First to sue at the nyse. I have a funny feeling thats going to get messy, ty. Right now though lets focus on the markets, and despite the fact that the markets do remain near record highs the underlying economy is constantly on the mind of traders down here and investors across the country. American companies and, of course, the u. S. Government also concerned with unemployment still at 7. 6 . What are the forecasts for growth Going Forward . Our senior economics reporter Steve Liesman has the latest cnbc fed survey. Steve, over to you. Sue, thanks, not very good is the forecast for this year. Strengthening next year. I want to show you whats happened to the 2013 forecast. When we first started asking about 2013 back in january 2012, 2. 6 came steadily down to 1. 9 by year end and then it went back up above 2. This time around giving up the ghost on 2 this year, bringing it down from 2. 1 to 1. 9 , but what youll see when you look at it at the next year is that belief in a rebound in 2014 has continued to be strong. This is the 2014 forecast. It was 2. 6. It remains 2. 5, so going from 1. 9 to 2. 5 next year is the forecast. Recession probability, we ask this every month. Every time we do the survey. It has ticked back up just a bit from 15. 2, the percentage chance judged by our respondents, 51 respondents of a recession in the next 12 months. 15. 2 to 16. 2, but you can see its been much higher, 28. 5, 36. 1. Been higher. 16. 2, not a particularly worrisome signch the biggest threat to economy remains tax and regulatory policy, slow job growth ticking up a bit and a new entry because we asked for the first time higher Interest Rates, 10 . What you cant see here, we dont have a graphic of it, is that the threat of europe has continued to come down as a major concern. However, the writeins still concerned about weak world growth, not just europe but also emerging markets. Keeps coming up. Too little monetary stimulus measures by too many folks and then washington politics a major issue. I want to show you we asked people about the coming debt ceiling debate. Would it be more contentious, less contentious or about the same that we just had . 19 said more and 44 said about the same. Im not sure i really like that answer. 35 say it will be less contentious, and most people believe, tieier, that it will not be default, 0 probability chance of default by the United States in the coming debt ceiling debate. What do you think it will be, less contentious, about the same or more contentious . I think it will be less contentious. I dont think the Republican Party doesnt see the politics working their way on this. I dont think it works out in terms of helping them increase their decrease spending in the United States either. And if you were to answer the question on what the biggest impediments are to the economy, tax and regulatory policy was the plurality here. What would you say here . Weak world growth would be the number one thing that i would bring up. If the world were firing on all cylinders things like the 30 tax wouldnt matter. Steve liesman, thanks very much. My pleasure. Lets go to josh lipton. Fertilizers stocks plunging somewhere today. Theres a joke in there somewhere. Were watching the fertilizer names closely, especially those in the potash business getting hit hard. Potash corporation which recently cut its forecast for the year deep in the red. Others on our radar, including intrepid and mosaic and all falling in todays session. The reason here is global potash prices expected to drop 25 , this after reports that a russian potash producer is dismantling one of the Worlds Largest potash partnerships by pulling out of belarus. That might lead to a global drop of the fertilizer ingredient and Cantor Fitzgerald tells husband clients that just blocked the earnings. Sue, back to you. Wow, some really big percentage hits there today, josh. Thank you. Apple is another big stock to watch. Today its on the upside. The tech giant having its best month since february of 2012. Its trading above the 450 mark for the First Time Since early june. Right now its at 456. 15. Seema mody is following that story for us over at nasdaq. Hi, seema . Does seem like apple shares are in california back mode posting its best monthly performance. Since february 2012 up 15 . There are three factors helping shares of apple. First, stronger than expected iphone sales in the third quarter. That was a big surprise. Second, it continues to buy its own stock, 16 billion last quarter which, of course, is encouraging to shareholders and the stock is still trading at a percentage of the benchmark, and its hard to find stocks inexpensive. Shares of apple trading above 450 a share for the first time of june 5th, a key resistance level that market technologieses watch go forward. The product refresh could be a cat list for the stock and apples products will be refreshed within the next two to nine months so thats something to watch. Sue . Ill take it, seema, thanks very much. Shares of coach plummeting. The retailer earning 39 cents a share and north american sales were weaker and the Company Announced the departures of a couple of executives. The stock down around 10 over the past three month, as you see right there and moving sharply lower today. A couple of big drugmakers out with earnings. Merck earning 84 cents a share beating estimates by a penny and its profits cut in half from a year ago as it lost Market Exclusivity for its allergy drug singular. Up nearly 4 over the past three months there. You see a little less than that actually after todays movement. Pfizer earnings 56 . The share also beating forecasts by a penny, reaffirming the yearly financial outlook, up 3 over the last three months or thereabouts. Up 22 today. Sue . A big economic report on the health of housing in america and new signs of strength in the recovery. Home prices posting their biggest nearly gain in 2006. Served over 12 and the u. S. Case schiller index dropping 2. 5 from april to may, nearly matching the previous monthly gain which was the highest on record. Back over to josh lipton for a quick market flash. Were watching facebook here, near session highs and closing in closely on that 38 offering price. Facebook today unveiling a new mobile Games Initiative where it will back a handful of gaming outfits. Thats in order to boost distribution across the networks. Since its Earnings Report last wednesday, facebook now up some 40 . Tyler, back to you. Rupert murdoch and wendy dung are divorcing, and now wendy has just made a very big move. She wants more than the 20 million the prenup. Can she get it . Shes got a new lawyer on her side. Go vote in the ya. Com if finance poll and tell us where you stand on prenups. Reality today goes to a real life federalhouse. Andrea. Reporter lots of chaos at the courthouse with some real housewives facing real jail time. Well have that story coming right up on power lunch in just two minutes. Norfolk southern whats your function . Hooking up the country helping business run build were investing big to keep our country in the lead. Load we keep moving to deliver what you need. And that means growth, lots of cargo going all around the globe. Cars and parts, fuel and steel, peas and rice, hey thats nice Norfolk Southern whats your function . Helping this big country move ahead as one Norfolk Southern hows that function . This is a developing story that were watching today. Two stars of bravos real housewives of new jersey facing the real possibility of jail time following a slew of charges on tax fraud. Andrea day is live at the courthouse in newark, new jersey with the details. And andrea, over to you. Reporter this is reality that they didnt need. That couple youre talking about facing 50 years behind bars if convicted on all charges. Just take a look at this scene we shot earlier today. Whoa, whoa, whoa. s, come here. Reporter all right. Thats joe giudice shoving the cameras out of the here, storming into the camera earlier this morning. A total mob scene pushing and shoving like a scene straight out of their hit show. This is a 39count indictment with apparently a trail of evidence. Serious business. Heres what teresas attorney had to say. Shes been a huge success on the show, has millions of fans, and were hoping that all the good qualities that led to her becoming a Television Celebrity and attracting as many fans as she has will continue to resonate through this case. There are many, many, many positive dimensions to Teresa Giudice and well bring them all out reporter reality show star is accused of pumping up their income to get loans before they all made it big. Teresa even allegedly submitting fake w2s and pay stubs and prosecutors say they hid how well they were doing, lying to the Bankruptcy Court and failing to file tax returns. Lots of issues to resolve. Heres joes attorney now. I worry about everything. We try to prevent any prejudice from seeping in, but all i can tell you is henry clingman is an excellent lawyer. We have a good team and well do the best we can to avoid any prejudice so they can get what they are entitled to and thats a fair trial with unbiased jurors. Reporter all right. Now this is just a first in a string of many Court Appearances to come. The couple now released on 500,000 bond each. They are due back in court right here in new jersey august 14th. Andrea day reporting for us. Meanwhile, Rupert MurdochsDivorce Trial could take a new turn and theres a lot on the line for both sides. Our wealth editor robert frank here with the latest. Whats going on. Reporter bill zabel has been hired. Windys side believes this will be an amicable divorce. Zabel likes to do things. They did have a prenup leaving her in under 20 million and murdochs wealth estimated at 11 billion. The first area of negotiation is child support. They have two young daughters, grace and chloe and the second is joint property. That could include their big apartment in new york valued at over 90 million and properties in california, home in beijing, property in london, also their 180foot yacht and theres the big issue of the trust. That, of course, the trust that controls news corp. Grace and chloe have an economic interest in that but not voting stake. They will look at whether that interest in the trust is fully protected. So far, tyler, the divorce has been amicable. Well see how long it lasts. So their 20 million is what we think is in the prenup. That would be a cash payment to her . Obvious lut a lly a lot of negotiating room. A lot of room for negotiation. Were going to take a quick break before we bring in peter lapman. I got you. Were going to eamon javers now for some breaking news. Hi, tyler, starting to get in some verdicts here in the Bradley Manning case. You remember he is the young military private who was accused of leaking documents and thousands and thousands of documents to wikileaks. Were now starting to get some of the verdicts in his trial coming in over the wires. On charge one, the most serious charge of aiding the enemy, hes been found not guilty. However, on the two other charges he was facing, charge number two, violation of the uniform code of military justice, article 134, hes been found guilty. Also been found guilty on charge number three which is article 92, failure to obey a lawful order or regulation so on the most serious charge here Bradley Manning found not guilty. Nonetheless, guilty on some of these lesser charges here, so thats a situation as we get more detail. Tyler, well bring it right to you. Thank you very much. Eamon javers reporting for us. Robert frank back with me. Peter lapman joins us with the New York Times and hes been covering the murdoch divorce. Peter, what can you tell us about where you think this might go now that there is a new legal eagle on the side of wendy . Yeah. Robert laid it out pretty well for you. I think whats happening here is wendys original lawyer pam sloan helped to write the prenuptial with rupert and became friendly with wendy and rupert over the years and decided that she needed independent counsel separate from her so she interviewed about eight different lawyers, some of the most prominent members of the divorce bar and ultimately settled on bill zabel with lots of experience in highprofile divorces. How nasty is this likely to get, and, of course, there was controversy some time ago about the point that robert made and that is how felly represented in the Murdoch Family trusts are the children of rupert and wendy, and is that likely to be a negotiating point as this case moves forward . Hard to say, but theres a fascinating back story n. 2006 murdoch was giving an interview on charlie rose and mentioned the fact that his two girls with Wendi Murdoch had the same Economic Trust but not the same voting interest as the four kids from two previous marriages and she didnt know this and this caused a bit of a kerfuffle in the house hold. Still a very open question and bill zabel is one of the nations experts in trust law and hell examine the trust for the validity of what they have done previously. How old are the children of wendi and rupert . Might not be in a position where they should be able to vote . You know, and this is my question for peter. The question is zabel is a trust expert. They have the other properties but the money is in the trust. Could be billions of dollars and i wonder, you know, peter, what do you think the chink in the armor might be . Thats the what zabel is so good finding a chink. What do you think they may be looking for to get more out of this divorce . I think you hit the nail on the head. Tons of legal issues surrounding this. Looking to see if theres any aspects of this trust that the girls or wendi could penetrate and improve their standing in the separation. You mentioned 100 million in real estate. This is, after all, all about money so in some ways it could be settled quickly but on the other hand its all about money so well see where it goes. And they always start out saying it will be amicable and it never ends up that way. Exactly. Robert, peter, thank you very much. Lets take you back to our poll question. We asked what is your take on prenups. Prenups a smart idea, 37 say yes. Smart idea. 10 say no, id never sign one. I guess those are people who have never had to consider t. Prenups should not allow for wiggle room, say 48 of you and im torn say 5 of you. Sue . Very interesting, to say the least. Another big story that were following today is jpmorgan chase. They agreed to pay 410 million in fines to the federal Energy Regulatory commission. Jpm is accused of manipulating electricity markets in california and michigan. The stock is last traded on the downside by less than half a percent, but its up 26 year to date. Kate kelly is on the case for us today. Hi, kate. Reporter hey, sue, thanks so much. Youre right. Jpmorgan today settled charges with the federal Energy Regulatory commission to the tune of more than 400 million. The charges that they allegedly manipulated Energy Markets in recent years in two particular spots of the country, california and parts of the midwest. This news comes days after jpmorgan announced plans to sell the jast majority of its physical commodities business amid regulatory concerns that really might have forced their hand anyway and those are coming in september. The action comes after at least a dozen actions in recent years and is the largest in the agencys enforcement history. An even larger settlement over alleged power manipulation with Barclays Bank could be in the offing for nearly 500 million. Its been proposed, but barclays right now is fighting it. In an interview in the first of the day, the chairman told me that this is something of a minor matter which surprised me. He said if you compare this to enron 12 years ago this is really a fraction of the level of activity that we were seeing in the 2000s, and obviously that would be a Welcome Change n. 2005 congress authorized ferc to kind of beef up its enforcement staff and try to go offer manipulation on a more vigorous basis, and in the last couple of years they brought more than a dozen case is, this being the latest. For jpmorgan, this is the latest in a string of illfated moves. They took on this Energy Business through the acquisition of bear stearns in 2008 and added to it in 2010 but acquiring rbs sempra for 1. 7 billion but commodities have been highly volatile, tyler in, recent years and something they have sort of struggled, and now it looks like they will divest themselves with all of the part of the commodities business. Kate, thanks very much. Moving along, its mustwatch cnbc tonight. The premiere of the profit tonight at 10 00 eastern time. You do not want to miss it. There is its start, Marcus Lamonis who will do whatever it takes to fix a failing business. He can smile. He will smile, i promise you. He will. Hell also get his take on the health of the American Economy in business right now. Power will be back in two minutes. The new guy is loaded with protein ill believe it when i [ both ] oooooh. [ female announcer ] as you get older, protein is an important part of staying active and strong. Ensure high protein. Fifty percent of your daily value of protein. Low fat and five grams of sugars. [ major nutrition ] ensure nutrition in charge [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. Welcome back to power lunch. Im josh lipton. Were watching Western Union which is marching hour in todays trade. The Company Operates the biggest Money Transfer business in the world. Reported and beat expectations also affirmed its fullyear financial outlook, the ceo saying the strategy of the company laid out at the beginning of the year is working. That strategy involves larger price cuts to accelerate transaction growth and set the stage for earnings and Revenue Growth in 2014. That stock now up some 33 this year. Tyler, back to you. Josh, thank you very much. Tonight on cnbc, the premiere of the profit. This is Marcus Lamonis. Its his job to kiev into a business and fix it. Well talk to you in just a minute but, first, watch this. You and i have a difference in philosophy on appraisal. I like the customer with me during the appraisal and i like the customer to know what im doing is fair. If i take them around the car and point out the defects, the imperfections, you can get this replace, costs 300, 400 and when i give them a number lower than when they thought it would be, their expectations are more in line. I would rather ask the questions with them. Make sense . I like that. You, too . I would agree. Marcus, the premise of the program is you go into a business that needs help, and you try and fix it. That is from episode one, i take it tonight. It is. Who are those guys . What was their problem and what did you try to do for them . The premise is i put up their 2 million of my own money and i go into Small Businesses, and this is a company here in new york city. Its located on west 55th called car cash, a place where you sell your car. You cant buy a car, go in and get a quick appraisal. They like it, they give you a check. A Family Business started in 77. The two gentlemen you just saw, the father passed away two years ago unexpectedly and are now dealing with a Family Business with no cash and know how and a great concept. And youre willing under certain circumstances to put some of your 2 million, your own private personal money to work. Let me as youve looked at businesses that youve either run or tried to fix, what is it the one thing that most entrepreneurs do worst . Well, when i set aside the drama that always exists in business, the thing im finding as a theme is people dont know their numbers. When you talk to them about sales or margin or traffic or the phone calls, they just dont understand it, and i always tell them if you dont know your numbers, you dont know the business. Dont keep the data or dont understand it if they do have the data. Both. Well all be watching tonight. Congratulations on the profit. It premiers tonight at 10 00 on both the east and west coasts only on cnbc. Going to be fun. Marcus will stay with us and hell take part in an interview of a Top White House economic adviser about the state of business in america. Good luck with that, marcus. That will be in just a few minutes. Yeah, looking forward to that very much. I bet he knows his numbers so well see how that goes. Lets get the trading action here on the floor. Were down 26 on the Dow Jones Industrial average. Bob pisani is here at post nine. What happened to our ral . We started off in positive territory. Thats your territory. Slowly drooping down here. Take a look at how it goes. The industrial average, you can see how it goes. The commodity space, take a look at the major sectors. Great earnings from Industrial Companies and thats why the industrials are leading and tech is holding up. Thats a Market Leader and materials and energies weighing on things. Its a relatively small part of the s p 500, but, still, the numbers there are just kind of miserable. Industrials look great. Pitneybowes had better than expected and masco and rockwell and cummins. Theres why the industrials are moving to the upside. Pleased to see that. Auto parts did well, Goodyear Tire had a good report. A fiveyear high for Goodyear Tire and look at what its doing dragging all the other companies. You heard about the mess with Potash Companies today. Commodities, a much bigger problem, not the fact that the dollar is stronger. At near multiyear lows in nickel, lumium and copper all based on concerns of slowing growth in china and you can see the effect on stocks and commodity stocks, iron ores, dont get any tracks at all, the cliffs, bhp billiton, rio tinto, stimulating or not stimulating, tightening, very difficult to figure out what the chinese authorities have in mind. And thats why were seeing pressure in copper and the like. Thanks, bob. Okay. Gold prices under pressure, not a lot but Bertha Coombs is tracking the pressure. Reporter gold prices look like they will close near the highs of the outcry section of the nymex and investors cautious and head up the fed announcement tomorrow afternoon. First reading of secondquarter gdp. Lots of Macro Economic data on tap not to mention the jobs report on friday, and weve got data coming out of friday as well so a lot of cautions on that front. Gold is on track for its best monthly gain since the beginning of 2012. Bob mentioned the industrial metals, base metals. Thats where the pressure is with all the concerns of the potential economic slowdown here and in china. Copper, the worst performer. Just flat so far for the month of july. Sue . Thank you very much, bertha. To the nasdaq up down. Seema mody is following the movers over there for us. Seema . Facebook shares are on the move trading at its highest level since it went public, closing in on its ipo price of 38 a share. Today all things reporting, facebook announced a new mobile Gaming Initiative where it will back a handful of gaming outfits to boost distribution across its network. That seems to be getting the street excited. Also well get a better read on social media when linked in and yelp report later this week. Vertex is reporting upbeat results. Strong sales of its Cystic Fibrosis drug and amgen will report earnings tonight. Overall though a strong day for tech. Not just apple which is at session highs. Google, microsoft, cisco, ebay posting solid gains fueling the nasdaq. The composite now up 20 year to date and outperforming the dow and s p 500. Sue . Thank you very much, seema. To the Interest Rate scenario of the day and thats rick santellis part of the world out in chicago. Hes tracking the action for us. Hey, ricky. The only part of the world, the fixed income markets. If you look at the intraday of tenyear note rates, can you see that rates didnt start to move up to a little after the 10 00 eastern number and Consumer Confidence might have downgraded a bit, but still a very lofty levels, so maybe that was just as they say down here in a hurdle. You have a number, theres a hurdle. Once the hurdle is down, the markets get back to business but the boound has a different pattern. Took a different route and thats notable especially when our fed meeting and ecb and Employment Data in both the eurozone and the u. S. Lets switch gears. The euro versus the dollar started to weaken up long after the pound which was much weaker so that was the first issue. Then we saw the dollar versus the yen. The dollar started to gain steam so the Foreign Exchange markets and specifically the dollar started to improve much earlier than when rates started to move higher. Whats the moral of this story . I think on a week where the ecb and fed are meeting, the notion of who is in better shape relatively speaking will find some real religion in the Foreign Exchange markets. Tyler, back to you. All right, rick, thank you very much. President obama gearing up for a major speech on the economy. In about 30 minutes time hes expected to offer republicans a grand bargain for middle class jobs involving Corporate Tax cuts. We will speak with one of the president s top economic advisers about whether this new offer will work or not. That and more when we return on power lunch at 1 33 eastern. 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Com trading tdd 18003452550 to open an account. Tdd 18003452550 and learn how you can earn up to 300 commissionfree tdd 18003452550 online trades for six months with qualifying net deposits. Tdd 18003452550 our trading specialists are waiting to help you get started. Tdd 18003452550 so call now. Tdd 18003452550. Welcome back to power lunch. Im josh lipton. Have a look at spot business. The news here marcada Capital Management unveiling a 6. 6 stake saying the shares are undervalued and will discuss options. The discussions may include Strategic Alternatives to the stock. Off session highs and still up 4 right now. Sue, back to you. Josh, thank you. President obama, as we told you, is touring an amazon. Com facility in chattanooga, tennessee. Amazon just this week announcing its hiring more than 7,000 people. The president will speak very soon about 2 00 p. M. Eastern time. Before the president s address we want to bring in Gene Sperling director of the economic national council. Good to see you. Good to see you, sue. Well have marcus and eamon with us in just a few minutes. I want to start with one of the four posts, if you will, of the president s address this afternoon and thats simplifying the tax code for businesses to create jobs and to create economic growth. The reaction to that, as you might expect on the hill, has been somewhat mixed although i would say its getting more favorable reviews than weve seen some of the president s proposals have in the past. But the one thing that seems to be coming up is that although everybody is in favor of reforming the tax code, most of the republicans that are being quoted on this also want to see reform in entitlements. Is that on the table as well or not . You know, absolutely. The president has put forward a grand bargain offer on longterm deficit reduction. He made that offer to speaker boehner. Thats still on the table, and were still having some conversations with republicans about that, that would mean longterm entitlement reform and some more revenue on the individual side as well as part of that package. But we also know that weve been stuck on that for a while so the president is not giving up on that grand bargain. What hes saying is that because were working on that doesnt mean we should put on pause every other opportunity to have other grand bargains that can help create jobs, help the middle class get growth growing. What he recognized is that while we have almost always talked about Corporate Tax reform as being part of the larger fiscal package, that the president will be willing to break that separately and push that appropria proposal forward to reduce expenditures and loopholes and lower rates to 28 or 25 for manufacturing, but hes saying it should be part of a consensus package in investment and growth and other key areas like infrastructure, like strengthening Community College skill training, like manufacturing innovation institute. Okay. These are all strong proposa proposals. Theres a lot of support from democratic and republican Business Leaders for them, and its the time of grand bargain that i think, you know, should get support from both parties, but most important of all its a good grand bargain for middle class jobs, and thats what we should be focused on. Speaking of jobs, i know that youre a very busy guy with a very big job, but i know youll be watching the profit tonight at 10 00 p. M. Eastern time here. Marcus lemonis is the star and goes in to try to fix Small Businesses, a lot of experience, the chairman and ceo of camping word and as a man running a business wants to weigh in on this. Marcus, you said earlier one. Things you think Everybody Needs to know is the numbers, and in terms of the president s economic package were talking about a lot of numbers, right . We are talking about a lot of numbers, and as an investor and advocate for Small Business, gene, id like to know what is the white house planning on doing to focus on Small Businesses as part of this multistep plan . Well, thanks for asking. What we put out today, we did put out one important detail in our Business Tax Reform plan. Was that as part of our Business Tax Reform plan we would make a call for 1 million in full expensing permanently for all Small Businesses so for those who know the tax code, thats section 179, wed be putting it at its highest level, 1 million, and what that mean theres 100 expensing for any Small Business on their first 1 million of investment. Thats an important simpli simplificati simplification, an important tax incentive for investment and a very good way to make sure Small Businesses are getting additional incentives to grow and create jobs here as part of this Business Tax Reform proposal that the president is proposing together with other important investments like manufacturing, Community College skills and other things that we also think would be good for Small Businesses. Eamon javers, weigh in, please. Keep, its eamon javers here at cnbc in new jersey today, not in washington but a question for you on this. The fact sheet you put out this morning seems to suggest youre expecting a lot of onetime tax revenue to come in as a result of doing tax reform at the point at which you initiate the switch. Where does that onetime revenue actually come from though . Its a good question and, look, our goal today was not to propose our specific transition fee, but we are recognizing a reality that all people who are experts in Corporate Tax reform understand which is that in any country, in any proposal in the u. S. , there is always a certain amount of one time or accelerated savings that. Can come from reforming your depreciation schedules. It could come from having a onetime fee on accumulated earnings overseas. And explain that, thats a key one that the think the market doesnt quite understand today. Theres been some confusion on this point. Right. What would you do with the Cash Companies have overseas . Would you tax, it have a fee on it . Explain how that works. One that people are focused on today. Those are important questions, and were not trying to handicap how Corporate Tax reform would work out and those are important issues. All were saying, eamon, is that is that all Corporate Tax reform has a certain amount of accelerated or onetime revenue and when you do a Corporate Tax reform, you can use that onetime revenue to support some onetime things like infrastructure or upgrading Community Colleges and that that would not affect the ability for the Corporate Tax reform to be revenue neutral in the long term because you wouldnt want to use onetime revenue to try to lower rates when its because it wouldnt be able to do that in a deficit neutral way. Right. Gene, thank you very much. We look forward to the president s address at 2 00 p. M. Eastern type. Thanks for spending time with us. Thanks for having us. Appreciate it. Once again, the profit premiering tonight at 10 00 p. M. , both east and west coast only on cnbc. Its a terrific show. I know youll enjoy t. Ty, up to you. Sue, thank you very much. The smallest of detroits big three automakers out with. Chrysler revving up some profits. Jeeps and more. Well get reaction from the always valuable editor bob lutz and more on the detroits bankruptcy. Will it hurt the carmaker . That and more when we come back. Hi, bob. Well be right with you. [ 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 allnew cadillac ats for around 299 per month or purchase for 0 apr for 60 months. Come in now for the best offers of the model year. And i have a massive heart attack right in my driveway. The doctor put me on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. Go talk to your doctor. Youre not indestructible anymore. Thats not much, you think. Except its 2 every year. Go to etrade and find out how much our advice and guidance costs. Spoiler alert its low. Its guidance on your terms, not ours. Etrade. Less for us. More for you. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Coming up on street signs, a very cool show. Weve got a guest host, paul hickee so all hour long were digging not only into the overall market but in the names, are they undervalued, overvalued, fairly valued or, d, all of the above . Thats the entire hour and well dig into housing a little more, the caseshiller index what, areas are hot and what areas are not . A full stocks hour. A lot of names and a lot of stock picks and ideas for you, plus, somebody, either me or paul will get shirtless. Thats not true. Power lunch, back to you. Stick with the stock picks. Yeah. Well be watching nonetheless. Chrysler earnings up. Profit rising 16 from a year ago. Despite paying a heavy price for a string of recent recalls. Chrysler says it expects Even Stronger numbers during the second half of the year but fullyear earnings still expected to fall short of some earlier expectations. What does this mean for chryslers future, the earnings and other things going on . Is there aninio in the future. One of the most interesting guys in detroit this side of miguel cabrera. Bob, good to have you with us. Good to be here. Lets start with chrysler. That is company that has returned to health as General Motors has apparently. Is now the ripe moment for them to ipo is . Well, you know, thats conjecture, but Sergio Marconi has stated he would like to buy the rest of chrysler which i think is necessary because fiat would have a tough time surviving without a strong u. S. Partner. The results are good. The product line is Getting Better and better. Its extremely well accepted. They have some strong brands, the expectations are for further improvement even though they have moderated the outlook maybe in order to exceed expectations but now certainly would not be a bad time. Lets transition to talk a little bit about detroit and its recent bankruptcy. Obviously a sad day for that great city and you as a resident or onetime resident of it at the very least, but could the bankruptcy turn around detroit the same bankrupty files completely different. The same way the chrysler bankruptcy helped them to get back into a stronger position. I think its the stein theorem that says when things cant go on it stopped. Detroit had been ruled by 50 years for a democratic government, large i inept and or corrupt working in collusion with the Public Service unions, pensions that couldnt be afforded, salaries that couldnt be afforded, a huge bloated administrative apparatus so you have a city badly run with no tax base, but, on the other hand, the automobile the Automobile Company and all of industry in detroit is doing great, so, yes, i think this is finally pulling the plug on a bad, bad, bad situation, and its going its going to be the beginning of a renaissance for detroit. Now, a lot of people are going to get get their ox gored in that process, but i guess that always happens in chapter 6, but in bankruptcy that always happens. Let come back to the state of the american automakers. A lot of people noticed that very nice rating that the chevy impala just got from consumer reports, getting a near perfect sort of best sedan rating. American cars, i think you will agree, have come back and in many cases matched or even exceeded in terms of quality and styling and ride and features. The best of europe and the best of asia. Look at the new generation of chrysler products, take a look at a Jeep Grand Cherokee and look at the new gm stuff, lock at the ford fusion and all the new pickup trucks and sport utilities. One of the Specialist Media on the impala said if youre spending 20,000 more for a mercedesbenz over an impala you are wasting 20,000. So i really think we have gone from being quite a bit behind, but the business is now being run by a trio of ceos who wisely place product excellent above all else because they know the public will honor it, and i say to anybody who hasnt driven an american car in the last ten years, go drive one because youve got to know what youre missing. All right. Bob lutz, thank you. Always great to see you, sir. Thank you. Sue, down to you. Supporters of egypts former president Mohamed Morsi calling for a million man march against the military. We head live to cairo for the very latest when we return. D. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why the internet needs a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This. Is going to be big. Its time to build a better enterprise. Together. And you wouldnt have it any other way. E. But your erectile dysfunction you know, that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than four 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. Welcome back to plurn. Im josh lipton. Nice day in the green for generac hitting an alltime high. Good news for this company, reports and beats and also lifts its Sales Guidance for the full year. The ceo on cnbc this morning saying this is really an underpenetration story. Only 3 of households have the product, he says. The stock off session highs but still up about 5 right now. Sue, back to you. Josh, thank you very much. In egypt, they are preparing for new protests today as supporters of deposed president Mohamed Morsi call for a million man march against egypts military and it comes as european leaders are working to broker a deal to end this crisis. Cnbc has this live report from cairo for us. Reporter good afternoon. It was a surprise that Catherine Ashton actually had a chance to meet president Mohamed Morsi and they had a very open and frank conversation as she described it but was able to carry the message that hes doing well, has access to television and the information about whats happening here in the country, but she did not go any further beyond that because she did not want to characterize the conversation knowing that he does not have a right or the ability to actually describe what conversation took place. Nonetheless, many are pinning their hopes on katherine ash torng the top eu foreign chief, to try to reach some kind of agreement to health parties reach an agreement that can stave off any further violence. She says the protesters that have been staging this sitin for the past month have the right to do so peacefully, and its incumbent upon the authorities here not to attack them, not to carry out any further bloodshed. However, there seems to be growing impatience with the Egyptian Military and the Security Forces here. They have suggested that they are going to deal with this sitin one way or another in accordance with the law but perhaps with force, if necessary, and that really has a lot of people concerned. Its not just the sitin that is on the minds of people. It is the consistent marches taking place every day in cairo belong together supporters of president Mohamed Morsi thats also raised the anxiety levels across the country. Sue . Ayman, thanks very much. Stocks are steady as the fed kicks off a twoday meeting on Interest Rate. The biggest stock winners coming up with the Dow Jones Industrial average off 20 points and the nasdaq is positive by 10 points. Were back in two. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. President Mohamed Morsi thats nasdaq is positive by 10 points. [ male announcer ] its time. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. Lets check the markets right now, kind of a mixed performance. The dow is down 26 points on the day, just a fractional percentage loss for the s p. Down a little bit more than a point but the nasdaq is proving positive today by a quarter of a percent or just under ten points. Part of that is because of the big gains in apple and facebook. Theres the big winner on nasdaq with apple up 1. 33 or six bucks on the trading session trading at 4. 53. Facebook up better than 4. 33 , about 1. 52 on the trading session. Ty, those are one of the two of the factors that are moving the nasdaq higher. All the with big percentage gains. Pitneybowes better than 12 . Goodyear, of course, those old School Companies arent in the Old School Businesses in many cases anymore. Pointing out facebook i think is there within a dollar or thereabouts of its openinginio price at 36. 90 and change right now. Interesting afternoon lies ahead. That will do it for power lunch. Sure does. Street signs begins right now. Keep your eye on the markets because were in fed waiting mode. Well see you tomorrow. Our eyes are on the market. Got a very simple question for you. Is the stock market overvalued . It is the question. It matters to your money, and were going to hit that story all hour long. Housing stays hot across. Home prices doing something they have not done since 2006. Its the big story thats got a lot of homeowners very happy. Plus, three more stock picks for you from a fourstar fund manager and herb and i go toe to toe on an investing bet