tried to break the markets back. they couldn't do it and they bought it back. >> you know, i run a hedge fund. we look at the benchmark. now the s&p is the one we really look at into double digit land. it's hard to ignore that and you've got to feel like i can't be too underinvested in this market. those valuation shorts you're talking about have been really painful. even though some things are far more attractively priced now i can't short more of them because i just -- there is no -- nothing is to say they can't go to -- it's more than ridiculous. >> there are a couple things people need to have tied up to get the market going higher. including possibly bank of america and their settlement with the sec. psychologically that's important. the treasury announced their refunding next quarter which is much less coming in at $415 billion versus over 500. so it looks like the government is getting the deficit at least back under control. you have stories, a dollar that continues to weaken but it's orderly. people don't like that but the bottom line is this will allow

commodities and a lot of the risk assets and that tells you the risk trade is on. these are all part of the bigger picture. that's what's happening. >> you have to look at the fundamentals coming in. coming in this morning you had the chinese pmi looking phenomenal. >> i was up. >> that lent support to the overall marketplace. then the ism number, erin, if there is any doubt that third quarter gdp will be positive, we will have growth, it's just a matter of how much we're going to have. it is fully represented in those ism numbers. we are working off inventories and clearly turning the corner from a recession into mild recovery. >> what gets the retail investor back into this marketplace? when they see on the news the stock market and s&p went to a thousand they call the broker the next day. what gets mutual funds back in, when the retail investor back in. everyone is getting squeezed to get back in the market. >> if pete najarian wasn't here and john najarian wasn't out all night gambling in vegas he'd tell you the vix was higher today, finished somewhat flat, but it was higher intraday because people are buying call side. they don't want to be left out

of it. a lot of people need that up side protection and are paying more for it. >> and everyone is asking, this is the top? is this where you get out of the market? is there more to go? yes, there is reason to believe that there is more to go as you move forward toward the end of the year. >> one thing i don't get by the way is the surprise over the growth. i mean, we knew we'd get growth in the third quarter and fourth quarter and it almost seems like the market is reacting a little bit late. most people said that would happen. yeah cash for clunkers is going to make it better than thought but we were expecting that. >> we were but i think the market has already priced that in. look how far we have come. >> i'm sorry to interrupt but we have a press conference now between senators collins and feinstein. let's listen. it's on cash for clunkers. >> then the bill was rewritten and changed, and both of us were very worried as to whether it would be able to carry out the mileage efficiency standards, the purpose of the bill was to try to encourage people to buy more fuel-efficient automobiles.

well, our staffs have just finished a briefing and in that briefing 120,000 sales so far were reviewed, and it was pointed out that the average was 25.4 miles per gallon. the cars average 28.3 miles per gallon so far. suv, 21.9 miles per gallon and trucks 16.3 miles per gallon. now, these numbers are actually very good numbers. in the sales, almost 60% of those turning in cars turned in cars -- excuse me -- bought cars. bought cars. this is 34.8% bought suvs and minivans. and only 5.5% bought big trucks. and, of course, it was the big

truck which for us was the problem in the legislation when we initiated it. in turning, 83% of the vehicles have been trucks and suvs. and the remainder, sedans. so, clearly, 60% of the cars being purchased are sedans and the big number in the turn-ins are trucks and suvs. the average rebate is $4,237, which means that it's moving toward the more fuel-efficient vehicles. we understand that another 100,000 to 130,000 cars can be processed to reach the $1 billion. so the good news is that apparently people are buying more cost-efficient vehicles and after hearing these figures so

far i believe and i believe senator collins will speak for herself and also agrees that the best solution is to continue and extend the program as it is. as you know, we had a commitment that when this program ended or money ran out that our bill would supersede the bill but it's also very clear that there have been computer glitches. we don't want to add to those glitches. the program appears to be running very well. >> senator feinstein, as you can see, expressing her support for cash for clunkers actually going through the miles per gallon so far. there were some hopes this press conference was a joint press conference with the republican collins, that there could be a breakthrough announced and a deal in the senate which would indicate they're going to get the extra money. does not appear that happened. let's bring in phil lebeau now who has been spending his day at a ford dealership.

we thought we'd get news of a deal. i guess it's hard to read anything into the fact that we haven't. how do you see it going from here? >> reporter: listen, everybody in washington says the same thing, which is ultimately they expect cash for clunkers to be extended by another $2 billion. the interesting thing is that transportation secretary lahood said earlier today according to wire reports it has to happen by tomorrow night or else this program runs out of money. now, it may be extended a little longer, a couple more days. one way or another something needs to be worked out in the next couple days in order for dealers to continue to write through on these contracts because if you have not signed a deal by the time the money runs out, they can't write the contracts. i was talking to a couple of dealers who said, hey, it's a $15,000 fine if we try to push one through after the funding is up so people are out there at the dealerships. in fact, we've seen people come to this dealership. they want to do this. the question is, how long will this funding be there? >> phil, what does it mean at the dealerships? are people chomping at the bit to buy these cars?

we saw what ford's numbers are. they're the guy that's benefiting here, we're all excited about this and there should be reasons people on both sides of the aisles and in congress pat themselves on the back. what are the dealers doing, and are they out of cars? >> they're not running out of cars. they are running low in their inventory. in fact, general motors is at historic low in terms of its inventory. look for gm to increase production. ford said earlier today on cnbc the head sales chief said, listen, we're looking at increasing production. we've got a 50-day supply. normal is a 64 or 70-day supply. they're at 50 days. back when things were terrible last fall, we were looking at 130 or 150-day supply. they are running low on inventories and need things to keep coming in. if i look around this lot here, i see about a third as many cars as were here on saturday. they don't have a lot of time to say, okay, we need more funding.

otherwise, at some point they will have people coming in looking to make a deal and they'll say we don't have what you're looking for. >> all right. phil, thank you very much. it's a quick reaction from all of you. i mean, it's a billion dollars so far. stimulus was $787 billion. we're still what, $10 trillion economy? i know there is a multiplier effect. but are we making a little bit too much out of cash for clunkers? >> i think so. one thing i don't get. we've seen what happens when we pull sales forward. we saw it with 0% financing. you had inflated sales for some period of time, longer than this plan will be. i don't really get what this does. it creates a one-time or a short-term gain, production numbers can get out of whack. you see us talking about the inventories. they'll increase production and we are going to be right back to the same place where they're producing too many cars for the structural demand. >> but that's the difference. they are not going to. they're leaner and meaner and are going to come out of this thing, their labor costs and essentially costs on the health plan and benefit side are under control. what's different is there's been a lag also and demand was held up for months. people were not buying cars. there was no credit. i think we have six months of

backlog to get through. i think you prime the pump and see this feed into the commodity trade. i think inventories are a lot tighter than a year ago when they weren't selling cars. >> the bottom line is the auto trade. we have all on this desk, timmy, guy, steve, karen, pete, talked about being long ford. i'll tell you what. if you're long ford and you have this news coming out and today you get july total vehicle sales up 2.3%, guess what ford did today? it went down. that tells you it's time to get off this ford trade and move to the sidelines. that's the important thing. >> there's only one train left by the way in the u.s. auto industry. >> i want to move on. >> there might be more similarities there than any of us would like to admit. bank of america. everyone is talking about the whatever skill with which this was orchestrated. >> good public relations. >> bad news. >> deftly handled. >> all right. so do we read something into that? that implies bank of america worked with the regulators. i mean, everybody seemed to want

to get this right. there wasn't an adversarial relationship. >> it seemed they wanted to do this right during "fast money" halftime which means they know the viewership that we have out there. right now at bank of america you have to look at it as they are improving their balance sheet. they are improving nonperforming asset growth is declining. it's somewhere around 14% to 15%. that's a heck of a lot better than what you're seeing at wells. there is every reason right now to be long. still, bank of america, no reason to get off that. >> i think sally is a great hire for them. that is a very big name to have on their wealth management platform. she left citibank. there was some question about her not getting along with pandit. i don't know. she's a great person to be running -- >> they've been using bank of america as a barometer for the market. it used to be general electric. now it's bank of america. they watch the way bank of america reacts and buy the market depending on how bank of america trades intraday. it's not a long-term thing, but it is short term.

>> thee people reshuffled the back, brian moynihan and the goldman sachs guy, sally krawcheck. three very balanced, strong folks that could be standing in the wings and a lot of people think that means ken lewis goes sooner than later. most importantly it included the fed, the government. this is something people want put to sleep. no one is going to be fully happy with the conclusion but they want to get on with it. that's what's happening. >> erin, down the road, ken lewis, whether he is there or not, the acquisition of merrill lynch two to three years from now will be looked at favorably as one of his greatest moves. >> what about the nasdaq? we talked about the s&p at 1,000. nasdaq doing twice as well by one measure, absolute value. we crossed 2,000, and everyone is focusing on who's going to win of the three. who was it that said we all know who's going to win? it was you. it was joe. >> apple, google, microsoft. you say it is so clear who wins. who? >> what are we talking about winning? >> what you're seeing, goldman sachs put a great note out today. >> they're three different

businesses as far as i'm concerned. they overlap but three different companies. >> but what they all have, timmy, is a very, very strong balance sheet. what they will do is spend. they will use that balance sheet to navigate their way forward. this bodes well for the entire tech space because you're talking about innovation and creativity. you're talking about apple ra ramping it up in the smart phone segment. goldman sachs put a great note out on how apple and r.i.m. are both maintaining market share in the smart phone, two motorola and palm were actually losing, then you look at google, google looking to move into microsoft's territory. microsoft looking to move into apple's territory. those three names all have cash and they're going to spend it. >> i think there's a risk for all these guys but you look at what microsoft has told you they actually spent on search relative to their revenue train. it's not that big a deal. i think the guys probably making the biggest impact are google on the operating system because their android is an open-ended system. that will invite guys like samsung and motorola to use this system. apparently the big release is before the end of the year.

i think they are the one if we are talking about who is winning, they are the guys who seem to be stealing the most relative market share. >> the next big fight is where does the market go? at some point a lot of that is going to hinge on what is really happening with the economy. we know we're getting gross at the end of the year but what about the new normal and what does that mean? are we going to have a "w?" that's what nouriel roubini is saying. let's bring in rick santelli. rick, i know they miss you. >> i missing there. >> the richter. >> what's the bet? you heard about the "w" call. >> when you were a kid you used to draw those seagulls, kind of sweeping vs. what i think is right now you have the left side of the sweeping v, the bottom, of course, in february, whether it was 676 in the s&ps or 6,500 in the dow. i think connecting these two vs, you know, is the "w" idea but i think there will be a lot of nice in the middle. the momentum in stocks, they continue to trade as though

they're on prozac, and that could happen for a couple more months. >> rick, what's taking your seagull, you know, into this elegant flight pattern suddenly? it doesn't seem to me, certainly why is roubini carrying it onboard? are you excited? what changed? >> mr. greenspan was the maestro at one point but looking in the rear view mirror not so much anymore. i think we're in a pure and simple inventory cycle, and different countries are going to have different parts of the cycle. we're building widgets, you know, i think the cash for clunkers is a clunker but there's pent-up demand. i think adjusted, annualized rates for these autos will be surprising not because of the couple hundred, 300,000 units for this program, but at the end when we get another year into this, if the job creation isn't there and i think it's still questionable, i think that's why you revisit the downside. so inventory without consumption. >> rick, do you get afraid when you hear ford come out and say

their chief sales officer that if we keep going at the rate of clunkers we're going to be going at 15 million to 16 million cars a year which, yes, is right about where we were at the peak? >> well, i'd be a lot more nervous if it came from government motors because i have great respect for lincoln, mercury, ford. they haven't bit on the hand that's feeding everybody else. but, yes. i don't know. i think 11.5 million or 12 million would be shockingly terrific any time in the next two years. >> but, karen, if they get to 15 million or 16 million that's your father, inflating the bubble. >> right. >> we don't need to go back to 16. they've all said it. this is one thing that's actually working. >> we don't need to but they said we are. you can't really imagine -- >> i think we get to 13 million by the fourth quarter and i think if we get to it tells you amazing things about gdp and the durable feed through the rest of the system that means for commodities. >> the other thing to remember we were at 15 million and 16 million. that was a mix that was very different. >> they were giving them away.

>> they were more expensive cars. as people trade down the total ticket price of the auto sales in the u.s. has to i think go down. >> great point. >> there are 40% less people on payroll and paying probably 50% in terms of benefit costs. >> while i still have you there, real quick on friday's unemployment report, do you think in the last couple days the market has now priced in an actual surprise of good report? >> i think that the market is looking for better numbers with a three handle, but i also think the market is going to pay a lot more attention to the unemployment rate and i think that the goodwill of a 330,000 job loss will be mitigated by an increase or even lateral move in the 9.5%. many of us believe 10 plus, maybe 11% is in the cards. >> thank you rick santelli. that was the word on the street. coming up next we have your earnings. mgm mirage direct from the ceo plus a full breakdown of all the casino stocks from our two intrepid, exhausted --

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welcome back everyone. you're watching "fast money" still live at the nasdaq market site in the center of manhattan. time for your earnings as mgm is closing the day higher by nearly 4%. the reason, better than expected profits. it is the world's second biggest casino company. it's more stabilized though still typical operating environment.

death can the -- bet with the house again. on the fast line now is the ceo of mgm. good to have you with us, sir. we appreciate it. thank you for coming back. >> thank you for having me. >> are people coming back and gambling? >> they are. occupancy rates have started to improve, and equally importantly they're spending more money when they get here which is a positive to our earnings. >> we talk about capacity with regard to ford and the auto trade. i wonder about that with regard to the casinos. between the city center in vegas and between the volume that's down we know how exciting the macaw trade is, but do you even -- are you guys overfilled in terms of capacity right now? that's what people worry about. >> they are worried about that. we run in the mid 90s in occupancy right now and our ford bookings show we'll likely be in the mid 90s next year even with city center coming online at the end of this year. i understand the concern, but that wouldn't bear out in our results because we're seeing higher okay pan -- higher

occupancies. >> are more people then especially companies planning ahead? are you back to normal so-called commitments? as part of that, are you getting company business again? >> i wouldn't say we're normal yet but a heck of lot closer than we were. the businesses, themselves, feel better and are booking conventions in 2010 and 2011, and we're seeing that in our numbers as well. so we're getting close to normal but not quite there yet. >> jim, this is steve grasso. you didn't receive the best press from this administration early on with the anti let's call it vegas rhetoric. what have you seen and how has it keyed up now with the latest incident with the department of justice? this morning i saw that e-mail saying they want to have vacations and conventions to boring places, not vegas. what do you feel on that? >> we have gotten beaten up and that's unfair, and we've taken our case to our federal delegation and to the administration. we have to win people over one by one. luckily, the people you're

talking about, the t.a.r.p.-related companies, that's a people amount of our business. it's only a couple percentage of our total convention business. nonetheless, it was wrong headed and needs to be corrected. >> thank you very much. from all of us we appreciate you taking the time. what about the people going back to vegas, among them two people we know. >> i wonder if jim is the damage tab from their, the rain man suite that the guys are staying in. >> probably haven't had a chance to investigate what happened in there. they are here. our "fast money" traders wanted to do something -- is this written like this on purpose? >> look at the high rollers. >> on research? there they are. >> geez, what's going on there, guys? >> can you see our room and the view behind us? >> that is very sweet. >> you weren't kidding us. who are you kidding with those suits? come on. >> let's put it this way. if i stand up you'll see whether i'm fully dressed if you know

what i'm saying. >> what happens in vegas? please. >> whatever. >> here is one thing that won't stay in vegas. he was so hot at the tables last night that guy actually won the welcome to las vegas sign. >> we clipped the sign, burnett. >> wow. >> fantastic. >> nice job. >> did you buy it in the book store? come on. i'm not buying that. >> you just heard the guy from mgm talking about the rooms are filling up, and he's right, but the reason you bet on the place is right now they are filling up the rooms, but they are -- the people are coming out and they are shopping because the deals that are available, they are shopping. they're not gambling in the casinos so if you don't think the casinos have upside, i think they got lots of upside. >> the people are definitely not gambling. the tables are pretty empty at least where we were. if you want to trade, look at the las vegas sands. look what's going on with those guys. they might spin off their macaw operations. adeleson, this stock's had

trouble at 11 bucks a couple times and failed there again so you wonder if you pour in here. that has a tremendous short interest. if you believe the tape is going to continue higher which i'm sort of ambivalent about at this point then they're in a short covering play. frankly i'd rather own it at above 11.5 to play the breakout. by if you're looking for a play in the casinos, lbs might make sense. >> what are you doing for the rest of your time there? >> most importantly. >> do you know what he did for breakfast? take a look at this picture. as you can see, bottle of dom perignon and filet mingon. for $49.95. what do you think big bucks had for breakfast, a bottle of dom and a steak. >> we've been speaking all day and john is speaking for four hours tomorrow. we'll probably grab dinner tonight at the palm and then see what happens from there. >> okay. >> we'll see what's going on. >> thanks, guys. >> the casino trade, they're right. >> too many viewers probably know --

>> the question becomes, if there has been any shift fundamentally that would suggest to you that if the market continues to move higher that you don't use the casinos as an actual short entry against the market itself, i don't know necessarily that there's been any fundamental change. >> all right. from whatever institution you were referring to, there's something much more -- >> i wasn't referring to an institution. i was talking about an animal. >> move to the whole foods trade. yes. >> i am actually short whole foods. they're reporting tomorrow. the reason i'm short is twofold. the valuation at 32 times i think is very, very stretched. if you look at what some of the other guys in the space, the safeway, the super value, what they're saying is they're seeing people trading down. safeway had done a very big push into higher margin, prepared foods, sushi bars and they're seeing customer trading down. in addition, you have organic/generics and that's also going to present pressure. i don't see how whole foods can come in and beat earnings and

have a significant run on the stock. if you look at where it is now at 32 times versus the other guys at ten times or nine times, that just seems to be a divergence that's too big. however, i know exactly what i can lose if i'm wrong. >> i'm going to be shopping there later though. >> all right. >> don't buy a lot. >> don't move it by a penny a share. all right. thanks. up next, what do coors light, blue moon have in common? they're all malt beers. we'll have the ceo with us. and why the company is on the bottom of our screen at our list of pops and drops today. founded as a small coffee shop in vermont in 1981 this coffee maker is best known for its k cup. single cup brewing machines for home and office. the stock has more than doubled this year. >> the coffee market is percolating. >> but today investors poured out shares of this java maker as the stock fell on news of an equity sale.

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on the trader radar mountain coffee roaster among the most active names on the nasdaq today. welcome back to the show. here is what we have coming up in the second half today. apple versus google. we've touched on it but how that silicon valley fight might be good for your tech trade. also the only trading show that gives you an adrenalin rush is going to find slow money trades for the next five years. at your request. and who made $27 million off of casino stocks just today? no, it was not either person who would have claimed such a victory, john or guy, but we'll tell you who actually really cleaned up today coming up in a couple moments. first we want to continue with our earnings as molson coors came out with profits today, a 5% pop in the stock. second quarter bottom line more than doubled and better than expected. the company has continued to benefit from its partnership with sab miller. we joked about it not being american. what else is brewing at the beer maker?

joining us is molson coors -- we don't have him but when we do get the ceo we'll join him in a couple of moments. i want to move on. all right. quick trade and pops and drops. i have to use every second i got. >> the real issue in the beer sector is consolidation. the biggest and the badest, it is working.. consolidation of costs, these e guys are taking a lot of inefficiency out of the business and it's one reason they made money. watch am bev, the latin cash cow, essentially the most valuable piece of an empire but that sector is very interesting. >> i think we have him now. peter, are you there, sir? >> yes, i am. good afternoon. >> good afternoon to you as well. better than expected, looks like your earnings were better than expected. you had an increase in volume for coors light. could you just break it down? was there a change at all in consumer buying habits that we can read anything into for the economy?

>> it's a continuation really of what we saw in the first quarter. markets are relatively subdued. consumers are being cautious. they're looking for propositions but we've managed to win the business in exactly the same way as in the first quarter. to deliver the results. we're lucky because we've got a very broad portfolio that allows us to play every category. we just look at them and match up as best as we can. >> peter, over the last 30 months you've saved $229 million. i want to get into your stock but what i got to know from you is where are those cost cuts coming from? can i expect them to remain in place? >> well, the cost-cutting is coming across the piece specifically in the u.s. we benefited from the network optimization.. in simple english it means we can brew all of our different beers in all our different breweries in the u.s. which means all the distribution costs come down significantly.y. those costs are very much institutionalized so, yes, they very much stay in place.

>> how about the rising commodity prices which we know is around the corner? that was a big part of your cost savings. we've had a very lean environment for costs on that side. what do you expect there and how sensitive or elastic is the consumer on their purchasing of beer when costs are rising? >> well, consumers are looking for value right across the piece. we've got a broad grand portfolio. we've benefited, if consumers move from import brands into premium light we benefit. if they move down to below premium we have keystone light, the fastest growing brand in that category in the united states so we benefit there. it's not just a question of price. i mean, consumers are sticking with their brands but looking for better value within that so they're purchasing big boxes rather than smaller units. so it's really -- you've got to be able to match the consumer right across the piece and give a value proposition at the right place and time. >> thanks very much, peter. you gave your trade, sam. one thing i thought was curious

is that everyone gets so excited about coming out of this slowdown. things are going to turn. he said look. it's a continuation of the first quarter. it's not like you're suddenly seeing consumers behave e differently or go back to the higher end. it's going to be slower maybe than people think. >> the new normal. >> i'm wondering if there is a counter cyclical. you're out of work. you're drinking beer. i don't know. >> you're in work, you're drinking beer. >> probably keystone, too. >> i love these cash flow businesses where they are not going to be -- you're not going to not buy any beer. i think. you might trade down. >> let's get the pops and drops. here on on sulting, karen, is also you. a 59% drop. >> it's absurd. these guys are in the consulting business for financials. they had to restate their earnings for years. that's ridiculous. down 67%. embarrassing. >> embarrassment for them and you would not go against that obviously.

all right. barclay's, tim? >> nothing embarrassing about what they did. in fact, they got lehman brothers as cheap as they did. they're starting to reflect that acquisition is a very good deal. >> aren't they hemorrhaging lehman employees? and did you see -- >> they're getting leaner. in fact, these guys are -- they have the business models of lehman. they don't need all those people. >> all right. tyson foods down 3% even though people really turned chicken in the economy. >> well, actually the beef business looks great. the pork business looks good as well. they reduced their debt by $152 million but the chicken business, not so good. want to avoid this. >> chicken awareness day. maybe more people are taking note. 3m up 2%, steve. >> it's an economy play. how many products does 3m have? >> three? i don't know. >> so funny. >> 55,000. they have a semiconductor polishing plant factory. it's a polishing plant.

look at the headline. >> what do they polish? >> i think semiconductors. i'm not sure. >> wow. >> i'm a buyer of the stock. they make 55,000 products. i'd be a buyer of the stock. >> this one is interesting.. a drop at monroe college, a business oriented new york school getting sued late today by one of its graduates for $70,000 in tuition. she is a 27-year-old i.t. student and says the school didn't do enough to help her land a job after her april graduation. >> that's such garbage. come on. how about accountability? i mean, you know. it's not about the school you went to. >> a nice earnings quarter, remember these guys also have exposure to offshore drilling which is working nicely these days. >> tim, you worried about commodity prices? biggest aluminum maker in the u.s. up. alcoa up.. >> i'm worried about commodity prices going up and aluminum and this is a great looking chart. i'd own alcoa here and i do. >> goldman sachs is a drop.

this is pretty amazing in terms of the story. we all heard about the firm's record trading profits, $11 billion compensation fund or what might be, they don't know until the end of the year. in the wake of the government bailout that reignited a wave of populist anger and caused damage to goldman sachs' reputation. according to a brand survey by "the financial times" as goldman struggles to defend its image, well, you guys have an idea. they should turn lemons into lemonade by having a new mascot? >> that's not a mascot i would go with. >> vampire squid who sucks from the face of humanity? >> i'm confused.=lvn >> we keep beating up goldman sachs. we need goldman sachs to do well. leave them alone. stop beating them up. they're good for the market and the economy. enough. >> i think they're playing off the "rolling stone" thing. >> thank you. up next, microsoft versus

yahoo and a new rivalry is tearing apart a silicon valley alliance between apple and google. we'll tell you who's down for the count and who's up. we'll be back. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you going to buy online? yes! discount! isn't getting discounts great? yes! there's no discount for agreeing with me.

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let's get these breaking headlines to you.

according to "the wall street journal," ebay's pay pal service worldwide was out. all customers weren't able to use pay pal for about an hour and some are still off line. now, joining us on the phone to talk about that and of course the big battle brewing in tech land, piper jeffries' analyst. good to have you with us. >> good afternoon. >> what's the potential of this or is there any impact potentially for ebay losing pay pal for an hour? >> probably no impact. the bottom line is it's probably more of a technology out and there is nothing to be worried about. that business has been growing very well up 20% over last quarter so i think this is a blip on the screen. >> are you still a buyer of ebay? >> yes. ultimately the comps get more easier for them so expect the street to turn more positive on ebay in the back half of the year. >> what's your take on this war that we've been playing it as a war, a bit tongue in cheek but obviously everyone is focusing on eric schmidt getting off the apple board. who do you see in terms of the tech titan?

>> ultimately each of them are controlling different pieces of it, but this is a battle and a war as you explained it. the iphone against the android and the operating side the mac versus the chrome operating system so in a sense it's about the eric schmidt steps aside and allows the two companies to compete more aggressively. apple is a more hardware play, google is a search. i don't think you'll see either compete on those grounds. >> where do you factor in microsoft? isn't this about a balance sheet war, everyone just spending their cash right now? i think it's good for innovation and creativity and the entire tech sector. >> clearly it's a balance sheet war between microsoft and google. apple is off doing another thing. they have 20 plus billion dollars in cash and could care less. the reality is google's biggest fear is microsoft became more legitimate last week with yahoo and i think you'll see eric schmidt focus more on microsoft versus apple down the road. >> whose legacy business then is most at risk from competition? if you look at what each guy

brought to the table as their core business? >> well, the reality is this. apple is integrating more of google-like applications and pulled two google apps off last week possibly to protect some of at&t's ground. at the end of the day, again, apple will never get into search but i think apple has probably a better chance of minimizing some of google's apps on apple's products. >> gene, it's karen. as google then is sort of facing a multifront war, i know you like the name. where do you stand on it now? >> well, i think it also had a big run here, the reality is this is the other products besides google are slow to take off. this is a great story to own over the long haul. the key question is which one has the most near term potential? last week i was in hong kong and met with the component supplier. they told us that the tablet is going to be coming out late this year, beginning of next year. if you want a stock with more upside in the next six months it's going to be apple over google. >> thanks very much, gene. we appreciate it.

you all heard gene say it would be apple over google if he had to make a bet. what's your best tech bet? >> i got to say i'm a reluctant -- to give over my nokia, love, i've been talking a lot about this one. i do think apple, gene talked about going on in the wrong direction. apple is taking big, smart phone space market share and i think it's at the expense of nokia. i don't think it is a battle with the other guys. >> you also heard gene talk about microsoft. let's not forget microsoft. no one expects microsoft to achieve and do anything. one looks at microsoft, say they've just been in a complete malaise over the last couple years. they're going out spending money and going after google, and i think microsoft will surprise people. >> you think microsoft is the winner of the three? you've been dangling it out everyone knows who is going to win of the three. >> she doesn't sound convinced. >> all right. up next we violate the laws of physics turning "fast money" into slow many.

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welcome back. this show is called "fast money" but with the frenetic pace of earnings system almost being at an end and the dog days of summer we got an e-mail from a viewer suggesting a different pace. from panama city, florida, he writers to to go slow. ask each to give the one stock they would buy and hold for ten years if they could only have one. they're muttering under their breath here. ted, your wish has been granted. take a look. stocks have moved up faster in the last five months than they have in 70 years. with the s&p 500 rocketing higher by 34%. but the amazingly awesome earnings season is winding down and the big money is likely headed to the hamptons in august causing this rally to lose some of its rocket fuel. so during this slow summer burn let's put away the high octane

trading strategy and slow it down a bit. ♪ slow ride take it easy ♪ all this week, "fast money" giving you longs for the really long haul. america enters a new, unknown era and these are companies with the financial and innovative know how to survive whatever awaits us the next five years. forget the fast money for a moment. here are the stocks that are steady, slow. >> where else do you get a chance to play foghat "slow ride"? that's the beauty of that one. it hasn't been a slow trade. it's been a very fast ride for ford motor company but we talked about part of the question was which one? well, one is the story with ford. it's the last one, the only car maker in america and you can bet that the government is behind

these guys implicitly even if they haven't said it for the last six months. bottom line for these guys they are a leaner and meaner company. we saw it in their july sales today. they're selling more fuel efficient cars, they're better positioned to do that and of course the ambassador has to talk about their international exposure. they're up from 5% to 10% in latin america over the last four years, 10% of their sales coming from asia pacific over the last five years from about 6% so these guys are positioned in the markets around the world that are growing. auto sales around the world, the global auto trade is exciting everywhere but the g-3. ford is in these places and is coming out a leaner, meaner company and number one car market in the united states. >> i think the slow money trade is a great idea but you know how much money you could make watching us "fast money"? you'll get hundreds of trades that will make you money and tell you when to get out. >> right on. >> we'll get joe's slow money trade tomorrow. he'll be ready. final trade today after this.

time for the final trade. let's go around the horn. joe? >> turn-around tuesday. be cautious of that. walmart, mcdonald's, those are your plays. >> whole foods. >> occidental. you believe oil is going higher so is this one. oxy. >> potash has lagged today. get in there. >> all right. tomorrow morning starting at 6:00 a.m. "squawk in session" live from capitol hill. six u.s. senators tackling the big headline issues of the day way beyond cash for clunkers. thanks for watching. melissa lee will be back tomorrow. have a good night.

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i have never seen the consumers more fearful than this. >> it started on squawk box. >> the fact that business is going to get worse does not mean it is going to get worse. >> good evening from omaha, nebraska. i'm becky quick. thousands upon thousands of e-mails have flooded in for questions for warren buffett. we connected many of you with the world's most famous investor. tonight you will hear mr. buffett's take on the economy, stocks and how washington is dealing with it all. he's be sharing his solutions.

here is warren buffett, the billionaire next door, restoring trust. >> you spooked a lot of opeople when you talked about how the economy was in tatters and would be there for quite some time. what has happened is it has fallen off a cliff. not only has the economy slowed down a lot, people have changed their behavior like nothing i have ever seen. luxury goods have sort of stopped. that is why walmart is doing well. there has been a resnet people's minds. we see that in geico where