The exchange. Stocks currently moving back up towards highs of the day. Bob, okay, it is a rally but how low is the conviction at this stage . This is a rally but not with a lot of conviction. We need a little more buying enthusiasm. Were not getting it right now. But still 200 points, nothing to sneeze at. We had a nice move up prior to the open because productivity numbers were better. We are now approaching the highs for the day. Little bit of a midday rally. Lets look at the markets in the middle of the day. Right now 3 2 advancing to declining stocks. Heading towards 2 1 very shortly. Moving in that direction. Volumes been moderate. Not saying this is heavy. This is the lightest volume since weve had this volatility. Speaking of volatility, vix is below 30. Just a few points moved there. Dow leaders, fairly broad advance here. Home depot is one of the few dow components up this quarter. These are nice advances. Just not seeing much volume. It is not a normal volume day for most of these stocks right now. These big multinationals are really hit badly on the recent declines we saw on concerns about china. Hon honeywell, ge, 3m all up. Honeywell a great story on the front page of the wall street journal. Very nice, explains their strategy. Still modest volume. All the oil stocks, shale names in particular. Oil moved down on a build in inventories. Word the iran deal may have enough votes to sustain a veto that would be negative for crude. Most of the shale names like marathon, eqt, all on the downside. 10 out of the last 11 sessions have been tripledigit moves in the dow. Like triple is the new double. But a narrower range than weve seen recently today. Lets get to the nasdaq now further uptown where bertha koo coombs is following the big movers there. Were not seeing tripledigit moves on the nasdaq. Seeing a fairly broad bounceback and the tech sector etf just edging shy of correction territory at the highs today. Were going to watch that very carefully. Apple though still down 18 from its april high, having a strong point impact to the up side today, nice bounce back. Amazon announcing expansion of its dash button. Investors in netflix might want one of those. Thats a notable exception today, down again. Netflix seeing more competition in streaming, this time from hulu who is announcing a new commercial fremontly subscription package. Netflix falling again hard. Take a look at the airlines today with that pullback that weve seen in oil recently, theyve held up fairly well. Jetblue and skywest in fact are both down less than 10 from the recent high put being them higher than correction territory. Ryanair in fact is only 3 below its recent high. Back to you. All right, bertha. Thank you very much. Now to the American Housing market and the number of people applying for a mortgage or a refinance is soaring. Diana olick is live in georgia with more on a big number no matter how you slice it, diana. Reporter it was big, brian. No question. We knew this was coming. Lenders early last week told me their phones were ringing off the hook. Heres what happened. As the stock market plunged last week investors headed to treasuries pushing the yield down and Interest Rates followed those yields. Even though rates were barely down two days and barely down an eighth of a percentage point on the 30year fixes, it was in you have to push applications up 3 for the week. Interesting though, also was the big jump in applications to refinance adjustable rate lobes. A. R. M. S. Bringing about their share to the highest in almost a year. A. R. M. S. Are very popular among jumbo borrowers on highsier houses because they get a lot more bang for the buck so theyre a lot more rate sensitive. And sorry to say, rates are back up today. Oil prices are continuing to slide. Lets look at what wti, crude and brent are up to right now. 44. 94 is wti, down by 1 . Brent currently sitting at 49. 21. Jackie deangelis is at the nymex. Were rebounding a little bit. We were down during the session almost 4 at one point. Two major factors today. We have the report from the department of energy citing we had an inventory build last week. Traders werent expecting that. Then we got the news that president obama has the support he needs to move forward with the iran a deal. Having said that, if iranian oil comes back on the market, it floods the market even more than it is right now. Those are things that we certainly discussed before. That said, the Technical Levels right now are pushing this trade around as well. The next level of support to the downside 42. 79. Were well off that level at this point. I will say the last thing that you have to consider is what is happening in the equity market. The losses start e ed to pare w we saw the dow rebound during the session. Many factors to watch right now when it comes to crude oil. Right now im going to drop some wisdom on you, folks. Things are engines use oil and possibly even gasoline. Therefore, look at the transportations in this recent market plunge. The group kind of ironically getting slammed. You think their input costs would be less. But theyre down in the past one month, 15 down for the year. Some on the street say the selloff is opening up an opportunity to buy a new select names poised for growth despite perhaps a weakening Global Economy. Morgan brennan taking a closer look at some of the transports. It is a good day today for the transports. Still, they are down the most out of any major index so far this year. But take a look at oil as well. Crude prices are half their yearago levels. If you couple the two together, the lower stock valuations, lower fuel costs, analysts say there are actually some buying opportunities in this market. Take trucking stocks. They get a big boost sfrom cheaper diesel. Old dominion freight line has shed 11 over the past month but analysts think the company will expand margins and gain more market share. Another stock, many on the street claim as a top pick fedex. Citi just added the parcel carrier to its recommended list. Deutsche bank says it is buying on the current pullback. The stock is down by 13 in a month thanks to the Profit Improvement plan in place and its express operations. Also strong pricing gains and growth in ground operations. Analysts see a 31 price pop in fedex shares from the current level. Lastly, Expeditors International of washington. This is a logistics provider. Thats managed to buck the downward trend. It it is up 4. 5 over the past month and one reason for that is holding its firstever investor day today. Ahead of that, the stock was upgraded to a buy on refocused growth opportunities. Investors are tuning in right now as we speak for any positive guidance from the company. So far, management has said its considering limited acquisitions to boost growth. Thats a big shift for a company thats actually never really done. Were seeing that stock move higher 2 , almost 3 on that news. Thank you for that, morgan. Crossing the atlantic, europes migrant crisis having a big impact on transportation there. Eurostar trains turning back to london and paris after people blocked the tracks leading into the tunnel that cuts across the english channel. Cnbcs will friend fox is live in london. Will fred, what are you hearing . Five euro star trains were delayed heavily overnight after migrants blocked the tunnels underneath the english channel. Those trains have now been returned to their departure stations. One passenger had this to say. Some migrants had climbed on to the roof of one of the trains and so they had to shut off all the power because the power lines were above the trains. That plunged some of the trains into darkness. The air conditioning was off. People were sweating. And they couldnt be let out. My apologies on the name front. This is not the first issue for the crossing between france and the uk. Freight trains have already been affected as have ferly crossings. This thought to be the first time passenger trains have been affected. It is not just the france uk crossing affected in this latest eu crisis. These pictures are from outside budapests main station in hungary where the train link was shut off from austria and up into germany. This is the second day that migrants have been prevented from boarding the trains that they have booked. This crisis is ongoing. Angela merkel, the german chancellor, urging eu leaders to find a common policy thats thus far been illusive. It means there is no immediate end in sight to this crisis which has become a Major Political and humanitarian issue for europe this summer. Thank you very much, wilfred frost from london. The s p 500 is now out of correction. However, coming up, a very bullish money manager still thinks the s p will end the year at get this 2 t 1 2,100. Thats about a 10 rally from here. And, big cap stocks that are looking like a Good Opportunity in the selloff. We have the names right here for you on cnbc, first in business worldwide. Nts ever photographed mean ms. Colegrove. But your dell 2in1 laptop gives you the spunk for an unsanctioned selfie. Thats that new gear feeling. All laptops on sale, save 230 on this dell 2in1. Office depot officemax. Gear up for school. Gear up for great. The drought is affecting at pg e weve definitely put a focus on helping our agricultural customers through the drought. When they do an Energy Efficiency project and save that money they feel it right in their pocket book. Its exciting to help a customer with an Energy Efficiency project because not only are they saving energy but they are saving water. We have a lot of projects at pg e that can help them with that and thats extremely important while were in a drought. Its a win for the customer and its a win for california. Together, were building a better california. Wall street dialling in a bit on at t. That stock upgraded to buy from neutral at citi group. Citi saying that the recent pullback is an attractive entry point. Imagine that. Firm also citing potential up side from at ts recent buyout of directv. Meantime, navistar shares taking a hit. The truck and enginemaker reporting its 12th quarterly loss in a row. Results suffering from restructuring and warrantee costs. Amgen saying its experimental osteoporosis drug was more effective than the eli lilly treatment thats already on the market. That stock up 1. 27. We wait for the feds beige book that will cross at 2 00 eastern time. The dow is up right now about 204 points. Pretty good day for the bulls, though after yesterday, probably not the headlines that it would normally garner. You are absolutely right on that one, brian. We have the stock exchange, jeff carbone. Good to see you again. We are currently sitting at 1,3935 on the s p. Are you rethinking that at all . Certainly not. Headwinds of china, we dont know where that will land or what policy will come out. You dont think the worst news is already out on china . Chinas really going to be are they slowing below 7 . Are they 3 or 4 . But in the u. S. , revision of gdp at 3. 7 . Consumer sentiment maybe or Consumer Confidence higher. Investor sentiment may be low. Could be some good opportunities to get in. We are seeing that dip. Its been four years since we had a correction. Weve got a correction. You look at the volatility thats out there. The investments become pretty complacent. Even during the greece issue in europe. Vix spikes up to 50. Weve got volatility go into correction, i think we are seeing a correction. Wouldnt say it is going to be a vshape direction yet, but i think well see when the Economic Data and earnings coming out soon, job numbers continuing to improve, i think well see a good finish. We got a bunch of Economic Data today. Factory orders, productivity, labor costs, you name it, weve got it. It feels like the economys doing just fine. Do you think the fed really badly wants to raise rates . Absolutely. All. Janet yellen and the fed wants to do is raise rates, get us out of this 0 ,. 25 Interest Rate market were in. The big thing why theyd want to do it, they dont have a ammunition to quell inflation. But with inflation not being in their target number, the data is growing, but were not overheated. Why would the fed want to raise rates and slow down and overheated had economy . Were certainly not in that position. Until we get to the 2,100 at the end of the year, will we have another leg down . We had such a quick correction. If we go back up too quickly or maybe test the highs. If we test the highs too soon, i think we could see a correction in later september, early october. I do think well see the market finish up around 2,100 on the s p at the year end. Thanks. Brian, over to you. The dow up 200 points. Tech and telecom your best performers. Energies and utilities your best sectors. Our dominic chu has what he claims well be the judge of this, dom. You guys will be the judge of this. What happens when you look at the s p 500, try to find stocks that have held up relatively well that pay great dividends and trade at a discount to the market . The answers are stocks that may surprise you. All that and more coming up next on power lunch. Keep it right here. Its from daddy. Sfx dads voice i love you baby girl. Duracell quantum lasts longer in 99 of devices so you can always be there. While many out there are, no doubt, running for the hills, others see this recent market swoon as perhaps a bigtime buying opportunity. Youre supposed to buy low, and then sell higher later. Thats what were going to bring you here on power lunch. Dominic chu here with us with some interesting plays for investors, not perhaps your usual overdone, over talkedabout wellknown names. Theyre not going to be facebook, amazon, netflix, google or apple. These are not recommendations but theyre just objective screens that we put in. If youre looking for certain things in the market, these are the stocks that are going to provide them for you. S p 500, 500 issues there. Which ones are within 10 still of their recent 52week high . Its about 100 of them. Put that up there. Its not that bad. 99 stocks are still within that 10 range from their recent highs. 99 green balloons. Or red ones. Lets take those 99. 18 pe or below, meaning trades around the market multiple or less. That becomes 17. Now which ones pay you more than the current 10year treasury note in terms of yield. All of a sudden that becomes 6. 6 out of 100 meet those criteria. Here are those stocks. They are names we dont often talk about but a couple of them have some interesting themes. First of all, cincinnati financial. Insurance. Its an insurance company. 3 yield on that guy. It meets those criteria. Darden restaurants. Its now pretty much just the olive garden, longhorn, they got rid of red lobster. Thats 3 as well. Lockheed martin and raytheon both have 2 yields. Theyve both held up okay during the turmoil. Not great but still relatively well. The middle east is still hot, were still going to sell planes and boats. Right. Then two other insurance companies. Progressive and xl group. Insurance, reinsurance. Generally the insurance business. Those guys both have 2 yieldsplus as well. So these sticks stocks, as of yesterdays close, are the only ones in the s p 500. That, again, pay a dividend yield higher than the current treasury. Also trade at a discount to the overall market valuation, and, again and have held up at least reasonably well given the current market turmoil. I dont need to tell you this but this is where im going to say what weve said about a million times on this fine program. Which is that the yields are good this is great work, as always but yields dont have to stay. Yields can go away. These names are a little different than the oil patch, but just here today, gone tomorrow for a lot of companies. Sure. Fair enough. Especially if youre in an oil company or something where the industry or Free Cash Flow is doing that. Right. Generally speaking, these guys have not fallen by as much. And with darden, you actually have a gain year to date. These guys have held up on a momentum basis better that be the overall market. The other thing i would say is that 18 as a market multiple is a little high historically. It is. You say under the market average multiple. Thats great. But 18 might be a little rich for some. Fair enough. But then we want to cut off on these things just to kind of get you an idea for how some stock pickers are looking at this. They want some criteria, some factors, seeing which stocks all meet in the middle. That simple screen, those are the stocks that come up. Maybe an idea generator, dom chu. Thank you, good work, as always. Dom is always an idea generator. Talking about the overall market, the dow is currently only slightly below the session highs, gaining by 211 points right now. The nasdaq is up by 69 at session highs at 4,705. Lets get over to the bond market where Rick Santelli is tracking that action at the cme. Hey there, ricky. Hi, mandy. Of course we know that the beige book is coming out shortly. Maybe this beige book will garner more attention than other beige books because of the implications. Traders already saying, listen, if they dont want to raise rates maybe theyll lean towards a dovish beige book and the districts will report growth a little less than average. I cant answer that but a lot of eyes will be glued to cnbc. Intraday 2, virtually unchanged. The 30year, you see the pattern is different and the yields are higher. The curve steepening a bit today. The 10year bund overseas, same pattern. Theyve let us up, everybodys kind of idling. They have their meeting tomorrow. We have beige book and our fed next week. The dollar index is strengthening a little bit but the last three months, somewhat middle of the range. The dollar there moving higher. Gold is moving lower just as it is getting ready to close. Lets get more on gold prices from Jackie Deangelis at the nymex. Gold is losing a little bit of ground today as we are seeing stocks recover just a little bit. The safe haven trade really hasnt been on here even in this market turmoil and volatility that weve been seeing. Whats keeping gold supporting over 1,100 is the fed. Gold traders do not believe that the fed is going to raise rates in september. That has been good for gold so far. That said, that makes the jobs report very important on friday because traders will be looking at any sign to see if there is going to be a change in what the fed may do. At this point gold prices just under 1,135. The dow and nasdaq are currently sitting right at session highs. But is this just a retest or are we headed lower . Much. Plus, the recent swings in the market have many worried about a popular investment in their 401 k plan. Does your Retirement Fund have a risky position . Well analyze that as well. Hello. I am technology th