Passenger after passenger scampering to safety. Today much more on a topic we started yesterday. How much should you know about your pilot before you fly . And jimmy buffet said it best. There aint no way to reason with hurricane season. Weve got a major Storm Brewing out in the atlantic, as you see there. I believe those are the winward islands. Forecasters are telling florida its time to get red. First though to sue though at the nyse. Better firm that up before you go over to our sister network, the weather channel, ty. Thats all i have to say. Despite warnings this this earnings season might be soso, stocks indeed are up again, and, as a matter of fact, we are at the high of the trading session. Bob pisani is here on the floor of the new york stock exchange. They are starting to use the word teflon market again, even though there are some people out there who really think this might be a tougher earnings season than anticipated. I think its winward. That really got me thinking. Im thinking why dont i know that . Everybody hates the market because they think earnings will be anemic but one point away from an historic high on the s p 500. Unusual thing happening in the markets. Major sector a strange day when the transports are up 2. 75 and the dow industrials up half a point. Thats a very, very widespread, and the main reason were seeing that is because some of the air freight stocks are up. Federal express having a big, big day here on pretty good volume. Theres vague talk that mr. Ackman may be taking a stake in fedex to a new fund they are starting. No confirmation of that. Just talk on the street. You can see the influence they are having but some of the other air freight stocks are up as well. A riskon. All the industrials, materials and financials, second day in a row. That one has happened. Finally just put up the s p 500. I keep pointing out something, even though a lot of people dont like the rally. 1,669 is the old high. Less than 1 . Lets bring Kenny Polcari into the equation here. The market does seem to have its legs underneath it. Were in earnings season but so far so good. Weve had one earnings, alcoa came out and beat the number by a penny so everybody is supposed to celebrate. Im confused because we keep talking about this. The bar is low so it will bes for the companies to beat. The other thing, imf came out and cut Global Growth forecasts an encouraged everyone to keep stimulating their economy, so in my opinion what youll hear tomorrow from ben bernanke is full steam ahead. Were not changing anything, and were set to go until we hit a, b and c target. Go ahead. The fed tapering idea is now being factored into the market. Everyone is talking about september which is surprising to me, but everyone is, so people are worried about that. You dont think its going to happen in september . Im surprised, too, but the street seems to be convincing themselves that this is going to be a reality. They have convinced that earnings are going to be somewhat anemic, only 2 to 3 , convinced that the economy may be on the egh side, and yet were only 1 away. Let me go to Rick Santelli because the bond auction is off. How does it look . Bplus, not a bad auction. Now, its 32 billion three years. The auction yield,. 719. The wi was trading at higher yield levels so, of course, we have to take that into consideration. 725 offered of. 72. Lower yield and higher price. Thats a good thing. Heres why it didnt get an a. Average bid to cover the last ten auctions is 3. 5. Bid to cover here was 3. 35, but our last auction was 2. 95 so the trend is reversing a bit and directs popped up to 13 . The ten auction averages 20 , and we went through a stretch about six months ago where everything was in the mid20s. So that direct bidder, were not sure who it is, many think its a foreign central entity and large institution. They are definitely laying of course, but there was a bit more presence in this auction. Of course, we have tens and 30s to follow. Bplus sue. Its all yours. Good way to start the week. Thanks, ricky, very much. Kenny, lets continue this discussion because you do not think that the taper is coming in september, and if if indeed, as bob said the market is starting to factor this in, if it doesnt come in september could, this basically propel the market considerably higher . Absolutely, absolutely, and i think thats whats going to happen because i think like you. I dont know why everyone is convincing themselves it will happen in september. All because of the nonfarm payroll reports. Seems a little bit ridiculous. The fed is not dependant on the nonfarm payroll reports. Its a broad selection of reports that have to happen over the next few months you think like me . Ive got to change my thinking. Thats a scary thought. Im not sure whether thats a bullish indicator or bearish indicator, gentlemen. All right. Thanks so much. Well catch you later. Lets go over to matter thompson who has the market flash. Hey there, sue. Looking at shares of quest diagnostics, lower today down just about 5 . The reason it was cut from underweight to equal weight over at Morgan Stanley, the center for medicaid and Medicare Services just released their reimbursement rates and Morgan Stanley believes this company will see actually, because of the lower reimbursement rates, its going to be a 60 million hit to its ebitda and probably 26 to its earnings in 2014. The price target was cut to 58 a share, and its trading very close to that right now at 58. 12 a share. Tyler, back to you. Mary thompson, thank you very much. The price to buy a heiss house is rising and theres rising Mortgage Rates and rising rents. This may all benefit apartment owners because people who rent might stay a little longer in their places, and its also helping the reits. Downia olick live in washington to explain why and putting it all together for us in the reality check. Thats right, tyler. The thought was that more renters would turn into buyers, but rising Mortgage Rates are throwing a wrench into that. Take a look at some of the big apartment reits like avalon bay, camden and essex over the past month. They have been coming up as Interest Rates rise. Why . Well, reits are developers, and Developers Need cash. Rising rates make it more expense i ever, but the reits over regular Developers Already have a lot of capital. The apartments have underperformed for twoplus years now, and they provide some of the best Earnings Growth in reit land and provide dmens rat Dividend Growth so youre looking at 2 to 8 Dividend Growth with 7 to 8 Dividend Growth. And the fundamentals are still good. Rents went up in q2, both asking and effective according to a new report. The growth is slower than a year ago and thats due to large Income Growth and thats before the large Mortgage Rate jumps. Vacancies were flat nationally but 54 out of 79 markets saw decreases in vacancies and 3. 4 is well below the peak of vacancies of 8 in 2009. The decline, largely due to more supply coming on. Bottom line is where does demand go . Rising rates have robbed poey tension buyers of a lot of purchasing power. Are they priced out, or do they just maybe buy something smaller . How much higher will rates go . Well, if you think they are going even higher, then apartment rentals are a great investment play. Back to you, guys. All right. Thank you so much, diana. Mary thompson is very busy and has another market flash for us. You know, were coming off of what diana was saying. Focusing on the Home Builders because they are higher today, sue. Good news from core logic basically saying fewer homes were foreclosed on in the month of may and fewer homes are in the foreclosure process. All of these stocks are up on the heels of that news. 52,000 foreclosures completed in may. That is down from 71,000 in may of last year, but up from the 50,000 in april, but if you look at the total number of homes in foreclosure again, according to core logic, the number is now 1 million as of may compared to 1. 4 million as of last may. That, of course, is giving a lift to the Home Builders. Back to you. Thanks, mar. All right, ibm is moving in the opposite direction of the big board today. Ibm is down 3. 78, equivalent to under 2 , 191. 19 the last trade. Big blue downgraded to neutral from buy. A multibillion dollar deal in the supermarket aisle. Kroger buying regional supermarket Harris Teeter for 2. 5 billion or 49. 38 a share. Thats nearly a 2 premium to Harris Teeters monday close. It will boost krogers presence in the southeast and midatlantic regions. Kroger is the nations largest supermarket operator. Ty . Sue, thank you very much. If you missed it at the top of the hour, take a look at this video. It shows you that someone was able to record the last seconds, look at the people coming off the chutes there, the emergency chutes. The doors had just popped up. The chutes had been inflated, and people, you can see them rushing off to get away from that aircraft. You are see them coming down, amazing video. Today in San Francisco, authorities are meeting and look at the Swift Response by the Emergency Services vehicles coming in there to put out what will very soon be a major conflagration in that plane. Look at that. Just stunning. The authorities are now talking to the folks who flew that airplane to try and figure out what exactly went wrong. Phil lebeau is in San Francisco live. Phil . And tyler, the primary questions being asked by ntsb investigators are to the man who was at the controls of the asiana 214 777 that crashed here in San Francisco, and those questions primarily revolve around a couple of issues. First of all, what happened in the final 82 seconds as the plane was coming in for the crash landing. They turned off the autopilot 82 seconds before they hit the runway. Why was it turned off . Did the other pilot in the cockpit warn the other pilot he was going too low and too slow and why was there no distress signal prior to the crash . They tried to do a go around but there was not enough times. The pilot of asiana 214 had just 43 hours of flying time in the boeing 777, and his lack of experience at the controls, that is going to be a focus for the ntsb. What we know is that we have an experienced pilot. Hes got a lot of hours, but hes new to the 777. Hes flown aircraft in the boeing family before. We need to understand what that Transition Training looks like and what the initial operating experience, which is this is what he was doing, getting the time in the aircraft with an experienced instructor. By the way, the ntsb investigators expect to talk to that pilot, the man at the controls, today. Meanwhile, the ceo of asiana is flying here to San Francisco to meet with victims of flight 214s crash. He will be apologizing and has apologized already for what happened on saturday, but all of this brings up the question of the experience of those who are flying commercial airplanes . Should the public have an idea of whats going on in terms of who is flying, how much training they have had. Commercial pilots for asiana need at least 60 hours as well as ten takeoff and landings to be certified as a captain in the 777. The pilot at controls had 43 hours and was not certified yet as a captain. Still, more questions than answers specifically revolving around that pilot and what happened in the final 82 seconds on saturday. Back to you. Phil, stay there. Were going to get more on this asiana pilot probe and the wider implications it may have on the industry. To do that well bring in usa todays airline analyst. Good to have you here. Tell me about the training that the pilots go through. Phil just mentioned it was on the offered Something Like 45, 47 hours at the controls of a 777. I read something over the weekend that indicated is that not all of those hours necessarily were in a flying airplane, but some of them, and you get credit for them, they were a simulator. It can work that way and to tense your question, should we be concerned about, you know, the number of hours that pilots are flying . I guess we should. The sobering news is that there is a pretty good system in how the pilots their way up and then shift from one aircraft type to another, and i think another encouraging takeaway, would never say theres a silver link to any kind of aviation incident, but one thing we can be heartened by is from these past accidents the faa has been fantastic in learning lessons from what went wrong and translating them into new rules, new procedures and new regulations th s thas that real the same thing from happening again. One of the reasons have were talking about with this crash why theres so many survivors. This exact crash happened in 1975, hard to say how many people would have survived an accident with the safety regulations of the day. Its really a miracle that so many of the people did survive. Phil, one of the things we were talking about yesterday with gordon bethune, former ceo of continental, lock at chute come out there and deploy, was the fact that the instrument landing system as the airport who is not opposite. I should have ask him how long it was inoperative and why wasnt it working and go that be something that the pilot might have been expecting was working . We dont know if the pilot was expecting t. Anz crash was told by the San Francisco airport that that system was not working. Its been out since june. They are doing construction on runway 28 left, so thats known for all Airlines Flying in here that that system is not here. Given the amount of experience in total for this for this pilot in commercial airplanes, many are saying, listen, he should not have needed this on a clear day with no inlemt weather to bring in that aircraft without any programs. Thats the situation and when it had to do were that piece of technology. All airlines have been told its out and will be so until august. Thats because of construction on the airport but on a day like that they should have about able to bring that craft in and theres other redundant systems. Exactly. Malcolm broadwell wrote a very interesting article, part of his book, about the culture in the cockpit. Some dating back to the 1890s and 90 there that obligated 9 senior captain to the ntsb will investigate this accident and try to reconstruction what led up to this accident so thats something thats going to be looked at. What that was talking in in that particular case, the folks on Korean Airlines back at that time. You know its a culture where youre expected to remain silent or difficult rex to both your elders and to your superiors in the workplace and the fear is because of that culture. It was more than just a common practice. It was a real entrenched way of thinking in that culture and because of that it was thought that maybe some of the, you n know, pilots would not be the lesser pilot was not going to be feel like he was able to speak up to the captain. The first officer was not going to be to speak up to the president , this is right and absly they are quoixte. They are going to look at a here, but as we mengsed earlier, if they find a problem with that, they will address that with new always and regulations because in place. Thats all speculative. Dont know if thats whats going on here. Thanks, phil, for your great coverage out there in San Francisco. Yas question of the day. Yesterday we asked if pilots should be required to publicize their flight records . A big response so far. Still you can comfort your vote. Go to yoo. Finance. Com, results coming up later on plounch. Toy, new york city subway system is going through its first kind of a test today. They are looking to see what had a would if the system was with implemented. Chantal is coming. Forecasters are saying customers up and down the earthquake that prepare. More on power lunch when we return in two. Geoff im the kind of guy who doesnt like being sold to. The last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. You want a broker you can trust. A lot of guys at the other firms seemed more focused on selling than their clients. Thats why i stopped working at my old brokerage and became a Financial Consultant with charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Welcome back to power lunch. Im Mary Thompson with the market flash. On shares of netflix extended its gains from yesterday when it extended its contentsharing deal with cbs. Today its up another 5 . Of course, the company will be reporting its earnings on july 22nd so a number of people will be watching to see whether or not it can, again, have a profitable quarter as it did in the Fourth Quarter or first quarter, i should say. But, again, the company gaining once again today on the news of its content sharing deal, an extension of that with cbs. Sue, back to you. Thank you very much, mary. You know, in most cases the subway is pretty much the best way to get around here and down here to the new york stock exchange. There real reno parking lots, and if you do find one, its extremely expensive. Even many of the citys top fangs professionals use it to get to but bourque. And for you a look at what would happen if terrorists managed to attack with some kind of gas. Heres abc newss Katherine Craig. Reporter here you can see the air sampler boxes right here. Researchers what installed them near various subway entrances in manhattan and this is all part of a study to help the new York City Police department to determine how air flows in the event theres a chemical attack on the citys subway system. Rese