tv Closing Bell CNBC July 9, 2009 3:00pm-4:00pm EDT
sale of gm's assets s to to a soso-clelenew gm. he will hear an aeal but says it hass a m minal chance of suesess. that's cnbc.com "n"ns now." i'm diana olick. equitities oking to m mak pu into the home stretch wiwith ococks makakin mododes m mov gher as we e eer the falalnd momo i imptant hour of ththe trading day right now. welcomeo o "t closing bell," erybody. i'm scscotwawaer here onhe floor of the new york stotock exchange. y there, michelle. >> hey,scott. i'm michelle casosoabrera, in for maria bartiromo at bcbc globalalheadquarters. inhehearkets right now s stoss are showing someme mest momenenu in the finalalouourhough we're off the best levevel o oththe d. financial stocksks hpipingo provididsosomeupport.. thatat'sftft the s&p 500 hit a two-month
low yesterday. here are the majajor indices rit now. theowow jes industrial averagee in positive territory y by lilitt m mor than 1010 inin. 8,8,8. can we g get b bac to 88,2?? as for t t nasdaq, iisis highe by nely 11 points. 3 of a percenen
1757. anthe s s&p00 right now also inositive territory by f frr poinints a gain of halflf a percent.. 883. scott? >> all r rig, , chelle, let's get more on daday' aconon ourr team covering g ee markets thth nysyse,hehe sdsdaqthe nyme up in chagago. but firsrs t touour rtha coombs whisishe eye on the floloor totoy y he at new york stock change. hehey,bebert. >>hey, coco. ye, we are close to t tha 8282 rk. we hadadusust en there a couple of minutes ago. some pretty nice revevery ckck fm where we weree on moayay. part of the e asasona little bit rieief this afternoon. ininhehe lt few hours or so afteteththat treasury y auioio t more or less well.l. not as well as yesterday.y. we d did see a ltltle bit of a movement to the up side. techs leading theway. nanaials
have beentrong for mumuchf the day. alcoa a stteted e day off on a positive note and thee eaings seasas o on positive nono. but alcocoa spspit beating estimates wasn't really a allhat bullish h ouout s outlook.k. the retailers, aixed bag. the highghnd were weak, and the low end a littltle better,, but
overalall j jusunderscores coconser weakness. as far fifinaiaia, goldman chs a standout, bngng pgpgrad atank of america merrillll lynch.h. goman sachs wl be reporting xtxtuesday. ththosesestites have come up, doubled alalmo s sce two months agago. real expectationonhahat they'll outperform. e regionals are doioi very wellll. morgan kgan upping itits estimateteonon huntington baban sharar.. and energydodog well wwl,l, with the wkness in the dollar today after the bank ofofngngla decided i it snsn going to buy babacktsts ndnd the gld rchases. it's c cutngng those. drug stocks the one weaeaknsisig dragging t t d dow merck has beenen arara there wass c clelestol drug trial involvingmerck andbbbbot bs, zedia, a ait was halteted norereal sure why, but t stksksave been down onn that ws. meantime, the oos oncegagain movingng tththup side. take a lookok a at the hmo ini. tna, cigna, a allhose moving to the up sidede. nanateajority leader rrrry reidid says th the democratstsa
w w op to the possibility ofof maybe doing s som sort of non-governmental co-o-op rather than a a government-runun an. th is one of the thihing that's going totoavave these s stoss contininue to be volatile as we continue to hear ee discussions as they momo towowd d so sort of health reform bbil that's ittfrfrom here. let's move totown to the nasdaq and mike ckckn.n. >> t tha y you berthth here at the nanasd we had a realal c choy morningsession. yoyou n see that up a adown, seesawaw, r rolr cocoteter,hater yowawa to calall it. but we have beenen picking up steam throughoho t the afternoo asas ttt trtrad chartrt shows. and right now 're up 12 points, aa little momore t tha a percent. the chchip areefefinely chippingng ibebeuse look at the ililadphia semiconductor index, up more than 3% right now. at's really in larargepapa d due to a buishcaca out of cohen & company, whihi i iniated coveragege tayayf broadcom, icicis up 4 1/2%, thth t equiuivantntf a buy rang, saying this is a semi i por r hohoehouse that c cou see 20% p side relativeveo o th market in ththnext couple of ntnths from oneneinind of chip t t
ananotr, we're talking about wynn resosort that stock i is amongththe big pepeentage gainineronon t nasdaq today. reportsininevevad that the casino business thererisis gettg ssssworse. and of course le worses s e the in retail today. t we do haveve costco downore anan1%. the pricelinin negotiaiatohaha negotitiat a a dl with ticketmaster. 've got adedeal between tivo and d be b buy and t tnnome drug data and biopharma.a. rigel u u 17%. over to o you. >> we'e'reooking at a d here in thehe energy markets, mike, whwhe e wee seeing oil price that's were ableo holdbove $60 a rrel. enngng six-day lososin streak.. this is somemewh s snificant and may give some psychological pport to the bulls, bubut epep in m min we're still dnn about $13 ncnc june 29tth. 're looking at the prices right now that e eve after we gt thatat jleless datarere higher
here. the weakerrololla as bertha mentioned certrtaiy y lping p ththe facthat equities haveeld p prey well also hhelng. hohow ghghill oil p pris go, perhaps? h hav the russisianelelegion of g-8-8 smit saying that myy of the l ldedersaid that 70 to $80 a barrel was a f faiprpre. opec sececreryry-geral saying 00 oil will nottmpede rerevery. and d al w we ve the eia talalki rlrliethiseeeek about $70 o and thth's's wt they inin the ereragprice will be for the e second half of the ye.. weavave e international energy agency givining ththrr price focaca updatatin that torrrrow in terms o o whatwe've seen whh oduct icic our bobetting a littlele lt t day perhaps the follow-up withth crude but alsoa couple of refineriesalalki about shuttitingowowproductions. they had plannededo do o. vavaroro'subo fini s srtrtin that prprocs. shell continuing shuttttindodown refinery i icacana. natural gas s geinina bit of a bobooshere with the storarage levels comimingnn tt were smaller thanan eececd incrcrea thther that gave it a a bit off lift erer and we're just heariring
from the " "llll seet journal" th exxonmobil hasas made very big natutull gas findn cada, itit g goi to produce about 166 to 18 bcf. that's in the hornrniviver bas. finallll w wan toenenon something from the treasury and enji departmtmenthe, they're ananuncing the $3bibilln in grants that aree going to be given out in termrm of renewabl fuel projects. keep in mdd these renewablble enener p procts and this anununment of a granttasas sosoththinthat wasntntipated bubut anangi fray tax creditoo a granant rt of the stimulus package,e,icick, is something tt this administration n sa s shod help thehecocono. erer tyou. we, thank yo we hopealall the stitilulus lps the ececony.y. ththat t the whole oint. as f f the wholele pntnt with fixed come, one chartt mmarized it pretty we. let's s lo a a a o-o-da chart f 30-y-yr r yids. theyey startededutut in the 4.3 yeererda they movededowown 4.15. and today theherere rht back u toto 4.4.. soso i essence, the goodwill yesterday's -year noteuctionon wawa ort-lived. ceaiainlwe're way offf the
ghghield levels of a monthth ago, but we're cerertalyly much higher than n w werat the endd of t theirirst quarter. e dollar in a l o o action today, post ba of englglan and let't's bawards. let's lolooktt a wowo-mth chart first. lo a a in crazy s schchasc range we're in. bacacay between 79 and for a month and a half.f. but we arere beelining toward t bobott o othat rgege today ass you look at two-day chahartf f the dollar ininx.x. it's nowow wll ununde 80. and d ofououe 79 to 81, that'ss why the trtradss had80 as the pivovot. michelle? >>eah, that move in the llar er the last couple of dadaysass beomommeed on andt's traordinary. lelet ask you more abtt the 30-year auctctn n th happened today, rick. the u.u. g govnment spending a lolot m mon. they'r'rgogointo try to boborr a lot of money. th did it toy.y. over 30 years. people were worried thatat maybe the chinese wewen'n't ing to lend them money, ybybe u.s. coumums weren't going to lend them money. hoho did thehe a aucon go totoy gi i ia grade. > wl,l, ithe context o o yesterday's s sptatacur 10-year, u u kn, this was a c-plus
ction. but t .3.36 c csising every dod avaiailae e caed the bid to cover, that't's ililterrific. the's auctions in eope wheree yoyou vevearely ov a a dlar chasing a dollarar. so if w we ha toummarize ththe urur ations this week, at this pot in time the governmnmen continueuetoto he no prlem finding invevestssomestically andinternationally, but there's a lot of auctions to c comovover the next s sereralyears. >> tt still confidenence in th u.s.'s ability y p back.. >> a aolutely. > tnknk y very much, rick. rising unemployment and unseasononab c cooand rainy weather last monthforcing coumumerto cut back o o t the spending. cnbc's rebebcaca rvis joins us now to brereakownhehe junee same-s-srereales numbershaha werere o t tod. rebecca? >> hey, mmhehell and it'sort of thisesess b bad mamant continuiuing the good newsws about half retailerers atat omet expectations.. but the caveat, t the mantra, mt of the resulults were negative. compared to last june. and with back to schooool reread hittingshelves, analysts say that in theututur we mayeeee more of ththe sasamemore mark downs, lowower prices. it is good news forr consumers bunonoso much for rrailers.
>> it willlle e a challenginingk to s sooool ason because consumers are spendidingnn need ther than on wt t d they're looking for loww prices. >> she says the off-p-pri tatails are best sitioned to ke advantage of thth current enviroronmt.t. companies likekeososs and tjx, whwhicboth beat and raised guguidcecen addition to childrdr's's railer gymboreeee upped their foforestst a their outlook by tenen ctsts as well taetetepartment storeses. also doingbetter thanxpxpted today. hlhl, jcpenney's,, nordstrom,m, and saks all beatt expectatatiop saks produced the e biesest side supupy.y. sales at the high-end deparartmt chain slslpeped 4.4% b t the markrk w wasxpectation a m mh lalarg near 12% drop. alalts sayor retailers it wot be enough to continunu cutting costsoioi foforwd,d, so pursuing m msures on the e co sidedeikike renegotiating g re a titighr ientory controls won't be enonoug to h hpp iestor optimimism instead the retailers ndd to show sales improveveme.. that's's gngng tomome wn to the
ste e the cononsur.r. most impmptatant, they n nee to feel m mor secure about t tir job, thr popofofoli and the lue of their he,e, cott. anandntil that's all working, they're not going to o pu a lot of discretiononardodoars to work. backckvever you. >> okay,y, rerebea,a, tnks so much. t t also mentition that in tht next houour o o "the clososinbe we're going to digig a littttle deer into what the ututok is fofor ck to schoolsales.s. can you already believeve it? the summer is not even or yet and wewe'ralalrey looking toward back to chchl. t t les dive moreininto the markets today withth bob p plik anand alec young. bob eehief mortgage strategist with bondnd y yng papartrs. and alal w wit standard & oror. let's plplay off the retail sals news we got t ou toy.y. not really goooo is that what's holdidinghehe market back k totoy, bob?b? >> i thinkat least in the discrereononarsector you're sengng little bit ofumump up. people want tooplpl their discretitiarary ctor, they want to get posititiod d foecovery t theverall economy.y. and these dcocot retailers aree a fine w w t do itit. ifif y t taka look at w whas going onwith tjx,t's a w-cost retailer and ii think
that's a tremendous s opportuni. and the same t thi with ross stores. think what's reallyly holding thmarket back i iththe second ququter earnings seon. erere'also concerns about what's happening in n thgegenel ononom that it's not respondingngs s quk as some people want. the unemployment report, everybody's been sayayinitit an it's been true, r reayy just hihililighng the factthth the ececony y coinues to remainin a least below trerend we'r'rgogoin to seett that lel. bubut eventually there's's gngnt be more of a st of a conciliation that thisis market is actually going to p picupup sosome momentum as ople realiz that the economy iss pking up me steam. >> alec, siziz up today'sarket activity. we a areololng on to a gnn here, albeitt a modest one. ten pointsts oththdow. >> i have arerett bearish re on daday' acaconon. we were pretty orsold coming into the day. we've had d veveraweak sessision anand e e fa we aren't even able mount a rallyly today s sho me negative momentum a andyiying into t t f funmentals i would digree on the take on thth retail sales.. there may b beome pockets as bob ghtly pointeded out where u u can make some m mon o or there, but in termsf f th broad market
implicatatnsns badly speaking tata sales were a train w wre you and i i thk k ople are trying to gaugewhwhat kind of rength does this recovovy-y-v and i i thk k ke friday's jobs report today's retetai sales araren very confidence iniring. so l lkikingt the year iththin wee still pretty y cotrtrtive on the market, but in the near term we t thi there's more woro to shohow isis recovover h leles and we're justst not g g faof the mamark i in e near term. >> alalaa better ththanxpected after ththbebellicking off earnrnin s sean yesterday. > wre extremelyoversewed, w w probably lost t 300 or 400 p po on t theowowince thursday morning of lastst week, and friy s a holiday. ryry orsold. we d d g getome fundamental l ckers. we h had nicebeat on thebobottom and momo importantly on theop line. cecentuidance from aoaoa. albeit from lowerered exctations. and d th we can't r rlly get ananytng going. think i'm more off a trader from a short-term m seimimen standpointnt t thi that's a lilile bit nenegave. >> bob, did alcoa r rai your optimism for the mainder of earning seasonon? >> elell, it'ssvevery hard to t frfrom alcoaanand sort of briri
toto broader cture for the overall market. i think what's rlly going to help the overallarket is the guidance andnd t reports that t the financials have e xtxt week. i meme, , ifhe banks can make money, that't's ining be a clclea signal that the marart ta o oortunity to move h hheher sht-t-rm. i thinink the second ququteter eaearngsgseason is going to be very simimil t tthe first quarter,here therere's an pectation where 5%5% o earnings were goingg tbebe belo. d i think what you'ree ining to see is some of whatapapped in q1, where % of the companies in the s&p 500 werere lele to bebeat now, thehe guidance i is going e ke but most of that guidancess going to b be somewhat obscured because e th pture is not really clear atomomof thesese companies and ananaltstseally ve to work off ofhat. butt if you factor intntsosortf the improveded enonoc condition i i thk you're going to s a somewhat better eninis enroronmt and the market moving up from here. >> thank you so mumuch goodod tsisi guys. we have 45 mininut t to in the trading sesessn.n. as i said, we are holdi iningnn
modest gains a acrss e ard. naaq up 12 here. mfs investment managementnt chairman robert posen, he's going to explalainhyhy h thinks it would be a big, b mistake to gatat pand theededer reresee'e'role as systemic risk regulalato that's at least t e e pl right now,w, according to the government. coming up next, find o outwhwhae thks should be doneinstead. >ndnd later, the " "st money fil caca.. we'l'll scscs w wheerer corpora bonds or tasasies are the better bet foror y you portfoli right now. and then after thehe bell, should investors b b d dcocounn the weak j junrereil sales and inead be focusing onback to hoho season instead? or is retailil s sething you ju want to stay away from rightt now? answers today at 4:00 p.m. eastern. >> but fit, the most active ocks on the new w yo s sto exchangege led by ththe inancia. nknk o america and citigroup. ckck ia sec. totay on top of mye afr r ,
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hampton? >> well, defendingng ttt plan, the fed'sice chahamaman donald cohn, and he's rununni i ioo bacacay having to do quite balancining t,t, if you wiwill on the one h hd,d, d defdidi th cecentl bank's independence wnn it comes to m monary policy whwhilatat thth same time fendi ofcallsrom members of congngssss f more trtrspsparcy, includining possible auditit bye congressional wawahdhdogagency, the gao. >> thehe f fedalal rerve provid e public and t theononess with detaileded auaual ports on the coconsidided financial sysyst.. these reports s rere auditedd bn inpendent public accoununti firm. we publish a detailedd lalae sheett o a weeeeyy basis.. >> kkohs testitimo c com as cocongss debates president obama'a's anan f foregulatory foformhich envisions the fed becoming sysystecc riskegegulor for lge interconnected firms. >> the federal resererve alread regulates bank h holngng companies, which nowinclude lae e vestment banks, a and we hahaveeen moving to incocorpata
a more m mac prudential prproa totourur supervision a regulatory programs,s, a evenced by the cently compleled d survisory capital assessmentntrorogr. >> howeverer, there is avery strong pushback f fro house republicican >> w w partiticurlrl object to what we seeee a allowinin the f toececom a permanenent bailout agency. >>e are no lkiki for thee congressssoo run netary picicy. we just t ntnt to knoww what's going .. > now, thth hearing has beee dedelad by a series off use flflr r vos.s. so the question and a awewer phe is just now gettiting under y. >> ichelle? >> hamptoto thank you. next guest popose the vevement plans to m mak the f f the exclusivive gugutor of alal institutionsns pinin asysystic risk. he l layouou his case ododay "wall streetet jrnrn" saying the trsusu's proposal is miuided. robebe p pos is chairman of mfs investment nanagent, a fororme chairmrmanff fidelity investstmes.s. good to see e yo m mr. posen.n. make the ca.. why isis iththat you thinkhehe d
cannot and should nonotee the sysysticic risk reregutor? >> ell,wewe need to unrstand atat the government'sroposal is to have aouncil as the risk nitor but then o onc an institution is deememed to be systemically riyy then t feded takes over as t txcxcluve regulator. anand thatas t prprobmsms first of all, we haveve a gro cocoalion of agencies actctin a the rkk moninito when we haveve lo of different people with lotsf different sponsibilities, it'ssort of an invitation fornonooneoo take the lead no, oneeo take control. >ouou also make the poioint itit's not possible to entify susuch itititions in a advce and at it's not n nessarily inststututio, it's products, it's different heded fund sizes anththey always be behind t baballririt? >> yeaeah. and thth w we t to thee qststn of oy,y,o we're mononitining and then if we w wt the fed to be
the exclusiveisk regulator of all risisky things, how d we kw in a advcecehich ititutions e e gog to be risky? how do wenow which p pduduct are goining b b risky? and if w we takeke a an institun sasay,ikike an iurance company and we say okay,, we're goingg dede you to be s sysmically ririsk tnn we're essentitilyly crcrting moral hahaza. 'r'r mangng a investoto t thi wewe'rgogog to bail outut this institution no tttter what.. andfinalllly,ooinstitution, n regulator c h he enouough expeperte e do not oyy banks but insurance companies, to pension funds -- >> j justotoo ch on their plalae esesntntiay. >> yeah, it t isoooouch on their ple. >> can i asksk y a bigigge question t thaththe "wall stree urnal" really highlighteded dada they say b b bernrnan,, is he ining stay or i ihehe going to gogo? wall street wants s m m totay, bubut ngngss a appently is complaining about him. now,oo me if cgrgrs complains about you u atat'sn endorsement. t what dyou think??
do you think it wowoulbebe a mistake to chait p pyeyer the middddlef f e game hehere or ould bernanketetep down? >> i thihink bernanae'e's very brillianant y y o's trying very ha tonjnjt liquidityty io the system,nd i tnk what he's doing so f far has been as goodod as you can do given the very difficult cicircstances. bubuii think it stilill would d mistake to go o bendnd risis monitoringng. t theed did ririsk monitoring, itould be consistent witith what it does for setting monetary pocycy it's consisistt t wi looking at e markets, lookingatat ee ececomy. but ththat a verybig difference ththan b bomominthe excxcluvevek regulatoto and if i were bernanke, i wouldn't r rlllly nt to do ththt th's's a littlee too much. i think he'soioing a pretet gd jojob. >> last question. yoyo wrote a bkk "too big too ve:how to fix the.s.s. finanancl l stem." i'm hear from people invovolv in this that mamae e wee gotten to e e int where wveve mched up engh of theseererative contracts, we k kno enough,h,wv
de enough in the banknks, tt t now you coululd t t annstitution ilil. what do you ththk? is that t poible? >> f fstst oall, my book hasn't me out yet. it's coming out. and second of llll i thinkkhat have to be very clear about what criteteriwewee using when weay an institution i is t t big to fafa.. we've lelet lot of inststututi get baililedout. and we have no theory.. in 1991 cononesess pasasse a atute that said if you bail out t aanank therereury has to be very ppcicise has to p down rationale, has to explain the cost benenefi,,ndnd then the controllerer gereral audits i afteter ee fact. we need to extenddhahat statute to all fininanalal institutitios then we'll k kno why is it actly that institutions a a beg bailed out? and if that so of discipline was in the sysyst,, i ththkk we have a lotlearer raonale. ghghnow we really don't know if many cases. >> good point, .. poezen.
ank you. good luck with your bk t thas coming o outnn just aouple months. in thehe ntt hourr we'e' g goi continue t theebebe on whheher seseco stimulus plan would be needed. in the meantime we've 3636 minus bere the closingbebell the dow w jos s instrial average isn positive territory. so is thenanasd. let's gogoo o ma nesto who's standing by atat t breaking nene sk. >> thehewawalltreet journal" reporting the a,a, theooooand drug a admisistrion-s going to close its investitigaononnto the neststletollhouse cookie e dohh situtuatn n wiout a c cclclusn. memeer, it wass about a month ago that ttt plant in virgigini was unrgoing an inspectition when e. colol cases re p psisil linked t to ee raw cooooki doug and they say noww t tha they ha osed thatt case without coconcsion. michchlele, back to you. >> all righty. matt neses.. coming u uphehe kicick "tick b tick." wewe'ltell you what recent moves in azazil stock mararke c cld mean f fortotockhere in the u.s. ter this. tdd#: 1-800-345-2525
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ththistock has seen inwowo months' timeme thanks t t an upgrade toto outptperrmrmt cred susuis. not only helelpi kb homebubut 1 ouof 13 m mbers of thehehome builders index arehigher h her totoda including standarar pacific,c, meritage, d.r.rtrton mbr, andnd lte, all u u anywher fr 4 4 to . i i ju want to mention two pointsts, michelle, iforgot to mention t,t, but the government tes s on this cooookiough story showed that the e.e. coli saiai was didiffenent an that which s s thesample f fm m th sick people and nelelesa is going toreresu production of said okie dough. ckck tyou. >>rings back all t tse memoririesf f coege. all thth r rawookie dough.h. see you lar, matt. taking a lookktt some of the day's research calls, he are e latest upgradesndnd downgrades.. credit suisse raising g it ratig k kb me to outperform from ututrabecause of valuation and solid order trends t thrghgh t second h hf f ofhis year. shararesf f e home buders are wn nearly 30% sincece th beginning of may. crcritit ssse also upgraradi weststn n unn to ooutrfrfm from
neututraanand inincrsing its pre target to $21 from $19 because of stabibilingng remittance e vomemeand potentiall m mart share gagas s as well. and think equity upgrading electronic artrts buy from neutral with a25 price target because of the vidideoamame publisishes s rong pililine of fr ononnene meme scott. >> a a mielle, let's contininu our discusussi o on e market veves of tododaywith alan vald, vice presidentnt hilliard lions warren meyers, ofourse ceo o o walter j j.owow and anbnbarket analyst. guys, good to havave u u re. we'ree jujust talking about t he s&s&isis sitting below its 200-y mong average, the dow fluctuatining a a bit between positive andndegegive rrrrity.y. >> it t esesn'teak a lot move on this light volume.. one stock ibmupupwo points but ththat up 13 points in the weighted vevege. that's's rlllly eping the market where it is right t now. > some of the techs arere pepeorming very well todayayaalo wiwi t theinancials.s. >>e e t to 887. that is the 200-dadayoving average. twtwe today. bubut can't break through it. >> warren, wh do you ee??
> isesee unfortunately a v v lackluster d d o on e floor. ththvolume is very light as a aa was just saying.g. ed banks have been hololdi eir owownll things onsidered. oiththin w was a driving g foee ththroh h pa of theayay today when it turned negative the market kind offell off. when i i raied it turned thee marketet aitittlbit. i think basedn n ere that closed the dow certainlyly gngng to hang ririghararou flat to wnwn aittle bit. >> l let t tk about the o oil story fofo a s secddecause oil fls just a touchtoto t up si b b really the story thehe is the continueued d detioiorao of oilil prices.. can the sckck market gogo up withthouththe energy trade working? >>n n th rallywe've h had since dd mch when thehe s&p'ss b bn up 38%, oil was u45%. so i reallycan't. yoyou' sayiyi, , li warren said, oicocome in,mamark goes in, oil goes up marketezgoes uup. >> what do y y l lik here? >> ioeoe noe what i dodot t li. >> what don'n't u u like? >> there's oneststoc we've been watchihingitith e today is aig and just w wdering whatatasas goininththroh people's minds when they were dng the rerersrse
split. i i mean, i've bebeenarar prere to come onene stockk t tt's eve performemewewellfter doing a rersrssplit. i inink there are maybe a handfull o o thn the history. that's been very interesting tofollow.. t t u look at a sck actually like ford acted verery welel t, gmgm. and i'mmeeping myye on some of the small regionall bksks an i ththk k th're holding their own. >egional banks are performing well. alcoa gotss offo fairly decent startrtltlthoh posted a loloss financials next t ekek a that's goek to be clesly watched down here, ririgh >> absolululyly. that's going to o berorobly the nuer one priority from an inindidudu stock pickcker perspective e an we'll e how the bankingndndexoes by the mile of nextwwek. >> do o u u thk it's a aoaoa ststy or overall earningssstory? >> overall earninings >> you ddo? i think financials will cee inretty wwel they should bebe minin mononey soso i think y y'll see that pretty odod. yousaw todayay t retailele not that good.d. so i think yououee going toeeee
differerengroups. >> werere y guysatatchg the trtrsury auction? th3030ear auction seemed to o go fairlylywell. mixed reresus,s,ot as good as what w w saw yesterday witith e 10-year. >> maybe c-usus > wh h th longegeteterm opti erers a little me trepididatn.n. i think alllhihing considerered probably held d up okay. >> how mucuch lklk down hee is about sendnd stimululus itit sms as though the drdrumatat'sicking up a little bit. ririgh rrrrenuffett weighing in today sangng o may be needed?? you heararsome commentntfrfrom other folklksss well. >> i think a l l of guysould likeken to the first imulus. >> only 20%0% of the money ha gone to wwk,k, rht? that's onene oththcriticisms. b buthat's it in a nutshell.. wewe rather see that tee fefect >> i agree wi that.. the fafa o of e matteter t t first t stululus package was no nelyly a successful in my opioioas what they were h hopgg it w wldld b why do aececd one? let't'geget is fstst one right.. >> wwarn,n,alanan,ththan for ur sight. we'l'll e e yo xwiez onon. let's take a okok at what t th mamaetet'soing. rememberer ienenon td was fltuating between positive a and
negative and rigightowow wdo have a autut 3minutes to go. thdodo just a t tou in negative territory.y. you see on the scrcree theredodn by three points.s. technology performrminwewell today. that's why the nasdaq isis good r r abt eight-point gaiain and the financiaialsalso, michelle, fairly stronong today. > a scott, ming up next,, ththe asast ney" final call. fifindout whethererthe v volili index's s rentntoves mean you u shld move out of coorate e bonds s aninin trsusuri and highghieieldg stocks. afteter isis who cacan veve y the financial adviceceouou nd? where willllouou fd the stability and resosourss to k kp p yoahead of this rapidly evevolngngorld?nd? these are tough questition thth''why we brought together t twof f e most introducing morganan snlnle. in the industry.y. here to rethininkweweth. here to anansw.....your. rgrgantanley smith barney. a new wewith oveve13130 ars of experience.ir oof!f! hope he ha. aflac! yoreally need it these days.s. hococome well i if u'u'reurt and can't work i ipapaysou cash...
with about 3 minutes lefeft until the closing b bel here's how the mkets are shaping up so far. dow w jos s dustrial average has now moved into negativiv territory. t t much, though. wewer about six points. 8 8,172.2. it h haseeee iindisive trade all daday. the nasdaq is hihigh b b6 1/2 points.. 1753.. and the s&p 500 stililhoholdg on positive territory anand t tha 880 level.l. it's at 881.75.. scsct?t? >> michelle, it'ss meme now f fr the "fast t neney"inal calall. cocorpatate nds have fallen orr the e pathree months whe demand f for treasurieses h ststteted gain traction ain. which should youee betting onigig now? joing us with thatanswer is brn stutland president and trader at tututld equities and a "fast m mon" " cocontbutors. gogo t to e you this afternoon. certainly there's beenen aotot o focus on t t b bonmarket ofate with those eaeary auctions.
atat dyou think investors should be doing now whenen i comes to bondsds? >> well, one thingngththat camet last week isis goldman sachs pu ouout report showingghat the x x ould trade dnn to 2525, based on levelssf f e credit defaulult apaparket and aoo corporore e bds.. so one thgghat we're seeing is that the v v should fall lor.r. howeveve t theix has s sfted tttter, shifted f fm m th down trend,d, a a actlly moved a little bit higher rhthtnow, moving up to thehe00 level. i think thehetrtren is changin telling youthat maybee corporate bonds havee had theiricice run ririghnono yoyouknow, with the greatauauion treasury markethahat hadd ststery, investors' a appitit for tasasuris increasing right nono so the play may be actually go with a treasury and stockk combinatatn n raer than jtt havingng cpopora bonds. i ink they've seen t the run. you get the sameekikind of sksk appetite r rig n nowith the ghghielding stock rather t tha a corporate bondndtt ts point. anand s sms like do that withh combmbatatioof tasasies and you're in a sasar r sp right now. pepecily with the market barely holding on to ththe88880 vevel. >> i'm sure my qutiti will unund little bter now that i've a actlllly puthehe microphe
on. bubut y youentioned, demand has been strong over the lasast upue of dadays p perps notsstrong totoy for the 30-yearr for yesterday's 10-yeaear,though.. >>right. totodas s mand for a a loer-term trtrearyryas not as grgrea bubuththatells me t tha the swet sp reallllyss that five ten-year note right now. yogeget there. i i anan, e yields aren't fantasasti let's face it.t. 3% or so return on your moneyeys ththinspecial. but it givives y you a nice saf shashor in the shoho t terand that's w why peoplere moving more toward the short-t-te p pt t theield curve rather thanan the long-term part andnd t 30-year notete which s sti s sm somewhwhatlelevad now. >> talk to me about th overall market. where e arwewe heading?g? >>t's at key level right now. 's got to hold this s 8880 875 level. we've seen substantialalalall yeye whenever there's bebeen a bigpullbackck in the market in the s&p 500, that tellllg g me that in the nenearerer the prnr eainin picture may look k kin of bright anani'i'm looking to tech to be thenenew leader goin forward. a l of people talald d abt energy, enerergyeeeein a pupullk right nnow i think tetech is in a good position. ththeye e ill innonovangng. you talk a autut names like microsoft sxin telell,hohose cod
behe leaders coming out. i think their earningsgs a g goi toto hd up pretty wellanand think k atat'shy investors arer buyingng se e cas at thiss leve bet that their earning pictctur i i going t to p prey dent. as an options tradeder i look it inerermsf that. i ve risk exposure to the down si i if we break this l lev righght rere and buying calls defines thatisisk right here. >> y youe seen considerable opoptis s acon in a name like cisco asaswell, rit? >correct. today we saw cisisco august 191 callllanand e 20 calls wewere purchasesed investototoday. ththeyee betting on a 5% r ree soson n e stk.k. that tellsls me, thosese tee of tions, that have been ococrrrrinin some of thee tech names, and i loooofofor em to be the lelead s se n. some of these rnings coming up in ththfifirs quarter. cisco's always lked at as a bellwether foror technology. yoyou n almost m mak the case i could be a bellwetheher r r e economy y aselell. >> cisco setetititse in t ts perfect position r rhtht n. cutting costs, tonss o cash on e e delines. it c canacquire. it can grow its earnings internallylyhahat y.
and you kw,w, theyerertaly are a a ader. cicisc micronon, intel, microso, lilike said, thohose are the gu you want to stiti wh right now. the dow movovgg downyy about sen points. i just want tootot here owow. about 1010 1 1/3 points or . aryou using theses pullbackcks buying o opptutunies? >> i am,m, but i'm utious o one llllbas. i like g g l lon here at tss leleve b butlike i said before, we saw investors buyuyin at t t money calls, maybe sellllinanan furtrtr r ou of the moneyalal ainst thatoo veve yourself me protection. i'm not in love w wh the market right herere but you do tend d o buy here on ththe llllbas. i don'tt think we crcrh h ou i don't think k argegeon's cong even if weerereak this 880 level.l. there's too much liquiuidi i i the marketetple e rit now to allow that to haenen. so i a a a a buyernn plbacks, bubut b b cauautis.s. don't ovovcommit yourself toooo quickly. >hat kind of ulullbk are we looking at? give m me idea o o what we ould be looking at an vestor right now. >> right now at 8 level on n th s&p 500 ththiss s an area t to n anbubua little itit. i ke iint,, i iike some of the
te names. yoyocacan en add a little bit of energy as we've seenn o pull althe way back t to $60 a barrel too. wait f f t theext step. t tnenext level down below 880 if wesee it get to 800 thahat' ananotr level.l. dodon'pupu in a all yr capitalt 880. isiss a good spopot t to in bt not overcommit. >> a a was speaking to a a couoe of our m mket guests earlier, ririgh below that 200-day minin averagagfofor e s&phich is a pretty substantialallalaceo be atat. >> after you'vee seen the vix x change its pattern andnd to rau its level of volatility in n th mamarkplace aittle bit, peopople aren't going o o and bubuyi stuff. put t ototecon in case we can't hold this 80 leleve but it es tell menvestors arare there buying stocock att this level. ththeye e st using a little bit of protection to proroctct ainst themselveses. and we're seeingng aitittlbit of atrtren change in the vixix rig no trending a aitittl higher. maybe it sticks aroundnd t or 32 vevel ing forward. > we'll catch you on n th"f"s money" deses a allight? >> greatat. thank you very m muc >> coming uponon "ststoney" the to otech analyst breaks dodown e e sector's recent run-up and
tetellyou how to play it. plus as bebe attacks b bomome more prevalentnt an a alylystte you u hoyoyou n profit from this threat. memelia lee and the traders lee at 5:. abt 20 minutes to go beforore the closingg bellll the dow jones s inststal average ba i intpositive territory byy about fouroiois. and mielle, a awewe'vbeen ntioning, it really isis a financial and tete s sto today, atat lst leading the mararke ino sisiti territory. >oming up nexext w wre goingo do a tececicical lookt t e markets. e e kock "tickk by tick." we'll lookok a copper and see i e e bi mo in the market wilil hold a andhahathe base m met is saying about w wheererr not we'r're ining to get a an econo recocove.. >> and afterhehe bell we'll discuss s whheher a second stimulus bell l wi a actlly help ththe onomy or whether it's jtt a smoke e rereensing your tax doararto expand government.. you'u' t theolon lady!
> veve look k erere a pret nicece dererin new york cicity. and takakgg a look at me of totodas under thehe radarstocks, sxernls business c che prininti company deluxexe raising its seconduarter earnings foforeststsabove w wl l stet's estitimassbecause of lower spending and a m mor f forable tax ratat secocondtor testing equipment maker varigeeannounce aplplan to
sell $1100 m milon of convertibe seor notes duenn 2014. ththe mpmpanplans to use e th proceeds for genenalal cporate puosos including potential acquisitions. anankenner metal aouncing it llllell .5 mimiioion worth of new shares. the metal cutting toolanand highway construction e eipipme maker will u useheheroceeds to pay down debeb michelelle >> scott,t, r next guest correctly called t summer squeeze that we're s seeggight w, and now he saysysthat's extending globalllly. joining g n n r regular "tk bytick" segment is jordadan kotick, global he of technical strategy att barclays cacatatal. good to o seyou, joan, as we do every weekek. >> thank yoyou. y youe seeing stuff glalally spspecically in brazil and iia that you're worried about,t, right? ye. wewee e seng things inmamaets around the worlrl i've osen to show todaybrbras sxinina bececau t there so crucial.l. brazil led the w fm '302toto 7 and inina'a'sad a trememendss run this year.r. les s art by looking at the nifty 0.0. thisismamark clearly seems to us
to be talklk abt. wh we look atthe bovespa this c carly topping t. the bovespa lookingbear, t fact w whahavehe nifty looking bearishh suggests to usus t the internatioiol l stk markets are starting to fefeetaiain d havev some down sidede a well. >> do you seeeehat in the msci index as ll, which i isanan ev broader memease?e? >> it's an amalgamation off europe andnd t far east e et tetera so you're e eieinghe patterns ininvidually and globally.y. >> you cann s it allover. >> t thiisis not a particularly od sign. this also sueststhth glal stococmamarks have some dn n side to it,, issnot a s. or european stotoryt't's g glol story.y. they're all ttogher. a bit troroubngngor the umumme >xpxpla what the five-year break e enn five-yearororrd is beuse that's what you'rere gog to shohow us nextt i in e simpl termrms d d te us whatt is shshing. >> thehe attitude totordrdriska inflation expectationon arere correlated. soso ve-year fivive-arar forwar is one of f ee best infnflaonon gaeses tt a lot of peoplee watch.h. >> think of it le a tips almost, , li w wn you looktt the titi market and say the tips rkrkets pricing in inflation and blah, blah,, blah, the
fifiveear forward can do the same ththin >> that's s ghght. it's a gaugege of what thehe ma pshohogy is toward inflflioion. this market cocollseseto the do s sid noyou're startrtintotoee after strong runo o th top side we're startinggto seeee the exa same thing.. this market, t ive-year five-year forward d is startingo roro t to e down side. >> the same hihingrolling over the. >> exactly.. it's the same papattn n u saw in ththe bobospspa, in the ct eex. inatatnxpxpections are starting too -- >> people have fearrbobout the economy. they think there's ssssf a ance of inflationon -- >> itt ans the market gotot ahed of itself. and that willome inss alll these sisions unwind the market corroboboras s at exact ve. >> copoporore ay right into this teem, right? >>xactly. alal ththe sese metals. last yearwetalk about the crack spreads in energy going lor. now you wantnt tpupu itonon bas metals. you have seen tin coapse, 25% off itshigh. now you want to o stt t watch, beuse again, lookingatathis copper arket, exactly l lik the
bovespa, all thesese starting t look bearish rere. thth mattersrsececau this is a leleadg g dicator for the stock market, for the econony,y, a the bottom line is s th summer squeezees goinghrhrou differenenacacti classes. ththisororction has further to go. > h f and how long? >>e'e' looking for it thughout the summer. we think it will rn in the fadepending which h rkrket you're lookingng abubu it means the market's goingng to stay r averse, unwind thestale sitions probably atleast for thnene four to six weeks. >> what trades can youou put ono counteract allll is? >>igight offhe b bat i yesterday's forereigexexange t e yen trade wewe insane ---- >> a lost people hadad seen a 2 or 3% move. they haven't seen n th decades. >e got used to thesehuhuge standada d devtion moves. yoyou' g g thebullish bond maet view and the yields looook like they have f furerer tgo. stocksksrere bearish. base metalals rololngngover. gold againstomome the othehe---- tre's aloloof ways to play ts butyoyohave to veve t trend right a athis corrrrecononas further to go fore we lookor the turn. >> how mucuch othis trend started becausehahat employment rert last week was no w wha people w we e hong for? >> well, i'l'll b ntroversial.
absolutely nothining. >> really?? >> zezero this mararketuturn in may and juju.. the warning signs were ththe. all thee data hasonone is confim a trendndhahat'already been in place. itanan speed up it can sww it dowown but it will not c cnge the -- >> s so ee market's discounting mechanism maybe fofor ee data th w wgot. every singleday. >ororn kock. hehe jns us evereryeek for the kotick icick by tick."." 'v've t about ten mites before thehe csisi bell. the e w w jos industrial average s hovering around the e fl line, and the e g g isn the wrong plplacfofome right now, scott. over t to u.u. > t e eney sector a a big winner today en though oil prices are stillnder pressure.. nd out what's gogoin on and whether this e eneyy rally can lastst. that's when we comomririghback. ♪
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e bebesterforming groups.s. it too is o off of e earer high tefinitely strong i in k kin of little changed meandering marketplace herereododay but ifif yook at t the big picture here in t thi forkn n th roro s sto the reality i i that thmamass decline --hehey' syededup. eyey'rboth down we'll s s roughly 15% sincecehe june 1th high in the marketplace. so they'y' b bot weaeakedd to te same level, and t ty've bnn movivi a almt in tandemmuntil today, when wewectctlly sesee ts outperformance and a widesprered outptpfoformce ininhehe enerergy so let's g g inside energy and nd out just what ththe ckcks ining here. it's the best da for the engyy index, if you u wi, , two weeks. brbroababad rally. erery sininglember of thee enengy index tradiding higherra last check.. anand en there's also a binge of buys out there everyry morning l weekek long, i've beenoming out
and sayayg g th one is upgraded, stern ee with a half dozen buys this mnining weweawaw deutsche bankutting some names on thehohorterm buy st. any numberer o firms have been ttttomfishing, bubu o on valuation, upgraradeinin eergy. i've t tri t toake a big deal t of this to catch your tetentn and sayingouou know, what there's going t tcocome point when t theelelguered enener s secr is going to start getting someme bss and people ae gogog g totep in therendnd we've seen it. so if we take a a look att some e winners here tayay check it ouout. cabot,t, sohwest, pioneer,r, ensco, and the nioiona oilwell jujusto name a fe mimielle? >> p poomamatt ming up next, wrere coming right back w witthth closing countdown. scotott? >> and after llll we'll tell what you kind of impact t th recent wave ofof cerer aacks on ththgogovement and private bubuness could mean for yoyour investments. psps
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d the thing is, the ototrr vestment firms know it. but they d ditit away. and ththa' just not fair or ststrahtht-fward. td a ametrtrad indedendnden is the spirit that drivivesmemeca's most successssll vestors. ok. welcome back to theheloor of the new york stock exchangnge. time now for the closingng countdown. th're getting ready to closese it up. 's's gng to be a dogfighto o the finish.. stocks have been fluluuauating beeeee positive andd negative territory throrougututhe last hohourr r so right now w eedodow nes industrialal arara in negative teterrory by about seven poiois. technolology standout toy. fifincncia and energy cctainly. look, the day began with etett
go s stiment given what we heard fromlcoa afterhehe bell yesterday, kicicngngff eninis s seasonon whh a better-thahan-pepect report. re, it posted aloss, b i i was lss than expected. and certainly oilemains very ch infocus. that six-day losing g rereak mimi to an end tay, albeit barely. l is trarangng above $6$6 a barrel but for a a brief te today y th trade didid g below 60 it was trading a a 59 and chaha for a ile. dodoagagai down a abo 4 4 1/2 poinin.. i mentiononed some of the standoutsesides ergrg beingg some of f e e fincial names and soson tech the banking index up 1 1/2% ttay. googog, , m, and amazonmong th leaders from the t thnhnoly standpdpoi.. now the attetentn n rely starts to turn to nextt week. continued eaearngs. at do those financials havave t say? w wilbe focused on those financial stocks and thohosethtr earninings andnd of course thos continued auctioio f frothe treaeasu.. the bell's goioi toring. michelle ruso-cabrera will pipi you up after the breaeak.