industrial and technology the worst performing sectors. as for what the best performing sectors, you've got health care one. one of the reasons for that is over the past hour we did get some reports that anthem has made a taker of a bid for cigna which is now at all-time highs. cigna has apparently to the reports rebuffed that takeover bid but we'll get more details with bob pisani in a second. health care has popped its head into the green. but one stock that's been really crushed in today's sell-off u.s. steel. down 4.7% as we speak. about 12% to the downside so far this year. >> let's get trading action now. bob paisanipisani. is it about greece? >> it is mostly about greece. people were wondering if the fed had anything to do with that. i'd say this is about 70% concerns over greece. since europe closed we've moved up. speaking of europe we closed pretty poorly. this is the lowest close of the year for germany, 10,984 but still up 11% for the year. greece down rather notably. home builders having a great day. standard pacific and ryland are merging. that's moving some others like hovnanian and tri pointe as well. we had quite a move up in cigna corp. on reports that anthem has made a takeover offer to them. according to reports they've been in discussions for months. in the past ten days anthem has made two bids for cigna, including one at $175 a share. these are not confirmed reports but these are reports out earlier. you see that vertical move around noon eastern time for cigna. if you look at some of the other hmos, even anthem is trading to the up side along with some other ones including aetna and healthnet. last month human thata entered takeover talks with rivals. names included cigna and aetna. humana moved up here. the whole group is in a bit of a frenzy with takeover speculation. let's head up town to the nasdaq. bertha coombs following the big movers there. >> some of the biggest losers today are sandisk and micron. morgan stanley is cutting ratings today from overweight to underweight. some of the others though are moving higher today so the chip stocks overall, they aren't quite as negative as they were at the open. avago moving higher one of those stocks that's involved in m and m&a. anthem moving higher. one of the things management talks about over the last couple weeks is that they do want to grow their presence in states like new york, presence in states like ohio as well and they do intend to do that inorganically. they have $2 billion in cash so they can afford to do an acquisition. some of the other fallout that we're watching today, the other big deal -- cvs taking over target's in-store pharmacies as well as a number of its clinics as well. analysts are saying catamaran could see a little bit of a problem there. catamaran catamaran, which is a pbm being acquired by united health lass a contract with target through 2016. cvs could gain on that. it is not pressuring express scripts though. they have to deal with anthem to be their pbm. a lot of folks say that's going to continue so they are still going to be strong with regard to that. >> thank you for that bertha. fears about that greek debt default sending shockwaves across europe -- again. the major stock markets there ending lower. seema mody is loev inive in london. >> the story continues, this time around it is a lack of productive talks between greek leaders and its creditors. that's pushing some investors that i speak to here in london to speculate as to whether greece is in fact on the brink of failure. the meeting on sunday -- get this -- only took place by around 45 minutes. and no agreement was reached. now it is this lack of negotiations, the lack of deadline that's being reached that's pushing some investors to pull out of european ecquits. in fact banks the worse o'performing sectors. germany's eu commissioner today saying greece could face a state of emergency on july 1st if a deal has not been reached between creditors. mario draghi whether he speaks the market listens. the ecb president says we need a strong and comprehensive agreement with greece and we need this very soon highlighting the urgency in finding a solution. in the meantime greece is seen as a reason to sell stocks and bonds. i want to draw your attention to the prif cal debt market. we are looking at spanish and italian yields rising on the fear of greek contagion, something we've seen in other situations. we also want to draw your attention to what's happening in the german dax. this is what investors in london watch, many times seen as a leading indicator for the broader european markets. now down 11% into correction territory. investors i speak to say as we get closer to the end of june with no deal being reached we could see further volatility ahead. >> thank you. will the stock market finally see a correction due to concerns about greece? or anything else that we've talked about? joining us michael farr a cnbc contributor and art hogan, chief market strategist with wonder wonderlimit. securities. is the market overworried about greece or are they underworried? >> well i think that if this were a brand-new story and this were six years ago we'd be underworried. i certainly think it would have been a lot more impactful to local markets. i think you bring up a very good point. we know very well that this is not going to be a lehman like event. this is very much like rhode island leaving new england. i think we're going to move on from this. unfortunately when the noise is happening and the volume of the noise ratchets up it gives us an excuse for those people that are prone to. want to take profits to do so here. i think that's what we've seen. i certainly don't think -- one of the three things that will happen to greece, either they find a way out and meet a deadline in a couple of days they'll walk away and default or we're going to kick this can down the road one more time and the latter is probably what happens over the next course of a week or so. but while that's happening it is very hard to get investors to focus on the markets and fundamentals which are actually improving this particular quarter. >> art raised some excellent points there, a lot of people out there expect this will eventually get down the road again and again and again. god knows for how long maybe even for more years. therefore do you feel if the u.s. market just has a little bit of crisis fatigue here and hasn't really priced in a worse o'case scenario? >> i think yes to the two points that you made. one, there is a little bit of fatigue. it is a crisis fatigue but i think there's always a bull market fatigue. we've been going up and up and up and we're sideways this year. a sideways market after this kind of a rally is not a bad thing at all. particularly if you let earnings and the fundamentals build underneath a new high market level. that's kind of dreamy for most investors. i feel totally schizophrenic about greece. is it important, is it not important? one of these days it is going to be important and the reason it's important is going to be the precedent that the eu sets because other folks have trouble, too. so i think that this is probably not the cause of a significant market correction, but again worth paying attention to. it's gone away every other time. >> art, listen. i'm not saying greece is not important. it may be the most important thing in the world five years from now. i have no idea. i look at the stock market as a discounting mechanism. this year we've been "freaking out" about the dollar and greece. guess what? the nasdaq is up 3% this year. it's hardly soaring, but it's not down 20%. i think you get my point. >> yeah. your point is well made. top michael's point as well. this is a market that's biding time. we certainly had a significant run over the last five years and a great run into the end of last year so markets tend to correct in three ways. either in time or in price or in rotation. we've seen a little bit of all of that. we spent a lot of time at the same place in the s&p 500. the nasdaq's up 3% on a year to date basis and we're half-way through this year. when you think about that then we're correcting in time. when you think about sector rotation which i think is much more important, a point in time where leadership has shifted in the last two weeks, financials have taken over that's good news. i think some of the dividend darlings -- >> i screwed up art. looked at the wrong column. the nasdaq is up 6% this year! not 3%. by the way, mandy, do you know what the greek 2.-year bond is yielding? >> 28.5%. i plucked that out of my head. if the u.s. market doesn't give us anything that slightly resembles a correction this year but we start to see that kind ever action over in european markets, would you say that the better buying opportunity right now on any of these crisis headlines would be europe? >> i think buying into markets that are still benefiting from ongoing quantitative easing makes sense. so even though europe has had a move even though certain asian markets have moved, i think that they're going to keep up and that probably continues. in the u.s. i think you can look at some of the multi-nationals that art mentioned. i'm going to steal art's time price and leadership rotation. that's awesome. art, i'm stealing it. but i think if you look in the u.s. some of our companies haven't done very well. you look at a proctor gamble -- i'm not recommending it but it is down 13.4% year to date. 3.4% dividend. and it's got a beta of less than half of the s&p 500. so it's not a volatile stock. great balance sheet. i can earn 3.4%. and my mother will be happy in that stock. >> okay. michael michael, we're all about keeping miss farr happy. to it the housing world now where cnbc has done many many stories about silicon valley's red hot real estate market. now just how much tech is impacting property prices. diana olick with incredible numbers. >> reporter: hi mandy. we know what tech has done for silicon valley real estate, and that has some tech workers moving to other large cities. redfin which first reported the sharp rise in silicon valley deserters, look what tech is doing to other markets outside of silicon valley. they used google apple, facebook and amazon as a proxy for each city's overall growth in technology hiring proxy. what they found is amazing. for every 1% increase in technology workers, there's roughly a .5% increase in home prices above and beyond the national rate of appreciation. now that may not sound like a lot but when you look at big jumps in tech jobs in cities like seattle, austin denver chicago and boston all of these cities, which are seeing above-average price appreciation, are seeing above-average tech growth. except for the outlier which is boston. and that may be because boston has seen an outflow of population due to recent harsh winters. at least according to the report. but overall these are big markets. the chief economist says it is surprising to her there is even a correlation to these markets outside of silicon valley, our ous -- obviously is because a lot goes into home prices. interest, income et cetera. but then you have to think about the stock prices of some of these companies which add to their employee wealth and adds to their buying power. a very interesting link on cnbc.com. mandy, let's stay on the housing theme. bob pisani mentioned a few minutes ago, the home builder stock story here. pultegroup lennar up. standard pacific and ryland emerging for around 5 billion mr. that's the deal size. they'll create the fourth largest builder in the country. both those stocks up 5% to 6%. both those stocks based in southern california. meantime aig also a bright spot in today's trade. shares of the insurance giant up about 2%. trading levels not seen since the financial crisis. and today, a financial loss but moral victory for its former ceo mary thompson. >> i'm not the former ceo. that being hank greenberg. thank you, brian. judge thomas wheeler of the u.s. court of claims ruling in favor of aig's former ceo hank greenberg and his fellow plaintiffs in a class action suit brought against the government saying that their fifth amendment rights were violated by the terms of a government bailout that saved the insurance giant during the financial crisis. however, wheeler wrote, because aig would have failed without the package of loans and guarantees put together by the new york federal reserve greenberg and the class are not due the $40 billion in damages they asked for. in his 75-page opinion, judge wheeler ruled the federal reserve acted illegally in taking a 79.9% stake in the company in 2008, writing there is no law permitting the federal reserve to take over a company and run its business in the commercial world as consideration for a loan. representing the plaintiffs superstar lawyer repeatedly argued last fall that the fed went beyond the scope of its emergency powers in demanding a stake in the company in return for financial aid. the government which said it is reviewing the decision countered during the trial that the fed acted within its bounds. now among those testifying at that trial, former fed chief ben bernanke and former treasury secretaries hank paulson and tim geithner. as for the pop in aig stock we are seeing today, there were some fears that the insurer might be liable for some of those damages so its stock obviously higher on the news that because of the judge's rulings. there are no damages, it is off the financial hook. we'll wait to see whether the doj actually refers or appeals to the supreme court because, again, it raises what the emergency powers that the fed might have in another financial crisis. >> a big case. mary thompson thank you. one sector that's still on fire -- biotech. the ibb biotech etf is up 45% in the past one year. we'll show you what's changing the face of health care and it's really really cool stuff that you just need to so. but as we head out, the biggest winners and losers on ot s&p 500. "power" is back right after this break. male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. now for the headlines. activist activist changing to allergan. the stock is up over 15% year to date. kelly blue book coner cox automatic mowive buying dealertrack technologies for $3.5 million. it will allow the company to provide software solutions for the automotive injuries. shares up today. 57% for dealertrack. wow. game publisher idreamsky technologies ceo considering taking the company private for $14 a share. less than a year after the company went public. today that stock is down by over 10%. meantime, many of the biggest players are in biotech are in philadelphia for the bio international convention that kicks off this week. this year there may be less bio but more tech. explain that obscure statement, meg. >> reporter: hey, brian. we're here at the click ideas exchange which is kicking off a lot of conversations about cool futuristic health care technology ahead of the biotechnology conference. earlier we showed you some virtual reality. this is showing hologram technology to help improve health care communication. we have some folks here called hum-o-grams rather than holograms. they say they can be used potentially for communicating at big medical conferences, a ceo or physician can go there. they are also using it in interactive ways to explain biology, to show product demonstrations, things like that so you can start to interact with the product. they're using microsoft's connect technology here to have that interaction. this is a product demonstration showing us just how a medical device might work. you it can actually start interacting with this 3-d holographic technology. you can also get inside of a cell. that's really interactive. you can walk around it. it can actually sense you. one of the things art media is also doing is working with tony robbins so they can get a 3-d live presentation where he can be giving a presentation to thousands of people in one place, and it will will be simultaneously broadcasting all over the world. back to you. >> very cool stuff. thank you very much meg. debt by degree. how america's student debt and the effect it is having on the entire u.s. economy. check outed nasdaq 100 stocks. micron is the boggest lose estbiggest loser. "power" is back in two. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. check out this incredible video. at least 12 people are dead and it 20 people missing after floods hit the capital of the country of georgia. the floodwaters destroyed animal enclosures at a zoo. releasing a number of wild animals into the city including lions, tigers bears, wolves a hippopotamus and even a jaguar. some of the animals had to be tranquilized, some were returned to the zoo. others were shot by police. the dektirector of the zoo said none of the human casualties were caused by animal attacks. a big week for the bond market, folks. we've got a fed meeting, janet yellen's news conference. rick santelli checking all the action at at cme. i didn't even mention the big "g" word greece. ricky, what's going on with bonds zp. >> greece traders down here have been cynical. half a billion euro dollars worth of outflows today out of greek banks. pretty soon there's not going to be anything left to really strive for. if you look at an intraday of 10-year, there was an early drift forward in yields but it fell back a bit. a lot of this is technical this week on the fed meeting. if you look at intraday bund yields that closed four basis points off their low yields. many are looking at the dax. the dax hit its lowest close around 10.9. they closed the year at 98.05 so we're still something above it. it is only up about 4% in dollar terms. the one and two-day of the dollar index, inlike treasuries. dollar index couldn't stay or challenge yesterday's lows being friday so it is a little buoyant but on light volume. listen to this -- stagger be stat. america's student loan debt is now sitting at nearly $1.2 trillion. that is more than three times what it was just one decade ago. the implications could be enormous in coming years, not just for the student borrowers. sharon epperson putting numbers into perspective. please help us. >> these are big numbers with big implications. more than $1.2 trillion in outstanding student loans taken out by more than 40 million customers. their average student loan balance is about $29,000. that debt isn't always paid back. for federal student loans the average amount in default per borrower was just over $14,000 in the third quarter of 2014. but perhaps the greatest impact is yet to come. already many young people are putting off buying homes. home ownership for those under 35 has fallen from about 43% in 2005 to 35% today. many in that age group are also delaying starting a family. the birth rate for women between 20 and 29 years old on the decline since 2008 and is now at a record low. many young people are following potentially more lucrative career paths veering away from social work health care -- much needed jobs to higher paying jobs in technology and financial services ultimately paying off their huge debt load may come at a significant and economic social cost that's causing a ripple effect with consequences that could be felt for years to come. >> people are saying i don't necessarily want to be a banker. guess what? i have to be because i've got $100,000 in student loans. the other jobs won't cover it. >> all week long we have this sear liz ofries of debt by decree where we are looking at these issues how are people able to pay down their debt how are parents taking out the loans for their kids struggling trying pay their student loan depth as well. >> big problems. >> such a burden. stocks are down but well off their lows. by the way, tech has been one of the performers, health care has been trying to eke out gains. which areas are showing strength and which are taking the hit in this market? >> you spoke about that technology thing. there is one segment of technology in particular that's really doing pretty poorly month to date. we'll tell you what the sector and industry group that is coming up next. ♪ ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. hello, everyone. i'm sue herera. here's your cnbc news update for this hour. the head of the united nations opening the yemen peace talks in switzerland with the call for a humanitarian cease-fire. u.n. secretary-general pushing negotiators in the talks to resolve the crisis as over 2,600 people have died in the fighting in yemen so far. a fourth juror has been dismissed in the colorado theater shooting trial. the judge granting a defense motion to dismiss a woman whose brother-in-law was shot in an armed robbery in denver last week. 20 jurors and alternates are left to decide the fate of accused killer james holmes. hillary clinton beginning a full day of campaigning in new hampshire by pledging to boost childhood education. she called for federal aid to states to make quality preschool available to every 4-year-old within the next ten years. an american cancer society study estimates that nearly half of the deaths in 2011 from 12 adult cancers were linked to cigarette smoking. the data indicates that while smoking rates have decreased, the risk of cancer death among smokers can increase over time. that is your cnbc news update this hour. back to you guys. let's look at how gold prices are shaping up as they are getting ready to close as we speak. to the up side by .5%. $6.60. not really capitalizing on the problems over in greece right now at least marginally. copper sitting around a three-month low. silver is moving up by 1.6%. but palladium and platinum are lower. the stock market is down today. you've got concerns about greece, maybe concerns about earnings. maybe concerns with the fed. remember, federal reserve dix kicks -- kicks off a two-day meeting wednesday. what areas are the market are showing so strength which ones are showing weakness. dominic chu knows. >> absolutely month to date we've seen a little bit of choppiness in the markets here. we haven't gone that far. we're just about down 1% overall. the s&p year to date only up 1%. it hasn't been very fast right now. >> we haven't collapsed either. >> we've been treading water near these record levels. month to date it is an interesting story as well because we are seeing marginal weakness on a month to date basis, we're down about 1% here on a month to date chart. if it comes up. on a month to date chart, down 1.75%. if you look at specific sectors, we talk about the utilities, energy all the time we want to drill down to specific industry groups within those sectors. if you take a look at relative strength, so far banks and insurance companies have been a big part of that story. rising interest rates. maybe things get better for the banks. the fed kicks off that meeting this week for possibly a rate rise. no one is expecting it. but look at it those banks are up 3%. as an industrial group, this is commercial banks traditional lenders. those guys are up pretty big just on a month to date basis. trucking logistics and air freight, like the fedexes and u.p.s.s of the world -- this is within the s&p 500. these are s&p 500 industry groups. the weakness you'll see here is in some multi-line utilities and semiconductor stocks. one of the big ones -- micron. >> this is almost all intel and micron which is weird -- >> sure. >> -- because the industries had a lot of deals so the stocks normally go. intel, no. the logistics companies, guess what. after the port strike? expeditors, i got a buddy that warnings at one of these companies, people were paying them anything to get their stuff from a to b because they couldn't get it through the ports. customers wanted it now, no matter what it takes. i want dom now. now. let's get to more overall market action. ben pace, brian, you were just in europe last week talking to clients. what did they say was their biggest worry to you? >> couple things. number one, they continue to be worried about the path of the united states stock market rally. now that the inevitable is starting to come true that the fed is actually going to raise rates, they're thinking about exiting and lessening their u.s. positions. >> why would they think about starting to exit now? we've known this for god knows how long. >> i think investors actually still remain quite reactive. they want to wait until they actually see it. two, they still want to buy europe. i think that's why you see volatility with what's happening in greece. for all intents and purposes europe had a nice rally but at the end of the day europe still faces a lot of fundamental structural problems that the u.s. has taken care of already. from our perspective this may be an opportunity to kind of recalibrate our u.s. positions. >> when you say recalibrate, that means -- >> meaning the consensus is to leave the u.s. right? consensus has been wrong for six years on this entire stock market. we'd be a little cautious in terms of just throwing out the baby with the bath water with respect to starting to turn negative. >>. >> i want to bring in ben as well. what's your perspective on everything that's happening? >> it's interesting, women he a glad bryant claire-- brian clarified his positioning. going into the year we didn't want to fight the monetary authorities with ecb and bank of japan being as easy as they were. we wanted to participate in that so we're slightly overyoit europe equal joit japan. the thought was to fade those rallies as they occurred. we've stayed so far but the sense is that the european economic pick-um isn't enough. it is not broad enough to increase earnings. so the thought is perhaps a decrease in the weighting towards europe, maybe even japan and increased weighting toward u.s. which hasn't reilly done much from a stock market perspective but whose earnings growth should pick up towards the end of the year. >> do you think this is an easy job? is it easy? >> no it is not. >> why are you doing the easy trade? the easy trade is follow the qe. from a company perspective in europe and japan are nowhere near what happened in america between 2000 and 2010. what we like to call the lost decade. europe and japan have a lot of work to do. if you want to buy stability, you want to buy american. >> do you expect 10% up side by the end of the year. you think summer's going to be volatile, then sudden spurt? but based on what? >> we've been dealing with indecision with respect to falling wti prices overall commodities, interest rate fears. we've now reared an entire generation of investors who all they know is you buy stocks because they go down. they don't know the fundamental stishg circles. our favorite sector is by far financials and we've been there a long time. >> starting to be a winning trade. thank you very much. you can go to power "power lunch"." lunch."cnbc.com. over to you. the strong dollar has been a pain for many in corporate america this year but just how much of it is really impacting the bottom line? that is straight ahead on "power lunch." automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. be alive after being mauled by sharks on the same north carolina beach yesterday. both teens were swimming in shallow waist-deep water about 20 yards offshore when the horrific attacks occurred just two miles and two hours from each other. the victims were a boy of 16 and a girl of 12. they had their arms amputated. the girl also suffered a massive leg injury. both are out of surgery, both are in stable condition. the beach does remain open today though, by the way. >> really terrible. the strong dollar has been a bits of a pain in the neck for a number of companies. but let's get back to what's happening with the oil price, brian. what's happening with the longer term outlook there? >> we're going to ask for an extended up side in oil prices. the cio of sun life financial joins us now. is he a new face to cnbc. welcome to the program. thanks very much. you're up there in a far northern land called canada whereas we have gone and discovered for ourselves oil plays an even outsized role for you than it does for us. what are you looking at from the long-term perspective for oil prices and for its impact across the whole north american economy? >> yeah. what i would say is longer term oil prices are going to continue to rise up but i think in the shorter term we have to worry a little bit about more of a pullback given that there is still significant amount of supply and contrary to probably a lot of people supply really hasn't diminished a lot. it actually has continued to increase and that will continue to put pressure on oil prices in the short term. >> when you say "continue the pressure," we pretty much been in a range between mid 50s and low 60s for a couple of weeks. everybody's been waiting for this move but we haven't seen it. do you expect it will continue to fall? >> yeah. i think in the coming months you'll see oil test the $50 level again. it is not going to be a v-shaped recovery here. more like a w-shape. but even at w-shape, i don't think we're back to $100. i think we're more close to $60 or $80. in our view that's the break-even point for many oil pro dicers out there. in the short term i think that is supply numbers come out and people realize it is higher than expected, i think you see pressure on oil prices at that point in time. >> then what is the investable or maybe even non-investable take-away? >> yeah. i think the key here is that it's going to be good for people who are importing oil to their economies, tough for those exporting oil. canada happens to be one of those areas. we're a big exporter of oil. this is definitely going to impact areas like alberta, saskatchewan where there is a lot of demand and high oil prices. >> welcome to the program. we'll get you back on cnbc soon. we appreciate it. thanks very much. let's get back to the strong dollar which has been a pain point for many in corporate america this year but how much is our kurncurrency affect being the bottom line. a report released today will hopefully answer that question by analyzing the effect of the rallying dollar on first quarter earnings. sara what are the findings? >> the total cost -- 29$29 billion. that's how much currency swings that shaved off earnings for north american companies in the last three years. it is the latest by a firm that advises companies on how to manage this type of risk for their foreign sales exposure. if you add european companies to that mix then you'll get to $31 million that was wiped out from corporate profits. european companies like adidas has been slammed like the russian ruble. that total hit from currencies is four times as much as it was just the same quarter a year ago. for american companies, the main culprit is the your yo, falling more than 11% just during the first quarter. companies also blame the yen, the ruble, the british real and the british pound for some of the losses they face. the report says as long as economies around the world remain weak we should expect to see continued currency volatility. some relief may be around the corner. the reason is because the euro is actually up during this current quarter. up more than 4% against the dollar. that's good news for american companies like coke and procter & gamble with big business over in europe. pros are saying longer term the dollar is headed up as the federal reserve prepares to raise interest rates but in the near material here second quarter, the action should be helpful for corporate results and they certainly should look a little better than the first, which as we've confirmed with the numbers today, are pretty bad. >> i'm actually still hearing some people out there calling for parity. lawmakers in california just upped the ante in that state's water wars. also, the number of people who can call themselves millionaires just took a big leap. both stories ahead in the second hour of "power." plus, getting out of the rat race. sounds good. when her wall street job left her feeling out of touch, this former goldman sachs employee carved out a new career. in furniture. >> it was intoxicating to work on wall street but it wasn't meaningful to me. >> reporter: "escaping the cube." next. million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. ♪ ♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer! i like your place. oh, thank you, make yourself at home i'll be right back. hm. she's got x1. alright. huh, hm, ohh... monster? she seemed so nice at dinner. i'm back! ahh! uhh, hi... heyyy, whatcha doing? ohh, just... watchin' law & order. unless you want to watch something else. awww, you're nervous. that's so cute. ♪ welcome back everybody. time now for our regular series "escaping the cube." for one goldman sachs employee her job training overseas prompted a new career of her own in design. >> some people scratched their heads like you want to do what? hi. i'm jessica wickum owner of wickum solid wood studio. but i used to work at goldman sachs. i was a technologist at goldman for ten years. four of those years were in new york, then i was based in japan. working in asia means you're not only doing your day job you realize you're at night doing conference calls. i realized i had to do something to keep my busy. i had been to an exhibit in new york as a young person with my dad of this incredible pieces of japanese -- i thought they were artwork but it turns out they were just examples of traditional wooden joinery. i remembering that experience. i was like maybe i could learn how to do that? it was just a way to connect to japan and just to do something with my hands. after 9/11 the firm was restructuring and they wanted to send me back to the new york office. i wasn't ready to go back. i decided to quit and i stayed in japan and i was doing the woodworking until 2003. i came back to new york and i started out with a couple of tools. i had one helper and figured a lot of stuff out. so we had this show of our first tables. an architect from an extremely prominent firm saw the tables in the window and hired us to do our first big job which was for the national autobahn society. that started things. we make make tables for about $1,000 and we make tables for about $25,000. >> i wish i could afford one of the tables. may name is bo and i'm a friend of jessica's. this isn't just someone bailing out of investment banking and looking for a hobby. there is much more to it than that. >> i learned very early on that i couldn't just buy the material so we figured out that we had to actually mill the logs ourselves. we've done a couple of retail locations, couple of residence projects. i always try to exceed expectations. when a client says to me my god, this is even better than i imagined, that's what i'm after because it is so satisfied. >> many much wickham's tables are created from just a single tree and can take several years to go from raw material to the finished product. >> very beautiful tables. there are 1.2 trillion inn in there are 1.2 trillion$1.2 trillion in student loans. the correlation exists between tech and housing prices, specifically a 1% increase in tech work in an area means there are be a 1.5% increase in home prices. finally, we learn that judge thomas wheeler awarded no damages to hank greenberg in the case against insurance giant aig. if you missed any of the big stories in the past hour visit the wit at powerlunch.cnbc.com. the finance.yahoo.com question of the day. we asked you, america, and the world -- is a strong dollar good for the economy? guess what. 58% of you said yes, 42% of you said no. we'll tell you what you should invest in. "power lunch" back in two minutes. at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. ♪ ♪ time upon a once people approached problems the way same. always start at the starting. and questions the same asking. but that only resulted in improvements small. so we step a took back and problems turned these inside-up-down to approach them newly. and that's when we it saw. garbage can create energy. light can talk. countries can run on jet engine technology. when you look at problems in ways different you new solutions find. ♪ ♪ saudi arabia opening its markets to foreign investors. china's stock market now worth $10 trillion with a "t." and russia raising interest rates. if you are playing the emerging markets how do you invest in this environment right now? the emerging market as set team from jpmorgan. what is the very best case scenario for emerging markets when it comes to both the u.s. dollar and u.s. interest rates? >> i think that is the question. so i'll address each one separately. when it comes to interest rates in the u.s. i actually don't think higher interest rates are an issue. similar to the u.s. higher interest rates indicate growth. what bad for the yen is a stronger dollar. lou does it affect u.s. companies. if you think about the beginning of 2011 until last friday that simply has outperformed em by 86%. that coincides with when the dollar has been rallying. unfortunately, we don't believe the dollar rally is over which means that headwind is still there but we think we're more than two-thirds of the way for that dollar rally. >> here's the crazy contradiction. this would go against everything you would think should be true. when a country looks like it is about to default, the stock market rallies. we've pointed this out in many times on the show. because you free up payments. argentina's been head rot. venezuela's been red hot for a couple years. i don't want to call greece an emerging market, they might get offended. do you want to invest in troubled nations? >> our portfolio is biggest overweight right now in russia and turkey. >> russia's been good this year. the russian etf is up about 26% year to date. >> as their economy -- right. >> that's an official term. >> so if you think about warren buffett's old saying be fearful when those agree, into emerging markets we're finding a lot of opportunities because of that geopolitical uncertainty and because of the headwinds of the dollar. these are known entities. we're still lukewarm to the asset class level. >> what are you doing with china? you have liked china and china has been great but it is starting to look a little more rocky and their increasing headlines -- for example on friday there was thought there might be more limit on margin trading. just trying to reign in the red hotness if you can call it that. are you starting to think about getting out of china now? >> we have trimmed some positions but in the chinese banks we main overweight. we believe the foreign story is just beginning. catalyst for valuation is now just occurring so we think there's more legs there. >> is it a big risk, china? >> there's always risk. >> is it a big risk? yes, there's always risk. there there's a risk i'll get bitten by a rattlesnake. not in the studio. >> i don't think china's hard landing is in the cards. we don't see it. for that reason we are still willing to buy -- >> hard lining economically speaking for stock market speaking? >> more are a hard lining scenario of the more we like chinese banks because more liquidity will sl to be put into the system. >> you know vladimir putin once bit a rattlesnake. >> thank you so much. it is nearing 2:00 p.m. on wall street. it would be 9:00 p.m. in athens greece. hello, everybody. we're still the same people as the past hour brian and mandy. the dow is down triple digits, 115 points. the nasdaq also lower. some biotechs are dragging back. two of the biggest losers agios pharmaceuticals and sage. micron news corp., garmin and walmart. off of our lows if you take a quick look at the s&p 500, a lot of the down move we saw earlier was largely on greece. that's still unresolved. there you see coming off of our lows here. couple of sectors are moving though. all the steel stocks are terrible. we've got some carbon steel shipments for may that was down about 8%. all the big steel names are having a terrible day. new nucorps, ak steel to the downside. home builders up nicely. even the hmos are moving today. cigna has been approached by anthem according to feel familiar with the matter. they made two approaches to them including an offer of $175 -- unconfirmed reports. but that would be quite an offer. earlier in the month humana also indicated it was in the negotiations as well. that stock moved up rather notably when that happened. let us bring in jerry castelini, president and ceo of castle management. jerry, first to you. the market's down are you buying stocks today? >> yes, i am. you've been taught here in the last thousand s&p points to take advantage of fear and angst. boy, i don't know how many times we've let this greek situation create that for us but every time it's been a great opportunity to buy stocks. we have different leadership areas now than say, a year or two or three ago. but, boy, there's some interesting names and we kind of like there concept that over time, the eu will figure its problems out and that part of the world economy is going to start rocking again. >> when you say you are looking a the a lot of interesting things out there, come on! give us some names. "a lot of things" is a very broadway of pufttting it. >> this latent move in the financials in the sense that they have yet to really show a cyclical recovery for variety of reasons. the combination now of rates starting to climb back up and increases in c and i lending and other financial markets, it really does seem like it's time for still arguably the cheapest place in the entire stock market to finally have that move of three or four multiple points. that would be a heck of a run if you look at a name like jpmorgan or city corp.i corp., for that matter. the market needs to move into them and it seems like we're at that point. >> we talk so much about greece and the strong dollar you wants to talk about something i don't think we've talked about enough for a while which is valuation. do you feel that stocks are, as a whole -- i know it doesn't go for all of them -- as a whole -- overvalued? >> absolutely not. >> yeah they are. >> jerry, hold on. that's to hugh. >> yeah. the reason we've gotten stuck at the a 2,100, 2,120 level on the s&p 500, a lot of institutional investors, savvy, hopefully myself, have dug their heels in when we get to that level and the problem is valuation. it is really hard to find stocks that represent really good value. and even though we've had a decline in the last two weeks, we're still overvalued. so i agree with jerry in the sense you should take care of -- you should take advantage of fear and some of the declines we see in stock prices but, frankly, we're not cheap enough now. we've got to get to be 5% to 8% undervalued before i think there's any really meaningful up side potential in this market. picking your entry points is very important and right now we're not at that entry point. we've got to go lower to represent a good buying opportunity. >> that being said hugh there are some stocks you like. just last week you were on our show talking about your love for apples. put that one aside for a second. you've got two others. >> first of all, pick the right sectors. it is not just entry points. consumer cyclicals or discretionary stocks are important. health care. i'd take a look at target. we got good relative performance there and very good value. the second stock i'd like hat in the health care area -- there are plenty of them -- is gilead. i think that's not only good relative performance but also good valuation. that's the kind of thing i look for, positive relative performance and really good valuation. we've got them there. but again, be patient! dig your heels in! in time we're going to get even better buying opportunities in all the stocks that i like. >> all right, guys we will leave it there. thank you very much. well it has been a pretty solid start to the year for the home builders. the home builders index up. many of those home builders are moving higher on the back of a strong confidence report and a deal. let's go to diana olick to run us through the details. >> reporter: home builder sentiment took a surprising jump higher in june. more than twice what the street was expecting on this monthly index from the home builders association. sentiment moved higher by five points to 59. anything above 50 is considered positive. that's the highest since last september, and a year ago sentiment was at 49. that is in negative territory, it's been positive ever since. but go inside the index and it is even more bullish. the component measuring current sales soared seven points to 65 this even as prices jumped over 8% on new home sales in april. it may be a factor of a very tight supply of existing home sales. expectations for future sales rose six points to 69. that's the highest since 2005. the only part of this index still in the negative is buyer traffic at 44. but it did take a nice five-point jump higher. the south and northeast regions led that overall move to the up side. it is interesting, we talk about this lack of supply on the existing side really pushing the builders and new home sales. i had a guy knock on my door last week gave me a nice folder about all the comps in my neighborhood. he is a real estate agent, i have tons of potential buyers he doesn't have in he houses to sell. he wants me to sell mine. i'm not going to do it. >> wow. inventory issues there firsthand. the paris air show is under way. executives from all over the world are graerdathered just northeast of the city. phil lebeau has a lot to show us on the ground. >> reporter: brian, we expected this to be a little bit more of a muted year in terms of quarters being placed. and it was. only 225 orders between woeg andboeing and airbus announced on this first day. it might sound like a down year but the ceo gave his perspective on the situation. >> you would not expect that this is another record breaking air show here but we still think it's going to be a good one. by the way, we sold 146 commercial aircraft during the morning. >> not a bad morning. >> not a bad morning. don't expect us to do that with the same rhythm but you know we will end up with a good tally here. >> reporter: they may not be racking up big orders this year but the backlog is extensive. going out at least six or seven years depending on the aircraft. look at the deliveries between boeing and airbus. they are increasing. this year boeing expects to set a record of delivering at least 715 airplanes. and the other plane that's making news here do not from boeing or airbus but from bombardier. it is the c series. it took flight here at the paris air show. this plane has had a rough launching pad in terms of getting this thing built and certified. it goes into service in 2016. just 243 have been ordered so far but when we talked to the ceo of bombardier he said we'll confident we'll have at least 300 firm orders by the time it enters service next year. shares of bombardier, the c series is one of the planes to watch over the next couple of years. >> phil, stick around for a second though. there was another big topic that was out today, it was a new report and it suggests that air passenger traffic could double by the year 2030. i know that sounds like a long way off but it is actually 15 years away. many airports already at or near capacity. do we have the capabilities and the facilities to handle this expected jump? >> reporter: with next generation radar, we can handle some of that increase. but ultimately, airports around the world are either going to have to expand if they can expand, or cities and municipalities are going to have to build another airport. an additional airport. they've looked at it in cities like chicago and elsewhere around the country. unless you are like denver and you've got a lot of space to expand you are land locked and they're going to have to ultimately do some form of expansion. >> phil, thank you very much. here's what's on the menu for the rest of the hour of "power." california lawmakers just upped the ante in that state's water wars. the details behind what they did ahead. new numbers out in how many americans can say, hey, i'm a millionaire. later on we're breaking out our stock picker's playbook on this down day. stick around, we'll be right back. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. my name is julia grinberg. i work in energy efficiency for pg&e here in san francisco. my job is to help my customers save money, save energy and save the environment. when it comes to renewable energy, pg&e is absolutely committed to creating a clean energy future. one out of every four solar rooftops in america is in our service area. it's wonderful to work in the city where i live and help my neighbors and i feel like the work that i do reflects that every single day. together, we're building a better california. gold prices up .6% right now. not bad. but better than that the gold miners, the biggest of them all, newmont mining up 2.7%. about 4 1/2 times that of the price of gold. north korean state tv releasing new images of leader kim jong-un. the pictures show him apparently watching a north korean ship test fire missiles into the east sea. a south korean defense official says that north korea did indeed fire three short-range missiles into the sea over the weekend. meantime in south korea, more than 2,000 schools are re-opening today following a deadly mers outbreak. the world health organization as well as south korean held officials believe the epidemic is confined to hospitals only. to a conflict now of a different kind the growing fight over water in california. state lawmakers have just upped the ante. jane wells has those details. >> reporter: hi brian. historic cuts to very senior water rights back to 1903 has everybody concerned what does it all mean. it mostly means get ready for the lawsuits. in many cases so far, the water being curtailed to farms around cattle ranches in the north doesn't exist. it already dried up. it's so-called natural flow water that isn't flowing. also reservoirs can't be touched yet. the water and power agency which we visited two weeks ago with the cheapest water in the country was on the list for curtailments but it's already got plenty of water storage in its own reservoir so no immediate impacts. what's the big deal? more cuts are expected later this summer. this central farmer grows onions and garlic. the problem is he's contracted to buy water from people who are on list and now they may have to break that contract. expect all of this to end up in court. >> someone's looking for a neutral, independent third party arbiter over all of this. there's very little trust amongst the water users, urban folks are always suspicious of ag and ag suspicious of the environmentalists and it goes round and round. i think ultimately there will be some adjudication of water rights. >> one reason for the new cuts is to keep enough water in massive lake shasta so that the water stays cold enough for the water salmon run. yes, that's federally protected. fish versus man. the state is taking away water from people to help fish and it isn't just farmers. there are cities on the list including chico. the entire city where the public works administrator told the local paper there has got to be some mistake. >> jane it just rolls on. jane wells, thank you. up next eye-popping new numbers on how many americans can now call themselves millionaires! plus hillary clinton takes a big jab at wall street. find out what she said when "power lunch" returns. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class from mercedes-benz. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. welcome back to "power lunch." united health care shares are spiking on a report out of dow jones saying the health insurer is eyeing possibly cigna and aetna. this was just after the "wall street journal report"ed that cigna has rebuffed a takeover offer from larger rival anthem. that value is sitting at 45 billion mr. u humana shares are soaring. they are the once health insurer that's not being talked about as possible deal chatter in headlines today. aetna, cigna, united health anthem all moving today. humana shares moving towards their levels. the number of people who can call themselves millionaires just took a big leap. let's bring in robert frank but how many people are we talking about? >> we are talking about 2 million more people that now call themselves a millionaire as of last year that's according to a new report from boston consulting group. there are 17 million millionaire households worldwide today. total wealth of more than $67 trillion. those millionaires control 45% of the world's wealth. the u.s. still has the most millionaires with 6.9 million. china is second with 3.6 million. followed by japan with 1.1 million. china grew the fastest up 49% and half of all the world's new millionaires last year came from china. where did all the wealth come from? well, stock markets. nearly three-quartz of new wealth created last year who are $13 trillion came from returns on existing wealth. >> the wealthier are getting more and more wealthy. they have a much larger share invested also in equity markets and it has been quite a good year on the equity performance. >> good year indeed. the super rich those with $100 million or more they are growing the fastest which sort of continues this trend where it is the very top of the top, the $100 million, the billionaires, that are gaining the ploeft and derifg most and deriving the most. >> thank you very much. robert frank. robert, stay with us here. we also want to bring in cnbc contributor, to get your take on comments from presidential hopeful hillary clinton what she made over the weekend about hedge fund managers. this is mrs. clinton speaking at a rally in new york state. listen to what she had to say. >> while many of you are working multiple jobs to make ends meet you see the top 25 hedge fund managers making more than all of america's kindergarten teachers combined and often paying a lower tax rate. prosperity can't be just for ceos and hedge fund managers. democracy can't be just for billionaires and corporations. >> jimmy and robert listen. i understand it's a populist topic right now and it does resonate with the people but people also know that bill and hillary clinton are very, very wealthy. they are thousands of percent welter in than even an entry level 1%er in new york state. will this work with her? >> well i think you're right. it is a populist issue but it is also a populist ishsue that is sort of growing in popularity. if you look at surveys, people are sort of more worried than they used to be about the income gap, about income\s. there are more willing to accept redistribution. they seem to be more willing to levy higher taxes. from that point of view this is not a politically risky thing for hillary clinton to say. does it sort of turn back on her? people say you're worth millions. yes, she could say, but i'm also willing to tax people like me more. we'll see if she wants to raise capital gains taxes. we'll see if she wants to get rid of the carried interest tax break. she's saying i'm wealthy, but a lot of democrats have been wealthy and they fought for the middle class. the kennedys were wealthy but they fought for the middle class. >> you loo being atk at where the money comes from especially in the democratic party, wall street has given more to the democrats than the republicans. especially in the last couple of presidential cycles. maybe they were simply trying to vent on the perceived winners. one of those donors is one of the richest contributor. >> when she ran for president and the senate it was citi group, and their friends on wall street. this will be tough for her to say i'm antiwall street antihedge fund but then go back and raise money for these folks. the democratic party has un unleashed the beast sort of in the last presidential election on class warfare. i think it is fine for wealthy progressives to say i'm pro-middle class. but i just think it is the messenger now as much as the message when it comes to this populist politics. >> who isn't pro middle class? hillary clinton has talked about her modest upbringings, understandable. that's why this country's still great. a lot of people have gone from nothing to something financially. but what are the proposals for raising up the middle class? how do we do that? the world's -- income\s ineeincome\s around the world has shrunk. how do we fix it here? had. >> hillary clinton will have a number of proposals. i think she'll talk about raising the minimum wage maybe more employee stock ownership. she'll talk about making it easier for middle class people to live middle class lives through maybe more parental -- paid parental leave. those kinds of policies. republicans are also going to have policies. republicans will have an anti-ineeanti-in anti-inequality anti-inequality. they'll have to focus on more economic growth. >> i just don't understand why you can't be pro middle class -- you should be pro middle class, but then that forces you to be antiupper class. you can be pro middle class without being anti-wealthy. >> there is a difference there. listen, i think people don't like if you become rich because you ran a bank that was bad. people don't have a huge problem if you became a billionaire because you created and amazing new product, a new service. the u.s. has more billionaire entrepreneurs per million residents than any other large, advanced economy. >> you know again, i don't want to sit and just defend hedge fund managers because this is cnbc, but i think a lot of americans realize why those top 25 hedge fund managers are so rich. it's because new regulations the last few years have forced the pension funds and the insurance companies who are the ones that fund everybody, by the way, to go to only the biggest hedge funds. so the little guy doesn't have a chance coming up. all the money then goes to the top and therefore the top 25 hedge fund managers become these mon tersesters of income in part because the regulatory environment created the last five to ten years guaranteed their success. >>. and also contributed to the biggest banks getting bigger. >> exactly! >> right. i think that is worth noting how government itself and unintended consequences of policy actually create exact situations that we all seem to be so worried about these days. >> jimmy and robert good discussion, guys. appreciate it. to miami now where former florida governor jeb bush expected to announce his candidacy for president within the next hour. let's get our own john harwood who is awaiting that announcement at miami-dade college. from clinton to bush. it is like the last 16 years, john. >> reporter: that's right, brian. jeb bush after six months of exploring is finally going to get into the race. he's going to try to differentiate himself from other republicans on the tone that he strikes in his rhetoric. he's going to portray himself as a republican with a heart. much the same as his brother ran as a compassionate conservative in 2000. you can tell it from the testimonials from average floridians in this campaign video. >> i think governor bush changed a lot of lives in florida. i'm very grateful that he was our governor. >> what we need is new leadership that takes conservative principles and applies them so that people can rise up. america's best days are in front of us and we are going to lead the world. >> i think governor bush changed a lot of lives in florida. i'm very grateful that he was our governor. >> what we need is new leadership that takes conservative principles and applies this emso that people can rise up. america's best days are in front of us and we are going to lead the world -- zblm now >> reporter: now what you've got is a candidate formally under way now. he'll have a whole lot of money and start advertising and he needs it because his results so far have been underwhelming. he's tied with scott walker of wisconsin, marco rubio, his old protege here in florida. in iowa jeb bush is running behind both of those two candidates. in new hampshire which is the state he really has got to win, he does have a slight lead over scott walker and marco rubio. but that's not nailed down by any means and that's why jeb bush, after this announcement today, this be afternoon, is going to head straight up to new hampshire for a events tomorrow. >> thank you, john harwood. the final oil trades are crossing for the session. we will be heading to the nymex right after this. also target and cvs showing some signs of life in today's "ailing market." the nation's second largest retailer is selling its pharmacy and clinic business to cvs for nearly $2 billion. up over 1% for target. is it a healthy deal and what else may be in store for a new target? kramcramer has the exclusive tonight on "mad money" at 6:00 p.m. tune in. kids are expensive. so i'm always looking to get more for my money. that's why i switched from u-verse to xfinity. they have the most free on demand tv shows and movies on all my devices. it's perfect for me because my kids are costing me a fortune. i'm going to cabo! ♪ don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. hello, everyone. i'm sue herera. here's your cnbc news update at this hour. the president of the spokane chapter of the naacp has stepped down over controversy about her race. she told people she was of african-american decent but her parents disputed that notion saying she's white. police arrested nine people and seized material used to built explosives in hong kong. this tension rises ahead of a controversial vote this week on potential china-backed election reforms. dozens of migrants were stranded for a fourth day at the french-italian border denied access into france by the french police. the french interior ministry says that it has enforced border controls due to the influx of migrants. u.s. ambassador to japan caroline kennedy joined japan's first lady at a rice planting event. they planted rice with locals in the hometown of prime minister shinzo abe. that's your news update for this hour. back to you. let's get down to jackie deangeles at the my next. >> wti closing just under $60. we're still stuck in that range. it is interesting, a couple of factors that traders are watching. the first would be the products were a little bit lower today. that's why we sold off. also there is a storm brewing in the gulf so we are watching to see if that gets upgrated toded to tropical storm status. that could affect refineries. options expiration this week and futures next week creating selling pressure as well. it is time now for street talk. analyst recommendations every day on stocks you must absolutely know about. >> i'm really feeling nostalgic right now. >> you got it. >> i did it for many years. >> teradata got a $30 target a applies 18% downside. people moving these platforms like a dupe. amazon red ship are accelerating at the expense of teradata. >> there down by 3.3%. this year has not done well as all. the second stock we've been talking about this a few times already today. the reason is micron technology got a downgrade to underweight from equal weight at morgan stanley. firm now believes that derim price something likely to remain weak at least through the third quarter following taiwanese channel checks. target has been cut, the stock that werely lower today by over 4%. over the past year it's down about 23%. >> they're calling for another 10%-plus downside on that move. micron's been a struggling company for a long time. we started street talk with two sells, by the way. negative today. pitney bowes has a $35 target. analyst glen matson made a great call a few years ago when the stock was at $11. he says they are in the terl stages after multi-turnaround pushing more towards e-commerce and less away from mail. that stock down about 20% over the past five years. >> it's all about entry point. fourth stock is now -- sunoco. i remember i said sunoco when i first came to america and i got obliterated by herb greenberg, who is also in the house. initiated buy at jeffries was the firm claiming that the stock offers a best in class exposure to u.s. fuel distribution and marketing and also that the company has a sound foundation for future organic growth initiatives. the analysts see the favorable risk reward. the price target is $55. >> you'd know how to pronounce it if you watched more nascar. 57.6% by the way on sun as well. today under the radar, ora the ticker a nevada-based power company. $43 target which implies 15% up side. the analyst says they have good existing inging visibility with existing contracts out in the next few years. the stock done well up 37% year to date. there has been some insider selling though on the stock. >> that's something to keep an eye on. ormat technologies a new name to add to my collection. the under-the-radar name. >> thank you very much. and over the rainbow. time now for "trading nation," another daily segment. traders trade better together. today let's look at the s&p 500 ahead of the big fed meeting later this week. todd gordon's looking at the charts david seaburg looking at fundamentals. greece, the dollar valuation earnings, the fed. what are you watching? >> as far as the fed's concerned on wednesday i'm not concerned at all. i'm going to tell you we all know rates are going higher whether it's wednesday or whether it's three months from now, they're going to go higher. the bigger question investors should be looking a the right no you is as the cost of borrowing increases, when rates start to move, buybacks are going to begin to slow. are buybacks going to slow and is revenue growth going to be enough to offset that. that's the biggest concern i have. a, is it going to be big enough to offset it but b, i say very clearly in my opinion the market's gotten to a point where we're near all-time highs. we need to see top line growth start to pick up in a way that's going to be meaningful enough to offset that as rates start to move. i don't know that it is going to be there and i think we'll be in a little bit of a trading range until that occurs. i don't see a lot of downside risk but i don't see any real up side here either until you see that move significantly. >> i think you just used a fancy phrase for flat over the next couple of months. >> exactly. >> it's been almost a month since we made a new high in the s&p 500 because we had been flat and dave obviously sees more. should investors be concerned? >> absolutely. you guys both hit it on the nail on the head. the market has been rather boring in 2015. i have a couple levels i brought along with you that should they be broken we declare that the boredom is over. 2,000, the late part of '14, all of '15 has been concontinuedtained in that up trend channel. i'm wondering if it is going to be not the fed announcement on wednesday but the conference. if they do nothing on wednesday i think the market's going to start togearing up for a rate hike. that's when you could see sellers start to come in. today on trading nation the web show we did go short the nasdaq ahead of that. i have a short term trade on with our trading nation crowd. >> watching that as well. sort of an indirect plug for the web show. all right, guys. >> "trading nation." >> say it again. >> "trading nation." >> "trading nation." tradingnation.cnbc.com. >> i got that. still wondering how many nations you're trading. >> depends what year. 196 recognized nations right now. a businessman in eastern china boldly takes his headquarters where no man has gone before. you will not want to miss this video. plus xbox. we have a big preview coming your way ahead. tonight on "mad money," 6:00 p.m. eastern the ceos of target and cvs. here only with our jim cramer. watch the big exclusives tonight at 6:00 p.m. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough 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los angeles. video game makers from around the country are already on the ground in l.a. julia boorstin has the head of xbox business strategy. >> thanks so much for -- and devices. here we're talking so much about devices and the big headline today is that you're making xbox one backward compatible so people can play their old games on the new console. how much do you expect that to drive console sales? >> we are are excited here at e3 to kick off the show and showing the greatest games lineup we've ever had in the history of xbox. big focus is putting the gamer at the center. one of those is what you just talked about, which is having the ability to play your games from xbox 360 through backward compatibility. we had 500 fans here and they were very excited. i think it will be a big reason to buy an xbox this holiday. it is hard to handicap but based on the cheers this morning i think it is going to be a big deal. we were on the edge of people who were waiting and this will be the thing that will flip over. >> one of the most exciting is things i saw her was hollow lens. we saw a guy playing mine craft via hollow lens. it is really unlike anything i've seen before sort of putting the video game on top of a table. when will this go on sale and how much will it cost? >> so we don't have the date yet of when you will be able to buy it but you did see effectively a good part of the future. we'll show more progress as we move along and you'll see more things throughout the year but we're getting closer and feel really good about it. >> last week you announced a big partnership with facebook's oculus. what will that do for xbox and why is oculus better than sony? >> the strategy we're taking at microsoft is we want to build an open platform for all virtual reality players. oculus last week today we announced valve as well that we are working with. the idea is to take windows 10 and make it a platform for virtual reality. >> halo 5, that means 24 hours with multi-player. how is that to the future of video game? >> that's a huge part of gaming playing with your friends, playing with a lot of other people. we think that's a huge step forward for halo 5. it is critical. that's why people come play on console. >> quick final question. do you think xbox should be spun off from microsoft? >> no. i think we're doing fantastic here as part of microsoft. we're loving it. >> mandy, back over to you. >> if my boys ever got their hands on that hollow lens i would never, ever see them again. a one year chart of electronic arts the video game maker is up nearly 75%. coming up on "fast money," julia will speak to andrew wilson will which gains his company will be rolling out at e3. gunmaker colt filing for bankruptcy. "power lunch" back right after this. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage. make the most of summer... with volvo. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. 179-year-old gunmaker colt filing for chapter 11 bankruptcy protection. morgan brennan has more on this story. >> the gunmaker that's famous for colt .45 pistols and ar-15 rifles filing bankruptcy this weekend aiming the move coming after colt's defense missed an interest rate payment last month, as well as an unsuccessful attempt to make an agreement with gunmakers. it lost a key army contract and the company said changing liennes have really hurt business. last year sales plunged 30%. it owes up to $550 million to creditors. in a release today colt noted it secured $20 million in financing from current lenders, the existing management will stay in place and that it quote, remains open for business throughout the entire bankruptcy process. >> i'll take it from there. one big bull joins us ahead. plus target selling its pharmacy business to cvs for nearly $2 billion. cramer has the exclusive tonight on "mad money" at 6 p.m. affic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class from mercedes-benz. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. the dow has been cutting its losses. it's now -- oh well it was cutting its losses. 30 seconds ago it was down by 90 points. it's back down to triple digits. we were down as much as 200 on the dow. it's all relative, right? as for the s&p 500, still down by half a percent, the nasdaq is down by 0.4%. we have a cast of thousands. herbie great to see you. what's your read on what's going on here? >> my read is people are starting to get nervous. i sell short biased research and that's been a tough sell. some of the big funds say we don't want to short stocks we're going to short indexes or we want to short stocks we're just going to underperform the market. had a guy say last week we're going from shorting indexes to starting to look at shorting individual stocks. that's very important. >> there's a lot of crummy companies out there. >> yes. >> to think people are going to want to short them is that because they're going to be a freight train -- >> that's right, squeezed. >> no way am i stepping in front of this freight train by the fed. >> many are them are afraid of that yes. >> graham you're an uber bull. what makes you so bullish? >> stocks offer much more value than bonds. there's not many places that this can go. >> u.s. stocks? >> u.s. stocks. we specialize in u.s. stocks and we think the u.s. market is still relatively tame. >> i think there's an interesting note on greece. since 1820 isn't it true greece has been in default or severely delinquent if their payments 50% of the time? >> that's absolutely right. we went over 51% if you count the last year. >> for 200 years greece has been a default risk. >> that's right. greece has gone bankrupt five times since it became an independent company. so this happens all the time. greece is going to go under again. they're going to leave the euro. a greek worker is just not competitive today and can't be competitive. so they'll go off the euro they'll convert and it will be a win-win. >> taking all of that into account, charlie, rather than sitting on the sidelines in fear how do you make some money off the back of greece? >> there will be a temporary fear trade. when it happens, the markets will be rough and gold markets, for example, will do well but in general the interest rates are going to continue to go up. so when interest rate goes up there are certain sectors that are going to be helped by that. investment banks do very well when you have a positively sloped yield curve. goldman sachs and morgan stanley are going do well. >> graham, i'm almost asking you directly, when it comes to u.s. stocks, a little trepidation? just a small amount? >> our biggest concern on u.s. valuations is earnings. you add the issue of foreign exchange, we have the issue of u.s. corporate tax rates are very high highest in the world. so it's really penalizing u.s. companies. some of the multi-nationals are doing very well some of the small cap and midcap domestic companies are doing very well. i think the bottom line is equity markets in the u.s. are pretty fairly valued near term but attract of enough to find some really good buys. >> let us in on the secret and give us some names. >> apple is our biggest holding. we also own valiant, we have synaptics, which is in the technical space. so can you find individual companies that will do well in the next 12 24 months. we meet management and tell them how to beat expectations. >> pretty sure that greece is going to go away. is there anything that you say, huh, when they do this is what you need to buy? >> unfortunately that's part of the issue. greece leaving the euro isn't going to have that much of an effect. there's going to be a day or two when greek bonds get hit and german bond probably rally as a safety trade. it's not going to have that big of an effect. you'd be mistaken to move your portfolio around. >> give us more specifics, charlie. >> i think it could happen as early as this friday but probably within the next month, there will be a bank holiday in greece, they'll close the banks on a friday afternoon and over the weekend they'll convert the euro into the drachma and it will make the greek worker more competitive and make greek tourism more competitive and bring things back into balance. >> and hurt the euro probably. charlie, graham it's a pleasure, guys. >> graham also likes tesla. but herbie one of the most exciting ipos coming up this week. >> because it's actually making money. it's an exception when you look at where it compared with others. some people say it's conservatively valued. this will be an expensive stocks. >> some paper clips to welcome you back. "closing bell" starts right now. >> hi everybody. welcome to the "closing bell." i'm kelly evans. >> and i'm bill griffeth. right now the dow has come back from what turned out to be something of a climactic 200-point selloff on the open this morning on these concerns over greece that have been weighing on stocks