the rally is certainly intact. on the trading session, almost a 2% gain. nasdaq with 1 and 1/3%. >> they say the research staff put out an alert that we are on pace for the best july for the dow percentage-wise. >> for real? >> for real. since 1939. 1939! is that unbelievable? the best percentage gain for the dow in the month of july since 1939.

and we have the options up and $235 billion. >> we're got rid of all of it. that's about right. the treasury was able to get that all auctioned off and they raised money and one was sloppy, but compared to what we had for the auctions. we did pretty well. >> always more to come and more "power lunch" tomorrow. we hope you can join us on a really special occasion. a birthday being celebrated in all 50 states and we will have a cake to commemorate that. >> can't wait. >> "street signs" begins in 30 seconds. southwest airlines is making a bid to acquire frontier airlines. they can appeal until a better one comes along. they give control to the company's lenders.

almost four years. because the pries have rallied and $28 billion. i'm julia boorsten. >> hello, everyone. we have a rally under way on wall street. up about 148 points for the dow. there is a lot of hope out there and the question at this point is is it really justified? we will tackle that and ken lewis will speak for a couple of moments about the economy and there could be market-moving news and we are going to bring it to you. this we believe will surprise you. that is our show and it starts right now. welcome to the show. the dow right now up about 152. one thing to emphasize and we have the game after the open. we were up as much as 175.

bob da sanny is here with us and rick santelli at headquarters and at the nasdaq. you see right after 1:00 with

things on sale. the market was dipping a little bit. volume picked up and this was the etf what the professionals buy. huh the dollar moving down and the jobless claims. we vnlt been at 1,000 since november 5th. up 2008. we have to go through with the 30. i give it a b plus. we had a b plus auction with the traders i talked to. an a plus. what am i talking about. the short end didn't move much and it's high. we broke under the 360s in a 10-year.

a bit of i charge and another variable here. that variable is with the auction and the uncertainty operating from the windshield. we went from the top to the middle quickly. incredible statistic. >> what we are watching at the nasdaq is they haven't done that. they were there and haven't closed since late october, but take a ride with me on the earnings express. that is what is driving the train and the company that sends out prescription drugs to people beat and boosted the stock almost 2%. the company that makes generic

drugs, beat and boosted up 2.5%. expedia.com beat the street and that stock is at a new high. where people are booking travel to? las vegas, wynn with an unexpected profit. the stock is up 14%. where are people spending their winnings or crying in the beer for retail therapy. they are going shoe shopping. they have the ticker for steve madden. that is at a two-year high after that company are looking forward to after the bell to see if the sun will shine on first solar. they report after the bell and that stock is up 3%. >> thank you very much. bob and rick. and by the way, coming after the close and we had 50 companies today. as we said, the third we are seeing right now. better than expected earnings from the likes of visa and

mastercard. they have some saying those are indicators of strength. they are captured by this magazine cover. you may not see this on your local shelves, but i was president and with the balloon, the recession said they are over, exclamation point. the president did see that and here's what he said. >> i don't know if any of you noticed that he was selling news weeks by the check out stand, but the latest said "the recession is over." >> he did continue to say tough times are not over and the question is what does tough mean. is the recession talks premature. jim bianco is the president of bianco research and a new face of cnbc and covers visa and mastercard and got the stories today. he is with me at the empire and before we get started, i mepged

ken lewis is going to be speaking in chicago. they'll get deadly about the recession. banks are lending. coming out of the recession. clearly the market is priced in and when you compare this year to last year. it's definitional that you have. does that mean the recession is over?

the contrarian thought is it's not over. that's behind us. it's largely one of the reasons the market is near 1,000. that's when you have the easy comparison. that's the point where the time is easy and the stimulus is spent and then what? >> we will have to find out whether or not the recession is really over. one of the things about magazine covers is they never could quit. there have been plenty of covers that say recessions are over. they don't occur contemp rainuously which is what we are trying to predict. >> to the program, we cover visa and mastercard, i believe the visa studio who said i am cautiously optimistic and things

are getting in and the company that has better than expected numbers was lukewarm and is the consumer better or not? >> hey, erin and thank you for having me on the show. i said thinking about visa's results and mastercard's too and how that portrays the health of the consumer and volume trends are flat with what we have seen. there were a couple of encouraging signs with guidance for july. ultimately when you look at the payment and dollar volumes spent by consumers down in the low to mid-single digits, the amount of swiped transactions remains up about 5%. you break that down more specifically, you see that the volume is down 5% and credit card volume down about 10 to 15%. >> they are not twice anymore. >> what that told me about the consumer is they are being more fiscally responsible and

spending money they have. secondly as another indicator it told me that the consumer is still spending on the lower ticket items and the non-discretionary spending items and they are not spending on flat panel tvs. >> if you notice on the cover of news week, it was symbolic that they had a balloon. balloons are bubbles and bubbles burst. there was symbolism there. with the consumer, they don't need to spend on flat screens. they bought all the flat screens and they bought a little bit and they are not going to buy them yet. they are not confident enough to spend $2500 on the or whatever

they have and it seem to be working well. we have to get through with more of this and the confidence level is increasing as we go on. it has to be higher before they talk spending. >> they're picked up the balloon image for a second. is it possible or fair to say that we are in a situation where the bubble has a billion holes and they are trying to huff and puff and keep it inflated as long as they can. if that's true, it's a damming effect. >> it is and it's a ballad and concerning type of fear. it's built on cheap money from the government. they performed agencies to the point where they trade for the first time in a generation. because the government or the fed has been buying them and it's just forcing interest rates lower and that has been helping to move the economy. if we wanted to have the fed

withdraw, we could have severe disruption to suggest this is not a very good recovery. it's not guilt on something solid. it's guilt on government manipulation of interest rates down. >> say that's what it is. >> the rally is going to -- it's going to go for a while and we have 5% on the upside and i think it will stall. i'm bullish. i'm bullish up to a point. the reality is it's fake money. you need to get the economy and people need to spend money they are not getting from the government. money they earn. with 9.5% unemployment and people feeling uncomfortable about their station in life, they won't spend that extra money. because i am buying starbucks coffee doesn't mean everything is. >> you bought mcdonald's coffee for free. there is lines around the streets.

jim bianco, thank you very much. thanks for coming on and giving us the perspective and we look forward to having you back on. >> thank you. he doesn't take coffee for free. >> why not? >> we will take a brief break. >> the last time they closed above 1,000 they may do and may not. we wouldn't last night. that date may ring a bell. that may be barack obama and we have a couple of trades whether you believe in 1,000 or not. they are not afraid in secrets. nearly 1/3 of medicare spending is in the last year of life. can we control health care without looking at the american way? we will be back. eseseseseseseses

the dow, s&p and the nasdaq

was a little bit earlier. we are up 141. the rally in full swing. the s&p is near right now the levels that it was at on the day barack obama won the election for president of the united states. if you missed the rally that began in march, that's where it started. what is the trade now? paul is cofound er. from each of you, let's start with the glass half full. you are a believer that we can go over. >> yeah, we are positive on the market. the moving average is moving upwards. that's positive in the past for gains going forward. one way to play is open tables. the recent ipo that is largely forgotten. as the s&p hit the 1,000 that seemed like he would never see again and the economy would start improving.

and the confidence report, you will start seeing consumers feeling more confident and part with money and go out to dinner or something. they provide online reservations and software. the restaurants and they had practical monopoly on the field and not a huge industry. they are the only player in the field and they have a mote so to speak. >> the google online reservations. you are thinking over 1,000 for momentum and you go to open. i know you are concerned about the s&p and we are way too overbout? >> we are absolutely, undeniably with the index about 80. it's tough to say and that's a 52-week high. i like buying spider in the money and calls for stock replacement. i would buy the call and pay about $5 for that and instead of running out and putting money

into the stock market and all i risk is that $5 i spent. that is 5% of the market. i participate in the vast majority of the upside. i am bullish and i'm scared. if you are not scared, you are not paying too much attention. it does not come down to the low of 23. there is lots to be scared about. >> sorry there a way you can trade it if you are not nervous. do you think we will have a pull back? looks like he dropped out of the audio. we will give you the final word. if you were worried and you didn't think he would. >> you get the call here and we are overbought in the short-term. for the majority, you are taking a little bit longer in a few hours. the market here is so many indicators and returning to their prelehman levels.

the market is way below those levels. they may be overbought in the short-term and we are still about 20% lower. >> thanks for both. just ahead on our show. the trifecta and the s&p earlier with the 2009 high. what is cramer's take? and the elephant in the room, the money we spend in the final days of life. why aren't we talking about that? street signs will be right back. he ran off with his secretary! she's 23 years old!

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s&p 500 near the 1,000 level. the last time the market closed above that was november 4th, election day. see if we can get there and we jumped at the beginning of the session. bob said it's bullish that we held it and we haven't got 19 last final gain or been able to hold that. we will see in the trade. it's a healthy dose of reality for the president. washington doesn't move as fast as you want it to and the american people are very fickle. cnbc's john har wood is here with what all that was means for our new president's big health care reform.

>> it's a tough reform in the health care debate. an insurance company for their and tried to block the public auction. you can understand that when you look at the key dynamics in the "wall street journal" poll out last night. first of all, barack obama's approval rate suggest slipping. she at 53% down from 61% in april. it has an effect on his cloud with congress. look at this on the economy. the deficit concerns trump concerns about stimulus spending and boosting economy. this is relevant to the debate because the public associates the plan with additional government spending. finally president obama needs help on the message war. health care is on the edge. when you ask people straight up, is barack obama's health care plan a good idea, 36% say yes and 42% say no. when you fill in the details, you get a majority in favor of obama's plan.

that tells you he may be able to make the sales, but hasn't yet. >> thank you very much. a big shift there and rather suddenly. a lesson of fickleness. about a third of health care costs happen in the final year of life. it is a huge burden on the nation. how far should government go to cut costs? would a living will as a mandate be the solution? the president doesn't think so. >> nobody is going to be knocking on your door. nobody will be telling you that you have to fill one out and certainly nobody is going to be forcing to you make a set of decisions on end of life care based on some bureaucratic law in washington. >> is the president missing an opportunity to cut cost or not? joining us to talk about this issue is the aarp and executive director for the alliance for care at the end of life. good to have you with us.

this is a tough issue and we started to discuss from the cleveland clinic. is that something that should be required for all americans as the president of the mayor and cleveland clinics believe? >> absolutely not. any health care decisions, especially the important and difficult decisions should be made by an individual with help from the doctor and consultation with the people they love. there shouldn't be a requirement and there is nothing now contrary to reports that would force that upon people. there is a provision being discussed that some construe as a mandate and individuals and doctors have to have the conversations so people had to sign their names and pick the way they choose to die. that's just wrong. it's false. we think that living wills and advanced directives can be good for people.

we encourage members and families to do so as early as possible to make their own decisions and make sure they are active in the end. this is not a place where the government needs to step in and mandate that anybody does that. we will put our weight against anything that comes between. >> why would you do that. isn't it better to make people think about the most difficult conferrings about their own lives and death rather than put together off because it's a difficult subject? >> it's an important conversation and it's a great idea that will be voluntary. it's to make decisions and don't want to get to where people feel like they are pressured. none can be made because of a table. here's the thing. in terms of the cost component, we not sure it will matter anyway. the fact is that a lot of people are not having decisions and wishes followed for end of life care. probably because they can't communicate and don't have legal documents to take the place of

guesswork from the families or doctors. many people, you present two people with the same situation and you have a debilitating illness. here's the treatment options and the entity of the innovations and the quality of live and the length of live and what it may do to savings. some will say give me every possible treatment if i can get another week or day with my family. somebody else will say i can't do that and i don't want to do it to my family. i will manage my pain on the way out. right now what we are seeing is we err on the side of intervention and treatment. if you don't want to guess and certainly guess wrong. >> here's the question that i have and i know it's tough to ask. incredibly wealthy societies can spend money the way they want, but reliant on other countries to survive and fund itself, it doesn't necessarily have all the money in the world to spend on everything. maybe we should have this.

>> i have to agree with the first. the core issue here is that it is in the hospice philosophy. they have that in that vain. we see what they can be brought out of the system when that is put in place. and the comments before were right on point. the extensive innovation that run up health care costs. it's between the amount of money spent and the satisfaction with the service. you spend less and maybe in a hospice setting as opposed to acute care setting.

we are more pleased with the services and the end of life experience. >> how do we make choices or have conversations about people keep hearing about the drugs and hundreds of thousands a year. they might prolong life as little as a week or months. it's hard to say whether it's worth it. it's almost horrible to use the word to describe live n that sense. we are talking about massive money. how do we have the conversation to spend that amount of money for that short of a time. how do we address it? >> you are right to bring up the point. we incourage the members for a variety of things that have difficult conversations. we call them compassionate conversations with their doctors and families. for the younger members and we encourage them to talk with older parents and make sure everything is clear. >> how do you cut that 30% of cost? how do we cut that? how?

>> let me say something here. it's a three-step process. first and foremost, the conversations ought to be not in the waiting room of an emergency room. they ought to be around the kitchen table and among the family members so that everyone can have a clear understanding of what the candy's wishes might be. a legal document so that those wishes can be everyday in writing. they became incapacitated. it's in a position of trust. when they become incapacitated. >> thank you very much to both of you and i do want to continue this conversation because i think it's an interesting one and i know both of you have

thoughts on it. they have more living wills. they get ready to start trading. they come along to see which credit card he is using. thanks to kim jung il. we will take the stimulus and explain exactly how this world leader is helping to create jobs here in america. l

♪ hotwire.com welcome back to "street signs" at the new york america tile. we see them up more than 3.65. yet to settle and it looks like it will be something around that $67 mark. washing away all of yesterday's losses. balancing things out and on

paramount auctions, fundamentally the story hasn't changed. the flies are near multiyear highs and demand remains weak. the dollar was weak and stocks were strong. back over to you. >> thank you very much. time to pause trading for a moment. you wouldn't want to stop on a day like this. too much going on. >> exciting day. >> it is an exciting day. in terms of the 1,000 question, where do you stand? >> where? >> we go above or how much? >> you can just do a break down of the individual down stocks. we are in good shape. obviously there is a large number. so many people told me that the bulls are complacent. i say wait a second. stocks are down 50%, 60% of where they were. it's no problem to go further. july seems strong. we saw bad numbers out of virginia. overall a lot of companies i talked to, don't listen to that.

all business goes up month to month to month. >> so jim, we talked earlier at the top of the program about whether we were huffing and puffing. i wanted to get a balloon. >> they reenact a government stimulus. >> ber narvegy is printing too much money and the recession is over and 'they still supporting things? you know what, we are in a fragile situation with eight million or nine million car bills. that doesn't mean we are getting appreciation. it's a fragile situation and i don't know why everyone thinks you should be declaring an all clear. the guys who jumped in and get ahead of a turn are the guys who make money and it's late in that game. i are making money.

>> you can get anything in mobile internet and think apple is going to 200. you are back at the cash. let's talk about the credit card names and they made it that point. the number that they can see depending and he emphasizes that he is on the debit side. >> i know there is a short story going on there and the call is terrific. you have 7% growth and a little bit less than that for mastercard and know people are trying to weigh down the stocks. i owned visa and i would be careful shorting the stock. remines me of intuitive surgical. they never looked back. the short story on these i think is not as compelling as the short story with verizon at 30. it doesn't hold up. these companies have growth. >> which one?

mastercard or visa. >> i thought visa was better than mastercard, but people love mastercard. >> which one would you buy? >> visa. a little better growth. >> there is name, we have casinos go bankrupt. then wind comes out and it has 15% on earnings. >> we recommended wynn at 41 and again at 42. this is the best in show by far the best in breed and all new casinos and you are not even getting it. i have been using a $70 price target and it is the best run company and the destination. when they split that off will be worth 2/3 and it is crazy that this stock is not up even more. >> magnificent. >> yes. >> and of course personally charitable and a lot of people

work for him and he reaches out. he's an amazing guy. >> let's talk about the mortgage portfolios. this was the thing that was the big achilles heel for a while. >> they are so big. >> ken lewis said and i want to get the headlines, ken lewis is in chicago and he gave a speech and he said and used the word shoot. he used a word about getting dead serious about modifying the mortgages. who knows whether he will do it or not and shows he got the message. >> it doesn't matter. better to hold on to them. the other will turn into a positive and they will stabilize and go up. the bears are in trouble. >> deadly serious. >> real trouble. i have to tell you, i think that bank of america, if you go to goldman sacks, the single best report i have seen on banking, bank of america is going to come off as herressy, overreserved.

that will be good for them. no one feels that way, but ken lewis overreserved. they have a lot of good things going. goldman came up with it. morgan is not doing well. too much real estate. >> are they talking about their stock. they copied you. remember how they stole your name? morgan stanley with the call on the restaurants. >> was that the booya call? i have to say, let's understand this. i love mcdonald's, but it's not the right stock here the same way that colgate is not the right stock and morgan stanley made a real point. china is turning back to the positive and that throws the stock down to the 32-33 level. this is the thing people want.

>> a brazilian south african, belgian or jamaican beer. >> there real american beers. we found them. >> we have them in pennsylvania. and i like the beer. >> wow. isn't that an amazing coincidence. have a good one. >> 6:00 and 11:00 eastern and the head of the biggest brewer in the united states of america. will there be american booze left?

>> what a day for a beer. president obama getting ready for a drink. four hours until they are open. is he forgetting it is not american-owned beer. here to discuss, the investor who put the $2 billion into what he hopes will be the biggest beer company. the cofounder of kps partners. good to have you with us. i like your motto. million barrels, change is brewing, yes we can. >> absolutely. >> i like the fan words and it's amazing to me that north american breweries and a name that a lot of people know, but it's not like it's coors or bud light in terms of national knowledge. how come we don't have that many american brands anymore? >> i want to say that on behalf of all 400 unionized guys on the

floor of our brewery and behalf of the iconic brand and on behalf of the second largest american-owned beer company we get the president to serve today instead of one of the foreign beers. >> the largest is pabst blue ribbon. why is it? >> why is it? the north american beer business is consolidated behind the enterprises. they essentially have squeezed out just about everybody else and they have about a 75% north american market share and an opportunity for us. it created a void in the market place. we are not some little beer company. we are not a cracked beer company. we are creating national company that is going to be fully owned.

>> you like to become not a microbrew. >> we will continue to buy brand as this occurred. there an incredible amount. >> whether you are interested in them or not. >> the opportunities, i'm sorry. you are buyings. >> we will go to acquisition. he had a blowout month in june for the first time in 20 years. >> what is the price? because it's cheaper than competitors. >> jenny is a budget beer. in these economic times. >> union workers, you brought some back and they are disappointed.

there is no jenny being served at the white house. >> belgian. absolutely. >> thank you very much. we appreciate it and i'm sure that won't last long up here. up next, we just want to show you ken lewis from bank of america who is speaking live from the national urban league in chicago. you heard the main headlines from his prepared remarks. the two we headlined are a, he thinks we will have recovery in the second half of this year and b, contrary to what you are hearing, he said banks are not lending. banks need to get deadly serious about the loan modification. we will let you know that they get the headlines here first. a building boom in california of all places. more jobs than workers. you think we are making this up, but we are not. we have a special report. undefeated professional boxer floyd "money" mayweather

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at least the house at this point is going along with the program. you know while they are cutting, they are spending elsewhere. what recession? this is an area hard hit bite housing collapse and contractors have more work than they can handle. if they know how to work with the military. listen to this. the navy is spending nearly $3 billion on dozens of building projects here in san diego county including $125 million being spent on new barracks. with a base currently with a reported 10,000 construction workers. the biggest project is a new

report on the base being funded with the help and material stimulus. >> that's the 7-13 and will be about 1.5 billion. as far as general growth with the 4,000 new people coming for camp pendleton will be spending three billion for that. know every place we can plan a building, that's what we are doing. >> all that work being handed out by the navy lured in out of work engineers and architects and builders and locally based harper construction is busy being approached by global players by joint ventures. they know the ins and outs of working with the military. >> south carolina has interview and washington and oklahoma and maine and they are willing to be hired for anybody. these are presidents and executives of companies and they

run work themselves and owned companies for 15 to 20 years and they are saying they will do anything at any price i top the pay them. >> isn't that amazing? last year he did about 225 million in business and expected to do 300 million this year and next year the company is bidding on $1 billion worth of projects over the next 90 days here in san diego on the southwest or with the army core of engineers in the midwest. money comes from the military in building. >> they will take it where they can get it. thank you very much. defense spending is spurring technological innovations that goggles that can see through fog, smoke, and the deepest darkest night. it's thermal imaging and mark newman is the ceo and the leader in the $10 billion market. big for something people never thought of. >> that's very, very true and it's huge. >> what are exactly does it do? are you talking about goggles

that you may use when you necessary afghanistan or something? >> goggles, but it's more than goggles. secretary gates said one of the biggest priorities of the united states military is what they call isr. surveillance and reconnaissance. we need to see first and faster in any kind of condition. the systems that go on helicopters and on vehicles and systems that are on rifle sites. you name it. there is a type of ir imaging and ir is basically what you see in a digital camera, but instead of visible light coming through a chip and kong verted by electronics into a picture, we send energy. >> are these the things when you see in the movies for example on television shows that this is sort of black or red shapes moving around or is it more specific? >> that's a great question.

that's what people think of as night vision. that kind of night vision uses image enhancement and using ambient light. thermal imaging doesn't use light at all. it can be pitch black and smoke and you see a clear image and it's all black and white. >> like i would recognize as a person and not where color would change to recognize. >> no color and you are actually seeing real images. what you think is daylight that you are looking at is being shot in pitch black darkness. >> you have 10% of the market. >> we have about 10% of the market. >> how big can you get some. >> that's only one piece of the business. that's part of a much larger company. we see it growing over the years. >> interesting and i'm glad we had the images to show. stereo typically we think of the old way. thanks and nice to meet you and this is interesting. up next is the love for new cars

and bargains. the perfect recipe for cash for clunkers a hit. some of the numbers are coming in. so, katy kicked off the conference call... but we missed the first half trying to download the docs. which turned out to be the old-new docs... rather than the new-new docs. then bob dialed in from home and his... dog starts barking. so jen jumped in with her "two cents"... which katy missed because she was buying shoes online. and then i hit mute... to talk timelines with my team. getting lots of dirty looks through the phone in the process. - overall... - a great call. - great call. yeah. introducing a better way. learn more at cisco.com/newways [ dog barks ]