janet yellen says recovery will be painfully weak. what are your thoughts? my thoughts are along those same lines. recovery is certainly going to be quite low and coming and the consumer is still hiding. they're not spending. they're saving. some of that long-term is great, but in the short-term, that's looking to propel us. i think what's looking to propel us is inventory. i think scott opted to do some starts. you can see the lending hasn't picked up anywhere around the global yesterday. there's no doubt it's going to be a slow recovery, but i believe there is a recovery. >> it's interesting to use the word propel because it sounds like we're going to grind maybe a little higher. does that justify the moves we're seeing in the market? >> well, you know, the market certainly when you look start looking at forward earnings here, again, you know, anticipate ago slow, gradual recovery, the s&p is not that expensive. it's probably about 13 times forward earnings. earnings have quite a substantial amount. i think the regulators globally have done a pretty good j

san francisco fed president janet yellen is in idaho to talk about the economy. that's at 12:30 p.m. new york time. in terms of earnings, viacom leads the companies reporting before the opening bell. we'll also hear from luxury retailer coach, advertising giant interpublic and u.s. steel. dream works animation will be reporting after the close. ge capital is holding an investor day which starts at 8:30 a.m. new york time. topic of discussion may be president obama's financial reform plans which could require firms to boost capital levels. ge, of course a personal company of cnbc. reforms could force ge capital to put more money aside and lend less. some analysts have argued it could prompt general electric to spin off that business. that's your global stock watch. >>> coming up on "worldwide exchange" -- asian markets take a breather after u.s. equities eke out a two-week rally. will today's rallies help maintain the upmovement? >> charles plosser says the banks may have to raise rates in the not too distant future? what sort of timing is that? íí >>> china que

janet yellens said ben bernanke said they made the economy less important driven. they will blame it for the run up and are premature and said they are inaccurate. the inspector general said they didn't breech his duty to investigate alleged fraud. they comes from a report obtained by cnbc. i'm julia boorsten. >> i'm erin burnett. here's what wall street is looking at. what they want to hear from barney frank, talking about the newest compensation bill in congress. the first amendment protects their right to pedal drugs on television and magazines. they get a deduction too on their taxes. is this right or not? things that make you go hmmm. the man at the fund of funs that lost the most with bernie madoff bought a $30 million yacht. that's our show that begins now. >>> few key headlines today. we had better than expected and nothing to celebrate, but confidence is up and nothing to be excited about whatsoever. we had a treasury option. what is the most important headline and will stocks struggle into the close? down for the dow and s&p we will see if it will be a do

fed janet yellens said the economy is recovering, but will likely be painful and slow. >>> it's like christmas every day this week. waiting for this note auction result. welcome to the second hour of "power lunch". we had rather disappointing reports on consumer confidence on the market. that seems to be weighing on stocks right now. now wall street is turning attention to this huge $42 billion two-year note auction the results of which will be out in moments here. >> viacom's profits fall more than 30% in the second quarter, but believe it or not, that's not the only problem. we will fill you in. >> wall street feeling the heat from washington and main street due to huge pay packages. should companies focus more on real tangible products rather than financial products? >> we will talk about that and other things with the power player. jeff is with us and chief market strategist. how have you been? >> great to be here. >> the stock market and the rally we had in a couple of weeks. too far, too fast? >> the ease is what we have been here. earnings results are better than expected give