>> they go a long way towards fixing things. >> weekly call buying very big. >> the big fat rings make up for all the wrongs. that does it for us. power lunch begins right now. tyler is out today. we are off our highs but right now we are still up the dough. as for the nasdaq that is up pi over 53 points and the s&p is gaining by 1.3%. the russel turned negative in the past hour. it is moving back into the green up by four tenths of a percent. yesterday we saw a massive reversal.

there is another specific reason why we need to keep on tuning into this show. but first let's get down to the floor. sarah? >> hi. let's try this again. stocks are rallying. the question is can it last into the close? both have their fingers crossed again. >> we started strong. very sort of slow feet off of the top hoar. you know what you like. this is a two day. we never passed the high of yesterday and people are hoping on a technical basis.

let's take a look at market internals. the trend, i'm going to call it a slow fade. it was even 5-1 at the open. the volume has been on the heavy side for a while here. that's what i mean wi by a slow fade here. they are all up. but slow fade. it's still up. wanted a little bit more. >> i put up one more. it was what?

36 a month ago. and the volume is tending towards the heavy side. >> it does look a little bit like yesterday does. mandy mentioned it at the top of the show. watching a fairly steady trend. giving some healthy skepticism. investors looking for buying opportunities per chaps on the chip sector.

actually moving up fairly nicely. up a little bit less than two%. you can see broadcome up there almost 4%. fading just a little bit as far as what they were earlier. >> you are indeed. thank you very much. let's take a look at the under pressure right now. gold is selling off down almost 1.5%. and you have got miners like newmont sitting around multiyear lows.

>> part of the story may be the stronger u.s. dollar. the euro, the japanese yen and other currencies. you can see it's stronger. better durable goods report. interestingly, here's a look at the u.s. dollar and the u.s. stock market and they have been trading hand in hand. usually the market likes a weaker dollar. this relationship is because of the massive unwind that we have been seeing. but also the strong dollar had been a big winner this year. a crowded trade all losing steam this week. dollar is also stronger again. we did see a lot of relief there especially for russia, turkey, turkey is up a little bit and mexico has been very hard hit.

it is getting a boost. obviously emerging markets have become a global sell-off. >> this someone a dog plus. i tell you what. this auction first of all really reflects some of the volatility in the treasury complex. the notion that yields a bit more sticky to the upside. equities have been more gruesome to the downside. right towards the end, the market was thrown out to 146 prisons but it looked to me like around 1.45 is really when it was trading.

you have to go all the way back to july of 2009. directs were the only thing close. so remaining 29 million which equals 90 billion comes in the form of seven year notes tomorrow. >> not so hot. the rest of the bond market, note yields. ten year note yields 10:15. >> backsliding a little bit. let's get to bertha.

>> interesting story on oil. you had a much bigger than expected draw down of 5.5 million barrels according to the government. the expectation has been because of the refinery that was out. a quarter of a million barrels a day so that was supported. so that continues to be a drag pain. has been down all week since that refinery came back online on monday. that surprise build adding more to the downside. overall the strong dollar is posing a bit of a head wind for energy. it is moving higher for the first day and a couple of days as the forecast calls for more hot weather which means more power generation which means a

lot more utilities using natural gas. >> thank you very much. and check out some of america's blue chip names. names like chevron down 40%. i could keep on going. the blue chip is worth looking at now, though. a closer look. >> that was since the beginning of the month. take a look at just the last week. the last six trading days that we have seen. let's take a look at some of the big easy losers. there are eight stocks hovering because they are still trading. goldman down 10%. microsoft also down by that amount. 11% so far over the past week.

large cap far ma, merk, and the next company here needs no introduction. oil and gas stocks. and the single worst performing stock, boeing. is that a bad sign or are these beaten up enough to represent a buying opportunity. >> here's the question. thank you very much. let's talk more about the question. >> the word bubble got thrown around. frothy.

with the heavy selling wrrks do the valuations stand now. >> keep in mind that the stock market has gone phenomenally well ever since the financial crisis and this is the first correction we have seen in over four years. in my view, a 10% correction is not enough. i think we can see stocks go lower. i think we are getting closer to the bottom. we will probably go down 15 to 20% from the top. >> what are you buying? what are you adding? >> i like ver vie rooi zon and ibm. verizon has a fios business. ibm has made a number of critical mistakes. but they are transitioning and pretty soon the year-over-year

numbers will look good by comparison. i like a much smaller company called rent a center. they are showing same store sales growth and dividend. >> hang on. we want to get to phil lebeau in chicago with a news alert. >> true car is out. they are expecting a robust month. general motors edging closer and ford now trading under $13 a share. both of those in part because of their exposure to china. take a look at shares of fiat chrysler which has very little

exposure to china. it was up yesterday and today it is slightly higher. this is an indication that china is really what's hurting some of the stocks. >> thank you very much. so phil's point, 17.2 million is a pretty nice rate. >> you know, i'm really more interested in some of the other stocks. it's an indication that the u.s. economy is actually doing pretty well. i think we're going to rotate. but stocks perhaps return 5 to 10%.

>> cramers words but actually in this return to buying that we're seeing today those stocks are out performing. >> not all the stocks are overvalued. but i think in general we will see a rotation into names that are more undervalued and more traditional value investing. i think we will eventually come back into favor. >> thanks for joining us. mandy? >> and we head out. here are a look at some of the

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cash and stocks. it is up more than 40%. clothing retailer up by 9 cents. also raised the 2015 outlook. according to a retail report, data storage and retail giant actively considering a proposal. it is up over 3%. >> okay. thank you. let's take a look at what treasury yields are doing. they did fall back on the dove-ish comments. he is raising questions. >> from my perspective. at this moment the -- seems less compelling to me that it was a few weeks ago.

>> steve, what did you make of these comments and what have people been saying about them? >> i think he is affirming a decision that the marker conclusion, the market has already come to. when you have the market volatility, when you have7ybé strength and weakness in china it does put off the timing i think of the federal reserve. it could become more compelling if the data starts to go the right way. i wanted to show you the conclusion. the balance is there.

i think what is more interesting is the next chart which ask the funds rate for the group. take a look at that. and then move, what you see there is that tightening has been come out of the forecast. that's sort of like an easing in a way. i'm not really sure it's off the table but it's really just saying hey, all have happened and they dial out the chances of a rate hike somewhat. >> dudly really singled out. it has been trickling through to how a consumer feels with the economy.

we have seen situations in the past where confidence has plunged. i remember right after 9/11, a tremendous increase in car sales to go right along with that. be a little bit careful on that. it's the first indicator but not a real economy indicator. >> watch what they do and not what they say. steve, thank you very much. see you in a bit. we will look for your interview with the president tomorrow. today new numbers out on the mortgage market. >> on the flip side of today's stock rally is a slight pull out as yields go up and mortgage rates follow up with the yields. that was the calm before the

storm of this week. we did see a bump up in applications for low down payment, government loans which pushed it up 2% for the week. rates had been moving slightly lower at the end of last week but not enough to push refis. >> i will tell you which of the recently battered retail stocks will be battling now. the s&p 500 wiping out more than -- just this week. about two trillion dollars lost in the past seven trading days. it is a week for the history books. we will be back.

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retail sector, a baby out with the bath water. >> that is much better than expected. they are benefitting from a better product psycycle. appliances. wearables. doing a great job of managing costs. just starting to buy back stocks. we think that is definitely a company that is poised to outperform. >> i think best buy was the only positive retail stock week to date. you also have restoration hardware and game stop on your list. >> i do. so restoration hardware is a stock that is sort of flat.

down a little bit year to date. that's very positive for the stock. game stop is a company where it's a very high shortage, almost 50% of the flow. they're in the sweet spot. you have a new console generation that just started with the xbox 1, play station four. game stop has a ton of market share. >> thank you. sarah. >> dough up 280. let's get a check on the bond

market. new york fed president also questioning a september rate hike. what do you make of it all rick? >> all i know is your investment manager will call you up and let you know what will happen after i see university michigan sentiment. we were all scratching our head on that. it popped. definitely moving here. look at a two day of 30s. it's popping. it's all about steepening which really does seem to be pushing the fed back. how will it turn out? nobody knows. the markets may deteriorate. maybe that is giving you the leading edge. back to you. >> a warning there from rick.

guys, good to see you. looks like we have this rally and it is holding thus far. >> kind of the way it happened yesterday. it held up most of the day. that real excitement. going gang busters. i'm not trying to talk it down. it is very much like we saw it yesterday. they closed on their lows once again. we may see a fade just into the afternoon. >> who is doing the buying now? >> i mean, it's a lot of different programs. i do think some institutions are out there. they found the stocks were relatively cheap. >> i think there is institutional buying.

they are not being super aggressive. >> this is what the narrative has been. yes there are tons of bargains. there is a lot of opportunity but there is more volatility ahead. >> and more nervousness that people are still unsure what is going on in china. after the action this week, people need a little bit of time to regroup and feel that there's a sense of stability. >> the dollar strengthening and yields are rising. how is that impacking? >> i mean, it's -- it just shows that the economy is still -- >> better here. >> it's better here. on better footing. the market may rally. it may sell off but the economy is still doing well. >> into the close, last few hours of trade as a turning point>> i will be watching to see if it starts to fade.

i think the sellers want to test and see if the buyers are really there. you will look and see when it starts to appear. we had that big first sale on the belt. people knew that ahead of time. let's see. >> and is it still the most bearish on the dough members? >> there will obviously be a problem with a strengthening dollar. that's pretty obvious. to kenny's point one of the things that we saw today, we didn't really see it yesterday. today we faded and rallied back 150 points. buyers are starting to come back in. >> i think that will be the case. >> we will be watching guys. thanks for being with us at this hour.

>> thank you indeed. if you look at the numbers, we have a rally of over 280 points. all remain in correction territory despite today's gain. is this a healthy correction that could take us higher or is this the end of the bull run? the most active stocks on the night. we have three part. remember i mentioned that earlier. it's currently sitting around multiyear lows down over 4% once again. don't go away. you totalled your brand new car.

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volatile sessions in stocks, gold not proving a safe haven closing lower for a third day today with the stronger dollar. really causing a bit of a head wind for metals all around. the major futures are trading for the downside today.

a number of folks may be playing that through the etf, the cold trust. but we are seeing less interest than that. strong volume on monday. less so today. >> thank you very much. and here is your cnbc news update for this hour. he has been identified, arrested and treated for life threatening injuries. he was described as a disgruntled employee. a third victim is in stable condition. and video released, the militia are trying to push isis fighters out of western iraq.

>> a human rights organization says the israeli military demolished 30 million structures israel says the structures left israeli issued buildings permit. it is the latest move by the government to avoid possible economic sanctions over its perceived failure to tackle the trade. that's your cnbc news update at this hour. >> thank you very much. what has been another dizzying session on wall street. over to you. we're not trading on headlines or anything that is move iing ty

we're not doing a lot. i'm trading. i'm watching slow. i'm watching volume and the big guys. that's what we want to do to see the market stabilize. we're doing something different than we did yesterday. today we had the same pattern and it was fading going in. just opened at 1:00 and we have turned around. we did have a morning slow fade. and the breadth is improving. that is reversing the slow fade there. heavy volume. just take a look here. that's what many of them look like. >> up to 3:30 right now.

what's moving. >> like bob said we are seeing a similar pattern. now look at it. up 2.2%. we know that apple dictates a lot when it comes to influence because of its size. look at that up almost 4%, contributing more than 13 points there. we look at the etf, it did go negative around 12:50 p.m. actually stronger here than what we are seeing. mandy, back to you. >> thank you. >> joining us now, the president of portfolio funds and rich white, senior manager at american century investments. michael, because we haven't had anything that resembled a correction for so long, it feels

painful. at the same time we do know it's a normal part of the ebb and flow of markets. will it get less? will we go into a bear market? or is this about it? >> you hit it. since we're in it, i'm not sure we know. so, i mean, on the positive side we have a nice turn around today. we have corporate earnings that are maybe slowing but still growing. so those are not the conditions you see for a longer term bear market. on the other hand, global uncertainty and some uncertainty with respect to the fed. those have to be ironed out. >> was it just a clearing of those uncertainties about the fed and china? is it going to get us to the upside? michael?

>> we have squeezed every last dollar out of earnings and revenue. but the next real robust leg up has to be from revenue top line growth. >> a lot of protection is being brought out there. can you tell us what we should be doing? >> well, sure. in general, they diversified. you never want a knee jerk react in a panic. market dislocations like this create great opportunities. as an insurance technique

against dramatic market d klein. so rather than disrupt our entire asset allegation we will take a position in vix. so we can continue to stay at the longer term course. >> thank you very much for joining us today. you can go to power lunch to see what to do to protect your portfolio in more detail. >> more than half of this is in bear market territory now. is that a good time to buy in or dig deeper? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade.

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as we mentioned, more than half of the sector is now in bear market territory. domonic, tell us more. >> let's take a look at this. the numbers are pretty staggering here. just to put it in perspective. technolo technology, the single biggest sector, it carries a lot of

weight. it's nearly 20% of the waiting in the overall index. so again, 96% of the stocks. almost all of them are in correction territory or they have fallen by at least 10% or more since their 52 week highs. out of the 68 companies, 65 of them are in correction territory. it begs the question, though, what are the three stocks that are not actually in that territory. those stocks have fallen by not 10%, less than 10% since then. so just some of the signs here. technology very important sector. some would argue more important than oil and gas. >> to surveying the damage, do you buy tech at these levels. you say you're buying. you are focused on technology.

name some names. >> i do own the names and if i got a new account today i would be buying the apples, facebooks, there was a great article today that shows a sea of afghan refugees. and that's why it's sells so well. it shows those devices and smart  strip. that's the key here. i think the product, apple, google, netflix, face book, they are essential products. new consumer staples in this environment. for the most part until two or three days ago they had been outperforming. >> not your typical stock hypothesis but i like it. let me ask you about the chip stocks that have been hammered

down 20, 30%. not as sexy as apple google and facebook. >> i would throw, i characterize stocks as credit cycle names or economic cycle names. for the most part. they ebb and flow with the economy. it was different 20, 30 years ago. the addressable markets had not been defined but they had become more economic cyclical. >> you said you like instagram. facebook down 12% over the last week. what do you think this stock is worth? >> facebook i talked at the beginning of the year. when it became public we waited. we bought it. we have held it all the way. we bruined along the way. i thought apple would continue to do well.

face book had a good chance of being talked about in glowing terms. when you think about your smart phone, the properties that facebook has. that's a key product for them. so that is the thing driving it and i think face book continues to do very well. >> all right. making up some of the damage. thank you very much. >> thank you. how will stocks finish the day? at least we know it is a reverse of yesterday. what do you think about how we will finish out the day? head on over and weigh in. we will bring you the result in two minute's time. ♪ every auto insurance policy has a number.

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>> we're already half way through the day. but you the viewer asaid that w will close higher to finish the day. we also asked another question. what's on your buy and what's on your sell list? buy list favorites? apple, facebook, as for what people are selling if they want to it's apple, oil, netflix and the s&p 500 overall. so just a nice indication of where the sentiment is at least among our readers and survey takers, back to you. >> apple was showing a big cross. >> it was. >> the dow was up around 300

points. treasury yields falling after new york fed president made remarks where he raised questions about whether september is the right time to begin raising rates. still ahead, why 2:00 p.m. eastern time is shaping up to be the most important hour of your money. you will not want to miss a minute of it. returns with three signs that could point to the end of the bull run. we are all over this market move. first in business worldwide. you've always wanted. but you better get here fast... yay, daddy's here! here you go, honey. thank you. ...because a good thing like this phew! won't last forever.

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can a business be...alive? hey there. we're gearing you up for the final two hours of the trading day and explaining why this has been turning into the most important time for your day. >> we will look forward to it. the market is rebounding but it has been a wild week of volatility. and mike, you're just putting it out there and not treading

lightly. you say we are entering a bear market regime here? >> yeah. we want to be careful with our language here. we have tools that help us understand what kind of investor behavior we want to see. so that's why we call it a regime. they buy things for growth and don't worry about valuation and quality. we think the next period of time will probably be a period where people pay more attention to quality, to valuation, to the more conservative types of investment. >> do you think we're going to finish out the year lower than where we are now mike? >> anybody who tells you that they know is either dilutional or lying, one of the two. and given this market, it's very hard to say.

it wouldn't surprise me at all if we end up a little higher. if some of the central bankers around the world do some not so smart things, we could easily get this correction out of hand and it could get much worse. >> it is not really a person for wanting to give the market a surprise. the least of people to want to give the market a surprise. okay. so you're not sure where the mark is going to end up. let's dive in a little deeper. looking better than they were a couple of weeks ago? >> most of them offer better value than they did a couple of weeks ago. we like to focus on things that are free cash flow positive where corporate management is

not spending the kitty down but returning that cash to shareholders. we continue to like health care and like some of the bigger more mature names in health care. the other area we like a lot is airlines. certainly not the first or second inning any more. >> yeah. >> i will leave it there. we are ending the show. >> sorry. >> thanks a lot for that. good to see you. we're going the get you set up for the final two hours of trade.

>> everyone is wondering where are the buying opportunities. we want to remind you of analyst upgrades. nike is helping with the stocks today. nike getting a boost in terms of rating. nike, the strong brand, continues to grow. >> but the note is one that continues to pop up. price target is still 585. there's still a ways to go on

upside. but 40 buy ratings on that stock. >> and reaffirming the bullish position like what we saw out of apple. others just coming out saying we are bullish. >> bob is here. it's 2:00 p.m. on wall street. we have seen the markets pick up steam. >> it's certainly better than it was yesterday. you recall yesterday we were standing here we had a very weak uninspiring rally. and then of course as everyone knows, the markets just nose dived. this is very different here. so far things are looking much more positive.

we had a morning slow fade but that has changed. and then it was even about an hour and a half ago. now it is improving 2-1. the volume remaining on the heavy side. we will probably do about twice normal volume. bouncing around a little bit. this is a very narrow range. it's still very elevated in the 30s here. you want to watch big names. you want to watch flows in the big names here. and now a bounce off of that. you can see that in ibm as well. very similar patterns and most of the big names you can see that coming off. a good day on heavy volume and finally pfizer, i'm just showing you representative names.

and it, too is moving to the upside. i will be watching market on close orders. a lot of the heavy market on close orders many feel were partly responsible. >> we will wait and see some of the signals>> i will be watching them. >> i want to bring in larry mcdonald. and from a traders perspective does it feel better than 24 hours ago. you're absolutely right and a lot of it is because of what you and larry were talking about as far as a lot of the margin selling. they got in there around 12:30 and they were slamming. they took the dough down to barely being in positive territory.

now they are chasing many of the people who are short into that. . >> we showed it on the show, if people had listened to this chart and seen this pattern they could have saved a lot of money yesterday. we were talking about this being the january effect happening in october. >> we talked about talked about market credit. a lot of the asian banks have been improving. and investment grade bonding, i think. those credits have been improving. once again, this is a turn around. credit seems to be leaving us potentially higher here. >> so these indicators are lining up.

do you also agree with that from what you are seeing in the market? >> i do. and i think inside that market, to sell into the close thing that bob was addressing yesterday, a lot of that in my opinion is panicked investors. as well as his levered etf. a lot will not let you trade levered etf. >> i think that's a good thing for the average investor. >> those things reset every day now. they can provide unbelievable leverage. >> you are saying that this is having an impact on the swings of the market? bob, i want to get your take on this.

i thought that leveraged assets wouldn't be so high. >> these fighter heads, $2030 billion in itself. the numbers are still pretty small. i like to look into them a little more carefully. i was very intrigued by the chart. my question is that they don't have to go out at 2:00 any more. is it true that everybody gets the calls at 2:00. >> i think you get them in the morning. they typically will give the client four or five hours to come up with the cash. so you're not going send them an

e-mail. we saw this in 2008. we saw this in 2011 and in the late 90s. the same pattern and that's the key. the key for the market reversal is you want to see the pattern reverse. so the key to a sustainable rally out of this is when that pattern starts to reverse. >> bob i think that some people might argue that today's action is much more heartening compared to yesterday. the swings were amazing. take a look at netflix from high to low in the session it was a swing of 7% but still managed to go up. >> all i care about is the pattern is not the same. a weak rally and then a fade. we have moved 200 points in the dough from the lows around 12:30.

that's not what happened yesterday. >> all right. a welcome change of pace. thanks guys. >> all right. another check on the markets. the nasdaq is up 100 points. black rock. they only say never trust your first bounce. can we effectively treat today as the second bounce? >> well, i think we have lost track of the number of bounces. it was a little bit speculative to call the bottom. why has this happened in the first place? a lot of concerns about china and global growth. what is encouraging to me from a longer term perspective is most of the numbers are not signalling another recession. this looks very different than 2008. if the economy remains sound and the fed holds off a bit, there is a better chance this will be

a correction rather than the start of something more serious. we do start to see that slow fade. that does bring some worrying sentiment. we are waking up to china and a negative europe. how worrisome is it to you when we start to see the fade overall? >> it is a concern. this is a function of marking closed orders facing redumpgss. what i heard from most of them is that their clients want to

buy it. for many it that have not participated they are looking to buy. >> when the numbers come out next week do you think we will see inflows into equity funds? >> those numbers are typically cut on wednesday. those at the beginning might be different from the end of the week. i would watch the credit markets. let's remember, probably the best leading indicator that we were at risk, that volatility was too low was that persistent widening of credit spreads. that's one of the factors that i watch in addition to the close. >> i am just wondering, you said if the economy remains strong

does that put the recovery in jeopardy? >> i don't think it puts the economy recovery in jeopardy. >> does it slow it? if the feds raise too early? >> i don't believe that a quarter point higher in the context of the best labor market we have seen in 15 years will derail the recovery. there is a given reaction from investors. market reaction is typically more violent when the fed is hiking and inflation expectations are falling, which means that real rates arrive faster. >> it will be an interesting post jackson hole trade. thank you. >> thank you. stocks pushing higher right now. take a look at the s&p 500.

could this bounce back be just a head fake? here are three signs that could point to the end of the bull run. >> all day long we have been talking to a lot of money managers on wall street and generally speaking they have been positive, right? they think this is maybe a little bit of a correction and a longer term market run. here are some of the things i asked them. let's talk about one of the reasons or things you might see that might give you a moment of pause to say maybe this could be the start of a larger downturn. from the traders' perspective, on the floor of the new york stock exchange. we haven't seen a huge rush in precious metals. that might start to give me more worry that people may be panicking a bit. that's maybe one sign. another one is earning.

he says it's only going to get worse because of things like oil prices in china. he manages over a billion dollars in assets and he said the continued slide in commodities, oil is a topper, all of the steel prices, iron our, it's an indicator of global economic weakness. >> the other side of the trade. thank you. still ahead it was the best of times it was the worst of times. we've got a tale of two energy companies straight ahead. we are keeping an eye on oil prices with crude holding.

welcome back to power lunch. let's get you caught up on some headlines you might have missed.

dish shares down about a quarter of 1%. has restarted operations after being shut down for about a week. you can see amazon trading 5%. >> i think that was a genius move. transocean shares are lower. the oil rig operator has lost two-thirds of its value. lower after the company agreed to buy cameron international. cameron, though, is popping on

the news. should we expect more deals in the space? what are the themes we should be looking for? >> sure. i think especially in the easy space. i do this if you're a possible board member you have got take a peek at what the financials look like. right now the futures market tells you we're not seeing $50 crude until august 2016. the next wave is the reality.

and we will take it right now. >> some of the potential buyers out there could they simply be waiting on the sidelines? you can make the case that the prices will be lower. >> you can sit and wait and play that game. i do think that at $40 we're nearing the point where it can't get too much lower. you would see a bunch of stripper wells. if that's the case that resets the supply and demand dynamics worldwide.

i don't know if you could go lower from here. >> all right. i know whiting has been talked about for years now. >> yeah. that's the highest quality ba n basin. at the end of the day, you know, in a kmedty industry the low cost producer, high return producer wins. people would die for the assets. it could be, a huge upside from here. >> thank you.

>> up next, four big upgrades and one big downgrade. we're headed live to the oil pit when power lunch returns.

uh, looks like it'll be counting cows for awhile. so maybe the same things aren't quite the same. ge software. get connected. get insights. get optimized.

we are up to date on the major averages. the dow actually remains in a correction. if you think this might be a big buying opportunity, you should probably wait and hear what our eric has to say about that. >> we actually looked at the average performance every single day going back over 35 years. if you look here on the wall you can see the performance. right here, right around late

august is where you see peaking on late fall. it doesn't come back for two entire months. not until november one do we retrace back into positive territory. >> and also the relatively low exposure. a swath of regional banks. >> oh yes. google leading the tech sector today on a goldman conviction.

they are saying more clarity on financial disclosure. h heather thinks they will start to see the fruit. she also said the reason we maybe a little bit of a catch up. another strong day after earnings report. improving because of the number of companies which are leaving to market share growth.

>> it took the russel 2000 negative with it. mounting pressure with start up. will eventually have to roll some of the companies up but it won't happen until the next year. >> drexel hamilton upgrading to a buy. now the contract improves the balance sheet which could allow them to engage in a more sustained and meaningful buy back company. that does it for today. 38-71. stick around. we will take you live when power lunch returns.

here is your cnbc news update in this hour. a virginia official says the suspect of the fatal shooting is

dead. he died of a self-inflicted gunshot wound. he went by the name brice williams on the air before he was fired by that station. james holmes was sentenced to life in prison without parole. they did give the victims a chance to tell the judge how the mass killings have affected them over the last three years. 20 aircraft, 500 marines took part in the exercise. burger king is calling for a truce with mcdonald's in this full page ad across the country including this one in the "new york times".

>> exactly. it ends there. >> that's it. >> sue, thank you. let's get to the oil close. >> clearly the special sauce. come on. everybody knows that. we're watching oil here closing at the low of the session. we had a fairly bullish looking inventory report with 5.5 million barrel draw down according to the government, a lot of that was because of the fact that we had lower imports. we are still producing 700,000 barrels a day more than last year. we did see an increase when it

came to the products. expecting to see an increase of about 62 billion cubic feet. >> even though oil didn't break above $40 a barrel? >> energy stocks they are holding up all right. the whoever all market is doing pretty well. right now let's take a look. we're not at the high. and very heavy volumes, stocks that are on the upsite. they are aggressively buying some of the winners today. 2-1 advancing the decline. >> although we had a trader that

ran by today and said buy today so you can trade tomorrow. >> we are getting cynical here. >> all right bob thanks. >> what a fun couple of hours. we have seen the trend go reversib reversible. now higher. >> we're having some audio issues with courtney but the tech sector is leading today. would you stick with tech stocks right now? we are seeing a nice turn around

here. the opposite of what we saw in today's session. >> maybe tim cook's e-mail helped. lightest sort of operating margins of anybody else out there. so they're going to bounce harder once they come back. >> what are you seeing in the charts? >> certainly we're seeing a response right now. i have bad news for you. it's not that much. we're still very much in consolidation that has lasted most of the week. we bring along the chart that we showed. a clean 50% puts us on 3,000 on the nasdaq.

>> a 50% pull back. it's very common and to be expected. >> the russel can barely scrape off of the floor. that's not good news. i think we do eventually push louer. >> interesting points, guys. call of the attention has been on stocks but we cannot forget about bonds. that's coming up. first a look at bigger movers on the nasdaq today. >> now the latest from trading nation and a word from our

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>> let me get a check on the ten year. of course, that has been very volatile throughout this week with the gyrations of stocks. let's bring in five star fixed income manager. has nearly $200 billion in assets. welcome to power lunch. >> thank you. >> so the big catalyst, the feds speaking in new york. he said september was less compelling for the fed to raise rates. what did you make of this statement? >> i think we saw today a bill dudly who maybe doesn't know how to interpret data any more than most of the markets. he is clearly backing away. he did point to a couple important things. one of them is that they are

still concerned about the strength of the dollar. we have seen it weaken and it continues to remain strong. clearly to them signalling that there will be continued low inflation going forward. i think that doesn't give them much of a policy window to begin to raise rates in september. >> you still have a relatively strong dollar and oil putting deflationnary pressure on the market but then you have the number and the revision we saw this morning which many were calling a light's out number. let's say we get a strong rise on jobs friday. what position does that put the fed in? >> i think it depends on how they feel the international situation is going to develop. they could raise rates if we did continue to get strong domestic

data. they have indicated that all along. given that they have been speaking very dovishly, i don't think they will want to surprise the markets in september by changing course and the markets are only factoring in a 20% chance of a rate hike in september so it would be a surprise. >> as we try to think about the future direction of the u.s. stock market here, history hasn't been a great guy becauses there are so many factors in today's market that we haven't seen involved in the market before. so then we look to the bond marks. people are talking about junk spreads and tightening a little bit. how should we be reading what the bond market is telling us about the direction of stocks? >> i think this was a great period. if you look at what happened and where the volatility arrived it gives you insight into what's going to happen when you finally

do get an averaging event. this is the first time we will probably be deleveraging in the developed world with central banks with very limited policy flexibility. it's an interesting time ahead for us. >> i was going to say what would you consider to be a leveraging event? >> i think what we're looking at is a deleveraging event. that is when basically the risk preferences in the market change. the federal reserve and other central banks have pushed everyone on to the risk taking side of the room.

the commodity markets are telling us strongly that there's going to be a global growth slow down. that doesn't mean that the u.s. can't muscle its way through but it's going to be very challenging for the markets in general. >> we appreciate your time this morning. melissa? >> all right. the dow right now is down more than 1500 points in just the last week. is this a real bounce back or a blip in a bear market? we will get the bullish line next. is china a good place to invest right now? we have got a bull bear debate when power lunch continues. care of my heart.

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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 ringing] 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. good news. climbing towards the intraday session high. a gain of 426 points. 2.7%. it will be an interesting final hour plus a few minutes. >> it's usually about 3:00 p.m. when some of the sell orders start coming in. we could get an indication of how the market will turn very momentarily. mean chil, look at some of the

down stocks leading this rally. apple, home depot and merk. apple the only name in the dow that is actually positive on the week. is the bounce back for real or is it just a bear market rally. what do we mean by that? earlier we laid out the bear case and now he is looking at the other side. >> this move might be at least giving some fuel for that rally or the bears to kind of feel a little bit maybe less bullish if you will about the whole situation. let's talk about whether or not the bulls really feel as though this rally could continue. here are three things to watch. first of all the dollar. if it stays strong some analysts think it might be good for the economy. gina likens what's happening now to what happened in the mid to late 1990s. if that happens we could see

this rally continue. that's the more bullish side of things. jim says commodity prices that are low typically don't happen ahead of a recession. that happened earlier so when dividend yields and stocks pay more you than bonds and incomes, that doesn't happen very often. bearish cases earlier. bullish cases now. you have got figure out is that the case that you want to make?

>> low commodity prices were also in the three indications for bearish sign for stocks so it's got to be like >> when our u.s. economy is 70% driven, maybe the commodity prices end up helping in the long run. >> in the wake of trying to selloff, should investors be bullish on china. if the answer is no, where should investors look? we've got a china bull, the global interest rates or strategy. great to have you with us. you're a china bear. what we've seen in the stock market, with the currencies. >> i don't think it's going to have a major blow-up situation, it's not a country risk situation.

it's not a bounce of payments crisis situation. it's a slow growth situation. it's a situation where the government over manipulates the market. bad demographic story. and we're really not getting much in the way of reform either. those are my four reasons to be cynical about china. >> well, i think the fighting is not where i want to be right now when i'm positioning on a risk/reward basis. i believe that the pvoc is just getting really started in what it's going to do as far as attacking the slowdown in aggregate demand primarily an issue, we've only gotten the first innings of the implementation of their policies. >> if you don't want to bet

against the people's bank of china and talking about positioning. are you talking about positioning within china equities and hong kong shares? how are you positioning? >> that's a critical distinction to make. we are not participating in the local onshore market. that is more of a casino kind of a bull in a china shop so to speak. we are seeing the opportunities and a longer term risk/reward perspective from the hong kong shares. >> where do you go? in the area of the world? >> i'd prefer the economies in which. >> when all said and done. policy making is transparent in korea for the most part. it's a transparent situation. there's democratic accountability in these countries. policy makers do things, they

tend to communicate effectively what they're trying to do. >> and you like india? >> i do like india. india, i think, bears a lot of promise going forward. i mean, we saw flash of it. before that, in september of the previous year. so we think that it's a slow grind. i mean, we're not going to see this happen overnight. but the reform momentum is there. the public policy support is there and most importantly, confidence in the central bank is there. >> all right. thanks a lot. appreciate it. >> thank you. >> over to you. >> all right. thanks so much, melissa. another big rally in the market. the best rally we've seen all year. but we were saying the same thing yesterday until the final hour of trade. we'll tee you up for the stock market close up next on "power lunch." this summer, challenge your preconceptions and experience a cadillac for yourself.

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for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. stock market rally picking up steam as we head into the final hour of trade. the dow is up close to 400 points, 383 right now. the s&p is near session highs, up 2.5%. let's bring in peter costa of empire executions. kenny of o'neil securities. welcome. on any other day where we were talking about the dow being up 122 as the trough of the day, that would be a good day. >> yes. >> why are we so concerned about this pattern today? >> well, we've seen the pattern from yesterday. and yesterday, i think, was -- was very eye opening at the close.

when we were up 385, i think we were up 415 at one point and ended up going down 200 and some odd points, it was a quick turn around. and i think people have that in the back of their minds. >> we saw steam picking up, kenny, from 130 until now. what changed? >> i've got to tell you. i'm encouraged to see the market up another 100 points. at 130, it was in that area where it felt like it could have gone either way. i like the fact that the market's kind of rallying into the bell. that would be a great sign tonight. and as we start to hear, you know, 315, we're going to start to what imbalances look like. it'll be interesting if we fall into that same pattern like yesterday. i think at the moment, it's small. that could change. it's very early and that could change. if the market holds in here, i think it's great. i think it's actually a good statement for the u.s. market. >> yes, absolutely. >> we are seeing heavier than normal volume. about 763 million shares. do you see a momentum going into the close? >> if kenny said, if we have a

positive and continuing on the positive track with larger volume, that's a very, very good sign. that's actually, you know, you know, technically, that's what you want to see, you want to see that big volume. >> that's going to be much more important than seeing trading volume. some of these stocks do20%, 30% 40%. there's huge value. >> yep. >> with our gain of 47 points on the s&p 500, guys, is it within the r realm of possibility it could derail these gains? it would seem unlikely, right? >> it would seem unlikely unless all of a sudden like yesterday, it grows to be very big. listen, on a normal day, you know, x all this stuff, it's typically 400 million, or 300 million a sale. that doesn't affect anything. but the last couple of days,

there's been 1.2, 3.5, 2.8. and therefore, the market is anxious already. and so that just causes some anxiety and people to be anxious. i don't suspect it doesn't feel like it's building that way. i would be surprised if we saw it today like yesterday. >> i'll agree. >> the rate hike readjust given what we've seen this week. do people still think there's more room to run? >> i think jpmorgan, one of the analysts from jpmorgan reduces his target where they originally thought the s&p would be up 8%. i think brought it up to around 6%. i think you're going to start seeing that, though. i think the expectations were a little bit much going into the beginning of this year. and, you know -- >> listen, i've got to be honest, i think the expectations were really like around an 8%. 10%, which is a return to normal, right? i've got to tell you, unless we don't see the market regroup in september and october, then i think you'll start to see estimates come down.

but if we start making consistent head way and the china situation calms down and the fed rate hike is off -- >> we've got to get through today first. melissa? >> all right. i'll see you guys at 5:00 on "fast money." meantime, thank you, kayla. "closing bell" is up next. welcome to the "closing bell," everybody, i'm kelly evans a the the new york stock exchange. >> and i'm simon hobbs in for bill griffith. >> right now, a rally on wall street. they're all up more than 2%. that was also the story yesterday at this very time before a major reversal. the biggest, in fact, since october 2008. remember, that sent the dow down more than 200 points at the close. we will see whether the rally can hold through this hour. it's an important hour. meantime, a $13 billion deal in the energy sector. as oil prices fall, we'll discuss he