And were going to talk about obviously one of the major implications, supply from the middle east of oil and the threat of massive disruptions there. With us today is lord john brown, former ceo of bp. He has a new book out entitled the glass closet. He also will respond to governor perrys comparison of alcoholism and homosexuality. A big hour coming up. The meltup weve been talking about recently has kind of melted away. The Dow Jones Industrial average is off about 15 points on the trading session. The s p 500 is traded up just a fraction. The nasdaq composite is up about a tenth of a percent. As for the transports, last trade was down about 14 points on the trading day, and the russell 2000 has been in negative territory as well. Theres the transports, down about 15 points on the trading session. Russell 200, well show you that in just a sec. Now its turned positive by about 1. 7 on the trading day. Seema mody is in times square, bob is here at the exchange. Bob, were coming off our lows, so we could see green at some point . We could. In fact the trend was to the up side, but we had one of those and thats oil. A look at brent, this is whatsing going on recently. Brent moving up late in the morning, and then that tends to have an effect on the market. Take a look at the s p 500. It doesnt have a dramatic movement. These are thin markets. So the s p 500 that was trading up at the open, moved down, and you can see its just now right this second going into positive territory. When they had this effect with brent moving to the up side suddenly, you get a predictable series of events. Airlines immediately start dropping. They all moved to the down side. Thats predictable. Another predictable thing, natural gas stocks. Any energyrelated group moves up. Theres your market leaders in some of the energy group. One of the things that bearing watching, is bank stocks have been weak to also move to the up side. Banks, though, not related to energy, but banks have been weak the last few days. Regional banks have been weak along with the big banks. This has been going on for three or four days now. Zions down almost 1. 5 . Thank you, bob. Now to seema uptown at the nasdaq. Hi, sue. Modest gains not nasdaq. Traders still watching the situation in iraq very closely. With that said, a lot of the big tech stories to watch. Sandisk to buy fusion hio in an effort to strengthen the flash business. Remember a fun fact steve wozni wozniak, works as cofounder for fusion hio. Another big talker today is ali baba. Its updated ipo filing shows a slow down in quarterly revenue growth. Yahoo which owns a 22. 6 stake in alibaba is under pressure today. And obvious called the so this will be a space to watch, especially as we get closer to it going public. Still no word on whether alibaba will list on the New York Stock Exchange or the nasdaq. They have their fingers crossed down here, ill tell you that, seema. So dom for a market flash. So youve got those chinese internets on the win side. Check out the utility sector on the other, which is the leading sector, having its best day in over a month. The utility is up about 2. 5 . Leading the way higher is centerpoint, and tigris, am run, utilities are the best performing sector in the s p 500, still so far this year, so there is some attractiveness for the defensive type of stocks. Back over to you. Thanks, dom. Volatility is back in a big way after staying dormant for months. The fear gauge rising against today, up another 2. 7 , but up more than 10 over the past week. Bill stone, hugh johnson charm and chief Investment Officer at hugh johnson advisers. Jim, are you actively playing volatility after a few months of basically no volatility and low volume . I wouldnt say were actively playing it. To be honest, i think we expected it to be higher than this. You know, i think just by the very nature of what you would expect in the world, it was, i think to all of is kind of surprising it had stayed as low as it had even in the face of ukraine and all of that. I guess we had gone into the year planning for a little more volatility. So, hugh, is the meltup that we have seen for the past few months changing now . Or do you think we still have more room to the up side snimplgts i think we have a bit more room to the up side, but when you particularly take into consideration the incredible returns we had in 2013, were looking at a very low return environment, with a bit of volatility, as bill suggested, a level of volatility kind of close to what were seeing right now, but the most important thing is were go ahead the. And i think investors have to play it that way. Where do you put cash to work . What areas of the market still look attractive to you . I think generally we would say, and it may play into the volatility, because you may get some opportunities, there are these more sickly cad. Despite what you may here and what youll end up seeing, is that things are actually Getting Better economically speaking, so we would say the industrials, even the financials, i think those are two spots we think are interesting. Hugh, what about you . Well, i think its great to like equities, and i think you should say overweight, but i any what you have to do, sue, right now and this is the message of the markets, is build a little defense in your portfolio. Im a little different from bill on this. You want to underweight consumer directiaries, a very economically sensitive sector, overweight xwumer staples, and move into things like especially if the large capitalization stock paid different. Deep dividends are going to really count, and the last thing i would say is underweight emerging. Emerging is not going to perform well this year. Gentlemen, great advice. Thank you very much for joining us. Good to see you. Sue, thank you very much. Delivers alpha, thats the cnbcs conference for the worlds biggest investors. Cale kelly looking into 11 months ago, and these folks make money for the people who took their advice . And we have an allstar roster last year, and also some macro perspectives from major hedge funds, but that was a great question. Did the ideas pan out . It turned out it was a mixed bag. In the 11 months since then, our experts had some doubledigit successes, but also serious stock spirals, if thats enough illiteration for you. Larry robbins was one of the most prescient stock pickers. He discussed a number of names in the health care sector, and one of his ideas, miskecken corporallied 5 in the aftermath of the conference. Walgreens and thermofisher performed very nicely also. Activist nelson peltz also scored with an investment in dupont that he only reluctantly disclosed to andrew sorkin, if you remember that moment. And he also had mon democratic olis which he wanted pepsico to buy. Both stocks are up. Other ideas proved disappoi disappointing, lost out with his expectations of a toyota comeback. Instead that auto stock has fallen about 11 . Other aspects of his japanese car maker theme did only slightly better with fuji heavy flat at this point, and mazda up about 7 . To be fair some of those ideas may yet need room to run, and whether its right for the portfolio is depending on the goals, the amount of capital and so on. They do get paid very handsomely to make these picks. Kate kelly, thanks very much. And delivering alpha, on cnbc, just a month ago. If youd like to sign up and attend, go to deliveringalpha. Com. Weighing in on the Housing Market today. Diana olick has the data. A better than expected jump in Homebuilder Sentiment despite still lackluster sales and starts in april, so maybe a sign that may numbers coming in next week could be stronger. Builder confidence up to a 49 on this after barely moving since february. 50 is the line between positive and negative territory. The builders, however, still cite strong headwince, including weak consumer confidence, limited availability, and tight supply of available lots. Singlefamily Housing Starts are running at about half the Historical Rate form the el throat index component, all posted gains, but the largest was in current sales. Crossing back into that positive range, gauging sales expectation rose three points to 59, buyer traffic increased to 36, still, though, the weakest component of the index. Regionally, Homebuilder Sentiment is strongest in the south and west, weakest in the northeast. More online, realtycheck. Cnbc. Com. Thank you very much, diana. Shares of Lockheed Martin today . What are they doing . Theyve had quite a run over the past year, up about 52 . Now, however there is trouble on the deck. Jane wells is live in l. A. An oil leak caused an emergency during a test flight of the f35b overiuma. Here is earlier video. After the pilot shut down the engine and landed the plane safely, the pentagon grounded the entire fleet of f35s, as, bs and cs, so the oil Flow Management valve could be checked. This is the second time an engine issue has grounded it. The earlier one Pratt Whitney, which makes the engine tells cnbc this move was precautionary and as of saturday evening, nearly all aircraft have been expected and returned to flight status. We anticipate concluding inspections by the end of the day, monday. Its now trying to determine the cause, Lockheed Martin, which tells the plane, tells us engines and other appear fine. At yuma, quote, there have been three suspect findings. Now, the Pratt Whitney engine is one reason the plane vastly exceeded initial cost estimates. The company says its been designed for survivorability, has redundancy which kept it available, i guess that means working. The marines are the first, and the jet will be making its International Debut next month at the farm borough air show, where our phil lebeau will be. Oil is up against today, um more than 3 a week. The Iraqi Air Force now getting involved in the fighting in the northern part of the country in a big way. Will it turn the tide of terror . And you know who else is arriving in the area . The United States navy, complete with an aircraft carrier. We will go live to iraq in two minutes time, as power continues. Liable it Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Century link. Your link with whats next. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Time to take care of business with century links Global Broadband network and Cloud Infrastructure. We constantly evolve to meet your needs every day of the week. Welcome back to power lunch. This is something we dont talk about every day. The argentinian stock market has taken a hit after the u. S. Supreme court ruled that creditors can seek information about argentinas nonu. S. Assets, part of litigation over argentinas obligation to Bond Investors for their particular payments. Theyre currently down about 7 . The index is up nearly 40 year to date. One way to play the market is through etfs. Check out the latin america 40, you can see theyre currently down by about a third of a percent. Still very much in a stock market downturn, at least for today. Back over to you. Dominic, thank you very much. Iraq in crisis, an claend Splinter Group seizing more city there is, but the Iraqi Government says its stopped the groups advance on bag dan. Michelle carusocabrera joins us live from Northern Iraq, with the very latest. Hi i. Michelle. Reporter hey there, tyler, another town taken in Northern Iraq today, this time tal afar. This was the scene back when the u. S. Invaded in 2030, now in the hands of an al qaedainspired group. At the same times shiites have been rallying for days. It appears for now the ad hoc shiite militias have blunted the sunni march toward baghdad. The Iraqi Air Force joining the fight from above. This video was released by iraqs Defense Ministry this morning, reportedly showing an Iraqi Air Force jet successfully attacking a building. Iraqi military helicopters also on the hunt. Take a look at this chopper fires a missile at the target, scoring a direct hit. Its difficult to say what the targets are and how theyre related to the sunni insurgent fighters, but northern and central iraq, its safe to say, has been transformed into a killing field. Sources on the ground say despite the attack from the air, iraqi forces have not been able to turn the tide. American ships arrive just in kay theyre called in to assist. The george h. W. Bush along with a missile cruiser you now within. And the world woke up this morning to images of mass executionses of the sunni insurgents by captured iraqi troops, and those pictures have not been verified by nbc news. Were also learning today these insurgents could be extremely wealthy. The guardian of the United Kingdom reporting, quoting intelligence sources q. That a huge cache of zip drives were discovered in the home of an arrested insurgent, 160 of them containing detailed Financial Information about the group. In addition to that nearly half million that they allegedly stole from the mosul central bank, apparently theyve been able to sell a lot of syrian oil that theyve captured, some of it back to the syrian government, making them potential worth 1. 5 billion. Tyler, sue, back to you. Thank you very much, michelle. Lets kell one United States marine corporate commandant, who served during the iraq invasion, general michael hegge. Welcome. Thank you very much. I wonder as you look back on our mission there in 2003 and following you would consider it now a success or a failure . Was it a waste . You know, that type of question i remember talking with marines, and i would tell them were here in a dire situation, it probably doesnt help too much to talk too much about how we got here. As your reporter just outlined, good things are not going on in iraq right now, theres a crisis there. I think our National Command authority absolutely needs to address that in some way, and we need to stop the fighting. In some way we need to bring the parties together to form a true, true government there, but one of the things, when you talk about iraq, and as i was listening to your reporter, it was brought home to me is because of our dependence on oil in our transportation system, we are in our Foreign Policy is constrained, and were going to have volatility in our economy subwe do something about that. Its also quite amazing to me here im in texas, and we are here in the United States we are producing about 8. 5 Million Barrels a day. Thats up from about 5 billion in 2008. I think one of your previous speakers talk about the problem we have getting oil from places like iran and other areas, and thats the total market is down around 3 Million Barrels a day. In fact, thats how much were producing. So even though were producing more and we have energy abundance, we are still subject to volatility. Every barrel we produce of our own source and supply is one fewer barrel we have to depend on somebody else for. Let me turn back to the question of the situation on the ground in iraq today, general. Would you would you say that we should still be there . Were we right to leave when we did . Im sorry, tyler. Im going to come back to the same point. We are where we are today, and we need to address the situation on the ground now, and i truly believe that our National Command authority is doing that. But i so let me turn you, then, i understand and respect your point of view, but then let me turn you to the attention of how would you respond to the situation on the ground today in iraq with u. S. Power . Or would you . I believe in such a situation, one needs to bring all elements of power to bear, and the military is obviously one of thunderstorms elements of National Power, but our diplomatic power, economic power, all those elements need to be brought to bear. Im at somewhat of a disadvantage that i probably know just as much as you do. I have no special intelligence, i am reading the papers. I do no in the past we have led with our military more often than not, and i think on most situations, it needs to be a builded approach with all elements of National Power being brought to bear. General ha good. Ee, thank you very much. We appreciate your time, and we thank you for your service. Thank you, sir. Sue . Ty, thank you. Youve been talking about this, the crisis in iraq. It is fueling oil to move higher. What does it mean for prices at the pump . Well head to the nymex to fix on you what traders are saying, and well talk to sir lord brown, and well take you inside his new book the glass closet. Hes giving his reaction to governor perrys comments as well. On homosexuality and alcoholism. Thats next. The competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your id