Brennan and his wife calling it quits. Brennan supposedly involved with another google employee. Simon hobbs is my partner here at the nyse. Simon . You have the u. S. Economy trumping fears for the moment on the fed and certainly the crisis in syria. Theyre up 2. 5 . Stronger growth, though. Still questions of what will happen in the second half of the year. If you look at the market, strong gains in the dow for the second session were up 67 points. Boeing responsible for about a quarter of that gain. Verizon, ibm, united health, Procter Gamble also helping. And what has lifted us to the upside in equities has brought us down, especially in gold. Were currently at the 10year at 2. 5 . We have Institutional Sales and cnbc market analyst. Welcome, steve. Tell us where we are now. The important thing is you just highlighted it. Better jobless claims, adequate jobless claims, better than adequate gdp. Investors are still supportive of the idea of a tapering light. Other than that, the timeline for a series got everyone confused. Theyre not sure they can do it this week, next week or whether or not the gdp will prevent that. Its not clear whether the u. K. And u. S. Are willing to go along. Its also not clear that they can convince everybody that theyre actually responsible for chemical weapons. We were looking at taper, and that was the reason why the market was a little soft. Then taper or taper tickle was factored in, right . And then syria was the reason why were trading now. Now, that seems to be factored in. We dont even know what were factoring in anymore. You still its not positioned at the end of the month . Sure, that all goes into the mix when you look at a lot of these different issues, but were balancing out right between the 100day and the 50day s p cash. Thats why people dont really know what theyre factoring in anymore, but theyre being positive on the market. Were not at the historic high, so weve already factored in some kind of economic weakness at this point, and if we get even modest better news in the weeks ahead hopefully we will then were in a better position. The only issue for you that watch technicals is the 100day was violated for the first time this year. It was first violated june 24. If you violate it twice, obviously it weakens, so more apt to go lower versus the takeoff going into the back half of this year. The only issue is weve closed below it a couple times, so we have to see today the level of 1639. 1639. Thank you, bob. Lets get to sue. Were going to chicago because we have breaking news in the bond market right now. The 7year note up for auction today, and it has not been a good week for auctions overall. Lets see if this one breaks the mold. Rick santelli . It does break the mold, actually. 29 million 7 years. The ultimate yield, 2. 221. Wrfls the wi . Pretty much trading 2. 221, so it was pretty much right on. I gave this auction a bminus. I probably should have given it a cplus, but the fly in the ointment was this. The bid to cover was 2. 43. 2. 43. 2. 65 is an auction average. It doesnt sound like a big disparate, but im going back to may of 89 to find a lower bid to cover. Pretty much spot on with auction coverage. 22. 4 versus 19 auction average, so tyler, i guess in the end its definitely the best of the three with a bminus, and 98 billion in supply has now found new ownership. Back to you. Great, rick. Thank you very much. The positioning at the end of the month, were up 68 points on the dow. The Bigger Picture is now for the year the s p 500 is up 15 . Is now the time to look elsewhere for better returns . Interestingly, this is what the bonds King Jeff Gundlach said, moving outside his own specific area of interest. Ztz the s s the s p 500 has outnumbered many stock markets, and many of those stock markets look kind of scary, but buy low, right . Buy low, sell high. It shouldnt be that complicated. He wasnt a big fan of investing in india and the stock market there has to be said. And probably more interested in the fixed income in emerging markets. Lets bring in chief strategist of wells fargo. Pete, what should people do now . Yeah, you want to buy low, but there is another adage in this business that says, dont try to catch a falling knife. As long as there remains uncertainty about tapering, taper tickle or whatever you want to call it, foreign markets will be under some pressure. We still think longerterm investors should be looking for an opportunity to buy and get their allocations in the national market. But maybe they want to go more slowly and focus on whether there is a good situation, which is in that gdp report. We took some profits in the s p about a month ago, and were looking for a chance to put that money back to work. The trend seems, though, economically here in the United States, to be moving to the upside, paul, so i think thats the good news. If you did want to allocate cash outside the United States, what area of the globe do you think offers the best return . Well, were taking a twopronged approach. One is we want emerging markets with current account surpluses. That is to say, they dont need to rely on Foreign Investors for inputs of capital. We want to play europe but we want to play it around the edges right now, because we think the green shoots may still turn into weeds before the end of the year. We like south korea. Its done very well, very resilient, a strengthening currency. On the european side, we like norway, and we like u. K. , which we think would benefit as the currency begins to attract interest. Nice to see you, paul. Thank you very much for the advice. Paul christopher there joining us from wells fargo. Thank you very much. Lets turn to the situation in syria right now as president obama reviews diplomatic and military options in that region. Lets bring in our esteemed panel of experts to tell us where things currently stand. The secretary of defense from 1997 to 2001 and who served as the am boss dobassador from 2003 in syria. Mr. Ambassador, if i could start with you, assess the situation as you see it now. It seems as though imminent military action has been pushed back a little bit. Do you think the u. S. Will strike, and if so, whats your best guess as to when . I think the u. S. Will strike. If we dont strike, i think this administration is going to lose credibility all over the world, and especially in the middle east and with iran and north korea. So its not a casual situation. On the other hand, when the strike will come is harder to say. Right now there is almost an amateurish feel to all of this, because the administration has been urged for a long time by france and britain and turkey and saudi arabia to do more, and now after weve apparently decided that a retaliatory or punitive strike is in order, were finding all these hoops we have to jump through. David cameron, the u. K. Prime minister, has just conceded that he needs a parliamentary vote, and that vote cant take place. Mr. Secretary, could you address that . Because one of the issues yesterday that we covered was the fact that the arab league, while condemning syrias actions, failed to endorse a u. S. Military strike, not giving, therefore, the president the broadbased support that he, im sure, was looking for if he intends to strike. How does the Administration Work through this process . Well, its unfortunate that the arab league has been encouraging the United States publicly to take action on syria, and when the time comes for the United States to get support, they back away and say, well, we condemn assad, but we dont endorse you striking. That was a disappointment for the administration. I think the problem for the administration is, number one, they havent clearly defined the mission. What is the Mission Going to be . What do they hope to destroy . Is the plan executable and what are the consequences . I think there are many questions the administration has to answer. Specifically, to respond to speaker boehners question saying, mr. President , i have ten questions here. I think its wise to go to congress, to leadership specifically, but certainly getting support from congress before military action is taken rather than trying to piece together support afterwards. Number two, they should go and present a vote to the United NationsSecurity Council and force russia to veto it, to put them on the side that sittfact n government is supporting gassing of children. Do you agree with that, and what is the advantage to many to the administration allowing the leaks of possible military attacks being imminent . Is that a psychological ploy, do you think . Can you address those two issues . Right. Well, i certainly agree with the secretary on almost all counts, except i think they have said, this is to be a punitive strike and enforcement of the president ial declaration of a red line concerning the use of chemical weapons. I dont think one can expect them to say the exact targets they intend to hit, but they seem to want to thread a needle, do enough to deter bashar assad from doing this again but not so much becoming a combat aant in e civil war. I dont think there is a goldilocks solution here. Firing tomahawks into a country, certainly its an act of war and certainly you have to be prepared for the consequences of it the notion that youre simply going to fire tomahawks into certain targets is folly, and i think we have to know what happens if. What happens if there is retaliation . What happens if the russians try to interfere with the signals of the missiles going on, et cetera . I think before we rush into it, we need some clarification of what to do. And finally, the notion that you can exercise a punitive strike, thats not allowed under the law, either. You can degrade but you can deter international law. At least down here on wall street, everybody seems to be very concerned. The first is the possibility of this particular conflict, if and when it does occur, broadening out to a regional conflict which would involve russia and which might involve iran. What are the odds, do you think, of that actually happening if and when the United States does strike . I think its quite likely that if we launch a strike which is designed to be minimum in its impact, then youre likely to see the russians give the syrians more support, the iranians will give them more support. Lebanon and hezbollah is likely to come into it as well. A and once you explain it to the military congress, then you at least have the American People behind it. If you take action without it, youre pretty much on your own. Mr. Ambassador, would you like to address that same issue . I certainly think the secretary is making good points. I think there was original sin here. The president , apparently, in an almost offhanded way, made this red line the use of chemical weapons. He was right to make it a red line, but he said, well, if they start using and moving around a whole bunch of chemical weapons, we would have to act. And, you know, it needed to be thought through better as to what it was that we were going to do if they did that and how we were going to get support, as the secretary indicated. But now weve got this muddle where weve committed ourselves, as far as im concerned, to take military action, but were not getting the support we hope to receive. Right. Gentlemen, thank you very much. Secretary, mr. Ambassador, a pleasure to have you with us. That was a great conversation. It was a very interesting conversation, too. Very esteemed gentlemen. Whats going on behind closed doors at google . Well give you a hint. It has to do with the cofounder sergei brim. Were on the ground in syria and turkey. When we come back, hell join us live and give us that very fluid situation. When simon and i come back on power lunch. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. Vodafone are higher today. Verizon talked about vodafone buying some stake in their venture. That would be one of the biggest deals of their time. Sergey brin and his wife have split. There are also rumors that sergey brin has become involved with a google employee. Were here to discuss the impact that it might have on the company. John, im going to go to you first. Do you think this has any impact on the company, either its bottom line or its culture . Some, sue, but i think its limited. I was prepared to say i dont think much at all, but ive checked in with a couple google employees. There are some people concerned about the impact internally because sergeys sister runs a significant portion of googles business. She heads up ads and commerce, so this is very much a family affair. But then at the same time, google is used to rumors about top executives eric schmidt. His marriage has been written about in the New York Times and hes seen out and about. It doesnt seem like there is acrimony between sergey brin and his sister. There are other relationships within the company. Steve balmer married a pr executive. Bill gates married linda gates. Its a different culture. Yeah, so this isnt completely beyond the veil. Its not just some of the fortune 500 companies of old. Robert, can you address what everybody seems to be chatting about, which is the prenup, what we know, what a settlement might look like . We dont know anything about what pretthe prenup says. There was one when sergey was worth about 6 billion, hes now worth about 24. That 16 billion would at least be his going into the marriage, so the prenup would deal with that 8 billion earned after that, and if there is a prenup, unlikely to affect his share sale. He does have a program in place since 2010 where hes selling about 2 billion shares between 2010 and 2015, so it would appear he would have enough liquidity to deal with whatever he might have to pay out. She would probably be fairly wealthy on her own with her own company and other investments. Im sure she is. That will be an interesting story, a lot of people following it. Thank you. Simon . The National Football league and 4500 former players have tentatively agreed on a 765 million legal settlement. The suit had accused the league of hiding the risks of concussion injuries for decades. The fund would pay for exams, compensation for injuries and medical research, but a judge must still give final approval. To syria once again. Lets get the latest on the crisis there from the ground. Nbc chief correspondent Richard Engle is on the ground in turkey near syria. Hi, richard. Whats the latest . Reporter right now there seems to be a bit of a holding pattern. The u. K. Is getting cold feet about going into a military punitive strike. So is the arab league, so is the United Nations. U. N. Inspectors are still on the ground doing their work. Theyre going to be continuing to conduct inspections around the damascus area tomorrow and then likely to leave the country on saturday. Egypt has now said it doesnt support any kind of military action. The red cross has said the same thing, worrying that any kind of military escalation could just make the humanitarian crisis in the country much worse. So while it seemed, yesterday and the day before, that the ship had sailed, that the United States was in concert with several other nations going to imminently launch, perhaps even today, military action from four warships and two submarines in the mediterranean, now it seems we have more debate ahead of us. Richard engle. Richard, thank you very much. Simon . Fast food workers around the country are on strike today, demanding the right to unionize and to double the minimum wage. What would that mean for the industry and for the economy more broadly . Were live at the rally in new york. Were out with federal and local agents as they take out a man accused of bilking medicaid out of almost a million bucks. They say hes just the tip of iceberg. All of that coming up on power lunch. She loves a lot of the same things you do. Its what you love about her. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. 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