Scary forecasts that so many people told us to beware of . Have the analysts changed their tune, or is the rough stuff still to happen . Archrivals, Goldman Sachs making a pretty bold call picking a favorite between gm and ford and then, of course, theres coke and pepsi. Where should you put your money . Were going to talk about that coming up. And mcdonalds is getting a brand new address, but wait until you see who is going to be behind the counter. Tyler is out today. Michelle is at the nyse, and well get downtown to her in just a couple of minutes but first the bull run in housing. Another big number today. This time its the home Builder Sentiment figure. This year kb homes is up 20 year to date. Ryland up 10 and d. R. Norton up 9 . Diana olick live in washington with more details on that. Hi, diana. Reporter yeah, sue, what about the rising Mortgage Rates . I guess the Home Builders dont care so much but skeptics tell me they will. The sentiment numbers first. Home Builder Sentiment in july jumped 6 points to 57. 50 is the line between positive and negative, and we only crossed that line last month. They were at 35 one year ago. Builders are feeling the best since they have since january of 2006. Looking at the three components of the index, current sales rose five points. Sales expectations over the next six months took the biggest leap, up seven point and buyer traffic rose five point. The biggest gains were in the midwest, the smallest out west. In the west you still have the final level of distressed homes so, again, buyers not so worried about rising Mortgage Rates. They are, however, worried about losing the mortgage Interest Deduction and worried about reform of fannie and freddie and general housing finance. Now, the price of supplies they say are easing, and that is helping the bottom line quite a bit. That was the quote from the National Association of Home Builders, but Going Forward skeptics are saying that that we will see the effect of rising Mortgage Rates in the months to come so well see if sentiment continues to stand up. A lot more online. Reallycheck. Cnbc. Com. The markets are down today. The Dow Jones Industrial average right now is lower by about 51 point. The nasdaq is lower by 12 and the s p 500 lower by nearly 9. Okay. The nasdaq, however, is near a 13year high. Its been up 14 straight days. Thats the best streak that weve seen since 1990. Year to date, its up 18 . The s p is up almost 4 over its eightday up streak. Thats the best up streak since november of 2004. Joining me on the floor is Cnbcs Bob Pisani and joe greco, managing director with meridian equity partners. Guys, good to see you. Good to see you. This feels like the market cant go up every day pullback. Two things about today. Number one, Esther George on the Federal Reserve saying shes in favor of tapering the bonds essentially immediately. That good for a few points on the downside, the big of the hawk on the fund and number two, comerica the first big Regional Bank to report, the first regional, and they had very weak loan growth and lowered their loan growth expectations. Thats one of the reasons people have been buying the banks so all the regional bakes are weaker. I think it might be tougher for the banks to move forward after a few good earnings reports. Mr. Bernanke nervous ahead of the meeting tomorrow . I dont think hes nervous at all because he clarified what hes looking to do and farther reaching in september or at the end of the year with the tapering its his legacy. Tomorrow prepared remarks at 8 30 and well hear from him 10 00 live and unscripted what. Hes looking to do here is all the hard work hes been put in getting us up to 1673 a day, he doesnt want tonight buyer. He wants to make sure that this market transitions over. Has the market demonstrate that had it can handle it . It sure seems like it with the recent run. Today is just a breather. Need a little breather. Volume low so were looking to tomorrows cat lifts, and we had decent numbers out of the home Builder Sentiment and cpi came in a little bit better which is obviously a little bit of a bolster, mostly related to the gas price, but i tend to think right now good news is good news. Its good for the economy. And its good for the markets. I dont think that the main goal is to keep the tenyear below 2. 6 . The home Builder Sentiment. They are not worried at Mortgage Rate at 3. 5 . If it goes to 5 , i can assure you that home Builder Sentiment will change. Mr. Bernanke knows that. Gentlemen, thank you. Lets get over to the nasdaq and seema mody and the big movers there. First half of the year the big question is when will the nasdaq join the party . The nasdaq has now not only joined the party but the life of the party, outperforming the s p and dow on the yeartodate basis. The recovery in tech has really been the driver behind the nasdaq. The nasdaq 100 which is comprised mostly of largecap tech posted its best winning streak since 1990. This comes right as wall street kicks off tech earnings with yahoo on deck tonight. However, according to thompson reuters, tech corporations on average are supposed to see a contraction in eps growth. Analysts pointing to a stronger dollar, week i. T. Spending and a slower than expected recovery in europe as for the reason why. He watches outperformance in tech, being told that the street might be getting ahead of self and trading on hope that well see a pickup in corporate i. T. Spending. Sue, back to you. Thanks. Goldman sachs shares are on the downside but year to date the stock is up some 25 . Incidentally, today is earnings day for Goldman Sachs, and Mary Thompson has been on the case since the getgo. Right, mar . Reporter thats right. Goldman beat the street and theres questions about the quality of its earnings pushing it lower. 83 cents ahead of estimates held by a 1. 6 billion share buyback, lower tax rate and strong results in its own investment and lending portfolio. Heres barclays analyst roger freeman. The core businesses were a little bit better, just as some of the other banks were reporting, but that was the real standout, investing and lending. Reporter revenue and core training businesses hurt slightly at the quarter end by volatility while investment was helped by strength in debt underwriting. The ceo saying client are information centric these days looking for data to help position their business as they anticipate an end to the low Interest Rate environment, an environment that schwartz says isnt necessarily bad. Returning to kind of normal Interest Rate levels, it feels good in some respects. Reporter less forthcoming on how goldmans position to meet a proposed rule on leverage ratios for big banks, questioned repeatedly about goldmans position now and says hes very comfortable meeting the 2018 deadline unwise to give firm numbers. He also described goldman right now as being cautiously optimistic but still very concerned about expenses. Concerned that revenues will pick up any time soon as the clients try to assess how they should position their business in this environment. Everybody is worrying about the september taper or not september taper. Thank you very much. To Johnson Johnson hitting a record high, or at least it did earlier today. The company posting better pan than expected Quarterly Earnings and its revenues coming in better than expected. The stock is up nearly 30 for the year. Hca is moving to the upside in todays trading session. The Health Care Provider projecting stronger than expected secondquarter earnings because of an increase in hospital visits. The boosting of other Health Care Providers going along for the ride, all of them with strong leads with tenet leading the way. Michelle. Pepsi versus coke, gm versus vote. If i could pick only one, which way would you go . Sense is also delivering alpha. Treasury secretary jack lew kicks it off in the 8 00 hour. Right now though, theres more power lunch after this break. Surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. The big mac heads to ho chi minh city. Mcdonalds is planning to open its first restaurant in vietnam early next year. Its the latest u. S. Name to open up shops following the likes of pizza hut, kfc, subway and starbucks. And get this. The person that was awarded the franchise just happens to be the soninlaw of vietnams president. Funny how that works, sue. Isnt it funny the way that works. Im sure its just a coincidence, michelle. All right. Tesla taking a big hit today down 9 . Goldman sachs setting a new price target. Set 11 actually. Setting a new price target for the electric carmaker. Though its raising its target to 82 from 61, its still well below mondays close of 127. Now, based on forecasts for Global Market share and operating margins goldmans best Case Scenario fortes la shares is 113. The worst case 58 so theres a pretty wide margin there. Tesla stock has nearly quadrupled since the start of the year. All right. Arch rival time. We have big news on all four stocks. Coke versus pepsi in a second and first the automakers, gm and formed. Hitting a new 52 week stock and there could be an announced stock dividends by the end of the year. Our auto guy is phil lebeau. Why did they make this move. Reporter ford has been doing extremely well . Reporter thing they are saying a case where ford is no longer attractive and gm is. They raised the price target on both of them and that expects both of them to do well but when you look at gm, touched on a couple of points there, one, more near term cat lifts, especially when you take a look at the product launches coming in the second half of the year and the other thing to keep in mind if gm declares a dividend by the end of the year that will give the stock a pop as well. They think this is a stock that goes up near 40 if not past 40 a share. What about the cars and trucks that they sell . Who has the edge there . Reporter well, i would say the first half of this year it was clearly ford having the edge. Right. Reporter benefit is you had truck sales accelerating because of the Housing Markets and these why the fseries is doing well will General Motors was flat. Gm showroom, a slew of new models will be coming in, you combine that with the expectation that they will likely pick up market share, i think this is the tale that both will do well and gm likely to do better in the second half of the year. What about the global footpri footprint . Which cop do you think is better positioned, ford or gm . Gm a little better positioned globally because of where it is in china, but when you look at china, keep in mind that ford is growing very quickly there. Year to date, sales are up 47 . Both adding a number of plants, and think expect to pick up sales rapidly over the next couple of years, sue, but an edge right now to gm because it is number one in that market. Phil, thanks so much. Appreciate it. Michelle, over to you. Sue, two more archrivals now, coke versus pepsi. Cokes secondquarter profit falling. They blame the weather this. While pepsi bubbles up to alltime highs, so which drinkmaker is a better investment right now . A Senior Analyst with jpmorgan joins us now. Good to see you. Good to see you as well. Investors with a choice between the two. Which would you tell them to buy . Wed stick with pepsi here. Recommending it for a while. Outperformed coke year to date as well as over the past couple of years. We still think theres a lack of appreciation for the improvement that pepsi has put in over the past couple of years, more marketing, spending and greater growth at pepsi than we are for coke or pepsis global beverage business. Im glad you pointed out that because we always say beveragemakers combe coke versus pepsi but they are very different companies. Pepsi also has snakd. In the past they were criticized, that it should be split off but you think its a benefit, it sounds like. If you look at these businesses, what matters is not whether its a food or beverage but whether they grow, and for a number of years pepsi simply wasnt investing for growth behind the core beverage or snack food business. They have accelerated top line and ramped up productivity and now look at the snack business and say this is what it should be doing. Growing volume, growing profits very nicely, its a more attractive business right now than what were seeing on the beverage side. What do you think about coke blaming the weather. Is that to be believed . Weather has an impact on beverage sales, whether its beer, soft drinks, what have you, so theres no question that the weather impacted them. I think what were seeing on top of that is global Macro Economic problems whether its brazil, mexico, china, europe, what have you, combined with a little bit of a pushback on carbonated soft drinks. You hear more and more about obesity. Becoming a bigger issue around the globe and that will continue to weigh on volumes Going Forward, but weather is definitely an issue, particularly in north america and europe this quarter. Yeah, but, thats what diet coke is for, i always say. All right, john. Thanks so much. Good to see you. Thanks for having me. To josh lipton with a quick market flash. Josh . Watching merck here near the lows of the session saying that the fda will require more time to review its application to sell a drug which is intended to reverse the impact of muscle relaxants used in surgery. Merck down just about 1 now. Sue, back to you. Josh, thank you. The nations biggest Home Builders, well, they are going on a big buying binge gobbling up their smallest rivals what. That means for the housing sector and the buyers and sellers out there coming up next. And bringing down the pourhouse. See what happened when the dynamite went off and the smokestack started to fall. Thats in two minutes. Smart. 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To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. The new cnbc. Com, take a look at your screen. Come up with a new clean look that we hope makes cnbc. Com easier for you to use. Were also rolling out Live Streaming tv. Yes, we are part of the tv everywhere movement now. Check out new cnbc. Com. Sue . Michelle, the Housing Market may be coming back, but there are signs of the smaller Home Builders that are still struggling out there. Take a look at this wall street journal headline. Big builders gobble up rivals starved for cash. Whats the impact on home buyers . Lets speak with the coauthor of todays story in the journal and our real estate correspondent diana olick is back with us as well. Robbie, let me start with you. This is more about the lack of access to capital, correct in. Yeah. What were seeing right now in the Home Building industry is kind of a disparity thats sort of grown as the downturn progressed and even extended into kind of the beginnings of the recovery were seeing and thats if you dont have access to capital markets, particularly the bond markets, its very hard to get a project finance, so forth little guys, were talking about the mom and possible builders in a lot of different towns across the u. S. And a pickup truck and a subdivision they are working on. In some cases its very difficult to get financing to build those projects you note the big builders issued 8. 1 billion worth of bonds last year, but the smaller builders dont typically tap into the bond market. They go to the Regional Banks. Yet weve heard that credit was getting a little bit easier. Doesnt sound like thats the case. There are a few larger regional builders that are privately owned, not on the public market, not traded, that are able to issue public debt, but they are kind of the exceptions. They are sort of big. Sort of the 1,000pound gorillas in the room when it comes to private builders. Most have gone to the Regional Banks in the past, and that well is still fairly dry. I mean, were seeing some signs of it. Saw in the last year and a half saw wells fargo open up a small builder lending unit. Right. But its really more of a trickle than a rush. Diana, whats the impact of those who are looking to buy new construction . How does this affect the market . Well, its not just an access to capital really. Its an access to land, and thats where the home buyer comes in. Theres so much more demand now than the builders ever expected. A lot of the large public builders dumped their land position during the housing crash and they see demand coming in the door and they cant fill it because they simply dont have enough finished lots to provide these buyers with to build homes on so they are buying up the smaller builders to get access to the land that the smaller builders already v. For buyers, having more of the supply among the large public builders, you know, it takes competition out of marketplace. The big public builders have been raising prices dramatically in order to offset the higher costs for, again, land, for labor which is in short supply and for building materials, many of which have been very expensive lately because there simply hasnt been enough supply in the pipeline. Its interesting. I spoke to a small home builder up in northern maryland, and they are telling me that the builders, the private builders up there, they are not 100 sure that the housing recovery is real, at least for them, because they are not getting the kind of buyers that the big public guys are. Robbie, have you heard that as well or no . Well, i mean, theres skepticism. I know if you go further up the supply chain and if you look at some of the things that go into new housing, talking about insulation and lumber and dry wall thats manufactured in the u. S. , there have been some signs that ive heard, you know, people i talked to tell me that the producers of that kind of material are sort of slow to get on board with the whole bull case of the housing recovery, and so its difficult for them to open up a new line and a factory or to hire 15 new employees if they are not sure that, you know, what were seeing is the real deal kind of recovery. Diane makes a good point that down the Line Builders getting more land and more well located land by buying up smaller builders will probably indeed, you know, result in the moderation of pricing a little bit. A lot of guys, its true. Big builders have been holding supply off the market on purpose so they can increase prices, so if they have more supply to put on the market, then that will maybe help sort of curb the rapid rise in prices. And change the dynamic there. Thank you both. Appreciate it very much. To josh lipton now with a quick market flash for us. Josh . Sue, check out x1, 3d printers, and its in the red for a second day, the drop following comments from bb t analysts that said the stock had moved higher on takeout speculation. At least those analysts not convinced that its going to happen in the near term. The stock down hard today, though still up about 112 so far this year. Michelle, back to you. Josh, three, two, one. Good video. Here it comes. Florida power and Light Company imploded four 350foot tall smokes and four 75ton boilers, there it is t goes, at its Port Everglades power plant in ft. Lauderdale this morning. Take a look at this. The impose took 450 pounds of dynamite, and its the largest power plant demolition in florida history. A new power Plant Powered by natural gas will be built in its place. The plan, to have it ready by 2016. Sue . Wow. Well, you know, much of the east coast is gripped in a heat wave, and thats put a lot of utilities under pressure. Temperatures soaring over the 90s but is there any relief ahead . Reporter the heat is certainly on in the northeast, and thats why we have heat advisories in place all the way from just south of boston right on down to new york city. Also heat advisories in washington, d. C. And down in baltimore, now in philadelphia, its an excessive heat warning in place, and this is going to last for the next few days, unfortunately, so todays highs that were looking at. Well see 90s in philly and d. C. And new york city as well, even up in albany, new york, as we get into what it will feel like with a factor of the humidity thrown in there. Boy oh, boy. 97 in philly. Thats what its going to feel like for you. 92 for you up in new york city and 99 degrees is what its going to feel like for you down in washington, d. C. High pressure in control, and that is going to stay. The heat going nowhere soon so tomorrow expect more of it. The break this weekend. Yikes. All right. Check out some of the utility stocks. I mentioned that they are under pressure. Diminjob resources, duke energy, cms, American Electric and dte energy are all on the minus side today. For the year so far though, stocks though are up between 10 to 15 . Michelle . Sue, well get the trading action here from the floor of the nyse with bob pisani. Esther george made comments about the fed which lowered the markets, and i this theres concern about the bank stocks. Had a great little run. They are pulling back as well. Take a look at the major sectors. Right now the important thing is a slightly more downside. Hospital stocks are up, admissions up in the Second Quarter and expect secondquarter earnings and sales up bringing the whole sector up. Health care not the market leader. Semiconductors are the market leader. At a fiveyear high on the stocks, and its very simple, folks. Might see the pc business decline but, of course, world wide sales of smartphones and tablets are soaring, and companies that are involved in doing that are doing really well right now. Elsewhere, if you take a look at the banks, cma was the first Regional Bank that really reported today. Not a big one, the Regional Banks are reporting and comerica reported rather disappointing loan growth and lowered their loan growth expectations. Remember, michelle, one of the reasons were buying banks, one is the hope that Interest Rates are going up and secondly loan growth and comerica basically said loan growth isnt going to be as strong as last year. The balloons they do will make more money because the yield curve is steeper and they can charge more money for those loans. In theory. Most of the banks their loans are tied to libor. Libor is tied to the fed funds rate, and thats the shortterm end of the curve, so its really a fallacy to say just because Interest Rates are going up. The tenyear. If the shortterm rates go up, thats when they will make money. All right. Thank you, bob. The nasdaq, can you get this, a 13year high. Seema mody following the big movers there. Since then weve seen the nasdaq move into negative territory. Tesla shares weighing on the index after goldman put out a bearish note revising its sixmonth price target. However, bright spots to take a look at. Take a look at chinas largest search engine, badu, citi upgraded baidu to neutral writing this acquisition was a positive. One year ago today that marisa mayer was named yahoo ceo. Since then shares of the company have moved up by 70 . Also keep in mind yahoo reports earnings tonight. As we see the stabilization in gold prices, grand gold resources, hit by the selloff in the yellow metal and now leading the nasdaq 100, todays top stock on that indecks. Sue, back to you. Gold prices are closing right now. Bertha coombs is tracking the action for us today down at the nymex. Hi, bertha. A pretty good day for the metals if youre long the metals with the dollar easing back with mr. Bernanke testifying on capitol hill tomorrow. Thats giving a little bit of a tailwind. Gold edging higher for seven of the last eight sessions. George gereaux, a veteran analyst says when you look at the gold curve in euro terms, its in backwardation. The front month so strong at this point and he thinks perhaps we may see Central Bank Buying with the pullback that weve seen. Thats whats underlying some of that physical demand. Back to you, michelle . All right. That brings us to the bond market then, bertha. Rick santelli tracking the action over at the cme. So we seem to have gotten used to the tenyear at 2. 50 here. Yeah, and i think well get used to it at 2. 735, too, as time will tell. Michelle referring to, if you look at a 24hour chart of tens, one thing jumps out at you, consolidation. Hovering above 2. 50 and really consolidating in an unchanged fashion. If you open the chart up to one of the biggest selloffs i can remember to may 1st, one thing should jump out at you. Basically the first leg that have selloff pushing yields up from 1. 62 to basically 2. 60, the first retracement or the last two days of june and the first two days of july when we hovered at 29 hadnt 47 level. Thats the pivotal area right below the market traders will protect tomorrow when ben bernanke talks. Now, if you open the chart up to a 1 index instead of fixed income, 24hour chart shows weakness. Look at month to date it shows a good deal of weakness. Remember, just on a simplified level, less qe so less tightening is going to be perceived as a dollar buster, and at least thats the signal many are getting from the weakness in the dollar index of late. Michelle, back to you. All right. Thank you very much. Rick . Shares of mosaic down and Bally Technologies hitting a 52week high because the slot machinemaker is bifg rival shuffle ent time for 1. 3 billion in cash. Thats to help boost its gaming business. Sue . Taper talk, mr. Bernanke is on the hill tomorrow. New fears about europe, but stocks at record highs, so where are hedge funds putting their money to work in this market . Well talk about that, and gordon gekko is back, as if he ever left. The point, is ladies and gentlemen, that greed for lack of a better word is good. Ah, that was 1987 and a big chunk of wall street still agrees. See how far they would go to turn a buck. Thats coming up next. Aaa. Fffffff. Laclaclac. Hes an actor whos known for his voice. But his accident took that away. Thankfully, hes got aflac. Theyre gonna give him cash to help pay his bills so he can just focus on getting better. Were taking it one day at a time. One day at a time. [ male announcer ] see how the ducks lessons are going at aflac. Com wi 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 no, this is not a flackback. Look at your screens. Tens of thousands of greek workers are on strike again today rallying in front of their parliament. They are protesting the governments plan to fire Public Sector employees in order to help secure more Financial Aid from the European Union and the imf. Remember, they havent really laid off anybody despite years of requests from their european lenders. Over 30,000 demonstrators, including police and teachers, are targeted in the layoffs. Protesters are likely to be out in force again on thursday. Thats when germanys finance minister visits. Remember, many greeks blame germanys demand for austerity for their economic crisis rather than their incredible amounts of spending over the last decade. Sue . So, michelle, how will concerns about greece and europe in particular Impact Investing in the second half, pegs legsly whether it comes to the wealthy investor . We welcome back the global head of citis private bank which oversees more than 270 billion in assets. Good to see you again, david. Good to see you, sue. How do your wealthy investors view the situation in europe . Are they still concerned about it, or do they view it as an opportunity . Well, i think that they are less concerned about it today than they were about six months ago. Certainly since the statements by draghi and by the coordinated activities of the Central Banks around the globe, people are feeling theres more an underpinning of stability. That said, huge tail risks in europe still and you saw some of them in greece, you know, but youre not really seeing activities that would leave us fear balance for the european markets to be a contagious. Weve heard that they are looking forward to desed assets sales in particular and that provide them a little bit of a year into your portfolio. Are you seeing that or not . Seeing exactly the same trend and specifically the fact that the u. S. Is coming out of its economic recovery faster and u. S. Banks are healthier than their european counterparts its putting a lot of pressure on european banks to capitalize an get rid of their troubled assets. How are they preparing at this point for what looks to be a rising rate environment . You know, weve seen the tenyear move up a little bit, and a lot of people think that its headed higher from here. Some are targeting the 3 level. Now, how are they playing the rising rate environment . In several important ways. First of all in, their fixed Income Portfolio they are reducing them in terms of the duration, reducing the absolute amount. Underweight in our portfolio and overweight equities by 6 and have a 16 allocation in hedge funds so people should be taking money off the table in fixed income and reducing their duration and seeking alternative investments. Sue, specifically, if they are going to own fixed income investments, private clients are really looking to own individual bonds, closedend funds and the types of mutual funds that hold variable rate debt like bank loans and others so you have to be very specific and very particular about what you own in the fixed income sector and rising rate environment. What are they looking at in terms of alternative investments you . Mentioned that, but the gold trade has been such a dangerous trade of late. What other alternative investments are being favored right now by the ultra wealthy . So, there really are three different kinds. In the hedge fund space were seeing a decoupling of correlations between equity, fixed income and the hedge funds. Think thats very good. We like eventdriven strategies and macro and cta and long short equities. In terms of real estate, we like Central New York and other major cities around the globe where we think theres a fundamental demographic, and in terms of private equity, like the nonperforming loans in europe and distressed opportunities in corporations in europe and in the United States. We think that there should be a trade by investors, especially the wealthy ones going from less liquid to more liquid markets. Hang with me for one second. Well go to josh lipton for a market flash. Watching Goldman Sachs here. Mike mayo of clsa has lowered his rating on goldman to buy from outperform saying even if his estimates and target price arent enough to justify the upside needed for a boy rating, down about 1. 7 . Sue, back to you. David, would you get against Goldman Sachs at this point . I wouldnt. I think they like the Financial Sector in the United States and dont see the valuations of banks being particularly expensive, and we think they will have the opportunity to raise dividends and do increased buybacks over time. David, things a million. Good to see you again. See you again next month. You bet. Michelle, down to you. Almost five years on from the financial crisis, be a the culture of greed on wall street still persists. Im ed shock. Alarming new data you need to see. Plus, Mexican Police capturing an alleged major drug lord. What it means for americas war on drugs . Former u. S. Drug czar Barry Mccaffrey joins us next. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. [ male announcer ] you wait all year for summer. This summer was definitely worth the wait. Summers best event from cadillac. Let summer try and pass you by. Lease this cadillac srx for around 369 per month or purchase for 0 apr for 60 months. Come in now for the best offers of the model year. 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. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Coming up on street signs at the top of this hour, as j j is hitting a record high. Weve got cramer and herb. They are dropping by the set today, and they will debate whether or not its a good idea to buy what you know, the products that you use and that you love every single day. Also, is there just too many blaming on the weather and gas prices this earnings season a website for finding your love match or just for hooking up. We have the cofounder and ceo of tinder on our show. All that and much, muff more coming up on street signs. Now back to power lunch. Thanks, mandy. Miguel morales was leader, feared leader of the zetas drug cartel. He had a 5 million bounty on his head and is considered one of the most dangerous criminals in the world. What will the effect be . Answers from former drug czar and general Barry Mccaffrey. Thanks, michelle. Tell me about this individual. You became familiar with him while were you drug czar, correct . He was a pretty low level teenage thug when he began his criminal career. As you know, hes eventually ended up as the head of the zeta, once of the most gruesome organizations on the face of the earth and accused of murdering hundreds of people. A 5 million reward on our side of the border on the head. Operating in guatemala and the United States with murder squads, laundering money, smuggling drugs. He is a major threat to both mexico and the United States. Do you thinks his arrest changes anything, or does Somebody Just step in and take his place . I think in the short run it will probably be a tremendous vote of confidence surely for the mexican marine corps which picked him up and for the neato government who has been extremely uncooperative with the u. S. Government over these Law Enforcement operations, so i think its good news. Probably in the short run the cineloa cartel will try to jump in and grab market space from the zetas. You mentioned the new president who just took it over last summer and hes made it clear that hes not nearly as interested in prosecuting the drug war who really made it part of his campaign and president ial platform. He seems far more interested in changing the economy there rather than prosecuting the drug war. Would that explain why theres a lot less cooperation . When they got into office they were horrified between the u. S. And mexican authorities. They wanted to go back to absolutely controlling it and having one point contact. Cooperation has been almost nonexistent, except at the lowest levels. Its worrisome. They have stopped talking about the war, but theres still massive amounts of homicide around drug Cartel Activity in mexico so its a very troubling situation. Yeah, but i can tell you from firsthand experience being in mexico, a lot of very senior mexicans think that the drug problem is our problem and that the violence comes because we havent legalized drugs. They think the answer is that we should legalize drugs and then a lot of this activity goes away. Well, of course, thats errant nonsense. The real struggle in mexico isnt over drugs or no drugs but the rule of law. How do you form institutions, National Police forces that are capable of integrity and competence and enforcing the law . And up until now only the mexican army and marine corps have been responsive to democratic authorities, so mexico has been terrorize the, as you know, as well as anybody, so probably some 70,000 murdered, but it wont go away simply by not talking about it, and i think pena neato has said were only going to talk about the economy, and the Obama Administration has really come to an agreement that they wont mention it either. So what do you think should happen instead . Well, i think our future is wrapped up with that of mexico. They are vitally important to our culture and to our economy. We have to have intimaeimate cooperation with them and that means resources. Were spending 10 million a month in afghanistan. In mexico the entire program to support them was 1. 3 billion in three years, so theres been ined a quart attention and energy on the part of the United States to stay close to mexico. General mccaffrey, thank you so much for joining us. We really appreciate it. Good to be with you, michelle. Sue . Well, michelle, almost five years after the financial crisis the culture of greed on wall street apparently is still thriving. Some shocking details of a new study. That straight ahead. Plus, remember him . Disgraced former imf chief Dominique Strausskahn . Hes found a new job in, russia. Its all in the power rundown coming up next. Y womens 50 is a complete multivitamin designed for Womens Health concerns as we age. It has 7 antioxidants to support cell health. One a day 50 . See, i knew testosterone could affect sex drive, but not energy or even my mood. 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Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. In a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . Its power rundown time. The gang is all here, michelle and bob. All right, guys, first up, this new study. Would you engage in Insider Trading . Say you could make a cool 10 million and get away with it . The new survey is asking wall streeters that very question. 24 of respondents are saying yes, they would. I guess we shouldnt be shocked, michelle. I think probably the other 76 are lying, sue. Right. Look, im not that cynical actually, but, you know, i think Insider Trading is an overpondered thought. Ive long thought it should be legal. Milton freedman believed the same thing and if it were legal the profits would be diminished dramatically, not really the problem people think it is. Im shocked its only 24 , agree with mish shell. First off, im not sure that this is worse than it would have been 30 years ago had a survey been taken. Im not sure if its any worse or better than other industries. Like accountants, would they have done something similar to that and not sure its worse than the student population . 60 of College Students cheat at least once on an exam every year and i saw a survey, one in four admitted to cheating on questionnaires about cheating. They lied on the questionnaires about the cheating, one in four, so we know its underreported. No one wants to admit they are a cheater. Put that out on yahoo and the yahoo finance. Com question today is wall street too greed . 28 saying yes. More regulation is needed. Oh, please. 4 say no, wall street is a better place now. Oh, please. And 68 say wall street has always been long on greed and short on ethics. Again, i want to compare that to other industries, and, listen, maybe the whole country is long on greed and short on ethics. We will see. You by want to see the rest of them. Cocacolas fco blaming something rather unusual for its falling profits. It was the weather. Really . I thought that was the retailers, the retailers always claim weather but the soft drink guys. What do you think . Listen, volumes were flat in brazil. Was there a monsoon in brazil . China was flat. Always hot in brazil as well. I dont think so. Look, maybe a little bit of weather, but consumer demand was slipping worldwide, and ill tell you something interesting. Health issues, too. The sparkling coles wruch 6 on the nonsparkling beverage side. There may be health issues. But the gentleman that you interviewed earlier says that weather does affect soda sales and soft drink sales. He did say that, but at the same time he thought it was probably more a bigger issue about people being worried about obesity and thats what diet coke and cookie zero is for. Thats what you said. I think youre right. Lets most on to Dominique Strausskahn. Remember this guy . He was the former imf chief, career riddled with sex scandals. Well, he has a rather new gig. This time its in russia. Hes now sitting on the board. Russian Regional Development bank. What do you think, michelle . He and snowden should get together. I dont know if they are hanging out in russia together. Russia is a popular place. At the airport the lounge. Youre sought after and warranted. I guess it makes sense. Look, a lot of people when it came to Financial Issues had a lot of respect for Dominique Strausskahn even though hes a socialist so it makes sense for him to end up in russia. I think he and putin are the same height. Decided to juxtapose a couple of things, written on the statute liberty, give me your tired, your poor, your huddled masses. This one we gave you up, give me your wealthy, corrupt and wayward masses. Thats what were dealing with. I dont think what the guy did was honorable in other sense of the world. Hes lobsly got a high level of expertise in this and other issues and i think the guy is entitled to make a living. All righty. Well leave it at that. To josh lipton now for a market flash. Hit a new five and a half year high and profit up 36 this year. Sue, back to you. Lucky 13 for the nasdaq hitting multiyear highs. Michelle will have the biggest winners when we come back on power. Thats next. My mantra . Always go the extra mile. To treat my low testosterone, i did my research. My doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. What are you guys doing . Having some fiber with new phillips fiber good gummies. Theyre fruity delicious just two gummies have 4 grams of fiber to help support regularity i want some. [ woman ] hop on over [ marge ] fiber the fun way, from phillips. This is mustsee tv. Tune in tomorrow morning at 8 25 a. M. Eastern time. Treasury secretary jack lew kicks off our delivering alpha conference. Look for details for his road map for the financial regulatory framework, plus he sits down with Steve Liesman for an exclusive oneonone interview. Thats live on squawk box at 8 25 a. M. Eastern time. Going to be a great day, michelle. Absolutely is. Lets show you whats going on with the markets. The dow is lower by 45 and the s p 500 lower by 8. The nasdaq is lower by nearly 11. Remember, ben bernanke testifies tomorrow. That does it for us on mother ri on power lunch. And now street signs. Big banks and health care are helping us out while coke leaves us flat. Jim cramer and Herb Greenberg are here to help you make sense of it all. Coke, a big part of the blame game these days k. It really be too hot or too cold to drink soda . Were going to find out ifnist usual suspects weather, gas, Interest Rates are valid as excuses. Plus, harsh justice in china as they execute their own version of bernie madoff, a live report from beijing, and do you want the lust maybe but the the