And butter. Were talking about her and oeismt ceo blunders. Tyler is out and simon is back with me. Hi. Good afternoon. We start with something on this show 24 hours ago it was a big headsup on a stock that could have been about to make a very big move. A biostock that many analysts will quickly double, vertex pharmaceutical reporting data. And move it did. Vertex shares up big on news that the drug combo is an effective fighter on cystic fibrosis. Its up, up and away today. Our own meg tirrell fresh from doing a lap of honor around the headquarters joins us with more. They met and exceeded the streets expect aations this co bock improved function. We took a look at how they work. Cystic fibrosis is caused by mutations to a gene known as cftr. When the gene is defective, the protein it creates cant help fluoride escape the cell. That hampers the movement of fluid across the cell wall and leads to product of thick mucus. The first medicine cass kaledyco. Which allows chloride to pass through the membrane. Only about 2,000 patients with cf have mutation that the drug currently alone can hope. The protein ebbet get to the membrane at all, so vertex is testing lumacaftor, where this kalydeco then opens the passage of fluoride form the combination could help more than 14 times as many people. Analysts now sea vertexs drugs could bring in more than 5 billion in peak sales. It also gave a boost to sentiment across the sector. The index also trading up today. Be sure to check out our exclusive interview with the ceo on closing bell this afternoon. Back to you guys. Thank you very much, meg. Matt, as far as this drug is concerned, or this biotech is concerned, do you think theres more up side potential . Hi, simon. Is there more up side from here . Yes. We had previously talked about a 125 per share upside scenario, where you would increase number one price, because the activity is higher than the street was thinking. Secondly just greater penetration, particularly in population past this current, you know there are still levers to the up side organically. Then on top of that, you can start to think about from a strategic perspective, given this is a very Long Duration asset with very high margins, you can imagine when strategic requires might be interested in coming along and taking a look as well. The big question, what else is potential poised to get this sort of breakout, dependent on the success of whats in their pipeline in clinical trials. What other sort of names youre saying . Yes. There are other binary risk stocks, pbyi is the ticker. This is where where weve talked about the favorable risk reward based on the upside potential. Thats a binary stock, with several upcoming events, you know, in the largecap space, you still have gilead and celgene out there that still have gap up potential on pipeline develop. 24 the case of celgene, you still have resolution from the patent case to go on here. So theres still several names with upside remaining in the sector. Good to see you. Matt rhoden there from ubs. Were going to focus on the bond marked. We have a twoyear note auction this week. Rick santelli is tracking the action. What grade are you going to give it . As i cipher and cipher, ill tell you what, were going to give it a cminus. This auction was kind of like kissing your sister, it wasnt ugly, wasnt pretty, it is what it is. The ultimate yield 0. 5211. So it priced right, but everything was a little weak. By a bid to cover was a little light. 23. 1, a little light with 26 , ten auction average, same could be said for directs at 23. 3. The dealers, when everything is averaged they roughly take 50 . Yes, in this case it was 53. 6 to be exact. The short maturity auctions should be more solid than this one. This doesnt paint a good picture for the rest of supply. Sue, back to you. Maybe its just the beginning of summer, rick, but youre right. It doesnt mean the rest of the auctions will go all that well. Lets focus on health care. After five years of slowing growth for Employer Health care costs thats reversing and costs are soaring again. Bertha coombs has some details. As our including put it, the party is over. Medical costs rising 6. 8 , only up slightly from the 6. 5 growth projected for this year, but ends the trend of slower growth. Well obama care is resulting in more people gaining coverage. For Large Employer plans, the main cost drivers are structural, workers are more confidence theyre no longer delaying costly procedures. There are fewer big drugs going generic and new special drugs are driving up pharmacy costs, while the consolidation of Health Systems is also driving up prices for care. So employers are mitigating the increases by making workers pick up more of the tab. Employer have been very actively pursuing the strategy of moving many of their workers into High Deductible Health plans. This means that the workers could face 1,000, 2,000, 3,000 first out of pocket before their Insurance Coverage kicks in. These plans are more and more popular. 18 of employers right now only offer them. 44 are considering offering just high deductible plans only over the next three years. 85 of employers are considering more costsharing measures. This is putting pressure on insurers. They are trying to help them with new types of plans, more consumeroriented organ, particularly when it comes to price transparency. Weve got insurers hue humana today at a new high. Hospitals shares have done pretty well, but trying to offset that pricing by gaining more market share and locking in mower value. You can read more about the inflation trends on cnbc. Its a real transformition. Absolutely. Absolutely. Were going to deep tabs on that. I know youll do that for us. Thank you, bertha, very much. We had another big health story, pretty insatire, coming straight from the washington post. They profiled a young man named ian birk heart, who was paralyzed after a swimming accident. Now for the First Time Since that accident, hes moving his hand. Doctors in ohio xwlakted a microchip in ians brain which stimulates muscle movements based on his thoughts. So in essence, he is willing his hand to move, and its working. A fantastic video the electrodes are basically helping him to open and close his hand enough to do everyday things we really pretty much take for granted, like brushing his teeth, eating meals, using his laptop, and doing it all on his own. This is raising a lot of hopes and well keep following the story. Pretty inspiring, simon. Yesterday was existing home sales rising faster than expected. Today, diana olick, its new home sales taking the spotlight. Over to you. Absolutely, simon. An 18 monthtomonth jump, not surprising that one analyst suggested we look at this with suspect goggles on. So lets do that for a second. Sales of newly built holds were up nationally, and up nearly 17 from a year ago. Regionally sales jumped a 4 in the northeast and 34 in the west. Now, remember these are contracts signed in may, not closings, so spring buyers out in force. These numbers are coming off such a low bay that the percentage jumps have to be huge. Heres another shocking number. New home sales are 64 below their peak, which was in 2005. Now, lets talk prices. S p case shiller up 10. 8 year over year. The annual price gains are slowing. The gains in march were over 12 from 2013. Again some perspective. This price index is still down 18 , 19 from the summer 2006 peak. The recover from march 2012 lows is 25 to 26 , so yes, housing is definitely improving, but we are absolutely not back to normal. For more reaction on all of these numbers, its where it always is, realtycheck. Cnbc. Com. Sue . Diana, thank you very much. The s p 500 hitting a new intraday high today, but they are concerns. Could they hurt the rally . Kevin joins us, mark travis is president and Portfolio Manager at Intrepid Capital funds. Welcome, gentlemen. Thank you, sue. Kevin, im going to start with you. Weve been focusing a lot today, in the past week or so, on the perhaps rising rate environment and what that means for ecwit prices. Whats your attitude toward Interest Rates . I think, sue, the fed has been very transparent in terms of their goals and Implementation Plan on Interest Rates. If they continue at their 10 billion a month reduction, that should wiped down tapering by the fault of this year, tacking on a sixmonth window, this brings you to the spring of 2015. If you look at the end of 2016 target of 2. 25, you can start to see when this fact theyll start to begin the 25 basis point increases and how long theyll last. What works in that type of environment . Lets look back to 2004 to 2006. There were sectors such as energy. Convertibles. High yield. Senior loans are there are things that do work. Mark, do you agree with that . This market hasnt taken too much of a breather, if rates do indeed start to go higher as most the the street believe they will. I think thats an understatement. You know, as far as rates go, i dont think the federal government can afford higher rates. It could be billions that we could afford as a so i think the fed is hoping and praying thatment didnt go bump in the night, in terms of currency or spike in inflation. So are you in essence sailing you do not agree with those. But if you do. I think you have corp america with very high profit margins. Wage growth has been low, i think the, you know, labor will get a bigger piece of the pie here soon. Simon, down to you. Sue, a chinese ipo soaring on its debut. Seema mody is tracking this redhot red stock. A chinese internet player, with 300 million active users. I spoke to the ceo, who said one of the goals is to enable users to manage and consume Digital Media content. Other people who are focused on capitalizing. In general, chinese internet has been getting a lot of attention with ali baba expect to do go public in early august. Thats the big one. Seema, thank you very much. In the meantime while u. S. Markets keep pushing to new alltime highs, a dlan in a major stock market in the middle east has some International Investors jittery. Our bob pisani has the details. Thats the biggest since august, now shares in dubai builder arab tech holding, take a look, drop 10 after the company confirmed staff layoffs. Arab tech is one of the biggest builders, one of the most heavily traded stocks. The dubai, of course, is famous for the Huge Development known as the palm islands build by dubai world, the investment arm of the government. It also owns the pworld one of the largest Marine Terminal operators in the world. The, first theres enormous amounts of money tied up in the second, theres been considerable investment in companies in the middle east, tick laically of United Arab Emirates by u. S. Investors. And into Frontier Markets like nigeria and the middle east. You see the decline there. On top of that, many etfs, including the eem, the largest emerging market etf, now classified several middle east exchanges as emerging markets, not Frontier Markets, so the weighting is in other indexes as well. The Uae Central Bank mentioned a few weeks ago they were concerned about overheating in the property mark there. That has start this had decline that we have seen. The real question, the global question for investors is whether this is somewhat of a canary in the coal mine for somewhat overheated we dont know the answer to that yet, but thats the concern. I feel like weve been here before with dubai. We have, but it was a while ago. As i hand it back to you, we are heading down on the markets, down at session lows, 53 points lower on the do you. Simon, thank you very much. Spl sploo. Coming up. She missed a key advertising meeting saying she simply felt asleep. We have the story, and we want to you weigh in. It will be the focus of todays viewer vote. Go to cnbc. Com vote to let us know your thoughts. Before a break, lebron james opting out of the final two years of his nba contract with the miami heat. Hes now a free agent, but that does not mean he wont return to miami. If they offer him the bedeal, he could remain with the heat. Were going to talk about that and the implication for the sport, when power continues. [ female announcer ] we love our smartphones. And now telcos using hp Big Data Solutions are feeling the love, too. By offering things like onthespot data upgrades an idea that reduced overcharge complaints by 98 . No matter how fast your Business Needs to adapt, if hp Big Data Solutions can keep wireless customers smiling, imagine what they can do for yours. Make it matter. Walgreens under pressure today. The nations biggest drug story chain missing on both the top and bottom line. The dr. Pepper also in the red. The beverage maker cut from neutral to a buy, sake the stocks 22 rise has far outpaced rivals, the stock is up off 1. 25 . Avon cutting about 600 jobs as it trying to return to profitability. Simon, down to you. Sue,en a tale of two quarters at carnival, the Worlds Largest cruiseship operator, comfortably beating estimates thanks to smaller than expected rises in costs, but investors are disappointed the ceo join us in a cnbc inclusive. Mr. Donald, welcome back to the network. Thank you, simon. Good to be with you. Tell us, how were you able to control costs so well in the quarter that weve just had . Well, you know, vessel a very dedicated team of people, and theyve always been cost focused, but we have been able to begin the initiation of collaboration across the brands, but its not just costs. We definitely have some advantages there, but really Strong Performance in brands both from a yield standpoint. Europe is looking stronger, also good performance from the north american brands. The summer quarter is the be all and end all. Of profits. Its important for people to gauge the direction of the but some people are puzzled as to why youre not being more upbeat. You know, ubs saying really profitable cruises in europe and alaska that should bolster you in that quarter. Yet youre forecasting flawed to negative yields on last year. So youve already got weakness belled into the position. I think people are we do see an overall improvement in our guidance suggests that from the prior year. We do see ticket prices being higher. In the caribbean where theres a very large increase in capacity, there are a lot of deals in the caribbean right now, and between the lower occupancy, as we strive to hold on to pricing a bit more, you notice, that affected the yields in the caribbean, but overall for the year, were increasing our guidance for the year. We see strength in the markets and we certainly see things turning to the positive. I want to encourage guests to take advantage of those deals, and we certainly look forward to entertaining guests there in the fourth quarter. I find this fascinating. Australia is billed as the number one crew ship market in the world. Youre now committing nine ships to be permanently based there. Last australian do, you have 20 ships down there. To come back to what you were saying about the caribbean is, are you taking the ships away from the caribbean, in other words, will there be less discounts next year . I think australian has been a very strong market for a number of years. They do have a different vacation model, and theyre mandated, i believe, 30 days of vacation ever ten years, so its a great market for cruising. We certainly enjoy our presence there, and we continue to do considered growth. The type of in australia is not comparable to what you saw in the Third Quarter this year in the caribbean. So there will be a backing off of that capacity in the caribbean next year, which will bode well, you know, for next year. Life in sydney was always attractive, but the idea of 30 days vacation a year is Something Else. Thank you for your time. Arnold donald, the ceo of carnival. Thank you, simon. Youre welcome. Thank you very much. Yahoos ceo overslept for a big meeting. She had been up to 20 hours. She kept them waiting for a couple hours. Its not the first time, however, that shes done that. Does she really understand yahoos business . And we want you to vote. If you were her personal assistant, would you have woken her up . Were also asking you about big ceo blunders, so go vote at cnbc. Com vote. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your Business Needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Welcome back to power lunch. Energys sing the worst performing sector. Theyre taking a breather after a nice run, which positioned those stocks as the second best performers in the s p 500 in 2014. The energy index is up 12 so far this year. Among the bigers losers, you look at new field exploration, eog resources, pioneer natural, all done about 2 or mo on the day. Overall a big breather for the energy stocks. Sure is. Dom, thank you very much. Were going into the close for the metals market. We have the biggest gain today with palladium up better than 1 , and same true to platinum. A check on the bond market forget the twoyear note auction, which didnt go all that well. Rick san tell ii, back to you, reqqy. Sometimes we say the geopolitics or syria or iraq, but look at an intraday of twos, you further, it is to see. Rates dropping, open the chart up month to day. You can see were in a pretty tight range, but coming into good buys pushing rates down. Maybe one of the reasons Peter Boockvar emailed me, one of our contributors, a lot of people concerned about the consumption indicator. We night want to play very close attention to that, and what mr. Carneys comments overnight, the pound as you see versus the dollar did come off 170, but still hovering at pretty lofty levels. Thank you very much, rick. Youre up to date on the bond market. Take a look at this voidy. It is incredible. Its the video watch this. The shark taking on a go pro camera, took it right off the stick. Will investors take a bite when well tell us which companies are inside the plastic box that could get a big boost. There it is again. Worth a second look, i think. Well, it is lunchtime. He was hungry. Yikes. A decent first half for stocks, s p 500 hitting new highs, more than 20 times. What will the second half bring . The big correction that many have been talking about perhaps . Or maybe not. Were back in two with the dow down 48 points. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Welcome back to power lunch. Shares of Elizabeth Arden falling today after the company approve a restructuring and cost savings plan. These efforts will seek to save between 27 and 30 million a year in costs. Theyll stop manufacturing of certain poor performing products. Chief macing officer also resigned, but will remain with the company until, sue, the end of august. Back over to you. The street is not embryosed,dom. Kenny polcari, a cnbc contributor, and michael james, head of equity training for Wedbush Securities in los angeles. How does the market feel, kenny . You know, so we have this back and forth. It doesnt feel heavy, but also doesnt feel like theyre i think that investors are digesting tern the recent move, but also very concerned about the simmering tensions in the mideast, it doesnt feel like its going to fall apart. What about the low we have low volume, and low volatility. I think the market does feel heavy short term, but by the same token, it doesnt feel like its going lower. You look at that Market Action the last three weeks, its been a steady slow grind over a little higher. We dont feel like the market is going to keep ripping for new highs. Could the market be up 10 to 15 this year . Whats your better alternative . The u. S. Equities represents a decent alternative for the investment dollars overall. Thats why youre not seeing the market really pull back, not seeing people scared about anything. It kind of, you know, grinding in place, not really going anywhere. Well, 10 would be a pretty decent return for any market. So thanks, gentlemen, appreciate it very much. Simon, down to you. Marisa meyers showing up two hours later admitting she had fallen asleep and our own aaron sorkin writing about don charming and managing ceo behavior. What do you think is the biggest blunder . Vote now at cnbc. Com vote. Here are your choices. Marisa meyers nap. Antics at American Apparel. Tim armstrong who fired, Dennis Kozlowski for throwing his wife aing toa birthday party, or was it john thain for spending 35,000 on an office out. Toilet. In the meantime its time for the power rundown. Julia boorstin and majority fjo join us. First the question that an draw sorkin races in his oped. How do you manage a leader whos lost his way, or in the case of American Apparel ceo lost his clothes and is jiggling. When, julia, do you say goodbye . Units im surprised he lasted as long as he did. There were allegations about misconduct with employees for a while, but also just look at the performance of the company. Over the past four years theyve been losing money, you have the fact that samestore sales are down. Hes not setting a good example on a number of fronts. Better get used to it, simon. When you look at the company that is we have now that are founderled, those founders get a lot of leeway, especially when they have some controlling interest in the stock if theyre public, this sort of thing can happen. Its got to go to friends and advisers of those people, and sometimes do a tough thing, the board does, and just force it, and expect lawsuits if it doesnt go their way. Guys, lets lock in our viewer vote on the biggest ceo blunder. Heres what you said when we asked you oversleeping is basically in the lead there. Its the toilet actually that also ranks quite highly, but Marissa Mayer is the main ceo blunder as far as our viewers are concerned. Lets pick that up, guys, showing up, of course, two hours late with a dinner with key advisers in cannes last week, prompting one attendee to say, look it, its another instance where she demonstrated she doesnt understand the value of clients, adrevenues or agencies. In fairness, she said she overslept, which bridges us to ultimate second question, if you were her personal assistant, would you have woken her up. The question to the panel her oversleeping, costly human error or misguided priorities, as the quote from one of those attendees suggests, julia . Well, i talked so some people who were at the dinner, and they said it was inexcusable, because she was the guest of honor. Oh, wow. Everyone who sleeps through their alarm, ive done it myself, i have to admit, but when i think its an important dinner, when this is her big opportunity to pitch to biggest clients, she should have made sure that her assistant could have knocked on the door and woken her up and probably set multiple alarms. Everyone does do it at some point, but she should have had heres the problem. Shes got a storied history of keeping people waiting. She has the resources to make sure there are people who can get her there on time. The question is, where is the breakdown . If youre a part of yahoo or an investor in yahoo, you want to know that shes got the right people in place to pick up the slack when she cant do it all herself. I love this. You can see the votes coming through at the bottom of the screen. If you were Marisa Meyers assistant, would you have woken her up. You can see there upward of 84 , 85 , which i think, guys, is what you might have expected. Do you think if she overslept, was she right to be honest about it . Julia . Well, i think the question is what other excuse could she possibly come up with . When she walks into this important dinner about two hours late. I think perhaps more important than the honesty is the idea of being incredibly apologetic. If she has a track record of being late and not being particularly apologetic about it, if i were her, i would be efusibly apologetic, and i wonder if she was. Honesty is absolutely the best policy. Can you major if somebody saul her stumbling out of her room rubbing her claims when she claimed she was doing Something Else . That could be a bigger scandal. Apologize, but tell the truth. Lets lock in that viewer vote. Would you have woken her up . 85 say yes, only 15 say no. Okay. Sue, back to you. Lets take a look at the markets and much more. The dow right now is down about 42 points on the trading session. It is an ipo tsunami this week, 18 companies are set to price. It will be very interesting to see how they do. Video camera go pro, the one you just saw with the shark, is the one to watch. We just want to shall this video over and over again. Its jawdropping footage from 360s heroes photographer, micha michael kintner. Its completely devouring six go pros in a sippingle gulp. Well have more on that in just a second. But we have some breaking news. Dom . Fresh headlines via dow jones with regard to American Apparel. It is exploring options to raise fresh fences, this according to a report against from dow jones, looking at possible debt or equity offerings, so they may sell bonds or stock to raise cash. Theyre looking to bolster their cash cushion if needed to repay any kind of a loan, so again American Apparel. Weve been talking about them for a couple weeks now, especially because founder and ceo was recently dismissed by the company over alleged misconduct with financial mismanagement and sexual harassment, allegations he says he is now disputing. This company, American Apparel is looking to raise money by the debt or equity markets, this according to fresh headlines by dow jones. Well keep you apprised as they become available, but for right now eric certainly keep an eye on the stock and company. Dom, thank you very much. Go pro was in focus, josh lipton is live in san jose. He has more details on a highly anticipated ipo, josh. Absolutely, sue. You crack open a go pro. Some of what you find you may have guessed. A chip from qualcomm, a sony image sensor. One Research Firm that took the camera apart found a Texas Instruments chip as well, but take a look at this. Its an amberella chip. A little known company, market cap of just about 900 million, but making big waves. Their chips are not only inside go pro cameras, but also big names as well, such as drop cam, which of course was just bought by googles nest. Look at this companys huge move. It is up over 100 , but not all parts are off the shelf. The folks at i fix it say the key to the image comes from a special lens. They future a lot of work into that lens. Thats truly what makes the go pro special. It has such a wide field of view. So a lot of little pieces in one small package. The question is, can i put all of them back together again . Sue, back to you. I think you might have to use the Corporate Card and get a new one. Its okay. Theyll pay for it. Witching gears to a serious situation, the crisis in iraq is deepening, militants taking key territory. Michelle carusocabrera is with us with the latest. Michelle . Thats a big story. Theyre taking over borders, trying to enlarge the area that they control. Well bring you the details and tell you what john kerry is saying today as he returns to iraq. Power lunch returns right after this break. Thank ythank you for defendiyour sacrifice. And thank you for your bravery. Thank you colonel. Thank you daddy. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance can be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Certainly iraqs western borders are virtually gone, erased by the sune group trying to march towards bags dad. Our International Correspondent michelle carusocabrera, who of course just got back from Northern Iraq. Michelle . The United Nations saying today more than 1,000 people, the vast majority of them civilians, have been killed in iraq this month. This comes as secretary of state john kerry is in Northern Iraq urging the leaders as to stand with baghdad in an attempt to hold iraq together evens we see the borders disappear, the Prime Minister of kurdistan saying it will be extremely difficult though hold iraq together. The iraqi mincety releasing videos of air strikes of a rye finery. The video which is timestamped from yesterday shows hits on what happens to be vehicle which then erupt in flames. This video could not be independently verified by nbc news. Lets talk about that border story now, which is so crucial. Iraqi and jordanian intelligence sources say sunni tribes now control another Border Crossing after the iraqe army withdrew from the area, bringing the militants one step closer to their goal of createn an independent sunni state straddles these three countries. Nbc news could not authenticate this video, which claims to show the crossing point said to be taken over by the rebels. Back over to you. Lets check where we are on oil. Of course, if this crisis is going to impact the markets, that would be the primary thrust up for the day, though were at 105. 97 on pti. Jackie . Good afternoon. I am here with jeff grossman. Youre going to see a spike. 810 easily on that kin of disruption. Its not going to be anything that will cut down the delivery. Its just control. Thats what a lot of people are worried about. Not that long. In fact the market is right there at the support levels of 1015. 25 is where we held this market, you know, under its own weight, would go lower. Well see tonights image where we report tomorrow, even if thats going to hold. Jeff grossman, thank you so much. Sue, back to you. Scott coness twitter followers called cohnheads have tweeting their guesses with the topstates. Check it out on cnbc. Com. Scott is at a secret location today, not in a canoe this time. Scotty . That is the scariest graphic, sue. We know from our countdown thus far that North Carolina is number 5, nebraska is number 4. Who is number 3 . And where the heck am i . Americas top state for business. A little more hints about that coming up next on power lunch. Are the largest targets in the world, for every hacker, crook and nuisance in the world. But systems policed by hps Cyber Security team are constantly monitored for threats. Outside and in. Thats why hp reports and helps neutralize more intrusions than anyone. In the world. If Hp Security Solutions can help keep the Worlds Largest organizations safe, they can keep yours safe, too. Make it matter. Our Senior Correspondent scott cohn is counting down cnbcs top states for business. Time now for number 3. Scott, take it away. Reporter hi, sue, a lot of people probably take it for granted, but this is a really beautiful location. We look forward to showing it to you when we unveil the top state for business later today. For now, lets continue with our countdown for state number 3. Utah, the beehive state comes in third this year. It phied for fifth last year. In fact utah has never finished outside the top ten. The best category is access to capital, where it ties for the best in the country, a solid combination of Venture Capital and bank financing. But education remains a weak spot, with one of the largest pupil teacher ratios in the country. Utah comes in 46th. Unemployment is well below the National Average at 3. 6 . Utahs individual income tax rate is 5 , the Corporate Tax rate is 5 , the state sales tax 4. 7 . Utahs largest employer is Intermountain Health care, a nonprofit system of hospitals and clinics, the largest industry is manufacturing financial and mining. We actually expanded the definition of access to apt for this years study. That helped utah, going beyond Venture Capital, but also looking at bank financing, as you heard, it tied for number one in that important metric. So where amany . Americas top state for business. One more hint, and that is feel the earth move. Well, what the heck could that be . Given your guesses on twitter, follow me, use the top did the states. Were retweeting them out. Probably sometime in the next couple hours, an exclusive hi just to all of you cohnheads, you twitter followers. The runnerup next on stein styles, and the top state revealed during closing bell and after that, you can see where your state set up. This is one of my favorite. I would not have thought access to capital as a metric that they would have performed so very well in. I didnt really know there was so much Venture Capital flow coming out of utah. Thats fascinating to me. There is Venture Capital. You know, the state that always does well on Venture Capital obviously is california. Right. But a lot of other states have been sharing some of that wealth now as well as, as i said, more traditional financing that we started to look at. We hear from Business Leaders and we hear from states its not all Venture Capital. We always want to try to capture exactly whats going on out there. Im going to become a cohnhead. That does it for us on power lunch. Were going to take a quick break. [ 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. Hurry, before this opportunity cools off. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. 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With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. All right. Were back. Were down 64 points on the Dow Jones Industrial average. Thats the low of the day, the s p down 3. 3. Nasdaq is bucking the trend, simon, up nine points on the trading session. Thanks to the biotechs. Thats it for power lunch. Street signs begins right now. Simon and i will see you tomorrow. Have a great afternoon. The number of the day is 116. Its a big number that involves your money. Were going to explain what it is and why it matters in moments. Plus the great email debate. Is it product activity or timesucking soul killer. The reason that the government wants to tax ecigarettes. Its not your health, its theirs and why are we so stalled on the march to 17,000 again. Thats a good question. Were at session lows, brian. If the three inadditions can manage to close higher, it will be the seventh trading day that they have done so