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from the nasdaq market site in new york city's time square, this is "fast money," i'm melissa lee, these are the "fast money" traders. lots of action during and after the bell. trade it all in the next hour. dell, in fact, down 3% after saying customers are deferring sales. we'll get to that in a moment. but first, stocks jumping the most in six weeks today after meredith whitney turns bullish. on goldman sandwiches. goldman sachs. let's get to the word on the street right now. s&p 500 closing higher by 2.5% above the 900 level. good leadership from tech as well as the financials. welcome back. >> welcome back, it's good to be back. we've been looking and struggling for a long time now looking for somebody to lead us. we've been talking it wasn't going to be energy. energy led us for a while, now we've got a leader potentially coming back. it starts off tomorrow, starts today a little bit with goldman sachs, the financials, then you started to get, tech started

working. that's what hit us back in march, started to move us in april. if this earnings season can give us a catalyst, that's what everybody's been waiting for and goldman sachs is going to kick it off. >> i'm going to put my skeptics cap on. this seems like a bounce, a reflex ahead of earnings season. karen, what do you make of this? right now it did just seem like a little bit of a bounce on really nothing, it was nice meredith whitney turned bullish, but throughout the day it's gone higher. >> goldman sachs, recall if you listen to her said she was a bullish care, but a bearish call. she thinks the consumer is going to get crushed take at least a year to a year and a half for them to come out. i happen to agree with her. i like her call on goldman, eps makes sense. this is going to be a great quarter, we've talked about that for a long time.

can they follow through in the next quarter? >> this is the second upgrade. >> she needs to think about that. new shop, needs to make a big slash. probably a low-risk move to do it, i don't know if i necessarily agree with it. >> i don't think there was necessarily as big of a response to meredith whitney as there was, there was asset allocation and you saw a lot of the way this market was trading today and you didn't have any data or earnings. tomorrow, retail sales, ppi, we came in this morning and asia looked somewhat broken. talk about that later, talk about emerging markets. i don't think asia's in a good place and i do think it's a bit ahead of itself. let's get on to the real numbers tomorrow. i think today was a bit of a blip. >> the trend of volatility lastly, you look at today, we've been talking about volatility. last week, a little bit of fear, 870 -- we got the volatility back up to 33, that lasted about 30 seconds and since that time, down, down, down. that's the trend we've been

seeing, that's a good thing because it's telling you people are getting much more comfortable with the marketplace. i've got to tell you, if you believe that the $20 she says they can earn, we're talking about a 10 pe, actually less than that, even at 186. i tend to look at this and think if she's right, she's not late to the party, she's getting on board for another $30 to $40. >> another $30 to $40. at the same time, can we draw conclusions about this upgrade of goldman sachs that followed the upgrade we saw from citi last week? goldman is not necessarily the barometer for the financials, it's the trading revenues. she says because of the tsunami of debt issuance that is coming to market that goldman will be able to take advantage of it in the coming months and years ahead as we just dive feverishly -- >> sustainability of earnings and these guys can repeat these numbers and we're not sure how they're going to do it but they're going to reinvent themselves, they always do. that's what's different here. a lot of people think first and second quarter trading revenues

were one off because of enormous probably once in a lifetime spreads in fixed income et cetera. i think that's somewhat true, but i do think they are so far ahead in terms of no other competition and the guys are probably best at taking risks. >> we've been trying to -- last week around 32, take profits, take your short back, now look at it today. the risk reward trade sets up easily ahead of earnings, 34.75, great day by jpm, but 35.25, still what we talked about. i think you can get short jpmorgan here, stop on a close below 35.25. that might be painful, but this is a painful market. risk-reward. >> by the way, the last thing on the whole topic, it was the topic all day long. but you look at the spike in volatility, people are expecting a move. the majority of the paper today coming after calls. last week they were buying puts, trying to protect themselves, going into this earnings cycle, now all of a sudden, you get this huge influx of call buyers. they might be a little bit late to the party, and probably too much premium. and that's how the trade sets up.

something karen and i were discussing before the show. that volatility's virtually unchanged trading about 41 to 42 volatility, well over 60%. that's the trade going in. selling that july, trying to take advantage of that premium and buying the august. >> meredith whitney talked about a whole lot of other things besides goldman sachs. she's a little bit skeptical about the economy. take a listen to what she said earlier today. >> unemployment continues to drive higher. and the banks are not prepared for double digit unemployment. so that's going to be an issue for them that does not go away for the next, you know, year and a half. >> so basically the goldman call was the tallest midget in the room kind of call. but at the same time the banks rally on the back of the earnings -- the back of the call, excuse me, despite what she had to say about the economy in general. bank of america, that was an interesting call that she made.

she said essentially that it's cheap when you take a look at tangible book value. doesn't mean you should buy it, though. >> that's true. although, it sounded to me -- i did see that part she was on "squawk box" this morning, it did sound she was more bullish on bank of america, which you own. i think bank of america is attractive here, however, when we talk about head winds facing the consumer, bank of america does have significant consumer exposure. they have a very large credit card portfolio. and so for them, they may base a lot of the head winds that goldman sachs may not without having the consumer exposure. >> and this is where tech comes into place. she made that call around the 870 level on the s&p. today's level held and bounced. if she made this call about 40 or 50 points ago, you may not have gotten the same reaction. she made it at the perfect time in terms of inflexion point. this is what i thought we'd do last week. but again, i'm more inclined at this point to sell -- >> fixed income trading and all of the rest of it, how about morgan stanley. everybody's talking about goldman sachs, i realize that's the earnings.

i've got to figure, morgan stanley is really well positioned going in. it has been sort of depressed, holding underneath 30 for quite a while, trading around 27. looks a little bit like it might be cheap. their numbers could be extreme, as well. i think they could crush it almost like goldman sachs. >> the stock you wanted to buy was morgan stanley. and turn over to that last week, he called them goldman light, which i don't think john mack would appreciate but he was right on with that call. that's where you wanted to play this and morgan stanley outperformed. >> will we see the same earning we typically see? usually had been in the past, but of course, they are no longer with us. goldman sachs is first out of the gate, we will get a pop in the whole sector will rally and that is the end of the rally. >> could be. could be a huge mine day for goldman and could be the stocks up $4 or $5. big volume day, maybe the tape reverses, maybe goldman reverses on the back of it. that's what you're looking for. if you see a big volume day,

then the tape gets very scary to me, then 870 taking that on on the downside becomes -- >> the last thing is, goldman sachs, that's a great indicator, but then you look to later in the week to see if there's follow through. that's one name, they are unique, the best in breed, you've got to look at how the rest of the financials are doing. >> let's get you up to date on after hours action we're tracking for you. could dell dampen the euphoria? the nasdaq specifically higher by more than 2%. after the close, pc maker saying it expects slight sequential revenue growth in q-2, it has also seen a decline in gross margins, also seen customers defer purchases, not good news. >> that is not good news. and you know, dell, i think has some of the issues that are specific to dell. but deferral and purchases is not what you want to hear when you own things like hp, which we own. also not great for intel. you can see a lot of the peripheral names that would go along with this. this is not a good thing. and this is, you know, maybe

more indication that these green shoots are not so green. >> you've been bullish or constructive on dell in the past. >> i love dell, and they still have to show us growth. we've been talking about dell, we love dell, but they've got to show us growth, and how are they going to do that? they've got to make an acquisition to show they're looking ahead. the intel story is different. that partnership with nokia, that could be really something that could push them to the next level, the readers, the e-readers they possibly will develop with nokia, all of the different chatter. i still think intel is strong. dell's a unique situation. still look to microsoft, apple, plenty out there, ibm, hewlett-packard. >> and tepid guidance they did give was based on broad economic global improvement they said has to happen in order to come through. a lot of the comments they made were not very encouraging for the bulls. i still liked you saw the goldman upgrade, i believe on thursday and friday, i think it's still an interesting play here, but these comments are not helping. >> yeah, they also talked about demand stabilization.

i want to go back to the pc side of things, slumping, a lot of data. that's very encouraging and it hope we get really reads from intel, they're the ones that care about this probably second only to dell and hp and some of the guys in that business. i think that's actually somewhat encouraging and i look to that. i think nokia's side, by the way, we look to their earnings in two days and i think they're going to tell us they are significantly in that new line they have out there in china. and i think that's going to be very bullish for the other players. >> time to take your position. the largest chip maker tomorrow after the bell, listen for the company to indicate signs of stabilization, what does this dell news mean for intel? joining us with his take for what to expect tomorrow, craig berger. vp of equity research. great to have you with us. >> thank you. >> do these comments from dell make you more bearish on what intel might say tomorrow? >> i think they're going to have a pretty good report tomorrow.

one of the reasons i've been fairly constructive on chips because they've been performing much worse than their end markets. intel's been shipping worse than what dell and hp have been shipping. so that disconnect has been closing, which is one of the reasons that ships are okay. global inventories out there remain very, very lean right now. that could help the chip guys in the second half of the year. hitting dell, you've got the mix down to lower price notebooks and netbooks, which is hitting the vendors really regard right now. intel is probably seeing that. and enterprise is dead in 2009. >> one of the highlights of the first quarter was gross margins. some of the things you mentioned about inventories, what are you looking on a gross margin front? that's a big number for intel. >> the most important number probably, if they can do 50% or better, i think that's going to be viewed favorably, less, it's going to be viewed as a disappointment. >> you're expecting 50.9? >> yeah. >> you made this point, isn't this a place where they start to beat away at their own backyard.

it's certainly the cannibalization of the earnings you talked about in your note is what should be concerning you. if this is what people are excited about in intel, it's the adam chip, the netbooks. >> i think most of people are getting it wrong with respect to intel on that point. and i think it's a big concern over the next three to four years. in the near term, i think things will be pretty good and as goes intel's growth margin so will go to the stock in the near term. longer term is the concern. it's good news for the marvels that sell into this supply chain and we did just hear today talking to my contacts in asia the first signs that europe consumer is starting to stabilize and potentially improve. >> right. just quickly, craig, before we let you go. often times intel will trade along with the bad news out of the tech sector and today it is dell. if we do see weakness, would you recommend investors use that weakness and buy? >> for short-term gains? yes, i think that's fine. i think intel's going to do pretty well. >> is there any other chip you like outside of the intel?

is there somebody you like more than intel right now? >> yeah, marvel, broadcom. two larger names and a short cap name. fair child semi, i think they'll crush the third quarter guidance. >> great to have you with us. craig berger. also moving in tech land, up 4%, the real story though was in the pit. >> security technology is a big story going forward. everybody's being talking about it. we've seen this in the news lately a lot. the july calls about two weeks ago extremely active, that didn't seem to work out, paying 10, 15, 25 cents. stayed underneath $45. they were back again today positioning in august. maybe the timing was wrong, but if you look out there, there's the extreme volume, 9,000 contracts before noon, purchased out there, 75 to 80 cents, that's what they were paying for those options. they were expecting just what they were expecting before they didn't get it before,

maybe they won't get it this time. incredible amount of activity. >> we will continue our tech story later on in the show. more with the man, the analyst who sent people's shares saying the stock could add another $50 a share. moving on, take a look at our chart of the day. health care will be the least worst, in this environment least worst is actually good. >> not so much. >> it's the new good. >> the least worst sector, declining only 2%, compare that to financials, down 55%, energy, expected to be down 64%, materials, expected to be off a whopping 78%. least worst. >> well, but it doesn't -- built into the least worst is not the looming, you know, reform, which could be terribly dramatic. >> so even though -- it could be the worst because of the projected reform in the impact potentially on profits? >> we don't know. >> if you're looking for least worst, you want some sort of diversification, jobs are jobs and they've got theirs coming out. all of the diversification you're looking for, performance is incredible, they always seem to beat on their earnings,

revenues might be a little bit less, keep an eye on j & j, but the stock's been running into this number so -- >> love j & j, consumer products are 20% of their revenues, i'd like to that to be more of 33%, mixing up pretty evenly. abbott labs will also report this week, there's a company whose major drugs come off patent in 2017, pfizer's come off in the next year to year and a half. abbott is very fair, morgan stanley put a $65 price target, i believe, on these guys a while back. i don't think it's going that high, but this is easily a stock to get the 49 or 50. >> j & j is impressive, $5 billion acquisitions or less. they continue to stay with that, that billion dollars they spent a week ago for their alzheimer's drug, you've got to like the direction they're taking. they continue to perform. >> let's move on to the next trade here. today's top story, reminders that the credit crisis is actually far from over as lender cit group struggles to survive. shrugging off the news today.

should investors take the story more seriously? joining us on the fast line is top-ranked analyst from credit sweiss. >> great to be here. >> you don't believe the collapse of cit would mean systemic risk. out-line what the risk fact would be. >> well, i think cit is a large player in a couple of finance businesses. their customer base would see some pressure. system temic, but not in the way we typically think of. >> who can step in to make the loans to the small and mid-sized businesses if cit collapses? >> in terms of the general corporate finance, it could be any bank. there are some specialty businesses like trade finance where someone else would have to step in and take over that role. >> hey, it's tim, how much of this, though, is political, the fdic not stepping in, geithner making comments, we can do what we want when we want. we have the ability to do this now, we don't need special rules. this seems a little strange. obviously they threw these guys t.a.r.p. money, in position to

give them a hand, smes are very important to the story and politically i think it would be a significant thing not to bail them out. >> well, tim, i think it's even more so than that because there are a couple of players ge and deere capital that actually got tlpg guarantees in october without becoming bank holding companies. i think they thought they were doing the right thing when they did that route. and had they applied for it and gone that way -- >> why are they stiff on it -- stiff arm then? what's going on? the stiff arm from the fdic, i should say? >> right, you know, a little unclear, you know, i'm not confidence there, but i would say that it does appear that the fdic has only made one exception during the course of 2009 and that was granting tlgp but hasn't made any others. >> if they were to go under, who really would be hurt by that? who has a lot of the credit from cit, it's probably not a great environment to go out and get another line of credit. who really is vulnerable?

>> if you're talking about the customer standpoint, they are the largest factor, the retail community would be hurt from that standpoint. obviously there would be bondholders and, you know, as tim had mentioned the government did give him 2.3 billion of t.a.r.p. money. >> and lastly, handicap the trading opportunity if there is one here. tim geithner today was making comments about the ability to step back in and backs off cit if needed. is there an opportunity in that -- do you think the government would ultimately step in, and if so, could we then see a sharp rally on that news? >> well, you know, there is that possibility and it's really difficult to handicap precisely what the government's going to do. our concern is we outlined about three months ago, we down-sgraded the shares, it's really difficult to understand how the common stockholders's going to make a lot of money because the earnings powers has been depleted and what they're going need to do assuming they get the chance will be to exchange both their preferred stocks and perhaps their debt into common stock, which would dilute the

ownership of the existing players, if there is a rally, you know, we've got -- we probably be sellers into it because i think ultimately the earnings power of the company could be under a lot of pressure then. >> all right. great to have you with us, thanks so much for your analysis. moshe there from credit suisse. even the richest man in the new york city is feeling the effects of the economy. the "new york times" is reporting that michael bloomberg lost $10 million on his investments last year and is slumming it billionaire style by renting out his florida vacation home in addition to cutting spending on maids. >> poor mike bloomberg. >> 1/10 of 100%. >> that was the word on the street. here's what's coming up next on the show.

>> how do you tread the rough waters ahead as the earnings wave closes in on this market? "fast money's" earnings edge has your trade and strategies to stay afloat and ride the stocks swell. and shares of this company are about to go on a 10% run, and it's probably been staring you in the face all day. a top analyst reveals his market-moving call. plus break out the donuts and step into the box. our home run derby picks are set for liftoff when america's post market show continues.lc progressive.com.m. you mumust belooking for motorcycle inrance. you're good. thks. so is our bike iuran. all the verageou need at a great pri. hold on, cowboy. cool. i'm not done -- for leless tn a dollar a month,, u also get 24/7 roadsidessistance. yeah, vroovrvroom! soso like you ran a 500.0. mo like a 900 v-twinin. well, you're eused. the right insurance for yoyo ride. now, that's progressssive. c.

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welcomome ckcko "fast neney,live at the markets. let's s ta a aook at shares on x. araresigher in the post market, 3%3%igighe the company reporting 72 versus s c cen, esmamatehe revenues coming in n ghgh but the important thihing is the ceo says he d ds s se signs of a b btotom the economy.y. >> yeah, and that't's ododews -- the stock we'd try to o nagagate for r u,u, awell, and that was . it takeses pfifitsbelow 70 gets interestining,ouou s it traded down 67 or s slalasteek, now above e , , prably goes back to 75 off these csx n numrsrs. burlington northern, a atotock that's traded d grt t chnically, i inink 'll continue to do so.o.

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business weeeemamay ly fetch a nonomil l llar, which would be less than an actual l gagazi. >> it goes a alo w wh them, i gus.s. > rht, because of the long, long recororofof dt obligations thcocoany has. would you buy thisis i canceled my subscrcriponon personallyly, o offse, mcgrgr h hil bubusissssek, it was not timely anymore. 's's n a timely -- >>hehedon't feature like a "fast monene r rec in businessweweekththwise -- > t i intesting thing about mcgraw-hill, their bond d rangng business, , whh h isnder a lililele b of pressure. >>igig. tebobos may be looking good.d. >> undnder l ltle bit of esessu, as well. ananyw, moving on. > ming on here. time now for your earningsgs ee. today's surgrge g golan led a financial-fuelellemamaet rally, buwiwillomorrow's earnings report send goldman backck t

earth. jojoing us on the fast line,e, inininus, chris whatten, instititutnanal sk to break down one e ofheheiggest names. chchri great to have you witit us. you're e eececti goldman to meet b bt expectations given t the run-ups on the b bksks oother upgradeses o t tre. what w wou y youecommend people with the stock? i ihink they're going to o perform well for thehealalan of the year.. if you had an n poportity to investst aununthat had access to the didiscntnt wdow, subsidies, and d yohahaben bernanke and tim gehner as your lobbyist in washingtonon, ululd u want a ecece that? >> i guess the odddds e e your favovor y youe -- >> but this isisn'ththbank. peopopleavave t to forget bank when you're thinking aboutut goldman, this isis aroroked dealer w wh h a ivate equity fu.. i used to cocompe e agnst the prpratate uity fund. i wowoultrtrto get hired to rae money for somebody a a they would write a a cckck you've gotot tststophinking ababt t th as a bank. ththeye e trading organization.. >> let's talk about t atat tding operation.n. they're gogointoto csh this

quarter, we know that. but in terms of goining rwrwar whwhat t thetreet going to say? can they say they can cocontueue on that cocour?? or is this a o o-q-quaer type of thining r r em? >> no,o, ihihinks long as the maets remain stable, goldmanan g goi to be harvesting the we as it were. there's nobody to compmpetwiwith them. it's's tm m anjpmorgan, they are the last of the two standiding what are they doing w witsosome of the higher mamainin binesses. dohey have the same balalae e sheet at r risatathe time people are supposed to be b briinindown lelevege t appears, that value atat rk, goldman may still be ere they were not making investors that mucuch rere comfortable.e. any view on that? >> well, look, valueuet t ri, i lo a at eir bank which we rated a plus, about $160 b bilon in assets. and d sie e la year, they've en reducing risk. they don't h he e toake risks now.w. they have enough fee opportunities ananotothefairly lolow-nging fruit that they y uld be stupid to take e ris.s. thdodowndes for goldman are two.

ononisis pitical, if something happens with aig or sosomeining else in washshinononit turns the perception against them,m, tt't' a big negagati.. and then it's juju t thearkets becaususe ldldn, again, they're t a bank, they don't h he e deposits that are e siififant at all,l,ndnd ithey come under any ki of funding stress, that i is a big downside n negivive r the firmrm >>ismered ith's number 2020 w too high? oror dyou think that's actuauay accurate and pretttty osos >> i neverer aueue wh meredith. shshe'always right. ani i lute her for going outut and making this hehefifirscall because e it o oious. i'veve bn n ve negative on goman, you can read my stuffff. i've been criticicalf f thr politicaca i think they're goining m me a lot ofof meyey a we have to seservour clients. > gatato have you with us, chris whalen, love t to tete h, i guess.s. >> he's pretty c coo >> you lovove h he chris? >> no, goldman, nonot riris. >> i was just kiddining. >> you know whwh?? it's just lilikeetetng, though. you don't use your h hea, , yo usyoyo brain and these guys s are crushing it righghnonow,o

with goldmanan. >let's move on to the n nex trade. fofor momosts long as "fast ney" been on the air, , e e chairwoman has beeeen llllg you to bet againin c comrcial real estatateanannow after 50% dedecle in the iyr over the e louisiana year, karen n hagogoan update o on atat tde. >> yesesi'i'm etty much out of that trade, and our r bieses sisiti in the state is a company calleded crurucity, the owr r ofhe very embattled everer changing atlantic yardrds mpmpy where ththe tsts a going to play atome point allegedly in thehe future. > -basketball. veveryloppy basketball, by the way. > t thing that's interesting, a lot of these companies w wer able to raise e eqtyty athe markrks s ro in the second ararr. and so the near r te r rk of them absolutely falling g ofa a cliff f iso o loer there. ese guys for a city, f for examplple,asasble to raise eqequi at 6.60 a share. weovov the balance today at t 4.80. that's i it.

>> in yourur vw w mageddon's off ththe ble but this is not cacaed a signified bottomom? >> it's not a bulllliscaca, the risksk rarard s really changed and i can't justify being g sht at this pricice y y mo. >> time e r r ring star where we pick a a sllll c stock that may poised to break out this s year. this week tim m tes s about an especialallynrnrhed play, play on words. i indd. we're babackn n thnuclear sector d d t a lot of ways to plalay in the uniniteststes, which is a gogoodhing if you want to beben vevest in usu, which is essentialllly e e on american company in this spacace atat i enriching nunuclr r anium but also w wh h thbacking potentntiay y the u.s. gornrnme. your trigger herere r r th 550 milllln n maet cap which is fefeively traded sideways s fo the last year on the ebbbb a ow of some feeling whetherer w get more demand into t ts s spe ananhrough either stimulusus o tually some direct govoverenent intervention is a loanan fm m e s.s.overnment for $1.5 bililli that will allow them to fifini a

prprecect,hich should create 5,5,00to 6,000 new jobs keep nuear power a big part o oththe front burnrn f forenator obama. and i think a way y u u ha to trade thisis sckck so watch f f t thabecause i thinink ererhe next six to eight weeks, we will get thihi announcement. th s sto at these levels is trading very c che.. technicalllly ununceoff a 200 vivingay and probably your only pure american plalay. >> another pure plpl t to in that same e dictctn and i'm no---- >> hold d .. >> floor, shaw, some o of e e nanameinvolved in the nuclear buildout, they're finanall starting to geget a andeople ararstarting to get these e contracts. i think that's anoththerrerea you're seeiningrgrow. that's why those stockcks,hehe pulled back a lililele b. >> that's grgrt,t, a the key realallys s thgovernment behind them. t theovernment steps in andnd guaranteeses lnsns bause they believe e it g gd for business d good for the ecology, ththen that's what you want w wh h us ththeyununk .5 billion already in this. >> usu could be an obama t tra..

>> i it ululabsolutely be an ama trade. you did that on purpose.. >> maybe, maybe not. >> you did it onon ppopo. >> maybebe. ybe. no comment. >> forgot how upset thatatuyuy got. >> t timnonow r the poll of the day. tonight's questitionininte grinding higighethth year ading into earnings totorrrrow are e yoa a bur before the port? yes, computer demand d ha bottomed as intel signalalleinin the past quartrt.. or b, no, , cororoalt delete isis tde. log on to fafamomonecnbc.com. coming u u i is e bottom finanallininor our fast flasher stock? but it had a b b r ral today near a ahrhreeonth low, give you ththe adade,eveal the stock ahead of the earnining s sy tuned.

here's what we've gogot comi up for youou in the cond half of the progogram. navigating the minine field th the top p tips fm our pros. doot make your next trade e until l you hearhat they've got toay. plus t analyst who says google's h headed 0 higher, and the e mlb ho run derby is

toght, and one stock swiwinging for the fenceses. he's looking at me likike, what? before we get toto all of at, time f for a fasflash, shares of gegeneral electric, the paparent company this network on the mend today, , 6%, backg away frfrom a thr-month low. earningsgs out on iday. is t this wortlooking at, guys? >> i thi ge is a $12 stock. i think ththeir infrtructure bubusinesslone is worth $12. $12 is the rightht price. it's workeked out prty well so far. > it feltike ge got the financl side of their balancnce sheet bid d today. and i'm not sure y you have e same kind ofof love the as if guguys there going to have a lot of earnings power inin the nex year or so.. i love it t for the me reasons guy poininted ou but i think todas move was a little outsized andnd i don think you get the same follow ththrough tomorrow. > let's me on here to an exange. new futures tradining operatn, trying to giveve the c group a run for its money when i it open

for business o on fridaytreasury fufutures coracts hit about 4000, a 3% chunk of cme's s business, i think k that's tay's numberer, correc fray's number was about t a 1.9% share ofof the cmeusiness. buwe've got the ceo to straighten this out t for us. neil, great toto have u with us. how has siness been shaping up? >> wl, we opened on fridayay and did about 20,00000 contrac, so you'rere rightn the market shar and today we had aboutut a 40% incrcrease. we went to abobout a 3% rket sharare, it wareally very good, ry good opening, very y satisfying. >> lot of the analysts on n the street, though are a already saying youou guys ara long shot. cme is so o entrench that there's no hope. what are your sharare targs? anby when? >> we haven't made a any share targets. we opened d up witone set of products because we wawanted t focus onhem. i thinmost of the analysts said we'd open up anand sink le a stone. so right off the bat we e beat t

analysts.. think we have good partrticipatn from our investors,s, our pris converged right t off the t. everybody was sasaying thawe wouldn't't do th, we'd have cheaper ansaction fees, but we be more expensive becauause we'd have wideder market our markets were no pupun intended, but righght on the money, and t they goeven better today. a lot of liquidity, a lolot of depth to thehe market,nd just real quality mararket. >> let me try to p pin you little m more in othe market she question, a little bitit different way. whatat do yoneed to get to to break even to hahave your siness be viaiable? >> y know, our business isis -- forgettiting abo what we need to ma. we have e a very l cost of opoperatio almost eveverything outsourced exceptpt for me,ome marketing peop. it's aery low-cost operationon. whwhat we ne to do to have a viable market t is to t only haveve the invtors in elx, the mar banks and trading firmrms o bought into the exchchange

trade on the sysystem, wneed to starart bringi in the by side, the hedge funds comiming in, t chicago o fcms comg in. >> iant to break in and upupdate our viewers on a h headlin u.s. offials are in advance tas to aid cit, of course e a storory we've en watching, we'll keep youp to date as soon as weave some more headlinenes here. bubut you sethe stock is moving higher in the afafter sessn. hope youou'll comeack and update us o on your biness in the futu. >> i'd be e delighd. >> neal wolklkoff. pops and drops. we kick it off witith a ni pop for r dss, it s up 5%. > this isame last week got a little bit of love. i like t this na, i think there's ill plenty of up side e here, probably less exexposure than peoplple initiay thought and ththat's whakeeping it higher >> ubs was up 6%6%, tim. >> thiwas a big deal. potetentiallassets frozen, and traders, peoplple are lding

assets with you, v very coerned. thisis is veryood news for ubs. >> bank of a americap 9%, thank you, medith whitney. >> yes, thank k you mereth whitneney, that'why bank of america was up higher.r. >> all rht. a drop herere for ll, it was down 1%. >> aside from what t they sa, a tepid d articlover the weekend. in baron's's. i i like dl here, it's been a widow maker fofor me, t i like dell. >> we'e've got pop for bruno, thflick popping the box x office this openining weeke bringing in $34 million in ticket t sales. the universasal studiofilm about a a gay aurian fashion reporter. "tnsformers" held the totop spot fofor the la few weeks. well, near thehe support level, nicice big 4%ove today, you' got to like the weakeker doar as far as caterpillarar, 56% ofheir revenue coming frfrom overseas. goodop. more than dairy, dropping

like a stone. 45%, tim. . a massive move of thihis large, the providerer of esseially infantnt formus in china. the guance was about 40% belelow expectations, but itit did n warrant t this movin the stock. >> are thehese theuys -- > i have idea if they're the melimine guys. >> n nice, youulled that off. >> all rht. >> drop p here f the cubs. blbloomberreporting that the story chchicago mar league baseballll team uld become the first te in the league in 39 years. filed for babankruptcy the e team's oer filed chapter 11 in dember and now it may be -- excuse m me, mayave to do the sameor the cubs. prprotect e team for any future liility related to the t tribune bankruptcy. >> oh, the cubs again.n. >> poor cubs. coming up, navavigating e market's choppppiest wers. what thehe pros ok at when placintheir earnings season n best. stay ted.

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welcome back to "fast

money," i want to bring you up to date on a story we've been following in the after hours session. "wall street journal" is reporting they are in advance talks to aid cit, on the brink of collapse right now. the "wall street journal" also reporting that that debt backing by the fdic is one possibility for cit, and you can see there in the after hours session, the stock had been surging. although it was down considerably during the market session. >> we don't know how they're going to do that, whether -- >> there's a lot. it appears, according to these headlines, that a couple of possibilities are on the table including an fdic backing of the debt. we don't know at the end of the day what's going to happen. but people are taking this as good news that cit, perhaps, will not collapse. >> yeah, and i think as we talk about the bigger issues for the corporate sector, this is a credit event not a stock story and i think this is going to see a lot of spread tightening around that. >> markets surging on earnings enthusiasm today as well as the upgrade from meredith whitney. goldman sandwiches. how do you navigate the rest of this mine field? take a look. >> the next 30 days are not for the faint of heart. volatility will explode, stocks will turn on a dime, and investors' entire years will be made or broken.

ladies and gentlemen, it's earnings season. and this time, the stakes have never been higher. the next few weeks of profit reports will determine bull market from bs. facing the prospect of a second year of underperformance, hedge funds must make the right moves right now or risk getting shut down. plus with every single sec of our economy expected to show a drop in profits, finding the right stocks that are shelters from the storm has never been more important. it's a time of the year that tests the resolve of the most seasoned traders. "fast money" gives you the pros play book for earnings. >> all right, let's go to the pros for that playbook. let's kick it off with pete here. >> i think you've got to be really aware and you talked about it already, it is a very volatile time, i think you've got to use that to your advantage right now, and i think

in each and every case is a bit different. but if that volatility stays and remains low on stocks you're liking and you want to hold for the long-term, buy some puts, buy that protection. if it's something that you're looking more from a trade like a goldman sachs, for instance, today where you had an explosive move on the front month and no move whatsoever in the month right after that, the august, then you can use that to your advantage too, the trading environment is phenomenal right now for the earnings season, but you've got to use the volatility to your advantage. >> give me an example of one play you put in place. >> today was the perfect example. i did this recently in research in motion and again in goldman sachs, where you have the huge disparity and the august options don't move. that's the big key here. if those august, the further out options actually start to move and creep up higher, then that actually does not come into play. but if they stay down at the normal level, then it's easy to go back and check, you can get it at the normal levels and sell a july against it, you have yourself in great position to take advantage and you can sleep at night in front of those earnings. >> which is always nice. >> don't try to trade earnings releases, you're going to blow yourself up, instead try to trade the part patterns. jeffrey system a great example. a couple weeks ago they raised revenue guidance for the

quarter. everybody piled in, we stood hon this desk and said no, no, no wait, get out, now is the time to pull the rip cord. it should trade back, the low the other day was 18.50. my point is don't trade the headline releases, you're never going to make money doing that. let the chart patterns work for you. it's worked in intel, jeffreys. the list goes on and on. >> let's talk some home run derby here. major league baseball home run derby kicks off tonight in st. louis. >> who are you pulling for? >> you know my weakness. i don't know that. let's move on. as a tribute to all of that, all this week on "fast money," we're looking for the albert pujols of stock, swinging for the fences in the hope of big games. tonight pete is our lead-off batter to continue -- >> you think about things maybe are juiced up. ha-ha. well, you've got mcgwire sosa.

go back to the home run derby. everybody was loving the shippers and they had a great run. i was one of those, you try to trade in out of all of the rest of it. excel maritime's the name, $60 stock last year, dropped to $30 in two months, hit $5 by the end of the year, still around $5. you've got a chance for this thing to maybe start to work into that whole shipping area. >> all right, we've got to get out of here. >> got to get out of here. >> got to get out of here.

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me people may have nauseavomiting, diarrhea, bruising, or not sleepepell. some people may hahave muse cramps... or loss of appetetite or may feel tired. in studies, ese re usually mild a a tempory. we really love this plplace. talk to your docr about alzheimer's treaenents. cludinaricept. don't it. alzheimer's isn't waitin time to analyze this, google reporting thursday after the bell. boosting the stock today. jefferies analyst raising his estimates on google. upping his price target. joining us tonight on the "fast line" yusef skully himself. great to have you with us. how would you recommend investors set up ahead of earnings? >> well, we think it's going to be a pretty good quarter. we think it's going to be

better. our theory is that q2 should be no worse than q1, traffic growing to the google site continues to be massive if april and may are any indications. pricing seems to be stable. and then you have a cfo who is very intent on lowering costs. so i think all in all, we'd go into the quarter owning the stock here. >> what do you see in terms of advertising? the outlook for advertising for the rest of the year? >> yeah, so it's interesting. what we're hearing from agencies, that we continue to see soft ad budgets, but they continue to see a fair amount of spending on what works. and search is definitely at the -- top priority for a lot of them. so all in all, we -- our estimates for search is mid to high single -- yeah, mid-single digits display down. mid single digits, but that's still against traditional media, that's down 20% to 30%. >> always a pleasure to speak with you.

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time now for t theininal trade. titim? >> some cracks in n ee aa grgrow a aututpeormance story. pkx. >> abbotott bsbs >> karen?? >> tde. >> guy. >> transactions go witith sasa. >> thanks for watchingng, m m melissa lee,e, s y youack here 0000 p. tomorrow for more ast money." veve areat night.

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