Dominic chu is standing by at the new york stock exchange. Whats the word on the floor . The word on the floor, first of all, the s p 500 closed at a record high just about one out of every five trading days so far this year. Cnbc data crunchers look at the s p and said, hey, 17 of the times or 27 times this year, weve closed at a record high for the s p 500. So not too shabby. The odds are good. Now, if you take a look at the overall picture for where the markets are headed, weve seen a nice move higher, despite fed concerns out there. Look at the sectors leading the way, financials and technology. The biggest sectors in the s p 500, that gives the bulls some bullishness or bullish feel about the whole thing. Take a look at some of the stocks that are moving. Big names like hormel on earnings. Look at other ones, because ebay and hp doing well on their particular moves and staples on the downside on their earnings results. Overall, a nice move higher despite the fact we have a lingering fed and comments coming out tomorrow. Back over to you. Thank you for that. You mentioned the fed heads are gathering in jackson hole, wyoming. Steve liesman is corralling the big names out west, get their thoughts on when the fed will begin to act. The economy is already showing signs, so as we look ahead, does the economy look like its able to sustain this . I think it signals a very important Decision Point for the committee. To say, we will have to move at some point. I dont want us to be behind the curve and beginning to normalize Interest Rates. I think the thinking around summer of 2015 for the first rate hike is a reasonable guess given where we think the economy is going and, you know, how much progress were making toward our goals. But, again, it really depends on the data if, if the data gets stronger, it could be earlier. If the data disappoint, it could be a little later. Were getting nine starts worth of investment device. George young, joining us. Brian, comanager of the four star rated chase Midcap Growth Fund is with us as well. George, lets start with you. Youre saying when Interest Rates go up, thats when the bond bubble pops. That makes me very nervous. Its not much of a move before Interest Rates move upward. That means Something Like a 2. 4 yield moves to a 2. 75 . You lose 3 of your money just like that. A lot of people havent experienced that. Thats something that makes me nervous. Theres a good saying, its like picking up a dime in front of a steam roller. Thats a scary thought. Brian, what do you think, Interest Rates go up, not necessarily bad for stocks. Its not bad for stocks, susan. Look at the year leading up to the Interest Rate hike, the fed is hiking rates because the economy is improving. What were optimistic about is, in that kind of environment, people start focusing a little more on the individual stocks and a little less on the macro. And a stock picker than really add value in that kind of environment. George, i was looking through your stock picks, when Interest Rates go up, doesnt that crimp consumer demand . Some of your stock picks are focused on consumers. One we like a lot is sutherbys. I dont disagree with brian. They have a duopoly with christies. You might think of it as a rich mans stock. Other hand, there are always people who need to sell or buy because of death, debt, divorce, or discretion. People have their picassos. That may be a lo of outside of the realm for a lot of viewers today. But this is a company that can make money all sorts of different operating environments. We love the stock. Its cheap. They have a lot of interests from activists nowadays and going to froth things up a bit. We love the opportunity. Brian, why do you think midcaps are the place to be . Midcap s historically, a gd place for exposure, different than large caps. Not as much risk you take on if you get into the small cap space. George, lets get back to the markets. Have you seen the selling done for year . I thing therek theres a lot upside. As one of our student investors said, its a little like fishing, little luck, little skill, maybe throw in a little beer sometimes. Theres a little bit of luck. We think weve had good skill. George b, brian, thanks for your time today. Lets get a market flash. Airlines are moving lower today as investors take profits from the recent runup, a number of them yesterday, jetblue had gotten upgraded. United continental, american, delta, all of them are losing ground today, though. And one new tidbit if youre flying, seems like united is trying to win back business travelers who defected to other carriers following its rocky merger with continental and think the stomach is the way to go. Its upgrading its first class food options and replacing snacks with full meals on some of its shortest flights. The move comes as american e limb neas hot meals on most flights that are less than 1,000 miles. Take a look. Theyre all a little bit lower, but united upgrading food, tyler. You know the way to a persons heart is through their stomach. All right. Thank you very much, bertha. You know, airline food existing home Sales Numbers for july up 2. 4 . Their highest levels in ten months. Dia diana on that and the impact of possibly higher Interest Rates and what that could mean to housing. She comes to us live from washington. Di . Reporter well, ty, youre right, look, sales of existi ii homes in july beat expectations slightly, probably due to smaller price gains and more supply on the market. Lets look at the data a little closer. As you said, existing home sales rose 2. 4 from june but down 4. 3 from a year ago. Realtors saying last july was the cyclical peak when investors ruled the market. Their share is down to 16 . All cash sales, though, still really high at nearly 1 3 of this market. The median home price in july still up nearly 5 year over year. Prices had been jumping in the double digits last year, sidelining mortgagedepend buyers as rents continued to rise. Now a new report from zillow says 94 out of the top 100 house markets are affordable today, but renting is more expensive in 88 of those markets. That could change if Mortgage Rates rise. Thats what were all talking about, right . Rates hit their lowest level of the year last week at 4. 12 on the 30 year fixed according to freddie mac. It was 4. 58 just one year ago. Were already coming off that low. As investors are moving back into the stock market. They moved out last friday when we had all the trouble in ukraine. The expectation is those rates will rise. Question, of course, is how much it will, of course, affect housing . Tyler . Diane that, thanks very much. Ceo of Coldwell Banker. Nice to have you with us here. Thank you so much. Lets talk about a couple things. Were going to get to Interest Rates first. Diana said 1 3 of all sales are all cash. Is that what you see . That is correct. We started to see cash sales tick down slightly, its highly irregular considering the business mix is changing. A lot of that was simply due over the last couple years by everywhevirtue of investor acti. In that place, were moving back to a more normal traditional market. Traditional buyers are coming into the mix. Those with cash are leveraging it. You know, Interest Rates are obviously a key factor in the purchase decision. How much is people people buy a house, they buy the Monthly Payment, i believe. How much can i afford . Okay . If Interest Rates go up, theyre down from where they were a year ago, over the next few hows that going to affect your sales and prices . Well, of course, theres always a correlation between overall activity and Interest Rates. The only people that would be really concerned about where Interest Rates are headed in the near term would be the individuals who didnt have the Historical Perspective on Interest Rates. If we see Interest Rates tick up, which they probably will, thats a sign of a strengthening economy. The fact is its still going to be an incredible environment for buyers who are ready to get into the market. Whats more important in the housing market, Interest Rates or job gains and income gains . Certainly on the long run, as we move back toward a more traditional market, we know that as the investors leave, traditional buyers coming in, and thats all about the fundamentals of real estate which has always been lifestyle choices but fueled heavily by overall job growth, wage growth, confidence in where the National Economy is going. If you dont have a solid job market in your town, youre not going have a solid real estate market, right . I think this is a sign of the continuing recovery. As we move from a National View to the local view. In those markets where theres strengthening, job opportunities, and economy is moving, those are the areas where were seeing the greatest growth in market activity. I want to talk a little l more about Interest Rates. You say, okay, two back to the person who goes the only person whos affected by it is the person who doesnt understand that rates are h historically low. If the fed raises interest points by a half point by this time next year, we go from zero to. 5 of 1 and Interest Rates on mortgages go from 4. 1 to 4. 75 , lets say. I hear you. You werent here when rates were 9 . You werent here when rates were 6 . But that buyer remembers when rates were 4 and that buyer knows that their Monthly Payment on a house went from 1,100, potentially, to 1,400 potentially. How do you answer that . Thats got to slow sales and price gains. Certainly theres a psychological aspect that plays into this, but in the long run, people are going to start to have a more holistic view of what the market is, and as Interest Rates start to tick up, the other thing were seeing is a compensating balance is the fact that the price increases are decelerating which theyre moving back to kind of from an unrealistic kind of pace that we double digit have seen over the last couple years down to a pace which one could be considered normal and probably in the long term tied again to inflation. If rates start to move up, do you think there will be a surge of buyers that come in and say, man, i want to move now because i dont want to wait and pay 4. 75 a year from now. Traditionally thats the case as you know. You expect it . Of course. Thanks very much zblau. Hi, tyler, ebay is coming off of its highs. Reuters reported that ebay says its stance on the paypal spinoff has not changed. Earlier the tech website, the information, citing sources reported the company had been telling potential paypal ceo candidates a spinoff could come as soon as next year. Ebay shares currently up about 4. 25 . Susan . Lets check in on other headlines as well. Bank of america is up after reaching a 16. 65 billion deal with regulators to settle charges that it misled investors into buying bad mortgagebacked securities. A retailer whos doing well, childrens place posting better than expected results and Third Quarter and fullyear results are in line with expectations. Speaking of retailers, amazon, u. P. S. , sears and more, who will win the battle between clicks and bricks . Well be talking with retail serial startup mogul kevin ryan, who sold one, invested in one, sold to yahoo for half a billion, and another has wall street sal investigate salivating for an ipo. Do you think its safe for drones to deliver packages in the u. S. . Thats another retail question for you. Vote on our website, cnbc. Com vote. [ dog barks ] [ male announcer ] imagine the cars we drive. Being able to see so clearly. To respond so intelligently and so quickly, they can help protect us from a world of unseen danger. Its the stuff of science fiction. Minus the fiction. And it is mercedesbenz. Today. See your authorized dealer for exceptional offers through mercedesbenz financial services. 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. Welcome back to power lunch. The dow back above 17,000 for the First Time Since july 29th. As it closed in on record highs, the blue chips are currently trading up here. About 75 points. Take a look at the leaders. Jpmorgan chase, j j, intel at a new 52week high, walmart and coke coca cola. Double click, sold to google to 3 billion and two startups, tech company mongo db. Also an early investor in hot jobs which was sold to yahoo for half a billion dollars and found business insider, shop wiki. Kevin, welcome to power lunch. Great resume there. Lets talk about the headlines this morning. U. P. S. Reporting a credit card data breach. Simon hawes reporting that u. P. S. Cant get the addresses of some of these people whose credit cards have been stolen from. So what do you make of this news flow . So, i think theres always going to be threats on the security side. Its actually not as severe as people want to make it out to be. Theres been shop lifting in stores for 100 years. Its the cost of doing business. Same thing here. Every retailer is very concerned about it, mostly from a brand point of view. Reality is consumers are generally protected on this and so we need to were all worried about it as retailers. I think it will be managed, a constant battle for the next 50 years of cat and mouse between security internally and hackers outside. Yeah, what about etailers versus bricks and mortars . We heard from sears reporting a ninth straight quarterly loss. Have you heard the death knell . At the same time, youre seeing other retailers doing well. Different types. Single brands. Tory burch, michael coors hitting record highs. What we are seeing is that, you know, the share of market is going to go online. Thats a continual trend for the next 25 years were going to see and its only just begun. What about ewail tailers trying to get sb bricks and mortars . What do you think of the trend were seeing . I dont think its an enormous trend. If you looked at it, youd see maybe five examples. Most from marketing. If you start one new store, you get a lot of press for it and allows people to visualize your brand. Could be a loss leader. I dont think youre going to see most of the brands going with an enormous foot print over time. Their businesses are more efficient online. Theyre going to stick with that. Youll see people trying and sampling it. It will be small. One trend people want to reverse is about this question of diversity in silicon valley. Google and apple, most of their workers are primarily male and caucasian. What do you think of the diversity question . The diversity question is a huge challenge in our country. When you look at the tech companies, thats the end of the line. The core problem is that probably 85 of Computer Science degrees are going to men. If you dont have a Computer Science degree, its hard to work as a programmer in a very technical company. The Senior Management team is about 75 women with a woman as ceo. We obviously dont discriminate against women there. Having said that, 75 , 80 of our programmers are male. So thats just reflects the industry out there. I have four companies, you know, zola and guilt have female ceos. And very successful. Ecommerce in general has a lot of women. But the core issue that is not easy is how do we get more women to major in Computer Science . Kevin, youve been called a disrupter. One company thats disrupting is amazon saying they could test drones in india. I want to talk to the viewe ere and want them to weigh in. Do you think its safe for drones to deliver packages in the United States . Go to our website, tell us what you think, cnbc. Com vote. Kevin, what do you think of this move from amazon . So i dont think its a technical problem. I think its fun to try. I dont think it scales. So, you know, i live in manhattan. So theres probably, you know, a 5,000 people in my building. If were getting 2,000 drones a day, i dont think thats going to work. In suburbia, selectively, if its a high value added product and very light, could it be used in some cases . Yes. I dont think people want to see 500 drones over their building right now. And the reality is u. P. S. Works pretty well. I think whats going to be a bigger trend, which were seeing is samedelay delivery. Large companies being able to deliver things same day. Thats really about as good as a drone. But more efficient and cheaper over time. Lets lock in the vote. Is it safer for drones to deliver packages right here in the United States . And were looking at the poll results. 62 say never. 23 saying totally. 15 only in rural areas. I want to thank you for sharing your time with us. Thanks for having me. Tyler, over to you. Susan, thank you very much. Fords struggling brand going hollywood, Matthew Mcconaughey to be its new pitchman. Mcconaughey will debut in an ad next month introducing lincolns sports utility vehicle. Mcconaughey will act as a storyteller in a series of tv and digital campaigns. You may recall mcconaughey starred in the movie can the lincoln lawyer whose character was a defense lawyer who drove around town in a lincoln town car. All the way, mcconaughey. And they may not be as sexy and shiny as new cars, sexy, but used vehicles have become far more profitable for dealers and we want to hear from you, is it a better deal to buy or lease a new car or a used car . Go to cnbc. Com vote. Cnbcs phil lebeau is at a used car dealership in mattison, thats mattison. This is a place where they buy and sell used cars that will eventually end up in dealerships. Look at this bad boy right here. Looking at a late model vw jet tax thats going to go down there. Lets see what the opening bid is. I believe the opening bid, this is an actual bid going on now, tyler. Theyre going to open that thing, 1,700. Thats not what its going to sell for in a dealership. What youre seeing here, theyre going to process 3,500 vehicles will buy and sell and eventually take to their dealerships or ship from their dealerships. What youre eventually seeing is the marketplace showing greater demand for used vehicles. In fact, the demand is so strong, thats the reason weve seen prices moving up over the last six years. In fact, since 2009, really, weve seen a big increase. Going up to an average price of just over 12,000. There are 41. 5 million used vehicles that will be sold in the u. S. This year. And whys the business so lucrative, so profitable, and so many dealers are here . Because the Profit Margins are far greater. In fact, they were up 13 last year. The profit margin for a used vehicle is about 2,300. Almost double what it is for a new vehicle which is 1,200, and for manheim, they believe this is the best place for dealers to actually see the vehicles that theyre selling and whether or not it will be a good deal. One of our buyers this morning who said, i asked him, do you buy cars on the internet . He said, i want to be here, i want to smell the tires, kick it, look at it. I can do a better job buying it for less and selling it for more and thats my advantage. Reporter theres so much demand for used vehicles. Look at this. 5,000, if you were to spend 5,000 on a vehicle ten years ago, look at how much lower the mimage was in terms of what youd get at a dealership compared for what youd get for 5,000 today na. That speaks to the demand in the marketplace. Look at the shares of publicly traded dealership stocks. Keep this in mind, were seeing more dealership groups opening up dedicated used vehicle lots because demand and the sales are there right now. And as we wrap up this auction here, whats the last vehicle we have there . A chevy caprice. What was the last price we had there, art . 2,000. Reporter 2,000, tyler. There are 2,000 and that car could have been yours. I think you want to be an auctioneer. I think thats in your future, baby. I think you want to be an auctioneer. Reporter theres no way i can talk phil lebeau, thanks very much. Reporter yeah, its right there. Lets lock in the vote. Two out of three think a used car is a better deal than a new car. Theres the proof in the pudding right there. Susan . Okay. Tyler. Remember this . Our own reporter surprising aeropostale did you feel the need to steal 25 million more . He did and has been sentenced for it. How harsh was his punishment . Well tell you next. Plus, its called a massive pyramid scheme that moved more than 100 million and sucked in thousands of investors. Authorities say the man who was on top of it all, a bestselling author, a notorious infomercial pitchman. That story coming up right here on power lunch. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. 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Call the number on your screen right now. Welcome back to power lunch. Tmobile sliding, though off its lows, after revealing a Referral Program that allows customers to bring someone from another carrier on to their plan. That means both customers would choose the cheapest plan, and lock in unlimited data for a year under that promotion. Its not sitting very well with tmobile investors, though. The stock currently down about 1 . Tyler . Bertha, thank you very much. Crime as the saying goes, doesnt pay. And as a former aeropostale merchandising executive found out hes going to have to pay up bigtime after defrauding the company attend taking more than 25 million in kickbacks from a vendor. Our own andrea day confronted him about a few months ago. How are you . Good. You made 20 million no, no, no. Legitimately, did you really feel the need to steal 25 million more . Really, this is crazy. How greedy are you . The answer is greedy enough that he was sentenced to eight years in prison yesterday. He was also ordered to forfeit more than 25 million and pay the company 13. 7 million in restitution for his crimes. And in todays crime and punishment, a former famed infomercial pitchman is now behind bars. A judge called him deceitful to the core. While being investigated for one scam, he was secretly building another. A massive pyramid scheme that moved more than 100 million and sucked in thousands of investors. The promise, he would reveal the valuable secrets of the 1 . You could basically create a perpetual money making machine. Would you like to lose up to ten pounds in the first 24 hours . From weight loss, to get rich quick schemes, even cures for cancer, incredible claims that helped Kevin Trudeaux build an impeer. Had his only personal butler in the house. Everything. His fans handing over truck loads of cash even after the government said hes lied. Lied to consumers thousands of times and the ftc. This for going on tv with wild claims from his diet book. He ran the infomercial approximately 32,000 times. Essentially none of the things he said about the Weight Loss Program on the infomercial were true. While the fccs case was heating up in court, he was deep into another scheme called g. I. N. Information Information Network is a pyramid scheme that he designed and operated largely for his benefit. He claimed he founded g. I. N. With a group of international powerhouses. And this 30member council held the secrets to becoming rich. These people are billionaires, multibillionaires, control Major Industries around the world. And tens of thousands of followers were convinced. Even though trudeau refused to identify council members. The way he talked about the council was huge people in power and run the world right now. I even thought our current president , barack obama, might even be in the g. I. N. Council. Abe husein invested in fwvmg. Telling people were going to have g. I. N. Yachts and clubhouses around the world is. He shelled out for committees like this one, under cover, where the socalled secrets of the 1 were handed out. Shake hands, how to it is one of the best moneymaking opportunities of all time. In just a few years, investigators say g. I. N. Generated more than a stunning 100 million in revenue and grew to some 35,000 members. But according to prosecutors, only trudeau and a few others were getting rich. Most g. I. N. Members never saw a dime. Why would he come up with a bigger scam . Was Kevin Trudeau using the g. I. N. Network to conceal millions of dollars . Yes. In fact, cohen says g. I. N. Was creating to make trudeaus assets difficult to trace. His response was he was never going to pay it. Nevertheless, he found approximately 7 million to both fight the ftcs claim and also to make his assets more difficult to locate. When trudeau didnt pay the judgment against him from the ftc, he was sentencined to ten years in jail for criminal contempt and unbelievably from behind bars hes reached out to his followers asking for money to appeal his case and some are actually still donating. Back to you. Markets are looking like were looking at a higher session here on wall street. We have a selloff taking place on gold pricing. Closing right now and selloff of 1. 5 . Fixed income space, lets get to the bond markets. Rick santelli tracking the action at the cme. Rick . Reporter thank you, sue. This is an important day watching all markets. The fed does have quite a bit of power. Debate as to how theyre using it. Look at a chart of existing home sales. Fiveyear chart. Good day today. Up 2. 4 . Open it up to a 20year chart, maybe a better perspective. Look at a twoday chart of tens. Yields drifting lower. Hey, the stock market higher. Yes, it has to be jackson hole. Sense 1st, dollar index, its cooking in grease. Why . Euro is also at the lowest level since september. Tyler, back to you. Rick, thank you very much. Sending students into danger zones. Lycike ramallah. Thats one way indiana universitys kelly school of business stands apart from many other mba programs. What is else on the curriculum . Were going to ask kelly professor, phillip powell, next. Plus todays powerhouse is the birthplace of singer, prince, targeted is headquartered here, and it will host a 2018 super bowl. Can you name that city . If energy could come from anything . Or if power could go anywhere . Or if light could seek out the dark . What would happen if that happens . Anything. Starts at 6 30 a. M. On the vo rush hounose. Und here but for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. S p 500 setting a new record high. The dow back above 17,000. Dominic chu at the new york stock exchange. Yeah, so susan, what weve got right now is a situation where we are at, again, record highs, intraday for the s p 500. Session highs right now for both the dow and s p. If you look at where the action is, you got to look at the financials. Its been a while since weve really talked about them and its not just because the b of a settlement, though that has some impact on the overall markets. Look at the big names. Hudson city bank corp, sun trust, regents financial, bigger names are catching a bid in todays trade. Remember with the financials were talking about the seconds biggest seconder in the entire s p 500. Traders are starting to pay a little more attention because theyre seeing big tech names and financial names. Tyler, leading the way higher. Keep an eye on those as we head toward the jackson hole comments tomorrow. Dom, thank you very much. Indiana university kelly school of business stands away from mba programs thanks to a powerful Alumni Network and truly maverick curriculum including a business of medicine degree for doctors specifically grappling with obamacare and theres also a third world Immersive Program where students are thrust into danger zones to help Small Businesses get off the ground. Lets go back to Business School with kelly professor phillip powell. Professor powell, welcome, good to have you with us. Hi, tyler. Youre the faculty chairperson for kelly direct which is the schools Online Program ranked number one by u. S. News. We celebrate disrupters in business. I know in Business Schools. But ive got two questions. Sure. Is Online Education the future of Higher Education in america . And specifically Business School education . Thats number one. And number two, do your fellow professors at indiana celebrate the disruption that Online Education will bring the way we typically celebrate disrupters . Well, tyler, weve been Teaching Online for 15 years. We were early in this marketplace, our faculty quickly embraced it because we live and die by innovation. We have to practice what we teach. And we teach our students to be disruptive in order to beat their competitors. So, if were not going thdoing dont embrace that, were not being true to our mission. Absolutely, that culture of disruption defines who we are at the Kelley School in bloomington. But there must be people on the faculty, not just at the Kelley School, but more broadly in bloomington who say, we have a lot of build rings we have to fill, dorms, all of this infrastructure we have to take advantage of, and, you know, online doesnt do that. Who we are, tyler, were not our buildings, we are what we teach. Were the knowledge we deliver to our students. We have to rise to the occasion and set the example of how you compete in the marketplace. So our faculty celebrate sort of liberation of new ways to teach that technology delivers. So theres no fighting the old. Were embracing the new. I like what im hearing here, professor. Lets talk a little bit about a couple of your innovative programs. One is one under which some of your folks get to go and spend a couple of weeks in stressful business zones. Whether its botswana, ramallah, or any number of countries in latin america. Where you say part of your goal is to make them uncomfortable. Why is that a good teaching tool . You know, if we want our students to have Extraordinary Solutions we have to provide an out of ordinary experience. When you take students out of their comfort zone, they have to question their assumptions, and they have to think on their feet and apply what they have learned. Everything theyve learned in the mba program fuses and they have to deliver a solution for a Small Business on the ground. And when those stakes are high, failure is not an option. And our students rise to the occasion. They come back to their job, they come back to the campus, theyre better managers than they were before. Truly transformative experience for them. I can well imagine that. Id love to talk more about it, but i done want to neglect another thing that you all are really pioneering. One of the few in the country, mba program for physicians with a particular emphasis on how to deal with the brave new world under the Affordable Care act. What is included in the curriculum, whats on the syllabus . Our curriculum, we purposely do not use health care examples. Our students want to learn examples from other industries because they feel that the market and the industry is so dysfunctional that they want outside ideas. And we purposely structure the curriculum so that theyre in teams, theyre working in teams. Theyre learning to be managers through examples and through cases. So they can go back into the clinic, they can be better doctors in terms of arranging the resources their patients need. These are practicing physicians who do what . Is it partly online and partly in residents . We leverage our online expertise. One weekend a month where the students come to campus. Theyre practicing physicians. We purposely structure things so they go back to the clinic on monday or tuesday and apply what theyve learned. Not only are they healing people, but theyre managers. They have employees, they have budgets, they have contracts to sign. And so we encourage them that when they head back is to use the clinic almost as the classroom. To apply what theyre learning. We see a very Rapid Transformation in their ability to deliver health care in an efficient and even more patientfriendly way. Professor powell, thank you very much for being with us today. You taught us a lot. Thank you, sir. We appreciate it. Phillip powell of indiana universitys Kelley School of business. Yahoo finance question of the day, bank of america paying 17 billion to settle allegations it sold risky mortgagebacked securities to investors before the financial crisis. Is 17 billion excessive . 21 of you say yep, too much. 20 say its perfect, the government bailed out the banks, after all, and 52 say, no, it should be even more. Susan . Thanks, tyler. He was a top regulator for years criticized highspeed trading firms. Now hes working for them. Youll be surprised who he is. Plus the city featured in todays powerhouse is home to the largest indoor theme park. Medtronir is headquartered here. Its may Unemployment Rate came in at a low 4 . Can you name that city . An unlimited Mileage Warranty on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through september 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of Fidelity Investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back to power lunch. Famous for slamming high speed trading firms. Now hes going to work for him. Eamon javers posted a fwragreat story on cnbc. Com and is live for us. He was famous for calling High Frequency traders cheetahs and saying they were just like the fast and potentially dangerous animals of the african plains. Well, now bart chilton has left the cftc, gone to the lobbying firm here in washington known as dla piper and the modern markets initiative, a trade Association Just announced today bart chilton will be working with them as they help unveil a serious of proposals throughout this year on what should be done in terms of regulation and hft. So bart chillton working alongside the lobbying group for High Frequency trading. Take a listen to him talking on squawk box last year about what he thinks about High Frequency trading. Ive been sounding this alarm on your show and a lot of places for three years now, and i want to keep them in the narcotmarke. Theyre important to the market. Im not so sure theyre not just a new version of the floor trader and new middleman. And if theyre only holding liquidity for two or three seconds and theyre really not were not transferring any risk, im not so sure that thats as valuable to market as it once was. I talked to bart chilton earlier today. What he says about all this is hes not changing his position on how frequency trading. He says he Still Believes there needs to be regulation for High Frequency traders. He Still Believes there needs to be kill switches for some of these computerized algorithms. What he said is hes going to help the modern market nir initiatives unveil its series of proposals and not going to change his stripes so to speak. He did say hes probably not going to call them cheetahs as much. Thank you very much, eamon javers. Powerhouse time. Home to target. Will host the 2018 super bowl. I bet you know what city it is. The beautiful city of minneapolis. With us, matt baker, realtor with Coldwell Banker burnett. Heres a snapshot of minneapolis real estate. One of the most lovely Livable Cities in the country. Median sales price of a home 226 grand. Inventory, 12,000 properties on the market. Average time on the market, 69 days. Were going to focus on the downtown as well as the nearby lakes region. You know, people love it out there, you know, to live. And take us through this first listing, if you will, 103rd avenue south. Taxes, 66,0 6,000. One bed, two baths. This might be right downtown. Yes, tyler. Thanks for coming back to minneapolis. Its always a pleasure to showcase our city. Real proud of what we have going on. This is in a building called the carlisle, a recent development, right on the banks of the mightmy mississippi. Its an art dekko inspired highrise. This property is a unit with a nice open floor plan, granite countertops, walkin closet, beautiful balcony. The building, itself, offers so much. Youve got beautiful views. Youre able to look out over the downtown skyline. And as you mentioned in your intro, theres lots going on in the city. Theres cranes in the air. Weve got the Viking Stadium under construction, but they better her urry because we havee superbull co bowl coming. Were excited about that. Is that a dome stadium or not . This is not a dome stadium. This one is going to have a wall of glass, so were not going to have the dome, dont vo to worry about that thing. Its not an enclosed stadium . It is enclosed with a wall of glass which is going to be a significant it will be architecturally significant. Not an air inflated dome like before. They got lucky in new york last year with the super bowl in early february. Minneapolis in early february would be something else. The pool at that place you could use for three days a year, right . Im just kidding. Second listing, 695,000, taxes of 10,600. Tell us about this one. This is a building which was constructed in 1981 for early adapters to downtown living. Its a beautiful building. Classic brick architecture, new york style. This is 2,700 square feet. Thats big. Its an opportunity to transition from your Single Family home. Tyler, its a lifestyle. Youre right at the base of a beautiful urban park. Walk out the door. A very walkable city. We have the nicolette mall, pedestrian friendly boulevard. Its home to restaurants, minnesota orchestra, all sorts of other Entertainment Industries and about to undergo a 50 million renovation. You have a lifestyle as well as a wonderful place to live. Spacious, great open floor plan for entertaining. People i know who have moved to minneapolis love it, dont want to leave. They adore it. Powerhouse of the week, 4644 west lake harriet parkway. 1 million basically. Taxes of 20,000. Makes me ill considering what i pay in jersey. Four bedrooms, five paths, 5,000 square feet of living space. Look at that. Thats a beauty, rod. Well, that is really symbolic of living in minneapolis in the lakes area. Youre right on the banks of lake harriet, named after Harriet Lovejoy in 1985. Dont know the backstory there, but im sure there was one. Its rich in detail. Lots of old world charm blended with many, many modern amenities. A third floor retreat, wonderful porch, extensive landscaping and views of lake harriet. You walk out your door, walk around the lake, get on a sailboat, enjoy an outdoor concert at the amphitheater. Theres a lot of lifestyle amenities. One word of caution, in the interest of full disclosure, if you move to this home, in four months the lake will be frozen solid so youll need to trade your roller blades for ice skates. Ice skates. Do a little ice fishes. Rod, thank wyou very much. Nice to see you again. My pleasure. Another real powerhouse. Steve martins st. Barts home for sale if youd like it. 20,000 square feet of living space. Half an acre, four bedrooms, outdoor shower. You know its got to have an outdoor shower. That opens to its own terrace. So everybody can watch you. After being on the market since last year, the price was just reduced to 10. 6 million. Thats not bad from 11. 6 million for all that space. Now, this is an offer at the far other end you might not be able cant refuse the town of ganji on the italian island of sicily. Look at that. Houses here are going for 1 euro a peace. Thats 1. 35, 1. 40. No joke. Heres a few catches. There always are catches. The houses are, politely put, as fixeruppers and have to ante up 6,000 as a guarantee to say you will renovate. 15 of the homes are already under contract. That guy comes along with the house there. In the new york burbs these houses would go those guys, you get to meet those guys hundreds of thousands of dollars. You get the house for a euro, you fix it up, its yours. Dont fix it up, you pay the state 6 6 ,000 euros. Home in sicily for 1 euro. I didnt know your aitalian was that good. Food, retail and autos, three big stocks you need to watch. That comes your way next. In india we have 400 Million People who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System is made with the ibm cloud. The ibm cloud is the cloud for business. Welcome back. Dollar general says its still committed to acquiring Family Dollar, releasing a statement saying they dont think there would be any antitrust problems. That was the reason Family Dollar says it rejected their bid. Family dollar in turn reaffirmed its commitment to dollar tree. Got that . Heres how the scorecard is looking. Also moving to the downside. Back to you. Thank you, bertha. Hormel food, beating earnings estimates. The challenging for grocery products and Specialty Food but strong in other segments. Ford, a new hybrid to compete with toyotas bestselling prius. Lets see whats coming up next on street signs. The market is breaking new records all over the place these days. Well get to the bottom of whether or not the market is thumbing its nose at the fed. Also weve been talking about the used car boom. Because we are cnbc, we look at the stocks that can piggyback on that. I have accepted the ice bucket challenge from michael erickson. Thats going to be on our show. Make sure you tune in. Join in. Do whatever you want. Make sure you tune into street signs top of the hour, two minutes time from now. Im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com frotheres no reasonn average 17 we cant manufacture in shuthe United States. Here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. We knew we needed to grow internationally, we also knew that it was much more complicated to deal with. I cant imagine having executed what weve executed without having citi side by side with us. Their global expertise was critical to our International Expansion into asia, into europe and into canada. So today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that American Made bag within a few days in singapore. Citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. If it can be done here in san francisco, it can be done anywhere in america. So over. Street signs begins right now. Has the fed fear faded . The market surprising many be being strong. Hi, everybody. Were going to ask if stocks can stay this way even if higher rates. Plus the one thing that may quietly hurt real estate more than anything else, few are talking about it. Where the Bank Settlement money really goes. Yeah. And we finally put mandy on ice with this ice bucket challenge thing sweeping the country. Certainly is sweeping the country. Okay. 27 is todays magic number. Do you know what it represents, brian