> > 's 4:0:00 m.m. o wall reet. do you k knowhwhe your meyey ? welcome toththe osing bell." i'i'm chchle caruso-cabrbrerini fo m mia rtrtiro. here's w whawewee following at the close. ocks are trading in a narrow range today as strength in financial stocks w w offset by weweakssss ihealth care. a mixed joblesss clms repeptt anand akak june same-storesasal fifigus s so weighed on the market. l ending a s-day losing streak, though,, crude sing 27 cents to closee at $60.41 a baelel. here's a loooo at how we fisisd ththe yy o wall strtrt.t. w w a ueueak. scott cacaeded i a dogfight, an tatake loooo the dow jones industrial average r rig n now closing wiwi a a gn of oh, 2 2 3 inints ditto o r r ths&p 500. ananthe nasdaq ghgherby fivee inin. let's geget rere otoday's action. rtha coombs isur eye on thee floor atthth new york stock k exchange. berthaha,hyhy so much decisiveness? > ba nose. yeah, you know, you jt talk to traders, and they sasa at this

point nobodydy kwsws how t this ee goingng there is verery chch tug of w w he trying to decide whihichwaw the gogornrnme isis gng to go, which waway isis maet needs to gogo. after what we hadhis spring asas far as the run-up.. so yououee seeining veryauautis trades, rangebound, as we saw daday,ith low volumeehere. the market today, the reel sales certainly y heeded somewhat. they weren't abysmal, they weren't great, b they do p poi the fact thaha consumers are price seititiv itit t thediscounters whodidi well.. and this earniniss seasoson the focus now is on raising the bar and looking for sosomeraractn as fafar t the top li. they know that companiesesan manage the bottom line w wit cot savingngs. take a look at cocoa. ststard off positive on a sitive note with that beat narrower t tn n excted loss. but its ututlo didn't really point to things imimprininall ththatuch and d dn'n't int to

top line growththanand at's what folks are wantiting to ss.. meanwhwhil w wle alcoa was lower th the weaker dollar,, mmmmity plays overall werere doing prettyty well. e steel players wereoing pretty welltayay u.s. s stend others haveeaid ththathehe started to see inntntors come down and icing come up there, so they mimighreport a little better. nancials of course are goioing to be reportining xtxt weekek. ldman sachs getting an upgrade today at b of merrillll lchch, and citi making somehahang in ththe suite. ned kelllly ee c is going take o on wider rresnsnsilities. ththeyroroug in eugene mcclain, whwho eded to head used to be ee vicechairman of merrill lynch and c.o.o. of f fddddieac. w w 's going to be thehe headff the cibabankunit. retailers, as ii menentieded, t discounters wewerehehe standout. t.j. mama, tjx, ping its guididan.. also one of thth few toost same-store salesesincrease. upup autut 11%. taet, though, misissi the same-store s seses mk, also boostitingtstsuidance. anand ssss tay at a histororic

high. 4% crcrse in same-e-orore les d boosting guidance a wewe. hardrd a anye else gave guidance as f far as w wtt sales are doi for their earnings. walmart noticeably sent beuse theyo longer give idance at al thhome builders w wer a ststanut as kbhome received an upgrade overt t edit suisse. antechnology waseaeay a strong point.. one e trereroday talking t to saying t t t thibobo chchnogy is they've got cash. u want toetet on theolks who can really ridee out the storm here. ibm a standout. intel andd broadcoco rising aftr it abandonedd its contested bidd for emulex. michelle, backck tyoyou. >> beha, thank you. here's a l looatattoday's'sthth business headlines. the labor dedertrtme reported initiall j jobss claims fell 52,000 last week to seasosonayy adjusted 565,000.0. th's muchetetr than econonisistsere expecting. e lowest levelslsininceanuary. still l a smsm number, though. thnumber of people contitiining to collect unememplmeme benefits jumped 159,000 t a record 6.88

mimilln.n. the commerce departmenent reports wholesalale inventories fell .8.8% in mama it is theninih straight m mon that inventories have flen. alalououghay's drop was smaller an expected. wholesale sales,s, mnwnwhi, rising b br r th e expted .2%. that i is e e rongest showing since february. d according torereie mac, the average inrate on 30-year rtrtges fell to 5.2%. it's the secondstraight wklkly decline e d d th lowest level home loan rates havav sn in x weeks. so today a federal judud clearing the way f forenenal motors to sell mosost its assets to a new company, seseing the stage for ththeauautoker's erernce from bankruptcy protection. cnbc's phil lebebeauisis in dett with all the test detailsls. ph?? >> michehee,e,final preparation are being m mad herett gm hehequarters for the compapanyo emerergerorom bankruptcy, this time tomorrow ithohoulbe out ofofhahapt 11protection just 399 days aftertt went into nkruptcy. rere'shat still needs to happen before gmgm comeme out o baruptcy. aederal bankruptcy jududge has stayed the sale ofsssss into

the new generara mors. ththat w wt the final processss that neeee to happen. pependg g an appeal. that is a prprodt t liility appeal that the judge today s sy hahas mimal chanceof stopping the process offeneralmotors, e new gm,merging from babankptcy. so w wnn that ppens, which shshou h hpen before midnight tonight,t, expect gm ceo fritzt henderson to then gigi a sisiss update. inacact, the p pssss conferences scscheled for tomorrow mornrngg at 00. updating how general otors, the w w gm, will be cchainin onof the big cchaes, weavav coirmed that g vicehahaman b b lutz, who w scheduled to retire at ththendndof thisye, well, he is no longerrereting as heduled. hes going to be taking a new le in the managemenenofof generaral motors.s. exexacy what he'll be doingng withinin t c comny has not been laidid o yet,utut we havealalke with folksks hee in detroit who are saying look for boboutz to play a role iththeew gm. and the biggesthahallge for mr. lutztz a all of t the executivesest t geral tors, ababiling sales. this is aaompany where t t market share has dippeddbelow %.%. s, this company i is geared t t

make moneyey t t sales rate inin this untry istt 10 m milon units. but they needo be doing more than justakingonon at 10 mimilln. we're going g toetet more detais tomorrow momorng. chchec out the blog al behindthewheel.cnbc.cocom r r re onon t b bighallenges facing general motors. but michelle, , stst 39 days a t generaral motors wenen into bankruptcy it t is prepared to emerge. yoyododon'get many second anans in life. gmssetetti one. michelle. and manyysasaid it couldn'tbeb dodonebut they're doingit. l l ght, phil. let's get more o on e markets ghghnow. er ruststabs oo foror c cent ininvemementtrategy at r ruslll investments.s. russ cocosticich ad of investments at barclaysys obal investors. guguysgood to see you. i look a at today's indecisive trade and then i l loot the onomic tata retail salalesglgly but notasas ugly as some peoplee wee excting. weekly unemployoyme f figes pretet hrendous, not as horrendous a apepeop weree expectctg.g. eric, how dodo y look that? ishehelass half full half empty? > wl, certainly the f ftt tht we'r're lklkg about the gsss

full at all is ceainly an improvement ovoverhehe binning ofofhehe yr. butyeah, it'ssbebeen a trend tht 'v've en economic data getththe tetef descent h has slowed.. the market hasas priced thatat . it ken calamamitouout of ayay, and that's what t we s s a lott thatalally from march th t te endff april. really whaha i it' doing withow is i it w wan to see recocove.. it actuauallwawantto see n lylyews get less bad, it w wan to see it s sta to get good and that's what the market's's re e waiting for.r. right now w eyey'rwaiting on earnings.. >> russ, you agree wh that? we'reaiting to see some a actll real i irorovent here?? and when are oing to get it do you think? > io aaeeee. i thinink 'v'v had the second d derivative trade. we've fndnd o the economy's t fallen off a cliff,wewe'r not going to b bacinin a great deesessi. you've h h a a rly that was stified back to the lolowsnn rcrch. the issue i is ee market looks rward but it doesn't l lk k th much forward a andhehehallenge isoioingo be the fact that we e have a lot of headwinds ill. wiwithunemploymement 9. that's close to a -year high. we've got a coumumer deleveraging whihichs s st reallyly bininni. so whilele io think t thaththe

economy willll improve a ando thk we'll see some positive nononal growth in the backck pt of the year, i iss going t to slow and steady recovery and m guess is the market rerefltsts that. erer,, ithe near tetermou brought up of courseararnis asas. one of t theosost dmatic that w have seen in years.s. hodo you think it's goioing to play out? is it goioi t to ovide a catalylysto o ve this market higher? > obalance i think it iss going to be aa catalyst t to le the market move igher. i think it'soioingto prove thaht coananiehave been a aee to manage the contraction vyy well. i really think, ththou, that the mamark in order to really mo,, it g goi to haveoo see economic news get to ththe positive se.e. that top line r revueuerowth mbmberas toimprprov a a the way y it g goi to iimpveve is te economy y ss to be e se t to growing. anand atat probably goingo hahaenen kindf late thirdd quartete early fourthuauaer, and ththathen i would expxptt to see some t tction. ruruss another bigevevt of thdaday s the 30-year auion. e government needed toto broro a lot o of m mon over a0 year period. l these fears about inflation.n. nobody was sure i iaa whole lot ofuyers would come in.

rick santelli rate td d plus. would you haveveououghthose 30-years today?? >> no, i wouldld not. d actually if i think k abtt the onee ast class i h hat rigt now, it's s s.s. tasuries. i'm amamaz t tt the auction went well as it did thihi week, but i don't think it g gs s on foveve the fact i is u'u'veot a3030 year -- - lessook at the 10ear for a moment pricece it's 3.,, 3.4%.. that's a pretty s sll margin t core i ilalati at 1%.%. and yoyorere oking at r rord supplies. yoyou' going to have a d defiti th y yeaof 1.85 trillion.. that's probabay y understated. th defefitit in 202010 o 1.4 trlilion that's proroblbly uererated. veven w expensive thehe ten-yeyeararare d the amount of supply coming out,, don't undedetatandhy people are buying it. >>uss, you told d w whayou hated.d. erik, giveveee ten seconds. something you like.. >> we actually, our r nanage are moving intntofinancials. ey're doing it in high-qualityy firms. they're doing the creditit rds. t t th're beginning to plplay >> w.w. financials.. l right.. that wouldldee green shootot i i evevereaeardone. thk k u, guys. >>hank you. >> president o oba i ieeeeti thth j-8 leleads s italy toy,y, whererhehe spoke whh climate

change.. cn's's sve sedgwickss in l'aquiuilaititalwith more. steve? reporter: hi, mhehee. ve good to see y y today. yeah, very i intesting day for presidentt amama. veryntnterting day for theheg-8 because thisiss s a y we open e doors to thehe restt of the world. the auststraanans'evin rudd was here, butut clcleayympmporntly was the g g a-5 as well, the ls of indndiahe likes of china, the likes of brazil, couountese that have done slilitltly t perhaps than theg-8 tstsf in this economic mamalae. ititas time when p psiside obama came forwardrd. he hosted the e enonomi forum, which was 17 of the worlrld' lalargt. and he h h had some succesesse partrt tayay. he gotome conciseovement saying yes we a are working towd some kind of copenhagag rereent. but hehe cldldn'get the developing nations, thechcheses, the indians, and brazilians to say yes, we definitely willl si upuporor tse limits that t thg-8 signs up to o on ee previous ddy bubuspspeang to a lot of f th kk ayers a a we have de e day througughoprogramming, thth'r'r very pleaease to seeee actuallye presidential lead d on again. they have been bememoangng the

fa thaunder thehe previous presidency w we stst w wenen't getting key adership for some ofof tse issues, wheheerer it b tradadealks, climate chchgege, whwhher it beconomic stimulus. talking onon smumus, ipopoketo bob ellick, who i is tosossf course o othe world bank basese in washington. he was saying iss jt too eaearlto start enacting stimulus, oror taking stimululut ofof t system and too premature as well. lking about perhapspuputtg more stimumulu in a second imulus package as wellll. world trade talklks w wel many think theoror wiet something in 2010 undnder u u.s leadership. ck to you. >>hahat cond stimulus,s,e'e're gogog to talk more aboutt ttt coming up laterrn the show. stevev d doe't it seem incredibly paternalisistifofonow develolopenanatis to say to the veloping nations y youknow, whwhatouou can't haveour dudurial revolution that's's going to raise theheivivin standards forr alall urureople becacauswewe d't like your poution? i mean, , ofououe if i were dia, if i were azil, if i rerechina, i would tell to o u see you lalate totoo. >> yeah. michelle, i i t tnk you've hi e nanailn the head. it's a pointhat i've thought about a lot o ove the last few

days a awell. d d think there's ananswer.. and i thinink i is a j jer mague moment.. and i think it's s shomeme the money. anand think if you tie thatat i with other tksks thatrere going in doha talks over here,, climatate c chae talks over her ybe if you cacanofoffe something on one side you'r're going get mething back on the other.r. anand thinknk the president wa very aware day that you've gogot to t thr money at the s suation t theeveloping nations andd then you might g get r reststs >> bribe t thesoso to speak. bubut if we just gavavthem good free trade t themimighcome along. good stuff. we're e ining discuss if aa second stimumuluisis rlly needed to fix the economyoror whether more government spspenngngill do rere hm than gogood then later, cacan the bacack to hool season save the rail industst f folwing jujune very weak same-stororsasale numbers at we t today?y? and which stotock if any,y, suld reililector? someme wanswerercocomi up. , , myriend, the grapes are very... sisier f fthills... - foothilllls,a.a. idaho. with fields of t f fint hops known to man. hahaested at just the ririghmomome, p pduce the perfect babalae e oflavor... anand freshment.

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ththe baba over whetherer a sendndtimulus, or a irird, i i you couount the bhh tax rebates isred hot debate. biionaire environmentalili warren b buftttt today s sai another papaagage uld beeeeede if a recoverery esest take hohod but the e rmrmerhairman of the ununl of economic a advers unrr president bush offered a fferent view intodayay op-ed t t "wall ststre j joual." sayingnghehe crent splan amomoke scscre for democrats to expand

gornment. popocycy dector for the aaflo. she believes anotherer package neneed. but roron insana t the street.cs market movers s rtrtfoo manager an cnbc contributor sayss the tata is premataturhe current plpl in factneneed to be rerkrked and this is acontinuation of a conversasaonon, dies and gegentmeme that i u uererstd got quite heededast week.k. >> oh, itit wa civil, i thohou. > it wawas vivi and heated.. could be the same ----ron, make your case. why do we not neeee a second d stimulus right n now >> wewe,,he first hasn't been spspen and there's been $787 billionpppprod for stimulus measures that i think couldld b puededp, as i said a cououe e days agag into a payroll wiwithlding tax holiday that could lasta a ye or wowo, it esesmmediately into the pocketetokoks workersrsf a ininco bbraet, ananitit wld more likelely s snt now that thsavings rate'e'bebeen plenished. e e hiest rate we've s see in the e s.s. is 11%. we're close to 7%. i think it wldld b wise t t ll thatat meyey forward and tt withholding taxes so t tha peope fefeel l litee bit more comfororblble at their paychecks are large enough t toupuppo them.

s smake the case. you think that wee do need a second plplan why? >> we aololely do.. and the problemmigig now is not sangs or the financial sector.. it's jobs. we have a areal jobs crisisis i thisiscotry. employers s arutting back on hours, wages are languishing, pepeop h havlost money in terms ofof t value of their homes. they can't go out an snd that ney right now until they get t decent jobs. anthat's what we need ananheher stimulus p pacge for to -- >>ututasn't the first smulus ckckag supposed to do that? > iwas supupsesed to crcrea 5 miionjobs. wewe'v already losos 6 million nce the recesesonon began. and another 2.3 million jobs should have beenen catated just because of polation grorowt w we' 8.8 million j job down fr wherer we ought to bebe a th p poi. so of course the firststtimulus wawas ryrymportant. it was necessary. it was on theeririt track. tt it wasn't bigigough. >> youou tnknk it'sororki right now? >> i do o thk k 'sworking. it's beginning to rkrk we'v've t t th tax cuts t tha a in p pla.. e unemployoyntnt iurance extensionsns a i in place. someme oththinfrastructure spding is getting out thth door.. but more will be ndeded cause

the collapse of the e ecomom is ormous and the collapspse particularly in n e e lar market. the jobs situation.n. >> ron insana.a. >> michelle, you know i don't digree with that assessment at all. think this s ishehe worst recession we've e enen since th 30s. what worries me a abo t t infrastrtrucrere snding the so-called shovel readyprojects th g govnors identified as totaling $18180 billilion o o $0 billion n stst yr we e han'n' spent nenear t thamuch on shohol rerey jobs yet so p peoeeren't gogoinback to work t tough that kind of f fisl stimululus. in a longer-terersesens as i sad the other day i wish thehe u.s. government w woupend a trtrliliondollars, i don't t ev care about e budget hhe, on ilding outut an eltrtrity grid th is modede,, that is 2121st ad 22ndndcentury, roads a bridges e e fine, but they don't move the ball rward. th would help createe new jo.. >> ron - -- >> let m m just disagree withh that foror ominute. i don't thinin this is a s smo screre f foremocrats e expdidi government. >>o, that would be healalth c ce anththeenergy bill a and everythihinglsls >> but wait, , wa, , wa, don't fofoetet -and listen, president bush and i got alonong jt fine. but he doubled thehe size of vernment while he was s officece. >> o y yh.

with repepubcacansike him we don't ndd democrats. agree. >> but ron, , a bighuhu of the bill was for thehelelectc grid, the smart gridid - >> t ty'y'reot spending nelyly ouough it's a trillion dodoarars do it nationwiwide that's the mininim b bilthat i'vevescussed.d. >> y you and i a agr o on this. i think that's a greatatidea. d i think there's t two different t thgsgshappening. onis we're an n. a e ecomic downturn, a vyy serious economic downturn, and the other is we e veven' investeted enougn our infrastrucucrere, clean erer, in good jobsbs a and so o and so forthanan both tse ththgsgs nd to happen and that's exactly whwhat second economici recocove p pkage could ddo. >hyhy n cut for corporations on their taxeses if they haveve lower t tax bill they could hire morere pple. you'd see a far faster rereaconn on their part forrhiring. >> well, they'r'r not going to hire morore opoplef they don'tt have any custstoms,s,nd they're not goingo o ha any c cusmeme untitil opopleave some good jojobs >> but that's e exaly my point. if you put in apayrollaxax lilida i've suggested. david cotuck hasecommended two years. a payayroax holiday wouldld g peopop t to sndnd. that c cheould be moree th 5% bigger every singngeeee for the

next 12 or 244 months. going into the back toto scol season, it's somethingng tyy could dodo imdidiely. yod feel it tomorroroifif they declared that holiday today. and it would be a bigororm of stimulus. >>ou know, i think p pplple have an enormrmouamamou of econonoc insecurirityowow even if they hahan'n't st their b,b,t could behahat they're seeing their health caree befits and their pepeioion cut ck on and their hourss cut baba, there's furloughs an so on. i'm nonot rereolks are going t take t tttoney and gogo out and end it, ron. > a ron, even if they don't go out and snd it, what are we trying to dodo rhtht now, recapitalize the bas?s? if p pplple ve that money it ends up innonoth part of the economy thatdesperately needs that money. the bankingng recapitalization isis ting place very well. >> partly because of thehe sinin rate, righght? >> partrtecause of that butut partly b becsese o what the fed has done w wch has bebeen extraordinary, ben rnrnke's beenen gatat - >> and thehe yield cue.e. and the banks have g gonouou and rsed capitalaln n th private marketets d d ey're in much better shshee than they wee only four momont o.o. so i thinknk ee banksrere resolving this issssueffffecvely on thehe o own you don't w wanthth to papay u tomuch for posits and shrink their r ofofitargins right no >> ietet th. but taa everybody ececri

they're tt going to sndnd it, ththeye not going toavav it.t. amamerans need to have higher savings s lel.l. sosoff they got moremoney in their pocket byutting their tathth's not a gooddthing? >> they doeeee to haveigighe sangs levels, but that's a long-term issue and it doesnsn' acalally help us ge out of the onomic recession in ththe orort run. ifeople save that money, thehen it doesn't get s spe a andt doesn'tt crte jojo. that's why t t government's epepng in and buildingg t this thatathehe enomy needs and modernizing g ou infrastructure is an essential piece.e. it's the one p pie that b busess is doing rhthtnow andd c conmers aren't'toioing right now b b business can and s sululd do. >he onehihingthat happened daday at's inrereing is the climate change billgot delayed unl september. anand cap and trade passes that's a relativelyly l lar tax. if the obama adminintrtratn went foforwd d th this 4%4%surtax on opop who make more t tha $200,000 a year finance health care you'retatalkg about an $860 b bilonon tax bill p pss cap and trade over the n nextete years. effectively neutraliziz t the stimulus. i think they ought to o ba u up the -- >> if you want -- >> it if yououanant -- >>t would be likehaha happppen u und r,r, right? ththe was a thisspspenng and

then e evebobo got paranoid about the deficit, so hee isis xeses dramatically and itall came to naught. >> the ppoi,, though, michchlel we're looking atatthat pointt wherer if the government esn't cocome t thrgh way second econoc recoveryry p pacge that's fficient to the magnitude e of the crisis wewe couldsesee ourselelveinin really protrtracd cecessn -- >> but what we'reigigng i is if this government w wan to be kekeynian be keynesianan,pend money,hahaveig deficits, butut don't keepep taxing people. when you try to balance the budget at the samee meme you e upuptt zero aaga.. if he'ss gngngto do t, .. > keynenesi e ecomics -- >ou pop a l l of money into the system, it's's going to happen. l loo if yoyou back to 2002, whwhenreredent bush cuttataxe by $1 trillion n anththe fed gott rates dodowno o ro, we dd an exexplive recoveryry. it got o of nd. memef that stimulus s shod d have been w witrawn in '00606 whwhent was more appropriaia to tighteten thth fcal andononety pocycy but here's's a casehehere it's prpren that a tax cututofof tht gnitude is equal l toheherisiss th w we had at thehettim

reremeererfter 11, after the bubursngngf the technology bble we had something g atat was not as bad as this tt could ve been if these t this didn'tt geget t in placac >> th,, last rdrd. ten secocos.s. >> .. we, it's -- n n to put you on the e spot. > is the one m momtt i thihi that t t g govnment can do the right thing herend they can bobothnvest in the future of the american economy a andalso help create somome jobs iththe mediu tohort term, whichch iwhwh we sperately need. thanks. >> at a tremendouss c cos to ou future ggenations. l l rit. >> not at aall > n that doeoesn happen. that's aototalmyth. that is amyth.. >hea and ron, thank you.. mimi upnn "the closisingelell, a second stimumulu coming up nextxtjojohnarwood intervrvie a aan who will have a ice in both of thosee decisions. ususe e eney and commerce mmmmtee chairman henry waxaxma

the j joi economic c cmimitt holding a hearing today on whether risingg defaults i in e commererci r reaestate market po a systemic risk to ththe finanaiaial stem and alslso to economic recovery. cncnbc diana ock is inin washshgtgton onewhat did ththeyinin out, dia? >> reporter:r: wl,l,michelle,hee chair of the mmmmtee, caroline loloy, suggested that commercial real estatetes s a ck time bomb, b butheheitnesses on rr panel claimimt t islready explododin >> t the rrent financialalsyst a ameca simply cnot meet thefinancingememan of the

cocoercial real estate marketplace. day even wwl-l-potioned strongng assetets whihi havee debt covovagage nd it very difficult if not impossible too find financingng this is true for allll types of assesetsananit's true all across america. >> this lack of financing isue toto stringent dederwting and plundering values. acrding to the federal reserve, commercial prpric h ha alalrey fallen 24% frfromheheir peak, and analystss eect they cocod falll further to 45%, depependgg on the rkrk. >> commercial l alal eate is realally- - 's kind of between a rockckndnd a h har place. ee rock i is the very, vy al, icic pickup inin current dedefats,here buildings thatt arendnder severe cash floww coconsaints simimpl cannotot et their current m morage paymenen. ththes---- this is h hapning rit now, and aananalarming tete. >> andndhehe hd place is that even t theooood loans may not quififfor ris down the road. so where is ththpain?

wellll, ththin cre firngs bs has roughly 25% too 330% of the mart shshar banks haveve50%. and life ininsuncnce companies d pension funds havave a aut 10% each.. now, unfortunately, delininene ratetes commercial loloanatat banks are running a 2 1/2 times at of bs. so banksks wl l bet the centerr of the pain. there was a representativivththr from t theededal reserve, and when chairwomann maloneyey kept king himwhat isthe systematic risk ofof cmemeial realal eatate all he kept sing isise'e're keeping a c clo e e it. m keeping a close e eye on itn the blogogchchecit ut, realalchcheccnbc.com. >> i i wl l eck it out. thanks.. representative henry waxman, the chairmanf f e very powerfulul house ergy and commercrce mmittee, has a big sayay iaa lot of t t legislation we've been talking abououthrhrouout ththe how, including healththar rerefo a and a p pottial second economic stimulus lan. cnbc c chi washington correspondenen john rwood just oke to presentative waxman, he joins usowow with the highlights. john, also energy well. cap and tradade. >> no questionon aututit. henry waxmxman is at the centero

every importrtan legegistitive debate i iththe use right w. wewe fusus specificallyly on hl ca because there arereo o ma momovi p pts in that gigislion. the hohoee leadership has prepared so,, perhaps totoda momoow, if not over t the weweekd to unveil th way it's going to pay fofo its health cae plan. that hasn't b bnn de ye anngressman xman did nothing g toisiscoage the idea that the way thehehohoe is leaninin unlike the senate,, i tordrd a susurt on people making more thahan 505000 year. ta a listen. > i economiststell us it's needed a as onomists across the boboar even mortoneleldsin sasa w we needed a stimumulu bi thfifirs time aroroun t tha prpresent obama p pusdd for it and got it,, i think thehe vote will be tthe.. presidentt bhh h had to force votes for the rprp thebailout for the banks.s. people didn't likeke it. but what chohoic d d we havee i the econonomwawagoing to o go oe a iff? >> n n,, as you hhea,, that was on a different susubjt, michelle. atat w on the question of

whether a a second stimuluss i fact might be possible and polilicacallachievable. anyoyo heard in tt answer that the congngremamanaid that if in fact enonomis believe 's's nessary it can ssss here's his answer onon t issue of howow t pay f forealth cacar foformnd whether it will be that surtax onnpepeopakakg over $250,000. i i'm going toeeee what the waysys a means committeee propopos.. we're going toto t try to hold costss iththe health c cee syst m mucas p psible toto help pay for the costs s th w we' going incur. we're saving somee money.y. we're spending sosomemoney. t by bringingng i ia l lotffnew ople to make health care affordabab w we' going to have to hpphem get alalth insurarancananpayor it. but ife bring everyone into the system we'llbeable tohohold down cos. it c cerininlys consistent witi president obama's pledgdge n n ise taxes on middle andd lower-ininmeme ople. >> r repteter:nd michelle, the overall takeaway frorom that t conversation with henry waxman is he is open fofor businessndn negogotiioiowith the senate like

he was o on tt cap a a trade bill that pasasse the house,aid everything's on the tatae,e, i not t drininany red linenes. >> you give up 3/4 of allll tho crcreds for free after theyeyere supposeded to be paid foforn an auction.n. >> that's how he g got e vos.s. >> thank you, john. june proving to bebeanother rouh month for retailerers. so congngp next we'e' gng to take the pulseseof the coumer, see if m mayheack to school season will be enough toto se e the retail i indtrtry. we are back k a a ment. >> announcer: here's a a lk k some of f toy'y's nners and sesers d#: 1-800-345-255050 "i"i rethinking everytythi..... tdd#: 1-800-345-5-5050 including who i trust toooooafter my money." tdd#: 1-800-345-2525 he dust might be settltlin.... tdd#: 1-800-34345-5050 tdtdd#1-1-0-345-2550 "i gueuess'm'm jt done with doininnonothg, you know?" tdd#: 1-800-34345-5050 tdtdd#1-1-80345-2550 "oh, i'm'motot tnking about moving m my nene tdd#: 1-1-8034342550 i am moving itit."

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upgrading researcrc i motion to buy from neutralalith a price targetof $79 a share.. e analysts t the citing vavaluioioand the potential for the smartphone market to grow signgnifanany laerer. rim shareseshahave fallen18% or the past month, tododay higher more than 1%. broaoadc d droing its more t tn 00 millionrr $11 per sre takeover offer for emulex. after ththetwork gear mer rejectcted its seteten bid sayingt t s still too low. broadcom will now concentrate on

other opportunitieiebubut it's unclear whethther that cocod d include trying acquire a different ccpany. ememexex ler by 6%. broaoadcigher by .. the world health o orgizizion approvovin gxosmithkline's rvical cancer vaccine. the decisisioneaeans donors can bubuy llionsf doses for poor countries in around the rlrld. rcrck'omomting vaccine rdisil has already been approved by ththe o. tail sales took anonoth hit. they were downearly 7inin june. 's's warning sign ahead ofof t crucial back to o hohooleason. and witith opoprs saving their peies this year is thiss fl e e st hope for retetairsrs goininininto the re inin m to discuss is j joe feldman. hehe's managing dictor and senior rearch analystt telseyey advisisor group.p. and e ecc seededer is reilil ananalt t atbring murray ccart. e e nuers were di nal but they werenen a asisisl as people ouough how doee assess june? and does june alally mteteor ststaythrowaway y month? >> it's molyly clearance

peperi.. it w whe retailers start get ready rr back to s schll and fall.. no one realllly rolls out aot of newnwns s injune. it's really time t tolelear ouou the numberers rerepoor, and i think retailers are strugugglg to clear outut t p proct and get rerey y fofall. >> abercrcroieie & fitchchowown. that is tough. butt t.j. m mx x up 4%. ross stores up 1%. soso clearly thehe discounters.. joe,e, wnn ititomomes to back t school, hoho crucial is ?? second only t to chrirists,s, r? >> right. it's a bigmportant pepeodod, d it also has a good s supup f ririmas because it g giv reretaers a spce of how toto order for the christstmaseseon. when doeoeititstart, joe, and how do you think w wrereoing t e e coumers perform during g atat >> well, issalready stataeded t so xtent. some of the stormsave been s set already y fobabacko scscho. burerely by mid-july, late julyly wllllee most of the retailers willll hee anansioned toto bk to school at that popoin so that's g gngng to be a cruci time. >> eric,ee always hearrhahat you

shouould be buying stuff whenen nobody else wantntsit. with retail sales ass bad ashehy lolook now a time actually to bubuy retailers? >> i think that if you have actually a longererer view hehee beyond noise of the nenextewew montnthsheherere aotot oveve strorongrorowtcompanies out there ttave multi-year exnsion stories here,ototh u.u.s.ndndnternational -- - like? like rnrno, like urban tftfitrs, like guess. alalthese companies have enen beatenen dn n th the rest oththe ouou they tradede aowultiples to at they're historirilllly adadg and you can buy thesee namesndnd feel surure because they have tons of f ca a and they're e ining come back wnn this ecocono c com back. we're not going tbeben thihi kind of f tuelel forever. there will beigight here, and when we come b bkk these guys will -- >>oe, do you agreeee with that assessmementndnd a we past t the stage of ththe bankrkrupieies? have we seeee everybody o's gogg tgogo bkrupt go bankrupt or do you still have to wawatc for that iou're vevestg in thisis sector? >> thehe a are some you s sti he to watchchororev for but i tnknk a areast that. ththina lot of the vendors haveealized bankruptciess aren't necesessalyly gd for th.. and that wasas wt t relyinindud

soso of the bankruptctcie early lastear -- or le last arar. i thinink 'r'rpast that, a i i do agree with ric. the e ara lot of od values right now. especially as s uu tnk a few years out. >> all right. guys, thank k yososo mh. eric andnd joe.e. >> thank you. cyber atatcks, they have beeeen escalating in the e la f f days. coming up n ntt we're going discususs atat can be done to sp cyber securityty risk, how mucut caalalcost, and of course whwhat the investment angng i is. traders are e alysyshungry . they find themem t td eritrade. trtradg's all about straragygy. they find themem and ststteteg's.... all abouout foformion. so: i start myrarang day... with td amereritded's morning perspectctiv at's interesting..... or, look at this... with td amereritded's morning perspectctiv i can mine their weeeeyy bcast for ideas. of cououe,e, ias are just the start.i nd.d. n n i can drill down. heat mapappi.... he mapping shows me whwhe e thmoney's moving. 2,500 ststoc.... e quick glance. cocold. cold. look a aththis pattern matcher...re.. paern matcher spots technical papaererns automatically. w,w, lk at that. lolookt t th head and shoulders s ghght ere.

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cyber r seriri attacks raraining over the lasastfew days. exexsing flaws in the gogornment's and corporatete ererics internet networks. cncnbc silicon vallele bureau chief jim oldman joins s owow thth t l lattt details. u try to sasa jim. m miclle, goodd evening t yoyo the last few days ofof urered t unprecedented cyber attatackonon so many kekey rtrts the nation's t tecololical infrfrasucuctu. it mighthte e a canary a a coa mine, , rat's n nes of computer networks only as securur a thrr weakest lilink. >> talk totome. the whole room's gone down, si. >> i can see tt.t. t the viruruse h he shut it down. in the blockbuster

"t"tnsnsfoers" the ddepeptins were le to log io what was suppppos t tbe an impenenrarabl totally securere denen departmementetetwo. today ptptnonot out the decepticons butt coordinateded groups of overnment-sponsored computer senensts and stwtwar enneers some suspect fromom northororea exploiting vuerabilities, taking controrol over our increasingly automatedd lilis.s. these denial of service attacks begin by seizing cononolol o individual compututer w wther theyey'rcoconsers or companies, without them even knowing g it linking tens o of ouousas of themem tother and enen overwhelming i irastructure neorks, treasuryry, s sshlth service, the c,c, transportatato depapamement they've all bebeen hitit a i ise cases s sh d dow completely a a for 2424 hoururs. air trafafc c control, bankiking homeland secururit they're all at r rk k fr hahacks andd governmentsts waging eleleconon warfare. inconvnvieienctoday, but c cou become deadly momorr. >> they'rereonontrling thousands d tens ofhousands of computers. d they'reatattaing -- tatargining ose computers

against website that's werere never designedoo handle that kind of traffic. and there's rereal not much y can do aboutut at. itit a fundamental pblblem bebeususe stems areesesigd to handnd a a rtain capacity and d when it goes over r th cacity thth basically shut down a and it's'sotot ch onene c c do abt that. >> now,, obviously, t key companies involved in alall thi cisco, microsoft, oracle, symantntecthth're all s samamblg to keep up withhese t thrts with secururitbecoming now aaeyy marketing differentnttotor competititiococoinues to heat up.. butt's carar that thisis new kind of electrononicararfa is becoming far more common, far morereeffective, andmichelle, therefore fa far more dangerous. ckck tyou. >> thank y you jim. let's get more on ththbubusiss imimct of these attacacks jim w talking about. i'i'm inined by d grey,icice president of tecechnalaltrategy solutionary. and mollyly woodd is executive editor at cnet.com. guys, good tooee you. johnhn, t t start withth ouou. what's'shehe biness impact that we're seeing? is it helplpinyour mpmpan are you gettttinmore buneness and w wtt es it ctt other

companies when thingnglilikehis happen? >> there's o obvusly various sisiss impacacts commerce companies aren't t ab to sell. ininfoation providers aren't able to provide iormation. and d yeye i it does helprive buness to our companies, o cucusters. we're lookokin at itrom o o customers' perspsptitives it's all ababouththresponse time. how fast can i respondnd tthese attatas?s? as your rororr meioione you n'n't event the attacks. i it' all abobo h havg a plan in placeith the tools d the expertise you that neeeetoto he to be ablbleo mininimee the impact. s smolly, don's obviouslyly going to tatahis book becaususe it's good fofor business. what do you thk?k? are ththes attacks serious as some havave dede t? > well, you ow, i tnknk it depends on wh t t attttac mn and whatathehey uld potentially adado. this parartilalar ate of attacks isot that serious. it's relatively unsophisticated, you know, brutee force attttac againstt websites. they are relatively e eas to defend against once e u u ca figureutut that theyey'r ppppeng. and sites ththat are well secur aren't actuauay y gog to have a serious problemem. the serious probleleisis that sobobody is controroining at is in effecect gigit super computer

anwe don't knowwhahat they intend to do with i it or w wtt they could potentially eventually b b able to d do bey these kindndff bte force atattas. >> john,n,hahat outhisybyber czar? is t theovovnment going to be able t tprprott us from all of thisis? >> no.o. i n'think so. i think thyber czar c cerinly is a a bully pulpipito talk t t ganizations about h havgg secucutyty pgram in place, having theroper protection measures in place.e. as wasentioned by llll this is a very sophisticated tack. in t thi case. but weetill see t tttimpact to ov 2 20 sites i in ee u.s.s., dodozesites in south kororea n. an, it just swsws that it doesn'n't keke a t t of sophistiticaonon t to stillavav major impapact on these web-bas businesseses. >> now, i'meaeadi here, molly, you don't thininctually north korea is necessaririly t to ama right?t? >> well, i inink a l l o of tim at happens when you sesee a an attack like thihis that it's easy too jump to a cclusion and it's relatively easy f f t the hackers to give thee impression someone else beingbehind itit. but you kindndff h hav wonder why a government likee north

rerea uld engage some n.. something thatat i such a publi tatackso like isasaid retitily easy toinind eventually put down.n. you're not goingngtoto suffer f th f f a really ng titime d wouldbabasilly announce their intention. would be like the government ying, hey, we have ashshy dadangous new y,y, here's how defefendouoursf against it. it just doesesn'mama a l o of sesens and aloloof times these areren' what theyy aear to be i in term of who's behind them. >> john, would you agreeee whh th assessment? shmakes a good p poi.. it's ey to didiuiuise who you ararand where you're coming from on the internet. >> well, absolutely. anand e point you that brought up earlierababou what'sththe rel intent a autut ts? a attkk ke thisththat not veverysophisticated,d, iss easyo pull off byyanyone, andd it reallyly justausesdisruption, could provide covever rr somethininelse. could providide c cerer for mor targeted atattas.s. >> all ghght. so we have a l lotf f os who watctc do if they have a businene, , what should they b be dodoin sisidecalling your company. >> they should be assessing whwh the impact t to eieir business could be. thatives thth a fmemerk on

deciding howowucuch ney they want to spendpp front on protection and mow t mininizize the down timeewhwh this evitably does occur. >> i've gottotohink etet is sengncreased terest. can you measure it? >> it'ss setethi that scares businesses obvioious and it aoo scares cononsursrsecause they're ththinng, okay, ho did s somne ilild network of 10million computers and is m my mpmper one ofof tm? so i thk there's aot of w way you can protect yoyourlflf one isss the i indidual so your cocomper doesn't become partrtf this giant weaeapo and t the protect your bususesess,too, so you don't l los money as a aesut ofof i >>ooood isiscuion, guys. see you laterer. >> thank you.. >> all ght. cycyicicaltocks surging tododay despite a rececentelell-f. coming u unenexte're going t to look at whetherr tally canan b sustained given the hehey y exposure cyclicalsls hee to crumbling commodititprpric. ming up on "fast money" don'tt miss juaa boststinnene-oone intervieiewwiwith billionaire investor warren n buetett on etethehe thinks a second imulus plan is needed.d.

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totoifife day. tt nesto takes a look atat tndnd and whether ororotot ican last. i don't know, friendnd. you know, t tsese trends, theye come, thth go. but t's definitely aa one-day wowond. if you t te e a ok atreclclin clicals,oror cles le e e brits cacallt.t. to 1 gagati for the cycyclalal underperfoformcece the snapbaba tay itit c cld be argugu w was overdue.e. if you take alook inside this vicious cycle of an ininx, ma you'veve got to really havavsos fooioit yy into it. two thirds o of ee m mornn stany cyclical i ind.. 30 stocks inin i 22of 30 were highghertoday. up about 1. actually. two o irirds of the index, capl goods,s, materials and transpor. that's 20 stocksks, lklk also if you take look, t china plpl, , weeard the cnana au story todayyndnd the growth

there.e. we've seen somee commodity newe but avavy expose su tthe whwhol china commodity theme obobououslwith materials and such pch and t the lastltl y yo bebett b be mbmbler believe ina rerecory recovery. because this bad bayay m n not ststicaround. take a a lk k some of the big nners today. trthese cycles if you wawa.. templelenlnlan ford, sco, free portrt-mcmoran, all f fel today% to 220% i in tt periri of time. >> t f forrr baseballlayer r known n as nanail his mtitimiion dollararomome foreclosed on tod. hehe sd he's the victim ofof mortgage fraud. i don't know what to make e of this intnterewew. you watch, y y d dece. i hope he has thatatnsnsurce.

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tomorrow w we'et a csumer sentimenent rvrv. lenny dykstra known n as n nai s filed for banknkru spiphis ltimillion dollar mansnsio being foreclosededn.n. bcbc jane welel s spo exclusivivelwiwith dykstra. she e jos s with more. >> lennynyykykst said he filed fobankruptcy chapter 11 1 rereornini and says he's t the victim of mtgtge fraud.d. that f finingctctllyut on hold. thee anand f fececlore auction dadaof his massiveve $24illion estate b binind e ges of ererrwd country club today. it claimsee has $31 million in debt and $54540000 in assets. that's a far cry from theetet worth hehowed forasast ek. but dydytrtra idide tookkut two

mortgages to buy wayay gretzky's house. ter he said a washington mutual loaoan fifir said he cod d rrfi bothoaoans in 6060 dadays he had liquidateteisis most valuable assets to pay off ee second mortgagag s stoed paying t first a and has v vow to sue the n nwnwns of wa,, jpmorgan chase. > douou danything wrong? you owe a l of money. >nybody that's owed b by me wi be paid. but remember, i was payiying everybody for r a year. i i s paying $200,000 for aosos a year okakay? i mean, there's not a lot of people that have t the c capityo dodo at. so finally i hahadoo make decision andnd i iad to gerid f my nest ee, my retirement, okay? which was a $38 millioion ckckag >> that is $2,000 a monththn mortgage payments said he was making wh h hwas only bringing

$125,000 a month, h hcece t sale of the e ne e e. chase sasays it won't cocoenent spififally on dykstra b it expepectalalits c cusmemers to meet its legal obligationsns. there'e'aa l more to the story d the eirire terview right nocan beseseent cnbc.com. >> i'm t tling ppeoe,e,hey shouldldogog iand watch iit. it ininrerestg. jajaneththk you. sting with the sports world, don't miss totonit's premier o "inside track ---- refefueinin business of nascar." the sport isivivgpoponss a bibireretu on their mononey despspitththe ugh economic clate. "fast money" up nenext anankso much for watching. f very good night. >gegenel mototorssschcheded to hololaaews conference tomorrow morning as the auto maker epepesn n ex from chapter r 11ananuptcy. crude oil l edd d cts hier. nestleesesum cookie dougugh prprucucti in virginia afterer government investitigaonon fds e.coli foundin