Another 1. 37 higher today and there you see ice. Ice, ice, baby. Crude is up 6 since the first day of the summer. Another big report from the financial sector, this time its Morgan Stanley up 4. 5 . Better today, up big, and the financials are up 40 in a year weve got it all covered for you on this hot day. Sue is down at the new york stock exchange. Good to see you, ty, and as you mentioned we hit alltime highs for the dow and the s p. You see the big board basically today, its running very strong. 81 points. The nasdaq, no slouch there, either. Its near 13year highs, and more importantly to a lot of chartists, the russell 2000 is at alltime highs as well. That 10year note, the yield right now is trading just below the 2. 5 mark. Well show that to you in just a few minutes. Bob and warren join me now on the floor right now, and warren, with respect to the financials, the nasdaq has quite a bit of support under it in todays trading session. Absolutely, and you look for the financials to be part of that leadership carrying rallies. Weve been on top of that the last couple months mere, ahere,w that theyre joining the party, i think that gives everyone a sense that it could be good. I think thats very significant, its happened quite often. Its very simple. Mr. Bernanke, number one, has tamed the bond market. Thats the most important thing. And number two, while everybody complains about lackluster revenue growth, earnings are coming in as expected. 70 of the companies are beating earnings expectations. Were up nearly 40 in Earnings Growth. I agree, i dont like the revenues being flat. But were going to beat 4, 5, maybe 6 Earnings Growth in the fifth quarter and thats what people are expecting right now. Thanks, guys. Appreciate it very much. Ty, send it back to you. Day two of Ben Bernankes testimony up on the hill, he was asked point blank whether he was going to start tapering off in september. Steve joins us with the highlights. Steve . Tyler, you were there yesterday. Ben bernanke in day two of his testimony on the hill was asked about comments made by treasury secretary jack liu at delivering alpha. Lew told me in an interview if bernanke didnt end too big to fail, more should be done with tapering. If we end this year and we cannot say we have ended too big to fail, were going to have to look at other options. Now, senator elizabeth warren, the democrat from massachusetts who is big on these issues, calling for a revival of glass stiegel, asked bernanke about those comments. The timing, maybe i would take another year from now, but i said to you in another hearing that there is a strategy, dodd fradod doddfrank lays out a strategy. But if those things do not make us comfortable about the status of these largest firms, yes, i do think additional steps would be appropriate. Not out of the woods yet. Now, on monetary policy, senator chuck schumer, democrat from new york, if he didnt exist we would have to invent him, because he went right after bernanke on the issue of will the fed taper in september . The june meeting was only a few weeks ago. There have been some data points since then, and as you say, theyve been mixed. I think its way too early to make any judgment. Well be obviously reviewing the data, and what were looking for is a pickup as the year progresses. So thats it. If we get this pickup in july and august, i suppose were on track for tapering. But right now it sounds like a little even, 5050, i think right now, tyler. Just so you know more about him, he interviewed lew in the morning. Great show. Great show, thats right. Lots of dead, lots of 60s70s rocks. Thats right. Hi, mary. Lets keep it going. All you need positive is mary right here. Morgan stanley currently trading up at 27. 77. Stock up more than 35 in the last three months and Mary Thompson keeping the positive momentum going. A 15week high. A Share Buyback was announced, its first since 1978. This quarter is a new era for Morgan Stanley. Ceo joe gorman says the company is on more stable ground. Weve been on a long journey to achieve sustainment with businesses in the markets. That Business Model is solidly in place. Earnings excludeing items of 49 cents a share, better than expected revenue of 8 billion. Year after year performance in fixed commodities and currencies driving the results. On proposed rules for leverages in big banks, the firms Current Ratio is 4. 2 . The companys return on equity a major probability declining to 5. 4 . Citing onetime reasons for the decline, its still below that of its nearest rival goldman sachs. Im not sure you can call them peer to peer rivals because Morgan Stanley has that big thing going. Sue, down to you. Thanks, guys. There are three Major Tech Companies on the move after reporting their earnings after the bell last night. Ibm moving higher after raising its outlook and reporting better than ever Second Quarter earnings. The company did miss on revenues but its up 2 on the day. Ebay slumping after warning that results would be at the end of its forecasted range. Slower growth with its paypal unit. Intel also lower as the chip maker cut its revenue forecast as well as its Capital Spending plans. This is to adjust to weakness in the pc market. Its down to almost 4 . Phillip Morris InternationalSecond Quarter profits up in smoke falling 8 as it shipped fewer cigarettes. The company also lowering its full year guidance. The stock right now is still in the green just fractionally at 89. 75. A tobacco analyst with wells fargo securities. Bonnie, welcome. Nice to have you here. I was very surprised that they saw volume declines in all their major regions. What does that tell you about the future for them in terms of growing this business . You know, we knew this quarter was going to be tough. There have been a few disruptive excise tax increases that took place, so this was mainly expected, the volume shortfall. Keep in mind the story here is net price realization. That was stronger in the quarter. Another reason the Company Reported weak results is negative affects. They had a currency headwind and thats why their guidance was brought down, primarily and only due to the currency headwinds. So when you look longterm, were still anticipating the company will generate 10 to 12 eps growth, and going back to net price realization, thats going to be more than enough to offset some of the sluggish volume weve seen near term. They saw volume dedeclines, you mentioned, in development markets but they have made a big effort to go into still developing and emerging markets. How successful havey been at that . Very successful. We performed this big analysis on their business in asia. We looked out over the next decade. And we think their profits in asia can more than double, and a lot of that is driven by key markets such as indonesia, phillipines, japan is still a strong market, and this is, again, over the long term. So not only do we see continued volume and share gains, but importantly, price realization. Its more affordable. A pack of smokes is more affordable than a big mac, almost three times more affordable in the emerging key markets. This is another analysis we performed. We think this is strong and healthy. Thats a very interesting statistic. Bonnie, thank you very much. Appreciate it. Ty, back to you. Sto a company delayed on bells plan to take the company public. Bell says they significantly undervalued the company and he criticized the board yesterday at the cbcs conference. Ive never seen anything as bad as this. Ive never seen anything where they actually go out and scare their own shareholders. One guy wrote a headline that was perfect where he said they scared the dell out of shareholde shareholders. Scared the dell out of shareholders. There is just not enough support for michael dells plan. Dennis burman has been following this story. Is this all about getting dell to sweeten its offer . Of course, its about getting dell to sweeten, tyler. The fact the stock is up means theyre expecting a sweetened bid to come through. The reason it has not collapsed also means they think the deal is not dead. Were in a oneweek period here, are the people behind the dell buyoutgoing to off buyout going to offer more or do they say, were out of here . In the end, does the dell deal get done here . There are so many variables, but my gut says yes. There is so much at stake here for dell, the man, to get forth his idea of how this company will be evolving. I would say hes got to sweeten and that could come through in a number of ways. He could give the shareholders a little bit of the Public Company and keep that trading publicly while taking the rest of it private. If dell wins, does icahn lose . I would say yes, but icahn at this point is winning. I would have thought a couple weeks ago the shareholders would have approved it just given the numbers involved. But icahn right now is winning, and this is the real tension behind the deal, and that is, is the board going to be shaken up. This gives michael dell more a reason to get a deal done, because shareholders are so upset they might kick him and others off the board. Very quickly, are icahns criticisms of the board justified . We understand there is negotiation going on here, theres posturing going on here, but are his criticisms justified . I think people have to be careful about a swift storm, tyler, but i think he has very valid complaints, especially given when a serious owner and manager says, ive screwed up so much, i need to buy the company from the shareholders. Why should the shareholders get the benefit of his managing plan . Nice seeing you. Sue, back to you. Investor john paulsen made some big waves talking about how bullish he is on housing. Up next we asked where is your money best spent right now, on stocks or on real estate . Plus the westchester story of a mom running a massive marijuana ring. We will have that only on power lunch today. We head out to california where the weather is not cooperating because firefighters are still battling those towering flames. More power lunch in two minutes time. Ng ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Cdc still has men and women talking all over the country, and heres what john paulsen said on housing that created so much buzz. I still feel buying a home is the best investment any individual can make. Affo affordability is still at an alltime high. So if anyone bought a home last year, lets say 100 you put down 20, today that home is worth in 2012 a 60 return. Nice work if you can get it. Paulsen made a billion dollars betting against housing, and obviously from that statement he is bullish. Is housing the best investment . I was very surprised at his analysis, how he worked through it, and i think he has some very valid points for those, perhaps, who are a little bit nervous about equities, that housing really can be longer term a great investment. Diana . I wasnt surprised at all, and neither were the folks at realtytrac. They gave us a sneak peek at this report theyll be putting out tomorrow. It shows that flipping houses, remember that in the old days, buying and selling houses within six months, flipping was up 19 in the first half of this year, and the gross profit on a flip, up 245 from a year ago. Thats right, 245. So apparently the flippers are back in the game, theyre going market to market. Theyre not in the hot markets, remember. Thats where the big hedge funds and the big Institutional Investors went, but these individual house flippers are making a ton on flipping these houses because prices are up so much, sue. What about the longer term picture, though . Mr. Paulson was specifically talking about buying a home and living in the home, not the flipping aspect of it. Do you agree with his bullish analysis on that longer term . I do. Look, youre not going to see home price appreciation up in the 12 range as it is right now. Thats not going to continue and it will probably temper through the rest of this year, especially as Mortgage Rates go up. But historically speaking, housing has always been a good investment, it has always shown a solid, steady rise in appreciation when were not in a housing crash, of course. If you are looking to stay in the home long term for at least 7 to 10 years, and with rates as historically low, lets not forget they are historically low even though theyre up a bit, its still going to get you profit in the end if you are a longterm resident and holder of that home. Diana, thanks again, as always. Our yahoo question of the day concerns john paulson being bullish on housing, so where do you stand . Are you bullish on housing . Go to finance. Yahoo. Com and well have the results a little later. First check out utility stocks. They are on a roll again today. Look at those moves from public service, con ed, duke and the like. A woman is cashing in on pot. The woman known as the marijuana mom. The new york tabloids call her the marijuana mom. She is accused of running a multimilliondollar pot ring out of her wealthy home in the new york city suburbs. Youre accused of a massive pot grow operation. Is any of that true . See how the feds tracked her down and hear what the neighbors are saying, next. Only on power lunch. But most of them dont have the financial skills to handle it. Pwc is doing something about that. Im bob moritz, u. S. Chairman of pwc. Pwcs earn your future is a 5year, 160 million commitment of funding, volunteer hours and curricula to help prepare students for the Financial Realities that await them. Pwcs earn your future empowering students and future leaders through financial responsibility. Hooking up the country whelping business run empowering students and future leaders trains they haul everything, safely and on time. Tracks they connect the factories built along the lines. And that means jobs, lots of people, making lots and lots of things. Lets get your business rolling now, everybody sing. Norfolk southern whats your function . Helping this big country move ahead as one Norfolk Southern hows that function . Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. An update now on that california wildfire. It is still raging today and reports say it now covers 12. 5 miles. This is all happening right near palm springs east of los angeles. 6,000 people have been forced from their homes and 4,000 homes are considered under threat. We got this video from a friend of one of our producers. This is a separate fire. This one is in the city of los angeles in an area called frogtown which is right near the river. Fire season clearly upon us in california. And some of that has to do with the forecast. All this heat is not letting up. The weather channels paul goodloe is with us now live with an update. Paul, over to you. Thanks, sue. Again, it is hot across the southwest, hot across the midwest, and weve been baking here across the northeast. Look at our current temperatures. Plenty of mid, even upper 90s across the region, but it was not just the temperatures. It was just the temperatures a couple days ago, now you factor in the humidity, so it feels like to your skin when you add in the humidity, were talking over 100 in new york city, 104 in philadelphia. It feels like 103 when you head outdoors in our nations capitol. The big question is, how long will this heat stick around . Right now weve been pretty lucky in terms of not a whole lot of hot weather across the northeast. Thats changing now. Were still going to have a hot day today, a hot day tomorrow, but eventually as we head toward the weekend, well have the transition. By summer a bigger mass of cooler air pushes eastward and pushes through the big cities in the northeast, and that means our temperatures will cool down. But not tomorrow. Plenty of mid to upper 90s feeling warmer than that. Saturday, transition day still hot, but the evening could be storms and much cooler. Sunday, ah, theres the relief. Boston back to 78, new york to 86. But still, the concern now is we still have a heat advisory across the northeast in the yellow and some of the peach colors, those are excessive heat warnings. Hartford, connecticut, even in providence, rhode island. Tyler . Thank you very much. We turn to a hot story in the new york area. The new york tabloids have dubbed her the marijuana mom. Cnbc has been tracking her every move since her arrest. She has the story youll only see today on power lunch. Reporter youre accused of a massive pot grow operation. Is any of that true . She walked into the courthouse totally alone. Amanda sanderlins life completely busted open. A suburban mom and budding confebudding equestrian. Could she really be the alleged head of a drug enterprise . Her covert operation, like a scene out of the hit show we, a show about a mom who runs a marijuana ring. Corey wingrad. This is not life i mitating art. This is real life. Reporter a mom living in one of the wealthiest communities, cruising around town in her big suv, even board ing a horse at this bronxville farm. But prosecutors say she kept all of this on the down low. A warehouse in queens loaded with pot worth 3 million on the streets. According to court documents, the address linked to a business she called fantastic enterprises. She kept a low profile, so you could tell there was something not right. Reporter the secret under wraps until prosecutors say a cooperating witness fingered sanderlin, even telling them he saw andigiving other growing seedlings to others. Details in court documents. Day after day they spotted sanderlin leaving her house in scarsdale and driving to the warehouse she leased in the heart of queens. Neighbors there say she would pull up and rushed to get in. She had a button on her truck, so she opened it before she got to the door. As soon as she got in, it would close behind her. Reporter and inside, worlds away from subur birbia. She had growing lights and ventilation systems. I saw when they installed those ventilation systems that were on the roof. Reporter this mom lives across the street from the warehouse. She said she saw sanderlin come and go but had no idea what was going on behind the gate until now. She was like th