issue number two, talking stimulus. talking cuts. talking taxes. in washington, are the political leaders really hearing the cries of american business as we linger on the precipice of that fiscal cliff? and do you feel like the fish at the -- look at that. at the end of that rod sometimes. the lohman or woman on the economic food chain. today, tips on how to swim clear of the sharks and how to keep off man's hook. sue is out. simon's in at the new york stock exchange. >> a catch. we start off with that fish and avoiding the sharks here on wall street. getting to kenny in a minute. first bob on what's now a sixth poor day for the bulls here. >> the problem is very simple. earnings. when's going on in china. we have the big international names to the downside. the energy stocks, take a look. financials and material stocks taking a hit. remember, this week, concerns of cartier, about the slowdown in china. today, marriott talked about things slower in the high end luxury market in asia. the big hotels are moving to the downside. finally, simon, gold and silver down again today. all of them, of course, on concerns that inflation is as much of an issue and brings it to the downside and finally there's the tlt. the big etf of bonds. keeps hitting new historic highs as yields drop to absurdly low levels. >> fascinating. getting to kenny in a minute. we have a big treasury auction. let's get to rick santelli at the cme. rick? >> here we are once again live tv so much fun. we have 13 billion reopened third near bonds. they're 29 year 10 month bonds. two months ago we started this auction process with this. the yield, 2.58. where was the wi? 2.59 bid offered at 2.578. so you can see we're in the middle there. it was a much wider tight market. a little sloppier today. the 10 auction average on bid to cover is 2.69. this one of 270 where it needs to be. indirects 32% on a 10 auction average. better at 36.8. i don't have directs right now but that's okay. by looking at the auction, we are going to give it a b-minus. it is not anywhere in the same neighborhood as yesterday's 10-year but, of course, we see that there is demand and the only way to demonstrate that for you in a very easy fashion is france has its shares of problems, more than its share. the two-year note about half the yield of the 26 basis points. enough said about safe harbor. back to you. >> yeah. says a lot. thank you very much there, rick santelli, in chicago. before bringing in kenny, i want you to listen to what warren buffett said on "squawk box" this morning. >> general economy in the united states has been more or less flat and so the growth is tempered down but the residential housing we are seeing a pickup. it's noticeable. it's from a very low base and doesn't amount to a whole lot yet but it's getting better. >> and that is a bit of a turnaround for warren buffett to be moderately more optimistic of housing of which he's heavily invested. kenny, do you agree with that? >> i don't see it around here. housing is regional. depending on where you live you get a different flavor. in the northeast it doesn't feel like that to me. it feels like pressure on housing. prices haven't come in line to where they should be. >> where do you think the market goes from here? >> i think weaker. right? we bounced off 1322, 25-ish. we found some support and i think the market's going to test a 200-day again based as we move through earnings season and see the story continuing. >> higher or lower by the end of the year? >> a qe3 program, higher by the end of the year. i don't think we should. i think the fed needs to back away but i think the market's going to churn. i don't think we'll end up much higher by any stretch. in the mid-1300s is where we end up. >> thank you. >> thank you very much. merrill lynch's head of multiasset research saying today that gold could jump to $2,000 an ounce. if that won't make you blanch, whereon what will. he says it could happen if there's as kenny polcari mentioned a new round of stimulus of the fed and says the fed will move forward with a $500 billion program before the year ends. hence his call. $2,000 an ounce. look at gold right now. can we? there it is. 1,563. down $12 today. year to date basically flat. how do you play the gold stocks and the gold etfs? ed ponsi, what do you say? >> ty, it is not a question of if or when. it's a question of how much. the one thing that concerns me about the call here from merr l merrill, they're expecting $500 million. if you look at comments recently of bernanke, he has used the words diminishing returns to describe quantitative easing. there's no technical reason to buy gold. the chart looks awful. a big triangle on gold and slv, as well. i'm mildly bullish. not quite as bullish as merrill because i understand and i think bernanke understands there's diminishing returns on quantitative easing. >> a move of today is a 33% gain in gold. that's an aggressive call. >> i'm bullish. not that bullish. you might get 1700 or 1800. i think 2,000 is asking a lot. >> back with you in a little bit. the finance.yahoo.com poll. do you expect some sort of stimulus before the november election? back to you, simon. yahoo! holding the annual shareholders meeting is facing the fact there appears to have been a hack attack on the organization. yahoo! says hackers were only able to steal old data and 400,000 passwords. only 200,000 of which were valid accounts and not as bad as previous reports. shares of yahoo! today are slightly lower on a stock that's essentially gone nowhere over the past year. slightly lower over the last year and meeting with shareholders following yesterday's board meeting and everybody wants to know who will be the new permanent ceo at yahoo!? julia boorstin is live in california with the latest on that. >> reporter: that's right, simon. when the meeting wrapped up about an hour ago, we spoke to a number of shareholders leaving and many said they were disappointed that yahoo! didn't name a permanent ceo to take that permanent role. now, there's talk now that they may not announce anyone permanent in that role for a few weeks but as expected in the meeting that just wrapped up, all 11 directors re-elected. front-runner of the ceo job is ross levinsohn. focusing on con at the present time, talking about the deals he made with abc and cnbc just a reminder that cnbc and yahoo! have a business alliance to share in editorial content. the other two main focuses on technology and unlocking the value of yahoo!'s investment in ali babi. they asked about competition and about original content. he said that after a slew of management changes at the company that yahoo! is on the right path and already seeing results. he also said he's optimistic about yahoo!'s growth potential in emerging markets. an investor we spoke to said after so many failures maybe the board is smart to take its time and give levinsohn time to prove himself. they don't want another failed ceo after five ceos in five years. back over to you. >> okay. thank you very much, julia. as julia mentioned, so correctly in that correct, cnbc.com has a content sharing agreement with yahoo!. what a deal, ty. over to you. >> thank you. big deal for boeing. that company right now, they're down 7 cents. a big 7 cents at 71.59. actually, higher, excuse me. higher by 7 cents. at 71.59. year to date down about 2.5%. phil lebeau live in chicago. phil? >> reporter: the order announced today is about united upgrading the narrow body fleet and a major upgrade. ordering 150 planes of boeing. new 737 max. 50 of the current generation and totals $14.7 billion with deliveries starting next year. here's the ceo this morning. >> taken us almost a year 0 get to this point to get the best airplanes with the best engines, the best price. >> reporter: and the airplanes he is talking about, new 737 max. that backlog at 649 models own order. the delivery starting in 2017. expected to be 15% to 17% more fuel efficient than the current 737s and shares of boeing and eds, there's a real split over the last several months with eads outperforming boeing and the order is one that boeing needed in the battle against airbusads. >> thank you very much. let's go to brian shactman now. >> you want a pop, tyler? take a look at apc, anadarko petroleum. they're locked in a battle. the court adjourned and reports out of reuters they might settle it through mediation which could be a net positive for anadarko. the pop there, up 2.5%. back to you. >> thank you. key numbers out today on the state of foreclosures in the usa and diana olick is live for us in washington. diana? >> reporter: well, that's right, tyler. the numbers are growing again after over a yearlong lull. new foreclosures up 9% according to realty track. the first jump in quarterly started since 2009 before that whole ro bo signing paperwork scandal. now that the bank settlement is in place, they're churning through the loans quickly. 31 states with annual increases in new foreclosures. 18% jump in california. catapulted the state to the top foreclosure rate, the first time since the crash. new wave may turn around some of the home price gains seen of late. rising prices on a negative equity position to 11.4 million to 12.1 million. the homeowners still can't move and more important is they can't refi and take advantage of today's record low rates. a new record low on freddie mac, 3.56 on the 30-year fixed and probably will get better than that. more on the blog, of course. simon? >> thank you very much. let's go to where it's worse. san bernardino, california, bankrupt. it's third american city to file for protection in just two weeks. jay wells is live there for us now. jane? >> reporter: what diana said, foreclosures is a huge problem and why san bernardino is in the situation it is. moody's wants to adjust the numbers for u.s. public sector pension unfunded liabilities to $2.2 trillion. that's nearly triple what it was two years ago. this also today the city of oakland pricing a $211 million bond to cover pension obligations, borrowing money to pay retirees. here in san bernardino, not clear what will happen with pensions since the city says it has $150,000 cash in the bank. who else is declaring a fiscal emergency? the city of north love love, nevada, had to it said after it couldn't get union concessions and the city manager claims that north las vegas is still making bond payments, meeting payroll and pension obligations. he thinks the city can avoid bankruptcy and not sure about the neighbors around the west. >> we believe that, you know, what has maybe been the tip of the iceberg is going to start to unfold here in the next few years. >> i wouldn't be surprised if there were more in california or around the country. i don't think it has implications for, you know, another filing every week. i don't think that's going to happen. >> reporter: all right. the market's reaction, a good week for muni bonds. more than $7 billion of them hitting the market and turn arounds. vote earls in san jose have voted to cut the benefits for not just future retirees but current retirees and even montibello on the brink of insolvency last year and apparently got a surplus projected for this year so perhaps the wave of bankruptcy is bringing all sides to the table like never before to work out the concessions. back to you. >> jane, thank you very much. the fiscal cliff is coming and is washington ready? aware? paying attention? here's liberty media chairman john malone out in sun valley. >> i was just listening to the panel on cnbc and, you know, bowles said he thinks we're going over the cliff, ie, to the end of the year without any comprehensive deal. that's veryad for the economy because people like me get very conservative, right? i mean, we go to cash. that's why you see the 10-year under 1.5% this morning. there's just so much money running for safety because there's so much indecision about where the future's going. >> one of the smartest guys in american business right there, john malone. wall street clearly worried and the heartland business people like malone worried so is washington paying attention? senior congressional reporter of politico. do they get? are they listening? >> they're listening. they say they're getting it but there's not a whole lot of action going on. i mean, look, i talked to senators and congressmen today and people saying, look, there's probably no real chance of anything happening before november. the politics are so intense right now and the decisions that will have to be made are very politically difficult. democrats are going to have to cut a deal on entitlements. dealing with medicare, the growth of medicare, something they don't want do give up as an issue. republicans deal with taxes, potential tax increases and revenue. that issue they don't want to give up. very difficult decisions that both sides have to be made and it's very unlikely that anything at all can happen before november. >> the political stakes are so high, the issues so delicious, frankly, for both sides it seems unlikely that anything is done until after the election. let's say there is an election and there really is a result there. you have a lame duck session that comes online after that. where basically the current congress and administration in place and then after the first of the year, a differently con sit waited congress and maybe a different person in the white house. when do you think the ultimate solution takes place? >> that's a great question. remember, mitt romney has said that, look, if i am elected president, i don't want to see an outgoing president cut deals of this magnitude in a lame duck session. and he would ask the congress to pu punt the issues until the next year and very possible to reach the end of the year, we can reach november and december and they could decide, look, we need to wait until next year to deal with it. at that point, even an all republican congress and a republican white house, it's not going to be much easier because they have to cut a deal in congress which is narrowly divided, they need democratic support and back to sort of where we were. you know, right now it's hard to see how that plays out but remember, i mean, the economic conditions can get incredibly worse. and if something even worse happens in europe, it could force congress to take action and we saw that happen with t.a.r.p. right before the election in 2008. maybe that's what will take for it to happen this time around, as well. >> thank you very much. we'll have you back soon. let's move now again to brian shactman. >> auto zone reiterated a buy at citi and channel checks said business is picking up and like it for the market share. what's interesting about this it could be a negative harbinger of auto sales. maybe people are fixing the cars. i can't speak to it but the stock is up 4.5%. back to you. >> brian, thank you. next, financing terror. those are the accusations one major bank could be in big trouble. plus, getting the bottom of a major fraud case out in iowa. before the break, though, five big names moving in the market right now. american express down. jpmorgan, exxonmobil, microsoft and ibm all lower fractionally today. laces? 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[ male announcer ] the united mileageplus explorer card. get it and you're in. i don't have to use gas. i am probably going to the gas station about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪ cnbc's investigations, inc. on the path of a possible scandal. accusations of the company misstated more than $200 million in accounts. scott cohn is live for us in cedar falls, iowa. scott? >> reporter: simon, this is perhaps the next predictable step in all of this. u.s. senator chuck grassley, home state senator of iowa, is calling now on the senate agricultural committee to investigate the futures regulatory system and how companies like pfg can go belly up taking so much in customer money with them. grassley is no stranger to pfg. he knows the founder and chairman. they live in the general area here. they have appeared at events together so this is an interesting twist in all of this. this is the scene at the home a few miles from here as the family comes to grips with the fact that the 40-year futures industry veteran, his business gone belly up, gone bankrupt. attempted suicide earlier this week and multiple reports not confirmed not only recovered and up and around and alert and presumably can shed some light on the bizarre circumstances. he was a big man in this community, for sure. philanthropist. donated to charities. owned a group of restaurants and, of course, this firm which was an important employer and important economic engine here and gone bankrupt, the sequence of events is bizarre. june 5th, announced a big wedding to his fiancee and then june 30th they went to las vegas and eloped according to official records. got married then on june 30th and three days later, russell sr. handed over power of attorney to his son. something clearly changed between june 5th and that time. the son then sends an e-mail to employees suggesting that everything will be fine. the e-mail confidential says a temporary salary cut planned for this month would not have to be done and pfg best would break even. and then the following monday, jewelth, the father attempted suicide and then pfg filed for bankruptcy. the impact of this is huge. nationwide, at least, 300 employees, 15 branch offices and 8 states and as we said the shortfall of funds exceeding some $200 million and now a lot of questions about the regulators, the cftc and the self regulatory firm, none of which responded to our request for a family neither the family or pfg. back to you. >> so many questions. for the moment, thank you. let's mark where we are on the market. we are rapidly cutting the losses here. back up to the flat line. earlier on the dow and the s&p down. you can see that we have managed to cut those. if we turn positive, it will be the first time, the first time we have done it in six sessions. next on the program, analyze this. on our list today, merck, archer daniels and disney. we're analyzing the analysts after the break. and it should be noted, of course, the markets are making a comeback. more on that later in the program. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. what happens when classroom teachers get the training... ...and support they need? schools flourish and students blossom. that's why programs like... ...the mickelson exxonmobil teachers academy... ...and astronaut sally ride's science academy are helping our educators improve student success in math and science. let's shoot for the stars. let's invest in our teachers and inspire our students. let's solve this. the the industrials clawing their way back almost to the flat line. now time to analyze this. ed ponsi with all week breaking down the calls of the day. we rejoin. citi upgrading merck. increased the price target from 34 or 36. we assume merck's new troika of new oral primary care products expands its multiple. you buy this call? >> you got to like this call. they had a great result on some test runs for a new osteo drug and a blockbuster and they have other great drugs in the pipeline. i do like this call. >> very nice three-year run for the stock. morgans stanley thumbs down on adm noted real risk that the u.s. crop gets worse than consensus expects. the stock hit over two months. do you buy the downgrade? >> no. i disagree this time, tyler. there's no question there's a huge problem with the weather and the corn crop but look at the stock. down 18.5% over the past 2 months. and it's trading at tangible book value and priced for bad disaster crop so i would say i just -- >> call would have been better two months ago? >> exactly. >> thank you. wells fargo upgraded walt disney fellow california company to outperform from market perform admitting the previous fears appear unwarranted like a scare house at a theme park. adding, quote, we view a pullback as a great entry point given our increased confidence in the long-term story. year to date the stock up over 25%. people liking disney. >> i got to agree. i would wait for the pullback. having a great run. looking at the breakdown, hitting on all sill enders. the different segments doing well. parks, movies, great things going on here. they trade at a slightly higher multiple than the peers but they have earned it. >> thanks very much. let's go down to simon. >> thank you, ty. down here at the new york stock exchange, we have rallied back 100 points with now 2 1/2 hours to trade, bob. >> and really read by the staples and walmart, home depot. merck, procter and gamble doing really well here and here's the move to the dow. down about 3 points a few moments ago. thinking of going to europe? i just got back. a great time to go getting a lot for the money. euro's at a two-year low. when i went at the end of june, didly. it's $1.26. leaves yesterday, $1.22. below $1.22. that's a huge move. almost five cents in two weeks in currency land. that's an enormous move here. gold and silver just had a horrible five or six days and concerns about inflation quietly go away. brazil said inflation is not a worry. this is an inflation worrying country of the world. if they say it's not a problem, nobody else thinks it's a problem either. >> pick up the gold theme. the metal markets are closing. let's go to sharon epperson. sharon? >> rather quiet trading session here in the gold market, simon, looking at prices slightly lower today and, yes, we have seen lower prices over the last three days or so, but gold was able to pare the losses here and seeing a push and pull and traders talking about it. pointing out that you have the cheap money versus the low growth and while there's maybe more policies by some central banks there's also the low growth environment which causes some traders to share away from commodities in general including gold and looking at the range bound nature of gold for two months and caused banks like barclays to come out and revise their forecast lower for gold prices going forward for 2012. they're also out talking about base metals, lower the forecast for that, as well. back to you. >> i'll pick it up. let's talk about the market in general. that rally back, broad rally back with the exception of technology which was hit hard at the open. live to the nasdaq now for more from seema mody. >> that's right. you know, tech stocks not the best. breaking the 200-day moving average this moshing. one of the biggest lose earls is infosys. less tech spending of major clients and currency fluctuations are the head winds and we have cognizant down 2.9%. switch to the casino stocks and nevada gaming control board said that las vegas strip revenues down 18% in may and rein response wynn resorts lower by 3% and las vegas downs down about 4%. back over to you. >> all right. thank you very much. one of the world's biggest banks may be forced to apologize and pay a large fine in the u.s. for not doing enough to make sure it's not financing terrorism and the drug trade. eamon javers has the story live in washington. >> reporter: it's hsbc and a massive multi-part settlement coming. we don't know when it's coming with the united states government and the department of justice but things are clearly in process. also, what we have got coming up next week is a hearing up on capitol hill. the senate investigations committee is convening a hearing on tuesday. hsbc executives will testify at the hearing about questions surrounding money laundering at the bank over a period of some years. now, we don't know all the details of what's valved in the allegations but i can tell you some new information about what we know is an element of this. one of the things that investigators are going to be looking at here is hsbc's acquisition of a mexican bank in the early part of 2000s and whether or not that bank engaged in a business of buying and selling physical cash, bank notes in mexico, had low compliance standards and did not do enough to prevent mexican drug cartels from taking advantage of that business at what became ultimately hsbc in mexico. also involved here is a question of americans hiding assets overseas. similar to what we saw at ubs and there's a question about whether or not hsbc was involved in helping americans hide assets from the u.s. government in order to lower their taxes. a massive and sprawling investigation here and negotiation behind the scenes. we'll find out more about it on tuesday and whenever the justice department decides to make its move with the settlement with hsbc, tyler. >> thank you very much. a lot more ahead here on cnbc. and on power lunch. the bulls were having a big day. what about this whale? the sharks are buying today. look at -- oh man. next up, playing a risky market and doing correction protection before it's too late. before the break, though, five big winners on this day. led by fastenal. up $2.68. better than 6%. ♪ ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfecti at u.s. trust, our expertise extends well beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their own legacies. welcome back to power lunch. i'm phil lebeau. watching shares of general motors. down 36% in the last year and you shou under pressure again as the company announced a shake-up. the vice president moving in to day-to-day operational control over there. the ceo of opal has stepped down. they're now looking for a permanent replacement. the thing to keep in mind, simon, they need to make cuts there. they have lost $14 billion over the last 12 years in europe and now it's the mess on the hands of mr. girsky. simon, to you. >> ty? >> i'll take it. warren buffett tells cnbc things are beginning to slip fast in europe and thinks perhaps the eurozone can't exist as originally designed. the next guest says that while things are indeed pretty shaky over there, the situation is not as dire as mr. buffett sees it. brian singer, head of william blair's aloe case strategies and the manager of the long-short aloe case fund. welcome. >> good to be with you. >> explain where you part company and why. >> i agree with the assessment over the long term that the euro will not exist as it exists today but that was always the case from its inception. however, today there are significant imbalances within the central banking system of the european monetary union and we believe those imbalances need to be rectified or papered over to some degree so that they have the ability to actually unwind it over time so it won't exist some years from now but i don't believe it falls apart today. >> your fund or the main dynamic allocation fund can go anywhere, do anything, currencies, fixed income, equity. what are you long now and what are you shorting now and why? >> generally speaking, at a very ma ro level we tend to be long equity markets and we tend to be short sovereign bond markets. in particular, the sovereign bond markets of the safe havens so germany, the u.s., switzerland, japan. those are the ones that we have tended to be short. in the equity arena, we do own spanish equities. we do own italian equities and we own emerging market equities, in particular a focus on china and across the emerging markets smaller cap equities. within the bond arena, we do have exposure to credit. in particular, higher yield credit. >> i sense that you're long exposure in spain, italy and france is well thought out and very particularized and you own the companies that you do own for a special particular reason. so explain why you feel that those companies maybe even name some of them are worth your capital right now when so many other observers would say the last place to be right now is spain, italy or maybe even france. >> first, i would say that really the only way to be a successful investor is to be unconventional. not to do what everybody else is doing. i don't mind that a lot of people look at it and say that's difficult. yes, we have analyzed the situation. the primary observation is that when you look at the motivations, one of the countries that has the greatest incentive to make sure the eurozone survives is germany and for that reason they have significant claims on the peripheral institutions or the peripheral countries of target two balances. i don't need to get in to great detail about that but the incentives are there. the second thing is that investors often confuse investing in countries and in companies. we are investing in companies. we are not specifically -- identifying specific companies. we are investing, for example, in spain and the ibex 35, their equivalent, for example, to the s&p 500 here in the u.s. so it's a broad exposure. the exposures that exist there, for example, the financial institutions are primarily bbva. those are broad global ins tungss. the ones that have the tremendous difficulties are the region aa aal institutions not e index. >> interesting. let's talk a little bit of where you're short. you said specifically some of the sovereign debt of some of the leading sort of safe haven countries. why those specifically and where else are you short? >> we are short some of the safe havens and in particular it's not that we are saying that the market, that yields go up this week or this month or this quarter. that's not the point. however, what we would say is that at yields of 150 on the 10-year in the u.s. and even lower in europe, we just simply don't want to be long those securities. we feel that there is risk of because of central balance sheet explosions there's a risk of inflati inflation, not disastrous but inflation. we fear a risk of the market turning its focus on the debt situations that exist in those markets. all of which could push yields higher if any sort of confidence comes in. importantly, we also have a number of currency position that help hedge some of the exposure and consistent with the fundamental views. >> right. >> for example, short some of the commodity currencies like the australian dollar so that would help in a crisis. >> thank you very much. we appreciate your being with us. we should point out that the dow industrials have just turned positive. how about that? after being down more than 100 points at one point in the day. looking at it higher right now by 12.5 points. let's look ahead at the financials. jpmorgan, wells fargo. they report tomorrow. it will be a big day. ed ponsi, how do you play it? >> okay. i like wells fargo because of the business mix. very oriented toward u.s. consumers, mortgages. just not a lot of international exposure there. on a technical basis, looking at the chart, a nice big cup and handle pattern there. very bullish. speaking of technical, i'm leary of jpmorgan. something technical analysts look for. when jpmorgan goes up, the volume disappears and seems if the big players are a little bit shy on jpmorgan going in to earnings. i'm staying off of jpmorgan for now. >> simon? >> interesting. okay. coming up on the show, a real power lunch ahead. oh, in fact, a lot of them, actually. see who's meeting with whom at the big moguls conference in sun valley, idaho. of course, we'll talk as you saw earlier in the program about the $119 million deal "the scream." more "power lunch" coming up. looking for a better place to put your cash? 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[ male announcer ] the united mileageplus explorer card. get it and you're in. a real important question in the finance.yahoo.com poll today. do you expect some sort of stimulus from the fed before the november election? and the majority of you, 56%, say yes. 44% say, no. which would obviously push the market substantially higher or so we assume with diminishing returns as the fed said itself recently. less than a quarter of an hour to go to "street signs." mandy? >> hi there, simon. coming up at the top of this hour, the dow trying to mount a comeback. we're going to ask a ceoo cantor fitzgerald what he sees for the market. we'll talk to t. boon pickens and ask a mayor of what happens when the money basically running out for the people living there. it's "street signs." back to you. >> we'll be watching. thank you very much. turning to the art world with an update of a story we showed you here. in late april, the live television look at "the scream." just days before it went to auction. we asked sotheby's about the mind-set of the likely buyer. >> experience would suggest they are purchased certainly at this level by very passionate people who have an extreme desire to own that unique object. and they're not looking at buying something at this sort of price level with a view to reselling it. they're buying it because they simply can't live without it. >> you know, we -- looks like now we know who baugt it. this is a list of some of the potential buyers we identified and way back in april. two blacks. steve cohen. ken griffin. henry kravis. now it appears that "wall street journal" reported that it is the first one we mentioned there, leon black. our props to our producer for identifying him as one of the likely guys. black told us last night that he wasn't ready to make an official comment. the $120 million sale, the most expensive work of art ever sold at auction and it adds to mr. black's billion dollar collection that includes van gogh, a picasso and a $48 million raphael chalk drawing. the next parlor game in manhattan is where will "the scream" end up. he sits on the board of the metropolitan art and board of museum of modern art. so, it could end up up there in dartmouth. check out cnbc.com for the slide show of wall street's top art collectors. simon? another day in sun valley, ty. idaho filled with meetings and media moguls. kayla is there live for us talking about the new pairings and the potential m and a. over to you. >> reporter: well, simon, what happens in sun valley doesn't stay in sun valley and why people like it. often, what happens here, the relationships lead to deals and partnerships down the road. look at who's breaking bread today. tim cook palling around last night with jack dorsi of square and twitter fame and fueling speculation that apple could buy twitter. then there's netflix ceo reid hastings. last night strolling about with disney's bob eiger and this morning entering meetings with directv ceo mike white and another old stand by, chase carey and then possibly the oddest couple and that's mayor corey booker and facebook ceo mark zuckerberg. zuckerburg donated to the city of newark and the school system and booker said that was not the case. here he is. >> complete misrepresentation because what mark did was put it in to a foundation. i wish it was facebook stock. it was not. it was $100 million in charitable contribution. >> reporter: booker says that they have yet to spend all $100 million and so there's no chance of a second batch of facebook funds coming their way any time soon. tyler, back to you. >> kayla, thanks very much. the market in rally mode right now. modestly so. we're off the lows in positive territory. and look at that intraday dow after a dive at 9:30. a climb now and we're positive. the s&p 500 basically flat down 3.1 points at 1338. we'll be back in two minutes. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 let's talk about that 401(k) you picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550 are always on the move. so they can't get to the bank to deposit a check. instead, they use citibank mobile check deposit. it's easy. they just snap a pic... ♪ hit send... and their checks are deposited right to their account. well almost all of their checks. stand back. seriously? [ male announcer ] citibank mobile check deposit. easier banking. every step of the way. i'm sharon epperson at the nym nymex. traders saying all morning only thing do get a rally is news of iran. the u.s. announcing more sanctions against iran, blacklisting several firms and individuals saying that they have been involved in an effort to acquire nuclear weapons. now, of course, this is now causing a rally, many traders are saying in the oil markets, specifically of brent crude and also looking at prices moving up in the wti market, as well, simon. back to you. >> thank you very much for that. we saw the equity market, of course, rallied a massive 120 points but it's beginning to come back down. big moves 2349 market ultimately. >> the important thing is the market's starting to move up since europe closed a few hours ago. the dollar giving up the gains. oil stocks up a little bit on this iran commentary and really looking at the markets, defensive posture today. dow jones industrial dominated by the health care stocks and consumer staple stocks. >> kenny, give us a quick comment on the market. >> struggling. we broke through 1340 on technical level. bounced off 1325. we'll be stuck in that very tight range and like i said earlier today, we'll test 1300 at some point moving through earnings season. >> warren buffett blaming an inept congress. up next, asking two big money manners what's holding back stocks and the economy. ♪ ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection. on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? welcome back to "power lunch." the dow is back down 6 points, the know the specific stocks helping the turnaround in the afternoon trading, mcdonald's is one of them. it's spiked up almost 2.5% now and the third best dow performer behind the two we talked about most of the day which is merck and procter & gamble. what do you have there? >> simon will do a rundown of where the market stands right now. >> the big news of the day is the rally back. dow negative 112 and iran sending us back down. >> back down. we were down, we were up and down again. ed, has the market hit a little bottom here or too early to say? >> it's way early to say that.

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