Passenger after passenger scampering to safety. Today much more on a topic we started yesterday. How much should you know about your pilot before you fly . And jimmy buffet said it best. There aint no way to reason with hurricane season. Weve got a major Storm Brewing out in the atlantic, as you see there. I believe those are the winward islands. Forecasters are telling florida its time to get red. First though to sue though at the nyse. Better firm that up before you go over to our sister network, the weather channel, ty. Thats all i have to say. Despite warnings this this earnings season might be soso, stocks indeed are up again, and, as a matter of fact, we are at the high of the trading session. Bob pisani is here on the floor of the new york stock exchange. They are starting to use the word teflon market again, even though there are some people out there who really think this might be a tougher earnings season than anticipated. I think its winward. That really got me thinking. Im thinking why dont i know that . Everybody hates the market because they think earnings will be anemic but one point away from an historic high on the s p 500. Unusual thing happening in the markets. Major sector a strange day when the transports are up 2. 75 and the dow industrials up half a point. Thats a very, very widespread, and the main reason were seeing that is because some of the air freight stocks are up. Federal express having a big, big day here on pretty good volume. Theres vague talk that mr. Ackman may be taking a stake in fedex to a new fund they are starting. No confirmation of that. Just talk on the street. You can see the influence they are having but some of the other air freight stocks are up as well. A riskon. All the industrials, materials and financials, second day in a row. That one has happened. Finally just put up the s p 500. I keep pointing out something, even though a lot of people dont like the rally. 1,669 is the old high. Less than 1 . Lets bring Kenny Polcari into the equation here. The market does seem to have its legs underneath it. Were in earnings season but so far so good. Weve had one earnings, alcoa came out and beat the number by a penny so everybody is supposed to celebrate. Im confused because we keep talking about this. The bar is low so it will bes for the companies to beat. The other thing, imf came out and cut Global Growth forecasts an encouraged everyone to keep stimulating their economy, so in my opinion what youll hear tomorrow from ben bernanke is full steam ahead. Were not changing anything, and were set to go until we hit a, b and c target. Go ahead. The fed tapering idea is now being factored into the market. Everyone is talking about september which is surprising to me, but everyone is, so people are worried about that. You dont think its going to happen in september . Im surprised, too, but the street seems to be convincing themselves that this is going to be a reality. They have convinced that earnings are going to be somewhat anemic, only 2 to 3 , convinced that the economy may be on the egh side, and yet were only 1 away. Let me go to Rick Santelli because the bond auction is off. How does it look . Bplus, not a bad auction. Now, its 32 billion three years. The auction yield,. 719. The wi was trading at higher yield levels so, of course, we have to take that into consideration. 725 offered of. 72. Lower yield and higher price. Thats a good thing. Heres why it didnt get an a. Average bid to cover the last ten auctions is 3. 5. Bid to cover here was 3. 35, but our last auction was 2. 95 so the trend is reversing a bit and directs popped up to 13 . The ten auction averages 20 , and we went through a stretch about six months ago where everything was in the mid20s. So that direct bidder, were not sure who it is, many think its a foreign central entity and large institution. They are definitely laying of course, but there was a bit more presence in this auction. Of course, we have tens and 30s to follow. Bplus sue. Its all yours. Good way to start the week. Thanks, ricky, very much. Kenny, lets continue this discussion because you do not think that the taper is coming in september, and if if indeed, as bob said the market is starting to factor this in, if it doesnt come in september could, this basically propel the market considerably higher . Absolutely, absolutely, and i think thats whats going to happen because i think like you. I dont know why everyone is convincing themselves it will happen in september. All because of the nonfarm payroll reports. Seems a little bit ridiculous. The fed is not dependant on the nonfarm payroll reports. Its a broad selection of reports that have to happen over the next few months you think like me . Ive got to change my thinking. Thats a scary thought. Im not sure whether thats a bullish indicator or bearish indicator, gentlemen. All right. Thanks so much. Well catch you later. Lets go over to matter thompson who has the market flash. Hey there, sue. Looking at shares of quest diagnostics, lower today down just about 5 . The reason it was cut from underweight to equal weight over at Morgan Stanley, the center for medicaid and Medicare Services just released their reimbursement rates and Morgan Stanley believes this company will see actually, because of the lower reimbursement rates, its going to be a 60 million hit to its ebitda and probably 26 to its earnings in 2014. The price target was cut to 58 a share, and its trading very close to that right now at 58. 12 a share. Tyler, back to you. Mary thompson, thank you very much. The price to buy a heiss house is rising and theres rising Mortgage Rates and rising rents. This may all benefit apartment owners because people who rent might stay a little longer in their places, and its also helping the reits. Downia olick live in washington to explain why and putting it all together for us in the reality check. Thats right, tyler. The thought was that more renters would turn into buyers, but rising Mortgage Rates are throwing a wrench into that. Take a look at some of the big apartment reits like avalon bay, camden and essex over the past month. They have been coming up as Interest Rates rise. Why . Well, reits are developers, and Developers Need cash. Rising rates make it more expense i ever, but the reits over regular Developers Already have a lot of capital. The apartments have underperformed for twoplus years now, and they provide some of the best Earnings Growth in reit land and provide dmens rat Dividend Growth so youre looking at 2 to 8 Dividend Growth with 7 to 8 Dividend Growth. And the fundamentals are still good. Rents went up in q2, both asking and effective according to a new report. The growth is slower than a year ago and thats due to large Income Growth and thats before the large Mortgage Rate jumps. Vacancies were flat nationally but 54 out of 79 markets saw decreases in vacancies and 3. 4 is well below the peak of vacancies of 8 in 2009. The decline, largely due to more supply coming on. Bottom line is where does demand go . Rising rates have robbed poey tension buyers of a lot of purchasing power. Are they priced out, or do they just maybe buy something smaller . How much higher will rates go . Well, if you think they are going even higher, then apartment rentals are a great investment play. Back to you, guys. All right. Thank you so much, diana. Mary thompson is very busy and has another market flash for us. You know, were coming off of what diana was saying. Focusing on the Home Builders because they are higher today, sue. Good news from core logic basically saying fewer homes were foreclosed on in the month of may and fewer homes are in the foreclosure process. All of these stocks are up on the heels of that news. 52,000 foreclosures completed in may. That is down from 71,000 in may of last year, but up from the 50,000 in april, but if you look at the total number of homes in foreclosure again, according to core logic, the number is now 1 million as of may compared to 1. 4 million as of last may. That, of course, is giving a lift to the Home Builders. Back to you. Thanks, mar. All right, ibm is moving in the opposite direction of the big board today. Ibm is down 3. 78, equivalent to under 2 , 191. 19 the last trade. Big blue downgraded to neutral from buy. A multibillion dollar deal in the supermarket aisle. Kroger buying regional supermarket Harris Teeter for 2. 5 billion or 49. 38 a share. Thats nearly a 2 premium to Harris Teeters monday close. It will boost krogers presence in the southeast and midatlantic regions. Kroger is the nations largest supermarket operator. Ty . Sue, thank you very much. If you missed it at the top of the hour, take a look at this video. It shows you that someone was able to record the last seconds, look at the people coming off the chutes there, the emergency chutes. The doors had just popped up. The chutes had been inflated, and people, you can see them rushing off to get away from that aircraft. You are see them coming down, amazing video. Today in San Francisco, authorities are meeting and look at the Swift Response by the Emergency Services vehicles coming in there to put out what will very soon be a major conflagration in that plane. Look at that. Just stunning. The authorities are now talking to the folks who flew that airplane to try and figure out what exactly went wrong. Phil lebeau is in San Francisco live. Phil . And tyler, the primary questions being asked by ntsb investigators are to the man who was at the controls of the asiana 214 777 that crashed here in San Francisco, and those questions primarily revolve around a couple of issues. First of all, what happened in the final 82 seconds as the plane was coming in for the crash landing. They turned off the autopilot 82 seconds before they hit the runway. Why was it turned off . Did the other pilot in the cockpit warn the other pilot he was going too low and too slow and why was there no distress signal prior to the crash . They tried to do a go around but there was not enough times. The pilot of asiana 214 had just 43 hours of flying time in the boeing 777, and his lack of experience at the controls, that is going to be a focus for the ntsb. What we know is that we have an experienced pilot. Hes got a lot of hours, but hes new to the 777. Hes flown aircraft in the boeing family before. We need to understand what that Transition Training looks like and what the initial operating experience, which is this is what he was doing, getting the time in the aircraft with an experienced instructor. By the way, the ntsb investigators expect to talk to that pilot, the man at the controls, today. Meanwhile, the ceo of asiana is flying here to San Francisco to meet with victims of flight 214s crash. He will be apologizing and has apologized already for what happened on saturday, but all of this brings up the question of the experience of those who are flying commercial airplanes . Should the public have an idea of whats going on in terms of who is flying, how much training they have had. Commercial pilots for asiana need at least 60 hours as well as ten takeoff and landings to be certified as a captain in the 777. The pilot at controls had 43 hours and was not certified yet as a captain. Still, more questions than answers specifically revolving around that pilot and what happened in the final 82 seconds on saturday. Back to you. Phil, stay there. Were going to get more on this asiana pilot probe and the wider implications it may have on the industry. To do that well bring in usa todays airline analyst. Good to have you here. Tell me about the training that the pilots go through. Phil just mentioned it was on the offered Something Like 45, 47 hours at the controls of a 777. I read something over the weekend that indicated is that not all of those hours necessarily were in a flying airplane, but some of them, and you get credit for them, they were a simulator. It can work that way and to tense your question, should we be concerned about, you know, the number of hours that pilots are flying . I guess we should. The sobering news is that there is a pretty good system in how the pilots their way up and then shift from one aircraft type to another, and i think another encouraging takeaway, would never say theres a silver link to any kind of aviation incident, but one thing we can be heartened by is from these past accidents the faa has been fantastic in learning lessons from what went wrong and translating them into new rules, new procedures and new regulations th s thas that real the same thing from happening again. One of the reasons have were talking about with this crash why theres so many survivors. This exact crash happened in 1975, hard to say how many people would have survived an accident with the safety regulations of the day. Its really a miracle that so many of the people did survive. Phil, one of the things we were talking about yesterday with gordon bethune, former ceo of continental, lock at chute come out there and deploy, was the fact that the instrument landing system as the airport who is not opposite. I should have ask him how long it was inoperative and why wasnt it working and go that be something that the pilot might have been expecting was working . We dont know if the pilot was expecting t. Anz crash was told by the San Francisco airport that that system was not working. Its been out since june. They are doing construction on runway 28 left, so thats known for all Airlines Flying in here that that system is not here. Given the amount of experience in total for this for this pilot in commercial airplanes, many are saying, listen, he should not have needed this on a clear day with no inlemt weather to bring in that aircraft without any programs. Thats the situation and when it had to do were that piece of technology. All airlines have been told its out and will be so until august. Thats because of construction on the airport but on a day like that they should have about able to bring that craft in and theres other redundant systems. Exactly. Malcolm broadwell wrote a very interesting article, part of his book, about the culture in the cockpit. Some dating back to the 1890s and 90 there that obligated 9 senior captain to the ntsb will investigate this accident and try to reconstruction what led up to this accident so thats something thats going to be looked at. What that was talking in in that particular case, the folks on Korean Airlines back at that time. You know its a culture where youre expected to remain silent or difficult rex to both your elders and to your superiors in the workplace and the fear is because of that culture. It was more than just a common practice. It was a real entrenched way of thinking in that culture and because of that it was thought that maybe some of the, you n know, pilots would not be the lesser pilot was not going to be feel like he was able to speak up to the captain. The first officer was not going to be to speak up to the president , this is right and absly they are quoixte. They are going to look at a here, but as we mengsed earlier, if they find a problem with that, they will address that with new always and regulations because in place. Thats all speculative. Dont know if thats whats going on here. Thanks, phil, for your great coverage out there in San Francisco. Yas question of the day. Yesterday we asked if pilots should be required to publicize their flight records . A big response so far. Still you can comfort your vote. Go to yoo. Finance. Com, results coming up later on plounch. Toy, new york city subway system is going through its first kind of a test today. They are looking to see what had a would if the system was with implemented. Chantal is coming. Forecasters are saying customers up and down the earthquake that prepare. More on power lunch when we return in two. Geoff im the kind of guy who doesnt like being sold to. The last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. You want a broker you can trust. A lot of guys at the other firms seemed more focused on selling than their clients. Thats why i stopped working at my old brokerage and became a Financial Consultant with charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Welcome back to power lunch. Im Mary Thompson with the market flash. On shares of netflix extended its gains from yesterday when it extended its contentsharing deal with cbs. Today its up another 5 . Of course, the company will be reporting its earnings on july 22nd so a number of people will be watching to see whether or not it can, again, have a profitable quarter as it did in the Fourth Quarter or first quarter, i should say. But, again, the company gaining once again today on the news of its content sharing deal, an extension of that with cbs. Sue, back to you. Thank you very much, mary. You know, in most cases the subway is pretty much the best way to get around here and down here to the new york stock exchange. There real reno parking lots, and if you do find one, its extremely expensive. Even many of the citys top fangs professionals use it to get to but bourque. And for you a look at what would happen if terrorists managed to attack with some kind of gas. Heres abc newss Katherine Craig. Reporter here you can see the air sampler boxes right here. Researchers what installed them near various subway entrances in manhattan and this is all part of a study to help the new York City Police department to determine how air flows in the event theres a chemical attack on the citys subway system. Researchers have dispersed a gas inside a number of stations. The gas is harmless, colorless, coder le. The ny bor s. If somebody takesic is release ed. Researchers will conduct the study over the next three years and the tracer gas will be released over the next 30 minutes, not too wind and no rain when the air samp mgs are collected. We know researchers will be conducting the test in brooklyn an queen in the days ahead. Im Katherine Craig in times square. Back to you. Thank you very much. We are also tracking a fast moving storm thats working its way towards the east coast. Her name is chantal, and the weather channels paul goodloe is on the case. Hi, paul. Hey. Its moving fast at 29 Miles Per Hour at the west northwest. Just a Tropical Storm though. The Hurricane Hunters have been flying into this and discovered 85mileperhour winds at flight level at surface down to around 60 Miles Per Hour. In fact, some of the islands around here, winds gusting over 50 Miles Per Hour, but it is moving part, so a quick hit to your vacation and then things start to brighten up. The bahamas, maybe known florida, impacted by this upper level low. Rain for the next 48 hours in advance of what could hatch later on this week with chant a. Heres the forecast keeping it a Tropical Storm as it approaches the south of puerto rico as we head through tonight into early tomorrow morning and then on towards the dr and haiti as we head to may day after this. Heads here to turks and caicos. On friday we could see chantal perhaps stall. The good news is the forecast is for this to weaken and remain Tropical Storm strength, not to a hurricane, but one it stalls it could perhaps have time to strengthen and then, again, all bets are off so keep it close guard across the southeast. Sue . Thank you so much. Sure will keep a track of that. Shares of blackberry moving higher in todays session. Plus the future of the big bank. Now rules unveiled today, and their earnings right around the corner. What investors need to know on power lunch, coming up next. Fn and taste awesome. These are good. Told ya im feeling better already. [ male announcer ] new alka seltzer fruits chews. Enjoy the relief with fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. 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Ever at legalzoom. Com we put the law on your side. Ybody has differentiness dream a reality. Ideas, goals, appetite for risk. You cant say one size fits all. It doesnt. Thats crazy. Were all totally different. Ishares core. Etf Building Blocks for your personalized portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Faso you want to save on autoof insurance . Drive a hybrid. Get good grades. Lose the bling. Go paperless. Combine policies. Make automatic payments. And of course, talk to farmers. Hi we are farmers bum pa dum, bum bum bum bum welcome back to power lunch. Im seema mody. Blackberry shares moving higher after ceo thortson hines told shareholders during their annual meeting that the company has a solid Balance Sheet and that it will utilize its strong cash position to drive its blackberry 10 and its secure network platfo platform. He also highlighted a threepart Transformation Plan and urged shareholders to understand that blackberry is still in the early stages of a turnaround and that change can be volatile. Tyler, back over to you. Thank you very much, seema. New rules for the banks. Regulators want to raise a key metric for the top u. S. Banks that are considered big enough to pose a risk to the global economy, and it could force those banks to raise billions in additional capital. The fdic plans to raise socalled leverage ratios for them to 5 . Thats stricter than the 3 level agreed upon by International Regulators in the socalled bassal three. One of the proposed changes would not take effect until 2013 but but. This comes as big banks gear up to report earnings so what can investors expect . Heres what analyst dick bove said earlier this morning. This should be a sloppy quarter. The banks have had 14 quarters in a row in which their earnings have been up year over year. I think it will be pretty tough for them to do it for a 15th time and the reason is pretty simple. Banks do pretty much what the economy does. Did not have a great Second Quarter from an economic standpoint so were not going to have a great Second Quarter in terms of bank earnings. Lets take a look at how the financials have fared this year. Jpmorgan up 60 and wells fargo up 27 . Both report friday before the bell. Goldman sachs is up more than 60 . Citi up about 25 and bake bank of america up 15 and Morgan Stanley higher by 32. 33 . Sue . Gold prices are closing right now. Had a big session yesterday. Lets see how the close looks today with Bertha Coombs who is tracking the action at the nymex. You know, sue, coming into this week we thought gold was likely to pressure down and try to go below 1,200 an ounce. Weve had two days of rallying here as the bears have stepped back. The bulls have stepped in. One of the impetuses for todays extension of gains, the fact that we saw a hotter than expected consumer inflation number coming out of china. Cpi there up 2. 7 . So that has some folks hunting for a little bit of Precious Metals as the store value, but that also poses a big head wind for copper, sue, with the sense that perhaps the chinese might not be as stimulative if inflation there is running hot. Back to you. All right, bertha, thanks so much. Lets get to the trading action here. Were up about 69 points on the dow right now, off session highs but one Earnings Report in. Fingers crossed by the bull. Normally alcoa is not a marketmoving effect but it thought it did have an effect. He said we cant control prices but can control the costs, and were doing this and are optimistic. You can clearly see the influence that that had this morning. Listen, if alcoa can beat, anybody can beat and, you know, thats obviously not the case, but thats thats kind of the thought behind the psychology. Expectations are really low. Alcoa tied to aluminum prices. The rest of the market. Take a look at the major sector. Sue and i were talking at the top how unusual it is to see the huge spread between the transports and industrials, largely because of the nice move up by some of the freight stocks and thats a little bit unusual. Elsewhere, riskon day for the major sectors. Kinds of things you want to see if youre a growthoriented guy, industrials and materials and financials on the upside. Home builders are strong and core logic said seriously delinquent mortgages were at their lowest level since 2008. They unusual to see better than 5 moefs moves in the Home Builders. Sideways and building groups up. Bond funds, the biggest etf out there, and even the treasury bond fund, the tlt, also modestly to the upside. Two days in a row. Due for a bounce. Okay. Thanks so much. Lets go back to the cme and Rick Santelli. The first auction got a pretty good grade from ricky. Lets see how the aftermarket response is to it. Hi, rick. As you recall we were 71 basis points on the new guy. Intraday of the old guy its unchanged at 67. Just for the record, if we open that chart up you can see the three year and early may was end 30 basis points. Two mounts ago it was half the yield of this market. Look at the bench intraday 10. Two basis points, but the bigans are focusing on foreign exchange. Open the chart up to one year. This could be a significant downside breach. Tyler, back to you. All right, rick. Thank you. Eliot spitzer, he is back or he is trying to be anyway. He was on msnbc this morning, morning joe. Got a little bit choked up. Were talking about Second Chances after the break. Plus, egypts Muslim Brotherhood rejecting a timetable for new elections put forward by the countrys interim president. There are fears that a new wave of violence could break out at any time. We will go live to cairo after this short break. Well be right back. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection and because usaas commitment to serve military members, veterans, and their families is without equal. Begin your legacy, get an Auto Insurance quote. Usaa. We know what it means to serve. Welcome back to power lunch. Im Mary Thompson once again with the market flash. Were looking at the fear gauge of the market, down 29 in the last two weeks, and the vix is now trading at a sevenweek low. All suggesting that investors are getting a little bit more comfortable with the idea of the tapering by the federal reserve. Sue, back to you. Mary, thank you. To the crisis in egypt now. The country naming an interim president and liberal economist as Prime Minister in its transitional government. Cnbcs Yousef Gamal El din live in cairo now with the latest this evening. Good evening, yousef. Reporter hey, sue. Well, finally theres some progress when it comes to the cabinet. You mentioned a new Prime Minister, a veteran economics professor, 76 years old and formerly minister of finance, and he will be overseeing the transitional period until new elections take place. Also a Vice President , mohamed elbaradei, formerly with the iaea and a noble peace laureate. These two figures are the first announcement and expected to push this forward. Still no other cabinet announcements. Also have some details on this road map. Apparently they want to wrap this up in about six to seven months, and they will first appoint committee to work on the constitution and then you have your parliamentary elections and then eventually president ial elections so they want to make this swiftly. Now, youre seeing some images of the crowd. These are the promorsi protesters gathering in their square in new cairo. They are clamoring to the legitimacy of ousted president mohamed morsi. They want to see him back in power, and they have vowed to fight what they call a military coup. Opened, you have, of course, the supporters who are watching this very, very carefully, and well just have to see how this plays out. On the markets though, they gained ground, some 3. 5 in todays trade that shows you investors are confident and are encouraged by whats happening on the political scene, but dont be mistaken. The political impasse is still very real, and the islamists for the most part or the islamist parties feel sidelined and are basically not part of the political process. Its not going to work, experts tell me, until the political parties, the Islamic Political Parties take part, are encouraged and play a role. Sue . Yousef, thank you very much. Thank you, yousef. Noted economic and frequent power lunch guest Niall Ferguson quickly predicted the renewed outbreak of protests in egypt and did it here on our power lunch show a couple weeks ago and rejoins us now on the phone. Nyae aal niall, welcome back thank you. Considering the way that you had the foresight to see this unsolding what, happens now . Well, ive always said that this is a classic revolution going through the phases we see in all the great revolutions. You start with euphoria and then a wrangle over the constitution. Phase three is the economic collapse. We just had that, and then were in phase four, and a couple of things can happen here. One is that the military can reestablish control and the revolution can eventually end, and the other is this a civil war can break out, and my money is on the latter because at the moment we see all the signs of an increasing level of violence you know, the United States, as you well know, gives a very sizable chunk of aid to egypt, and if they declare this a coup, they would not be able to then go forward with that aid. Should the United States label this a coup in your opinion, or not . I dont think they should, but you have to recognize what a fiasco this is from a u. S. Vantage point. Ever since the outbreak of the arab spring, ive criticized president obama for his complete lack of strategy, complete lack of coherence on this issue from the very moment that mubarak was overthrown. The u. S. Has been in disarray and frankly this is just the latest sign of a Foreign Policy debacle which is, of course, producing even more violence right now in syria where the president could not decide whether or not to intervene and then intervened too little too late. Its a very depressing picture because, of course, once upon a time the United States was the dominant force in the middle east, really from the early 1970s, and now we see a situation in which the u. S. Is playing catchup, and Big Decisions are being taken by the saudis, the United Arab Emirates who just put big money down on the table to stabilize the new egyptian government. The uss nowhere. Its a fiasco. How soon, very quickly, before you think this dissolves into what you think is going to be a civil war . Do you have a timetable on when you think that might happen . Its anybodys guess. Watch for car bombs. We saw in iraq how quickly violence escalates between islamists and their opponents when they start bombing. Thats my fear that well see cairo descend into even more violence than yesterday. Niall ferguson, always a pleasure to have you here. His new book is called the great degeneration and will join us very soon, we hope. Very sobering conversation there. Wait until you see who was running with the bulls in spain yesterday, and a completely different note. Well tell you that next, and Elliot Spitzer on morning joe talk pentagon running for new York City Comptroller and getting choked up as he refle reflected on his past. Does he deserve a Second Chance . Welcome back to power lunch. Im Mary Thompson. Lets take a look at shares of apple and amazon, the reason both companies basically deciding to drop lawsuits over which company had the right to use the name app store when they talk about their own app stores at this point no one says it matters. People know where to get their apps. Both stocks slightly up on the news. Sue, over to you. In yahoo s finance question of the day we asked if pilots should be required to publicize their flight record. 45 say yes. Other industries publicize similar records. 16 say no, i trust pilots and the airlines. 39 say some form of increased transparency should be required. 50,000 people voting incidentally. All right. Lets see whats coming up on street signs 2 00 p. M. Eastern time. It is indeed. Hi there, sue. Coming up top of the hour, the summer period does tend to be mostly negative for the dow, so why arent we winning yet . And the media is on fire. The three best performing S P Companies over the past month are indeed media companies. Well find out whats making this space so hot right now and also out there, guys, very special vehicles in the front of the building, names like speedy wiener, what are they, the wiener mobiles, the wiener mobile run is kick off today, and they are here with us to announce race to the finish, all six of them, in fact, are here to say hello so it will be a real exciting show. Guys, meantime, back to you on power lunch. I just dont know how to follow the wiener mobile, mandy. Its online. But i do in a way, believe me, i do, and ill get to it in a minute. Thousands of thrillseekers running for their lives in pamplona, spain, two treated for bruises but no gorings here, folks. Among those participating new york jets coach rex ryan. His team got gored a few times last year. The new york tabloids showing a slimlook ryan wearing the traditional white uniform with a red bandana around his ample neck. The jets said ryan was uninjured, and look at him, hes smiling down there. The jets report for Training Camp in two weeks. How about that. Isnt that nice. No gorings, happy to report that. Power rundown time and joining us is cnbc. Com net Senior Editor john carney and wealth editor robert frank. Two disgraces politicians, the link back to the former wiener mobile, Elliot Spritzer and former congressman Anthony Weiner. Spitzer is running for new York City Comptroller and weiner running for mayor of new york. Spitzer joined morning joe earlier today and got a bit choked up reflecting on his past. Take a look at this here. How are you different than you were five, six years ago . What has changed personally . A lot of pain, a lot of pain. In who you are. Thats it . Yeah. You go through that pain, you change. Weiner spitzer, do they deserve a Second Chance, john karn . Youre a brooklyn resident, what do you think . I think Anthony Weiner clearly inspired spitzer to run. New yorkers believe that these politicians do deserve a Second Chance. I think spitzer saw how well weiner was doing its like, hey, apparently all is forgiven. I get back in. Do we draw a distinction between weiner and spitzer who was a sitting governor at the time he was patronizing prostitutes . Yeah. I mean, some would draw that distinction. I dont care what politicians do in their bedroom, as long as it doesnt conflict with whatever they are doing in office. I think he would actually be a very good comptroller, understands finance. We need better returns for the pensions in new york. I think he would do that. What i dont like he didnt answer the question. How have you changed and tears was all he could do to answer. He didnt say how he had changed. I do wish he had answer that had question. What spitzer was involved in was very dangerous. To be involved in organized prostitution as the governor sets you up so that you can be black mailed. Thatty think is a real Public Policy issue. I say any any individual who needs Public Office that badly i dont need. Thats my thought. Mr. Spitzer, by the way, will be on squawk box tomorrow morning, and you wont want to miss that interview with mr. Spitzer. Next, according to the new york times, the billionaire dealmaker Ronald Perlman is suing his old friend Michael Milken for fraud. Not personal, just business here. Lawsuit involves one of pearl mens companies, harlan Clark Holdings which bought global scholar back in 2011, a company backed by milken. What do we make of this . Mr. Perlman likes to sue. He sues lots of people. If these guys placed a big value on friendship they might not be billionaires. Im a billionaire in friends. Never sued any of them. Rather be my way than their way. Perlman sues a lot of people and so does milken. Whats surprising is how lucrative milken has made a career of being banned by the s. E. C. Worth 2. 3 billion. He was so involved in this deal, it just tells you how active he is under the radar in the business world, after being banned by the s. E. C. Band from the securities business, but hes still done very well in business, and we forget that. And he subsequently paid a fine for getting involved. In 1998. After the official fine of involved with drexel. The Worlds Largest yacht, 590 feet is also the fastest. It hits about 37 miles an hour, and thats not even at top speed. Youve done some reporting on this yacht. Shazam. Thats right. This is an engineering marvel. First of all, 590 feet long so were thinking a football field and a half and then it goes 37 Miles Per Hour in the water. Take the Chrysler Building, twothirds of the Chrysler Building going in the water. 95 horsepower using jets but this guy paid fantasy to help this in the water. Its a jetski the size of a city grok block and a great symbol of how the wealthy have done across the past ten years. Urate. They are trying the boats are getting faster and bigger. And they get to consume the oil that they pump. Gentlemen, thank you very much. Americas top five states for business. Scott conk counting them down for you in a secret location. At number 5 weve had tie, the first time ever, utah and virginia. Number 4, welcome nebraska and who will be number three and where the he can am i. That revealed when power lunch continues. What do you drive . I drive a ford fusion. Who is healthier, you or your car . I would say my car. Probably the car. Cause as you get older you start breaking down. I love my car. I want to take care of it. I have a bad wheel i must say. My car is running quite well. Keep your car healthy with the works. 29. 95 or less after 10 mailin rebate at your participating ford dealer. So you gotta take care of yourself . Yes you do. You gotta take care of your baby . Oh yeah the ones getting involved and staying engaged. Theyre not afraid to question the path theyre on. Because the one question they never want to ask is how did i end up here . I started schwab for those people. People who want to take ownership of their investments, like they do in every other aspect of their lives. Hooking up the country whelping business run trains they haul everything, safely and on time. Tracks they connect the factories built along the lines. And that means jobs, lots of people, making lots and lots of things. Lets get your business rolling now, everybody sing. Norfolk southern whats your function . Helping this big country move ahead as one Norfolk Southern hows that function . All right. Lets look at the euro. It had already hit a threemonth low earlier. Now more pressure at s p cuts italys Credit Rating from bbb to bbbplus. Sue . All day long were counting day americas top states for business 2013. Senienior correspondent scott c live where were here with number three. Reporter doing this for seven years and this years most interesting results. The states are doing better financially which means they can compete more aggressively for business and jobs and the whole economy in this country is shifting. Keep that in mind as you look at state number three. North dakota, the peace garden state, moves up to number three this year with 1,592 points. North dakota finished fifth last year, harnessing shale oil to create an economic powerhouse. The economy is north dakotas best category coming in at number two. It also comes in second for infrastructure, the jump from last year and the state is still one of the worst for technology and innovation where it comes in 46th. Unemployment in north dakota is practically nonexistent at 3. 2 . The top individual income tax rate is 4. 6 and the top corporate rate is 4. 53 . The state sales tax is 5 . North dakotas largest private employer is Sanford Health which bills itself as the nations largest Nonprofit Health care system and the largest industry is agriculture. Based on all the guesses weve been seeing on twitter with the topstates a lot of you will have to adjust your assumptions now as we continue to count down the top states. I can tell you though that north dakota came within one point, one point, of being number two, so what is the number two state . Our runner up, that coming up on street signs. Go to our website, topstates. Cnbc. Com and keep your thoughts coming on twitter. We sure will. Thank you, scott, very much, the dow marching towards all wash dime highs once again. The biggest stock winner [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Why let erectile dysfunction get in your way . Talk to your doctor about viagra. Ask if your heart is healthy enough for sex. Do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. Side effects include headache, flushing, upset stomach, and abnormal vision. To avoid longterm injury, seek immediate medical help for an erection lasting more than four hours. Stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. This is the age of taking action. Viagra. Talk to your doctor. All right. Lets check the markets for you. The dow is up 75 and the s p up 11 and the nasdaq 18. The russell 2000 which head a new alltime high for the second straight session may make it three, its up about. 75 . Smallcap winners, prestige brands, walter energy, yelp, tasaro and kb homes. Ty, up to you. Very close to the dow at an alltime high. See later in the day. That does it for this edition of power lunch. Have a great afternoon. See you tomorrow. Street signs begins right now. Well, will the streak of summer swoons finally be broken, or is a stock slide just around the calendar corner . Were going to dig in. Well, dont tell the market socalled old media is dead. Will you not believe who the host stocks in america are right now. Plus, were going to unveil the second best state in america for business as we count you down to the top spot, and herb warned you on a stock thats down nearly 20 today. Well tell you who it is coming up, mandy. Indeed we will