you tonight on "dow 9,000," is this rally for real? are we getting set up for another tumble. by now, two plus percent gains across the board. then the bulls ran into trouble after the bell earnings news. >> we have full coverage of it all. rick santelli standing by in the bond market, scott walker at the nyse. we start with the less than stellar reports after the bell threatening the rally. rebecca. >> less than stellar reports after the bell. if things stand where they are, microsoft, american express. they open down not only significantly. but they also suppress the dow below that 9,000 market. thanks to cnbc's stat man, air yell nelson for crunching the numbers. the story, you're looking at it in the after market, indicated significantly lower. window sales fell for the first time ever, forecasting more cal lengs on the horizon and higher loan losses.

people using their credit cards less. delinquencies up about a percent from last year. outlook is still too early to call. that's what their ceo says. let's get over to scott wapner for more. >> weak earnings after the bell as you just mentioned. the futures don't look pretty for tomorrow morning. take a look at big ones today from the at&t and 3m, at&t wireless business is strong, goes be yind the iphone. the churn rate at a record low, 3m easily beat expectations. take a look at the move we've had, brood based over the last nine days or so across a number of sectors. when we rallied off the marlo, it was largely due to financials. this one was brood based across the board. materials tech and energy all rallies. let's go to ryan shactman. >> up 13% in that spread. everybody talking about 25% for the year. what about 55% since the market

lows. the two big stories to the day, ebay and qualcomm. qualcomm was negative and now have a $200 million fine from south korea. they were down. i want to talk about why we're going to be lower. amazon giving 7% back. they were up in revenue, but not as much as expected. that's the problem there. microsoft, miss on the top, miss on the bottom. window seven, yes, on its way. can't get to 30. yahoo, by the way, will talk tonight with their board about a search deal. let's go to rick in chicago. >> thanks, shack, if you look at elk, this is investment great corporate, close to the highest levels of the year. that's not a bad thing. if you look at the dollar index over a long period, it didn't do much today which is interesting and improved dramatically against the yen. it's still under 80 which is perceived to be fair value. look at the five-year and ten-year, indeed they popped up today. $205 billion in t bill and coupon supply bill next week.

the credit market, the better it looks for stocks, sometimes interest rates tend to move higher as well. back to you, dennis and michelle. >> that's right, rick. thank you for that information. let's talk more about the huge move in treasuries. what do you think is happening there, rick? are people thinking that the economy is getting better? >> i think interest rates are going to be a very volatile gain. it's risk perception seems to moderate in terms of let's buy equities, let's move into junk. >> good point. >> that's going to have a positive effect. we still have boat loads of dead every other week as far as the eye can see. let's not forget just a week ago we didn't know what the fate of c.i.t. was, didn't know the fate of california. >> still don't. >> scott, every time i yell on the rally, but the volume has no conviction. wasn't the volume today pretty good? >> absolutely. there was a lot of activity. it was a brood-based raldly. that was pretty interesting to

see, built momentum throughout the day as the housing report came out. let me make this point as well. as jpmorgan made today, there's a lot of talk about revenues are slowing, and that's hurting earnings. it's really because of cost cutting, et cetera. if you look at earnings and revenue growth on a sequential basis, rather than a year over year, the story is getting better. >> it certainly is. >> opposed to a year ago, they stink. >> you can say that about a lot of the technology stocks as well. look, that chart you were showing, already coming well off the bottom here. >> here is the funny things, guys, apple, money on the sidelines. people don't want to get in on top. they don't want to get burped. a pullback like this, maybe it's opportunity. when it comes to tech, up 55% since the march lows, people want in but they don't want in at the top because they've seen what happened before. when we see all these earnings, and i want to ask rebecca, is

top line growth, are you seeing any companies that are showing top line growth. maria is talking about it's not there. we're seeing it sometimes there but not across the board. >> it's a rare find. one of the things that's suppressing top line growth is the fact that the dollar gained a little momentum in the last quarter over some other foreign currencies. what some companies are saying is that that dollar strength actually hurt them. and if you were to look at those companies going forward with some dollar weakness, they're saying maybe things would look better. >> all right. look guys, tokyo, nikkei index opening up over 1% higher. good to see that. let's get to the bulls and bears there. harry dent, i'm guessing he would be a bear because he's the author of "the great depression ahead." john brown is with euro capital. he's a bear, too. i'm going to convert him. john lincoln with leader capital and scott migliori.

jamie foxx is with paris financial. how bad of a sell-off are we looking at tomorrow, scott? >> i think at the open certainly we'll give some back. as has been pointed out earlier, we were due for some correction. we remain quite constructive on equities. you've got a nice combination with better-than-expected earnings for most companies. over 70% of the s&p 500 has beaten expectations. you have a fairly benign inflation backdrop and compelling inflation. >> yet the bears say we've got a lot more clouds on that horizon that are a lot worse. harry dent, one question for you. you missed out, if one is bearish, on a 40% plus rise in stock since early march. do you feel a little bad? >> no. we predicted this in our book that came out late last year, a strong bear market rally end of the summer, up to 9,000, maybe

10 or 11. and then we would see another downturn. >> are you saying, 11,000 and then get out or are you getting out now? >> we want want our our newsletter subscribers to get out yesterday. we think it's possible stocks topped today. they may come back and rally. >> if you're out at 9,000, i'll be mad i couldn't have ridden it to 11,000. >> what's the rationale, larry? >> very simple. all the leading indicators, everybody says recovery. we agree with that. the baby boomers, the largest generation in u.s. and western history are peaking in their spending. >> jamie, you hear that, it's different this time? how many times have you heard that? >> more than that. >> the greatest credit bubble in history is peaking and deleveraging. these things take three, five years plus. we're going to see more banking crisis later this year and next year. >> jamie, what do you think?

>> henry, i respect your opinion but i respectfully disagree. you've seen a big splaning in the savings rate. if a car is driving down a road at 100 miles an hour and you throw it into reverse, you're going to have problems in the short run. maybe we've got savers. breaking news as the asian markets start reacting to the rally we had here. or yell more rin son is standing by. >> we've got a lot of buying around talking about the opening numbers, up by 1.2%. we'll see if we can make eight consecutive days for the markets in japan. also high in south korea .6%. five and a half year high. pretty clear turn around from the fourth quarter of last year. that was when the economy had its worst contraction in 11 years. australia, also pretty strong, high by around 1.4% on the open

at 4,121. michelle. >> thanks so much, air yell. let's go to john laka, i can swear you were on my show a couple nights ago, we're going to a dow 4200. do i have that entirely wrong? >> no. we said 4200 by 2011. >> you're not buying anything right now, you wouldn't buy into this rally? >> i would sell these rallies, comments on earnings growth is down 25% to 60%, same thing with just basic earnings across the table. >> moving higher sequentially. >> you want a one-week period, 30-day period, who cares? the trend is down. sell these rallies, buying -- >> the trend maybe lower yield over yield, but the pace of decline has slowed dramatically, actually starting to show improvement. >> interesting because most of the earnings are from selling

assets. organic growth is negative. for example, ford motor company lost $630 million and came out and said they had a positive quarter. r revenues are declining. it's just not going to get better. >> let's go to scott migliori. isn't it a chance the bears are right on the details but just wrong on where things are really going? >> a lot of what you're hearing is rear view mirror thinking. you have to look ahead. look at the shape of the yield curve. everyone ignored the yield curve in 2007 when it went inverted. we actually did go into recession. right now you have the steepest yield curve we've ever seen. i think that's a great indication of economic expansion, some inflation concerns as well. ultimately i think it's going to be proved right. >> looking at the normized curve is looking backward. looking forward the fed has to raise rates. we think the yield curve goes inverted. >> it's clear that won't raise

until 2011. john brown, don't you -- >> john brown, if you wait until we see end consumer demand and start to see year over year improvements in profits, you will have missed the rally. >> unfortunately the fed is reactionary at best. as the dollar wanes because they print more currency you'll run commodity prices up, hit us with a big dose of inflation and the consumer can't handle it. >> inflation, john brown, don't you feel bad about missing out on 40% up? >> well, not too bad because a lot of traders have made a lot of money, and i've said, as the other john said, this market goes 10,000, even 11 at the outskirts. actually we're in the eye of the storm. it's very good sailing on a calm sea. about the second wave of the hurricane is about to hit us. i think in the fall you'll see major falls in the market, for two reasons. one is, first of all, the earnings are unsustainable. the banks have been saved for a time. their earnings are inflated. t.a.r.p., will make 10% on

t.a.r.p., that made a billion dollars. that's not going to happen next time. the yield, the fed is holding the short end -- >> why does that matter? >> the worst thing is that the banks are being paid interest on their reserves. >> that's a great thing. that's the whole idea. >> it may be the o whole idea to save the banks. but why lend to industry. >> we'll bring this up more after the break. we'll get back to why john browne is so smart and yet so wrong. more to get to tonight including much more from the bulls and bears. actionable items. naming names, picking stocks. things to do right now. this is a special edition of "cnbc reports." we're back in two minutes. [ engine revving ]

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migliori. microsoft missed revenues by a billion dollars. that's why you see the futures lower. the nasdaq would be lower by more than 20 points. you want to know what cramer

thinks about the ups and downs of the market? here it is. >> many of you have seen gigantic profits in the span of two weeks' time. i want you to think back to two weeks ago when you were despondent and miserable and hating watching me. now the market is way overbought. people are throwing money at stocks. hey, without even doing any homework right now, something that often happens in the teeth of the earnings season, when there's not enough time to learn whether or not a stock is worth owning. what i'm going to tell you right now, a little antithetical, even as i destroy this little polar bear. southern exposure. i want you to ring the register and take some of those profits off the table, maybe go buy a sweater or two, even as this seems like a dynamite time to buy and it's so exciting. >> jim cramer, the ultimate

bull. he of little faith. is it time to take some profits? >> we have harry, john browne, scott lekis, jamie cox. what do you think of cramer's comments there? he's losing his nerve. >> he's just being a responsible investor. you have to take profits when stocks run up. that's something that you do. corrections are normal. i don't think that's really out of character for jim or any of the rest of us who were trying to manage people's money in portfolios. >> scott, it does seem like an obvious trade. the nasdaq up 12, 13 day ins a row. at some point it's going to fall. at some point you do a short-term trade. >> if you want to be very short term you can do that. if you take any sort of longer term horizon, you should look at the opportunities with a fullback and look to get more fully en vested. >> everybody wants to talk about equities. the reality is you should be putting more money in fixed income. we're up 8.5%, market is up 3.5. you don't have to worry at

night. >> wait a minute, john lekas. i could have sworn that you were telling me that inflation is going to come clobber the market. i thought i shouldn't buy the bonds if they eat into my yield on the bonds? >> we're on the short end of the curve, under three years in duration. those are fabulous places to be if you think rates are going to go up. as a matter of fact, it has been a fabulous place to be. last year and this year. >> john lekas, you were nodding your head -- john browne, sorry. >> i agree with the very short end. the long end is a big trap. could i please answer that question you asked about the root of this problem. >> yes. >> the fed gives interest rates on bank reserves. that's good to salvage the banks. that means the banks -- why would you lend to industry when you can get money from the fed with no risk? >> because they need more capital. they need to recap tallize. that's the whole point. >> it's stifling money from industry and from consumers.

you need consumers to have demand. we have even ben bernanke talking about a jobless recovery. that's an oxymoron. unemployment and consumer demand are lead indicators, not lag indicators as they were before when interest rates were the cause. recession was caused by a lack of employment. >> let's go to harry denton, the guy who wrote the book talking about the next depression. by the way, harry, a colleague of mine actually told me tonight that you also wrote an earlier book saying "dow 2,000." is that right? >> yes. we have been overbullish in the past. >> were you wrong then or wrong now my friend? >> we are not going to be wrong about this. this is the greatest bubble deleveraging in history. the bubble booms are always followed by busts. it's inflakes their and takes years. the banking crisis which will start a recovery is in progress. the last boom got killed by

banking deleverage overnight. this is going to happen again. >> i'll tell you something else, analysts have been dead wrong. most of the reason for this rally is analysts putting their estimates down too low, just like they did at the top. >> that is the pattern. it always starts that way. they always underestimate. they blow it and then the market responds. this is the pattern over and over again. it's not different this time. >> it is different this time. >> you'll change your opinion this fall. markets will go down. we won't hit new lows. next year we'll see substantial new lows in the, ma. i'm willing to bet anybody on this panel $1,000 or whatever. 3800 on the dow. >> 3800? come on! >> always go back to where they started, 3800 on the dow or lower. >> you're talking about stocks that were valued at 1960 or something? >> back to 1994 levels when the

bubble started and back to 2000 levels only when the bubble started. we're just erasing the bubble, that's all. this always happens in history. there are no exceptions. >> scott, scott, would you get in here, please. >> i agree with him exactly. >> no exceptions. >> 200 years. >> let the bulls get in here. >> one thing we're not just correcting -- >> i asked for scott. hello. >> scott is never coming back. i called for him six times. he doesn't respond. >> jamie cox, are you going to defend ever bybody here? >> scott doesn't want to be part of the panel. >> baby boomers would peak in the decade. they're starting to save and are

scared to death. >> jamie, you got five seconds jamie. >> they don't have anything to say. >> jamie? >> come on, harry, you have to think that maybe you're wrong. think about -- >> i can be wrong. >> there's a reason why he's wrong. why is he wrong, jamie? >> because i think consumer demand is going the pick up. i think the consumers will spend if they have credit. >> they do have credit. >> they don't have credit. try to get a loan. >> the reason people don't have enough credit is because banks are terrified. arm ged ton is off the table. golden and jpm, and the bears always assume consumers are permanently scarred. with a good run in the stock market, people will be out buying jet skis again. >> they don't have the credit

the buy the jet skis. >> in public, $1,000 bet, i'm waiting to see who will take it. >> 3800 by the end of next year? >> because you're worth 10 or 20,000 more than me. my thousand against your 10,000. >> i work for cnbc, they don't repair the holes in the patchwork. $5,000? >> scott, can you get in here one more time? >> i'd love to get in here one more time. i think talking about recession frankly is an old debate. we're clearly coming out of a recession. the issue going forward is how does the fed and the obama administration deal with it. that's the critical issue. >> you're looking at a marriage. >> we're about to wrap. if you're coming back, don't move. we have more bears and bulls. harry dent, $1,000 bet, is that

what you said? >> 3800 in 2010. you are on. $1,000. >> mark it here. i'll be charging it to the expense account. we'll jump into mutual funds. who you believe, how to make some money these days. where should you place your bets? stay tuned for that. 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.

for the first time in history, microsoft posted a drop

in sales. that is why you see weakness in the futures. dow jones industrial average, if it opened right now would open lower by roughly 70 points. nasdaq would not look so good either, would open by roughly 25 as well. the nasdaq would pull back in the face of the big rally today. >> the real reason you'll see stocks trade-off tomorrow is because they've been up so wonderfully well. you'll see a little sulking going on. a tough question for everyone here. harry dent, you just bet me that the dow hits 3800 in 2010. i think it's un-american, but i'll take the bet. john browne, where is the dow going to be in 2010? >> i don't know exactly where. i think it will see markets by about half by the next six months. >> john browne the bear, 4500. stock lekas? >> last time i was on the show, 4200 by 2011.

that was based on 50% decline in earnings across the board. >> give me a 2010 number? >> 2010, 6200. >> rebound. wow. >> by the way, i would like to declare myself an independent, not a bear or a bull. >> i'm going independent here. >> scott mig migliari. >> jamie? >> dow 11,000. >> i've done a couple of dow 11,000 specials. i would like to do another one. >> jamie is the guy we're taking out to dinner. he's going to be more fun to do with. >> you can use your $1,000, dennis. >> you're right. i could. let's go more into what sectors. >> when you say dow 11,000, jamie, what part of the dow is going to get us there?

is microsoft finally going to recover. is it going to be that health care finally dies and that way we get the pharmaceutical sector to recover here somewhat? >> we need some new leadership. what you'll see is telecom participation that's going to help. look at the index, look at verizon and at&t, we can get those to move $10, $11 each, we're talking big moves there. >> at&t came out with a pretty strong earnings report today. how about the bears. you've got to be putting your money somewhere. john lekas, you say fixed income bonds. where else? >> i think fixed income bonds. that's a phase we're in. that's where we'd be, short end of the curve. that's where we'd be residing, fixed income. by the way, we agree with warren buffett, that's where he's putting his money as well. >> he's had a great year. >> he also has money in goldman

and general electric because he's betting on a rebound. >> not recently. predominantly his money has gone into fixed income. >> by the way, don't bet against the u.s. dollar. it's undervalued. the euro is over valued. >> i disagree with that. >> the euro is in energy, gold stocks, fertilizer, in the non u.s. dollars, canadian fertilizer. i think the dollar is grossly overvalued. >> gone down dramatically since 1985. >> going to go further. >> john browne, just because you have that nice accent doesn't let you talk longer than everyone else. i want everyone else out there, the viewers to realize, you see the difficult very jent opinion going on here, you know why? none of us knows for sure. that's what makes a trade.

thanks very much guys. much more on this special cnbc report coming up. [ engine revving ] [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check

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market is up gloriously today. 2% gains across the board. >> futures, when you look at what might happen tomorrow, not so much. indicating a negative open at least right now. a lot of volatility. we're still 13 hours away from the open. but the weakness comes from less-than-stellar earnings after the bell. let's get with rebecca jarvis

for the details. >> microsoft and american express, if things stand where they are now, they both opened down big that weighs on the dow. the dow opens below 9,000. window sales down for the first time ever. you see it down in the after market trade. the dow component also sees more challenges ahead on the horizon. am ex facing delinquencies there. in terms of outlook, the chief exec says it's still too early to call a recovery. this is not something the market wants to hear. it's certainly weighing on things right now in terms of these particular stocks. michelle, back over to you. >> thank you. breaking news as the asian markets start reacting, nikkei up more than 1%. adam has more details. >> thank you very much. a strong day for the asian equity markets. japanese equity markets being the second in asia. fueling the gains is of dours

what we saw of wall street the previous day. but also it's a currency mark, we'd morris, come back in the currency market. pushing the yen below the '95 level. right now sitting at 9488. at least the weakness is helping to boost a lot of the stock. a big month for corporate earnings. next month we get big names coming up from japan. today hearing from samsung electronics, the world's largest lcd tv maker. a tape of what to expect, those numbers out about half hour ago. the operating loss number coming less than expected, clearly recovery in the chip sector. the big boost on nasdaq. back to you, michelle and dennis. >> green arrows across the board. >> some of those indices are up 30, 40, 50% this year. they're not taking profits, not looking at a retracement. they believe in their economy. >> how do you take some action on all of this? >> to tell us, we've got james officer, managing director of

formula capital. buck conrad from kc research, john browne with euro pacific. john lekas and jamie cox, managing partner for harris financial group. james, you're the newcomer, give us a couple of specifics. you think we'll have the nice selloff. some stocks you want to put money into now. >> let's say it lasts a few days. we have another $700 billion in stimulus coming. let's start investing in companies that help the highways or are involved in highway repair. you have aztec industries, they help pave all the highways, lindsey corporation work in both water infrastructure and highway repair. they make the orange cones in all the highway construction. i like major farming, eli lilly, wyeth. >> do you think health care reform is dead? is that why? or does it not matter? >> both. i think a, it's dead to resting

for a long time. and b, alzheimer's in is the third largest killer in the u.s. and only getting greater with an aging baby boomer population. wyeth and lilly are the only ones developing drugs. that's a $20 billion a year market. >> they're the guy who is lighting the candles. let's go to jamie cox. give us a couple specific ideas, jimmy. >> i like telecom. this technology run-up has completely left telecom in the dust. you have at&t and verizon connected the technology in the '90s. these companies have real earnings. they have real free cash flow and fantastic dividends. i'm a big proponent of these. >> business keeps growing. i wonder if that video play ever will kick into gear, and now -- >> but conrad, we have a new guy on the panel, bud conrad, give us some ideas. al you're an economist as well. do you see a turn in the

economy? >> thanks, michelle. the big picture is that we are going through the worst kind of deleveraging, i call it the great deleveraging. i thought harry and john got it pretty well last round on that. this is not like a normal recession that we're coming out of in a short time like ef every four years. we have too much debt. that problem is going to take us years to get out of. and the problem is that the government is making it worse by borrowing more. >> all right, bud, let's say much to dennis's chagrin that you're right. what does that mean that people should be investing in? >> i have for years been suggesting to protect yourselves against the ultimate inflation from the collapse of the dollar buying gold and recommending that for years. but my single biggest recommendation now would be short interest rates. in other words, worry or expect osh bet on the fact that interest rates will go up. and the reason is the huge amount of debt, particularly the

government borrowing, $235 billion in the next week? that's off the map. we haven't -- >> made that trade today. you made a ton of money. the ten-year shot up dramatically. >> that's the background that makes me have a difficult view towards investing in stocks. a tail wind from inflation so that some stocks will benefit as the dollar depreciates. there's a big head wind from the interest rates. >> john lekas, you're a sad, sad person in terms of the outcome of the economy. you're a very sober person -- not sad, sober. give us a specific place or two to put our money? >> the best out there is lccmx. i happen to run it. that's your best. if you don't want to do that, i would avoid equities. play them indirectly by buying convertible bonds. >> avoid equities, altogether? up 40% since march and you would avoid them, and would not avoid them because they're up 40%

since march? >> that's a great reason to avoid them. that's because of the analysts underestimating them. convertible bonds are great, i like penske automotive group, as we talked about last time, they just acquired the saturn dealerships and pro logic convertibles as well. >> john browne, you want to give us a specific recommendation or two on where to put your money? >> it says hear you're buying here mays. >> a major erosion of the dollar if not a devaluation of the dollar. therefore, i'd be long on euro. as an investor you want to be right in your currencies. if i invested in equities, i think all equities will be dragged down. >> hold on, hold on. in the note you would buy air maze, the swanky company for rich people. if you think the world is going to hell in a hand basket, why would you be buying air maze.

that's my very bad american pronunciation. >> the very super rich are going to spend on $20,000 for a time. the people that actually work the american economy that would be buying a harley-davidson. >> got to be careful. get things like energy, cold and agriculture. >> gentlemen, you're all so much better at this stuff than i am. in my 25-plus years of covering business, i've never seen the divide so wide in terms of whether we're going up or going down. i guess that's what's going to make the market even more interesting in the next few months. up next, it's something that i think will kill this rally for sure. obama-care. >> health care reform. president obama was talking about that today. before you make your next trade, you're going to want to hear what he said.

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we had a great rally today. dow back above 9,000 for the first time in many, many months. futures are indicating a weaker open. we're still more than 12 hours away. we brought john browne on the set. were you making fun of me the way i pronounced -- >> i'm old. my army ruined my ears. >> i said air maze. >> airmes. >> how do you say tomato? >> when i'm in america i say tomato. when i'm in england i say tomato. >> ribeld. it's. >> how do you pronounce primer? >> primer. >> it's primmer. forget about that and the not so great after the bell results.

i'm not going to let that scare me. something else could kill this rally. health care. president obama's health care. here is what he said today. >> that's why i said even as we rescue this economy from a full-blown crisis, we must rebuild it stronger than before. health insurance reform is central to that effort. >> then today senator mitch mcconnell told john harwood the president's urgency to push this bill will only get the company in trouble making dennis's argument for him. >> this is about the nation's health care. and getting this done right. and we have an example in my view of not doing it right. that was the hurry-up job on the stimulus. >> boom. good point about the stimulus and the hurry-up job. after hearing that, does obama really deserve credit for this stock market rally? i'm not thinking so. julie, i'm thinking she thinks so, a democratic strategist. also with us, jason brooks,broo

moneyed for or krio radio. i got to tell you, julie, the only credit obama deserves for this nice rally is because we think that they're going to kill his health plan and he won't hurt us after all. >> exactly. >> what? >> that's exactly right. >> no, listen, if this rally had not happened, had we had the opposite, had there been a huge sell-off today, you would have said barack obama went out and made the speech about health care and the market tanked. we can't win with you guys. with what the market saw with what obama proposed yesterday and they weren't scared because they know -- >> no. >> they know. >> no, no, no. the markets -- >> this all starts the day the cbo came out and said, you know what, none of these plans on capitol hill achieve universal care, nor do they lower cost. you know what, the blue dogs were out of it. >> no, michelle, dennis wasn't calling for a end of the recession well before the cbo. >> there we go. >> jason? >> markets aren't even looking

at that right now. markets are looking at what they've been looking at for the past two weeks. sales continue to be down. revenues are still lower in the earnings. but what we're seeing are the cost cutting. >> are you saying if they give up on health care reform, that is great news for the economy. we're going to have to government out of a major sector of the economy. we're going to have not socialized medicine. >> michelle, no, business does not want to see this happen right now. we're seeing massive economic cataclysms take place right now if they don't want to say massive changes take place. >> you're making my point. the fact that it's dieing a slow death here is good for the markets. >> no doubt the market is going to react that way. i don't think the markets want to see anything like that happen. raising taxes on the wealthy. that's not going to help in their view. and small businesses, if they have to be forced to change their plans or raise more money for that, that's going to put more people -- >> go ahead, julie. >> let me be the voice of reason here. in 30 years one third of the nation's economy is going to be

devote to the health care cost it is we don't get them under control. what this is trying to accomplish is to get the costs under control, which is not good nor anything, including business, or the nation's long-term economy. b, expand business opportunities and health care opportunities. >> julie, do one thing for me that not a single democrat has done yet. nancy pelosi comes out after the cbo and never acknowledges, guess what, this has not been the cost curve in any way. it raises costs. no, she just keeps on talking like everything's the same. >> how are you going to fix the cost curve? >> i will tell you. there is a democrat that responds to that, his name is barack obama. he said he will not sign any legislation that comes across his desk that is not going to be revenue neutral. he's addressed that. >> tax the daylights out of rich people to make sure that doesn't happen. >> that has nothing to do with bending the cost curve, julie. >> are you taking about us bringing the health curve down? >> absolutely. >> you're going to bring it down through prayer. any time you provide better health benefits to more people,

usage goes up, not down. here's the thing, julio oh. >> i disagree with that premise, but go ahead. >> this is where the health care is in danger of failing. it's not just millionaires anymore who is upset. i looked at one study today, a business with a million dollars in revenues makes about $38,000 in profit and will end up giving up 32% of the profit to this if they don't pay. >> i could buy 100 -- i could -- you know, i've heard this argument -- >> the idea that you're going to charge individual people if they don't have health care -- >> dennis, oh, come on, i have heard this argument about the minimum wage. i've heard this argument time and time again. >> they're right. >> apparently they're not right -- >> all right, we got to wrap. we have something else coming up. thanks for being here. julie. up next, what you need to be watching tomorrow other than cnbc, of course. when you're really in pain relief can't come fast enough. introducing bayer quick release crystals. it's ready to dissolve faster than caplets or tablets. it's a whole new way from bayer to dissolve pain fast.

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futures are indicating a negative open. keep in mind, we've had a tremendous rally, which right now is continuing in asia, in fact. let's get to adam here, standing by with the latest there. >> hey, there michelle. very strong for the asian market. talk about samson electronics. breaking the wires. the world's largest memory chip maker, 2.3 trillion versus 4.68. also beat up the operating profit level and the margin across every business was stable. back to you. >> samsung smashing the numbers.

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