about the macro. >> for sure. >> i think it is unsure. that's a great point. i think what happens next is all about the pboc. do they cut rates or not. do they cut rates and the market doesn't go up, then you have to worry about the macro because then we've got a problem. we'll see you back here tomorrow. see you as well tomorrow. "power" begins now. thank you very much, scott. we begin right off the top here. welcome to "power lunch." i'm tyler mathisen. simon hobbs is with me for the hour from the nyse. we are kicking off the new trading month in the red. equity markets basically at session lows at this hour. historically august is not -- underscored -- not a good month or stocks. neither is september, for that matter. the dow, the s&p and the nasdaq are all getting crushed. down 171 for the dow. 13 for the nasdaq and -- excuse

me. 13 for the s&p. 38 for the nasdaq. that's .66%. russell 2000 down more than 1%. let's check in with simon at the big board. >> i mean it is the energy stocks that are taking it on the chin here at the moment. that sector down almost 2% trading just above $45 a barrel on crude under a huge amount of pressure. transocean, southwestern, chesapeake, chevron, many of those are not adjusting correction but arguably in a bear market. bob pisani is here to talk us through the action. >> slower global growth in china, slower global growth in latin america, particularly brazil. the commodities complex, new lows in exxon, new lows in chevron. that's why the dow is underperforming the rest of the market. conocophillips, devon energy, a half-a-dozen big energy names again at 52-week lows. we're seeing some new lows in other commodity stocks.

groups. ael key with a is at a 52-week low. freeport mcmoran in the copper area also at a 52-week low. another reason that we're having a problem is big global companies, the big global -- not just energy names but industrial names. general electric. united technology. 3m and caterpillar. they're weak on a slower growth story as well, not just energy but material names. now industrials are also weaker. it is spreading a little bit as we've seen recently. commodity stocks at new lows. alcoa and freeport mcmoran lower. lower oil though is helping some of the airline stocks out there. seeing moves up there. commodity stocks, commodity group as a whole here. you can see crude oil, copper and zinc are weak. nickel barely on the up side. all these base metals have been weak on the slower growth story. lower oil helping the airline stocks. there is one of the few bright spots for the day. the other obvious thing that's

going on is a move towards more defensive names. it is a very reared market when consumer stocks are your market leaders. you see new highs today at least on an intraday basis on clorox, general mills. campbell's soup. it is a weird leader but that's the market that we're in right now. ibm's down, apple is also in negative territory. let's get more from the nasdaq and bertha. >> apple weighing on the dow. certainly weighing here on nasdaq. responsible for about 13 points to the downside. we're seeing apple today really reach its 200-day moving average. that's a spror level that it hasn't gone through. we saw it almost get there a couple of weeks ago. it held. now it's fallen through and we've seen heavier selling as a result. we're now down 9 out of the last 10 sessions here on apple and that is helping to lead the big caps to the downside. but it's actually been the small

caps today that have been the biggest decliners. we've had some real big losers like hms holdings cut to perform at oppenheimer from underperform. lot of semis, follow-through on disappointing earnings from last week. biotechs are holding up fairly well on a day where you are seeing people do a sort of flight to safety. finally some of the names today that are also bucking the trend include autodesk raised. it is one of those days. monster beverage up there with a lot of the other consumer names hitting a new all-time high. micron seems to be getting a little bit of support on a report that samsung may cut some of its d ram production. microsoft's had a lot of troubles with pricing so less competition would be better for them. but apple today the worst

performer in terms of its impact. there is a story now on powerlunch.cnbc.com, cnbc pro talking about this breach of the technical level. back to you. >> thank you, bertha coombs. feels like summer just began and now it is already august. august historically not a very good month for stocks. also a wealth of economic data come out this month and the fed, the data dependent fed, is going to be paying close attention to that data. when deciding whether to raise interest rates and if so, when. domini chu on trading the month ahead. but first, our senior economics reporter steve leisman on the data that are coming out. >> two words for you -- road trip. >> road trip! let's go. >> let's take a look at all the data that we have to go through to get to the september rate hike. this week the trips began, the jobs report looking for 215,000. it would be the 58th straight month of job growth since 2010.

the picture seems to be aligning there for the fed to hike rates. moving on to the next one, we get inflation data. it's confidence inflation moving back to 2% and somewhat purt improvement in the jobs market. the cpi august 19th. another inflation data, pce inflation, that's the fed's preferred indicator august 28. another jobs report. two jobs report, this one and that one. then one more cpi on the day the fed meets. leading to the ultimate destination, the fomc middle easting -- meeting. i think there is a good chance the rates go up at least a quarter point. but all depends on the data. >> steve, thank you very much. domini chu, august historically not a good month. data or no data. that's the reason why.

so many catalysts economically. uncertainty about the fed rate decision. china, you name it, it is all a variable. if you look at august seasonality, august historically has not been a great month for the stock market. according to data partners at kensho, they look over the last five years. generally since the financial crisis. we didn't want to include the financial crisis because a skews a lot of the data to the downside. over the last five years shorter term history. the s&p is down 1.5% on average. positive 40% of the time. not very often. keurig green mountain has always been positive. hewlett-packard, one of the worst performers historically speaking over the last five years. on the nasdaq side, similar story plays out here. at least for the nasdaq, down about .33%. positive 40% of the time. netflix among one of the standouts. discovery communications one of the worst performers over the

last five years in august. over the last 20 years, now we've got the longer term view of what's happening. over the last 100 years it's generally been okay. up about 1%. positive 60% of the time. over 50 years it goes marginally negative on average. over the last 20 years, it is the performing month for the dow overall, down by over 1%. it's been positive by a little more than a coin toss. overall, one of these interesting stories right now about what's happening with august, that seasonality. it is historical context. not to say it is going to happen, just one of those things people look at. >> if you look at the last five years, august 2011, that was the fiscal cliff krcrisis and debt ceiling crisis. it was a notablnotably. downgrade. steve leisman has already left to get on his road trip. his data road trip.

we thank him, nonetheless. >> let's hope he drives in the right direction. new car drivers are putting the pedal to the metal. the you automotive sector reporting sales. >> numbers from mercedes-benz. in july, sales up 1.2%. continue to be a relative strong year for mercedes-benz. the real story, the four largest automakers all roared sales that were much better than expected. 6.4%, 6.2%, 4.9%, up fractionally for toyota. all of these were between 1% and 3% better than expectations. when you look at the big three, pick-ups are the big story there. pick-up demand continues to drive sales overall for the domestic automakers. gm up 20% on the full-size pickup market.

ford's f-series up almost 5%. ram was up even 1%. generally speaking we continue to see very strong sales for pick-up trucks. when you talk about the pick-up trucks you have tro look at the f-series. the supply is continuing to build there so the strong sales that we saw in july are expected to continue in august and in september as the full supply comes in now that we'll have complete production up with both of the assembly plants. we'll see the lines of supply fully flushed out over the next couple much plonts. i wants show you monthly sales rate. when this number comes in it will likely be the highest month of the year in terms of the sales pace. gm tlinks it could be as high as 17.6 million. most are saying closer to 17.4, maybe 17.5. the bottom line is this -- july is going to be the best month of the year in terms of auto sales. transaction prices are as high as they were in june which is close to a record high.

we are seeing the consumer going out, buying these big vehicles, in part because of lower gas prices. that's one of the factors that's leading them towards that end of the market. guys, back to you. >> phil, thank you. the big question for bond investors is will puerto rico pay? a new deadline hours away. one has passed. kate kelly live in san juan. hi, kate. >> reporter: hey, tyler. things here in san juan remain a very fluid situation. the chief of staff to the governor telling people friday that the government would not make good on a $58 million payment due saturday from an entity called the public finance corporation. we are awaiting confirmation that that payment was in fact not made but no new statements from the governor's office have been forthcoming, nor have we heard anything specific from the trustees of the debt that actually take the money from the government and distribute it to bondholders. in the meanwhile, the political rhetoric here in puerto rico is aflame. this morning was the first

conversation with a congressman, a nonvoting member, but with very sharp thoughts on how this crisis is being handled. >> there are some things we have to do on an immediate basis, like balance our budget, avoid a financing operating deficit, and so on. but you have to figure why is this happening? all this debt was piled up under the current status. we've been lagging now for decades so we should either take -- take either of two paths. either the path toward statehood or the path towards national sovereignty. i believe statehood is the answer. >> reporter: so he's saying that they need one of two things, statehood or sovereignty. it is not clear when either of those things is going to happen. market wise it is important to remember not all puerto rican debt is created the same.

some are stronger names to be invested in this others. one puerto rican who is a municipal bond expert laid out details of what's what. >> i've already talked about how it makes all the debt seem the same. we see today that's not the case. some is payable, some is not. ignores the fact that there is a tremendous difference in s solvency and not. it hurts puerto ricans most profoundly than anyone else. >> reporter: in other words, if you're invested in the general obligation bonds, considered the benchmark, they are a little healthier than thee public finance corporation bonds that may very well be in default in a day or two as we wait to see. >> kate, thank you live from puerto rico. we're losing ground here on the dow. currently down 185 points. dow down at least 1% for the year. the s&p 500 barely positive 1% or 2%.

but some top strategists are still bullish for the next five months. why the s&p could rally another 7% from here this year. plus, wildfires raging out west. huge floods on the east evacuations on both sides. we'll have the very latest next on "power lunch." ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? dentist appointment when my teeth are ready? ♪

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i'm sue herera with this cnbc news alert. news out of s&p and it affects the european union. standard & poor's has revised its outlook on the eu to negative from stable. right now the rating will stand at negative aa-plus. once again, s&p downgrading its assessment in terms of its rating on the eu to negative from stable. we'll see what impact that has certainly on european bond markets. that's very sensitive information for them. dom, over to you for a "market flash." let's look at one of the other sectors -- or one of the other parts of the market that's performing at least well today, the best performing sector in the s&p 500 on a down day. utility stocks up by .5% today. the sector is being helped along by, among other things, risk aversion as well as lower

interest rates. pt move lower in interest rates makes those dividend yields offered by these types of stocks that much more attractive. utilities certainly a stand-out in today's trade. >> curious they'd be going up on a day when the obama administration is expected to announce major new regulations affecting how some of those power plants operate. >> certainly coal stocks a focus there for a lot of investors. i know we'll talk a lot more about that throughout the course of this show and this afternoon. meanwhile, california's fire problem getting much, much worse. many have predict ed the drough would make this a bad season for fires. 9,000 firefighters now battling 21 major california infernos. veteran firefighters say they have never, ever seen anything like this. here's nbc's joe fryar in lake port, california. >> reporter: this so-called rocky fire continues to grow at an unprecedented rate, it's now

burned 60,000 acres. over the weekend it tripled in size, but firefighters are starting to gain the upper hand. they now have it 12% contained, an improvement from over the weekend when it was just 5% contained. flames are largely burning in a more remote area away from homes. but we know in these hot, dry conditions things can change in an instant. winds have been very unpredictable creating challenges. right now more than 13,000 people have been evacuated because the fire threatens their homes. 13 homes have been evacuated. across southern california more than 25 large wildfires are burning right now. the governor declared a states of emergency clearing the way for more resources to come in and fight the flames. that includes helicopters and air tankers. in all, in california, 9,000 firefighters are now on the ground. they're hoping that slightly cooler temperatures today will help them make more progress.

back to you. down here at the floor of the new york stock exchange, we are extending our losses on the session. we're now down 1 90 points on the dow. the russell 2000 which has been relatively immune from foreign effects also down disproportionately as you can see. clearly energy is the issue. we are $45, $35 on west texas. down the better part of $2, $1.78. overall big questions raised about growth, most notably from china. more on the markets after this on "power lunch." you focus on making great burgers, or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered

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right now on our website we profile some of the most powerful people in politics. check it out at powerlunch.cnbc.com. our chief washington correspondent john harwood recently sat down with republican presidential candidate and new jersey governor chris christie. john asked about the governor's decision to expand medicaid. >> so, you're on the debate stage and scott walker or others, ted cruz or others in the race say. >> cris: it i-- chris christie expanding medicare. >> i did what was best for the people of my state. we already had medicate at 200% of the poverty level in new jersey. that was put into effect well before i became governor. what it did was make money for the state of new jersey. $220 million a year. >> you think conservatives will buy that expanding medicaid was

actually a profitable thing for the government as -- >> they don't have to buy it. for new jersey. for the state of new jersey. the law was already the law. the president had passed it and it was what was best for the state of new jersey. i don't criticize scott for not expanding medicaid. if that was his judgment what was best for the people of wisconsin, that's great. john kasich expanded in ohio. governors are paid to do what is in the best interest of the people of their state, not some national political agenda for themselves. i made that decision based on what was best. i didn't do it by statute, i did it by executive order. if the government doesn't keep their promise for no less than 90% reimbursement, we can reverse it if i were governor, i would. >> governor kasich of ohio says the republican party needs to be more concerned about reaching out to the poor, not a popular position among some of those rivals like scott walker who did not expand medicaid. >> talk a little bit about this

upcoming remarks from the president expanding or toughening some of the emissions standards for power plants. very, very controversial. what are we expecting? >> we're expecting first of all a very long legal fight and the president's hope for legacy purposes is that he has framed and his aides have framed these regulations in a way that withstands legal challenge. meantime, there will be a political fight in 2016 because republicans are going to be opposed. cold states are opposed. mitch mcconnell the senate republican leaders already told states don't implement these regulations. this is a policy change that would be wrenching for coal states, raise some people's utility bills, beneficial to others. but it is a big political fight and it is goinging to play on for a while. >> john harwood, thank you. the president is set to unveil his major climate change plan at 2:15 eastern time. "power lunch" will carry it live

as soon as the president starts. let's have a look at where we're closing out on gold right now. gold generally sitting at a five-year low. just above $1,089. you see commodities under pressure. oil, precious metals slightly lower. the yield on the 10-year has hit its lowest level since june. rick santelli is tracking the action. >> is you're spot-on, simon. there is definitely a lot of big movement going on, not only on treasuries but within treasuries on the yield curve. notice what's happening in the real five-year sector. this is kind of the belly of finance. look at the intraday 5s. under pressure. we haven't been here since starting in june. really since the end of july -- i'm sorry, early july. the 10-year hasn't been here

since the end of may as you see on the may 1st chart. the most fascinating maturity according to traders is the 30-year bond because the 5s, 2s, 10s are all at or lower than they settled 2014 except for the 30-year bond. settled at 2.75. it is currently ten basis points higher. this is something traders are looking at. they want to see if it can hold that year-end level. the two-day of the dollar index shows us maybe today isn't about the fed as much as it is about what simon mentioned, global economics. simon? back to you. >> thank you very much, rick. to dom chu with a "market flash." >> let's call your attention to the dow right now down 180 points, near the worst levels of the session right now. down by 183 points. the s&p 500 down by 15. nasdaq composite down by 38. near the worst levels so far. among some of the stocks to watch today, apple shares falling by 3% so far crossing

through its average price for the last 200 days. that's a key technical level that some traders watch. if the stock closes at this level that will put it in correction territory. it is down about 11%, 12% from its recent high. intraday, that was $134.54 april 28th. apple has been under pressure since that earnings report last month. apple one of those key stocks to watch because of course it is the most valuable company in the world. back over to you. >> it all means that the dow is now down almost 2% this year. the s&p 500 only up 2%, barely up 2%. some top strategists are still bullish for 2015. why the s&p 500 could rally another 7% from here and the sectors that could take us there when "power lunch" returns.

. hello, everyone. i'm sue herera and here is your cnbc news update.

secretary of state john kerry is meeting in qatar with the six members of the gulf region. afterwards he talked about security in the region. >> in any of the conversations i had today, it was crystal clear the united states and gcc nations agree in the partnership that we share is indispensable for the security and civility of this region. jurors in the colorado movie massacre trial have reached a verdict on whether to sentence james holmes to life in prison or continue to hear testimony on whether he deserves the death penalty. that verdict will be read at 2:30 p.m. eastern time. donald trump has repeatedly said that latinos love him. but a new nbc news/"wall street journal" poll and telemundo poll found that 3 out of 4 latinos have ooh negative view of him. 61% have a very negative view. and practice got intense at the dallas cowboys training camp on sunday between wide receiver

dez bryant and corner back tyler patman. after being back and forth in drills bryant took a swing at him. the two were quickly separated by their teammates. you're up to date. simon, down to you. we have stabilized down here on the floor of the new york stock exchange. currently just down 177 points on the dow. obviously a lot of concerns about where we're going with global growth. china one of the main headlines overnight. we've spent much of the session extending those losses, bob pisani has more on the floor. >> still about the slow global growth story. not only in china but in brazil. the dow components here, new lows in chevron andexxon. general electric, united technologies, 3m, get a lot of their earnings outside the united states. they are to the downside.

last week we had a little discussion about brazil because brazil is the other part of this equation that's really weak. it is the biggest country in latin america. they're having big problems there, commodity prices down. there is a corruption investigation. high inflation. this is a in you low essentially in the ewz which is the brazil etf. you can own that. very heavy volume in the last couple weeks. number of names there very exposed to the global energy markets. that's been weak throughout the year. even u.s. companies very heavily exposed to latin america. many big names while whirlpool very heavily exposed to latin america. they came out last weeks with earnings, talked about exposure, weak sales in brazil. stock dropped on that news. elsewhere today, luxury retailers will report in the next few days. kors on thursday. no big news. fossil, ralph lauren, coach, all these names will be reportsing earnings.

obviously some concern numbers won't be as high as anticipated. finally, it is a very strange market when your market leadership is a bunch of consumer stocks at new highs like campbell's and clorox. very defensive tone to the market. >> thank you very much. let's look at the nasdaq. tech, biotech and fa pharmaceuticals are leading the pack today. all with sizable gains on this otherwise down day. vertex up 2.4%. micron up almost 3%. retail not looking nearly as healthy. baidu, mattel, staples, all break sharply lower. august is traditionally a tough month for stocks. how do you invest now through august and the rest of the year? about five months in august. jack ablin, jeff hussy is global chief investment officer at

russell investments. jack, i was reading notes you gave to researchers before you came on. you seem to be hanging on in in the stock market but still suggest it may be massively overvalued. i was trying to work out why you could have those two views. >> sure. valuation is not by itself a timing tool. so we can get a market that's expensive and keeps getting expensive. in fact, if we decided to just sell on valuation by itself, i think we could have been out in the market either in the fourth quarter of 2013 or the first quarter of 2014. generally what we like to do is stay with momentum, stay with a good thing as long as it keeps going. >> but jack, that's a very big overvaluation you are suggesting here, 25%. that's a monumentally imbalance if you're correct, isn't it? >> well, in the long term of things it absolutely is. part of it is i look at prices relative to sales.

so if profits are expanding, which they are, you can cut it a little bit of slack. but again i don't view it necessarily as a threat. i think it can be a threat. maybe a 10% to 15% threat, but it is in very -- in no uncertain terms it is a headwind. there's no doubt that's what's preventing this market from going significantly higher this year. >> jeff, is he right? >> yes. so like jack, value is important but also, where we're at in the business rate cycle, where sentiment is really matters to us. markets are a little bit overpriced but sentiment is not that frothy. i would say the average investor is fairly cautious still. that gives us some head room for prices to move forward. the cycle, the federal reserve is still accommodative. yes, they're going to raise rates but at a gradual enough pace that the cycle will still remain fairly positive for equities continuing to do well. we frankly are a little cautious

on u.s. equities versus europe where prices are cheaper and where the sentiment is worse and, frankly, wrp there the cycs earlier in its stage, that is policymakers are going to have to continue to provide stimulus relative to the u.s. >> let me address the sentiment for a second, if i may. i think sentiment is certainly important. i would be certainly very nervous if sentiment was wildly bullish. i don't think that a bearish sentiment right now is necessarily bullish, unfortunately. i think that again, if it confirms where we are, that's clearly a negative. certainly at the bottom in 2009, everyone drew trend lines into the ground. but i think having bearish investors now doesn't -- i wouldn't call that a bullish signal. >> that's exactly the point. when you say there is this big pull of people that are

cautious, it has to be that the caution will return to optimism. if jack's right -- it is a 25% ov overvaluation, it could surely move in the other direction. >> it could. we still think what's the alternative? bonds aren't really that attractive? bonds have fallen in price, emerging have fallen in price. maybe there's some locker run opportunities but it is a relative world and in that relative world the u.s. still looks attractive. less attractive than europe. less attractive than japan. but still equities look like a reasonable value, even if valuations are elevated relative to its history. >> thank you for the advice. >> the other thing looking at -- all right. >> jack -- do you want to briefly -- >> final thought. sounds like double talk to me. >> we have to go. jack, jeff, thank you for your time. go to "power luncpowerlunch

right now to see jeff's strategy for asia. that's "power luncpowerlunch.cn. let's get a "market flash" now. we're now down 175 points on the dow. dom chu has more. let's call your attention to what's happening with the drop in crude oil prices both in west texas intermediate crude prices and more so with the brent crude prices. that's the world benchmark. currently the performing sector in the s&p 500 being led lower by the likes of a diversified group of names. transocean on drilling side. halliburton on oil services. chevron on integrated oil. range resources as well. those stocks helping to lead energy as the worst performing sector again to the downside today. keep an eye on that particular sector. athens stock exchange anticipated todopened today fore first time in five weeks. fell as much as 23% over the course of the day.

according to reuters report, the greek banking stocks took the hardest hit. you might expect that. alpha bank, attica bank, national bank of greece, others, down 30% or more which is the daily volatility limit there. the grek, the etf that tracks greek stocks, rose slightly today before falling. go figure. however, the etf is down more than 16% since the close of the athens stock exchange on june 24th. so it looks like that etf has been forecasting what was going to happen when those stocks opened as they did today and lower. dominic chu highlighted the oil stock losers just moments ago. oil continues to fall. brent and wti crude both down steeply today. we'll tell you who's make being the big calls and how they are staying ahead of oil's decline. that and much more when "power" comes back on cnbc.

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recalling 36,000 cases of kraft singles because the plastic may remain stuck to the cheese causing a choking hazard. there have been three reports of consumers already choking. saeears says sales fell citg weakness in consumers demand. clorox posted better than expected fourth quarter profits and sales. company is remaining cautious on its full year guidance. it is one of our top gainers so far this session. prices for homes in the luxury market starting to soften just a bit. according to a cnbc luxury real estate report. we are talking about home prices above $1 million. robert frank is our wealth edit editor. >> we're talking mansions here. mansion prices may be nearing a top. this cnbc luxury real estate

report shows while sales of million dollar homes are up prices are down. there were 24,000 homes sold for $1 million or more in the second quarter, that's up 14% year over year but prices were down 2.4% of the quarter. meanwhile, inventory is creeping up. there are now 65,000 million dollar homes for sale in the u.s. more than 4,000 homes priced at $5 million or more. that's also up. redfin saying demand may be cooling and prices are getting too frothy even for the wealthiest of buyers. >> there are a lot off global issues that came into play in the second quarter. we had china, we had greece and western europe. we saw a retrenchment from south american buyers. all over the global foreign buyers pulled back a bit. >> still some big sales in the quarter. the most expensive home sold in the quarter was 15,000 square-foot mansion in california, ten bedrooms, 12 1/2 baths on seven eye carries. that told for $59.35 million.

biggest of the quarter. fixer-upper in san francisco was listed for $6 million, and it went for $11 million. but all three of the biggest mansion discounts, discounts being a relative term here, were in the bay area. >> that's stunning. robert frank, thank you. so we're down 1 73 points on the dow now. clearly stocks sliding on the first trading day of august. joining us for analysis on what people are saying and doing, ben willis, senior floor broker with princeton securities, and on the left, stephen kilfoyle. what's happening here? >> i think the market caught up to china. the european buyers seem to keep us afloat early. right now energy is obviously the one in the barrel right now

get crushed. brent breaking $50 a barrel. >> i think it was last week, make the week before we were gently repricing klein into the market. is that what's happening here or has it become bigger than china? >> i think it's become bigger than china at this point. we've taken a look particularly at the oil contracts realizing oil had no business being at $100, or being at $50. if you're a long-term investor, i'd be looking for values in the energy sector. >> is that your take? >> i certainly think the energy sector is getting to a spot where it is going to be a tank. there are some positive here, also. you airlines today, profits are through the roof due to the lower costs. the whole airline sector is up 3%, 3.5% today across the board. >> i agree you can make money, that's rather the tail wagging the dog. >> i don't care how i make money. >> so where do you think we'll go from here? >> my gut feeling is that we still have up side. this is a tough day.

i think we'll see support in the low 2080s today. we feeling is we see up side going forward and the rest of the year. >> i agree. i think the dips in our buying opportunities, you need to re-align your portfolio. we see money coming out of health care and buying some of the discretionary names. think that trade continues. more importantly i would look more at the energy sector, mlps. oil seems to be settling in and it is a major function within the major indices. >> thank you for information. thank you for the advice. ben and stephen. the markets do seem to have stabilized just a bit at their current lee levelow levels. some of the sectors leading and trailing, most especially energy. that's no surprise. that has been a weak sister for a long time. steele materials and industrials have also been clustered there at the

bottom. who's the winner today? utilities on this day that president obama's going to announce tough new rules governing power plant emissions. go figure. utilities higher. consumer staples as bob pisani pointed out, earlier some of those staples like clorox, like campbell's soup. both of those stocks are moving up. there you see the s&p 500 off about two-thirds of 1%. we should point out as well that airlines stocks are on the move. carriers that are getting hit hardest. we will tell you about them, a lot of them, flagging today. you're watching cnbc, first in business worldwide. hi. hi.

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putting on a movie. i'm trying to watch the game here. look i need this right now ok? come on i don't want to watch that. too bad this is happening. fine, what if i just put up the x1 sports app right here. ah jeez it's so close. he just loves her so much. do it. come on. do it. come on! yes! awww, yes! that is what i'm talking about. baby. call and upgrade to get x1 today. ♪ welcome back to "power lunch." everything is down here today but some stocks are flying high. talking about the airlines storks. delta air lines getting hit -- at least target price hike over by analysts at ubs. shares are up because of that target price hike. you got the bigger picture concerns on what's also what's happening with lower oil prices.

united, southwest, american airlines, jetblue among some of the big gainers in today's trade. airlines certainly stocks to watch given the oil price slide. back to you. let's take you through this hour's "power points." one, stocks sliding in august, we're near session lows. this is the first trading day of august, folks. triple-digit loss for the dow. the drop in oil prices driving stocks lower. west texas intermediate, brent crude both falling 4% today. the yield on the benchmark 10-year yoet 10 10-year note as well as the 30-year falling now lowest levels since june. if you missed any of the big stories in the past hour, visit powerlunch.cnbc.com. meantime, disney is riding high after strong showings by its marvel and its pixar films so far this year. the new "star wars" film is a few months away and expectations

for the box office are now astronomical. disney's stock is up 27% this year. how much higher can it go? we'll debate that next. everyone loves the picture i posted of you. at&t reminds you it can wait.

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that includes the president. he'll be rolling out details of his climate plan. we'll have it along with the likely winners and losers in the market. plus, oil continues to collapse. the latest price and why one big investor says despite that, now is the time to buy one big oil name. and viva los angeles. exclusive stats on why the city of angels stock market has been down right heavenly lately. tomorrow cnbc will premier a new original prime time series called "west texas investors club." it features two texas self-made millionaires who invest their own money in entrepreneurs. take a look. >> this is my friend adam. >> i'm rooster. >> we're not only compute savvy. this would be our first app deal we've ever done. >> what is that? >> this is just for my sign. >> put it up on the bull skull. right here.

>> there you go. >> all right. >> all right. ready? >> yep. >> what do you got? >> my name is adam garfield. i'm the co-founder and ceo of speedy tap. a mobile platform that lets people order and pay for their drinks at the bar, their could of f coffee or concessions from their phone. you're at a crowded bar, it's friday night but you can't even get the bartender's, server's attention. we let them access the menu straight from their phone, place their order, it's paid for, your phone goes off, hey, my order is ready with a confirmation code and you come up to the service area, show your phone and they give you your order. >> sign me up. west texas investors club premiers tomorrow night at 10:00 p.m. eastern and pacific. >> it's going to be wild, tyler. bertha coombs is at the nasdaq. apple and twitter both taking a big hit today. >> high flyers today that are sinking. apple just off of the lows at this hour but it has crashed

below its 200-day moving average. it is a real technical support level. last time we saw it do that was in 2013. it was down for two days. today it fell below lowest we've seen since february 9th falling below 1 $1$18 a share. twitter below $30 day. continues to be lower here as you can see. some of the other momentum names today are managing to stay above the fray. google of late has been one of the stocks that people seem to flock to when things are lower. starbucks today at an all-time high. monster beverage at an all-time high as well. amazon which has been a big high flyer today a little lower as people worry about the consumers. tesla, gopro some of the other momentum names today under pressure. china names, a mixed bag but they continue to see pressure as we saw weak data out of beijing. >> that will do it for the first hour of "power lunch." simon, always great to be with you. >> pleasure to be here.

>> brian sullivan will carry on now with the second hour of "power." simon and tyler, thank you very much. it is 2:00 on wall street, 11:00 a.m. in disneyland in anaheim, california. the dow is starting the week weak. it is down 166 points. hello, everybody. i'm brian sullivan. melissa lee is at the nasdaq. a big show again once again as we await the president as he rolls out details of his climate plan. we have to begin with crude oil, trade down $1.81 a barrel. now down a staggering 20% in just one month. that's let right to jackie deangelis at the nymex. >> that's right, we're seeing oil prices slide once again. soft data out of china re-igniting these concerns about global demand. a new survey out shows opec hit record production again for july. also iran this weekend released some comments that it wants to boost its output 500,000 barrels

a day once sanctions are lifted. taking all of this together, the question is whether it the bleeding going to stop. sure, we've had some signs that we may see production start to decline but we don't know when that will happen. there seem to be more overwhelming signs that it won't. wti right now, $45.38 is where it is trading. traders are looking at its march low at -- six-year low for wti which was $42.03 as a critical support level. brent today, under $50 a barrel as well. a lot of action in the oil pits. back to you. >> jackie, as we've talked about, you may not care, america, about owl outside of what you pay for gasoline, you probably should because oil matters to the stock market. since the end of june, oil and the dow have traded in the same direction 72% of the time. even more amazing -- oil and the dow have not traded in the opposite direction since all the way back on july 21st. now speaking of stocks and oil, even the biggest of the big

names not immune to the downt n downturn. exxon and chevron down 12% and 21% respectively just over the last 90 days. stuart glikman made some big calls on friday and he joins us now. what do you make of the biggest of the integrated oil companies? >> two different stocks. we basically have two different prognoses for these names. exxon upgraded to a four-star or buy opinion from a three scars stars -- stars or hold. the opposite with chevron. i think we're in what looks to be a sustained low oil price environment and in that kind of environment i would rather be playing defense and i think exxon is a more defensive more of a value play than chevron is at this point. >> i am willing to bet many of our listeners who own an etf consider chevron and exxon to be

kind of twins. you have different ratings on those companies. what's the difference really between exxon and chevron? >> so they're different in a couple of meaningful ways. the first is that exxon does a far better job at generating free cash flow than its neighbor chevron. exxon looks to generate probably close to 140% cash from operations relative to their capital spending in 2016. that gives exxon the luxury to do a lot of different things. it can wait out a weak oil price environment. it can think about using some of that excess cash for buybacks, for dividend increases, or for acquisitions. chevron, by comparison, looks to be kind of treading water on free cash flow in 2016 and it is -- looks to have a free cash flow deficit in 2015. chevron has a lot of balls in the air. they've identified 2017 as kind of a milestone year for them. i think that it's not impossible for them to pull it off but i think it is going to be difficult and i think it is more

risky. >> when you say that exxon is a buy right now, do you mean that it is going to outperform the sector or the s&p 500? in your most recent note, prior to the upgrade on friday you had written nat gas is going to be near to medium materiterm, you cautious. but the near term projects are dim. that doesn't sound optimistic. >> exxon continues -- i think in a defensive environment will outperform. >> outperform what? the group or outperform the s&p 500? >> a four star's opinion means we are looking for at least 10% up side over the next 12 months. my 12-month target price is $90. stock is trading around $77, $78 a share. there's sufficient up side for what we consider to be a defensive stock that we think it is going to generate that kind of 12-month return. that's only on capital

preeshatipreesh appreciation. over the last ten years exxon has grown its dividend around 10% per year. on top of that you also have buyback potential. the buybacks have been coming down. the buybacks act as a safety valve. with oil prices being as weak as they are, obviously that free cash flow is coming down. but we do think that there is going to be a little bit of extra benefit from a lower weighted average shares outstanding. >> we appreciate your time today, pointing out the key differences between exxon and chevron. we'll see you again. >> thank you. the up side to all this of course is that gasoline prices are falling again. in fact, the national average is now $2.65 nor a gallon of regular. that's down 6 cents in just one week and down 85 cents from this time last year. despite the drop in oil prices, some money managers are still finding opportunities in the energy sector. your next guest making a big bet

on sschlumberger. portfolio manager of clear bridge investment large cap growth fund, fisve-star rated o morningstar. margaret is a new face on cnbc. welcome. >> thanks for having me. >> slb is down 12% over the past three months. you like it. are you using the recent weakness to buy more? >> when we think about any investment, we look out several years. there's been a lot of talk today and over the last month about where oil prices are going next month. we think out for years, not where oil prices are going in october. to us, we say, look. the cost of extracting a barrel of oil from the ground is higher than the current market price which means that unless we believe that we're heading into a global recession or unless we believe that players will be irrational over a longer period of time, energy prices have to move higher. within that context sum ber jchr

is still generating plenty of cash flow during the downturn, still buying stock, managing their costs very effectively. there's m&a in the sector so we think they may be poised to gain market share during the downturn. when we think about risk/reward we see modest downside and more up side. >> oil companies have been known to be irrational from time to time. that said, let's move on to some of your other picks if we can. i want to talk about disney. you got disney earnings coming out tomorrow. everybody's talking about "star wars," espn. what's your bullish view on disney? >> we think about the disney franchise. disney has two core competencies in. longer term when we think about all the changes that are

happening in the content creation and content distribution, we still think disney's going to be able to maintain a competitive advantage. we like disney. it is a core holding for us. >> google. there is a thesis out there that, hey, google's core business of search is in trouble because no one's leaking at their website anymore. they're going online with their phone obviously. you're not that concerned about the move to mobile with google. how come? >> facts don't support it. that has been one of the bear cases around google but if you look at google searches on mobile devices they remain up double digits. i think the proof is in the pudding in that one. the other bear case on google has been that the company spends a lot of money and therefore shareholders aren't going to get paid on an investment in google. i would say beginning in the second half of last year the company implied that capital spending was at an elevated level and would moderate from here. the fact of the matter is that that's turned out to be the case. cap backs as a percent of revenue has fallen from 24% to

18% in the second quarter around the company even showed operating leverage. i think google's showing they are being prudent about how they are managing the balance between investing in the company and delivering shareholders returns. >> margaret, i know you haven't been on cnbc before i get the feeling you have done this before. thank you for joining us. we'll see you soon. >> take care. disney is set to report earnings later this afternoon. the stock has seen good gains so far this year, up 28%. david miller, you recently upgraded the stock to a buy with $138 price target. great to have you with us. what is there in the stock by way of catalyst that we have not seen or have -- has not yet been factored into the stock that will drive it higher? >> sure. let me be clear, we have the stock rated buy all of last year. stock ran 25%. we cooled it off with a hold rating around january or february. we were concerned about foreign exchange. those concerns we've thought are

overblown since then. $138 target. we think the core catalyst besides "star wars," the shanghai park set to open next spring. we don't have a firm date for that just yet but we do believe it will add an additional 200 basis points of growth on the top line and we get to $688 a share for fiscal '17. attach the 20x multiple. >> you think investors underestimating the shanghai park is a boost? >> i would say so. i believe consensus is $636, $637 or so. we get 50 cents higher, we're at $688. we feel pretty comfortable with that estimate. >> are you worried about tough comparisons request "frozen" from last year? >> not really. film is 8% of revenues. it's 10% of operating income. when you look at the slate, besides "star wars," it's just absolutely fantastic.

you believe you have "finding dory" coming up. "alice in wonderland 2," "captain america 3." everybody's talking about "star wars" but the slate into the meat of fiscal 16 and into fiscal 17 just looks absolutely stellar. >> there is going to be a new cfo on the first conference call with analysts. is that going to be a big factor? >> i think with christine mccarthy a lot of folks have not met her. no one really knows what she sounds like or how she communicates. i think she kind of wants to maybe put her stamp on how she sees the cfo position and running what in my opinion is one of the best financial departments in all of media going forward. so not a lot of people out there know what she sounds like, what her style is. and we're looking forward to her debut on the call. >> david, great to speak with you.

$138 price target on the stock. anthony declemente, has a $125 price target. anthony, you are concerned about comparisons whether it be "frozen" or world cup comparisons. >> just to be clear, we have a very positive long-term stance as well. we have a buy on the stock. if you look at our $6 estimate and you apply a nike type multiple you can get to a stock price that's above $140. i do think in the near term though there are three tough comp aspects to worry about. one is that the studio. another one is at consumer products. for both i think this will be -- this the first cal third quarter will be the most challenging of the fourth quarters. then also at espn, on ad sales you have a difficult compare to last year's quarter which included the fifa world cup ad sales. we just shifted some of our operating and income earnings from the third fiscal quarter to the fourth quarter, left the

full year unchanged. it might be true that near term expectations are a little bit high but that doesn't really change our long-term bullish stance on the stock. >> anthony, you mentioned putting a nike kind of multiple on the stock. we think in the media about disney. we think of other media stocks when we usually put. the comparison with other sort of studios and media stocks. why do you pick nike out of all of the consumer companies out there to have a comparison with disney? >> disney within media you see an increased bifurcation of multiple because of disney's outstanding brands and franchises. ten brands that generate north of 1 billion inn in retail sales a year. technology's actually more a friend to media companies that have strengths in brands and franchises like that because technology allows for better distribution. that's why i think about big global iconic multi-national branded franchise names, consumer names, like nike. i think what disney needs to do

strategically is press its advantage, get closer to the customer, but start to think about directing at consumer technologies that that those will be more friend than foe to disney and enable disney to be a net beneficiary of being a net seller of content verses a net buyer of content. >> anthony, go to have to let you go. president obama is set to make remarks about the power plant details. proposed reduction in co2 levels from 2 dh005 levels. some are saying this could be the death nail for the coal power industry. let's go straight to the president. >> i want to thank you not just for the introduction but for the incredible work that you and your team have been doing. not just on this issue, but on

generally making sure that we get clean air, clean water, a great future for our kids. i want to thank all the members of congress who are here as well who have been fighting this issue and sometimes at great odds with others, but are willing to take on what is going to be one of the key challenges of our life times and future generations. i want to thank our surgeon general who's just been doing outstanding work and is helping to make the connection between this critical issue and the health of our families. over the past 6 1/2 years, we've taken on some of the toughest challenges of our time from rebuilding our economy after a devastating recession, top ending our wars in iraq and afghanistan. and bringing almost all of our troops home, to strengthening

our security through tough and principled diplomacy. but i am convinced that no challenge poses a greater threat to our future and future generations than a changing climate. that's what brings us here today. not everyone here is a scientist. but some of you are among the best scientists in the world. and what you and your colleagues have been showing us for years now is that human activities are changing the climate in dangerous ways. levels of carbon dioxide which heats up our atmosphere are higher than they've been in 800,000 years. 2014 was the planet's warmest year on record, and we've been setting a lot of records in terms of warmest years over the last decade.

one year doesn't make a trend, but 14 of the 15 warmest years on record have fallen within the first 15 years of this century. climate change is no longer just about the future that we're predicting for our children or our grandchildren. it is about the reality that we're living with every day. right now. the pentagon says climate change poses immediate risks to our national security. while we can't say any single weather event is entirely caused by climate change, we've seen stronger storms, deeper droughts, longer wildfires seasons. charleston and miami now flood at high tide. shrinking ice caps forced "national geographic" to make the biggest change in its atlas since the soviet union broke apart. over the past three decades,

nationwide asthma rates have more than doubled. climate change puts those americans at greater risk of landing in the hospital. as one of america's governors has said, we're the first generation to feel the impact of climate change and the last generation that can do something about it. that's why i committed the united states to leading the world on this challenge because i believe there is such a thing as being too late. most of the issues that i deal with -- and i deal with some tough issues that cross my desk. by definition, i don't deal with issues if they're easy to solve because somebody else has already solved them. and some of them are grim. some of them are heartbreaking. some much them are hard. some of them are frustrating. but most of the time, the issues

we deal with are ones that republican temporally bound and we can anticipate things getting better if we just kind of plug away at it. even incrementally. but this is one of those rare issues, because of its magnitude, because of its scope, that if we don't get it right, we may not be able to reverse, and we may not be able to adapt sufficiently. there is such a thing as being too late when it comes to climate change. [ applause ] >> and shouldn't make us hopeless. it's not as if there's nothing

we can do about it. we can take action. over the past several years, america has been working to useless dirty energy, more clean energy, waste less energy throughout our economy. we've set new fuel economy standards that mean our cars will go twice as far on a gallon of gas by the middle of the next decade. combined with lower gas prices, these standards are on pace to save drivers an average of $00 at the pump this year. we doubled down on our investment in renewable energy. we're generating three times as much wind power. 20 times as much solar power as we did in 2008. these steps are making a difference. over the past decade, even as our economy has continued to grow, the united states has cut our total carbon pollution more than any other nation on earth. that's the good news. [ applause ]

>> but i am here to say that if we want to protect our economy and our security and our children's health, we're going to have to do more. the science tells us we have to do more. . has been our focus these past six years. and it's particularly going to be our focus this month. nevada later in august i'll talk about the extraordinary progress we've made in generating clean energy and the jobs that come with it, and how we can boost that even further. i'll also be the first american president to visit the alaskan arctic where our fellow americans have already seen their communities devastated by melting ice and rising oceans. the impact on marine life. we're going to talk about what the world needs to do together to prevent the worst impacts of climate change before it is too late. and today we're here to announce

america's clean power plan, a plan two years in the making and the single most important step america has ever taken in the fight against global climate change. [ applause ] right now our power plants are the source of about one-third of america's carbon pollution. that's more pollution than our cars, our airplanes and our homes generate combined. that pollution contributes to climate change which degrades the air our kids breathe. but there have never been

federal limits on the amount of carbon that power plants can dump into the air. think about that. we limit the amount of toxic chemicals like mercury and sulfur and arsenic in our air or our water. and we're better off for it. but existing power plants can still dump unlimited amounts of harmful carbon pollution into the air. for the sake of our kids, and the health and safety of all americans, that has to change. for the sake of the planet, that has to change. so two years ago i directed gina at the environmental protection agency to take on this challenge, and today after working with states and cities, and power companies, the epa is setting the first ever nationwide standards to end the limitless dumping of carbon pollution from power plants. [ applause ]

here's how it works. over the next few years, each state will have the chance to put together its own plan for reducing emissions because every state has a different energy mix. some generate more of their power from renewables. some from natural gas. from nuclear or coal. this plan reflects the fact that not everybody's starting in the same place. so we're giving states the time and the flexibility they need to cut pollution in a way that works for them. we'll reward the states that take action sooner instead of later because time is not on our side here. as states work to meet their targets, they can build on the progress that our communities and businesses have already made. a lot of power companies have already begun modernizing their plants, reducing their emissi s emissions, and, by the way, creating new jobs in the process. nearly a dozen states have already set up their own

market-based programs to reduce carbon pollution. about half of our states have set energy efficiency targets. more than 35 have set renewable energy targets. over 1,000 mayors have signed an agreement to cut carbon pollution in their cities. and last week, 13 of our biggest companies, including u.p.s., and walmart and gm, made bold new commitments to cut their emissions and deploy more clean energy. so the idea of setting standards and cutting carbon pollution is not new. it is not radical. what is new is that starting today, washington is starting to catch up with the vision of the rest of the country. and by setting these standards, we can actually speed up our transition to a cleaner, safer future. with this clean power plan by 2030, carbon pollution from our power plants will be 32% lower than it was a decade ago. and the dirtier way to say that

is that we'll be keeping 870 million tons of carbon pollution out of our atmosphere. [ applause ] the simpler lay plan's way of saying that is it's like cutting every ounce of emission due to electricity from 108 million american homes. or it is the equivalent of taking 166 million cars off the road. by 2030, we will reduce premature deaths from power plant emissions by nearly 90%. and thanks to this plan, there will be 90,000 fewer asthma attacks among our children each year. [ april plaplause ] by combining this with greater

investment in our booming clean energy sector and smarter investments in energy efficiency, and by working with the world to achieve a climate agreement by the end of this year, we can do more to slow and maybe even eventually stop the carbon pollution that's doing so much harm to our climate. so this is the right thing to do. i want to thank, again, gina and her team for doing it the right way. over the longest engagement process in epa history, they fielded more than 4 million public comments. they worked with states. they worked with power companies and environmental groups and faith groups and people across our country to make sure that what we were doing was realistic and achievable but still ambitious. some of those people are with us here today. so tanya brown -- tanya, wave. go ahead. tanya brown has joined up with

moms across america to spread the word about the dangers climate change posed to the health of our children, including tanya's daughter, savannah. dr. katry has spent her career researching the impacts of pollution on families impacted every single day. doctor, thank you. sister joan marie steadman has helped rally catholic women across america to take on climate. sister, thank you so much for your leadership. she's got a pretty important guy on her side, as pope francis made clear in his encyclical this summer, taking a stand

against climate change is a moral obligation. she's living up to that obligation every single day. now let's be clear. there will be critics of what we're trying to do. there will be cynics that say it cannot be done. long before the details of this clean power plan were even decided, the special interests and their allies in congress were already mobilizing to oppose it with everything they've got. they will claim this plan will cost you money even though this plan, the analysis shows, will ultimately save the average american nearly $85 a year on their energy bills. they'll claim we need to slash our investments in clean energy. it is a waste of money. even though they're happy to spend billions a year to subsidize oil companies. they'll claim this plan will kill jobs even though our transition to a cleaner energy economy has the solar industry

to just name one example creating jobs ten times faster than the rest of the economy. they'll claim this plan is a war on coal to scare up votes. even as they ignore my plan to actually invest in revitalizing coal country and supporting health care and retirement for coal miners and their families an retraining those workers for better paying jobs. and healthier jobs. communities across america have been losing coal jobs for deck cates. i want to, would with congress to help them. not to use them as a political football. partisan press releases aren't going to help those families. even more cynical, we've got critics of this plan who are actually claiming that this will harm minority and low-income communities even though climate change hurts those americans the most.

who are the most vulnerable. today, an african-american child is more than twice as likely to be hospitalized from asthma. a latino child is 40% more likely to die from asthma. so if you care about low income minority communities, start protecting x the air that they breathe. [ applause ]

>> you can also expand medicaid in those states, by the way. here's the thing. we've heard these same stale arguments before. every time america's made progress, it's been despite these kinds of claims. whenever america's set clear rules and smarter standards for our air, our water, our children's health, we get the same scary stories about killing jobs and businesses and freedom. it's true. i'm going to go off script here just for a second. because this is important. because sometimes i think we feel as if there's nothing we can do. tomorrow is my birthday. so i'm starting to reflect on

age. and in thinking about what we were doing here today i was reminded about landing in los angeles to attend college as a fresh freshman, as an 18-year-old. it was late august. as i was moving from hawaii. and i got to the campus and i decided i had a lot of pent-up energy and i wanted to go take a run. after about five minutes, suddenly i had this weird feeling like i couldn't breathe. and the reason was, back in 1979, los angeles still was so full of smog that there were days where people who were vulnerable just could not go

outside and they were fairly frequent. and folks who are older than me can remember the kyoga river burning because of pollution. and acid rain threatening to destroy all the great forests of the northeast. and you fast forward 34 years later, and we solved those problems. but at the time, the same characters who are going to be criticizing this plan were saying this is going to kill jobs, this is going to destroy businesses, this is going to hurt low-income people, it is going to be wildly expensive. and each time they were wrong. and because we pushed through, despite those scare mongering

tactics, you can actually run in los angeles without choking. and, folks can actually take a boat out on that river. and those forests are there. so we can learn lessons. we got to know our history. the kinds of criticisms that you're going to hear are simply excuses for inaction. they're not even good business sense. they underestimate american business and american ingenuity. in 1970 when republican president richard nixon decided to do something about the smog that was choking our cities, they warned that the new pollution standards could decimate the auto industry. it didn't happen. catalytic converters worked. taking lead out of gasoline worked. our air got cleaner. in 1990 when republican

president george h.w. bush decided to do something about acid rain, said the bills would go up, our lights would go off, businesses would suffer a quiet death. it didn't happen. we cut acid rain dramatically and it cost much less than anybody expected. because businesses, once incentivized, were able to figure it out. when we restricted lead fuel in our cars, cancer causing chemicals in plastics, it didn't end the oil industry, it didn't end the plastics industry, american chemists came up with better substitutes. the fuel standards we put in place a couple of years ago. didn't cripple automakers. the american auto industry retooled. today our automakers are selling the best cars in the world at a faster pace than they have in almost a decade. they've got more hybrids and more plug-ins and more highly fuel efficient cars giving consumers more choice than ever before and saving families at the pump. we can figure this stuff out as

long as we're not lazy about it. as long as we don't take the path of least resistance. scientists, citizens, workers, entrepreneurs, together as americans, we disrupt those stale old debates, up-end old ways of thinking. right now we're inventing whole new technologies, whole new industries. not looking backwards. we're looking forwards. and if we don't do it, nobody will. the only reason that china is now looking at getting serious about its emissions is because they saw that we were going to do it, too. when the world faces its toughest challenges, america america leads the way forward. that's what this plan is about.

[ applause ] i don't want to fool you here, this is going to be hard. dealing with climate change in its entirety. pi it's challenging. no single action, no single country, will change the warming of the planet on its own. but today with america leading the way, countries representing 70% of the carbon pollution from the world's energy sector have announced plans to cut their greenhouse gas emissions. in december with america leading the way, we have a chance to put in place one of the most ambitious international climate agreements in human history. and it is easy to be cynical and so say climate change is the

kind of challenge that's just too big for humanity to solve. i am absolutely convinced that's wrong. we can solve this thing, but we have to get going. it is exactly the kind of challenge that's big in you have to remind us that we're all in this together. last month for the first time since 1972, nasa released a blue marble, a single snapshot of the earth taken from outer space. so much has changed in the decades between that first picture around the second. borders have shifted. generations have come and gone. our global population has nearly doubled. but one thing hasn't changed. our planet is as beautiful as ever. it still looks blue. it's as vast, but also as

fragi fragile, as miraculous as anything in this universe. a blue marble belongs to all of us. belongs to these kids who are here. there are more than 7 billion people alive today. no matter what country they're from, no matter what language they speak, every one of them can look at this image and say that's my home. we're the first generation to feel the impact of climate change, we're the last generation that can do something about it. we only get one home. we only get one planet. there's no plan b. i don't want my grandkids not to be able to swim in hawaii or not to be able to climb a mountain and see a glacier because we

didn't do something about it. i don't want millions of people's lives disrupted and this world more dangerous because we didn't do something about it. that would be shameful of us. this is our moment to get this right, leave something better for our kids. let's make the most of that opportunity. thank you, everybody. god ples you. god bless the united states of america. thank you. >> and the president wrapping up a speech at the white house, unveiling his clean power plan, the fundamental goal when he spoke about a lot, the fundamental goal is to reduce the carbon footprint of power generation about 32% below levels of just ten years ago. it will base a state's ability to produce output and measure output by states. president calling on individual states to come up with their own

plan as far as selling the idea. the president noted that 14 of the 15 hottest years over the last 100 years have occurred in the first 15 years of this century. let's go down to john harwood who's in washington, d.c. with a wrap-up of the plan. john. >> reporter: brian, the core of the president's message was two-fold. one, that it's getting late and it can be too late to deal with this issue. and two, he tried to gurd his allies who are going to be defending this in court and on the campaign trail against the attacks from republicans that have already started. been under way for a long time saying these are the same people who's said all sorts of progress in governmental regulation has been impossible and in fact it has been possible. and so this is going to be a big fight. it is going to be a fight on -- in politics because it is going to raise the costs of utilities in some states more than others. it is going to affect coal states more than non-coal

states. that's why you've got a serious amount of opposition and the question is whether these will stand up in court and persist under the next president hoe hopes will be a democrat to help sustain it. >> there's no doubt, john, that the opportunity, whatever happens, is going to be huge. a lot of people may not realize that coal is still the nation's single biggest producer of electricity. about 39% according to the eia. you factor in nuclear, that's another 19%. you've got 58% of power generation, electric, or nuclear -- coal, rather, and nuclear. if that goes away under these new plans, the opportunity for somebody -- renewables, whatever it might be, is going to be in the multiple trillions of dollars. >> that's part of the argument from the administration, one. business opportunity in other sectors. green energy sector. the other argument from the administration is the health benefits that are gained through reducing the emission of greenhouse gases is going to pay off in the long run. but this is going to be a

wrenching transition. he said at one point i'm not going to sugar coat it, this is going to be hard. well, that's a fact. it is going to be hard. we saw that when the cap in trade system proposed are collapsed when democrats controlled the congress. this is a touch issue political. people always perceive a tradeoff between the environment and the economy and democrats are going to try to push through that. hillary clinton's already embraced this plan. >> we got to generate the power from somewhere. john harwood, thank you. as we go to break, speaking of energy -- oil closed at $45.17. that's the close for oil in a number of months. back after this.

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hello, everyone. i'm sue herera with this cnbc news alert. the jurors in the colorado theater shooting trial reached a decision today to keep the death penalty as an option for gunman james holmes. the jury deliberated for basically less than three hours. they started on thursday, they had a break on friday and they deliberated about an hour and a half or so today. it's nine women, it is three men. they were asked to decide whether circumstances such as holmes' mental illness and trouble-free childhood and lack of a prior criminal history

reduced his moral culpability enough to justify sentencing him to life in prison. at this point though, the verdict was just released and they have decided to keep the death penalty as an option for the gunman james holmes. they now go into the third phase of sentencing. they will hear more testimony and deliberate. melissa, you're up to date. back to you. >> thank you, sue herera. with obama's clean energy plan is now the time to be investing in clean energy? some of the solar stocks today currently trading to the downside. a lot of these stocks have been recent lip trading along with the price of oil which is trading it lower today. michael, what if anything is most tangible impact on the solar industry of the clean power plan? could it be the extension of the investment tax credit, the itc, by a couple more years? >> yeah. i think the impact of the plan is more than likely to increase

the odds that the itc is extended. the president is clearlymakering renewables a key component of his policy agenda. one thing i would say is if you look at where we stand today, renewables are already 50% of new capacity. if you think about renewables and the argument being focused on economics and consumer choice, it is really a topic that plays well across both sides of the aisle and i think that increases the chances that you'll get bipartisan support. >> a lot of you solar analysts were saying with the end of the itc it will favor some of the larger scale producers, solar panel producers and installers out there and there could be consolidation in the industry. does that slow down if the itc is extended? what are the impacts? >> i think that's kechdefinitele of the logical conclusions being more smaller regional players stay in the market but also

profitability across both residential and utility scale segment will continue and i think what is lost in terms of market share would be more than made up for in terms of system level profitability really across of system level profitability across the segment. >> as we noted, 58% of current electricity generation is still coal or nuclear. the opportunity would seem to be in the trillions of dollars 20, 30 years from now. why haven't the solar stocks reflected that necessarily? they're down today. i know it's one day. why is there a longer term optimism among a sector which has caused investors a lot of pain? >> i think that's a great point. but it may speak to the nashgt markets. it's hard to make decisions when you're facing a policy cliff six quarters out. to the extent that the itc is more likely to be extended from here on as it relates to how the stocks trade and coming month. i think the itc extension is going to play a much larger role than the clean power plants.

>> so a bottom line that then if, we look out, that's one way to invest. if you own the names or thinking about owning them, michael, the way continue to vest is to look much shorter term with the itc? the long term goal is great. but the short term headline risk is really where the risk is in investing in these companies? >> yes. i would say that the stocks right now are pricing in the itc being stepped down. to the extent it does get extended, i think we're talking about substantial gains across a group. >> all right. michael, we're going to leave it. there thank you for your time. >> thank you. >> let's take a look at how they have done in the space. clean energy etf is down 15% over three months. tan down about 26% over the same time frame. the stock partly to blame for the decline in the solar itf, a chinese solar is down 27%.

as you know, a lot of the solar stocks, even though there is no fundamental reason why they should trade along the price of the crude, they're trade ago long with the price of crude. that's a story there. >> and they also have cute tickers. that's a key. if you have an etf, the ticker needs to be lee. you have to have a cute ticker. that's part of the whole thing. >> done deal. >> all right. let's go to a quick break. we have brian belski who is patient wlating here. we'll get his market straty after the break. oil closed way down. the market is way down. we have a lot to talk about. don't go anywhere.

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i'm a customer relationship i'm roy gmanager.ith pg&e. anderson valley brewing company is definitely a leader in the adoption of energy efficiency. pg&e is a strong supporter of solar energy. we focus on helping our customers understand it and be able to apply it in the best way possible. not only is it good for the environment,

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or purchase with 0% apr financing. coming up to night, a short selcer going to give us his top short ideas in this market on a day when the dow is down 1%. >> wow. rare appearance by bill. that's great. thank you. august is the worst month for the stock market over the past 15 years. so with five months left in the year, let's take a closer look at wall street strategists targets. brian belski from bemo capital markets, you were expecting a 7% rise. are you still? >> no change in numbers. no change in rating. we're still very comfortable with 2250, $126 of earnings and extremely comfortable where we're overweight with respect to financials, technology and industrials. >> that's 1.5% roughly a month we need to gain to hit your target.

what's going to be the driver of that? >> we think it's going to be especially of the two of the three sectors in the story, financials and technology. we think number one investors around the world are underexposed financials. that's where we think the growth is going to come from. analyst estimates are way too low and as estimates, interest rates and yield curve continue to go in the right direction mean higher, that will drive profitability. >> what about oil? how worried are you about oil? >> the problem with oil, brian, is that 12 years of upward trending prices and we are less than a year into the corrective phase where i think people are just -- they're too fixated on what the number is going to be. is it $35? $40? here's how we have to think about oil. we need to see a trade range. operate the byes and companies accordingly. we're not near that yet. >> so you want to see stability? >> i want to see stability and management say we're going to employ structural changes. rebuild our balance sheets. we're not there yet.

>> all right, thank you for your patience, brian. >> patience is a virtue. >> it really s i don't have it. $22.50 your target. thank you very much. big day. stocks are down. oil is down. big show tonight at 5:00. >> yep, it will be. meantime, "closing bell" starts right now. >> welcome to "the closing bill." oil is a big story for equities and other markets to day. crude closing down 4% now just off those lows. there are concerns over weekening global demand. weighing on that commodity and, of course, we just keep pumping. >> we do. we saw the beginning of this decline on friday. energy names dragging down the market today. a couple names on the dow in the green. apple is a big loser on that index today. april sl in correction terror