the health of the overall increase in natural gas economy, where they see joblessness and job growth coming out. >> all right. supplies. let's find out how this up about 58 bcf. but right now it has come in a morning's news is playing out in little bit less than expected. the increase in natural gas early market action. got it all covered. supplies in the past week, 66 everybody is standing by. billion cubic feet. scott wapner, here comes the 66 billion cubic feet. judge here at the big board. plat survey analysts looking for >> what a great difficult today. a range of 69. huge days for earnings. right in that range. right around what the reuters 12% of the s&p reporting. want to start with forth trading survey was saying as well. as we thought, we're seeing over here because their stock is natural gas prices coming off of up 9%. those highs of the day. smaller than expected loss here. and just turning negative. the cash burn rate slowed, too. watch ford. i'm joined now by randy. it's going to be a big mover. we have been looking at this rally in natural gas over the malawi said today on plan to hit last couple of days. profitability and cash flow more of a short covering rally, you think? >> i think there's some of it targets. let's dive into the dow. but i think the greater perspective is the market is at&t stock is up 1%. looking at last week's number they did well on the wireless and the previous week's numbers. and believing that now the drop side, which is impressive in a business right now that globally doesn't seem to be doing that has been so steep over the last well. even better, they had record low several months that going forward we've choked off some of that production excess. churn rates and they did a lot of this -- the iphone is helping so now they're thinking we're a lot but i went beyond that. more in a supply and demand that is key when you dig down balance and the price came back a little bit. probably somewhat on short

into the at&t numbers. covering but let's see if we can, in fact, get over this 3m up 3%. way beyond expectations. $3.90 to $4. swine flu mass actually he'lling >> the supply has been building but not increasing as much as out in a big way to 3m's last year. that to you is a signal of what? numbers. mcdonald's, stock is down 3%. >> that greater supply/demand revenue was down 7%. looks as though june same-store balance now as we go forward. sales were lighter than probably could use some weather in the northeast to boost the demand and we'll go forward expectations. analysts expect that weakness to seeing what industrial demand bleed into july. can do. obviously with choked up the you see mcdonald's under supply. now we're looking for some increase in demand. pressure. bristol-myers is going to buy a >> quickly, you're out look on crude oil at $66 right now after the housing data and better company for cash. huckman is going to come up and give you more particulars on equities right now? that. >> we're probably stuck in the stock is up 2% because they beat larger range of what we've seen their rate to forecast. in the last month of 58 t$58 to ups is down 3 % if the area. although the tone of the spread premarket. eps in line. relationships in crude oil over air volume strength was due to the last couple of days showed the dhl exit. slight weakness, maybe as the e refiner goes into turn around their guidance was a little bit more and sooner than we thought. below exit. >> thank you very much. kimberly clark raised prices and rebecca, i'll send it back to that offset weakness in volumes. you. our next guest has his eye brian, it's a huge day for tech, on real estate investing.

he joins us with all the advice too, coming off good earnings you need to get in at the right overnight. >> absolutely. time. let's go to the financial whole slew of news to get to. adviser network where we see microsoft coming after the bell, president of financial management. great to see you, steve. we'll get to that. we're flat here leading into the you're saying get into real estate but doing it true reits. opening. you talked about that, investors >> yeah, well, that's -- yeah, believe it, up 90%. we'll see if that does continue. for sure. i mean, you can go into real amazon.com, microsoft, they're estate on your own, but for the after the bell in terms of average investor reits is the way to play it. earnings. i wanted to bring them up there are many different reits because amazon.com, the shoe on the marketplace. it's full of good opportunities retailer for 800 million or so now. >> what are the good in stock. opportunities right now? microsoft says windows 7 is on >> well, business is still schedule. earnings, ebay off the highs a pretty bad. little bit. commercial real estate is bad. up 10%. we all know that. beat the street by a penny but we all know that retail is bad guidance is key. as the economy slows down and qualcomm beat by three cents. apartment rentals are bad. guidance was fuzzy. my thesis is that it's times when the ceo comes on cnbc we'll like this, especially if you get more clarity here. believe in a cycle, that it's investors a little spooked right time to step in and buy. now. now, i'm not buying the second. how about this? an airline that made money. southwest did. so did jetblue. so it's important for me to say they're going to make it for the that. i am looking for somewhat lower rest of the year, being in the prices. the way we see right now we see green. 3.6% to the upside. steel dynamics lost a little bit that it seems fairly valued at the moment.

more than expected. >> how much lower would you have tax benefit there. to go to entice you to be a sandisk, good on the top end. buyer? >> well, we have -- we have had guidance, again, issue, again, a sharp rally of late. investors. i'd like to see some of that it's about what's going to rally sell-off. happen moving forward with the i don't want to chase this rally for sure. the one thing that i think is important to mention is that consumers. same with sitrix. some of these reits, or the etfs that buy them, or the mutual at&t, i wanted to touch on apple funds that buy them, are i and palm in terms of handset, not a lot going on with that. yielding around 8 1/2%. that's down from december 2008 and from march of 2009 when let's go down to sharon at the nymex. >> oil gains could not continuer yields got up to 11%. forever. we have seen them breakdown but since we're at the lower range of the prices of reits in here. we had weakness again today but off of our overnight lows. general, i think in 8 1/2% again, equities could give some cushion is pretty good. direction to oil prices today. so what i'm saying is that this we'll continue to watch the is a 3- to 5-year investment is earnings picture. and diamond offshore ceo on not something you're going to trade in and trade out tomorrow. >> which sector do you like "squawk" earlier today saying most? oil prices to move higher with apartments, retail? demand coming from china. where the strength of the market >> well, i would leave that for has been recently has been the average investor, i would natural gas. leave that either to the mutual natural gas prices up about 8% fund manager and let them decide in the past week as those drilling counts have declined. or buy a broad-based reits. we're looking at natural gas for example, some of the etfs storage levels increasing in the

past weeks, less than that they available, the iyr, which is the did a year ago. dow jones u.s. real estate the metal picture make the index, invests in homebuilders copper hit the 2009 high but they also invest in yesterday. profit taking today. retailers like home depot and copper, again, leading the way for the metal. lowe's. so you're getting a very rick santelli to you in chicago. >> thank you, sharon. broad-based view or exposure to i'm sure you heard it many the different parts of real times. there are distortions going on estate. now, an etf like the homebuilders index, which is xhb that don't make the initial claims a even to some extent is much more specialized, much continuing claims as relevant to more narrow and could be very metric as it has been. believe me, it has been on the profitable or not. >> i'm sorry. cutting edge over the last five we've got to wrap you there. or six months and giving us a appreciate you being with us today. better clue about the employment still to come, the conductor picture. eventually that will get back on jim young, ceo of union pacific track. hence, the markets were pretty set to join us on cnbc. smart. you did not see the normal chain plus, bob woodruff, back from of events. his first trip in iraq and preopening equities popped just afghanistan since being injured by a roadside bomb. a bit but only for a second.d he'll catch us up with twiter to they're going lower going into raise funds for wounded the new york opening in 20 something minutes. soldiers. undefeated professional boxer floyd "money" mayweather as far as the big mover for the treasury and fixed income complex at 11:00 today we're going to learn how much size we're going to be options off. next week we have a funding and

we have a $6.2 billion pension issue from delphi that traders are trying to discuss to see if there's any near term market moving implications. mark haines, back to you. >> rick santelli, thank you. gains across the board in asia overnight. hong kong, hang seng up 3 %. highest finish since september. china's shanghai composite, up 1%. 13-month high. guy johnson, what's happening where you are? >> we're down, mark, at this has the fastest hands boxing has ever seen. stage. we were down at this stage so i've come to this ring to see who's faster... yesterday and managed to finish in positive territory here in on the internet. europe. i'm not going to call this one too early. i'll be using the 3g at&t laptopconnect card. we are seeing negative he won't. sentiment. so i can browse the web faster, switzerland is one exception i'm going to talk about. email business plans faster. big reporting day in zurich. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. let me first deal with what's happening with porsche, the (announcer) switch to the nation's fastest 3g network sports carmaker. and get the at&t laptopconnect card for free. we're going to see a deal between porsche and vw. vw is going to take over porsche. the ceo of porsche is going to

be stepping down. he's been at the company for a long time. his payout is $70 million. that is his gold dn parachute. he is getting out of this business with a big, big payout. the company saying though that half of that money is going to go to charity. credit swiss is flying if zurich. it's this and cross town rival last month, this woman wasn't even able to get ubs. return on equity is 27.4. around inside of her own home. that is a low leverage. they chose mobility. that is an impressive number. and they chose the scooter store! ratio at 15.5%. the numbers are great. if you or a loved one live with limited mobility the last check, asia brown, this call the scooter store! no other company will work harder to make you is the giant engineering mobile or do more to company. cross cutting looks good. guarantee your complete satisfaction. revenue looks good. if we pre-qualify you for a new power chair or stock up by 3.2%. scooter and your claim isn't approved, mark and rebecca, back over to the scooter store will give you your power chair or you. >> thank you, guy. up next, earnings central in scooter free. that's our guarantee. over drive. they were so helpful and nice. we'll get to the e-team with they filed all the paperwork, more on at&t and mcdonacdonald' and medicare and my insurance covered the cost.

we can work directly with medicare and,bay. or with your insurance company. back to back, first on we can even help with financing. cnbc's ceo interviews. if there's a way, we'll find it! so don't wait any longer, their take on the economy, on call the scooter store today. health care, on what it's going to take to get companies to start hiring again. we have that right here on "squawk on the street" and we will be right back. oof! i hope he has that insurance. aflac! you really need it these days. how come? well if you're hurt and can't work it pays you cash... yeah to help with everyday bills we are back. the market is doing really well. like gas, the mortgage... ...and groceries. >> dow above 9,000. >> we really had no hint of this it's like insurance for daily living. when the day began. it looked like it was going to so...what's it called? uhhhhh be really blah day. and now we're up 140 points on aflaaac!!!! the dow. back over 9,000. oh yeah! that's it! >> home numbers came out. aflac. we've got you under our wing. that was helpful. a-a-a-aflaaac! >> that was a spark. >> one of the leaders on the dow, 3-m, came out with great has the fastest serve earnings. they beat wall street expectations there. in the history of professional tennis. >> yeah. on the bottom line, once again so i've come to this court to challenge his speed. the revenue line does not look

...on the internet. good. i'll be using the 3g at&t laptopconnect card. but that's kind of being given a pass, the revenue shortfalls. he won't so i can book travel plans faster, check my account balances faster. longer term question, is can all on the go. they continue to cut costs? i'm bill kurtis and i'm faster than andy roddick. it's been more than three years (announcer) "switch to the nations fastest 3g network" since bob woodruff was almost killed by a roadside bomb in "and get the at&t laptopconnect card for free". iraq. ever since he's been telling the world about the more hidden wounds from war, brain injury. just back from his first trip back to the region since his injury, abc news anchor bob woodruff. bob, welcome back. good to see you again. >> thanks, mark. >> that's kind of like, going back to iraq for you is kind of like climbing back up on the horse that threw you into the bushes. do you have any qualms about that? >> you know, the horse is not quite as fast as it was before and it's running in a different place, a different track. but it was really important for me to go back, especially what i wanted to do is go bag to balad, the hospital where the -- the doctor s, the nurses, the medics

who saved my lives and so many lives over time. i wanted to go back. it was unbelievable. we tried to go back into there, baghdad and up to balad. we stopped in kirkuk and there was a huge sandstorm just blew in. we count even take off anymore. we stayed one night before finally the sand cleared a little bit and we just had to leave iraq completely and went out to afghanistan instead. >> what did you find in afghanistan? i think a lot of americans, that kind of receded into the background. we knew about tora bora and it's too bad we didn't get him. but it kind of was in the background. and now it's definitely in the foreground. >> well, you know, it has -- we weren't really paying much attention to it for a lot of time. largely iraq that was getting most of the coverage, most of the attention. now really that's all shifted over to afghanistan, not only in terms of troops which are moving out of iraq and into afghanistan. what i also discovered was a lot of, you know, the doctors, the

nurses are now heading over to that country, because the number of injured are now going up. in fact, ieds are now 60% to 80% of the injuries in afghanistan. the street." i'm fill lebeau at the ford and also, what's also not really headquarters where ford reported known very well is about 80% of better than expect eed earnings those injured general li are for the second quarter, afghan civilians. reporting a loss of 21 cents a the numbers are going up. share. we need a lot more attention that compares with the street expecting a loss of 48 cents a going on in afghanistan. i got to tell you, just a share. revenue also better than personal story. i did, we walk into the hospital expected. $27.2 billion compared to the street expectation of $24.7 billion. after the earnings came out this in chakandahar, two guys walked morning i had a chance to talk to me and said, do you recognize with ford ceo ed malawi. me? i don't recognize you. two guys that actually helped he said cash flow target, me, saved me, saved my life back speaking of cash burn, look how in 2006. now they ended up in ford has cut the cash burn. afghanistan. i had no idea they were going to be there. q-3, thaimp burning $7.7 billion >> wow. >> now you're also working on in the quarter, roughly $83 this twitter project to help raise money for veterans. million a day. now down to $1 billion cash burn people like those individuals in the second quarter. who helped you. >> you know, we've got this folks, that's a cash burn loss of $11 million a day. remind.org which is a really substantial cut. remarkable foundation to try to don't forget, first on cnbc help those when they return back coming up on "power lunch" today to their community.

people got a lot of help at 12:10. now for more on other earnings, immediately after they were let's go to earnings central injured. when they returned to their with joe and becky. communities, they need more guys, over to you. help. they need everything from their >> thank you, phil. phil was in the other day. families getting around them, get the more education, to get >> we like that. >> he needs to be where the any kind of attention from people that can actually feel -- action is, near detroit, near make them feel more at home chicago, because it's planes, because a lot of times when you trains and automobiles. that's his speed. leave and you become a veteran, anyway, we've had three you are largely ignored. reports -- a report from three and this is what we're dow components this morning. significantly trying to change. that's where we want to start. let's kick it off with at&t. dow component reporting per >> it was centered around share earnings of three cents, memorial day but now you three cents ahead of extended it to veterans day, appropriately. are you trying to raise, what, expectations. excuse me. now nearly $150 billion company, $1.65 million? >> are. as many others have faltered in i think we're not asking for a terms of market cap and lot of people -- for a lot of financials. at&t is now number seven, i money from each person. get a huge number in the country think. revenue is in line, but that's to do this because i think as what the stock is doing today. soon as somebody meets somebody over 6% yield. from the war that's been injured, they do want to help at&t continues to see weakness in its landline business. them. they didn't know anyone before, you know, in a lot of neighbors, meantime, smart phone sales have continued to grow with 2.4 neighborhoods, there's not that many that served in the war.

million iphone activations, and you only have 1.65 that have served in the war which is why we would like to raise $1 per that $99 iphone which you saw a person that is actually serving. 600% increase in what apple was if someone donates $1, that's able to sell if you figure we great. $5, great. had to know that at&t was go to you know, $10,000, that's even benefit a little bit. better. >> they t. wireless subscribers >> how can they do so? >> you can get on the overall, huge gains. remind.org. very low churn. you can get on remind.org. that's a huge growth area for of course, you can get twitter, the company. too. that's the other way to get? >> i still can't imagine a day where you don't have a landline. >> twitter is one way? i guess it's happening to more >> yeah. and more people, young people. >> remind.org. >> i was going to say, my >> remind.org. and you can find eight lot of younger brother is without a different ways. landline. >> weird. that's the way you can click it >> he goes around with just the in and donate it then. cell phone on, the whole thing. we're moving on. i got to tell you, it's getting i would get rid of my landline except my cell phone doesn't bretter and better. work well at the house. in november, we're going to have >> where does the cell phone a huge fund-raiser. work well? >> in this building it works looks like springsteen is going okay. >> you have a great landline. to do it like the last two >> anyway. dow component reporting, another years. comedian, i think colbert is dow component was mcdonald's. going to be on there. >> i think colbert, when he went when you consider the foreign over there. >> that was hilarious. currency impact because they did have a big impact on that. the last time i was on here with you, by the way, the market went that matched up with analyst up for the first time in four expectations. also breaks the streak of all days. now 9,000 for the first time. the dow components have been >> you do seem to have an

affect. >> we appreciate you being with beaten consensuconsensus. us. mcdonald's this morning though >> when i arrived, it went over under a little bit of pressure when you look at the stock. 9,000. >> bob woodruff, abc news. that's in large part because of thank you. what happened with our latest >> thanks so much. >> best of luck with your continuing effort it is. same-store sales numbers. omaha based railroad company >> 2.6, i think, and maybe they falling 12% but still beating wering looking for over four. expectations. let's look at how the dow joining us first on cnbc is jim components are so far in the heat map. >> i think we have to walk over young. here. >> no, i'm going to do it from jim, you'r earnings beat over here. >> i'll walk over. expectations. >> everything is green but the things are still tough out there, though. >> that's right, rebecca. good morning. golden en ash ches are yellow. what we see in our numbers and they may have tried to do in the railroad industry is a great barometer of the economy when line. probably not. but that is nice. you think of everything that we and no red that the point. handle. just about everything you touch we'll see. let's see. >> no red unless you flip it in your daily life probably was because there's another one hauled on a railroad. we're keeping in line. what i looked at this quarter is if you look at the earnings per the things seemed to have share verses the estimates, if stabilized after a very you look at the revenue numbers significant fall the last year versus the estimate for revenue, or so. i'm hoping what we see continues that's where you see the real story. and maybe there's a little companies in red came in with upside for the second half of revenue that was lower than the year. >> upside for the second half of expected. many of these guys managing to the year. beat expectations anyway. what's going to drive that and that's the concern that's upside? been out there. >> well, again, you know, you

there's a lot of these companies making great earnings but get low enough, anything looks they've been doing it by cutting good moving up here. their costs. but take the auto sector right now. >> another good one i don't in second quarter, we handle think we have it but it would be about 75% of the finished revenue versus last year. vehicles in the united states, >> we don't have it right here. west of the mississippi, our >> is it all red? business was down almost 50%. almost. >> i'm trying to think of who we we do know we've had a couple of seem to have higher numbers. the producers that have a couple of them came in above. announced they're going to pick up on their production. didn't boeing do best? the first half production in the no. >> boeing might have. >> there have been a couple who auto sector was about 3 1/2 have done a little better. >> yeah, that's like the opposite of the aborve million units. i think you're going to have a expectations on the earnings per $10 million sales year. share. we're back here. there's potential there. bristol-myers squib reporting >> you are -- you have, what is this morning second quarter profit grew 29%. it, yeah, you serve all six company also announced it's major gateways into mexico. what are you seeing in the buying meterex with a 90% u.s./mexican trade? >> well, the mexico, our business in mexico is down almost 35% in second quarter. premi premium. head over to mike huckman. now, mark, a big part of that 90 sounds outrageous but that's in line with most most deals in is -- falls in the to sector. as you know, there's a biotech. >> high premiums are being paid significant amount of auto and cost cutting is a big theme production in mexico that i in big pharma. think is going to start to gear

in between conference calls back up. right now. if you look over the years, wyeth was up first and though, it's been a tremendous bristol-myers squib is not until success for us, both import and noontime. they're 2-2 this morning because export. when we started out, when you both companies, wyeth and looked at product moving between bristol-myers did beat the mexico and the u.s., it was street on the top and bottom line. wyeth is going way soon getting primarily northbound and in the u.s. if you look at last year, it was swallowed by pfizer. but bristol is raising its evenly split in terms of products we're moving to mexico and the product moves out of guidance, three cents above the mexico. >> are you facing a -- too much currents consensus and high end, 13 cents higher. capacity in your business? big news, bristol is buying this you've got -- there's you and company, the ticker is medx, for there's cit having problems and nearly double what it was worth it has a lot of rail assets. and yet's close. 16 bucks a share. >> well, mark, we went -- if you 2 1/2 billion bucks, exactly. for bmy it's all about plavix, go back to 2005, this industry the blood thinner, number two was short of capacity for the first time in modern times. selling drug in the world. it goes generic in a couple of the industry has put a significant amount of capital years. into the infrastructure. up 11%. i'll tell you, that's building bristol has a look ahead to the day when that gravy train isn't railroads. we've got access capacity right going to be there anymore. now. it has a promising drug for a nobody expected business volumes

to be down 20%, 25% right now. progressive form of skin cancer. but i think we've -- again, when you look long term, rail is going to be part of the the medx deal is the latest in infrastructure solution in the big partnerships and america. acquisitions in bio pharma. and we're well positioned to handle that growth. >> all right, thanks so much, this trend shows no signs of letting up. jim young, for being with us today. a research note to clients this >> you bet, rebecca. thank you. morning, coming up with a possible who's next list. and at the top of its list is was it last week, yeah, it seattle genetics, ticker regn was last week, chairman of ge and segn. noted that there were 5,400 back to you guys. >> we've been keeping an eye on ebay shares. locomotives marked across the the company coming out with earnings better than expected. country. let's get right to the news not in use because of the line. check in with our analyst keith decline in rail traffic. guess who owns those 5,400, terry on this. heath, when you take a look at what happened with ebay, what guess who built them and who are the standout points, as far owns them? up next, continuing our big as you're concerned? coverage of small business, the >> the biggest thing here is the fact that the core business president of the small business started to follow up on some of association is back with us. the early signs of a turn around he got cut off yesterday because there that we saw last quarter. of -- >> bernanke. >> oh, yeah. their skype business growth fell >> according to his new study, rated and pay pal took share off financing still a problem, health care reform, a big worry. ebay. those are the three things he'll take us inside the numbers everybody is going to be focused next.

on today.  oof! >> what happened to ebay from 50 from where it was. remember, heath, we wondered about the whole internet model, the tech bubble after it burst. the ebay is going to be one of the big three with amazon and, i don't know, who else. what -- google. what happened from 60 to the teens? >> you know, the biggest thing that happened is they rested on their laurels. they didn't invest in the technology. they basically took the buyer base that they had for granted. and they treated sellers and basically let the sellers kind of run the business to the benefit of their businesses, their individual businesses, but certainly not to the benefit of the buyers. and they lost buyers to amazon. the company started to reinvest in that technology 12 or 18 months ago and they're slowly starting to pay more attention to the buyers and are starting to see the early signs of turning things around is the risk they alienate the sellers to focus on the buyers and lose the diversity they've built up over the years? >> you know, i'm going to upset

a big community here when i say this, but at the end of the day, the sellers really don't matter. it's all about the buyers. if ebay has buyers, they're going to be people that can sell it. i could walk outside on park avenue right now and say i want to buy something and there's going to be somebody there willing to sell it to me. >> you could get arrested, depending on what you want to buy. don't do that. so amazon, that was the competition that i was searching for? are there other people that do what ebay does? >> you know, amazon is out there. certainly google has provided vom competition by enabling smaller retailers to sell. but at the end of the day, it's really what amazon has been able to do and the tremendous success they've had in their third-party business and in expanding out beyond their core line. >> it doesn't seem -- are the bears -- is there any reason why ebay should have a monopoly on this and why would you be bullish long term? >> the barriers to entry are

nonexistent. the barriers to success are huge. there is a tremendous network effect that it comes from having more buyers, more sellers. that's something that has really kept a lot of competitors out of this. amazon was able to use the leverage that they had in their first-party business to get into the third-party business. it's going to be much more difficult for anybody besides those two to really have any success in this model. >> heath, thanks a lot for joining us. we appreciate it. mark and rebecca, back to you. up next, the word on the street, the buzz beyond, what happens to the market if we have a jobless recovery? >> and then, later next hour the count down to cnbc's ranking of america's top safe for business. we're going to begin with the reveal at number five. our scott cohen live in whereabouts he is to reveal that exclusive list.

i hope he has that insurance. aflac! you really need it these days. how come? well if you're hurt and can't work it pays you cash... yeah to help with everyday bills like gas, the mortgage... ...and groceries. it's like insurance for daily living. so...what's it called? uhhhhh aflaaac!!!! oh yeah! that's it! aflac. we've got you under our wing. a-a-a-aflaaac! (groans) a lot of people are gonna be kicking themselves for not buying in this market. (woman) visit remax.com where you can see all the listings in thousands of cities and towns. where do you want to be?

you're watching cnbc's "squawk on the street" live from the financial capital of the world. >> let's get the buzz beyond the big board. in manhattan, dave rovelli. >> is this market about to break out? it's behaving so well. >> yeah, mark, it's truly unbelievable. the market does not come in. take yesterday for example, we got the negative news out of wells fargo, morgan stanley, the news isn't that good. the market is hold. only down 30 dow points. today is futures are up. hong kong flying overseas should help us out here. looks like we're going to 1,000,

next, mark, on the s&p. >> that would be up 5%, right? >> yep, about -- goldman thinks we're going to 10.60. so i think 1,000 is the next stop. then maybe a little higher. but you know, it's a stock some alarming data out this week on the stay of small business in america. ticker market now, more than we starred this discussion ever, because everything is going up. you know as well as i know that yesterday, had to cut it short because of ben bernanke. that is impossible to continue according to the national small business association's mid-year economic report, 80% of small to happen. >> daifr, wheve, where is the l businesses say they are unable to obtain adequate financing. opportunity in this? >> the long-term opportunity, i 75% say they've not seen any would say, is to buy select impact from the stimulus package stock. mark knows, i'm on every two weeks with him. whatsoever. here to continue the i focus on tech. the long-term opportunity is conversation, todd mccrocken, also on energy. a lot of these analysts last president and ceo of the quarter had a $45 oil as their national small business association. todd, we pretty much went over stock in there when they calculate their future earnings. the credit data yesterday. now oil is closer to $70. >> we did. >> and as we were interrupted, i it's going to be a higher was on the point of asking, or multiple on a lot of energy stocks. >> when you say stock ticker kind of opining, and then market, give us the ones that getting your reaction to it, is you picked. i mean, it seems to me that >> for example, we love apple. i always talk about apple and given the credit situation, the

rim. i buy apple on the dips. addition of the health care we just raised our price target to 200. small semis like aat i-reported reform and its impact on small business must be very today. significant to your members. they do a korean handset makers. >> it's incredibly significant. we raised our target to eight. semiconductor index was 167 on because small companies having a november 21st. it passed 300 yesterday. hard time affording health care, they have all of these choices laid before them now, almost that's a 75% move in six to nine 30%, say they think they're months. going to have to reduce their that's a five-year return work force in the next 12 usually. months. what that means is, they have >> thanks so much, dave rovelli. >> thank you. >> stock is 301.77. little choice between employees and coverage. people are saying 30, 35% the countdown is on the other side of the break. increases in had premiums, of course. but also with health care reform, all of those things point to why we have to have reform, but we're also really worried that reform could come with no real savings on cost, but a raft of tax burdens to pay for it. so we've got to have health reform, but we've got to get it right so it works for these folks. >> i think that reflects the feelings of many americans, not just small businessmen. >> right. >> it would be nice if they

would focus first on containing costs and then figuring out what more needed to be done. >> right. >> anyway, we're looking now at a poll of your members. top challenges, economic uncertainty. it's still uncertain out there, huh? >> it's pretty uncertain. i'm always hopeful that what's been proved true is -- i think with yogi bear used to say it's always darkest before you turn on the lights. so these are pretty grim numbers, and there's really not much reason for optimism in them. but i'm always reflective of the fact that right at the end of any recession, it's always when you're going to have the grim evident numbers, so we're hopeful this is coming to an end and beginning to make a turn. >> todd still uncertain in terms of the economic outlook, but where in terms of when people are thinking things will turn around? are you seeing that? and are you hearing about new hiring at that point, or is that still something on the back burner? >> it's something on the back burner. people are really reluctant to think about new hiring or even planning for new hiring. they need to see that business coming in the door of before

they're going to think about ramping up hiring or increases people's hours. >> all right. thank you so much, todd mccracken for being with us. helpful stuff. >> thanks for having me. >> up next, a check on the markets. we're doing really nicely. don't go away. what's on the minds of independent investors? let's ask. when i trade, i want a straightforward price. they lure you in with a $5.99 trade, then charge you 15 bucks. you get a low price, but only if you make a ton of trades. at td ameritrade, every online stock trade is just $9.99. period. no matter how often you trade. tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. no matter how much money you have in the account. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. i hate those hidden fees buried in the fine print. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips surprise! it's a maintenance fee! tdd#: 1-800-345-2550 or, i don't know, fish and chips. i hate surprises. tdd#: 1-800-345-2550 i'll look at all kinds of stocks before i settle on one. at td ameritrade, you never pay a maintenance fee. you get low, straightforward pricing, tdd#: 1-800-345-2550 if i think i'm onto something i'll check it out,

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school supply drive. that's happening now. america's most dependable 3g network at the nasdaq, device company bringing you the first wireless 4g network. - sprint. the now network. - ( whoosh sound ) angio dynamics, ticker ango. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. >> market reporters are standing by. the nyse, nasdaq, nymex and cme group. we begin with scott wapner at the floor. >> thanks so much. you've got to love days like this. five dow components with earnings. ford is behind me. ford is going to open 10%. probably the two most important things off the earnings report. cash burn rates slowed and the ceo mulally told phil lebeau, they're on track to hit their target. ford is opening 10% higher. we're going to check out at&t. they're on the move to the upside. at&t was slated to open a couple percentage points higher here. they did well on the wireless side. that's really impressive in the current global environment, especially in the wireless business. even more so they had a record

low churn rate, which is key there. it wasn't just apple's iphone lending at&t a hand there. it was on the lower and mid-range level there, too. welcome back. 3-m is on the other way. stocks surging at this hour. up 2%. way above expectations. raised the full-year outlook 3m leading the dow, up almost there. the other dow component reporting that bucks the trend 150 points. the dow is back above 9000. of those beasts that is mcdonnall's. 3m, meantime, up 6% right now. shares is down about 3% or so. june comps were below mark. >> over on the nasdaq, shares of expectations. and the concern there is that that's going to bleed into july. intuit surgical leading the that's why the shares have opened to the downside. charge there. intuitive surgical, i beg your bristol-myers, you heard mike huckman, he knows everything about pharma. pardon. he was telling us about the and over the s&p 500, shares of earnings beat. ford. look at that, up almost 10%. raised the outlook. also buying $2.4 billion in >> things are starting to look a little less bad, mark. >> there is a lot more optimism cash. ups, 3% to the downside. out there. eps was in line, revenues below there is -- a little more -- a guide dance. as well. little bit more hope. they're typically a conservative i'm taking four days off. there. i'll see you next week. that's the story to watch. >> have a great weekend. i'm rebecca jarvis. "the call" is up next.

>> welcome to "the call." kimberly clark did raise their i'm melissa francis. earnings guidance. the dow soaring above 9000 for union pacific, guidance was down the first time since january as across the board there. let's head uptown with brian the nasdaq closes, its biggest winning streak since 1992. and stocks continue moving shactman. >> scott, if you got paid by the higher on this very busy day for company names, your would get a second quarter earnings. raise today. we're going to bring you all of off basically flat today. the hits and misses and the tech looking at the 12th possible day up in a row. talk. will the rally continue? hasn't happened since i think is larry, what's the answer? 1996 if let's look at the news. we have just as much news over >> strong news for the economy. the answer is yes. here. ebay, good earnings and guide existing home sales climb for dance. up 8%. the third consecutive month. qualcomm beat by a little and the labor market, a better than expected rise, which means pressure because of broad range the pattern of trending lower is of guidance on ceo on thursday in place for economic recovery. here. we're going to talk to the head of qualcomm. so are we heading for a jobless very strong earnings, basically say they beat on top, meet on recovery? we'll discuss that. but you know what, melissa? the bottom but reaffirmed jobs may come back sooner than you think. guidance. this is "the call." guidance seems to be important we are cnbc. these days. we'll be right back. in intuitive surgical. two big names, amazon and apple, and there we are. we're back! we're talking about strong retailer with a very large earnings reports -- we're out of

control this morning. triple digit gains after a culture. microsoft on schedule with windows 7. better than expected pickup. jobless claims rose. m take a look at where the dow is trading right now. there it is, up 146 points, more mederex is up. bank shares lost more than expected. increased their loan loss than a percent and a half. reserves. fifth third is up 12%. the s&p up 17 points, almost 2% they had one-time gains. there. who knows if they can do that and the nasdaq, as we told you, on its way to its biggest moving forward. finally, more on e-trade winning streak since 1992 if we earnings at our 10:00 a.m. earn close higher on the day. time hour. and now up about 2%. they're up right now. let's get more on the oil trade scott wapner, what's going on down at the exchange? downtown with sharon epperson. people have got to be in a good >> the bulls in the pits are move. looking at the dollar and equity >> yes, the dow above 9000 and for any reason to buy. so far it's not giving them much the s&p above 970 and that was a resolve. the demand concerns really seem pretty interesting technical level that a lot of traders were to outweigh the picture here with the jobless claims rising watching, but once it started as expected. but still highlighting the weakness in unemployment. look like it was going to blow past that, everybody and what's factors that might play in this recovery here of this economy. and it's not only this economy that is struggling. we're learning today about japan's economy also having issues. at least when it comes to crude

oil imports. lowest level they've seen in 18 years. falling about 20% in june. add to that the refinery run rates are also at a 13-year low. that is also putting pressure on crude oil prices. take a look at what is happening to natural gas though. natural gas is also pulled back a bit today after rising 8% in the last week. we are going to get that storage data coming out at 10:30 eastern time. the expectation is for an increase of 65 to 69 bcf. rick santelli, to you in chicago. >> thank you, sharon. as we start out to foreign exchange. the dollar index is doing better. you want to keep an eye on the technicals because the lows over the last 72 hours in that index are at par with early june and very close to at par with december in terms of the major support level. it's hovering near most of the gains today are against the yen, which is interesting because we learn today that the japanese, of course, export economy finally saw their export aspects

kick up a bit, so they saw some surplus information regarding what they're sending out versus what they're bringing in. and for them, that's a good news. and to see their currency down, exporting, that's a good thing as well. if you look at interest rates, they've risen to basically unchanged. we haven't seen a lot of volatility this morning like we had earlier in the week. but 11:00 eastern when we find out supply announcement, keep an eye on the ten-year and the shorter maturities that correspond to them for next week. mark, back to you. >> we've had a lot of upside surprises concerns season. guidance is still kind of vague. does anyone have a clearer picture of the future? perhaps these gentlemen. chief investment officer at relative value partners. jack, chief investment officer at harris private bank. maury, do you have a clear picture of where we're headed here? >> we think -- we think there's another 10% or 15% upside in

this market and we remain moderately constructive. what points news that direction is a number of factors. one, the overall improvement of the credit markets, which have been unabated. have improved since the beginning of 2009 as the fed moved rates from zero back in december, hundreds of billions of dollars have flowed into investment grade and high yield and equity market. in addition, when we look at the percentage of cash sitting in savings accounts and money market funds right now as compared to the wilshire 5,000. and finally, three pieces of good news for every piece of bad news in this earning season so far. i don't see any reason why that shouldn't continue here. >> are you doing hand springs like maury is? >> maury must have taken my notes. i think i tend to agree. valuation from a long-term perspective is really reasonable, certainly. a lot of cash on the sidelines, as maury articulated. even at the economy is -- we

expect will actually prove positive results in the third quarter on inventory rebuild and net export increases. psychology, certainly skeptical as long as the average investor remains wary of this market is good. and then finally, momentum finally broke for at least the way we measured it a week or two on the first week of areaings. if that olds for the remainder of this month, i think this is a good entry point for the next two years, marc. >> maury, in your valuation we keep hearing from companies in terms of visibility that they do offer stabilization and we hear it over and over again. how much, in your view, more upside can you get out of that stabilization force versus a growth forecast? >> well, i think there is limitation to, you know, we've gone from the depths of fear back in march, we've had this 45% recovery. and i think from here is the gains are going to be a lot harder to achieve in terms of

that's why we sort of said 10% to 15%, sort of feels like about as much upside without seeing further evidence of the economy is out of the recession and growth has come back. that remain ours forecast for the balance of 2009. >> jack, i heard you were stung by a bee. i'm really sorry to hear that. getting to the point of what we're talking about here. the economy, in terms of joblessness, of course, we continue to get these claims numbers. things look like perhaps they're improving. at what point do you see in your model a turn around from jobs going down to jobs actually going up again? >> unfortunately that -- that's, you know, really a key question that i don't have a clear answer on because if you look at the growth in the economy, we do believe longer term we're going to have subpar growth. let's say our natural rate of growth is about 3%, and that generally creates 100,000 jobs a month. we're probably going to grow between 1 and 2.

that's not a strong enough to really create a lot of jobs, unless policymakers allow for a higher level of inflation. if we do have higher inflation, then we can create jobs. but wages will not keep pace with that inflation. but we can keep more people employed. longer term, i think we have to position for inflation because policymaker, given the choice of low inflation and no jobs, slightly higher inflation with more people working, are going to take the latter. and we have the position, like i said, our investments, accordingly. >> all right, jack. thank you very much. maury, appreciate your input. >> thank you chlts coming up next, back to back live, first on cnbc interviews on earnings. first up, ceo of qualcomm, then the ceo of the cme group. both stocks up more than 45% since the bottom but spanning to very different sections of the economy. coincidence or something more? plus, you'llia boorstin

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okay. the fortune brain storm tech conference under way in pasadena. one of the biggest topics, how media companies are using tech to survive in the digital world. julia boorstin tackling that topic with disney's ceo bob iger. >> disney is trying to compensate for declining dvd sales, piracy in the shift from viewers to internet. disney's ceo bob iger says they're not just going to rely on advertising. he believes consumers will play for content online. and they're even developing a disney subscription service. >> we're looking at multiple forms of revenue-generating

business models. and believe that all will provide value to our company if you start with a premise that you've got great content, perceive to have high value, choice. >> advertising is still important to disney's bottom line. while iger wouldn't comment on ad revenue, he did say that all ad buyers are looking for efficiency. >> advertisers today, we're one of them, by the way, looking for really strong returns on investment. and we have to offer that when we sell time just as we have to offer that when we buy time. so i don't know that it's necessarily going to be a shift from one medium to the other. it's going to be a shift in the direction of what can provide the most value. >> one hot topic here at fortune brain storm is comcast and time warner's plan to deliver cable content to the internet as a way to keep consumers still subscribing to their cable service. but bob iger says he's not

convinced that consumers are not happy with the way the cable model works now. >> we don't see any evidence that people are not subscribing or unsubscribing, nor do we see any trend suggesting people are dissatisfied with what they're getting or dissatisfied with what they're paying. >> i also asked iger for his perspective on the california budget crisis. he pointed out that disney is the only media conglomerate headquartered here in the state of california, that they like the hollywood and disthey land and the state's fiscal issues are not going to change the way they do business. rebecca, coming up on "the call" i'll have the first on cnbc interview and more about the conference, check out my blog, mediamoney.cnbc.com. rebecca, over to you. >> thank you so much, julia boorstin. qualcomm posting a 1 1/2% decline in the third quarter profit wednesday. but the company's chief exec says they had a strong quarter and healthy demand. could this be a sign of a recovery in the wireless market?

joining us first on cnbc, qualcomm's ceo paul jacobs. great to see you and have you here, paul. let's talk about that growth that you forecast. where is it going to come from? >> we are seeing that the 3-g handset shipment is going to grow year over year 18%. we have strong end user demand. we're seeing growth in emerging markets. china has launched their 3-g network. automatic all in all, it's healthy. >> when you talk about china launching their 3-g network, is it really a story for your company and for many companies dealing in the tech space, capitalizing on that emerging market or is that story still here about here in the united states? >> it's really a global phenomenon. in all the world we're seeing definite consumer demand for high-end phone. chip shipment at the high end were up pretty dramatically. china is an interesting story because the coastal reagains are, i think, more like

traditional asian markets that are high end. the rural regions are more like traditional emerging markets which are low end. we serve both parts of that market. >> is there any saturation point in site? i remember reading a while back, things have slowed down in the u.s. because everyone who wanted a phone had one. >> actually, i think that with the transition from the second generation to the third generation, we're not even yet to half of the market in terms of shipping handsets. next year is when we think that 3-g handsets will pass 2-g. we have growth in new kinds of devices like smartbooks which are smartphones grown up into a notebook style, into consumer electronics, into machine to machine communications as well. >> the 3-g phones, how do you -- i mean, are they just selling because people want to upgrade? >> i think there are some aspect of that that people want newest

device. but we're seeing tremendous groet in data usage. people are doing things like watching youtube videos over their phone, over the air. and that kind of stuff. they are getting on the internet. they're doing location base services. there's a lot of really interesting services now that you can use your phone for. >> that's another thing i read very recently, that accessing the internet has gone mobile. >> absolutely. it's now much easier. we have very powerful processors in the phones. we have over a gigahertz processor coming out in the phones. and those are powerful smart phones. as i said, the smartbooks and the browsers are very fast. so you have a really good experience browsing while you're mobile. >> let's talk about accommoda accommodating that growth, paul. where is the hiring going to be in your business and at what point? when i say where, i'm thinking regionally here. >> we're continuing. we have a bit of a hiring cap on still. although i did just go lecture

to about 35 new employees last week welcoming to the company. so we are doing a bit of hiring. we do see it globally. we hire both in the united states, around the united states, in india. we're growing in china as the china market takes off as well. >> growing here in the u.s., we've talked to a handful of companies. they're concerned or some are, at least, about the administration's stance on health care. where do you stand on that topic? >> it's clearly an issue. we need to make sure that people are covered across the united states. it's one of the things that's been a hallmark of qualcomm that we've made sure that we have some of the best health care coverage for our employees. and it clearly needs to be done. one of the things that we think is an opportunity for qualcomm though is that wireless can improve the productivity and quality of health care by helping people remain well longer by monitoring how they're exercising, how they're managing a chronic disease and so forth.

and so we see there's an opportunity actually going forward helping out on the health care. >> maybe you're going to talk to the president about how to get in on this plan and get a little subsidy out of it. >> you know, the wireless industry has been interesting because we haven't gone asking for subsidies. it's actually been a fairly strong industry going forward. >> all right. thanks so much, paul jacobs for being with us. >> thank you. coming up next, our second first on cnbc interview, craig donahue. he's head of the cme group, expanding trading operations, has helped them beat estimates. but, there is still that sticky issue of new financial regulation in the works. you're watching "squawk on the street" here on cnbc, first in business worldwide.yo the chevy open house. to where getting a new vehicle is easy. because the price on the tag is the price you pay on remaining '08 and '09 models. you'll find low, straightforward pricing. it's simple.

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we are back. dow is up 27 points, which is better than the futures indicated we might get. nasdaq up 7 1/2. once again, strength intact. >> and strength in 3-m, that's the dow leader today. came out with an earnings report despite a drop in revenue they managed to beat across the board. and one of the things that's

interesting, they are in the respiratory products business. and those respiratory products are things that people bout with swine flu fears out there. they were able to do that. >> a h. okay. the cme group beating expectations. helped by expanding operations. the operator of the chicago mercantile exchange, chicago board of trade and new york merck right now are, oh, no, down about 2 1/2%. but it's still the cross hairs of pending financial regulation. it could help it or hurt it. craig donahue is here now, ceo of cme group. good morning. thanks for being with us. >> good morning. my pleasure. >> first of all, the numbers, up 10%. mostly due to expanding operations? >> well, it's, you know, a reflection of the fact that we had, you know, very good volume activity in the month of june. we've seen strong, you know,

performance in our interest rate product line. you know, the market is improving, certainly in terms of people's use of hedging and risk management products here. but we've also been incredibly disciplined about expense management. so those two things have contributed to very solid results this quarter. >> unlike many, you for fatally fortunately expanded your bottom line not by cost cutting. revenue did fall short of what wall street expected, right? >> well, like i said, you know, we've seen some very good stabilization in the economy generally in financial markets. and that has brought people back into the market for hedging and risk management purposes. >> craig, in terms of bringing people back into the market, how much of your business would you say is folks who provide liquidity for trading versus those who are actually making trade? >> well, it's obviously both. i mean, you know, we need people

who are making markets and providing liquidity, speculating, if you will, in order to absorb the risk that commercial hedgers have in interest rates and fixed income equities, foreign exchange, commodity and foreign markets. so obviously that's a key part of what we do, is bringing those buyers and sellers together and matching those different trading needs. >> does then the direction of this cftc, looking at limits across the board for speculators, does that concern you at all? >> i would say a couple of things. i mean, you know, first of all, many people have, you know, labeled certain market participants as speculators or excessive speculators. you know, in fact, you know, many of these large institutional users of the market are hedging inflation related risks or engaging in portfolio management diversification strategies that benefit, you know, retirees and

pension and retirement systems and whatnot, number one. number two, there's just absolutely no reliable evidence that, you know, speculators are having some kind of negative impact on the pricing dynamics in the market. >> got to leave it there. i'm sorry. out of time . you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience.

welcome back to "squawk on the street." i'm diana olick. live at the association of realtors, existing home sales rose 3.6% in june to seasonally adjusted annual rate, down from a down regardly revised may reading. sales are now 0.2% below june 2008. inventories fell ever so slightly to 3.823 million units. that represents a 9.4-month supply. the supply of homes under $250,000 is now at a six-month supply. the supply of homes over $1 million at a 20-month supply. that shows you who is buying and who is selling. median existing home prices in june that is down 15.4% from june of 2008.

breaking it down regionally. in the northeast, sales are up 2 1/2%. in the midwest, up 5.9%. in the west, up 6.4%. that surge due to very low prices out west. prices down 24.9% in the west. condos versus single family. condos saw a surge in sales in june up 4%. single family, up 2.4%. realtors say that the first-time home buyer taking advantage of that tax credit made up 29% of sales in june. distressed sales actually fell from previous months. now saying that 31% of sales are distressed sales. that is foreclosed properties or short sells. down 50% that we saw in brief use months. they are concerned about a so-called shadow inventory. that is banks holding on to foreclosed properties, not wanting to flood the market with them and push prices down. that is a business decision by the bank. that is an excess supply there of shadow inventory.

let's photo rick santelli for his reaction. >> thanks. indeed, this is being perceived as a positive with respect to the market moving up in equities. yields moving up as well. however, there's a lot more going on here because, as you look at an intraday five-year and intraday ten-year yield chart, the move towards higher yields has started long before this data came out. and it didn't seem to coordinate in any large way with the initial or continuing claims due to seasonalities that most they are well aware of. why are yields getting a little volatile now? well, probably because in about 58 minutes we're going to learn about supply. that supply doesn't include long maturities, not a longer than the seven-year. but supply is supply and in several weeks we're going to be getting more maturity in the august refunding. we want to keep close attention on this, too. 3.60 yield level we just popped to. mark, back to you. >> thank you, rick. let's check back in with --

who is over there? oh, scott wapner. scott wapner is down on the floor at the big board. >> mark, haning around the highs of the morning here popped up to 70 points to the plus side for the dow. hitting up about 64 points or so right now. telecom is the best performing sector this morning. up about 2% or so. really on the back of those stronger than expected results out of at&t that i've been mentioning throughout the morning. most substantially from the at&t report is that wireless remains very strong, which is interesting in the current environment because we've heard from the likes of nokia and sony ericcson over the last couple of weeks and it's been that. record low churn rate, the rate of customer cancelation. also, record low. that's important there. iphone certainly strong, but it goes well beyond that. sprint and verizon are higher. they report next week. it will be interesting to see how they're going as well. big day for dow earnings today. five dow components out. let's begin with 3-m, way above

expectations and raised their outlook. mcdonald's, june comps were below expectations. the concern there is that could bleed into the current quarter, it could start bleeding into this current month of july. the reason why mcdonald's share on your screen is off by 3 3/4%. i do want to mention ford shares because they're at one-year high. most notably here, the cash burn rate has slowed, smaller than expected operating loss as well over ford. the shares at a one-year high. >> thank you. we're up .8 of a here. up 11 days in a row. we haven't seen that since 1996. go 12 in a row, we go back to the early 1990s. i was a sophomore in college. the only streak i knew about is how many consecutives days i went wearing a baseball hat. ebay, qualcomm after earnings, consistent since the open. guidance to key as well to the downside. the ceo coming on cnbc did not

quell the skittishness at all. chips are underperforming. intel had turned positive back to negative ter for. generally the sector is down. celgene is down. stock is bullish on that thanks so mike huckman and analysts confirmed that. up 15%. amazon.com and microsoft report after the bell, positive right now. microsoft on schedule with windows 7. google, i check it because i like it. up 3%. bristol-myers buying it for 16 bucs. of course, they definitely believe that, up 88%. and let's go back to rebecca jarvis at the nyse. >> "squawk on the street" ceo central continues this hour. doug parker, chairman and ceo of us airways will be with us. jarden ceo martin frankel are be with us. union pacific chairman and ceo on board and ready to go. we're asking them about the

reality of the markets right now of their markets, cross sector lines, cross industry lines. we hard heard from qualcomm, cme group and you can go back and review those on cnbc.com. but now, let's get to carl and becky back at earnings central with us airways chief parker right now. over to the a-team. >> wait a minute, wait a minute. wait a minute. what are you doing sitting down? >> they gave us chairs because they thought we had been putting in too throng oflong of a day a. when i stand next to carl i look really, really short. >> most people do. >> this way i look like -- it's the tv fakery. >> rebecca, as you mentioned, us airways did swing to the 58 million. the company is not counting on a quick recovery, those are their words. there's a look at the stop. up 11 cents. it hasn't been a great environment overall for carriers in the last few days. >> but we have heard us airways

and jetblue. joining us first on cnbc right now is doug parker. he's the chairman and ceo of us airways. and doug, carl was just pointing out some of your comments where you're looking foreign couraging, though modest improvement in revenue. what are you seeing in terms of demand. are people wanting to fly right now? >> it's a tough environment, becky. our revenues for the quarter were down 18%. but we are seeing some encouragement. on the -- since memorial day on a leisure front we have seen an increase in bookings, which has allowed us to get some fare increases across, which is positive. the price environment is still weak. leader side, it's coming back. on the business side we're starting to see some improvement. for the first five months of the year, every month our contract and corporate revenue is down between 30% and 35%. in june it was only down 28%. for july, only down 22%. it's down a lot. it's definitely a challenging environment. as you mentioned, as we said, we're certainly not counting on a quick recovery. but we're seeing some initial

signs of recovery, which is encouraging. >> doug, that sort of flies in the face of what we have heard at least from some of the carriers in the last couple of days. that is a that the trajectory of far ssz down. southwest airlines has some one ways for 39 bucks. that's like cab fare here in new york. you're saying the fare structure environment is on the mend? >> yeah, we've got to be careful with seasonality, which i think is what southwest is getting at. after the summer, demantd drops. fares may fall. i'm talking more year over year. year over year basis, we're seeing, again, down year over year but not down as much as it has been. >> i got you. people think carriers, doug, often trade in tandem with oil, right? or cross against oil, once oil comes down it's better for the stock or airlines. a year ago oil was $145, now $65 a barrel. your stock has gone from $5 a year ago to about $2.

does that seem strange? >> yeah. the economy got much softer in between. and the offsetting those things, you know, have largely offset each other. that is, as the economy weakened, and demand for air travel definitely weakened after the start of the year. as that -- as demand came down, oil prices came down as well. those very offsetting effects. the revenue shortfall, however, is greater than the -- what we have seen in oil recovery. so what you have seen at us airways you see from everyone. earnings for the most part have gotten not dramatically better. i should know that in today's results, we have some real improvement when you take out the effects of fuel hedging. our earnings, you know, $40 million of profit this year on that basis versus $300 million loss last year. things we're doing are making a huge difference and we're very happy. >> but, doug, the fuel hedging, that did cut in, i think it was a loss of $135 million for the quarter on that?

>> right. >> where do your hedges stand right now? where do you expect oil prices to go? what happens if oil remains at this level or if it drops by $25 or rises by $25. >> yeah, late to hedging, you're right. we do have a loss this quarter. that's what hedging is. when prices go up we had a big gain last year. we had a fall this year. we came to the conclusion last year, about august, it wasn't our best interest to be hedging. reality was it was increasing the risk to the firm, not decreasing. all it was doing because there really wasn't economic hedge, to us, as the economy gets stronger, oil prices go up as the economy gets worse, oil prices go down. we already have a hedge in our revenues. for us to speculate or try to moderate the fuel price change, what we're doing is simply paying for the fuel in at vance. in some cases as revenues got worse we're paying higher prices for fuel and having to pay for it in advance because of the securities require you to set up

collateral. so we have been hedging since last august. it's right position right now. what it means for fuel prices going forward, you know, we don't know any more than what the market tells us. our models simply put in what the forward curve is. what that all calls for, you know, the revenue environment describes, and oil prices staying where they are or somewhat higher, calls for a continued difficult environment, which we are well prepared for. >> doug, it's been great talking to you today. thanks for joining us. >> thanks a lot. >> again, doug parker, ceo of u.us airwa airways. >> thank you. up next, we're going touk to a ceo of a fascinating company. i can't wait for this one. you have their product in your home no matter what you are or who you are or where you are. don't go away.

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we are back. it looks like cost cutting is paying off for household products make joer jarden, they posted a higher net income despite lower sales. here to tell us how, first on cnbc, jarden's ceo martin franklin. when i said before they are a fascinating company thanks make so many different things. a sampling is crock pot, food saver, mr. coffee, bicycle and v playing cards, k-2 skis and

snowboards, recall iawlings equ balkl canning jars. >> that was the original business. >> you must have a really good time at work. >> i have a lot of fun. it's a great company. the common theme is they're all market leaders in their respective markets. the strategies have always been dominant market share, niche market. >> but they're consumer goods. >> all consumer goods. >> how are you doing? >> we're doing well. i've always said, you know, it's better to be the number one player in a market that gets tighter. you can grow share when you have tough economies, tough markets, and you can protect your position. and that's really what's happened. we've grown shelf space. we've out-performed categories. and it's really cushioned the blow in what's been a difficult consumer space. >> is there a favorite child anywhere in here? >> i love all my children, equally. we haven't sold a business in eight years, 7 1/2 years, since

i became involved in building the company. it's been a very stable portfolio. and you know, i'm inside our mantra is there isn't a asset inside that company that couldn't be better. >> how is -- let's talk about coleman. how is that doing? some of what's in your company, five to ten years ago, could fairly have been called damaged goods, had been badly handled by the management at the time. how are they now? how is coleman doing? >> i have to tell you, so many stories, i could give you different parts of the company. coleman is something i'm proudest of. when we came in, we were doing 53 million, no advertising budget, zero. when i asked the product development manager i said, how do you make a product. they said we look at private label and make it better. the reality is we built a whole product type line from scratch. it's really now been taking off the business -- almost twice what it did when we came in in terms of profitability.

but it's now spending significant ad dollars on television and media, advertising. our product type line is huge. we're doing really well at retail. it's been a huge turn around story and, you know, it's been because of investment steps we've taken over the last few years. >> what is your perception of the u.s. economy right now? where do you think we are? >> america is, you know, i moved to america from england. this is the greatest country in the world. it's a country of survivors. and i think that we're in a lot better place today than we were seven months ago. and we haven't turned a corner. it's still tough out there. i really do think we're beyond t worst of it. i think that if the trend continues, you start with a better psychology and i think that the numbers are going to show the reality is actually getting better. it's not there yet but definitely better than it was six months ago. we were early in saying it was going to get bad.

and i think that we've battened down the hatches early. now we're starting to see some much better trends. >> you said earlier you haven't sold a business in eight years, right? >> correct. >> you're a buyer. >> i am. >> how do you -- you know, obviously there are certain things you can't talk about. since there is no over-arching theme here other than the consumer -- >> and market leadership. >> -- how do you decide what to buy? nothing would fit and everything would fit. >> yes, yes, except we have really three main consumer platforms today. we really have developed a theme. and it really fits into three broad categories. and you're right, there are continuing opportunities in which to grow. but we've been focusing on deleveraging. we work -- quis tive person like myself, we've got $625 million of cash on hand and it's always tempting to put it to use. but the reality is we're very disciplined. you know, i really do think that

we're very happy with the -- >> so when it comes to buying, you're really more interested in, can i make this company or this product a market leader? >> yeah. and expend -- expending our existing position into new markets, if we have an opportunity to do that. we've bout a couple of businesses out of bankruptcy court. very small ones. for us, it's almost like capital expenditure, and allowed us to extend our portfolio in the same channel. we're taking up small opportunities that are very healthy for our business. >> all right, sir. thank you very much. appreciate the briefing. martin franklin runs jarden. from earnings to etfs, we go. robert steins, management still on a role earlier this year, forbes.com named them the number four best managed etf portfolio for 2008. so far this year they managed to portfolio up 8.5%.

right now, founder of to see how he's staying on top this year. robert, tell us, what are you doing? >> we're taking an active approach. we don't believe buy and hold works very well. and we're economists. we look at economic cycles. there are four distinct cycle, expansion, peak, contraction and trough. our function is to identify what cycle we're in, not forecast. identify what sectors are experiencing the cycle and build a portfolio around that. finally, are we try to put etfs that have low correlation to each other. we don't see any value in having a lot of the same things in the portfolio. >> i heard a lot of hedge funds are using etfs on the financial side of things. should that concern the average investor who is thinking about investing in etfs themselves? >> i think it creates liquidity and product development. the more likely the providers are going to create etfs that fill a niche. and so, as you see investment

opportunities in specific sectors, it gives incentive for the companies to create exposure to those sectors. >> let's talk sectors. what do you like right now in terms of the etf universe? >> i still like technology. we like technology earlier this year. i believe it's actually through with its recession. i also like the biotech and health care sector. kind of counter intuitive right here. but even the rally that the ihy has had, they're still trading below what i think is a reasonable valuation. we're weighted towards those. we also like a lot of corporate fixed income etfs as well. >> how do you analyze etfs as opposed to looking at stocks? when you look at a stock as an average investor you can look at the multiple or earnings momentum. what do you look at specifically when you're looking for the right etf snz. >> i'm glad you asked that question. for us it's about employment trend and outward trends. if a sector is adding jobs and making more stuff, it expantds. we look at the employment report and see where jobs are being added or lost. we try that to a sector that has

a correlating etf and purchase that etf. we see if it correlates to the other parts of the portfolio. >> i want to just say to the viewers the ad touch 2000 at the beginning of the year, something some people are watching. in terms of what you're watch for trends going forward, where do you think shake out here, when do we start to see growth in the labor market? >> i don't think we'll see that until much later in the year, maybe the beginning of next year. i think it will be sort of a tepid and slow growth. i believe we'll be in a recession 18 months after this one has been finalized. be careful of the double dip. >> you're a little bearish there. >> 18 months. we've got a long way to go from a valuation standpoint. >> thank you, robert stein, for being with us. appreciate it. >> this one snuck up on us. we were up 10, we were up 20. housing numbers came up. >> exactly. >> had a big jump. up 70. now we're over 9,000. coming up, a cnbc adviser network, keeping an eye on real

estate investment. >> but first, scott cohn is in. we don't know where he is because it's a secret as he reveals the top states for business, all day here on cnbc. scott? >> rebecca, welcome to my world. half the time i don't know where i am. i know where i am today. it's america's top state for business. annual countdown. we'll start it and give you the first of our diabolical hints as to where we are, top state for business. that's coming up on "squawk on the street." right now, 1.5 million people are on a conference call. 750,000 wish they weren't. - ( phones chirping ) - construction workers are making 244,000 nextel direct connect calls. 1 million people are responding to an email. - 151 accidentally hit "reply all." - ( foghorn blows ) that's happening now. america's most dependable 3g network bringing you the first wireless 4g network. - sprint. the now network. - ( whoosh sound ) deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. know-it-all... expert. a guru.

how about wu? wu will do. where to? first stop... peru. vincent wu to katmandu. what's next? timbuktu. area code 212. so, timbuktu, katmandu, peru, and 212. all by half past 2:00. not a problem. [ female announcer ] need an expert? push a button. that's the human network effect. learn more at cisco.com/newways. phew!

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welcome back. quick check on the markets. they crept up here a lot after the home data came out more positive than expected. we saw 9,000 on the dow first time this year. dow is up now 1.3%. nasdaq keeping with the trend, s&p 500 overall markets also come keeping up with that trend. 3-m, at&t, alcoa, dupont. 3-m came out with an earnings

report past expectations. alcoa and dupont, some of these players that really played to some of the emerging market stories, also performing exceptionally well today. all right, in cnbc's third annual top space for business rankings revealed, we are counting you down with the beginning of number five and your correspondent scott cohn is in, can you guess where, usa, the actual number one top state, which will be revealed later on "street signs" with more. scott? >> hi, rebecca. we do this every year. third year in a roerks as you said. we rank the states on about 40 measures in ten categories, cost of doing business, workforce, quality of life, economy, transportation and infrastructure, technology and innovation, education, business friendliness, access to capital, and cost of living. so we're counting down the states that kim in one, two, three, four, five in those rankings. and here we go with our countdown and state number five.

utah, the bee hive state makes its third consecutive appearance in our top five, dropping two spots from number three the past two years. utah scored 1393 out of a possible 2500 points. utah gets its best marks in the cost of doing business and quality of life categories where it comes in at number seven. it also shows a marked improvement in the education category, a pweak spot where it moved to 46 last year. utah fell hard in the economy category. 14th place this year. it had america's third best economy last year. the real estate crisis has hit hard here. foreclosures have more than doubled since last year. unemployment in utah stands at 5.7%, still below the national average but more than a 2-point jump from a year ago. the individual and corporate tax rate, both a flat 5%. the state raised its sales tax this year to 4.7%. utah's largest employer is

intermountain health care, a non-profit system of hospitals and clinics serving utah and idaho. the industry is minor. >> so as you'll see throughout the day here, the economy, the economic slow down has started to effect the rankings. it's just the earliest effects because it's a little bit lagging here. but it will be interesting. so, where are we, state number one? here's the first of our hints. the first hint is, got milk? think about that one. that's the first hint. next hour on "the call" we will bring you state number four and you can read all about our study. at the end of the day you will see how your state stacks up at our special website topstatesforbusiness.cnbc.com. >> thanks so much, scott cohn. we will be following you throughout the day. we also have breaking news on inventory. let's get to sharon with the numbers. >> we're waiting for the number to come out. right now looking at natural gas prices that have been rallying. actually have been the strongest

part of the complex for the last couple of days. even though oil got a little bit of a bid as well as the dow. went above 9,000. we are still looking for an