here's what to watch for tomorrow. >> we know home builders' sentiment is improving. what about the latest data on housing starts? we get that tomorrow. earnings central going to be busy tomorrow. we'll get results from citigroup, bank of america, general electric and mattel. and, of course, we've also got earnings on the table.

that may very well set the tone. recap here. google reported better than expected numbers. the stock is under selling g pressure tonight, but the numbers were better than expected. the ceo says business has stabilized. revenue, 4.07 billion verses 4.06 billion. ibm also reported.d. the stock is higher in the extended hours. $2.32 a share. revenue coming in at 23.25 billion. estimates, 23.50 billion.. have a great evening, everybody. thanks so much for being with us on "closing bell." i'll see you tomorrow. "fast money" is up next with melissa lee. google's ceo says on this earnings conference call that business appears to have stabilized, but it is too early to tell when the economy will recover. a group of c.i.t. bondholders are holding a conference call to discuss their options. and dell sells its tennessee manufacturing operations to

denco, but workers will keep their jobs. from the nasdaq market site in new york city, this is "fast money," america. i'm melissa lee. these are your "fast money" players. the s&p 500 jumping 7% in four days. will google end the fub? shares lower after hours right now. experts got your trade right now. let's get to the word on the street. guys, we can't forget about ibm. don't want to be debbie downer, joe. >> right away. right away, you're debbie downer. seven days in a row for tech. tech has been phenomenal. it's been resilient.t. the human inclination after goldman sachs, after intel was to sell, sell. look at goldman sachs. look at intel today. intel got above 1840.

co goldman sachs continued there. if you're a money manager, you begin to get uncomfortable because you've got to beat the benchmark and it's time to start allocating. >> we threw up a chart before of ibm. the earnings came in better than expected. ibm raised its forecast to 970. it would raise its forecast for the year by just about a time. so really, playing the cover off the ball, not the doors off the hinges. whatever metaphor you want to use, ibm did it. what's going to win out in the end? >> i think for these days, it's a similar theme. they crushed on the bottom lineup they were light on the top line. and the margins were good because they've showed how to rein in spending. it's about the outlook they're giving for the second half of the year. in ibm's case, the stock's performance here is lack luster. it tells you that these names are tired despite the fact that i agree what joe is seeing about

overall allocations in this market. guys are very scared. i think guys were expecting that these earnings were not going to be very good and came into this week short and a lot of guys are chasing these numbers right now. >> ibm is up 5% in the after-hours session. tim calls it lackluster. karen? >> i think it's impressive. they didn't need to raise guidance that much. they've got to feel very confident. >> right, okay. >> right? i mean, you don't want to overpromise when you don't have to. i think it's actually -- it's pretty bullish. >> i agree 100%, especially in this environment. this isn't one where we've seen companies go out and lay out these uber positive earnings predictions. i like what ibm had to say. i like the stock here. >> and google, we're getting headlines, a conference call is going on right now. has been going on for a half hour for ibm and google.e. google saying it's too early to tell when the economy will recover. should we read too much into this? is this a tech-specific thing?

is it an internet-specific thing or a google-specific thing? >> no, i think what's important to understand, we talk about what is the new normal? and right now, you're in an environment that is completely unprecedented. you can't be looking right now at the market, looking at head and shoulder patterns. you have to look at the fundamentals. right now they are improving fundamentals in the face of what has been a pricing in terms of ecqually valuations that was anticipating armageddon. >> i've got to agrooand edisagree with joe. >> you don't do both. >> you need to look at fundamentals, but you have to realize where you are on the placement of things. we've come pretty far pretty fast. you've got to love technicals. if you have a stock that's overextebded 20% and it's way outside its normal deviations and this thing is way outside of what it normally does, you have to look to protect there. at the end of the day,

interpretation is -- the interpretation of a company is fundamentals. >> and again, i'm going to get back to where we are with a lot of these names. ibm is just up 1.5% and google is down 13 bucks. google is kind of -- according to my party, diego, it's his canary. it tells you what's going on with the momentum. they're running out of gas here. it doesn't mean it hasn't been a great run. those were great numbers on the top line. the outlook they gave was very encouraging for the second half of the year. but you need a lot to take it to the next level from here. >> let's get the full picture. let's bring in jim goldman. a very, very talented man because he has been in talks following both the google and ibm calls and tweeting them. >> the google call or the ibm call? >> i don't know. he's been tweeting them both on the "fast money" twitter. i don't know what his technique is. jim, are you with us? >> yeah. i was looking to see which tweets you were showing there. that was from google.

we move over here a little bit. that was from google. you know, this is an interesting report from these guys because as you were talking about, the momentum thing is significant. you know rks s the, there's bigt mobile on the google conference call right now and whether that's going to cannibalize the desktop business. the advertisers are going from one extreme to another. they get to know a lot more about individual users when they see quhawhat they're searching on mobile devices versus desktop. that line about business stabilizing and large advertisers coming back to google, that is very key. this is a company that doesn't offer any meaningful outlook, but when you read to tea leaves and look at those comments, you start to think that maybe the economy is beginning to bottom and google is a great canary in a coal mine when you talk about this economy because of advertising. over at ibm, when you're talking about a company with such a significant bottom line beat --

in fact, this is the biggest bot bot bottom-line beat that ibm has ever reported. you look at the company's guidance. you don't want to sit here and be a raw-raw chamber of commerce booster, but couple this with intel and you're seeing pretty rosy trends for this sector. guys, back to you. >> i think when you look, melissa, what jim is talking about now, when you look at the i blr ibm earnings, it shows the resilience of corporations. that's robust right now. when you look at google, that's less about -- and it's more about what you're seeing in terms of ads. we talk about momentum in google. i think what you'll see in google is same thing you saw in the marketplace last week. momentum players will get shaken out of the stock. the stock sells off and it's a tremendous buying opportunity because you can't tell me three to six months from now, this is not a stock that goes north of --

>> and tomorrow, these guys trade one for one. it will plummet with google if we -- >> what is the weakness? >> google around here is probably where people want to own it, but i think they're a little worried to jump in today. i mean, you have to get the -- it's impossible to know where it's going to trade. we've said this many times. i think what these guys gave you for the second half of the year gives a lot of guys on the sidelines a chance to say i can buy this stock.. i think we've seen that throughout the tech sector. but, again a very complicated tech rally. >> obviously we've got the china stimulus. we've got a lot of commentary saying that that has kicked in, increased demand. >> not only the current advantage and the huge market share, but the chinese government on their side. google has filed to become a local company in china and play the game and played by the rules there, which are ever changing. the china story last night, gdp at 7.9%. slightly better than expected. some people are a little

concerned. bottom line, china is alive and well. the stimulus is working. that's given everybody in the commodity land -- and that's in another part of the conversation for today -- a reason to rally. >> let's button this up. karen, you own hewlett-packard.. based on the fact that you think they're being very conservative does that mean that you think tech is going to continue its rally? >> well, i like -- i like hp. i'm happy to own it. i wouldn't be surprised if it trades up tomorrow. there is some that you can infer from what ibm says, but a lot of ibm's business is different than hp. it can't be bad. at worse, it's neutral. it's probably positive. >> if you own the cube, let's say, what is the smartest move in terms of not wanting to get out necessarily, but at the same time we've got lots of earnings ahead. >> it's more diversified as well. you've got a group of 100 different stocks.. with ibm, i agree with joe. i like it long-term. i wouldn't necessarily go out and just buy it here.

you know, look out in august, out in september. something like the 100 puts. if you sell the 100 put, that gives you the right to buy that stock at 100. >> jpmorgan beating this morning. it's jumping 36%. shares did fall. we should keep in mind that jpmorgan has had a tremendous run this week on the back of goldman sachs' earnings. we should focus on what jamie diamond has to say about credit losses. jamie, if you're listening -- >> and he's hot in the ceo -- >> exactly. the best of both worlds here. >> they're down 13 cents. considering the run that it had moving in and the expectations being so high, particularly after goldman sachs hit the ball out of the farc earlier in the week, this was pretty good. but they did have big credit losses. they did talk about continuing credit losses, particularly in the consumer and commercial area. but, but, but, but you can see that their reserve -- they

really have built a pretty big cushion, much bigger than their competitors in terms of their reserves. that's important because that means that that provision doesn't need to be so high going forward and then you can really start to see earnings power. so i thought it was pretty positive. certainly some pockets of, you know, uncertainty about the economy, but pretty positive. >> i thought what was very interesting was jamie diamond's comments on commercial real estate. he basically told you the concerns he has still lies with the regional bank. he threw him right under the bus and said, look, this is where our exposure is with wamu. our exposure is less. those regionals have a tremendous amount of exposure. the jpmorgan trade lines up goldman sachs. look at what goldman sachs did again today. it again just shows how beautiful goldman sachs is in this beauty pageant. it's a megan fox. >> well said.

>> let's take a look at jpmorgan and what he had to say in the context of citigroup. all of these banks are going to report in the next week or so. >> well, i think that -- sure. first of all, he said credit cards aren't going to make any money next year in 2010. that's very important. >> hold on, tim. we want to go to tyler mathieson who is at the breaking news desk. >> thank you very much. as you probably know, the long-time bear analyst was given credit today for helping the market on what some interpreted as an improved economic forecast from dr. roubini. but he has just in the past few minutes issued a statement saying that, no, wait a minute, not so fast, folks. it's been widely reported today, he says, that i've stated the recession will be over "this year" and that i have improved my economic outlook despite those reports my views expressed today are no different than the views i have expressed previously and if anything, my views were taken out of context.

what he goes on to say and to all of you is that he expects a below trend recovery, the possibility of a "w" shaped recession, a very flight recovery maybe beginning by the end of the year. he says that what he originally predicted was a recession that would last roughly 24 months. he says we're 19 months into that, so roughly five months from now, we should be ending the recession and beginning a recovery. he also says that he thinks that unemployment will continue to rise to close to 11% before peaking sometime in 2010. he concludes, folks and i'm sorry to be long-winded here that, yes, there is light at the end of the tunnel for the u.s. and the global economy. but as i have consistently argued, the recession will continue through the end of the year and the recovery will be weak and at risk of a double dib. so there you hear from mr.

roubini himself saying that maybe he was misquoted and that he really hasn't changed his view that much at all. >> so he's still dr. death. >> all right. >> that's actually nice news. it's consistent with what he has been saying even the last week. i was doing research on his stuff when i heard everyone attributing this rally in the market to him. less than, you know, a week ago he was on a big bloomberg panel where he went out of his way to saystraits. >> sounds like he's averaging into a bad position. >> we did throw up the futures. we're saying that roubini's initial commented which seemed at the surface bullish was one of the reasons why the markets took off shortly after 2:00. he's taking it back and he sounds perhaps even more negative than he has been in the past. we're seeing the futures pull off just a touch there. >> you've got to admit it's pretty funny, the idea of hundreds of billions of dollars of value creation because of him being taken out of context.

>> i don't know. i -- >> i think we -- >> maybe we gave him too much credit. ibm, after all, is the biggest weight on the dow. >> you also had relief coming off the capitol hill testimony this morning with paulson. you have follow-through into these numbers. i don't put that kind of weight on roubini.i. i think that's the dog and roubini is the tail. >> it's all about roubini. that's nonsense. he made a bad call back in march. tell me where the next 100 points are on the s&p. >> wow. >> all right. next right here, c.i.t. group is in limbo. it's trying to work out a deal for funding. how bad could a c.i.t.

bankruptcy be for the markets? some market watchers were saying that the softness that we saw in the retail index was in part due to the concerns that these retailers would not be able to get a factor. that is a party in the market that essentially buys receivables and gets paid later on. they buy the receivables at a discount and get paid later on. the problem is if the retailers can't find somebody else to do this for them, they might not be able to buy inventory or pay payrolls. karen, what is the assessment? >> well, you know, it's interesting. one man's systemic risk is another man's -- >> that's true. >> it's the sentiment that makes it. three months ago if you'd had this same new, c.i.t. on the precipice of unwinding, that would be really have been terrible news. i think now the credit markets have improved dramatically. there will be other factors who will step in and who could do that funding that's so important for the retail for the fourth quarter. so i -- and the longer this goes on, i mean, it's only a day, but

if you're a financial services company, that is an eternity. they can't survive much longer. >> your boyfriend said that the second -- >> be specific. who was it? >> not carl icahn, who is very jealous, by the way. but the effect on banks was not going to be that big of a deal. he went out of his way to say that. i think the systemic affect is something people are comfortable here, but the retail affect is very large. >> you have to believe that the feds, the treasury, have stress tested c.i.t. right now to see where they stand. they need about $4 billion. they're a top recipient as well. you may have your first top recipient actually default. >> i say they go under and their stuff gets absorbed. somebody else will step up to the plate. >> all right.. let's move on. which roubini do you agree with? the 2:00 p.m. roubini or the 5:00 p.m. roubini. >> is that the poll of the day? >> you can log on to cnbc.com to

tell us what you think. but first of all, michael joins us on the fast line. so, michael, we got clarification from good old dr. doom here. we're 19 months into a 24-month recession. where do you stand on this? >> sort of uncomfortable. i was going to be more bearish than dr. doom himself. i feel better that he had clarity on that. the nber may say the recession ended in q-3, but future growth will be very, very anemic.. but there's no way we have solved the country's problems. there is no way the worst is over. let me give you some statistics. total non-financial debt is still increasing. it's now growing at a 4.1% annual rate. total debt as a percentage of gdp is at 361%. that, by the way, is an all-time record high. so interest rates must rise

because of the record treasury issuance and the economy is still increasing leverage. and it cannot prosper within this rising rate environment that i perceived. >> michael, what do you think about labor market? that, to me, is the key here. we've got jobless claims today that gave some relief. one of the positive things that happened today. what do you think about that? where does unemployment go? >> that's an indicator -- and the rate is a lagging indicator, but we have some statistical noise on the seasonal adjustments. we'll have to add probably 100,000 jobs in the coming weeks because of the factory workers. the gm workers that are not going to be hired back. so, you know, i see problems down the road. you see, all our debt issues are being compounded by the fact that we're going to have a national health care plan, we're having higher taxes down the road. all you've done is manage to hold in abeyance the eventual

day of reckoning. i have no confidence in ben bernanke. this is a gentleman that told you the subprime mortgage crisis was going to be contained. and it brought the entire financial industry to its knees. this is a gentleman that panicked and wanted to monetize the curve because rates hit 3%. does anybody have any confidence in bernanke? i don't believe that for a second. >> michael, got to leave it there. >> he's worse than roubini. >> for ben bernanke's sake. let's see what was going on on the trading floor today as congress laid into hank paulson. many of us got a kick out of how worked up the lawmakers came in paulson's inability to speak into the mike correctly. >> if we give you a letter -- >> mr. paulson, please pull the mike closer to you. >> sorry. i had -- >> mr. chairman, will you ask

the witness again to speak into the information. >> mr. paulson, clearly you're moving back and forth. is there enough slack in the mike? >> here we go. i got it. >> if you pull it back that direction. >> mr. paulson, we're having problems hearing you. >> yeah. >> that's an effective way to communicate, by not saying anything. >> that was the word on the street. coming up next on "fast money" -- we'll find the better play than oil right now. the liquidator's red hot stock of the day. welcome to the now network. population 49 million.

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remember earlier in the day he said that the worst is behind us in terms of the economic and financial conditions. well, just about 15 minutes ago he came out and said those comments were taken out of context. he has not changed his view on the economy that he has predicted that we were in a 24-month recession, that we're 19 months in, a "w" shaped recession is not off the table. we have a little bit of softness in the futures. we had an earnings report out of google that was disappointing. take this any way you want to. >> understand one thing. this is a balance sheet recession, okay? you're now looking at the consumer that i will give you will clearly be challenged. however, what earnings are showing you right now is corporations were much better prepared for this than we thought. there is resiliency in these corporate balance sheets and i believe that is what will take us out of this. >> all right. >> let's also talk about a move of 870 to 940 on the s&p in four

days. >> there's a reason.. >> well, we had -- i think the sure-fires, if there is such a thing, tomorrow we've got bank of america, citi, even ge, the parent of this network, is somebody that people have a lot of questions about even though they are on a much different place. as you look at the way the market has trailed off into the after hours, taking profits towards the end of the day was not a bad thing to do with a lot of uncertain earnings tomorrow. >> let's get your earnings edge on general electric, the parent of this network. it's up from the bell. the stock was down this worst, among the worst performaners in the dow jones industrials. peter, great to have you with us. >> good afternoon, melissa. >> investors are concerned about ge capital.l. they had a presentation back in march. want to throw up this full screen. they made a bunch of assumptions on the economy.y. they said this is the most adverse case in order for ge

capital to break even. do you believe that ge capital is on track to meet these adverse conditions? >> i think they can meet the adverse conditions. and even if not, they can survive through the adverse conditions. right now, the market is very pessimistic about that financial services business and, in fact, i think there's a lot of implications that it has a negative value to the company and that argument can very easily be made. and if they can get through another quarter including an announcement tomorrow that this is a viable business, i believe that the stock starts to strengthen from here. >> peter, it's karen. what do you think of the implications of a c.i.t. bankruptcy? they're the biggest competitor in that business. good or bad for them? >> i think it could be a mixed blessing. i've been trying to think through this myself. c.i.t. is about 50 billion in assets.. ge capital is over 500 billion. i think ge could probably

leverage a demise of c.i.t. and if it wasn't for the fact that they have to build up their own capital and preserve their own capital, they otherwise would have been able to really take advantage of c.i.t.'s demise. i think it's probably a wash for ge. >> peter, how about the stuff that makes us excited about ge? certainly the infrastructure, all of that that's related to stimulus. what percentage of their revenue is it at this point and how excited do you get about that? how immediate is that impact? >> well, there's a lot to get excited about with stimulus spending and how it could impact ge. over $2 trillion in global stimulus has been announced. it will take some time to work through ge on the industrial side. but there is a lot to get excited about. and once you get rid of the worry on the financial services side, if they were able to do that, folks will focus in on the exact thing that you just said and i think folks will start to discount higher earnings out a

year or two or three from now, which they're not really willing to do at this juncture just because of the risk. >> peter, just to wrap this up, do you think we put in the lows for the stocks this year? >> well, i hope so. the lows were at $5. so i certainly hope that -- that that was the low. and i would tend to believe that this -- the stock can certainly hold at least $10 and perhaps trade up to the mid-teens later on this year. >> all right. peter, great to have you with us.. thanks so much. >> thank you, melissa. >> what is the trade on ge? is. >> there is a lot to get excited about. there's a lot to get excited about on the industrial side. $170 billion worth of back-log orders. you can't book those orders until they're actually sold. 120 billion worth of service agreements. 50 billion worth of equipment. that's coming down the pike.. >> that's a big reason to be excited, but 45% of earnings are from ge capital and that's a big concern for people out there.

>> i'm going to call you mrs. roubini. >> i'm just offering the other side of the argument here. >> i tell you what, i do think it's going to be 12% or 13% run in the stocks the last couple of days. i was wrong 5% ago, but i would not need to jump into this stock in the short-term. it's the show-me stock. there is a lot to be excited about. >> do you like the stock, karen? it's got a great dividend, too. >> it does? >> oh, excuse me. you're right. i'm living in the past. >> yes. >> i'm rivliving in the past. >> the dividend went up this year because the stock went down, which is not the same as -- >> no, yeah. no. >> i like your placings.. i like to have a position in the bet that i want to make. with ge, you don't know exactly what -- are you buying ge capital at negative? how much are you paying for the industrial business? i don't know. so since i don't know, i don't own it, haven't owned it. it's not my thing. >> all right. let's move on.

almost every sector closed in the dpregreen with the exceptio one. that was the fast food restaurant's yum brand. karen, you put some shorts on a couple of casual dining stocks. >> i want to say that i own yum, which was not fun yesterday. but i think that the valuation difference between some of the names like yum and burger king, which we are long, those are very attractive relative to the u.s. casual dining that has really had a huge run-up in the second quarter.r. so we are short names like california pizza kitchen, ctki is the ticker, and cheesecake factory. burger king is trading at 11 times earnings. it doesn't make sense to me that that divergeance can exist for a long time. the market goes up a lot. you have more up sides in burger king here and yum here than in either cpki or cheesecake factory. it doesn't make sense to me.

that's too wide. >> it makes sense, karen.. you have a company, cheesecake factory, everything is $15 to $20, maybe more and then burger king and mcdonald's are much cheaper and really play well into the current economic situation. when i'm in the cheesecake factory, dead. anecdotal, obviously, but -- >> were you able to finish one of those huge entrees? the portions are mammoth. next up, a brazilian newspaper reporting that the world's largest producer of iron ore was preparing to make a bid for a fertilizer firm. john najarian is here to shine light on this unusual activity. dr. j.?.? >> m. lee, how are you doing?g? >> i'm great. you look great, dr. j. tell me about the activity you've seen in mosaic in the last week. >> it's averaged about 15,000 call contracts. last friday, stock took a dump.

fell from 44 roughly down to 40. and people were just, you know, running around with their hair on fire, sort of like me or michael jackson, and those people created a buying opportunity of what will almost be biblical proportions based on where that stock has gone this week. we bought into it because over 100,000 options traded last friday. another 60,000 followed up monday of this week. a lot of that traded under people's radar, not under ours. we were on the stock and the options. and as you said, i saw that article this morning. i don't speak portuguese so i dropped it into google translate, took a look at what the article said and was delighted to see they were saying basically 59 bucks for the stock. traded up to 49 today. like elvis, i left the building. i don't see a reason to stick with this one, but i do think the focus should be stocks like agrium, potash and intrepid potash. >> thanks, dr. j.

we did call both companies. no comments from either. i guess somebody speaks portuguese out there. up next, charley gasparino is going to take us off the record.

on the trader radar tonight, wauld disney. the world's largest theme park operator was among the most active names on the nyse today. welcome back to "fast money." here's what we've got for you coming up. runner-up, which global stock eclipsed japan to be the second largest? we've got the trades on this booming economy.y. and from fab to forget about it.

how to spot a trendy product. plus, if you miss the after-hours moved in google and ibm, there are plenty of techs reporting in next week. pete najarian is calling in with your next move. first, we want to talk about paulson getting grilled today on the hill as lawmakers pressed him again on whether he threatened to remove b of a's ceo ken lewis. >> you were never aware of any backup plan. the only thing -- and you never threatened lewis to remove him or his board? >> you keep putting words in my mouth. i -- i've -- i've now told you three times and told the committee repeatedly that of course i told lewis that we would -- the fed had the authority and could replace lewis and the board. >> well, with citigroup and bank of america set to report tomorrow, how much time left to lewis and the ceo have before lawmakers or shareholders begin calling for their heads?

let's get the inside scoop from the man some call the oracle of ricoh park.. it is time to go off the record with one charley gasparino. >> on the record here, i want you to know, i am not from rego park. i was born in the brauonx, new york. i worked in rego park for a news investigative reporting team. that name is courtesy of the brilliant but deranged dealbreaker. >> i'm sure we'll get a call from beth leaven. let's get back on topic, charles. how much more time to pandit and lewis have? >> there's a lot of stuff in the press about memorandas of understanding between the two banks. these memorandums of understanding map out a plan that they have to sort of execute over the next couple of months.

and, you know, what wasn't said in these -- in these stories, at least not high enough in the -- in the pieces was that -- and i don't believe it was said up top. i must admit, i read both of them with a massive hangover this morning. but what wasn't said clear enough, at least for my drinking taste, is the fact that those mous, memorandums of understanding, are a precursor to putting a bullet through both of their heads, figuratively.. they have three months or a quarter to show some sort of improvement in the bottom line, in citigroup's case -- >> charley. >> let me finish from i'm saying here. citigroup getting rid of assets. bank of america dealing with its issues, which includes consumer loans and other things that could blow up. they have about a quarter to do that or else there will be change at the top. i'm getting this from senior regulatory officials. now, i will say this.

i believe that pandit -- excuse me, lewis is more on the hot seat than pandit.. the government -- the sort of brain trust here, the federal reserve, the treasury department, the fdic, thinks that citigroup is kind of a busted company. what they have in pandit is a ceo who is a caretaker who has to initiate a plan, which is to sell stuff. they're much more concerned about bank of america. bank of america is a huge company, biggest bank, right? it controls merrill lynch, which is a massive operation. they're really worried about bank of america now. >> charley, do you think it's fair that they only get a quarter? given what jamie diamond had to say today about consumer credit and loan losses, do you think it's fair to give these guys s three months more considering the economy? >> yes. and i'll tell you why it's fair in both cases. in pandit's case, it's fair because he had more than a quarter. the minute he walked into that job, he should have been selling stuff. he probably could have sold smith barney at that time. they have some deal with morgan stanley where they're slowly

unloading to smith barney. they could have sold it at a much, much higher price in early 2008 where he might have had a buyer. he might, might have. vickram pandit could have been busting up citigroup the moment he walked in there. instead, he chose -- >> charley, isn't lewis a case of turning on the puppet master, which is the fed, which felt that they could control his -- >> well, now, i was getting to that. i think -- so that's pandit's problem. i don't think pandit unloaded -- >> i think lewis -- >> lewis on the other hand, you have to -- look at this in context. i can't believe i'm saying this. i feel sorry for hank paulson. i've covered him for years. he's been quoted in some deposition that he had -- basically hates my guts. but i'm going to stand up for him and say this, that, you know, if you're a hank paulson and ben bernanke, you get that call in mid-december from ken lewis, like, listen, i want to unwind this deal and use the mac laws, which is rarely used. it's not used -- >> this would have been one, though, charley. >> oh, come on.

come on. >> unless you could prove and talk to some lawyers about this thad he -- remember, he did due diligence. he didn't know what was on the books. >> got to go. >> citigroup talk, jpmorgan, goldman sachs. those are the three names. >> i don't trade anything. >> we will talk to you soon. the oracle of the bronx. thank you very much. coming up next, sayonara, japan. a new country now holds the number two spot in the rankings of the world's largest stock markets.

all right. our two big stories after hours, google and ibm, a tale of two very different stocks. jim goldman has been on those conference calls. jim, what is the latest? >> yeah. this is pretty good news that both companies are trying to really accentuate the positive. this is really good news. ibm taking the time to stress the "annuity quality of our services." i mean, you know, you get into what this company does and you see the economic downturn. and when you're talking about a company that's really shifted its focus from hardware to software and services now, you've got this annuity quality,

which is this ongoing revenue stream even in the face of economic decline.e. so that's a big deal. also, the company stressing the double-digit pre-tax income growth in software and services as well as the hardware side of ibm's business beginning to stabilize. and, you know, this company continues to spend and invest, they say that they are in perfect position now so that when the economy does turn around to basically get in line and get themselves on an acquisition trail and really be in a nice position because of the health and welfare essentially of their very strong and positive balance sheet. same thing also over at google. things continue to look very good over there. the company says that it appears the economy is beginning to stabilize, but eric schmidt did come up a little short as far as what the company sees in terms of an overall economic turn-around. i should mention going back to ibm for a second, 17 deals signed on the quarter. over 1$100 million.

really this idea of a slowdown in i.t. or enterprise spending, ibm certainly is not feeling the pinch there. going back to google, the company is saying that mobile is an increasingly important part of the company's business, and it all looks good on that front. you know, this is -- this is good news. we're seeing google trade down a little bit, probably because that whisper number on the top line was substantially higher than what google had reported. remember, that expectations were so low headed into this quarter, i think a lot of people are looking for a top-line beat and it really didn't happen to the extent that some investors were hoping for and we're seeing the residwe residuals of that now. >> let's take a quick check on ibm. this is going to be the story of the day when it comes to the s&p as well as what the nasdaq looks like. if we show there, we've still got that after-hours -- >> i think you -- the difference you thought it was 5, i thought it was 1.5. that's the -- after hours since the number, it spiked about

1.5%. on the day it's up five. >> taking a check on google, we're book at ti're down about . that's the impact. coming up next, we'll talk more tech with the one and only pit boss. stay tuned. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free".

that music can only mean one thing.

it does sound kind of porny. time for trading after dark. it's the biggest night after action. the real tech titans out next week. apple, yahoo, microsoft all reporting. pete najarian, the pit boss. >> the porn boss. >> the music. >> the porn boss. >> he is sitting at his trading desk right now. he is here to talk tech trades. pete, what do you do aside from listening to this fine music? >> i got to tell you, that music does get you in the mood for something.g. i'm not sure what it is. >> something. >> i think it started with intel. clearly everybody has been talking about that. then you continue this cascade. oracle kicked it off the week before. you look at software. then you get more hardware look. i think as you look forward to next week, texas instruments stands out as monday right after the close. they already have given us a little bit of a preview.w. in june they raised their profit forecast. what we've got to hear from them now is because of the fact they've lost out with folks like

nokia, where are they going to see some of that growth? they've clearly put themselves still in front of the -- excuse me, the consumer products area. if they can get some growth over in china with their chips, that will be huge. they're still involved very deeply in the cell phone market. they've got the dlp products as well. i think that will be a very, very key number. intel, i think, we all came into that knowing that was going to be strong. now can texas instruments follow that up? if they can, then the smh has more room and they all look like they're exploding to the upside on a complete break-out right now. >> all right, pete. unbelievable music here. >> how we doing, pete? >> okay. what is the -- >> how did you know? >> oh! if only he had a web cam. pete, thanks so much. get back to whatever you were doing. >> the porn boss. >> absolutely. great to be with you guys. >> quickly, what is the trade

given that we have strong results out of ibm and intel. does next week look fairly good, karen? what do you think? >> you know, i don't trade my portfolio a lot based on one week's earnings. it's really one piece of data. a mosaic of a lot of data. i would not be trading around. >> all right.. and following the theme of porny kind of music, let's do some action here.e. poll of the day. tonight's question is what is the best buy before earnings next week? log on to cnbc.com right now and tell us what you think.

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announcer: captioned telephone - enjoy the phone again! welcome back. usually at this time we tell you who made the most money in today's serksz but tonight we are going to tell you who lost the most money today. that would be river source money management's division of ama amareipriz financials. the stock down more than 70% today. they stand to lose a whopping $54.9 million. all right. "final trade" now. tim? >> north american platinum. the gift that keeps on giving. >> karen and i have talked about natural gas. a way to play the energy exposure. it bottomed today.y. >> karen? >> i'm going it walmart. >> i'm going with mosaic.

i think the deal gets done higher if one gets done. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 p.m. for more "fast money." see you tomorrow night.