampa bay lightning. urban chic contemporary condo with gourmet kitchen, floor-to-ceiling windows. walking distance to a lot of night life. definitely a value price property. >> very affordable and looks brand-new. second listing, 3828 west plat

listed for $665,000. taxes $8,100. sign me up andrew! >> well hey. come on down. we'd love to have you. this is a luxury town home in the heart of one of tampa's best school districts. night life entertainment, the soho district all close by. a private elevator. upscale kitchen. no expense spared in this town home. four bedroom. three full baths, two half baths around a two-car garage. definitely a luxury property. we've actually had some professional athletes look oog pretty hard at this property. >> the powerhouse of the week is 15703 reddington drive. listed for $750,000. taxes $4,500 annually. four beds three baths, 3,700 square feet of living space. why are the taxes lower here so much lower than the other one, andrew?

>> in florida we actually have a homestead exemption. homestead exemption allows owners to keep that tax down. this specific property, this is one of the best water front bargains in the country in my opinion. under $200 a square foot. gorgeous open water views. sailboat water. a new dock. under $200 a square foot is really hard to find in our area for gorgeous water front like this. it has a zen like outdoor retreat with trees. lots of upgrades on the inside. but truly definitely a great opportunity for someone looking to buy a vacation home or relocate and live the beach and boating life in tampa bay. >> andrew have a great fourth of july. andrew duncan of the duncan duo. now to today's "celebrity powerhouse." frank sinatra's palm springs sanctuary also known as his villa magio, the ten-acre compound has three separate homes, a pool, a tennis court, a hel ipad and parking for 25

cars. five bedrooms six bathrooms, two kitchens and seven stone fireplaces, all with breathtaking views of palm springs and the coachella valley. it's been a rough year for some of the big social media stocks. so far you've got linkedin pandora, yahoo! yelp all down sharply. can we expect a bounce back in the second half of the year? that's ahead in the second hour of "power lunch." plus a watermelon being blown up with the help of small fireworks. all part of a safety warning ahead of this fourth of july weekend. ou qualify for a sittingham's card today i can offer you no interest for 24 months. thanks to the tools and help at experian.com, i know i have an 812 fico score, so i definitely qualify. so what else can you give me? same day delivery. the ottoman? thank you. fico scores are used in 90% of credit decisions. so get your credit

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please rear this weekend to be safe above all. those were dummies. here are this hour's "power points." one, greece funding needs

deepen. the imf warning greece needs an extension of its european union loans and pro tensionally a large debt write-off. the latest poll results for sunday's referendum show 41.7% vote yes, 43.2% vote no. the u.s. oil rig count is up 12 to 240. this is the first rise since december and finally, federal regulators holding safety hearings on the recalls announced by fiat chrysler about 11 vehicles are in focus and millions of dollars of fines are possible. if you missed any of the stories in the past hour go to powerlunch.cnbc.com. the second laugh of the yearhalf of the year is under way. what are the key sectors to watch the second half? one is housing. diana olick has a look. >> reporter: ty, it will be all about affordability. we'll tell you what direction that could head in this the second half of this year coming up next on "power lunch." . so why pause to take a pill?

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i'm melissa lee. coming up in the second hour of "power lunch," one top analyst says car sales could drop by 40% because of this one thing. he'll tell us what that is ahead. another down day for china.

how can you make some money off of china? plus the president about to speak on new overtime rules. will they hurt the restaurant industry? a great debate is teed up at the top of the hour. the first half of the year in the books, gone. boom. second half is under way. we're drilling down on the key sectors you probably need to watch in the next six months. this hour we look at housing. what is the number one thing to watch for in the back half of the year? diana olick has been looking into the housing crystal ball. >> reporter: it is all about prices. for both buying and renting. home prices are still rising but at a slower pace than this time last year. not the case for rents which are at record highs in some markets, as demand far outpaces supply. yes we are seeing more new multi-family construction and deliveries of those units. but okayccupancy is at an all-time high despite predictions last

year more rent yours would turn into buyers. the key for buyers is two-fold. first the mortgage market. rates are expected to rise slightly and new rules could stem access to credit in the second half of the year. second, supply. housing starts are rising but at a far slower pace than demand. now builders are still trying to hold on to their pricing power which is a lot easier to do when there's slim supply. some are starting to give which could stoke sales in the second half of this year. that is it for the first hour. >> have a great weekend. >> you, too. >> i'm sticking around. you're heading off. let's get to melissa lee for the second however "power." it is 2:00 on wall street and you're watching the second hour of "power lunch." . i'm melissa lee. tyler will be with us for the hour. as we head into the long holiday weekend, the dow has had about a 100-point swing on this jobs thursday. the dow is now down by 58

points. take a look at how crude oil is doing, up .5%, $57.26. and gold trading lower today, $1,163.60 an ounce. tesla shares increasing today. phil lebeau joins us with more on the tesla story. >> reporter: melissa, notice that stock now over $270 a share. it's had a nice move today. here's why. when you look at 2q deliveries came in a little bit higher than many wall street analysts were expected. 11,507 deliveries. most of the notes i'd be checking prior to this expected between 10,500 10,750. again, the number exceeded expectations. but for tesla it is the full-year deliveries and once they hit the target that they said later this year. the total target delivery is

55,000. that's their projection for this year. deliveries start to ramp up late third quarter, into fourth quarter. that's when we expect to see the first model x delivered. though there is chatter about whether or not it will be on time. quickly, some discussion today about a bank of america/merrill lynch regarding what the future holds for tesla. john murphy the analyst there says regardless of an investor's view, on the ultimate level of electric vehicle penetration that will occur in the global market over time competition in this segment is ramping meaningfully and will increasingly pressure tesla. that's the latest on tesla today. back to you. >> thank you, phil. today's gain on tesla shares is very nice but look at how the stock has done over the past three years. up more than -- can you guess? 800%. and the stock is getting back towards its all-time high. it is up 20% over the past year. all-time high was $291 a share. that was set last year.

tesla's isn't the only automaker reporting strong sales. with the exception of general motors fiat chrysler toyota and ford all reporting an overall increase in sales for june. one auto analyst sees a big threat emerging in the future. saying driverless cars may cut u.s. auto sales by 40% in the next 25 years. with us brian johnson, senior auto analyst with barclays. let's get to the driverless cars in a moment. first, what do you make of tesla's stock. and what about paying attention to the 55,000 target at the end of the year. with the first quarter and second quarter deliveries that would imply 33,000-plus for the balance of the year. how back-end loaded is tesla's delivery schedule going to be? >> it's very back-end loaded. they really need the x to launch with some initial deliveries in 3q then ramp up to 10,000 to 12,000 units in 4q. frankly, if they miss that i'm not sure if the market at this

point cares. it is fairly bulletproof. one of yurl colleagues calls it a cult stock. we do see longer term competition but we're just not sure what if anything sets tesla back. that's why we keep it as an equal weight. >> equal weight not a buy at this point. >> correct. >> let's talk about driverless cars. everyone knows they are on the horizon but in terms of pufting a number to how many cars on the road that will be displaced, nobody's come up with a number. you say 50% of vehicles with risk rfof displacement will lead to auto driving. you say it will be a gradual decline we'll see at the big three? >> yeah. we could see a gradual decline depending on when the first fully self-driving cars become available. google says 2020 on open roads for public consumption. continental ag a leading german auto partsmaker says 2035.

if they come on 2025, 20. 30 2030, it will be a gradual process. 60% of the population wants a car to go to point a to point b. >> the way you are thinking about driverless cars are not only going to be the ones owned by fleets maybe operated by the likes of an uber but also families could own a driverless car, so therefore the number of vehicles owned per household will decline as well. >> yes. absolutely. we really see three types of cars in the future. the traditional car, which will be rural areas, traditional work trucks which could be self-driving but it is still one car per user. family autonomous vehicles. we use in our report of picture of mercedes concept. a hyperluxurious car that instead of a family having three cars they could go with two or two cars to one, drive one partner to work goes back picks up the other partner, for

errands around town and then is available. what we call the shared autonomous vehicles. think of those as uber or lift without the driver. that really are called upon dispatched much as uber and lift are today. and take people around without the need to own any car. >> so this is really bad news for gm and ford as you point out in your note. they'll have it to decrease north american production by a lot, more than half at this point. johnson controls leers, delphi they'll also feel the impact over this 25-year time. in terms of who's in the driver's seat -- don't mean to use that pun but sort of came out -- who would be the sort of the top play based on this trend? >> our top play based on this trend is mobile light which makes the current semi-autonomous software burned on to a chip for driving. it is a leader in that marketplace. longer term it's going to migrate from highway auto pilot which is coming out in the next couple years to fully

autonomous. they're really the pure play at the center of this. longer term there will be fewer cars to put it on but a substantial proportion of those will have either mobileye or bosh's bosch's software on them. now to explain the growth right here yesterday on "power lunch," the government looking into whether or not some of the nation's top airlines have been colluding in the limited number of available seats to keep fares high. seth, good to have you here. very few of us know how much evidence the justice department may have in this case and why they were led to such a probe, but as an airline traveler it is easy isn't it to see why some people might think these airlines are colluding. one airline charges for extra leg room they all charge for extra leg room. one airline flies new york to l.a. for $600 they all fly new

york to l.a. for $600. and then there's the anomalyies that you can't play from new york to minneapolis for $600 -- it's $900. and they all charge $900! it's easy to see why some people would think it's fishy here. right? >> on top of all that for the past several years, really for the first time in history we've had airfares rising in real terms on a consistent basis. and airlines finally of course earning consistent profits as a result. now if you look just at that i mean it's hard to look at this market and say that it sort of smacks of collusion because airlines are still not putting up profit margins that would make most industries jealous. they're only doing well by their own awful standards. and over the past day a lot of people have said four airlines control 80% of the industry. well i mean four cell phone companies control a lot more of that industry. in most industries it is like that. so airlines have simply made their industry look a lot more

like others. pits's just that compared to the -- yeah air fares have had to rise. >> they're doing well by their own horrible standards. that's going to be the quote of the day, seth. can you believe that airline executives -- i asked gordon bethune an hour ago -- are dumb enough -- and in the past some of them were dumb enough to do some really stupid things. but do you believe they would be dumb enough to collude? >> i'm not sure i can answer that as colorfully as gordon. that's the question though. now look if doj thinks that they can come up with these guys sitting in a smoke-filled room so to speak -- i guess now videotaping or something like that conspiring to constrain capacity, that's one thing. but if the argument here is oh my gosh we can't fly to disney world for $150 round trip anymore on the backs of the shareholders who are wiped out during those bankruptcy, on the backs of our neighbors who are pilots and flight attendants who lost their jobs. that's the whole where there's

smoke, there's fire thing doesn't really work here because again, they've only sort of created a situation where, yeah they keep their heads above water on a sustained basis. by the way, it is good even as a consumer to not be buying tickets from airlines if we don't even know they'll be in business by the time we fly anymore. still a pretty decent balance, but just a bit more expensive than it was a few years ago. s&p at the lows of the do you with less than two hours left in the trading week. western union the biggest lodzer er loser right now. jack, we noted markets are closing in on session lows at this point. volatility index even before a three-day weekend we typically see the vix go down. >> how are you? >> hi. what do you make of the weekend that had the referendum in it? >> it is a question of what happens in greece not only

that, you have some macro events fourth of july weekend. we've heard about the high level of terrorist i guess the urgency of being able to be careful and watch what we're doing around us. all of that has added to the tension. all we've really seen is people running for protection people buying put protection seeing people selling calls on this. what they don't seem to be doing is running for what i call the flight to quality. they don't seem to be running for the bond market the way you would normally see. what that tells me is that what is going to happen in greece is going to probably turn into what i call a buy-buy scenarios. if they vote yes, then it is an automatic buy. it is instant gratification. if they vote no then wait a day or two, let the global margin call settle, then more than likely we see the market take off again. >> a bye-bye scenario. wlaeps what's the bigger backdrop? you actually expect second quarter earnings to come in stronger. you expect a good market set-up

into the second half. >> i do. in the first half we saw this great rotation out of fixed income. all that cash coming out of the 10-year, the 30-year, it's in the hands of portfolio managers. remember it says portfolio manager on their door now hoarder or keeper of cash. that money has got to be put to work. one of the best alternatives our u.s. equities. when you look at the u.s. equity market right now, understand we still have all those fundamentals in for what i consider to be a very good second half. if that happens, look for 5% or 10% very quickly. it is going to be one of those rallies floebnobody can get into and nobody can expect as it's happening. >> jack thanks from chicago. for the rest of the hour -- sports gambling in new jersey. would it give atlantic city a much needed boost? and what is it like in greece right now? michelle caruso-cabrera is there talking to local business people and brings us one plan's view. later president obama announces new rules for overtime pay. will that hurt the restaurant industry?

all that and much more coming up on "power lunch." ♪ every auto insurance 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.

atlantic city new jersey has lost one-third of its casinos over the past year. what about the ones that remain? morgan brennan spoke to the head of one of those casinos. >> a lot has changed in atlantic city since last year. we have seen one-third of the supplies been cut down in atlantic city since last year. one that have survived and are re-investing in their properties

have started to grow. that's true of the golden nugget which has seen revenue increase 38% this year. i sat down with the vp and general manager to discuss the gaming market stabilization and also what it would mean if there casinos were greenlighted in other parts of new jersey. there are four proposals. >> you're just cannibalize anex existing market. i don't think the meadowlands will agree. you will you a probably see two more casinos close. >> how about sports betting? we know that the third district court of appeals is getting ready to rule on sports betting in new jersey really any day now. if it were to rule in favor of new jersey and the other plaintiffs in that case it could have national repercussions. what does it mean for golden nugget? are you building a sports book -- >> we most likely would and it would be a great amenity to add to our offerings but it is not

going to be a game changer in atlantic city or any other jurisdiction. >> because it is not expected to be a game changer, not every un's optimistic that the court will rule in new jersey's favor. i spoke with someone sho he a wagering sports bet something still years, not months away. we wait for the court to decide any day, what are the odds of sports betting in new jersey legalizing and if it gets approved will more states follow along? here with me president of maglan capital, and also a sports gambling attorney. there aren't so many of those, are there, david? >> no there are not. >> thankfully not. >> what is your sense from where you sit as to whether or not sports betting will become legal in new jersey and should it? >> i think in some way, shape or form it will get legalized in new jersey whether it be through this court case or the

head of the nba is looking to have a comprehensive overhaul of sports gaming in the united states. >> he favors it right? but, daniel he wants it regulated, not the unregulated kind of betting that goes on now. >> well, that's right, tyler. the problem from the nba's perspective with new jersey's approach is that it would be unregulated gambling without any government oversight, and adam silver and the other sports leagues would be concerned that this would lead to a state by state switch-on with complete unregulated sports betting and the leagues want it regulated to be able to prevent match fixing to preserve the integrity of the games and to monitor unusual betting activity. but new jersey's version, while it is not regulated, will certainly be monitored because the sports books, the casinos, the race tracks have every interest in making sure that this is a fair game and they will be the first ones to report

any suspicious or untoward activity to the leagues. >> couple of thoughts here david. number one, silver is ahead of the other commissioners. even if he doesn't like the idea of unregulated are sports betting. number two, don't we already have a lot of sports betting mass massacre masquerading around? >> i think we're at the cusp of a revolution of sports betting in this country. the illegal market is enormous. >> illegal. >> correct. >> bookies. >> correct. estimates are between $80 billion and $380 billion. the total casino gambling market -- >> none of this is bet on nfl games, is it? >> yeah. right. the total casino market is just $35 billion. the current total legal sports betting is just $4 billion. so it will be a meaningful

creative amount of revenue to the casinos. at the same time as new jersey is getting into gear to make sure that it gets this piece of revenue stream and, by the way, this is chris christie's way of giving atlantic city something for going ahead and allowing gaming casino gambling, throughout the state of new jersey while nevada's already getting geared up as well in order to make sure that their arm in terms of book making stretches throughout it the united states and is not just limited to nevada. so this is going to be some fierce competition for an enormous revenue stream. >> meaningful revenue. daniel, should sports betting be more broadly legal than it is today, and what is your view of those daily fantasy leagues that are out there? i use "leagues" advisedly. >> well, tyler, daily fantasy sports is a growing industry but it represents only a fraction of the potential of the sport's gambling market. a lot of experts believe that

the total amount of entry fees in fantasy sports nationally is under $4 billion. the sports betting market the illegal market is 100 times that amount. 400 billion$400 billion. >> is it inevitable that it will be legal? should it be? >> it will be. it is not only inevitable but it will happen either as a result of this case or as a result of federal regulation at the congressional level. this new jersey case is all about the timing of when sports betting becomes legal, because if new jersey wins and we will get a decision any day or any week now, you can look for pennsylvania, delaware minnesota, south carolina indiana, to enact similar sport wagering laws in reliance on the 3rd circuit's decision. then it the train will have left the station. >> let me ask. if betting becomes more broadly legal, is it a threat to the

integrity of any of these professional sports or college sports for that matter? >> i don't in hess sarl think so from the folks that i know that bet on games on an illegal basis, it will not go ahead. >> how about beyou, daniel? >> it will further protect the integrity of the games because it will bring the half a billion dollar annual wagering industry out from under the underground and it will be in the sunlight where it can be regulated and monitored like the securities industry, the leepgzagues want to know the level of betting activity -- who, what where and when. in the present environment they are completely in the dark. >> thank you, gentlemen, very much. >> thank you. >> thank you for having me. still to come we keep talking about greece from the big picture perspective. what it means for markets. but what about real people? not knowing whether they'll be able to get money out of the bank. what is it like in athens where michelle caruso-cabrera is talking to real people? life without money. we'll bring you that coming up.

plus i get paid for this. >> i'm kevin may and i get paid for this. ♪ >> what it takes to be an animal acupuncturist coming up on "power lunch."

got a pretty volatile market ahead of the long holiday weekend. vix spiking almost 6%. the dow more than 50 points. s&p 500 is just point point off session lows. russell the worse major indices, down .9%. western union and dupont also down. cognizant and united health all down. time for our regular series where we feature people who have very cool jobs. today meet a man whose clients are furry, four-legend and full of needles by the time he's done with them. >> i'm kevin may. and i get paid to be an animal acupuncturist. ♪

>> we're treating soreness and poin throughout the body the neck and the back. hips. animals that sometimes cannot take certain medications or they're not responding to certain medications, musculoskeletal pain. so arthritis, sore muscles, dogs or horses that have nerve problems. like paralysis or pain related to pinched nerves or the spinal cord. that acupuncture really helps a lot with that. dogs don't like needles in their toes at the end of their toes and toe nails. that's a little bit too painful for them but they'll take it in their paw. where a horse, those points are actually powerful points. it just helps us to treat when it comes to pain or whatnot. one of the most interesting cases we worked on was a camel who was arthritic in his left front leg. we got to treating him, he got

to moving around better and moving around better around they were pretty happy with him to be payable to come in and do something that nobody has been able to do. and to help turn that patient around. that's when it is quite rewarding. i just get up and play with everybody's animals, go home with a smile on my face. >> now the smallest animal that may has done acupuncture on was an arthritic lizard. to find out the largest animal go to "power lunch" dot krchltpowerlunch.cnbc.com. president obama about to announce new overtime rules. it will mean more money for workers but higher costs for businesses especially restaurants. we'll get both sides of issue. oil flirting with going negative. we head to the nymex live for the crude close when "power lunch" returns.

hello, everyone. i'm sue herera. a new report out suggests progress in the fight against aids. the science journal says that an experimental vaccine has prevented half a group of monkeys against a virus that's similar to aids.

jan son, the drug making arm of johnson & johnson is behind the vaccine and already testing it on humans. a train containing a toxic substance derailed earlier today in tennessee and caught fire. dozens of people have been told to leave the area and residents are also being told not to drink the water. potential headway in the nuclear talks with iran. france's foreign minister says he's hopeful global leaders and tehran can make progress this weekend. deadline is next tuesday. japan facing the united states in the world cup final this sunday after beating england. england blew the game in the last minute by scoring against itself basically in its own goal. sunday's japan/u.s. game will be a rematch of the 2011 world cup final. the u.s. lost that game on penalty kicks after the game ended in a 2-2 draw. must-see tv.

that's our cnbc news update this hour. back to "power lunch." >> i felt so sick for that girl from england! >> i know. it was just heartwrenching. >> it truly was. but now the u.s. gets to play their rival, japan. they got a good record against japan though. >> they really do. it is a very strong team on both sides. >> jackie deangelis now for the oil close. >> good afternoon. it was actually a very interesting oil close because after being positive up about $1 for most of the day we turned negative at the close. 56.9 $56.93 is where is settled. today's pop while it lasted not really convincing to traders. just buying the dip mentality. didn't have enough strength to really break through but what's interesting about it is it shows you the sentiment traders had as they were going into the holiday weekend. they are watching the developing developments in greece and nuclear talks with iran.

rig counts went up rigs up 12. that was a surprise and that's when we started to sell off. chinese stocks seeing even more downside in the overnight session. how can traders here cash in on the next move? let's ask the "trading nation." stacey gilbert, boris schlossberg. just yesterday i was talking to the nation about china and there was talk about a beijing put. so much for that. >> right. exactly. one thing i would keep in mind is that i think in some ways we are talking about a tale of two chinas here. you have your a-shares which an etf like ashr would track, then your h shares. they are moving less correlated or less in singe with each other than we've seen historically over the last several years. i do believe there is a space station in what's happening between a-shares and h-shares. keep the bear case about valuations being too lofty in

chinese markets they're tiply referring to the h-shares because they are cheaper. the bull case for china here is economic growth potentially and well as an accommodative government. i'd like fxi options to position for an up side if there is an up side pop. because that volatility level is high, buying outright options right now is more expensive than it is historically been. but if you look at the fxi call spread, you can see almost a 200% return on your initial investment of that call spread. it is a different way, it is less risk potentially more reward with a rally here in china. >> boris, how would you like to trade china? >> i see nothing but bad news ahead. i think we have a secular slowdown. you can throw everything but the kitchen sink at the chinese economy and it doesn't seem to be responding. if the chinese blows up and has

a huge bubble on top you'll see massive ramifications all over europe. australia has ridden the whole chinese move and now will ride everything down. to me the great short is the australian dollar teeterh teetering at the 75 cent level. as the fortunes of china reflect themselves in the fortunes of australia. >> for more "trading nation," head to tradingnation.cnbc.com. to greece now where a pivotal referendum occurs on sunday. greeks will vote on whether or not to accept unpopular reforms in exchange for billions of bailout money. barks banks closed all this week ahead of the referendum. the shuttering of the banks taking a big toll on business owners who are caught between their government and their customers while this drama unfolds. it is paralysis basically. michelle is live in athens and she joins us now.

>> hi tyler. that's because this country is so reliant on imports. you need a functioning banking system to pay overseas suppliers. as a result there is an increasing worry about shortages in the coming days or come weeks. we visited one of the oldest pharmacies in all of greece and spoke with the pharmacist there and he tells us that already his customers buying habits are changing. >> my grandfather was a pharmacist. he established his pharmacy across the street. and then he moved it in this part of the square back in 1918 i think. i'm a pharmacist. my children are pharmacists. so we're keeping the tradition going on. there's no credit facilities. must keep your absolute needed stock. you cannot overstock. >> are you seeing a shifting in the purchasing habits of the customers? >> yes. some pharmaceuticals, infant

milk, products for -- >> fewer cosmetics. >> cosmetics is not on their top list right now. people are very concerned and on the verge of being a little bit panicky. this is not a healthy attitude but it is -- it's a reality. i'm in favor of european viable solution. i cannot see my country outside of europe. it is going to be the worst thing that we can experience. >> can you ever think it would get this bad? >> not really. we hoped that we wouldn't find ourselves in this situation and we don't know what lies ahead. >> reporter: the leaders of the country keep telling the greek people that the banks will re-open soon perhaps the very day after the referendum within days. banking experts think that's incredibly unlikely that you're liking looking at weeks before things get settled and before there is enough confidence to

re-open the banks here. so the economy's going to suffer for some time tyler. >> all right, i'm take it michelle. thanks so much. weeks without access to capital. that's amazing. less than 90 minutes in the trading week left. u.s. stocks continue to trade lower. we're just off the session lows in fact. let's bring in the chief investment officer with bmo private bank. jack, michelle set the scene in greece. say there is a sell-off on the referendum that the vote is actually no. would that be a buying opportunity? i think that's another way of slicing the question is there more beyond greece the impact? is there contagion risk there? >> yeah. you've got to really slice it up, melissa. i don't believe there's contagion risk. i don't believe there's economic risk. however, there is headline psychological risk and we could see a sell-off. the simple fact is that the market's expensive. we've got fed phobia and maybe that's an offset. but the simple fact is if you look at the price to sales ratio over the last 20 years, we're

trading at probably 25% premium to that doesn't mean the market has to drop 25%, but to me it suggests even if we get a pullback, unless it is severe i would not view it as a buying opportunity for investors. certainly traders. but for those investors that have a three, four five-year time horizon, there are probably cheaper values to come some time between now and then. >> you don't think second quarter earnings are going to come to the rescue? they start in earnest on july 7th with alcoa's report. >> we've got earnings expected to be done about 5.5%. revenue down about 3.5%. not a pretty picture. clearly i expect 80% of the companies to outpace analyst expectations but i do think the fact remains that earnings will likely be negative year over year. revenues, too. that's going to underscore this valuation question and i think could put pressure at least at the very least a headwind for

growth ahead. so while momentum is still strong we still have a fair amount of liquidity, clearly sitting here in north america, we want -- from our perspective, we'd love to see the greeks vote yes on the referendum, just because we want to avoid the political risk associated with it. but i will say, this quarter's earnings report is going to be a nail-biter because they're not going to be great. >> jack thanks so much. jack ablin. up next nancy pelosi weighs in on the scandal surrounding former house speaker dennis hastert. find out what the ex-speaker lass tohas to say about another ex-speaker when "power lunch" returns. >> announcer: and now, the latest from tradingnation.cnbc.com and a word from our sponsor.

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right now on our website, we profile some of the most powerful people in politics. check it out at powerlunch.cnbc.com. our own john harwood recently sat down with former house speaker and current house minority leader nancy pelosi to talk about lots of issues including recent revelations involving her former colleague, dennis hastert, himself a former speaker. take a listen. >> when the very sad news broke about speaker hastert a couple weeks ago, some people observed the irony that at a time when the republican house was pursuing the impeachment of president clinton over a private scandal, the then-speaker the speaker-elect, and then person who succeeded the speaker-elect all had private scandals of their own. >> there were indictments every time you turned around and subpoenas from the justice department. not from the congress. so there was just a moral fiber

that wasn't there. and of course it was spelled out with katrina when crow in iism and incompetence were spelled out so clearly. >> do you think that's a characteristic of the modern republican party? >> no i don't. >> that that fiber is not there? >> i think it was hard to understand why they tolerated what they did. but -- and i never thought that there was any vulnerability in terms of the speaker. but let me just say this. mr. -- nobody really regarded mr. hastert as "the speaker" of the house. they couldn't have tom delay be the speaker so they had to find somebody innocuous, cooperative, who could be the speaker. that's how we all saw it. if you wanted to get in an engagement, you didn't go to the speaker for that. you went to mr. delay who really ruled the roost. >> you saw hastert as a figure head. >> absolutely. that doesn't make this any

sadder. the damage they were doing was not springing from him. but acquiesced to by him. >> fascinating comments there. you can watch more of john's conversation with nancy pelosi on "power lunch" dot c new york stock exchange . not all business owners are on board with the president's plan. we'll debate that when "power lunch" returns. ♪ every auto insurance 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.

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the future's so bright out here i ought to wear shades. we're here in aspen to talk big ideas. shell's marvin odom is going to join us. we're also going to talk to a mexican billionaire, eager for his thoughts on a number of topics. goldie hawn will talk to us about mindfulness. i'll age 30 years and gain 30 pounds and learn how much of a struggle it is for those folks in that position. >> we'll look forward to that. you're looking at a live picture of president obama speaking in wisconsin. he's selling his new plan to increase the number of people eligible for overtime pay while

some argue it will help the middle class others are concerned. white castle says the president's plan we are joined by david mcdougal, ceo of backyard burgers. welcome. good to have you with us. have you looked at the numbers of your employees who, under the president's plan would suddenly be eligible to receive overtime pay who don't, can't now because they earn too much? how many people would it affect in your company and what would it cost you? >> in our business we have 22 general managers that are salaried. all of them currently would then qualify for the overtime pay, according to the president's proposal. that does not include our franchisees which have 39. i can't say i've estimated what the cost will be, but certainly it is going to be an increased

cost. >> are those general managers paid by the hour? you said they are paid by a salary why. would they then receive overtime? >> they fall between that our general managers fall between that $35,000 and $50,000. the new proposal you need to make a minimum of $50,400 to be exempt from overtime. the other piece to that is our general managers receive additional benefits bonuses, enhanced health care et cetera. >> you think this would be a bad idea for you and your business. what would it cause you to do in terms of changing your pay structure or changing the number of people 0 you hire or how you pay them? >> for a handful of general managers, we would likely push them up over $50,000400. for the rest we would put them at an hourly rate as an hourly general manager. they would still make the same. i had a conference call with all our gms today to ensure them

that their compensation won't change, but again, it would look different because it would be based on an hourly plus set overtime factor. >> a set overtime factor as opposed to something different. would it cause to you hire less do you think? >> it would depend. one thing about a general manager is they take ownership for the business and there are times that they do have to work additional hours. that would clearly incur additional costs. >> you pay them overtime now or don't? >> they are salaried. they have additional benefits and maybe rest the hourly team does. >> additional benefits in the form of equity? >> monthly bonuses, health care benefits. they get two to four weeks of personal time off each year. >> how is business overall? >> business has been good. we had a very good first half of

the year. i'm optimistic about the second half of the year. this along with a number of other things implementation affordable care act which we did in january, $15 minimum wage in paid sick leave are all things that certainly are concerning me. >> we appreciate you being with us david mcdougal ceo of backyard burgers. the president talking today about the jobs report in that rally. john harwood is live in washington with more on this. >> we've just seen the president in an extraordinarily good mood speaking to a crowd at the university of wisconsin lacrosse hailing the supreme court decisions on gay rights and also on the affordable care act and talking about the growth in jobs today, even though it was a mixed report in terms of how economists reacted to it this president cast it as good news.

>> we've seen 64 straight months of private sector job growth which is a new record. 12.8 million new jobs all told. that's good. we've got more work to do. we've got to get wages and incomes to keep going up. >> of course that is a lead in to the president's discussion of that overtime proposal, which would allow managers making more than $23,000 up to $50,000 to get overtime pay. as you just illustrated, this is very very controversial with criticism from republicans and employers. >> thanks for that. it's been a rocky year for some of the biggest social media names. what is in store for the second half? josh is looking into social media's crystal ball. >> investors have been liking some social media stocks defriending others. we'll have a round-up when "power lunch" continues.

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i accept that i'm not as fast, but i'm still going for my personal best... and for eliquis. reduced risk of stroke... plus less major bleeding. ask your doctor... if eliquis is right for you. ♪a one, a two, a three percent cash back♪ next. there's gotta be a better way to find the right card. creditcards.com lets you compare hundreds of cards to find the one that's right for you. just search, compare, and apply at creditcards.com. it's been a rough year for some of the social media stocks. pandora down 15%, yahoo down over 20% and yelp down over 30% year-to-date. can you expect a bounceback in the second half of the year? josh lipton is break out the second half play book for social. >> it's not all bad news.

facebook stock up more than 10% this year. bulls point to strong engagement, the ramp up of advertising and testing a video ad feature in a big challenge to google's youtube. there is twitter which has gone nowhere this year and deep in the red over the past 12 months. analysts know core users are heavy consumers of the service but attrition of new users is very high. ceo search introduces uncertainty as well. dick costolo is out. jack dorsey is in as interim ceo. who could be permanent ceo? they could be anyone from adam bain to ross levinson former interim yahoo ceo. finally linkedin down sharply from that february high on its last earnings call the company offered disappointing guidance but 75% of analysts covering

linkedin say it is a buy, including rbc's mark mahaney saying the company boasts one of the strongest revenue streams in the space with plenty of margin expansion opportunity ahead. >> yelp is down 11% on reports the ceo has said we are not looking for to be acquired at this point. >> right. certainly was a lot of excitement about who might be interested in yelp. i heard microsoft. with yelp, the problem is they are still strong net revenue growth. you've got 90,000 paying customers, but there were real concerns including international where there has not been enough traction according to analysts to justify the valuation. kiss disappointing news for yelp down this year. >> tonight on "fast money" at

5:00, the burger wars. we are blind tasting them and trading them. >> sign me up. have a great fourth. that will do it for "power lunch." >> coincidentally, this is the "closing bell." i'm bill griffeth at the new york stock exchange. >> it's great to see you, about i'll. i'm kelly evans at the aspen ideas festival here in colorado. >> lots of ideas. one hour of trading left before the long holiday weekend. investors focused on this morning's jobs number and the crucial vote coming up in greece on sunday. even if greeks vote yes on this referendum it is still unclear when