Also today, the one thing to watch. One thing and one thing only in biotech that will likely move this very interesting sector. Sue is out for a few days. Sara eisen joins me from the new york stock exchange. Hey, always good top with you, tyler, technology on a tear. Energy stocks are in second, utilities in thing. Intel, sandisk, and broadcom all up. Tech arguably the most important component. Thats more than finances. Dominic chu has hunt fog value here to name some names. Here as the case. The overall s p secondo trades at about 18 times trailing earnings, so we looked at the s p 500 tech sector and found some stocks notable ones that trade at a discount to that level. You request see here, will Communications Equipment show byrne spending patterns, or could they be due for a bit of a pullback in first solar, believe it or not a solar trade, translate into a 15 up side for this stock so far this year, and solar always one of those sectors to focus on when it comes to more volatility. Then theres hewlettpackard, meg whitman trying to turn this exude around. Can they get things going. This stock has been an investor favorite after bottoming out last year, up 25 . Micron trades at 11 times earns, a chip company believe it or not, and this stock is up 53 . Thanks for pointing them out, dom. Burns mckinney is a division of al yanz global division, and also with us is john bucking hamm. Both of these gentlemen Like Technology stocks. Byrne, starting with you, forget the sexy names. Oldschool tech is where to be. Specifically from our perspective, we have a focus on dividendpaying stocks. Weve seen a bit of a rotation in recent weeks and months off sexy, the Cloud Computing names. Intel specifically, which has done very well. One of our largest holdings, trading about 15 times earnings. They have nearly a 3 different yield. In fact over the last decades they have raised a legendary rate. John, what about you . Within the broad realm of technology, where are you buying . Well, we also favor dividendpaying stocks for the prudent speculator. We have done well with names like apple. We like a hold of that quote unquote old tech, but where you might be putting money are the names that havent performed that well, so Something Like a symantec, broke Kay Communications would be another name, a Company Called avx. There are still opportunities out there in technology. We are overwraet technology, as you pointed out in our portfolios, and of course the interesting thing is the apple effect in the indexes, apple being such a large weight in the s p 500. Huge, yeah. As apple goes, sore of techland goes as far as that is concerned. We own apple, but we only have a 2 weight in apple, so were not market weight in apple, so we actually dont do as well when apple does really well. Apple is 13 of the nasdaq, while nasdaq is outperforming today. Final question, burns, what about the ones with the higher valuations which obviously are attractive, but become more vulnerable during selloffs. One of the nice things about dividendpaying stocks, even within tech, is youre not simply relying upon capital gains. If youre getting some of your return from a 2 , 3 , 4 yield, then when thing turns south that cash with compensate you. The tech sector is where weve soon some of the best dividend growth. Gentlemen, thank you for all those ideas and those names. Now to dominic chu for a market flash. Dom . Sara, not everyone is happy with Rupert Murdoch going after time warner, a double downgrade of issued to underperform from an outperform, arguing that fox would be better off getting its own house in order than trying to buy time warner. Fox currently down 2 . Cowen, though, also downgrades time warner to a neutral rating from a prior outperform time warner shares also down towards session lows, down by 3 . Tyler, back over to you. Dominic, thank you very much. Ukraines government issue as statement one hour ago saying the missiles that shot down two ukrainian jets over Eastern Ukraine were fired from russia. The russians have not yet commented. This video reportedly does show the downing of those two fighters this morning. Cnbc has not independently confirmed the all then tisity of that footage. This comes six date after another missile brought do you Malaysian Airways flight 17, killing ought 298 on board. To the next crisis, this one in the middle east. The faa now expanding the flight ban to and from israel for another 24 hours. 160 flights so far, 82, 80 from israel, have now been canceled after the faa made a move yesterday banning u. S. Carriers from flying into that airport. That after a groundtoground missile granded close to the airplane. Israel has said it would make another facility available to foreign flights, but insists bengurion is well protected and safe. Ed Prime Minister made that a hot topic of conversation today with secretary of state john kerry. Kerry is in israel trying to establish a ceasefire with hamas. Now on the left side of your screen, the fighting, and on the right side you can see the Ukrainian Army advancing against russian separatists. Tension also high in the south china sea, where china has been facing off against vietnam and japan over shipping rights. What does it immediate for the u. S. Defense sector . It is up 25 so far this year, outpacing the market as a whole. Shares of general dynamics, there you see them up 1. 49 today, northrop grumman, 13 cents higher, the defense contractor reporting better than expected quarterly profits today, but net income also fell from a year ago. Northrop griming reporting solid numbers. Boeing, thorks down, however, down by 2. 37 after reporting a 52 jump in profit. Well talk to an analyst in a minute about that, but first lets go to phil lebeau. Whats going on with boeing . Why is the stock sinks . Its the commercial side of the business, tyler. Thats where the sentiment is focused for investors. A lot of questions about cash flow, the remainder of this year, particularly on the commercial side. Thats why we look at shares of boeing. Theyve been under pressure all day long. At with you point the pressure let to about 20 points of the losses. Most people are saying, look, its likely staying in that territory for some time. On the defense side of the business, and yes, boeing gets a sizable chunk of its earnings from the defense side of the business. 7. 7 billion in revenue in the Second Quarter operating margins of 7. 5 . The military aircraft revenue of 3. 5 billion, the backlog, by the way, when you hear people talk about the backlog, about pa comes from the military side. As you look at shares of boeing over the last year, the thing to keep in mind is for investors, so much of whats happening with the stock right now is primarily driven by the Investor Sentiment when it comes to the commercial side of the business. So, sara, we always get these questions, especially when you see the order defense stocks up. Boeing like it is today, being under pressure, people wonder why is it moving up with the defense stocks . Good point, and weighing on the Dow Jones Industrial average. Phil, lang you. Jason gurski is with citi research. Two major themes here, defense cuts and the threat for more war, the need for more weapons, which one will win out . Oh, i think clearly the global instability will help sustain defense spending for quite some time. As it relates specifically to defense contractors, we see the governments are reacting to constrained budgets by reducing the outlook for the number of soldiers and their fleets, in order to sustain weapons spending, so that theyre prepared for future conflicts. Not a bad outcome for defense contractors. Weve already seen that in some of the manufacturing data, the outlays. Which companies . Can you name some names for us . Are specifically poised to benefit from there . This . I think clearly the biggest beneficiaries will be the companies that support things that fly and float. Lockheed martin, general dynamics, and northrop grumman. Also the outlook for the things that crawl around on the ground, army related, soldier related, are the things that will be under pressure. Jason gursky, thank you for the tips. Interesting things to follow. Positive news on housing, but underlying concerns in the data. Well explain that. Plus the next gen railings of investors, the mill lennial will control almost 9 2ri8 onin et cetera in just four short years. Where are they putting their money . What you need to know, when we come back. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Yyyup. With xfinity internet soyour family can use all their devices at once. Works anywhere in the house. Even in the garage. Max whats going on . Were doing a tech startup. Were streamlining an algorithm. Were going public [cheering] the fastest inhome wifi for your entire family. The x1 entertainment operating system. Only from xfinity. [ female announcer ] 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. Check out glaxosmithkline, the stock is nears session lows after the britishbased Pharma Company lowered the 2014 outlook on news. Sales slid a weaker than expected 13 , this as the long drugs struggled in the u. S. And a strong british pound hurt growth. Just off their session lows, sara. Back over to you. Always about currencies. On the home front Mortgage Application are on the rise, but theres still underlying concerns. Diana olick is in washington. Applications to refinance home loans rose 4 week to week. That drove the overall volume, but theres really nothing to write home about, because refinance volume is still down 41 from a year ago. Remember, a year ago rates had already taken a big jump up. Now, more important to watch is Mortgage Applications to buy a home. They were down 15 from a year ago right around a fivemonth low. Cash buyers are all over this market. They made up 32 of june home sales, according to a report from the realtors out yet. The chief economist called that, quote, amazing. I might call it concerning, given that cash investors continue to leave the market, and despite still very low Mortgage Rates that havent moved much, firsttime buyer largely lack the cash to compete in todays housing market, as rents continue that are climb higher. Renters are less been to save money for a down payment. Owens corping, whirlpool and eagle materials, which makes building products. Back to you, tyler. Diana, thank you very much. Major battle brewing between one key congressman an his family over socalled tax inversions. em is notafter has the story in d. C. Eamon . Now we have the radio el action provided by National Journal from senator joe manchin, a democrats, to the news that his daughters company, the kreismt off of myland pharmaceuticals, is engaging in a tax inversion. Her father is senator joe manchin of west virginia. This month mylan would announce it was invest in the netherlands, critics criticize these tax inversions, saying these companies are renouncing their american citizenship. Now National Journal has a new interview out with senator joe manchin, which he says of the daughters tax inversion, i think basically inversion should be absolutely repealed, all of them. Get them all. The senator apparently not agrees with his daughter ace decision. Heather bresch was on cnbcs cloib been last week before her fathers react. A remained overseas, so our country had no problem opening the borders and saying we want all the competitiveness we can get for our consumers, for everything else. What our country failed to do was keep pace and make our country globally competitive for corporations. If we want to sit here and have a discussion about how do we handcuff u. S. Corporations to the United States . I think thats impractical and quite frankly ridiculous. Tyler, as you know, these tax inversions are so controversial right now, i know i will be watching tomorrow when our Steve Liesman interviewed president obama at 5 00 p. M. To see if this issue of tax inversions comes up in that conversation. A very interesting one. Ty. Thank you very much, eamon. Lets check in with sara. Bioagain, watching the bioteching out with earnings. They were solid, but the most important number in biotech that investors need to be watching is out after the bell. Could this one number be the next big thing that fuels the biotech boom . Plus power pitch heads out to sea with your neighbors boat. One to two rentals per month. A owner can offset the entire cost of will the panelists be on board, or has the ship sailed . Stay tuned to vote with the power pitch panelists. Are you in or out with this weeks startup . Go to cnbc. Com vote right now, and get ready to start voting. Virtually all your important legal matters in just minutes. Now its quicker and easier for you to start your business, protect your family, and launch your dreams. At legalzoom. Com we put the law on your side. 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. Below wall street expectations, this after the companys Second Quarter sales also fell short of consensus views. You can see theyre down near session lows, off by about 10plus percent, sara. Back over to you. Thank you very much, dom. It turns out three dozens companies out with earnings today. Pepsi among them, the beverage and snacks giant beating estimates on both of top and bottom line. That despite a decline in carbonated drink sales. Whirlpool falling well short of estimates, and the appliance maker cutting the fullyear forecast. Delta flying high, the airline reporting a 17 jump in earns. Xilinx is plunging, giving a weak forecast. On that note, our jim cramer will be speaking to the ceo about the outlook ahead on mad money tonight. Hes also got a big interview with which pot lays ceo. Catch mad money tonight, 6 00 p. M. Eastern time on cnbc. Theyre certainly doing something right, tyler. Thanks very much, sara. Time for the power pitch where start upfounders get 60 seconds to convince a panel of experts that their company has what it takes to be the next big thing. During the pitch, you the view can grade it. You can log on to cnbc. Com vote, and give this pitch an a, b, c, d or an f. We want to know what you think. So get ready. This is todays pitch. My name is aaron hall. Im one of the founder of boat bounds. Its to make boating more accessible. In fact, the average boater only uses their boat 14 times a year. That means that 1 million boats sit idle over 4 1 2 days per year. As few as one to two rental as month, we prescreen and qualify every and include up to 3 million insurance and on the Water Protection for every rental. We have thousands of boats across the country, no experience is required, as many come equipped with a captain. Weve raised over 4 million a day. Weve picked exclusive Marine Partnership that is give us unrivals reach that will continue to fuel our growth this season and beyond. With hundreds added each day, look for boatbound in your city near soon. We have the managing pare of a hatchery, with a focus on technology. Also a partner in pereg ventures. Also with us is kanyi, hes at one of the first funds to focus on the sharing economy. Collaborative fund has raised more than 40 million and backed many companies. Joining us from syracuse is peter isler, editor at large for sailing world magazine. He cofounded american sailing association. Peter is on asas board of directors. We have a great panel, but aaron, you my dear, are in the hot seat. Would you like to throw the first question. The market size must be pretty large. Could you address that a bit, along with how you plan on acquiring the users for the platform and growing that base . Were looking to targets over 16 million boats that are actively registered in the u. S. I think one of the most exciting things about boat bound, we have a lot of the industry behindics with Companies Like brunswick. They believe as we get more young people, we can hope to raise sails for everything. My assumption is boating is expensive. Where are you going to find the demand for people willing to boats vary, all the way from 22, up to 18,000 a day, depending on your budget. A group of six people can get out on the water and boat for as also as 30 to 50. Im intrigued with the partnership with brunswick. Are they having their dealers promote boat bound to the entrylevel boater looking at a new boat in the showroom . Were working with not only their dealers, but their sea ray owners clubs, the bayliner owners club. Years ago when i wanted to become a boat owner, just didnt have the ability to buy a boat because of the location i was in, in d. C. , didnt have a slip. How many boats do you have in total to be able to rent out and how many more are you adding every month . Were adding thousands a month. Thousands a month . The growth that we have seen is, you know, is pretty exciting. I think our biggest challenge is getting them acinvestigated. Pell curate and review ever boat to make its its seaworthy and presents itself well on the web sites. It seems like theres a lot of competition out there. How do you address that . How do you plan to become the Market Leader . From a competition standpoint we have already lapped