don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed back ache or muscle ache. to avoid long term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision... stop taking cialis and call your doctor right away. announcer: 36-hour cialis or... cialis for daily use. so when the moment is right, you can be ready.

know that connectivity is about reaching further, faster than anyone else. together, we're helping to shape the exchanging world. nyse euronext. powering the exchanging world. let me give you an update on a very important story. goldman sachs is in talks to acquire the u.s. treasury department in what some on wall street are calling the biggest blockbuster deal in the history of finance. goldman sachs confirmed today it was in talks to acquire the t r treasury department. the merger between goldman and the treasury department is a good fit, because, quote, they're in the business of

printing money and so are we. the goldman spokesperson went on to say the merger would create efficiencies for both entities. quote, we already have so many employees and money flowing back and forth, this would just streamline things. the spokeswoman went on to say, the only challenge is to try to figure out which part of the treasury department we already own. that is tongue in change. it's a wonderful thing from sa . let's rock and roll, dennis. >> thanks for being with us. good to see you. "cnbc reports" starts right now. tonight on "cnbc reports," have a good week? wall street did. and the same is probably true for your portfolio. the dow, s&p, and nasdaq all scoring 7% gains.

you heard it before and you'll hear it again now. >> this horrible, frightening recession is ending now. >> as the market jumps, we have new evidence tonight dennis was right. it was a week full of big earnings reports and next week is even bigger. we're getting you ahead of the game tonight. we're also picking winners. some of the biggest names around are naming the names you should consider buying now before it's too late. also tonight, why this mayor is so happy. and is encouraging everyone else to get on board. sounds like a new friend for dennis. this is "cnbc reports" on friday, july 17th. and we have an hour full of reasons to be optimistic. it all starts right now. good evening. i'm dennis kneale. hey, is this a happy day or w? t first of all, it's friday. and second of all, it's been a terrific week for stocks, and the economy, and third and best

of all, where was the sell-off? i thought for sure we would take a big profit taking plunge today and that leads to the most compelling question of the day. should you take some profits, sell some stocks, and spend the upside to take the kids to disney world? is it time to sell? let's get to the real deal with dennis kneale.. all right. so is it time to sell? a couple bulls and bears will give us their views in a moment. i've got two answers for you, first of all, yes, it is time to sell if you are a fraidy-cat day trader flitting in and out of stocks like some hummingbird at a hibiscus bush. but, no, it is not time to sell at all if you are a long-term investor who sees great blue chip brands at prices that haven't been this cheap in a decade or more. that's how happy i'm feeling today. in fact, it's so happy a day that one city has even made it official. the mayor of durham, north carolina, declaring today a day of happiness.s. he says it's, quote, most

appropriate due to the current affairs within our nation. i'm guessing he means because these times are so bleak. but i'm going to take it the other direction. it's because maybe happy days are here again. let's start with stocks, okay? now, take a look at what happened just this week. this is a one-week stock chart for the dow jones industrial average, up 7%. inject one week, very nice. it seems like we should have had that big sell-off, but it didn't happen. and you would have thought they might have before friday and before we had to leave for the weekend, instead, the dow's up another 32 points today. and not one dog in those 30 stocks in the dow had a down day this week. the nasdaq, it basically held flat today, right, and it is up 7.5%, just about on the week. i'll take it. and the broader s&p index, it held its own today too, up or

down just a teensy bit and it is just shy of 7% return for the full first week, thank you. and i've got just two more charts of hope for you. the first is a real surprise. leading economic indicators. now, they come out on monday, and today one of my favorite doomsday economists, joe lavorgna of deutsche bank, he's saying the lei will make its third consecutive rise. we've already got march, april, may, but he's thinking that baby comes in somewhere up here. we'll take it. there's a little bit more hope. and that could mean that i'm right, guys, this recession is over right now. and then there's this.. new housing construction starts are out today and they are up to 582,000 new homes a year. that's the highest level seen since november of '08 and that is right after this entire mess unraveled. look at that, on housing starts. and you know what, every year in the u.s., we create 1 million

new households. even at 580,000 new ones, we're still way below that. there's room for growth there. the market got a little pop today. at least the dow and nasdaq did, capping off that 7% gain for the week. let's ask our bull/bear crew what to expect next week. our bulls, david gurs, chief investment officer at high marks capital and our resident bear is with us, michael pinto, chief economist at delta global. bill spiropoulos, let's start with you. what do you think? 7% in a single week?? you doing some selling here and locking in some profit? >> no. and do what with it? hide it in a money market? you don't make -- you don't create wealth and maintain purchase power by hiding it at zero percent. and history will show this is a time to buy the careful, select your targets wisely and accumlay. >> you're staying all in. bill, would you put money into an index fund and follow that or would you rather pick your

stocks? >> i would never index. >> but you're a pro. what about david gurs? are you selling and taking profit office the table or doubling up and staying on there? >> for our high-mark clients, we're looking at 1,200 for next year. we may have some volatility between here and there. we always usually do when we have these kinds of events, but the amount of stimulus that's in the pipeline, what's happening in emerging markets, which really didn't have the kind of credit overhang that we did, we see a lot of optimism out there and are really procyclical in a lot of our -- >> david, 1,200, that's s&p, right?t? it's around 940. where is s&p end this year? because i have a bet with jerry schilling, i bet it ends at 1,038 or higher, he says below. >> i want some of that, dennis. >> okay, go ahead, you first. david. >> i think we could top out above 1,000. >> okay. good. bill, how about you? am i going to win my bet with gary schilling? >> i'm with you all the way.

>> will you take half of my -- if i lose, take half? >> yeah. >> michael pinto. to the very passionate bearish guy. michael, you are bullish on some other things. >> i'm making a ton of money. the s&p 500 has gone nowhere since the beginning of the year. did you know that china's up 75%? i have a copper stock up 100%, a gold stock that's making 50%. i'm sitting here making millions. >> how did you do this week? >> who cares how i did this week? we're headed for a period of protracted stagnation. that's not an environment you want to go hog wild and buy american stocks. >> a bullish guy, step me and help me with michael.. somebody smarter than me. bill? >> if oil's going to go to $150 a barrel, you might have that issue, but i don't see that happening. i think the dollar remains strong. i think interest rate -- >> the dollar is weak. the dollar has gone down since march, about 12%.

>> well, let's talk about the last 12 months. the dollar is not going to -- >> let's talk about the last nine years. >> actually, let's talk about this week, guys, because i'm in cable tv and let's go forward. david, get in here. >> the big thing here is earnings. this is really what has set off this rally. it's been the thing we've been waiting for. a lot of strategists are looking for -- and economists, are looking for an end to the recession, some time between the end of the second quarter and the end of the fourth quarter. so it's a matter of timing now. it's not if, it's when. and i think the big issue is -- >> michael, what about -- >> if the economy is such a wreck, michael, the way you say it is, how are we having earnings surprises to the upside? >> first of all i believe the recession is going to end in q3, q4, but you are still going to have a period of protracted stagflation.n. you can't cut overhead forever

and think you're going to grow organical organically. i'm sorry? >> you can cut it though, thousand, and when you do start to grow, there's a great snapback in demand and a great snap up in -- >> michael, michael -- >> you must love higher taxes, love cap and trade, and you must love nationalized health care insurance. >> michael, is there a way, because i know, baby, i just know, is there a way that you could be right two years out, but you're wrong now? is there a way that stocks rally and indeed another -- >> yes, yes -- >> and then it go to hell two years out. >> no nominal terms, i think stocks could rally? >> so are you buying? >> i just told you, i'm long commodity stocks and foreign stocks, and commodity curren currencies. while you're waiting for the s&p to go up 2%. >> you're not in tech and financials, right? >> no. they're legacy assets are still eroding and there's no private

demand for money growth.. >> bill? give us some hope here. he's killing my hope here. come on in. >> listen, the american people are resilient. they're balance sheets are being cleared and cleaned. we're not a nation of destitute people. it's a strong, rich country and i'm tired of hearing about -- >> what has that have to do with anything? >> it has a lot to do with everything. >> i'm more american than any one of you guys. i love america. what does that have to do with making money? the hang seng is up 25% this year. >> it has to do in part with the mood of the country and the fact is, the worst is behind us and people are starting to feel their oats again.. and that is a good thing for the market and a good thing for the economy. >> i hope and pray you're correct. >> one of the interest things -- >> let's close it there. that's one of the nicest, most hopeful things that i've heard michael pento say since he started coming on this show.

shall we leave it there? let's wrap this now. >> one more thing about earnings. >> bull, bears -- >> one more thing about earnings. >> the bears are going to -- >> we have to look at the complexion of earnings. one of the fascinating things that's going on is if we look at 2008, 28% coming into 2008 of the market was financials. financials down 117%, we only lost 22% of the market. that means the nonfinancials were up 5.8%. the worst market we've experienced in 2008. now everybody's sharing a bigger piece of the pie going into 2009 and nonfinancials are expected to be down 29%. >> i like it, but in the future were more emotion, less data. more emotion, less data. thank you very much for being with us tonight. have a great weekend. a little later tonight, we've got action for you. what you can do about all this. our panel is naming names. the stocks you should buy. the other stocks you might want to steer clear of. but up next, real deal squad

gets into the action. we have two very hot topics lined up. health care and the president's speech today really steamed me up and we're going to talk about goldman sachs, jpmorgan, do they make too much money? is there any such thing? julie ra ginski thinks so and i'll have at her next. that leaves fewer pieces behind? fortunately, there's charmin ultra strong. its diamondweave texture is soft and more durable, so compared to the ultra rippled brand,

it holds up better. fewer pieces left behind. charmin ultra strong. all around the world, men with erectile dysfunction have asked their doctors about cialis. ask your doctor if a cialis option is right for you because in addition to 36-hour cialis, there's another dosing option: cialis for daily use, a low-dose tablet you take every day so you can be ready anytime the moment is right. man: tell your doctor about your medical condition

and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed back ache or muscle ache. to avoid long term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision... stop taking cialis and call your doctor right away. announcer: 36-hour cialis or... cialis for daily use. so when the moment is right, you can be ready.

all right. thank you. recession is over.. i keep insisting it.

and this week's earnings report makes one thing abundantly clear. there are two now twin towers now loom over all of wall street. jpmorgan chase and goldman sachs are astride the top of a much consolidated industry. together, they earn $6.1 billion in net income in the june quarter. so can't we be happy for them? isn't it good for america, good for the economy, good for the other businesses that get funded by these two titans? apparently not, if you're a pious, anti-capitalist liberal who is furious the banks aren't in pain and wallowing in their federal bailout. and with that unbiased introduction, let's discuss it what the real deal squad. joining me now, our julie radinski, leslie marshall, host of her own radio show, the daper jack burkman in a fantastic shirt and tie combination, and republican strategist, and ben furguson, and a pretty good

shirt/tie combination of his own. julie, let's start with you. aren't you happy for them? aren't you happy to see the economy get better and those banks come out of trouble and earn a lot of profit for tharlds? >> i'm happy for my friends that work at goldman sachs. they're going home with a lot of money that's backed by the american taxpayer. these are commercial banks that are taking the same kind of risks they were taking before and their risk taking is backed by american taxpayer? >> what's your evidence they're taking the same risk? their risk is half of what it was -- >> if you look at jpmorgan, their derivatives business has jumped tremendously. they're making the money the old-fashioned way. the same way they made it a year or two years ago? >> what's the problem with that if they control risk well? >> do they control risk well? we had to bail them out the last time they did this -- >> that is a lie. we didn't bail out jpmorgan, they didn't want that money.

>> here's the problem with it. i agree with you, goldman and jpmorgan are model citizens, but here's the broader problem. we have lost the future by bailing out those institutions like merrill lynch, citigroup, and aig. those institutions should have been gone away. i'm a bull, i'm with you, i'm an optimist, but imagine how much rosier this picture would be today if the government had never gotten involved? >> that is just crazy. i've got to tell you, as conservative and pure as it is, that is just crazy talk. our economy would have been in terrible shape.. go ahead, leslie. get in on this. >> well, i'm sorry i didn't wear the good shirt/tie combo like them, but maybe if i worked for jpmorgan and goldman sachs, i could tafrd to buy expensive shirts and ties. you have to look at history and history's repeating itself. we're having a great old party because of a great week and we have to chill out. we're so crazy, knee-jerk reaction, whether it's positive or negative americans, and especially when it comes to the market. listen. i don't agree with what happened with the bailout.

it's my tax dollar as well. but this is what's happened, folks, and this is where we're going. am i saying that as a liberal democrat i'm against all capitalism, no, and not all democrats are. and by also saying i'm against jpmorgan or goldman sachs turning a profit, no. but it's how they do it.. and if they do it on the backs of americans -- we'll be right back where we are today. >> i want to throw to a chart. leslie, i think you look absolutely fabulous tonight.. but i've got three numbers, and i think they are rather pertinent to this debate. now, the first number, let's see that. the first number is $9 billion. all right.t. can we get on the screen or something? maybe not.t. $9 billion.n. you know what that is, guys? that's how much jpmorgan, goldman and the other banks paid the fdic for the government-guaranteed loans. now, j.p. and morgan and golden, they haven't used that program since last march. $9 billion profit for the fdic. second number is this -- $5 billion. that is how much federal income

tax goldman sachs will pay this year, most likely. and the third number is this -- $19.4 billion. that's how much money goldman paid in federal income tax from 2001 to 2007 when it was the eighth largest corporate taxpayer in the country. julie, when goldman sachs makes money, our federal government makes money, and i don't think goldman should be apologizing for it. >> dennis, i'm all for goldman making money, i just don't want to be backstopping their risk taking. >> -- the risk taking? >> excuse me? >> how are you backstopping -- >> because the fact that their debt is backstopped by the american taxpayer. >> see, that's wrong. >> how is that wrong? >> the fdic -- hold on a second. >> -- paid for with bank fees. not paid for with taxpayer money. >> dennis, you and i -- >> hold on a second. let me ask this question to everyone out there watching right now. the main thing that happened here is people got some money,

they paid it back, the government made money, and they made money, and made money off the interest. when did that become wrong? >> i'm all for them making money, ben -- >> but you don't like the way they're making it. >> excuse me, can i -- >> wait, wait. >> guys, we've got to go one at a time. julie first, then jack. >> even hank paulson, yesterday, when he was testifying, the former chairman of goldman sachs said this crisis was not created by the american people, it was created by the big banks. implicitly in that is his own big bank, goldman sachs -- >> and therefore what?! >> they have not changed their pattern of behavior -- >> goldman sachs' risk exposure, the var, which says if all of the bets went against us in a ten-day period, how much would we lose? they would lose about $250 million, but goldman sachs' risk is half --

>> which means -- >> we're about to break. jack, take it home for us. >> here's the reason for julie's frustration and obama's frustration. they wanted to keep their hooks in goldman and morgan for years to come. >> oh, no. give me a break. >> they don't like people making this much money. >> oh, give me a break. >> we've got to wrap, guys. the worst thing about all this is, the government gave these banks money, loaned it to them, they did, and then when they make a profit at it, everyone's upset. it's hypocritical.. real dealers, don't move.. we're transitioning to another kumbaya topic, health care. president obama said something today that got me so steamed.d. i'll share with it with you next. and coming up, next week's earnings season. we are back in that proverbial flash you always hear about.

hi, may i help you? yeah, i'm looking for car insurance that isn't going to break the bank. you're in the right place. only progressive gives you the option to name your price. here. a price gun? mm-hmm. so, i tell you what i want to pay. and we build a policy to fit your budget. that's cool. uh... [ gun beeps ] [ laughs ] i feel so empowered. power to the people! ha ha! yeah! the option to name your price -- new and only from progressive. call or click today.

a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength...

president obama today made what struck me as a desperate appeal to keep his $1 trillion health care facelift alive.. and that earns him top spot in tonight's real deal sound check. the prospect that health costs will soar rather than decline as obama insists, that is scaring the bejabbers out of a lot of us. the signs and troubles hit earlier today, splashed across the front page of major newspapers, and now listen to bam insist all is well, not to

worry, my fellow americans. it's tonight's real deal sound check. >> i've said that health insurance reform cannot add to our deficit over the next decade, and i mean it. let me repeat. health insurance reform cannot add to our deficit over the next decade, and i mean it. >> yeah, i'll bet he does. what a joke. he is in denial. let's heat this up with the real deal squad. back with me are julie, leslie, jack, and ben.. got to tell you, guys, everyone wants to fix health care, but nobody focuses yet on how to make it more efficient, how, for instance, to eliminate $700 billion a year in unnecessary medical procedures, cited "the new york times" today, how to limit ridiculous jury awards for malpractice so daughter and soc make dozens of unnecessary steps. the main focus, how badly to soak the rich to pay for it. leslie, isn't there something

wrong with this picture? >> you're going to freak out, but as a liberal democrat, there is something wrong with this picture. in addition to being married to a physician, i own a medical center, so i'm on both sides of this. and health reform is necessary, not only for the health, literally, of this country, but financially for the health of this country. the problem with this plan, is that it does not address some of the problems, the litigious of our society, the lack of prevention in our society -- >> the problem with this is the produce the quote/unquote save welcomes the government will have to spend more than the savings are. and you say, where's the logic? there is no logic. let me tell you what this is about by obama and hillary clinton and people like julie, what they want to do is redistribute wealth. let me tell you something. >> amen. >> i'm flattered you put me --

no. they claim to be the richest country in the world.. everyone should have health care. >> let jack health care. >> britain does, australia does. >> the problem is we're thinking about this as a health policy issue. it's not a health policy issue. it's a wealth redistribution issue. they are afraid to redistribute wealth through the tax code. so they do it through the health system. >> if i may just talk to julie on something. julie, obama keeps telling us that health care, it's really important to the entire country to make health care available to the 45 million uninsured. how come only 2 million high earners are being asked to pay for this, julie? >> well, you and i discussed this many, many, many times and i'm not a fan of the health care plan that passed the house. i would rather see something that comes out of the senate finance committee that doesn't put the surtax on. if we don't do something -- here's where obama is right -- one-third of our federal budget, of our gdp is going to be spent on health care costs -- >> so what?

we have the best health care in the world. so what, guys. >> let ben speak now. >> look at today. today was about desperation. it was the first time that i've seen this white house be desperate. you had this morning questions coming -- >> oh, ben, it wasn't about desperation. it was about realistic -- >> leslie -- >> this morning you had -- >> let him finish, leslie. >> this morning you had the liberal media for the first time actually look at this and realize that the numbers don't add up and we can't pay for this and it doesn't save any money. that's the reason why the president cancelled the white house briefing to come out to and literally bully pulpit and say, you're wrong, it's not going to cost more money to control it. you're in trouble -- >> he's not trying to save money. what he's trying to do is shuffle money down to the bottom 20% of society. he's not trying to save any money. >> can we just stop with the hyperbole for a second and the conspiracy theorys. let me just say, listen -- >> the congressional budget office is not a conspiracy theory. >> are you going to let me speak. >> julie, you can pick it up

next. but ben just mentioned the congressional budget office and we have a rather -- ben, i'm talking, it's my show. hold off. if we can get this one quote here, up on the screen. from the guy who runs the cbo, the congressional budget office. the director, doug elmendorf, says obama cost saving are elusive and he says it raises the amount of activity that is growing at this unsustainable rate. julie, the fact is, if you insure 45 million more people, our health care costs are going to go up, not down, unless you fix those other things you talked about. >> listen. elmendorf came out and said this and response to that, barack obama came out and threw down the gauntlet and said to congress, you need to do better. >> he got into a snit. >> he's agreeing with this guy. >> no, he's not.

>> he's not?! >> obama has a history of not telling the truth on this. during the primary with hillary clinton? he said that health care would cost the federal treasury nothing, net zero. he has lied about this issue, he has a terrible history of not telling the truth on this issue. he's changed his story four or five times. >> how is the president lying if this congress is not complying with what he's requesting? >> exactly. >> how is the president lying if congress -- >> maybe you forgot the branches of government. he's only one branch, executive branch and president. he can propose and he can make speeches, but the house and the senate have to draft these pills. >> oh, come on. >> you can tell when the president's lying when he tries to put a fake time line on a bill that he's trying to slam down our throat -- >> artificial time line. >> i don't think it's an artificial time line. >> leslie, go ahead. >> -- to his constituents. number three on his list, to promise goals to his

constituents. it is necessary. i don't understand why you want this country to become the haves and the have-nots. and that's not where we're headed. in health care, absolutely. medicare did not bankrupt america. >> we're wrapping here so now we're stopping talking. great, excellent, nicely done. a little more cutoff next time. all right, thanks very much, guys. great job. have a great weekend. and there's still a lot more to come tonight on "cnbc reports." it's been a big week for earnings, but wait until you see what's on tap in the week ahead. we're giving you a look ahead. something nice to think about over the weekend. those numbers will have a big impact on trading. also tonight, we're picking winners. our focus, retail, financials, and the tech sector. this is "cnbc reports" on friday, july 17th. we're back in two minutes.

this is humiliating. stand still so we can get an accurate reading. okay...um...eighteen pounds and a smidge. a smidge? y'know, there's really no need to weigh packages under 70 pounds. with priority mail flat rate boxes from the postal service, if it fits, it ships anywhere in the country for a low flat rate. cool. you know this scale is off by a good 7, 8 pounds. maybe five. priority mail flat rate boxes only from the postal service.

a simpler way to ship.

welcome back to "cnbc reports." here again is dennis kneale. all right, you want some real deal? let's talk real earnings. cnbc is earnings central and we are gearing up for the meet of the season.

so far, 55 companies in the s&p 500 have reported for the last quarter. and of those 55 companies, 71% have beaten estimates. not bad. 20% have missed estimates, you see here. and 9% were in line. that doesn't say, just because you beat an estimate, that doesn't mean you have earned d money at all. still, better to beat estimates than it is to actually miss estimates. so we'll take it while we can get it. the companies that beat, they might have still posted losses, as i said, but that's all right. we'll take it. this is pretty good news overall. among the highlights this week, we've got ibm beating estimates. the stock is up almost 15%. is that a single week? look at that, oh, my gosh. 15% in a single week. it's time to buy some more tech. ibm earned $3.1 billion this quarter. goldman sachs got things going this week. big number, $3.4 billion last quarter. this is a small firm earning an

incredible amount of money. stock up 10%. you see right there for the week, jpmorgan, up 14%, that stock is this week, after posting those results. hip hip hooray for the banks. they are back, at least two of them are. now, $2.7 billion in earnings for jpm. and next week is a huge earnings week. i'm watching microsoft, because as goes microsoft, so goes much of tech. that stock up 8%. and microsoft is almost always unloved and almost never goes anywhere. apple, a consumer stock and reports next week as well. it's up almost 12%. and that's off of very high, lofty stock price anyway. and we've got caterpillarcaterp real indicator for manufacturing. other companies buy caterpillar gear to buy other stuff.f. we're watching that one too. company reports next week. this week, the stock up 11% for an old industrial, you know, iron company. how about that? so what's surprisingly positive

earnings might we see next week? let's pick some winners. joining me on the financial and tech centers, john altinger. and on retail, eric beater, senior vice president at breen, murray, caray and company.y. where should we start off with? we'll start off with retail. go ahead. >> good morning. >> good morning. or good evening. >> good evening. i think the retail earnings here for q2, when we look at it, we'll see most of them come in august, but i think it's going to be a replay of q1, where you'll see relatively anemic topline growth and the up side will come through cost savings. we're'ing that retailers have taken it to task to cut back on inventories, to cut back on people, to cut back on stores and really that will get them through very low expectations, just like we saw in q1. >> what retailers are you looking for to have any kind of responsible surprise to the upside to the revenue line? because that's what we want to

see? >> you want to look at retailers who are offering value. we look at aeropostale. they've been taking share from american eagle, crushing amber crombie. they've managed already to raise guidance once. >> you like aeropostale, don't like the buckle? are they overvalued, too high? >> i think it's a great concept, a great story. it's tough for us not to see the stores to really get aggressive, but i think they've done a great job. they're kind of one of the outliars and points out the other outlier, a company like tr true, they're going to beat numbers here too on the top and bottom line. >> james, let's talk tech and financials. let's start with tech. that's my favorite. what have you got on that? >> i was a bit underwhelmed by all the earnings report this week, particularly from the ones that seemed to have one. intel was all about asia.

ibm had revenues down in every sector of their business. and even google had mediocre growth, and again, no growth in any other business model. >> but intel and ibm had great outlooks, were surprisingly upbeat about the second half. >> not necessarily -- >> food chain keeps going. >> and intel was not optimistic on the enterprise.. nobody has yet said the enterprise is great. and we had some bad earnings reports this week from tech. xilinx, cypress semiconductor, nokia. so i'm not that optimistic -- >> even nokia. >> -- a gamble. >> even nokia said that demand has finally bottomed for cell phones. tech, overall, i believe is up something like 19%, 20% in three months, james. >> sure. and i'm bullish from here to the end of the year on tech. but i think next week we'll take a break. i wouldn't be long apple, wouldn't be long microsoft.. if you're interested in doing short-term trades into earnings, i think it's a gamble whether

they exceed or disappoint. i think it's a gamble how the market treats them. i do like the financials, however. i'm in love with the financials. i want to marry the financials. >> good transition paragraph. go ahead on financials. >> the financials are benefiting from hundreds of billions of dollars that the government has essentially given them. and at the same time, they're still marking up all the paper that they marked down six months ago. so the banks have hidden surprises all over their balance sheets, which i think they can mark up to show good earnings. >> and as much as people worry, james, about jpmorgan, my gosh they've taken i think $30 billion in provisions for bad loans. when that comes in less than expected, all of that reserve goes right back into profit.. but what stocks do you like here? what would you buy right now in the financials, james? >> i do like jpmorgan. i do expect they're going to have some role in getting cit either out of bankruptcy or buy the gems of cit. i also like some of the banks that never took tarp money.

you have nyb, new york bank has a 9% dividend. they turned down $600 million of tarp money. you have astoria financial, af, they turned down $375 million of tarp money and have a 5% dividend. and i also like the preferred financial, etf, which has a 5% dividend. >> very nicely done and very crisply done. you should have my job. better than i am. back to you, eric, on retail stocks. another stock for us? >> i think right now it's a very good time to look for plays that are longer term, cheap growth stocks. one is warnerco, the international play on calvin klein, a great stock. take advantage of the fact that fx stocks were much better than expected and a number of very exciting launches in the second half and a company like urban outfitters, a great growth story. three major differentiated concepts that when they come out of this thing and the consumer starts to shop -- >> nicely done, guys. thank you very much. have a good weekend. straight ahead, we go across

america, getting out of this one-horse stock-trading town for a while to see how the other 99% lives. and we're talking retail and health care with those guys and we look at how detroit is faring these days. there are signs that even in michigan, things might turn up just a little bit. back in two minutes.

mr. evans? this is janice from onstar. i have received an automatic signal you've been in a front-end crash. do you need help? yeah. i'll contact emergency services and stay with you. you okay? yeah. onstar. standard for one year on 14 chevy models. has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go.

i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free. all you need is pantene. even experts agree. it's damage protection results leading salon brands can't beat. the blow dryer, the curling iron, and my hair's still shiny. pantene. the gold delta skymiles credit card... from american express... it's the official card... of the world's largest airline. and it's the only credit card... that earns miles on delta. miles that take you... to more places than ever before. over 350 destinations worldwide.

so switch today. get up to 25,000 bonus miles-- good for a free flight. call now to apply. there's no annual fee for the first year... and you can redeem... with no blackout dates or seat restrictions. these are just a few of the benefits... of carrying the official card of delta air lines. switch now and you can earn miles... on delta with your purchases: groceries, gas, entertainment, and more. get up to 25,000 bonus miles... with the gold delta skymiles credit card. call 1-800-skymiles to apply. this is the official card... of the world's largest airline. across america tonight, we are getting the pulse, taking the pulse of some of the country's key sectors. with us are tom walsh of the "detroit free press," radio talk

show host, stephanie miller, elan from "the washington post," and julie bryant fisher from the atlanta business chronicle. elan, you cover business for "the washington post." what's going on in that sector? >> i think we really saw a case where numbers can really be acciden deceptive. the commerce department said that retail sales were up, but most of that came from gas prices and gas prices being higher is not a good thing for shoppers at all. the consumers are still feeling pretty stressed right now. >> still feeling pretty stressed. let's go to detroit, where tom watches the auto industry. tom, latest jobless claims numbers. actually, they're saying helped buy car plants opening earlier than usual because gm and chrysler emerged rapidly from chapter 11 and new car production, they say it's expected to add 0.7% to gdp in the second half. are you feeling any of that hope yet?

>> well, we're feeling hope, we're not feeling much retail support yet. it's -- you still got 15% unemployment here. >> 15% unemployment, yeah. and that certainly is tough. but with car production revving back up again and helping the entire national economy, you've got to hope that allows some people to return to work, no? >> some people will be going back, and that will be good, but until cars start selling nationwide, which we still haven't seen much of an uptick. we're running $10 million annual or a little less and we're still hoping for it, but it's not there yet. >> got you. let's move to health care, a topic on the minds of many right now. and the sentiment from coast to coast, let's talk to stephanie in l.a. and julie in atlanta. stephanie, start us off in l.a. in the health care debate. do you get the sense anyone's starting to worry now about the cost of this thing? >> well, you know, dennis, we could have afforded it if we didn't have to pay for the michael jackson funeral out here in los angeles.

we're already hurting. but, you know, i think that's, you know, we always knew that was going to be the whole debate, right, is how to pay for this? but i think the president makes a good point, we can't afford not to have health care reform. that is part of what is breaking the economy right now, is health care. >> says who? >> says who?! >> obama has managed to put health care reform and socialization, nationalization of health care right with economic recovery. what got us into this mess, guys, isn't that we spent too much money going to the doctor, what got us into this mess is that wall street absolutely failed at risk arbitrage and risk management and congress inflated it by making easy money everywhere. it wasn't health care at all. >> excuse me, but the bush administration left us a $1.3 trillion deficit and now obama is spending too much? >> health care is $800 billion -- >> you didn't answer my point. what about the idea, health care did not push our economy into crises.

julie in atlanta, weigh in. >> i'm going to say, wow, talk about a lot of questions. the health care sources that i've this afternoon, providers e facing additional potential cuts, looked at medicaid and medicare. they don't get paid the full amount for the services they provide. because programs, scratching their heads and wondering are we going to get paid for the services we provided with this plan. they are also looking at the benefits they have been promised. everybody is for electronic medical records and preventative care, that's fantastic but the financial benefits from those things may be long term and maybe they don't happen at all. then have you the health insurers saying gosh, you know if everyone migrates to the new plan, what happens to us? bottom line out here in georgia, a lot of questions on the minds of providers. >> 80 seconds left. we want to know around the horn what you are working on for tomorrow. tom? >> we have quicken loans here. dan gilbert, they just had a record mortgage month in may. one good news story out of detroit. >> stephanie? >> all i know, dennis, here in

california, i have been listening to a lot of fearmongering on health care and apparently they are coming for our sugary drinks.. my fruit drangs.. they are not going to let ordinary families trying to fish have fruit drinks. that's the important thing about the health care. >> what have you got tomorrow?? >> we are seeing hot deals. could it be good news? >> good. >> wrap it up for us. >> retail, what happens when the second bananas go out of business and what it means for consumers? >> i like it. the ones that survive and make more money and we like that. all right. thanks very much. have a great weekend. appreciate your being here. when we come back, guess what. i found a blogger who likes me. she likes me.. she really, really likes me.e. it might be a she. could be a he. a lot more than hate than hate me. found love online. i'm back in two minutes. shouldn't you be, too? thanks. having the right tools is crucial

to being able to manage your diabetes properly. it's very important for me to uh check my blood sugar before i go on stage. being on when i'm feeling low can be like a rollercoaster. it does at times feel like my body is telling me to do one thing... and, my mind, my heart is telling me to do something else.

managing my highs and lows is super important. with my contour meter i can personalize my high/lo settings so it really does micromanage where my blood sugar needs to be. i'm nick jonas and never slowing down is my simple win. an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem!

did you know that i have

been captured crying on national television? yes. 2007.. the nbc today show has been following me around, profiling me. i tried to go a full week without cell phone or e-mail. it came time to hand over my cell before going out of town and that meant i would be unreachable by my young daughter who i always promised her i am only a phone call away. i lost it on camera. i choked up. it was humiliating. you can still find it on youtube if you want to check it out. i bring it up now only as a warning because i might mist up yet again. right here tonight. that's because of something rare and extraordinary i came across today in the blogosphere. a fan, a guy or gal, i can't tell which, i'm hoping it is a female groupie but i a guy or gal writes -- where is the love for dennis kneale's show.. she goes on to note my show doesn't get its own special page

on cnbc.com like the other shows. it doesn't get any promotions during the day. why? i feel dennis 'show is one of the best on seef and is the most honest and fair reporting you can get. so dennis kneale, if you are out there, keep up the good reporting and looking forward to many more shows well beyond 2009. and then they add this. i love the blog segment.t. i look hard for the joke. for the gotcha. maybe some barber blogger will set me up and monday you will hear i got poked. then it occurred to me someone out there makes me feel a bit like sally field. they like me, they really like me. that's one down. and umpteen thousand anonymous pot-shot happy bloggers to go. bring it on, guys. and let's see. what i got here, dennis showed his star about two months ago and up hear nothing about it. no advertiser or commercials.

okay, yeah. so good i want to repeat it twice. i love this blogger. thank you, ma'am or guy. especially ma'am. i'm dennis kneale. that's all for us tonight. "cnbc reports" is back on monday. have a great weekend and good night.  oh, hi! welcome to progressive.com. are you all right? a ferocious white whale wrecked my boat. well, i'm sure we can help you, captain... ahab. well, it looks like you haven't had a claim in over four years, so you don't have to pay a deductible. that means you saved $500! $500? i could get an electronic fish-finder.