85 points. Hour, take a look right here. Were going to put a circle on this. This basically is where we are now. And as you can see we did take a dip. We were down almost 100 points. Now the market is starting to come back a little bit. It is really an incredible market story today. The vix alone in the first two days of this week, you know everybody has been saying its a low volatility environment. This week alone in the first two days the vix has spiked 16 . Add to that, todays advance, it seems like volatility is back. Seema modi is up down comping the nasdaq. That index is seeing a big jump after stocks jumped basically like a rock on the open. To bob pisani right over behind my shoulder at the floor of the new york stock exchange. Bob, its going to be interesting to see whether or not we get this kind of volatility for the rest of the trading day. So far weve been very steady. I want to point out the volume is average right now. Its not stronger or weaker. I just want to put up the dow and point out key sectors here. Health care holding on firmly. Materials, banks are down but not that much. Thats part of the strength weve been seeing here. Weaknesses, Consumer Discretionary. That means Home Improvement areas. Weapon talked about Lumber Liquidators. Home remodeling not as strong as people were anticipating. Thats not a typo. 20 . Other group, competitor there down. Home depot and lows down 1 right now. Whirlpool is down. This has negative take away for the consumers. Retail names down. 1 to 2 . Kohls weak as well. One thing i want to point out that is great news for the consumers, decline in Energy Prices this week. National gasses down 7 . Thats terrific news. Brent is down, i think, eight straight days. West texas intermedia down ten days. Great news for the summer driving season. This if you have an investor in exploration and production stocks. A little rocky this week. A lot of these small cap natural gas stocks have huge runs. Big darling of investors. Smaller names, magnum, they have been down 6 , 7 . Tyler just this week alone. Keep an eye on that one. Still good news for the consumer. Bob, thank you very much. Lets go across the studio here in headquarters for dominic chu with a market flash. The trw, the stock just reopened after being halted for pending news. Dow jones ask reporting they acknowledged they received a take yoefr offer and is evaluating the proposal. Its hired Goldman Sachs as adviser on the financial side of things. Earlier today bloomberg reported it was germanys zf Group Interested in buying trw. You can see the stocks shot up and took another leg higher after trw did confirm tyler received a takeover offer. Back across the river now to times square. Seema modi is covering the nasdaq. Were coming back now. The nasdaq though still down 20 on the day, tyler. With that said, from the traders i speak to no one can deny there is a level of nervousness in this market. Given the big swings weve seen in this market to the upside and to the downside. In terms of todays big Market Movers its a mix of Consumer Discretionary names, large cap tech, also moving to the downside. And among the high flying tech names, social media continues to show signs of weakness. When putting this markets selloff into perspective you can see those social stocks really getting hit on the chin. Pandora, linkedin, yelp all down. Russell 2,000 a topic of discussion on the trading floors. Its worse Weekly Performance in two years. Some traders trying to understand what that tells us about the broader markets given the russell 2,000 is comprised of domestically oriented names. Where was the money going this morning . It was going into the treasury market. Its a day when we have the bopd market 30year option up for grabs. Rick santelli is tracking the action at cme. How was demand . One would think given the environment in equities we would see good demand. Was that the case or not, ricky . It was better than the previous two options. B minus in my book. It was best of the three and well go through the internals. 3. 369 is the yield at auction. The lowest yield at auction since june of last year. 13 months. Heres the issue. The big side of the one at issue, 3. 365. We tailed just a little bit. The good news, indirect. So this is where todays activity fed right in. Its about 11. 2 better than the ten auction average. Its the best in almost 8 1 2 years going back to february 06. 11. 1 on direct was a little wide. And the bid to cover was spot on. Exactly the ten auction average at 2 attorney 4. B minus, probably gave it a little bit higher grade. But theres no doubt thats this a little nervousness in the European Banking sector. I dont think its a lehman moment but it certainly seemed to be a 30year bond moment. Tyler, back to you. Thank you very much, rick santelli. Market, as rick just referenced, selling off today on concerns over the European Banking systemsystem s specificically portugal. With me, alan reid, ceo of forward and chief Investment Officer at Pioneer Investment management. Welcome to both of you. Alan, you say you wouldnt be surprised to see a 5 to 7 pullback in the u. S. Market and, ken, you say you wouldnt be surprised to see a big rally in the second half of the year. Maybe those two things arent mutually exclusive but on the surface they seem so. Make your case first, alan. First off, what were saying is that if you look at the vix its been trading ten to 12 range. Historically its been more in the 15 range. My predictions pay off. Were seeing it right now. What im saying, when you think about volatility in the marketplace. Weve seen an opportunity to actually buy a bunch of puts in the parkt. Cheap insurance. Weve done that with a real estate long short funds. And so those have been areas that were seeing opportunity. As you think about volatility though in the market, you think about whats coming up. Fed chair, fed chairs have always gotten tested. We went back to the beginning of fed with 18 months. The market puts them to them, test them a little bit. Validity is a big thing in the markets. Whether or not people have a Good Relationship with yellen and understand what shes going to say. So that and you think about midterm elections coming up. I dont know about you but i have seen in washington is they will say anything to get elected so what were expecting is to see a little more volitity in the market. We see as a healthy pullback right before earnings, mr. Market is stepping back and saying, all right, lets see how this gird dance comes . Ken, let me get you to react to what alan just said but make the case as you did that you could potentially see a nice upward move in stocks in the second half of the year. Yeah. First, good afternoon, tyler. Nice to speak with you, alan, as well. I dont think were necessarily saying too much of a different thing here. One, we have had a very good run in equities for the last few ways and now were in between the end of the Second Quarter and earnings. I dont think its surprising to see a little more uncertainty in volatility in a pause in the market. And also weve had a little bit of global risk up come back into the picture between the political geopolitical risk as well as now some credit issues again in europe. And that coupled with what i think is the market beginning to worry a little bit about what alan said regarding the fed, we could see a little uncertainty regarding fed policy as the economy continues to do better and the market begins to think the fed is not just going to sit there and maybe even falling a little bit behind the curve. So i dont actually disregard the possibility of a shortterm correction in the markets. Frankly, i think the market will get past these things as we get later into the year because the most important is the fundamentals. If i might, is this a time to do something or do nothing . Well, i think its a time to not too much. I think that if you have a good Asset Allocation plan i think our investors at pioneer are mostly interested in longterm results. I still think that the equity market looks, compared to other asset dallases, the more reasonable one, not the cheapest one but the more reasonable one. Now were entering a period where we may see some Revenue Growth as the economy gets better. Here to for weve seen cost cutting and stock buybacks, other things that have approved Company Balance sheets and earnings per share. Now we may see gdp acceleration and that may be good. Very quickly, alan. You think the best sort of combination of yield, valuation, and a prospect is in emerging markets. What were seeing is them trading 40 cheaper than the u. S. 20 cheaper than europe. So as were looking people pulled away from emerging. We seer to instance csi in hong kong. You know us, we dont like to go where anybody else goes. Csi is a small operator, real estate operator in hong kong. We see it trading 30 of its market value. Theyre buying back shares. Three funds own it. All five stars. I think we know something here. And were pretty excited about whats going on in emerging markets. We see large Pension Plans starting to move back. Its all about that rebalance and being in front of the money. We try to buy it earlier than the rest. Alan, good to see you. See you next week. Its a great space. Weve learned a lot there. Fantastic. Alan, we appreciate it and, ken, thank you as well. Sue, down to you. The worlds most powerful media titans gathering in idaho, perhaps looking to make their next big deal. Kayla is with them in beautiful sun valley, idaho, with a cnbc exclusive. Over to you. Thank you so much, sue. Were joined by lowell mcadam, ceo of verizon. His first time at the adam and company here in sun valley. Your sector, is at the heart of almost everything going on this week. Heart at the debates of Net Neutrality and media bundling but also deal making. At t, directv, comcast, time warner cable, possibly sprint tmobile express. Well, i would say we did our big deal a little less than a year ago when we bought the 45 of vodafonvodafone. I dont feel the need to do anything big. What this session does for us as a company is we get together with all the media and the Tech Companies and we talk about the next big thing. And as you indicated, a lot of it is taking all the media on mobile. So were in a great position with a power position where were with our network and that makes us significant player here at the conference. There have been rumors that you would consider an acquisition of dish which i know at a conference recently you deni denied. Then possibly you would buy some dish spectrum. All that in addition to simone Strategic Initiatives that verizon would have. Dish has got some great spectrums. Spectrum is part of the life blood of the mobile industry. We are just rolling out aws spectrum which we bought from the cable companys a couple years ago. Thats the foundation of our xlte which has made our network a leap ahead of the competition again. So anything around spectrum is always of interest to us. What ive said is i havent seen a scenario yet that owning a sat Light Company makes sense to us. Not being critical of any other deal out there. But, you know, right now we could do some interesting things but buying the whole company doesnt make sense to us. At least as we sit here today. If charlie of dish were here we would ask him similar questions as well. He is traveling. Reid hastings is here. You guys, netflix and verizon had a very Public Exchange of words last month when verizon was blamed for slow network speeds for netflix customers. Im wondering, have you talked to reid and what have you resolved on that front . I talked to reid frequently and just this morning we chatted a little bit again. I think, kayla, the issue of Net Neutrality and content delivery have been confused here. Weve taken a very strong position on Net Neutrality. We will allow customers to connect to any lawful content. We wont manipulate that traffic in any way that disadvantages our customers or our competitors. The position that weve taken is very strong. Content Delivery Networks have been around for the last couple of years. Its important right now because of video. If someone watches an hour of video its 100 more capacity than this surfing the web. The best way to give everybody a good experience is to use a parallel network just like a toll road on one of our super highways. Even by netflix own view they take up 30 of the internet capacity at peak times. Think about if we shut down 30 of our highways, what that would do. This content Delivery Network is a way to make sure that everybody gets good service. I understand that it was not actually verizons Network Issue that was causing that but i expect we will hear from your side of the story and as well from netflix own investigation. At the heart of it you are still a Wireless Company and theres a report out from ubs today saying that at t will have the best churn rate in customers leaving the network, the lowest, rather. Will you guys stay come tetive this quarter . We think this is going to be a great quarter for us. We will have our full results on the 22nd of july. But we added over 1. 4 million subscribers, post pay, net ads. We had varied record tablet growth, we had very good churn and we delivered margins that we were consistent with over the last several quarters. In addition, were going to expand our wire line margins which is a commitment we made to our investors. So Second Quarter is very strong for us. I think its an indication that the industry is very strong. We are continuing to see Huge Investment for x what you see in other countries around the world and the u. S. Market on a per subscriber basis. Our industry is healthy. Well look for the full numbers on august 22nd. Enjoy the rest of the week here. Not a bad place to send it. Not a bad place. Guys, well send it back to you in new york. Kayla, thank you very much. We have a news alert. Lets go out to jane wells with news, i believe, on lockheed. The f35. Wore waiting to see if lockheed is going to debut the jet at the air show next week in england. Currently all the fleet has been grounded by the pentagon due to an engine fire. We dont know if the plane is going to be there. Lockheed is addressing the other issue withes the a lating cost and announcing an agreement with the pentagon today to reduce that cost so that this fifth generation aircraft will, quote brks the price of a fourth generation by the end of the decade. Lockheed is promising along with nor up thetl northrop grumman. If those are successful, its saying the following two years, the u. S. Government has the option to invest initial money if the initial Cost Reduction initiatives are successful. This way by 2019 we expect, quote, the f35 with its unprecedented fifth generation cablibility will be nearly equal in cost to any other fighter on the market but with far more advanced capability. Phil lebeau will be at farm bureau next week. The f35 is supposed to debut there. If it us thent make it due to this current engine issue, it will be a huge embarrassment for the company. Back to you. Jane, thank you very much. If you thought europe was getting over its debt crisis, think again. The Global Markets really shuttering this morning on headlines originating across the pond. Well tell you where the debt problems really are in youre right now. Plus, dramatic video caught on camera of a powerful mudslide in japan. So, your site gave me this Credit Report card thing. Can i get my actual Credit Report. Like, the one the bank sees . [ male voice ] sheesh, i feel like im being interrogated over here. [ male voice ] shes onto us. Dump her. [ pay phone rings ] hello . Oh, man. That never gets old. No, it does not. [ female announcer ] not all Credit Report sites are equal. Experian. Com members get personalized help and a real Credit Report. Join now at experian. Com with enrollment in experian credit tracker. Welcome back to power lunch. It looked like it was going to be a tough day in stocks but then buyers started to move in. Alcoa and Archer Daniels hit 52week highs. Starwood, also, american tower, baxter are at record highs in todays trade. They are all up at least half a percent on the trade today. Typhoon has passed over in japan but now the aftermath there. Look at this. That is a mudslide. It was caught on a closed circuit camera near the Central Japanese city of nagano. People have been told to move to safe locations. Thousands are in shelters now as that unstable earth puts many people in peril. Sue . Ty, the benchmark teleaviv 100 and 25 both down just slightly today. The big etfs tracking israeli stocks falling here in the United States today on the down day. None the less, this on a day three of israels campaign to stop hamas missile fire from gaza. This is video just released by israels army targeting a weapons manufacturing plant. Israel also attacking a Massive Underground network of tunnels where hamas leaders and fighters are hiding. Its also where theyre reportedly hiding missile launchers. This video of gaza just came into the newsroom moments ago showing a burning building in the strip. Despite all the israeli attacks hamas has still been able to fire dozens of rockets into israel causing jishs. Some of the missiles are joo fired at the Experimental Nuclear reactor. Sue, fighting in the middle east just one of the International Stories were following today. Economic data from overseas making investors nervous as well today. That forcing an initial international selloff. Our senior economics reporter Steve Liesman has the numbers. You know its going to be a bad day when you come in and see the kind of data we got from all over the globe. Not just europe. Not just europe. Were calling this today the world of worry. I want to show you the data that we got. Its one after another. Lets start with japan here where machine orders are down 19 1 2 . A concern there is what does that say about machine orders in the United States and Capital Spending here mike just one months volatility. Take a look at china where exports are up 7. 2 . Looks like a good number. A good number in china for exports are double digits. Well below expectations for exports and the trade balance there. Moving over to europe. One piece of bad news after another. Industrial production, italy down 1. 2 . That was the best of the lot. France down 1. 7 . The story here is that it looks like the Second Quarter in france now lining up to probably be negative. Important to watch there. Germany as well. That was the number we got on monday. 1. 8 . The problems go on in portugal. A bank had an issue causing. The shares fell 19 mrs. Raising the financial concerns we have seen in europe over a while. And that had a knock on affect to greece which tried to sell a bunch of bonds. The thing there is 2 1 2 to 3 billion euros in bonds. In fact, they only sold 1 1 2, pulling that back. That with the United States, jobless claims came in better than expected. 304,000. Heres our cnbc wrap it update, the tracking estimate for the Second Quarter still running 3. 2. Thats down 0. 1 with a range among our ten economists racked by moodys analytics for us, 2. 7 to 4. 2 . Healthy compared to the rest of the world. Qe estimate is not tracking it. Its just a forecast. It incorporates on going data. Every piece of data comes in and we plug that into the gdp estimates. Q3 running 3. 2 . Quite a pickup in the u. S. Gdp. Compared to minus 2. 9 for the first quarter. We think were going to do. 3. 2 for the Second Quarter and 3 the quarter after is the current thinking on wall street. Steve liesman, thank you. Sue . All right, guys. So are the issues in europe and as steve just illustrated globally a sign to get out of the market or a buying opportunity on todays dip . Michael farr is here and cnbc contributor and Paul Christopher is chief International Investment strategist at wells fargo advisers. Were be we talk to them lets run through the numbers and get you started with an update on the markets. The bear is out today with a small caps leading the big selloff. Right now the russe 2000 is dow twothirds of a percent. The s p mid cap 400 having their worse weekly loss in three months. The fears about yoo ups and portugals Second Largest Bank at risk of missing a debt payment. Thats what started it all. Michael and paul, how concerned should we be about this overseas economic and market picture weve seen. Paul, im going to do to you first. I guess the big question down here is whether santos is an isolated incident or one that is going to be the beginning of a chain . What do you think . Well, we think its more idiosyncratic, maybe a oneoff here. Weve already seen for several years what the banking problems are in spain and portugal. The European Banking Authority and ecb already have some steps in train to help improve the situation there. Its also worth noting the Parent Company had accounting irregularities that go back to may. So it looks like this was probably a oneoff in terms of sants to. People clearly remember what happened a couple years ago. I should note were 130 points off the low of the trading session. Now down only 50 points. So were at technically the highs of the day. What do you do in this market . Sue, part of what were seeing is really making me crazy because this despirito santo is systemic of whats going on through europe and were not paying attention because the erb says we will do whatever it takes to keep everything going. Our markets are down 1 off the alltime highs. For all of the shocks with which our markets have been hit this thing is not going down. So we are really believing in the power of these central banks. Whether its the ecb saying well take care of our insolvency or waiting and hanging on word from janet yellen. Look, you ask me about investments, the market is not low. If the rule is buy low. So rather than trying to trade in, be very careful and buy solid companies with longterm outlooks that are actually earning something and dont pay too much for them. Paul, where would you put cash to work in this environment . Well, we still like the u. S. First. Europe and japan second and third in emerging markets last. We would tell longterm investors stay with your plan and put money to work on pullbacks in that order. I like that a lot. I almost like reading dr. J. Jay bryson, one of your colleagues at wells. This guy is brilliant, paul. Jay bryson, your chief international guy. We like him a lot. Good. Good guy. I learn a lot from him. All right. Thank you, guys. Appreciate it very much. Ty, up to you. Volatile trading day down, up, where will we end . Even the socalled smart money, taking a hit today. Hedge funds are getting hurt the most. Well have that for you. Plus, one of the nations top gun makers apparently reaching a major settlement. Scott cohn on the story. Scott . It is a settlement, tyler, involving a gun we first told you about nearly four years a i go. The most popular bolt action rifle in the world and allegations that it is unsafe. A followup on a cnbc investigation coming up next on power lunch. Tdd 18003452550 there are Trading Opportunities tdd 18003452550 just waiting to be found. Tdd 18003452550 at schwab, were here to help tdd 18003452550 bring what inspires you tdd 18003452550 out there. In here. Tdd 18003452550 out there, tdd 18003452550 there are stocks on the move. Tdd 18003452550 in here, streetsmart edge has tdd 18003452550 chart pattern recognition tdd 18003452550 which shows you which ones are bullish or bearish. Tdd 18003452550 now, earn 300 commissionfree online trades. Tdd 18003452550 call 18886486021 tdd 18003452550 or go to schwab. Com trading to learn how. Tdd 18003452550 our trading specialists can tdd 18003452550 help you set up your platform. Tdd 18003452550 because when your tools look the way you want tdd 18003452550 and work the way you think, you can trade at your best. Tdd 18003452550 get it all with no trade minimum. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 open an account and earn 300 commissionfree online trades. Tdd 18003452550 call 18886486021 to learn more. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. My motheits delicious. Toffee in the world. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. I never really thought i would make money doing what i love. We created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. He cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. Veggies youre cool. Reworking the menu. Mayo, corn dogs. You are so out of here ahh. The complete balanced nutrition of great tasting ensure. 24 vitamins and minerals. 9 grams of protein. With 30 less sugars than before. Ensure, your 1 dr. Recommended brand now introduces ensure active. Muscle health. Clear protein drink and high protein. Targeted nutrition to feed your active life. Ensure. Take life in. Volatility in the market and continuing. We did see a flight in the gold this morning and close up 15. Better than 1 gain on the trading day. We saw platinum gain 2 3 of 1 . A gun maker reaching a settlement over one of the most popular rifles. It was part of scott cohns original Award Winning cnbc documentary. And he has an update for us now. Hi, scott. Hi, tyler. The gun is a remington 700. Most popular bolt action rifle in the world. 2010 documentary remington under fire explored allegations that for more than 60 years remington covered the design flaw that caused the gun to fire without the trigger being pulled. We even tracked down the i venter of the triggering question. In 1948 before the gun went on sale he proposed a design alternative, laid out in this memo. A safety that would lock the trigger in place, preventing it from falling out of alignment and allowing the gun to go off. You had another design when you originally were doing this original. I had a design to lock the trigger, yes. But you dont know why they didnt use that in the first place . Yes. It had something to do with cost. 5 1 2 corrects a gun at the time but realming to be denied there was a problem and fought the lawsuits for decades. Now the company is settling according to court papers filed last week. They have reached a nationwide Class Action Settlement to be finalized by october. Terms not yet disclosed but the plaintiffs demanded a nationwide recall of the 700 series. That would be 5 million guns, tyler. Were expected a joint statement from the company in plaintiffs attorneys approximately well see if you get that. It could be done by october. October is when theyre scheduled to present it to the judge. Scott cohn, thank youer very much. Lets go over to dominic chu. The dow coming off the lows. Still in the red. We are seeing session highs. Pressuring the blue chip, home depot and nike and exxonmobil, caterpillar and gold machine saks. The single best performing stock in the dow is verizon. Telling cnbc that the company is not interested in buying a satellite company. He also said the company gained 1. 4 million subscribers in the Second Quarter. Sue, back over to you. Dom, thank you. Back to chicago. 30year bond auction. Rick santelli, how are we doing . It wasnt bad. It was a little above average. But it isnt the driving force today. Were down 3. 32 here and almost back unchanged to 3. 37. What a difference. We took away a month. Tenyear chart going around the 28th of may. 2. 44 low yield close. We went from comp being may 30th to june 30th because the intraday swing based on how much the bounce has been in yield. If we want to look at the epicenter, the portugal ten year and a whisker under the close of 3 . The last chart has been ignored. Dont ignore it. Breaking out to the downside on the dollar front. Back to you, tyler. Rick, thank you very much. Europe as weve been talking all day sharply down on debt fears specifically in portugal involving the Parent Company of a big bank over there. U. S. Markets are following suit for much of the day but they have snapped back as you see there now the dow downle only 45 points. Quite a change from 180point decline earlier. Kate kelly has been reporting on what hedge funds are doing and which ones are getting hurt by whats going on in europe. Kate . Ty, thanks so much. They may be watching the developments at the troubled portuguese lender. Pretty keenly today. I actually dont see indications that the hedge funds and other big investors financials aring baing off or taking major pain in the longer term. Why . Because theyve spent much of this year touting the yield opportunities in yoo up which they see as a longterm story and one situation is probably unlikely to up end their Investment Outlook even if it causes pretty messy markets for the day. Last week Carlisle Group are told our own kelly evans he was loving european corporates and bank assets and he saw the whole continue nenlt really as both safe and attractive for investing purposes. He followed Money Managers like marathons Bruce Richards who said European Bank credit was in a fire sell and yorks jamie dimon who called the bank lending the gift that keeps on giving from an investment perspective. Theyre not alone. John paulson made a bundle last year and theyve expanded now into other European Banks and Recovery Fund hoping for a double hitter. Dan loeb is in a similar spot after making money on greek bonds in 2012. He opened a hedge fund last year saying he likes both european Mortgage Securities and bank assets at the moment or at least he did as of his last investment editor. The market watchers i talked to said the portuguese issues are isolated or id difficult you sin kratic in hedge fund terms. Hopefully well hear more apartment delivering alpha next week. We really look forward to that kate. Delivering alpha starts next wednesday. The market is coming back. Down 43 points. These shares are getting hit hard. Shares of lumber lick question daders and potbelly both plunging 20 on the trading session. What these stocks might be signaling about the health of the consumer and housing, coming up next. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires 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. Welcome back. Stocks are reaching their session highs right now. S p 500 is down just 4 1 2 points, coming off the lows. Helping to lead the comeback for the s p are Health Care Stocks like cigna, like boston scientific, express scripts, merck, and c. R. Bard. Health care a nice source of strength. New clues about the health of the consumer on the housing front. Bob pisani looking at a dip in demand for Home Improvement projects and what thats doing to the sector. Nd diana olick is in washington with why consumers are not buying homes. Bob, youre up to bat first. Remodeling is not what it used to be in thats essentially the take away from Lumber Liquidators. Shocking people. Samestore sales down. Not up. But below expectations. Way below that. Tile shops is a competitor. Home depot, lowes, theyre in the same space. Home depot expanded offerings in flooring. A lot of people think thats unof the reasons that Lumber Liquidators is having problems. Home furnishing stocks, also weak today. Culp on the downside, upholstery for furniture. L legget and platt to the downside. We need morehouse hold formations, increase in home prices. One thing they can control is fewer stores. Sue, ill give you an example. Lumber liquidators, 2008. Right now they have about 340. They doubled the amount of stores. A lot of other companies have increased the amount of store in the last two years. We talk about being over malled in stores, a lot of retailers have not slimmed down dramatically. That is one of their problems, they expanded too dramatically. Thank you very much, bob. Despite the continued low slowdown in asking home prices across the nation. Americans cant afford to get into the game. Diana olick has that part of the story. Diana . Sue, Mortgage Rates are still attractive. Home price gapes are easing and unemployment is improving. But Housing Affordability is still out of whack. Despite the slowdown in price gains 97 out of 100 Metro Housing markets surveyed by trulia show year of year of price gains. Also, asking prices by sellers in june rose at their highest rate in 16 months. Up 1. 2 month to month. Wage increases are nowhere close to that. Now, Real Estate Agents are now saying sellers are more out of touch than ever with what buyers can stomach. In may 40 of sellers that were surveyed by red fin say they plan to list their homes above market value even though home sales are down 9 from a year ago. Now, todays buyers need down payment, good credit and they need a big enough income to qualify for a loan. The kicker is that rents are also rising fast. In fact, in eight out of the top ten rental market, renters are paying more than 43 of their income on rent. Now, why did i pull out that 43 number . Buzz that is the loan debt limit that mortgage lenders will allow for you to get a mortgage. Renters are paying more than that. How is that for your housing irony . That is a decision out there. Thank you, diana. Lets talk about this market because we are now down 30 points on the Dow Jones Industrial average. Briefly below that we were down 27 points. Kenny is here with me. Really dramatic turn around for this market. It is a turn around. I think that the sense after this morning after the whole bully comments and everyone getting nervous is that people took a step back and his comments are his view and he gets it. Janet yellen who is in control and made the commentary that rates are going to be where they are. Communication process is going to be very specific when its ready. And so the comments made people agree with him, is not really the way that the fed is going to take it. I think today, this afternoon, theres this kind of realization that, okay, we get it but its not nearly as what about europe . What about the Portuguese Bank . Clearly going to be a problem. Thats clearly going to be a problem. We saw that this morning. Certainly hammered europe and added this morning. See over here in the states. In the end people feel good about whats going on here in this country with our Banking System spop that will simmer under surface a little bit. Unless that really implodes, i think were okay. Its an isolated incident we are write it off. If its not, were going to go through a little volatility. Thanks, kenny. Appreciate it. Ty, back out to you. Thank you. Housing may be a drag on the market today but wait until you see the three homes we profile in our weekly feature, the power house. First, though, you have to guess what city theyre in. The city featured in todays power house is home to the nations first subway system. Business software and Services CompanyIron Mountain headquartered here. And its the birth place of actress u, mama thurman. 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. Ugh. Heartburn. Did someone say burn . Try alka seltzer reliefchews. They work just as fast and taste better than tums smoothies assorted fruit. Mmm. Amazing. Yeah, i get that a lot. Alka seltzer heartburn reliefchews. Enjoy the relief. Im jane wells in los angeles with news about American Apparel. I just got off the phone with cochairman alan moyer about the new agreement with standard general, 44 of shares in the company. He is saying that standard general in this new agreement agreed to stop buying new shares. Limiting the voting power for exchange for giving American Apparel 25 million. Five of the seven Board Members will now resign and they are going to get to supply three names for replacement. The other two will be a joint nomination by a stand dard general and American Apparel. All independent. Is this a ploy for charn any to take recontrol of the company . Standard general says its interest in American Apparel is not an endorsement of dove, in fact, he says its thrilled that standard general is coming on board because they are sharing the same goals. They have extensive experience in retail. They will not name them. He says the full slate of nominees should be ready for shareholders in 10 to 15 days. Out of that will be a committee which will determine whether or not charneys termination is valid. If he is exonerated it is possible he could come back to control American Apparel. The that happens he will resign and, quote, i will be the first to apologize to him. As for that 10 million loan from lion capital which it claims American Apparel is in default in because of charneys termination. He has been suspended for a month. And there is an investigation of whether that then triggers some kind of problem with its 50 million line of credit with capital one, mayor again says technically they are not in violation. They are talking to capital one daily, end quote. Capital one is comfortable with the situation. Finally, guys, is this having any impact on sales . Alan says not that i can tell though he says it has impacted the 10,000 employees. Back to you. Jane, thank you. It is power house time, folks. Weve been giving you hints as to which city were visiting this week, home to the nations first subway system. Can you name it . Austin. Boston. Be with us is p. D. Vineberg. Welcome. Lets give him a quick snapshot of the boston metro area. Median sales price is about 447,000. Inventory just over 13. 5,000 units. Properties are on the market for an average of 39 days. Today we focus on the north end. Intown listings, first one, p. T. , 142 commercial street, unit 401, listed as a shade up der 600 grand. Taxes, 6,000. One bedroom, one bath, 780 square feet of living space. This is a small place, p. T. Yeah, its actually abnormally large for a one bedroom, believe it or not. Theres even three bedrooms in the north end that will tend to be around 800 square feet. Its a really fantastic condominium. Its got corner exposure, southeast light. You know, el valter building which effort empty nestor demographic is highly desirable. High end kitchen and bath and phenomenal common roof deck with ocean views as well. It looks lovely on the inside at the very least. The exterior of the building looked nice as well. Second listing. 99 fulton, units three and four listed at 765,000. Taxes 6600. Two beds, two baths, 1100 square feet of living space. Tell me about this one, p. T. This is kind of that quintessential north end quick and breem. The north end has two main types of architecture. Theyve got the old narrow brown stones which were Single Family homes and apartments and this type of building which is usually a converted factory so you get the beams, the exposed brick and definitely a desirable place. This one has been renovated. Definitely a nice condo. Looks nice. And lets move on to the power house of the week. 234 causeway. Number 1203. 11 million. Two beds, two baths. 1300 feet of living space. It looks like a new building. It is. Relatively new. 10, 12 years old. Its abutting the t. D. Garden where the celtics and bruins play. Big differentiator for a building is that it has garage parking. Conceirge service, elevators, pretty highend finishes when it was done. A lot of units have been, you know, well maintained and renovated beyond what the developer did back in the early 2,000s. So really, really nice. Nice building. Great location. And fantastic unit. Thats terrific. P. T. , thank you. Thats what your money will get you in beautiful part of the north end of boston these days. Sue . One of my favorite cities. We had a volatile trading day and now a turn around for the nasdaq. Only down 44 points in the dow. More markets coming up next. F provokes lust. It elicits pride. Incites envy. And unleashes wrath. Temptation comes in many heartpounding forms. But only one letter. F. The performance marque from lexus. Welcome back to power lunch. The provider of i. T. Services to Health Care Organizations is at session highs. Earlier today announced that it bought uk based oasis medical solutions. In addition to that it upgraded the rating from strong buy to previous buy rating citing the company and top small mid cap stock pick. That stock is currently up about 4 1 2 toward session highs. Over toward seema mody at the nasdaq. We were down as much as 1 1 2 in early trade. Now down about 0. 2 or 8 points on the day. So social media stocks, one of the sectors that has been hit hard over the post couple of days. Also staging a major comeback. Large cap tag diversified. Many times seen as stable tech players are not down as much as the broader markets. Two bright spot theres, microsoft, adel la note to employees today did hint at potential organizational changes. The market seems to like that. Intel also bucking the downward trend ahead of its Earnings Report next week. Ibm also on the move. Lastly, want to hit biotech. Weve seen a lot of volatility in this sector over the past couple of days. Nasdaq biotech Index Trading in positive territory. Vertex and alexion pharmaceuticals. United continental bucking the downward trend. 3 1 2 increase in revenue during the Second Quarter. Shares sharply lower today despite new data suggesting that the companys experimental drug for muscular dystrophy helped slow declines in walking ability for three years. Emory higher, Regency Centers is offering to buy it for a 43 million or 22 a share. Three winners in todays volatile market. Thats coming up. But first, whats coming up on street signs, mandy . The data from around the world, the markets are well off their lows. We may even end up positive for the end of the day. Were going to see whether the market has been worried maybe about the wrong thing. Also, were going to be talking to the young lady who used to run a high stakes poker game. Lots of games, in fact, for some of the biggest names in hollywood. Very interesting story. Youve got to make sure you tune in at the top of the hour for street signs. During the cadillac summers best event, lease this all new 2014 cts for around 459 a month or purchase with 0 apr and make this the summer of style. Appreciate our powerful, easytouse platform. O no,thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you just set your start and end price. And let it do its thing. Wow, more fan mail. Hey ray,my uncle wanted to say thanks for idea hub. Oh,well tell him i said youre welcome. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. Yea, and these ideas are across the board bullish, bearish and neutral. I think you need a bigger desk, pal. Another one . Traders love our trading patterns, now with options patterns. Whats not to love . They see what others are trading like the days top 10 options trades by volume and get ideas yea i have an idea how about trading that in for a salad . So come trade at a place thats all about options and futures. Optionsxpress. Open an account today and get a 150 amazon. Com gift card when you call 18883303137 now. Optionsxpress by charles schwab. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. It has been an incredibly dramatic day on wall street. Right from the beginning, when we dropped 180 points. Now were only down 46 points. You can feel the momentum changing down here on the floor. Were down 46 points on the Dow Jones Industrial average. Were down only five now on the s p. It was down better than a full percent earlier this morning. The nasdaq is only off a quarter of a percent. Only down 11 points on the trading session. Take look at these stocks. Monster beverage, Archer Daniels, midland, and pitney bowes, now up on the day by 2 1 2 on monster. Archer daniels up 2 . Pitney bowes up 2 even though hey had tough times earlier in the day. Its going to be interesting to see if they can move into the green in the last couple hours of trading. The direction has been positive since that big falloff earlier in the day. That does it for this edition of power lunch. Street signs begins right now. Fear today, gone tomorrow. What a turn for stocks. In fact, as you just heard sue and tyler talking about there was a chance we could end higher. Find out why we have come back so far. Plus, mandy and i go to war over what really caused this mornings swoon. Have american restaurants reached what were calling peak food . And some new developments around the mission industry of sync tens, that former penny stock is in