tv Closing Bell CNBC July 16, 2012 3:00pm-4:00pm EDT
you know why? everybody is worried about europe. get the headline. people do too much reading. there is a lesson heeshg don't read. >> video games and put your feet up. don't do anything. thanks for watching "street signs." as long as it is "street signs" you are watching. "closing bell" is next. hi, everybody. good afternoon. welcome to "closing bell." i'm mario bartiromo. anything but lucky sevens for the dow industrials. >> i'm scott walker in for bill griffeth. last time that's happened, seven straight down mondays, you have to go all the way back to the spring of 2002. worries about the economy giving investors a reason to do a little profit taking after friday's big rally on wall street. take a look at where we stand now on the street. as we said, one hour to go. industrials down by 30 points. retail sales were very weak today.
that certainly was a disappointment. s&p 500 down as is the nasdaq. route now. maybe they are waiting on bernanke tomorrow. market has not moved all that much. >> earnings out this morning. citi among the bank stocks which are on the move today on the upside. "closing bell" exchange now where we will look at this market. >> we have bob pisani, rick santelli. josh brown of fusion analytics. paul shatz of heritage capital. oh. bob -- you have been on the floor all day today talking to trade traders. the market has not done all that much in the last couple of hours. retail sales, though, were very disappoint. >> worries about china slowing down. i think the market is holding up very well considering the concerns out there. two things i would say is number one, really helps that citi, wells fargo and jpmorgan came in all right and no disasters. number two, i just think there is an awful lot of faith in central bank policy. there is a lot of qe3'ers out
there waiting for signs from mr. bernanke. if you look at what's moving here money still going into anything that has a yield. utilities are at new high. it can go either way now. >> yeah. really could. it is a great -- let me get with you, josh brown. what do you think this market is waiting for? sit bernanke that's most important to provide a catalyst here? do you think it is the second-quarter earnings which, of course, will pick up pretty good this week and into next? >> maria, it feels as though we are all operating under the shadow of the next shoe to drop. i can't tell you how many e-mails i have gotten from colleagues and clients the past week trying to figure out we all know something big coming. what is going to be the driver? sit going to be a slew of disappointing earnings? maybe bernanke's comments tomorrow don't deliver what the mark wants to hear. there's just so many things it feels like that can go wrong. and this is i really tough moment because most people who allocate capital for a living are trailing the s&p year to date. the reason for that is most of
the s&p's year to date gain comes from apple. most stocks have not done nearly as well as apple has done. it is so big. people are forced to almost stay in the game more so than they would like to. i think that's why we are see thing pattern of mondays, little bit of a give-up. by the end of the week we have tepid friday rallies. people are saying i got to the do something. >> right. rick, if the next shoe is to drop, as josh brown suggests that it might or at least throws out the thought that people think it might, where does that take rates? we had a guy on the halftime show today that -- i'm sure you know well. he says 125 on the ten-year. gardeny kaminski says one. >> i'm probably going with gary on this one. i see a french two-we are note. seven basis points. when i see a swiss five-year note yield negative and the entire curve in front of that more highly negative, close to negative 40 basis points on their two-year, i -- i think that's the only conclusion you
can draw. now, granted, one of the rushes for some of these short maturities inure subpoena they are not paying a rate on the deposits and maybe the u.s. central bank may mirror that if you look at our would-year note, it yields really falling rather precipitously the last several weeks as well. i will tell you, these numbers like retail sales, if you are objective and not afraid to say it, these are getting the recessionary type numbers and that's all there is to. >> it tough out there. let me talk to you, paul in terms of allocating capital. we had the -- couple of the banks reporting earnings. what's your take on the banks? want on to put new monday why you to work here? >> the banks are not trading poorly. i -- they remain one of the most hated sectors in investments in the world. they are not trading that poorly. you know, we haven't touched the financial institution or banks since '06. i'm not going to touch it here because i don't think you are properly rewarded. you have to stay with what's working. we have been long.
strap also. long utilities and re ties. long bio tech and health care. i think you have to stick with the non-sexy, boring, stodgy sectors because the downside risk isn't as great as the other sectors. and they are leading the market. it is not a healthy bull market advance for sure. we are in -- we are range bound by the april peak and the -- june lows and i think that's going to be the theme the rest of the summer. indices go nowhere. >> it is a trade on these financials. today news on restatement, jpmorgan continuing to see the impact of that trading loss. had a stocks turns around. even the makers that saw pretty good performance on the heels of the citi numbers have given up much of the gain at this point. >> i think -- i think what i want to point out, though, it seems very common these days. everyone -- myself included, i'm just as guilty. everyone is sticking to what's working and everyone is in these consumer defenses and utilities. utilities are now trading at a higher multiple than tech. certain -- at a certain point, we get completely carried away
and too much money is on one side of the ship. and i think what's interesting, though, is that we are not quite there yet. especially when you have so many people believing that the treasury yields gets closer to one. people are going to keep plowing into these dividend names. i can't tell you when that trend ends. but what i can tell you is it is getting crazy. >> has there been any drop in high yield funds? >> money still flows. >> no drop. >> consider, guys, the week that we are -- facing here. you have bernanke tomorrow and on the hill and then a slew of earnings reports from some of the biggest companies around in a variety of sectors. if you are looking for a catalyst, either to go higher or lower, you are likely going to get it this week. >> yeah. you have -- intel, ibm, pnc, microsoft, verizon. overall, paul and -- josh, the -- people with money in the market here, are there companies out there this week you think will act as catalyst important the broader market?
intel, goldman sachs, you have black rock, pnc, ibm, verizon, microsoft, google, xerox, ge on friday. what's the one we need to pay closest attention to? >> the next couple of -- this week, neck week, week after is the meat of earnings season. the biggest disappointment is everyone may be hanging their hat on some kind of catalyst right mere. i don't see it. i think it is going to be split. while earnings sentiment is so beaten down and negative, individual investor sentiment isn't. you are stuck in this range. i don't think anyone will the companies will bust us out of the range. after the conventions, i don't think is coming out of europe significant or bernanke. i think after the convention, in a couple of months, we will bust out of the range to both sides. i think -- right now shall one of the few times you are in a range bound market which normally happens in an election summer. >> i agree with that. i think that if you don't have to trade right now, you probably
shouldn't because reilly, we are on the knife's edge between recession and sluggish recovery. we are right there. and you really have to just flip a coin at this point. so i think if you don't have to trade, really very little to -- >> ge's comments on the global economy on friday is going to be the most important thing because the third and fourth quarters are going to be the key we are expecting hockey puck kind of movement in the fourth quarter foreignerings. right now, i doesn't look like it is happening. >> great point to make. thank you for that. sticking your neck out on that. bob pass an write. thank you. we appreciate your time and we will see you soon. pressure for change is mounting. procter & gamble last week. bill ackman brought a huge stake and will likely push for shake-up. procter & gamble is making its own moves to deal with this situation. >> p&g some say making changes is like the classic cliche of
trying to turn the titanic p it seems like the iceberg is ringing loud in cincinnati. part of it, of course, is what it represents for mr. ackman. it is also the board and other investors unhappy with the stock. take a look at the chart. it has the same yield as kimberly clark. but it has been crushed in comparison. kimberly clark, 27% in the last year. p&g flat. their problems begin with emerging market exposure three years ago. seemed like good idea. now the mark receipts slowing and dollar is strong. that's not a good thing. procter raised prices in the last year. competitornot follow. company lost share. analyst i spoke to today also talked about the cost-cutting plan unveiled this winter. consensus, little too late. we will see you due to respond and save his job. there are two business units that could get sold. duracell batteries could fetch $3 billion. im's pet food about $4 billion. i'm also told cost cut king not
come at the expense of eps growth. this would be a bit after risky strategy. also, duracell would need to find a buyer assuming could you find one. >> all right. brian shactman for us. we have about 50 minutes to go on the day on wall street. we are holding in the reins. s&p barely negative. nasdaq is down as well by about nine. >> fight over taxes in the fiscal cliff, just getting started here on this busy edition of "closing bell." stay with us. >> coming up, is china better at capitalism than we are? how china is tweaking taxes to lure in foreign money. what we can learn from this rule. plus, the treasury department slamming a plan to cut funding for wall street watchdogs. where was the government when other recent scandals slipped through the cracks? we will dig into that debate. and view from the hill.
senator richard shelby weighs in on the cincinnati banking committee's planned investigation into the rate f fixing scandal. the fallout continues. you saw it here and only here. >> you are under oath. i'm serious. you are on national tv. >> i'm not under oath for and you i'm not in your courtroom. you are on my show. thank you very much for joining us, ellioiot spitzer. >> mixing it up with eliot spitzer. the latest wrinkle on this contentious appearance later on the "closing bell." this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.
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welcome back. right to the market. brian shactman on super value. >> take a look at an intraday chart. huge spike on already 2 1/2 times volume on this stock. "wall street journal" reporting that they are setting up financial information to probable suit or equity names. krtvg. recall last week they did higher adviser to explore such an
option. back to you. >> thank you so much. final stretch here. 45 minutes until the trading session ends with the closing bell. quick market check on the dow industrials. things have been stabilizing. dow on pace important the seventh consecutive decline for a monday. this time on the heels of a surprised decline in retail sales last month. right now have you the dow industrials down 32 points. quarter of a percent. we are coming off of an 87-point decline. well off of the lows of the day. that is the -- with this industrials and consumer discretionary, hit its best level in a week and a half. should point tout financials are mixed to higher. >> check this out. is communist china better at capitalism than we are? well, the country is now offering a sweetheart deal to foreign companies. cutting taxes by half on profits taken outside of the country. it is all part of an evident to get the companies to create jobs in china. >> sounds like it makes sense.
peter navarro says china is heating our lunch when it comes to make good business decisions and should take note. progressive policy's michael mandel does not think america can go as far as china does in this department. had is not brain surgery, right? make an environment that's favorable business so business can create more jobs. >> yeah. let's break it down. the u.s. does a really good job of pushing our factories offshore lou onerous tax and trade policies. china has a better job pulling them with the variety of policies. it is three strikes against the american workers. take the corporate tax rate. 40% here in the u.s. highest in the world. china is less than 20%. if you move a factory from peoria to shanghai, we get an immediate tax break. secondly, they have this illegal system of export cash and american people company goes over to china. sells at below cost into the u.s. loses money on the face of it.
then they get an export tax rebate check and turn a profit. number three, the thing that really frosts me is their super -- dutch in for research and development, we have seen a tsunami of research and development from america go to china and that goes to china, the jobs go with it. really, the -- you know, it is -- the -- to me the the issue of the twegt election. if the president obama and mitt romney can make the connection between the misery in ohio and the failed tax and trade policy -- >> peter, you know, i agree with a lot of what you say but this there is a big difference between china and the u.s. which is china has a first world bank sector, third world financial sector and a communist government. in the end the difference between the u.s. and china has to do with the quality of our government and democracy versus communi communism. in the long run, you know, our -- what we have to -- what we have to build on is we have to build on our creativity and our ability of foster our
growth and incentives here. both by less regulation but also by sort of boosting our investment in this country from the government. okay. if you think about what china is doing as simply running a capitalist economy, capitalism is not just about the market but about the government as well. we have to actually focus our government on incentives and creativity. >> as you say that, though, this is a government at least current administration that wants to
raise taxes. >> current administration is getting more and more focused on manufacturing. it is getting more and more focused on giving incentives to r and ask d and investment in this country. this is what i care about. >> where -- >> if you think about what the -- what the effects of deficit cutting is going to be, from the republicans, it is going to be cuts to r&d and cuts to human -- >> wait. back it up. where are the payroll? where are they? >> here is the point. you look at just the corporate tax rate, it is 40%. and in china, it is 15% to 20%. right there, we are not hearing obama talk about lowering that. the obama care will add 3% to that. illegal exports -- >> what happen zblashs mi-- >> you are making a good point about focusing on negative -- >> one at a time. one at a time. >> going to china because they are doing -- not capitalism but
mercantilism better than we are. >> they are doing -- exactly right. they are not doing capitalism. we what we have to do is capitalism based on investment in the u.s. >> you don't understand. everything we are doing is pushing our manufacturing and our r&d offshore. the idea -- one thing i heard that freaked me out here, you said the government has to spend more. the heck it does. we immediate the corporate sector to spend money on this -- >> michael, i'm going -- let me judgment in and ask you a question. let me judgment in and ask you a question. how do we get beyond the perception that the u.s. is a difficult place to do business. that opinion coming from some of the very ceos that president obama has assembled to give him insight and advice on his corporate policies. >> you don't -- >> steve jobs made that -- steve -- let me finish. steve jobs made that a big point. tom chambers sitting next to president obama himself talking about some of the policies such
as the repatriotism of corporate profits. >> you don't fix that problem by becoming more like china. okay. s that the first moss important thing. choice china -- >> they are become morgue like us. they are becoming more what we used to be. >> they have the -- >> hang on. china has created basically a perfect climate for apple and ge and caterpillar and cummings and honeywell. >> that's not -- peter, that's not right. >> there are -- >> it hasn't created a perfect climate. are you saying a perfect climate is having -- >> what are you trying to say? michael, what are you trying to say? final word here. >> what you have to realize is that -- there are times when sort of having authoritarian government seems like it has a better economy. where we have -- we have here is a combination of democratic government which means we have to find the right balance here. and the right balance here means having less regulation but also may mean having more government
stepping in and boosting innovation as well. don't tell me -- >> we are looking. >> disagree with all of that. >> i don't know how much time we have to keep looking for that mountain. >> 2012 presidential election, maria. this is going to be the defining moment. in ohio. >> all right, guys. >> peter, michael. thank you so much. we appreciate your time tonight. that was a heated debate. lots of opinions. like to hear that kind of passion. 40 minutes before the closing bell sounds for the day. a market that's lower. 30 points on the dow. nasd nasdaq, also under pressure. >> talked a lot about earnings that are straight ahead. will coca-cola shares pop or fizz when it releases its numbers first thing tomorrow morning? coca-cola in focus on talking numbers. >> more heat in washington. this time over proposed budget guts for the securities and exchange commission. as if these guys haven't cut enough. do the agencies need more funding or just better cops? [ male announcer ] if you have to take care of legal matters.
stocks may be down but oil continues attorney general higher in today's trading session. cnbc's sharon eppersons that latest. >> scott, that report we brought you earlier this afternoon about a u.s. navy vessel firing on a small boat, the uae. that's something that traders were following throughout the afternoon. and contributed, they said, to the rally we saw in oil prices. add to that the weaker dollar and expiration we saw in the market.
we did see a nice pop in oil futures. but we saw a greater pump by some measure in gasoline futures. you now at a two-month high. prices climb in the futures market likely going to see higher price was the pumps. some analysts say forget about the $3 gasoline. we may not see that for the national average this summer. >> thank you so much. we are watching coca-cola today. certainly investors focused on the name. making their final decision to buy or sell the stock ahead of the company 'earnings tomorrow. first thing in the morning. world's largest soft drink maker, is it time for a pop or fizz? let's talk numbers. technicals, carter wirth, chief market with oppenheimer. good to have you on the program. thanks so much for joining us. will he me start with you. >> unexciting stock. perfectly good uptrend in and presume sings it continues. here's a daily chart over one
year. and what jumps to mind is how well define ad trend it is. it has been tracking this trend line perfectly well. steady move. same is on the five-year. you look at a longer term chart. sin it is -- lows in '09 with all stocks, it has been in a general uptrend as well. parallel lines. at some point coke a cole a, all-time high. chart going back to 1987. the coke -- high of 9. here we are at 76, 77. presumption is we are working towards that level. >> sounds like -- this steadiness is a positive. you -- >> not dynamic. it is a market related stock. up more than on the sector. good stock is likely to persist in this uptrend. >> you would buy it. >> let's talk fundamentals here. what do you want to hear tomorrow on the call when they report their numbers? >> i think coke has shown us really good results over the last several quarters. investors focus on volume growth and as a beverage company.
they are tracking 3% to 4% volume on a quarterly basis. long-term growth targets. they have actually exceeded those targets. we are expecting 3% for this quarter. issue here is that the u.s. is somewhat flatish. 1% growth last quarter. europe has been weak. what we are seeing upside from is emerging markets. particularly when we focus on asia, latin america and africa. we are delivering very good volume growth results. that's what we look for in the third quarter. >> juan to buy it as well on the fundamental side. >> yes, we are recommending the stock. >> we will be watching this in. no problem was the dollar and the slowdown in the rest of the world we are seeing. >> it does. >> carter, thank you so much. we will be watching coca-cola tomorrow. >> thanks so much. 32 points to the downside. nasdaq, negative by 7.25. s&p 500 down by about 2 points with 30 minutes to go in this trading day. wall street hit by a string of recent scandals. with budget cuts at our nation's
financial watchdogs even matter? we will shine the light on both sides of that issue. speaking of scandals, ranking republican on the senate banking committee plans to launch a probe of the interest rate rigging scandal. richard shelby going one on one with maria after the bell. fallout from maria's fiery interview with former new york attorney general eliot spitzer on friday. here's a little snippet of that. >> you are under oath now. i'm serious with you. >> i am not under oath for you. i am not in your courtroom. you are on my show. thank you very much for joining us, eliot spitzer. >> wow. you want to read the rest of this one or what? >> you got the time, you've got the heat and then some. you are watching cnbc. tdd# 1-800-345-2550 the 5-day moving average just crossed above the 20. tdd# 1-800-345-2550 we're hitting new highs.
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citigroup, jpmorgan, wells fargo came in okay. citi was good number this morning. jpmorgan taking profits after having a nice move up last week. you can look at the refiners like valero and marathon, all of them on the upside today. what's hurt sing big industrial names. tied to the global economy. that's where we were talking earlier, general electric, most important name this week. i want to hear what they say about the global economy on friday because the china and asia slowdown as a concern. finally, not to bring up europe or getting anybody into a bad mood. deutsche bank hit a new low for the year today. that got a lot of commentary on the trading desk. talking about the biggest bank in the biggest and best performing economy in europe now. back to you. >> good point. are we on the cusp of a bear market? we may be if you follow the so-called ultimate death cross. >> that's from the 15-month
moving average falls below the 200-month moving average. it is not a good thing for the bulls. the s&p 500 is now on the verge of hitting that mark and last time we have come this close was back in 1978. it is with that into context, japan suffered a death cross in 1988. and 14 years later we are still in the firm embrace of the bear. >> is it time to sell at these levels? with us today, steve nemoth, asset management. along with chris ressler from needham funds. now a lot of attention being paid to the technical levels. okay. have you this ultd mate death cross. though carter wirth at oppenheimer says if you can read the technicalities, 1400-plus -- >> just said that. >> on the s&p is not far away. which is it? >> it is kind of a battle of the technicians. about a month ago all the technicians were positive. they were generally right. but now i'm getting a lot of data, lot of research from the
sell side on more technical, more negative technical outlook. i hope carter is right. actually i saw an e-mail an hour before i came over here that talked about the statistics that you showed. it is -- it is shaping up much like last year at the end of july where august, the market tanks. i think that in -- environment where earnings, revisions are coming down, and corporate earnings are weak for the first time in two years, i would play it a little cautious for the next two, three weeks. >> sounds like you are a sell other this. >> raised cash couple of months ago. right thing to do. market has been weak. we would keep our pattern dry another three, four weeks. >> chris, how do you see the rest of the summer and year? >> i agree. i think that we are in for a difficult earnings season. i think it will be much more about the guidance. companies don't need to go out on a limb and put big number up for the guide. we have been out visiting companies. i think that -- things are seasonally slow. not terrible. i don't think we are going off a cliff fundamentally in the economy. i would be cautious here. we have been raising our short
level in our portfolios. as well as maintaining cash position which we find to be strategic. at times when earnings come around and we can pick some names off. >> wait a minute. either the notes are wrong or you are not telling the full story here. because this says that you see a lot of opportunity out there. and you are looking at things to pick up. you sound negative. and i think -- next few weeks when we get through earnings, that's going to be the opportunity. i'm not saying today, i would be -- a big buyer of many stocks. but i think the next would weeks it is going to be real interesting in the earnings season. >> what are you going to look to buy? i mean, it says here you like semi conductors. talking about texas instruments downgraded today. last week amd had a warning. applied materials had warning as well. there is a lot of concern in tech. global growth is slowing. why do you see opportunity where others say run for the doors? >> we spent the week last week in san francisco and there was some concern but i think that you have a secular growth story
where you are moving smaller -- have you the 450 millimeter investment into asml by intel. there is positive trends in the area. you have to buy them right and be patient and as a long-term investor that's what we try to do. >> i can't imagine we don't get a st. paul ahead of microsoft. why am you going to upgrade when i know the operating system isn't there yet? that's just very specific to technology. let me get your take on the earnings estimates right now. what needs to come down further. are there groups out there that you can hide in while the market comes down? and -- where the estimates have already come as far as they are going to go. do you think across the board estimates have to keep coming down? not priced into the market. >> it is interesting in sectors such as industrials and in energy and materials, you are seeing huge estimate cuts on the upcoming quarter. 25% to 30%. means have not come down because analysts have not pulled their numbers down. year numbers have not come down a lot. i think that you get a situation
where companies report earnings and everyone brings that your quarterly -- next quarterly estimate down and revises next year's earnings down. i think two-thirds of that is in stock prices now. i think the stocks can't work with earning revisions coming ahead of us. >> all right. guys, thanks so much. talk to you again soon. we have 20 minutes to go before the bell rings. dow down by 47 points. nasdaq s&p also negative. >> one scandal after the next. scandals hitting wall street. will budget cuts and watchdogs matter? >> after the bell, maria speaks with senator richard shelby, ranking republican on the banking committee about the interest rate rigging scandal and the senate's upcoming investigation. shelby turned up the heat today. and he's going to tell maria exactly why. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky
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that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense. technology under pressure. >> the tech heavy nasdaq is off the session lows right now. it does look as if we are going to close the day lower. that would make six of the last seven days lower down here for the nasdaq composite. when you look at the ebay is the biggest lagger when it comes to the nasdaq. weighing down tin decks. it is somewhat offset by apple
on the other side. but there is a number of names in focus here today on the upside. we know human genome sciences are higher today because it is being acquired by glaxo. right now market looking awfully optimistic for that. >> thank you. >> treasury department get something the middle of the budget battle. check out this blog post on the treasury's website today. it is slamming gop lawmakers efforts to cut back president obama's proposed funding increase for the securities and exchange commission and cftc. >> those lawmakers say the agency needs to maximize the resources they already have. former sec enforcement attorney philip kinda says additional funds are necessary as technology keeps wall street a step ahead. chris, former sec enforcement attorney, says throwing more money at the agencies won't make them do a better job.
philip, let me begin with you. so you say additional funds are necessary. yet, markopolis gift wrapped it to the sec and could have easily figured out the global stuff if there was ever -- a reliable cop on the beat. so -- money doesn't give you a brain or more insight into what's going on. why is money the answer? >> there are two things. you are exactly right about madoff. i wish i was still with the sec and handed that file. we need a more effective sec and an sec that needs to be able to keep up with the technologies, strategies, that have become far more sophisticate order wall street, put aside enforcement and think about markets, surveillance, high frequency trading. they don't have the tools to do it now. that's where money comes in. problem on enforce many any time you have a government agency, not like you can cut half the roster and move on and get more pitching mid season. they have to retrain people and add more people. that's the challenge. >> that is the challenge. let me push back on your
argument that it is not necessarily just money but they need to do their jobs better. i mean, it does you a pier that after dodd/frank, the sec -- its responsibility widened quite a bit including hedge funds and private equity and -- they do need more people. in order to do their job effectively. do you not buy into that? >> well, it is clear that the sec has a big job to do. it is clear that the sec has important mandate. but you have to put this thing in perspective on a house tore cal level. 20 years ago the sec's budget was $225 million. now currently, it is over $1.3 billion. you look at that, you see that there's -- more than a sixfold increase in your -- you see the sk still isn't getting the job done. this extra level of funding will
add to the depth of the seg. it will expand its capabilities. but when you look at how soft advertise indicated the markets are, how much money investment firm are pouring intoo heightened data capabilities, you see that this additional level of funding doesn't cut it. the sec is still not going to be able to keep pace with the big players in the financial markets. >> what about that? i mean, let's talk a little more about that. because that's one of the more important points. you know, philip, this group mixed so much of the complexity that some of the products out there are -- wall street firms were, you know, being sold to people who also had no idea. so -- you know, why does more money at the problem really matter here if the people they have are not equipped? >> well, that's right. there are two problems. if i send somebody into combat i need to make sure they have the right tools with it. right? need the flak jackets and right weapons, what have you.
that's on -- you know, whether it is the hill or the president in terms of funding but then in terms of making it happen, that's exactly right. they need to get the job done. and that's been the challenge. that, you know 20, years ago we were a t-plus 3 in terms of settlement. now it is -- it is a whole new world. that they have to keep up with and we have to give the sec the tools to do that. what the sec needs to get back and lead with enforcement is getting our trust back, confidence back, you know what, ball comes to them and pick it up and make the out. they haven't done that yet. >> christopher, what about the point that just a mere makeup of the agencies is all wrong. one of our colleague makes the point that the people who are on the beat, cops themselves are the wrong people to be on the beat to begin with you should look to take people who are -- newly retired people from various agencies and been on the street before, who know what they are looking for and could go into certain instances and immediately figure out there's some sort of baloney going on.
>> well, i think that's a great idea. the -- sec could benefit greatly. i practice quite often in -- the securities area and expert witnesses, retired branch office managers who can provide that analytical insight are incredibly valuable. and if you want to think about that situation, and -- continue that line of thought, you have to realize the sec has a lot of new green inexperienced attorneys by keeping their attorneys a little bit longer. the sec could have a lot more brain power also and that extra brain power could harness the highened levels of understanding that are possessed by these retired market professionals. >> right. >> let me add something here. when i was at the sec in the golden age we would like to say, we had market surveillance unit that we thought was second to none. people that had been on the
street and knew up from down and could not just read balance sheets and training records. as the move went towards the internet, there was more of a focus there and the -- slew of comments that came in, you can't imagine how many e-mails every day the agency gets. the focus went away from -- people who are hard-core knowledgeable and -- that's what they need. absolutely. you can't -- you can't take kids -- >> more money or whether it just means ensuring these people trained effectively to carry out the nobody. it may not necessarily be more money but doing the job and training these guys properly. thank you very much. appreciate your time tonight. >> we will see you soon. >> ten minutes before the closing bell sounds for the day. worsening as we approach the close. down 50 5 5 points on the industrial average. >> new data showing u.s. companies scaling back plans to hire workers. and the news gets worse from there. details next. ♪
that we go to brian shactman at the market flash desk. >> thanks, scott. take a look at shares. lot of action in the last 20 muns or so. "wall street journal" headline basically saying they expect substantial loss necessary europe the rest of the year. lot of analyst expected losses. maybe the trading to the downside has to do with that word substantial. phil lebeau is working the phones out of this system. more information that he will bring it to you. 1.5%. >> not a tremendous surprise given what we heard from the automakers including ford lately and the tremendous problem they are all having over in europe. maybe this is a job for superman. >> maybe. >> more discouraging news on the jobs front. 23% of businesses plan to add staff over the next six months according to the june various by the national association for business economics. >> nearly half of the firm's polled say they are seeing sales decline due to your open's debt crisis. greater impact is being felt by manufacturers.
nearly four of those five reporting a decline. >> shocking that companies are struggling to get the wherewithal to hire people. they are sitting on tons of cash but yet, fiscal cliff is looming. and doesn't seem to be getting anywhere close to a solution. headline in "the washington post" today says that democrats threaten to go over fiscal cliff if gop fails to raise taxes. >> once again, it is this fight to the end, tooth and nail, that they will not come to an agreement. everybody else's lives hang in the balance. unemployment problem in the united states. we have europe, complete mess. that's, of course, selling 16% of exports too europe and got a regulatory environment that is an open question. if you were a ceo would you hire new people to the -- paw roll right now? knowing that you have to -- give them benefits and salary and have you no idea what your tax expenses will look like. no idea what your regulatory expense will look like. you don't know which agencies will oversee you. when did we put dodd/frank
together? still righting the rules. it is crazy. >> no matter what political party you claim to be affiliated with or support it doesn't make a difference. either democrat or republican. get in a room and figure out the fiscal cliff before the end of the year or we will have no clarity. there is no clarity on what earnings are going to be. no clarity on whether china will have a soft or hard land. >> the spending programs, when they go away when they expire at the end of the year, defense companies, lot of other federal programs that -- are funded by government, they are going to go away. companies will be forced to cut jobs. you think 8% of the country unemployed now is bad. what happens when all those spending programs go away? >> i would only say the only positive i could take there this is as much money these companies are sitting on, when they do get around to hiring people, it is likely to be an explosion of hiring because they are probably dying to hire people if you give them clarity. >> will they do it if president obama gets re-elected? >> big question. >> all right.
>> closing countdown after this short break. >> for the bell. stick around. maria's one-on-one interview with senator richard shelby. she is the ranking -- she. he is the ranking republican. she is ranking on this desk. but he the ranking republican on the senate banking committee which is on the verge of launching a probe of the interest rate rigging scandal. >> plus, more fallout from my heated interview on friday with eliot spitzer. let's just say we still agree to disagree. you used the word thought. that's the point. >> that's right. >> that's the point. you color everybody else's opinion. >> here is the federal court opinion. want to read it? if you are one of the millions of men who have used androgel 1%, there's big news.
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we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? welcome back to the floor of the new york stock exchange. time for the closing countdown. i will take you through what happened today. we are bogey to do it quickly. retail sales were disappointing. we are looking at one of the big reasons we are looking at a seventh straight down monday. it is a mixed picture. make month mistake. the numbers were bad. certainly the street did not take it all that well. global growth names, certainly see them slowing today. in terms of what their stocks are doing. take a look at the industrial
names. whether it is general electric, they have a downgrade today, cat peller, csx or deere. take a look at how the street sees it outer loop citi is ticking to the upside. mixed picture. jp and bank of america, downside. goldman reports earnings tomorrow. keep a close eye on that. facebook also one to watch today. stock was down 8%. 28-27 is where the stock sits. no real news. didn't need it. stock down. 8%. let's walk over to arthur cashin jr. senior executive privilege governor on the floor of the floyng. tomorrow bernanke's big. what else will you be watching? >> primarily bernanke. today the dow is pulled around like a puppy on a tether by the dollar. the dxy index every tick was reflected in the dow. europe is still driving the bus. >> that's what we will be watching. keep an eye on the euro and dollar. >> we are ready to -- extra cash. with our cash, we ar