downward trend if media. >> wae want to update you on breaking news that happened just before the show started. chuck schumer saying that the sec plans to band flash trading. >> he was told the ban could be imminent that they may broke broo sfwro dues this anytime. >> extremely controversial. some have argued it the equivalent of frontrunning. have we got him on the phone? let's go to joe who started all of this. you were against flash trading. do you feel victorious here? >> i don't feel -- we feel that the public's concerns have been addressed. this is something in a we knew was wrong. it took a few people to bring out the issue. we're happy to have been a part of it, our firm is not the central point here, but we're good to see that the s event c is addressing it. but there are other issues also. >> what's wrong with flash trade something. >> it allows one participant to see an order flow before another

participant. this eat basics of it. so they can go ahead of your order, they can cancel orders. and it goes on all day long. and if there's anybody out there trading stocks knows exactly what i'm talking about, you couldn't quantify it, you couldn't feel it, but now we know. >> what about those who argue that it provides liquidity, that it's not frontrunning? >> liquidity -- flash orders are showing people an order before -- giving you an option of whether or thought you want to traz against it. so it's giving somebody a look. like a dealer seeing cars before you hand it out there. so that's not a liquidity issue. if they were participating in an order that wasn't legitimate, they shouldn't have that order flow in the first place, but this is not the only issue. you still need to look at location of servers, liquidity of rebates, why do they exist and do we still need them. >> all different aspects of high

frequency trading. >> that is correct. so we've scratched the surface. we're happy to see it. we 57 plaud the sec, but we think more issues need to be looked at. >> we should talk to center assu senator schumer about this, but they're only highlighting flash trading. >> and they're the looking at dark pools, which is another issue. so the story is not ending today. i think you'll hear a lot more about it in the future. >> we'll get some clarification on that. thanks. let's get to the market action. gambling stocks and airlines of all things in the black today. bob, any of the trading firms getting hit here if they can't do flash trading? >> i'm not sure it's a huge part

of the revenue stream for most of these big firms. a lot of the high frequencies trading was done by a lot smaller firms that really specialize this getting in very, very early into the markets here. '99, 2000, 2001, that was really a hot popular item. i agree with the whole idea that flash trading is definitely an infuse sif aspect of high frequency trading. let's talk about the markets here because it's a very interesting day. overbought condition, very choppy news flow. let's take a look at some of big names out there. caterpillar came out and reaffirmed their guidance. normally that would be a good thing, but you could drive a fork left through the guidance. but it helped the stock. up 5%. some of the other industrials are up smaller numbers, but they've had a great run. i was surprised that the comments from you united as well as from continental.

their load factors were very good last month. they're cutting capacity, lowering prices, getting more people in the seats. finally, very chon ppy earnings comment area. archer daniels saw very low over all because they were issued with commodity prices. let's go over to the nasdaq. >> of course we're lagging behind the s&p 500 and the dow at the moment. we're right around the flat line, down it 2 00%. yesterday was the first close above it since october. what's working, what's not. oracle down, palm 2.7%. they're still trying to figure out how they can sync up with itunes. we'll see how that plays out.

what's working? a lot that's gathering strength. dell is 1.2%, yahoo! 1.8, and look at research in motion. heading back toward 80, up 3.8%. marvel up 3.3%. human gino just a fascinating story. basically price the at $14 a share, raised $350 million. already up 1529, up 7%. that this is a stock that was basically a penny stock. just amazing. so with that, let's head down to the nymex. >> reporter: bob was talking about the choppy news flow. there's nothing too choppy here in the oil markets. we're holding pretty steady, right around $71.50 and we've been above $71 a barrel for a little while here. keep in mind, though, we are looking at prices that are recyclable. what's happening with equities and the dollar that's what traders are focused on ahead of

the inventory report we'll get from the industry trades coming out later on today. we're expecting to see an increase in crude supplies nap's what analysts are looking for overall. and we're also hearing today about the hurricane forecasting. they've lowered their forecast once again expecting fewer hurricanes this season. let's go to rich in chicago. >> we're bup a half basis point in yield. a lot of that was attributed to the data which helped equities move from negative territory to slightly positive. was it an equitable distribution? you can see we're hovering at the high end of a five week range at 370, but look what's going in europe. this is a ten year bund rate. they're not aggressively moving higher. why? the reserve currency, the major haven for flight to safety is different for us. and you can really see how much different it is for the reserve currency. look at the year old currency. about the same.

it's good news maybe that the dollar is going down or that rates are going up, but we still have to deal with those unintended moves. back to you. >> and we have more earnings coming in today. financials, the drug, the builders. all front and center. we have matt nesto on earnings central with some of the highlights. >> let's start off with ubs. it is weaker. it has been down as much as 9%. the company posting a wider than expected loss. i won't get into the swiss franc currency conversions here today, but they did have some restructuring and good will charges. you can see you're down only 5%. it is getting a nibble back. they're reorganize their swiss bank and international wealth management business there is to separate entities. cvs, about 2% higher here today. the company's had a heck of a year. it is 20% higher on a year to date basis. their second quarter was up 15%.

their full year, they tightened higher on the range. their third quarter same store sales could be up 6% to 8%. so cvs getting it down on the care mark side as well as on the drug store side. emerson electric, the company that i did verse filed industrial, known for its good management, down about 1% here today. they are working to lower their revenues and streamline, but you can see it, too, is coming back from lows earlier in the day. their full year, they lowered a share which is less than or equal to the current consensus estimate. and lastly i draw to your attention a bride and a groom both bringing baggage to the altar. they're expected to slow their deal. shareholders will vote on the 18th of august. both trading lower. but both benefitting from that housing data. i will say i look at things like the order flow and the selling prices. the average sell price down 9%.

orders down 32 and 34 respectively. >> hopefully they have a good pre-nup. thanks. from earnings, personal income and spending, housing and a lot more. steve liesman is here to take us inside the numbers. >> positive data on home sale, but bad news on income. paint a picture of an economy that is improving but still big challenges ahead. i can't think of a single other piece of day that that has year on year increase when it comes to homes. it is the fifth straight monthly rise in the index. penning sales lead resales by month or two. we could have a pickup in the more closely watched housing gamgs in the gauges in the

coming months. this is a little chart that we calculated here. spending as a percentage of income, and what you see here is we are back down to call it 97 levels. add to that number the 95, the 4.5%, that's the savings rate which has been on the increase. so you can see americans getting their spending understand control as a percentage of their total income. the key to rebounding income, jobs. and can with the key jobs report, here's what economists will be looking for as early signs of a turn around in the jobs market. claims everybody knows, firing falls before hiring rises. gdp, you must have top line growth before you'll ever get a rebound in jobs. by the way, watch for the cost of jobs. eci is something to watch relative to gdp. you have to put the part-timers back to work before new jobs are created. and then hours worked is a key

thing. employers stretch out existing employees before they hire new ones. claims are trending down. gdp stocks going up, but the part-timers, an enormous number working part-time for economic reasons. a lot of work to do there as well as in the hours worked which has been heading down anyway but we have a listening way to go to get back. months in the future, if not maybe a year. but on the optimistic side. >> thank you. >> we'll take a break, come back. the dow, the s&p closing yesterday at their rest levels since last november. up more than 40% since the march 9th lows. the nasdaq by itself at its highest since october. what's out there to keep fueling this summer rally? stick around. also ahead this hour, with oil above 70 bucks, we asked the question is 100 buck as barrel back on the table? then the cash for clunkers program, is it a winner or a waste?

we'll fire up the power grid. >> and then get ready for the fast money halftime report. industrials front and center on the traders radar. and "power lunch" will be back in two minutes. 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". shopping online can help save. doing it with bank of america can help save a lot more. up to 20% cash back from over 300 online retailers with our add it up program.

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dow jones in positives territory. biggest mover, caterpillar. they talk about future

profitability if indeed we get a recovery in the economy. >> so far we've had 48 stocks on the big board hitting new highs for the year. new 52 week highs. yesterday that number was at 73. 73 stocks, the highest level since last year. and that's the most we've seen since last september. so what does that say about the health of the summer rally so far? our task force today includes ernie and jack. ernie, what does this bull market have legs or this market? i don't want to claire sudden tli there's a bull market, what you do you think? do we go much higher from here? >> we could. here's the way this looks. we had 2008 was terrible and january/february, the worst two months of any market in the history that we followed. so then we have march to may and we go, okay, the world's not going to end. then of course we get to the

halfway point in the story and we get to july and start saying if i call this -- earnings are going up, pending home sales are up, but it's up -- >> and that gets you to where? >> i think i had for the end of the year a 1050 on the s&p and i think we could get there a lot quicker than i expected. but the next level, we could actually see good numbers. improving numbers. not numbers that are better than the worst things we've seen being but actually longer term. >> jack, weigh in on the schumer comments saying that coming very, very soon perhaps a ban on the flash trading technique. and the senator also says that shapiro told him that would occur as a part of longer look at high frequency trading. >> i think it's necessary especially when we're dealing with technology. one thing to keep in mind, when

we're dealing with regulators like the s.e.c., and i've said it before, the s.e.c. is the last of roosevelt's new deal agencies. >> but what about this particular move? >> it's needed because there is a misunderstanding of what flash trading really is. and the bottom line is, they don't add any liquidity. it's not like it's index arbitrage or something that really adds liquidity. >> so you think it should be banned? >> i think it should be banned. i think -- >> how is it any different than dark pools? isn't that where more than half of all trading gets to be done now? >> and you need a study, you need people who understand this issue. you can't just put a blanket approach like saying all hedge funds are bad. some are bad, some are good. you can't group nefrg to one lump category. that's why you need experts that understand. >>erfully, where do you stand on

this issue of not just the flash trade, but the high frequency trading which apparently they're looking at all of this. >> but in theory, you're one of the victims. that's what the critics claim, that guys like you when you're trying to do trades, other people are getting advanced look at your flow. >> ultimately i want markets to handle most of this. clearly we've got a credibility problem coming out of the experience and trust is the first thing that we have to re-establish. but ultimately when government tries to go too far, we end up limiting the flexibility and the wonderful innovation that this market has created. >> if thoerp ban flash traey we trading, is that going too far? >> when they start banning things, i get a little worried, but i'm not sure this is a big one that we lose a lot on. >> thank, guys. coming up next, crude blasting lieu through the $70

mark. are we headed back to $100 a park or a pull back towards $50? a bull and a bear coming up. and as we go to the break, here's a look at how crude is doing right now. $71.63. up another five cents on the september contract. we're back in a second. medicare.

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under armres arrest under a united airlines is up 19%. >> there we go. >> there we go. now trades at almost $5 a share. things are perking up today. >> so the question we're posing is where is the next stop for crude? is it $100 bucks a barrel or is it lower than that. we'll have the debate now. john, you basically think we're headed towards 100 bucks.

make your case. >> i do. and i've outlined my arguments at cnbc.com in a blog today for everyone to read. basically it's this. we are seeing global economic rebound take hold. we've seen deleveraging massively cut in half, saudi arabia cutting way back. and china has really rebounded. i think their impact on the energy market supply is badly underestimated in the marketplace despite all the press they get. >> you say $55. why? >> u.s. gasoline demand is more oil consumed in all of china put together. about 9 million a barrels a day. and we're send driving season here with gasoline prices 40 cents a gas. i think what you'll see is a move toward diesel which is way, way over supply. and as we go in to winter, what we expect to see is oil come under significant pressure. we're expecting $55 oil next year. >> john says opec is cheating.

so -- that opec isn't cheating. what do you think? >> opec we think is overproducing by over a million barrels a day. >> the difference between you two as i hear you speaking here is, john, you say it's all about demand and paul, you say it's all about supply. >> well, i guess to a degree, but i also on my side of the ledger have working for me is the continuation of the dollar and geopolitical issues. the nigeria situation is turning much worse for us. from a localized piece of the rock type of fight into a potential christian/muslim conflict countrywide. also you'll see the heat being turned up by israel on the iranian situation dramatically. that will reinflate the -- >> do you know what i didn't hear from either one of you? what about the dollar?

>> we're bullish on the dollar. the one thing i'll concede is that if we're wrong, the dollar gets weaker, you can't really argue against oil. i think a lot of people are putting money into oil simply in order to own it as their hedge against weak currency globally. and that's really hard to argue for a bear. but my key point was demand. independent gasoline demand is ending. the price is rising. and what we'll see is the tension now into winter and that slows the supply. >> thank you very much. appreciate it. >> i hope one of you is right. and i'll leave it there. straight ahead, carmakers, car dealers loving the clunkers program, but the senate needs to approval another $2 billion. is it worth it? sparks will fly in our power grid. >> speaking of revved up, the fast money action. >> reporter: just minutes away at 12:45 eastern. >> we'll break down the markets and talk about that ban on flash

trading. but we'll take our position after the bell today and what are lumber futures telling us about the direction of the u.s. economy? all that and more on the fastest 15 minutes known in tv. but first more "power lunch." chloe is 9 months old. she is the greatest thing ever. woman: one little smile, one little laugh. - honey bunny. - ( coos ) we would do anything for her. my name is kim bryant and my husband and i made a will on legalzoom.

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earlier he we mentioned chuck schumer had mentioned the head of the s.e.c. had said that the s.e.c. was going to ban flash trading. what we're getting now from mary shapiro shers is she shez i'm concerned about the issues presented by dark pools as well as flash orders, what they're looking to do is look for ways to eliminate the inequities cause by flash trading. she's not saying they're looking to eliminate it outright. >> which is which senator chuck schumer appeared to say. about he said a ban was imminent. >> what his statement was, earlier he had said s.e.c. doesn't come down hard on flash

trading, he would introduce legislation to do so because he would like to see it go away. but what mary seems to be saying is simply we're looking at the inequities caused by flash trading and ways to eliminate that 37. >> and she also points out you still have to bring it before the commission, open to public comments. so it can't happen -- >> not quite as imminent as he seemed to suggest. >> the obama administration is having the success of the cash for clunkerses program, but is it a winner or a big waste? time to fire up the power grid. you each get 20 seconds. i assume you think this this is a winner. >> it's probe the best billion dollars we've spent in a long time. it has fueled an explosion in terms of buying automobiles. the best month for auto sales was in july this year. that is significant. you're seeing people go in trading cars for more fuel efficient cars.

and logically it is just a fantastic thing. it shows our economy is turning around. and fuels more growths more spending. >> since i joined you from the arizona desert, i can tell you this is an economic mirage. let's understand this. it's weird to call it a success when they underestimated the intending. it spent money 13 times faster than it's supposed to and we can't have that for health care. but understand government does not createth, this will cost you and me and the american people. >> any response to any of that? >> well, it's a ridiculous husband on its face. here's the reality. and you have program that actually works. that is driving people to the showroom. that is a good thing. it's amazing that republicans seem to criticize the obama administration if the economy isn't turning around. now they're criticizing programs that are working. >> do you know what strikes me? >> let me get into this. here's the bottom line.

edmonds.com says that about 100 thousand people held off purchasing a new problem waiting for cash for clunkers. you now you have that thing going. we have a little boost and then we'll see it decline. this is an artificial -- >> people like j.d. will sit there and criticize government spending, but we will spend bill i don't knows of dla ares on programs that don't work, in particular defense contracts that don't et gus anywhere, and here we have a model bram that actually works. >> do you know what the lesson here for you democrats? here's what i see. i don't agree with subsidizing a certain industry, but look what happens when you give power to the individual and the consumer. instead of giving money to the government to spend wherever the heck they want it, when you give the power to the consumer, you get a lot more bang for your buck. >> here's why i agree and disagree with you. i agree that giving consumers

this incentive has fueled auto bodies. >> then why not cut tax and give more money in our pocket? >> we're encouraging people to trade in old inefficient cars that were gas guzzlers. >> if you have a car getting 19 miles per gallon and want to get a 45 mile per gallon car, you're out of luck. this is a scam to help the united autoworkers to artificially boost their -- >> we have it go. thanks. needless to say, the economy -- >> that ended well, didn't it? yeah, perfect. >> the economy is starting to recover, job markets still

lagging. so how do you land the job you want in this market? we'll talk to an executive recruiter about how to sell your most important product, which is you. >> and then a little later, cash for what else? if cash for clunkers is so great, how about cash for computers or apply niances or t? "power lunch" is back in a flash. (announcer) this is nine generations of the world's most revered luxury sedan. this is a history of over 50,000 crash-tested cars... this is the world record for longevity and endurance. and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class. this is mercedes-benz.

we talked about the unemployment picture still bleak. so how do you land the job of your dreams in this economic climate? our next guest says it's all about selling yourself. let's meet bob, the automatic authorize of the power of who. and i love the sub said, it says you already know everyone you need to know. bob, welcome. >> great to be here. >> it is about selling yourself about. >> absolutely. today it could be the number one jb advice tip in the world. you already know everyone you need to know. so i'm trying to tell people that you have this community of friends that you've developed over many years that will come to your aid if you'd ask them. >> is that for the most part how we find new jobs, especially in this kind of a climate? >> we have 15 million now. these people feel uncomfortable asking their friends. so who do you turn to? they turn to traditional

networking. that doesn't work. handing out business cards. they don't work. >> you said the vast majority of people get their jobs through friends? >> that's over 80%, do you know that over # 0% of your jobs are placed by a friend? because reference, endorsements and testimony of course are your greatest allies. >> but in this particular environment, we're seeing more people pushed out of what they used to do and they have to either go back to school, retrain, they end up in completely different fields than they ever thought they would. so does that rule still hold that you get your job through friends? we're hearing from viewers and others that they basically have to go out and seek out new opportunities in other areas that are not what they used to do. >> i create an amazing strategy. it's simple. you get between 100 friends in your quhol life time. who are the three close and one best? who are the 40 things you're looking for?

if you can write those down, tell me who the people are in each of those companies, organizations you report to, how do you know your friends don't know them? i have 5365 people that foe me. it took me 5 million americans on american airlines to do it. i found out what did i need. i need my who? the people in life that are most important. so my friends are 1e8ing me. you're connecting the dots. the people who love you in life wlorks would be better, some career website, some strange are or someone who knows you and those your gifts? >> so you call your friend. what do you say? >> think about it this way. wouldn't it be great to know what an executive recruiter thinks about when you walk in the room? first is do i know you. why? because we have to know something about you. so stop throwing out recent mays to people you you don't know. two, do we like you? 94% of the reason you get this job is because we like you. three, do you understand my

needs? and finally, come up with some stories specifically. so when you want something, you have to ask people. you have to ask your friends. >> i'm glad i have friends. that's all i can say. the name of the book is pow h. the power of who. thanks for joining us. still ahead, tim geithner's rant. would he tell you all about who quit and why. the white house council is on thin ice. what does it mean for obama's team? in the mean time, we have the fast money action report coming up. >> and the dow is just slightly positive. xwhen it comes to getting rid 6 your debt, it's all about efficien efficiency. first stop charging. next, concentrate 00 wiping out the highest interest rate first while paying the minimums on all your other accounts. once you have the first card, tackle the next and the next. and remember, when you're done,

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well can to the fast money halftime report. market at the highs of the session. what is driving the gains? our fast money crew, the pit boss and gentlemen and brian. let's talk about the markets. it seems like it's thought doing much. but isn't it important that the s&p 500 is actually manage to go hold on to that 11000 level som. >> the fact that people have been willing to hold the s&p 500 near the 1000 level, it shows you it's not necessarily the people are short, but it does show you there's probably people

that want to add to the market or get in and participate because they feel like they've missed something already. yesterday was a great example. volatility was up, trading over 26. the reason for that when you look at the s&p 500, the spiders, you've seen a two to one ratio of puts to calls. normally you'll see that ratio move toward the side that we're moving. we were up on the day, you'd think you'd have more calls. it was more putting. so people are putting in protection. they want in, but they want that protection, as well. >> you have to be wonder whagt hed wondering what the hedge funds are doing. >> i think you have two dynamics going on. it's the i can't miss this rally. it's a hard letter to write to your investors next quarter, markets up, and i'm down. that's a litt eletter nobody wa write. and there are a lot of frustrated shorts. we talked about it yesterday. you get those shorts out of there, the lid is off the pot.

>> pat, you're look at personal income data and that was worse than expected. pending home sales were better. how do you read what the consumer is telling us right now? >> there's a couple things going on. that personal income data, you have to remember that that was a 2.6% swing from last month. that is huge. and i think there was a little bit of false stimulus back in may. the housing day that we're seeing a lot of foreclosures being sold. i'm not looking at this and taking too much comfort from it. looking more at stable stocks. >> and we're expecting retail earnings out next week. is there a name there you think will beat the expectations at this point? >> maybe nordstrom. i honestly think that walmart will come in better than expected, too. the nordstrom i think i think is probably last month. >> let's move on to the next

trade period. just last hour, announcing a ban to flash trading was imminent about. this is senator chuck schumer of new york saying mary shapiro told him personally that the agency plans to ban the practice. this is interesting. he issued a press release on an imminent ban that hasn't exactly happened. and we should note this is essentially generally the domain of proprietary trading as well as hedge funds in order to take advantage of instantaneous price diskrep as soon as i in the markets. so this is computerized trading. pete, what do you think the impact is? ? this goes away, what happens? >> i think the critical thing really to points out right now is high frequency trading actually adds liquidity. what they're more addressing is flash trading and the concern

there is a select group of people actually see the flash. not everybody gets to see that. that's something the people have been frustrated with especially if you look past the last year. people have been disgusted by the idea that somebody has a leg occupy them and t up on them because of the fact that they're seeing something that to one elno one else is ab. >> i understand you were on the flash line. what is the impact in your view on the ban of flash trade something. >> i think its important to point out what's going on in a lot of the names. the capital market names. goldman sachs is still strong. you would think that this would negatively impact goldman sachs or morgan stanley and it is the financials today that are actually leading the market higher. look at jp who are began, above 40 bucks since god only knows how long. morgan stanley pressing 30.

3-4% and wells fargo and u.s. bank corp. the financials are strong and you would think it would be the market names that would be weak in the face of the news. >> that are goes to the strength of the market. the market would have been down 300 points on this. >> let's move on. shares of caterpillar and rallying more than 4% after reiterating the outlook under various scenarios. it's not willing to time out the economic recovery saying the timing is a little bit uncertain here. it seems like very, very good news. >> it is good news. you have to remember they will be selling into the areas that are getting the stimulus money too. they have come way down from where they were at the highs. they have gone in and made cost cuts. they probably can do well going forward and that is going to be a driver long-term. they are not seeing the bottom yet either. >> right. dennis, you popped up in the screen.

>> i made it. bad traffic here in virginia  beach. >> absolutely. what's your feeling on caterpillar? is there an ancillary buy since they are up. >> i don't think you want to buy cat up 4-5% on the day, but things are getting better around the world. when they tell you that for the next several months, they see things getting better. i think they set a pattern and it's supportive. >> right. and pete, you are watching bullish activities and the pits are backing up the move in the stock. >> i think what excited the pits is it wasn't just a 2009 outlook, but five years down the road raise together to $8-10. the september calls incredibly active.

this is a roll from the august calls going out into september and wanting to get the bang for their buck. people are betting that they think there is more, not just 4% today, but expecting to see the stock going higher over the next couple of weeks. >> any time you get correction at all, if you get a dollar or two or three, you want to be a buyer. >> the pending home sales are up and we are watching the home builders and you are watching the lumber futures. >> i want to watch lumber futures as an indicator. home sales numbers are fantastic. i don't trade the futures, but you can look at the timber names. one of the largest timber companies in the u.s. not only do they sell, but the kicker is they sell pulp used z for wood palates to burn in utilities. the call is plum creek ceo talked about coming in and

placing orders or at least ñ looking to secure wood if indeed the cap and trade legislation goes through. >> got to leave it there for now. on tonight's fast money, what may be green overshoots and tell you if it's time to get out. the success of the administration and what else could the government give you cash for? first we have more fast money halftime report after the break. >> s&p at 1,000, but have stocks gone too far, too fast? we go weeding for green overshoots. the pit bull rick santelli brings a windy city heat to the new york crowd. what's the really story? plus, fast money is a full-service show. the liquidator takes the step back for a slow money trade that will pump profits for the long-term on america's post market show tonight.

welcome back to the fast money halftime report for the "power lunch" trade to go. you are watching foster wheeler. >> i like this name ander love the engineering stocks. a nice report last week. this name could produce pretty strong numbers when you look at power generation, engining stocks and they perform and are well below where they had been. plenty of room and you talk about infrastructure spending and all the rest. foster wheeler is a name you want to keep your eye on. trading in the low to mid 20s. >> if you have no money and sitting on the sidelines, now is a good time to buy. >> it's ready for a break out and more upside to come and not just because of the earnings, but when you look down the road, bolts are very, very cheap, you have to like the names going forward. >> do you buy or sell? patty?

>> this is like a party at jonestown, but i'm not drinking the kool aid. i'm a seller. >> i guess that would be a no. >> if you fight, they will carry you out on your own. you have to buy t. >> brian? >> i'm a buyer. i can't miss this hal rally either. >> pit boss? >> the protection is there and the sellers are running out of fuel and can't push it down. look at the reaction today. i think you have to be a buyer. >> that does it for us on tonight's fast money. we have analysis all over the faction. we talk about stocks that may be overbought. solid earnings for discovery networks and "power lunch" breaks down the results and tells you what is ahead. see what else you are working on. >> coming up, the acting cyber czar resigns and secretary lashed out at other regulateors. what does the tension mean for

president obama's agenda. also ahead, annie leibowitz is facing serious financial troubles. we will take a look at what it could mean and cash for clunkers appears to be a success and we are getting lots of e-mails. what else should they offer cash for? we have ideas at the top of the hour. home sales rose 3.6%, the fifth straight month of gains. the transportation department said on time performance so far this year is the best since 2003 and colorado state forecasters say this hurricane season will bring 10 named storms that is down from the previous forecast of 11. that is cnbc news now, i'm rebecca jarvis.

>> no endorsements on this. welcome to our number two of "power lunch". new york senators chuck schumer said an sec ban of flash trade suggest imminent, but the sec out after that clarifying, saying they are merely studying ways to correct inequities result for example flash trading. this is the type that gives certain traders advance knowledge of stock orders before they go through. we will have more on that in a moment. >> the market strugging off early losses and moving to the plus side. caterpillar the biggest winner. united airlines leading the nasdaq 100. >> controversy over the cash for clunkers program. releasing records that provides more clarity on success even as it campaigns for two more billion dollars. the limited information available said the majority is

not buying from gm, chrysler or ford. rather foreign companies. honda. >> so many are made here. >> honda, hyundai, toyota. those are the leaders anyway. six of the top 10. >> are we suggesting an addendum that require people to buy american cars. >> i hope not. >> we heard that from some people. we will be taking your e-mails later in the hour. >> workers in the south are less deserving of a job than in the north. in the south is where they tend to make a lot of the foreign cars. that's what they would be saying. >> the senate has this on the agenda. there is no time table of when to begin debate. they will take up the issue of adding to the cash for clunkers program. we will see if that comes up. >> let's talk about flash trading. is it about to become a flash in the pan? regulators are looking to ban the profitable practice. cnbc's mary thompson joins us with more. >> a word from washington is the

chair woman, mary shapiro promises to end this trading practice when many equate to front running. the chair said just as michelle did, not so fast. new york senator chuck schumer's office said that is shapiro informed schumer. ban that she said would occur as part of a larger look in high frequency trading. shapiro downplays in a statement saying she asked the staff for a plan to eliminate the inequities resulting and a proposal in the practice needs to be okay and made open for public comment. in exchange it gives traders a look at buy and sell orders before they hit the tape using fast computers so traders can make a tidy profit. they allege this puts less sophisticated investors and contributes to volatility in the market. they looked at flash orders earlier this year as part of a probe into dark pools, block

trades made by investors. the trades can't be followed by the investing public. back to you. >> thank you very much, mary thompson. fdic's chief sheila was there and hampton was there. >> the hearing wrapped up a short while ago and top regulateors testifying before the senate banking committee. nobody came with transcripts, but they say the reported geithner rant on friday was a condit conversation and a lot of what is being reported was accurate. what richard shelby wanted to know is as far as their ongoing independent criticism of the obama plan, would whatever the treasury secretary had to say impact their ability to function as independent regulators? >> does the testimony that you have given here today that you

provided, is that your own views such as it was, not any way influenced by secretary geithner's tirade against you the other day. >> we do not clear our statements through the treasury department and we take that independent function very, very seriously. >> as far as the proof of performance portion, continued to fire away at the obama reform plan in front of the banking committee. the target today, the call for a single national bank regulator. >> we think it can guard against capture. if you have a single monopoly, there won't be another one saying we have a higher standard or question that. you lose that with a single regulator. >> the treasury secretary said a lot of this criticism is nothing more than than them despending turf. the criticism with major policy

features of the reg reform plan opens the door for the lawmakers. sue? >> thank you very much. >> you heard mr. dugan talk about this and asked about the tirade, lashing out in a closed door meeting last friday. another story out that president obama's choice for at least interim cyber security czar quit yesterday. another story out there right now that the white house is reviewing the future of white house counsel greg craig. his job could be in danger. what's going on here? are there cracks in the white house finally starting to show and what does it all mean, this tension in mr. obama's push for reform. joining us from reuters money is cnbc correspondent john harwood. are we making too much of this? they were not exactly supportive of the treasury department today. >> absolutely not.

there is strong disagreements although i had to say that i got a laugh out of people when i asked about this tirade that geithner went on and barack obama is taking on big things that strong people disagree about. you definitely have seen them publicly as well as privately on financial regulation. some of the other stuff i tend to discount. i am told greg craig is not in trouble and white house sources told me that today. as for the cyber security czar, that was a hold over from the bush administration and there is frustration and the vetting and the filling of jobs in the administration has been slow all year. i think that explains that tension. certainly on health care and

financial regulation and even on economic policy like the stimulus. you saw the back and forth with geithner and summers. you got disagreements. >> jimmy, if indeed there is tension in team obama, what does it mean when it comes to health care reform and cap and trade that the markets worry about? will it slow down? >> if some of the things which are causing the tension, you have really important policy areas that seem to bog down. cap and trade, that was dead. health care, you are looking at a rump version. it may be high for another two months. it hasn't come down for a year 1/2. after the session, it is grinding away at the popularity and approval rating and it will get worse. >> that could be good for wall street. they like gridlock and how much

of that is going on in the market? >> it's controversial to say it. the amazing coincidence. we have this maximum gridlock and the agenda stalled. we had this fantastic drop in the market. a lot of things as well. we turned a corner, but like i said, it's an amazing coincidence. >> maybe it's the amazing impact of the stimulus. >> not easy being an agent of change and think you are seeing six months into this administration and it is months right now that they are feeling a little bit of strain because of the push back they are getting in affecting the changes. >> cap and trade is a very, very difficult sell in the senate although the administration is feeling good on health care, there is a 13 has not been enact enacted. it's big and complicate and a lot of interest at play and at

stake and sell suggest not easy. i think the administration is in a better position than bill clinton was in terms of having a chance. >> can i ask you, it seem that is the discussion has changed a little bit in health care. for so long we were talking about bending the cost curve and now when i hear larry summers and representative sherman on last week, nobody is talking about bending the cost curve. the new phrase is deficit-neutral which is a different thing. you can keep raising taxes to pay for the cost. am i crazy and hearing a change in the language? >> i agree with you. totally different things and benning the cost curve is important. >> they are not talking about it. >> i am not hearing the same shift you are hearing. when i hear the president talk, he said he is still committed to that. doing it is a much different thing than talking about it.

one of the biggest flash points is they go back home and the idea among some elderly americans that some aspect of the plan is going to have the heavy hand of big brother coming down and saying you can't have more treatment. it's time for you to die. that is a much more stark and controversial way of phrasing it. it is true that end of care, you have to do something about it. there is a grain of truth and it's an electric -- you talk about the third rail and that's another third rail. >> they are looking at the example and they worry about expanding coverage first and cutting cost later and may be going for the carrot first and the stick second. >> thanks for joining us today. what we want to do later this hour is discuss the cash for

clunkers program. obviously a success. the amount of money they have gone through, they are trying to vote an extension in the senate as they did in the house. if you extend this program, extend the brand, what would you want the government to extend cash for? we want your thoughts on that. "power lunch" at cnbc.com. >> some are brilliant. >> we will have a little fun with it. mark wrote us already saying my wife wants a spouse cash for clunkers program to trade me in for a newer, more efficient model. we wish you well on that, mark. >> you didn't put his last name. >> we're would welcome other suggests as well. "power lunch"@cnbc.com. >> the dow is up 42% and the nasdaq 58%. we will round up the stars and take the realtime pulse of the market. >> the boss has spoken. we will tell you what goldman

sacks ceo is telling his troops about their spending habits. "power lunch" is back in two minutes. eseseseseseseseseseseses

let's get you up to date on the markets. i know it doesn't look like a lot of action, but the fact is the s&p it is holding above that 1,000 level. >> the surs thing going on in the middle of the day and that is that interest rate-sensitive stocks have been moving the

market forward. they are housing stocks and real estate investment and big financial stocks. take a look at a couple of names. pending home sales earlier are contracts on existing homes. that's a lagging indicator, but a piece that was more positive than people expected. home builders are doing well. up 4-6%. still the stocks are moving forward here today. the same situation with real estate. many of the games like the boston properties having a great day and the index itself is at the highiest levels since september. then the big financial names. regional banks are strong here today like zion, huntington bank corp raus bank corp, bank of america is one of the leading stocks in the dow jones helping to move that forward as well. trader talk and rick, the 10-year yields are moving up

which is curious given the financial strength. >> it is curious and there so many curious aspects. pending home sales is good, but i'm getting a lot of e-mails from the people that say the foreclosure amounts are blowing up big time, but the banks are putting a spiggot on how many go to auction. let's consider whether it's dollar or interest rates. the good will and the perception that equities are telling us something positive, a side bar to that is rates may go up and vacate on safety and dollar may go down. whether that's for good reasons or not, the issue is that at the end of the day, both of those can come back and affect the price of equities. a huge variable and as far as flash trading, the analogy is this. if you take the steroids in baseball and let everybody use them, you will have more home

runs and more attendants and more excitement and more revenues, but is it the right thing. that's the analogy they are looking at. back to you. >> what's going on in the nymex? is the dollar sideways making a big difference? >> that's because of that. a lot of traders would agree about that flash trading comment. they look at it as electronic trading. all that was they are scratching their heads trying figure out why they had the impact they had on the trading community. keep in mind as we look at oil prices that rallied 20%, when a holding pattern had for a couple of reasons. from the department of energy tomorrow. more importantly, a lot of traders are lookingality tomorrow and the all important jobs numbers from the labor department on friday and therefore on oil prices.

that really has been the trade. prices are hovering above $71 a barrel and we are likely to be here before we get indications about the outlook. >> thank you very much. >> movie time. roll the videotape. >> did you hear what i said? don't buy anything. don't get anything. what's the matter with you? >> that was about the only clip that we could use from good fellahs of diniro telling them not to buy anything. they did it and got the mone. don't buy anything. we are not equating them with goldman sacks. the point is that according to the new york post today, they told his top lieutenants to tell their staffs to cool it on high profile expenditures. don't buy anything because of the have environment we are in. it may look bad because of the

record profit they turned in in the latest quarter and the amount of money they got from the government and the benefit they may have derived of $150 billion. he said let's cool it right now. >> it's probably smart or his part. see how often they go into wherever it is and walk out. >> this is precisely why he said not to buy anything. >> he reportedly started this quite a while ago. this may be heating up given the fact that it's under renewed scrutiny in washington, however this has been something he is suggesting for a while. >> it's smart too. not because we are penalizing people for making money, it's just bad pr. >> they have so much. remember the rolling stone article that calls him the giant sucking squid on the economy. >> new york magazine on how they

have been bailed out for whatever other reason. they got a lot of bad pr. >> some people feel like they are being penalized and i think it's pr. that's his intend too. >> the right environment. >> have your people do that. you may not know her name, but you have definitely seen annie leibovitz's pictures. of course you know her name. she makes millions photographing superstars and presidents. she must be very rich. >> you would think. however she is about to lose her home and the right to her work. why? it is a financial fiasco not to be believed. we will talk about that when we come back. taking its rightful place

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>> take a look at the kodak stock mostly in the options markets. we have been seeing four times of the daily volume changing hands. focused on the call options and 13,000 contracts traded in early afternoon. 57% on the options flow was bullish. >> by mere coincidence, annie leibowitz, arguably one of the most famous in all time. the pregnant demi moore and we will show you her latest look from mad men, the cover of michael jackson on the cover. that's for the upcoming "vanity fair". she continues. she is at "vanity fair" still and continues to pull down a-figure salary and word is she is in debt to the tune of $24

million and at risk of losing rights to her portfolio. how did she get into this in the first place. joining us with eileen with art news. good to see you. she is so talent and yet so indebt. what happened? >> in the last five years, she told a studio that ran up huge debts and bought two town houses with extensive renovation and got sued by a neighbor and had to buy a third town house. he added two children to her family and her mother, father, and long time lover, susan son tag the writer died. >> you happily pointed out in your article saying she is louz we money. she doesn't pay attention. >> it seems to be dated back to her days as a 20 something.

she was living a rock 'n' roll lifestyle and had a drug addiction at one point and was not careful about money for a long time. >> if you look at the art market in the situation that she finds herself in, this is not the best of times. if you have to go out and get collateral and money for the art that you put up as collateral, what is the market in general like at this point? >> not a good time for it. we basically saw that this kind of activity picked up a few years ago with the boom and the broader art market and the strong prices we were seeing. people began looking to the art as an asset. the art was worth so much more than what they paid that barring against it made sense because you didn't have to sell it and incur a huge capital gains. a lot of the lenders are extremely conservative and the auction houses that used to give more risky loans have pulled

back and unless you are saying you will sell this at your auction, it's definitely a much tighter atmosphere and that's what's happening with her. >> she is no different in many ways when we see a lot of stars. either rock 'n' roll stars, athletes, etc. sports stars. they blow it all when they are young and never good at managing their money. how often do we see this? >> some are savvy and we their financial decisions and borrow against a work they owe and funnel into what is a smart buy for them. in her case it's not just the art, but the real estate as well. many of the lenders speak about how important it is to have a diversified pool of assets. with the art that you own. in her case it's a big store of her own works. that could be risky in terms of where the value lies. >> is her fate sealed? she has a payment due to a group

that floated her the loan to keep her going. is she going to be able to pay that back or is it done? >> it's due september 8th. that's a short period of time to raise $24 million. >> she has a lot of friends though. >> i believe one of the loans that she had to pay back was a loan to the owner of "vanity fair" and vogue. to whom she owed a-figure down. to buy the archives that has been estimated at $50 million. or i don't know. >> what would happen if leibowitz's work is flooding the market. that's what could happen. >> that's a concern. it goes back to the idea of diversification f. that much material becomes available at once, that happened with the artist work that tends to depress the prices.

one thing in terms of the loan, one of the bankers i spoke to said a one-year loan for that much money didn't make sense. >> that goes to the company that she went to. art capital? >> art capital, their understanding and this is why there is litigation. they were giving her a bridge loan and loaning her $24 million on the understanding that they would market the archives and sell it. she has not been according to a lawsuit cooperating with the marketing of it or of the attempts to send realtors into the homes to sell them. >> uh believable. thank you both, folks. september 8th. hopefully she can do it. she knows the queen now. remember she took her picture. >> the queen is asking for knowa increase too. >> she knows the astronauts from the louis vuitton ad. we will head back down to the floor with the latest on today's action. >> in a few minutes, solid

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trading higher after the company said they plan to buy the two largest bottlers valued at $8 billion in cash and stock. shares of pepsi up nearly 5%. personal income fell by 1.3% in june. the biggest drop in years. consumer spending inched higher at the same time. profits by archer daniels midland fell and weak demand is getting the blame. shares of adm down 4% plus. >> the dow jones held up well in light of the data we got this morning. if are more on the moves, let's head down to the floor. when the flash trading came out, they were impressed with the

resilience of the markets. about months or so ago, they thought it would tank a couple hundred points. >> the other was the headline from this morning. >> it's not a ruling. >> they are taking things under consideration. >> they have to add it under the milliseconds rule. that's in the mix. i wasn't surprised. retail investors hearing we hit 1,000. mutual funds are chasing performance and the market is probably going higher. >> gambling, hotels reached the top-performing today. any sense of why that is or why the interest on the part of investors? >> what were the most short stocks? you probably just rattled them off. >> is there a danger that if people call their brokers and

try to get in that is chasing the rally, they are getting long? >> the rally didn't make any sense, but we have to listen to what the market is telling us. >> why didn't it make sense from the start? we have three days in a row that was better than expect and showed a bottom if not a turn. we see continuing claims and we saw the commercial loan issued and hanging with us. >> oh, that. >> people are wishing for the best here. if we look at the market, we have seen us do nothing but move slowly and steady up, up, up. we are going because a month ago, the banks were not as firm. we have a higher volatile market than we did back then. that's why we are not seeing tremendous pops. >> thanks, steve. appreciate it. over to you.

>> time to look at the day that most widely followed stories on cnbc.com. the managing editor telling us what's clicking. the donald is hot. >> if there is one name i can put in the headline that draws people in, trump. i have seen it over and over. she retaking control of his namesake casinos and we put that up to date and people are diving in. they love the donald or hate the donald. either way. the second hottest story we have is about our own corporation. we got into a to do over accounting things. it was an honest mistake and it's our story about ge and paying and ge is the number one ticker toez. the hottest one right now.

mr. cramer laid out his thinking that there might be a shallow pull back and you see the market take off. they dive right in. >> i can't wait to see what he sees tonight. pa. >> telling troops to cool it with constickuous consumption. is goldman getting a bad wrap here? >> not a lot to eat here. they have to go to mcdonald's around the building. they have to eat pizza instead of foix graus. no truffles on the pasta. how many times have i beat up since i was working at the "wall

street journal," those guys have hated me. for me to say that there is irrational exuberance, i think they are getting a bad wrap. they deserve to get snacked. they are getting cheap financing terms and the taxpayer is subsidizing risk. that's a bad thing. they got bailed out. they were done and they were toast after aig and did get bailed out. we made that case as well after the "new york times" broke that story. that's an interesting thing to talk about. goldman sacks did benefit from the aig bailout. right now the debate about goldman is going from a rational discussion about how they are making money and how the government is subsidizing risk and how they almost died late

last year to something much bigger and it is taking on a life of its own. >> isn't it appropriate to do pr control? it seems like a good move to me. >> yes. i'm not criticizing the move. they are making fun of it. i think it's a legitimate thing to do and amid this insanity, don't go out and buy 20 mercedes. >> you know what they will do with some papers. they will stake out and take photographs of everything they buy. >> that's what reporters are doing. nothing wrong with that. they are in the silly season where goldman sacks went from bailed out company to part of the problem to the company that essentially was the leading culprit of the subprime crisis. up there with cnbc which is another insanity. goldman sacks may have caused it. the reason why you know they

didn't cause it, they look at the market share of the mortgage-backed secures and that's 2006. that was a wild year. if you look at 2006, they are the same thing. not in the top five. in 2003, guess what. in 2007, the market was so dominated by citigroup and merrill. the rolling stones article talks about possibly -- i can't remember if they said in the article in the interview, there may be securities fraud going out and shorting the subprime market in late 2006 and early 2007 and making money off of the position when it was selling securities. it's called hedging.

you can -- it may be securities fraud and i don't know the e-mai e-mails. you can explain that through hedging. everybody doubled down for merrill lynch and morgan stanley and citigroup on the subprime area. aig stopped doing underwriting on cdos and the toxics securities. it's already out there. goldman does the thing. it's being interpreted as securities fraud. i think they clearly have a big pr problem. i don't know what that means. i have known lucas for a long time and maybe he should step up to the plate.

a lot of this is totally insane. the financial break down as one of the main culprits. you have to blame warren buffett. he owned a chunk of moody's. guess what moody's investment did. they clapped the aaas and they were paying their analysts to rate them by volume. all the incentives were set up to slap the aaas. do i blame warren buffett for the collapse? no way. if you are using the goldman sax logic. >> thank you, charlie.ó cash for clunkers. a huge hit. what about cash for computers or washing machines or refrigerato refrigerators. >> or clothes or shoes and is this obama's best brand? >> we will follow the markets and up about 17 points on the trading session. "power lunch" is back in a monday. at 155 miles per hour, andy roddick

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to exceed expectations, it's so successful in fact, could we see other government rebates. in a few minutes we could show e-mails about viewers in terms of cash for other stuff. what do you think. besides clunkers, is there another way that would be helpful or successful? >> we live in a discount nation. people won't change unless you throw cash at them.

that's why this was successful. refrigerators and air conditioners and other giant fre on-eating machines could be beneficial if we gave people money to up grid to newer, more fuel-efficient energy-saving devices. >> we had a couple of things to throw out just to get the ball rolling, i think they are ready. any moment now. >> what you are saying. how about -- >> for medical procedures, the kind that costs lots of money. >> cash for surgery. cash for nose jobs? how about old kitchen appliances. maybe she would go stainless. >> why this entire program though it's the one sign in the practice that is successful.

in don't we call it cash for helicopters. the car industry went down 40% and the green angle. you should divide computerers. they are not green. most computerers. they suck electricity. we are getting into a bad way. how about freezing capital gains for the next three years. >> we are looking for a way to stimulate the economy. >> we have the $14 trillion economy. do we think $1 billion? >> i agree with you on not subsidizing, but you want to stimulate the economy. this billion out of the stimulus is probably the most effective. give the money back to people! >> that is so right. this is definitely the best billion dollars ever spent.

this is more to help the obama brand. people are feeling good for a change. since this administration came on, they are feeling my god, maybe we are getting out of it. it comes down to branding. >> is it just the money or something else as to why cash for clunkers is successful? >> it is the branding. a memorable slogan. cash for clunkers means something and use together in advertising because it is so memorable and cute as a way of saying it. it really has an emotional part. >> like port for politicians. >> or t.a.r.p. >> instead of just first time buyers are how about anybody who wants to buy a home. a tax break is better than a payment. >> a tax break doesn't have the same branding. it doesn't have the emotional impact. it's the great name of it and the branding of this and it's so immediate.

>> the government is writing checks to occur dealers. that does not trouble you? >> that troubles me, but this is a small percentage. there is a pent up demand and people will not spend. we taught them not to shop unless there is a coupon or discount. >> two more e-mails. >> people have to get off the drug. how about $1 billion in compact fluorescent bulbs replacing. >> that would be great for general electric. >> the mercury problem. >> every side effect.

>> all parents of teenagers. how about cash so long as parents promise not to replace them. that was the investment of the future. my other favorite was how about a program called cash for me. i like that one. >> you can have cash for anything. people will do anything for cash. >> pay full price. >> thank you, laura. >> absolutely. >> see you tonight on cnbc reports. >> we are all over the markets and what obama may do to kill them. >> may. >> at least he is consistent. sharks and reality shows are paying off for discovery networks. characters like iron man are raking in big doe for marvel entertainments. >> we will have that on the street and we are back in two minutes. 

cable giants are finding strength despite a downward trend. we have more on that. hey, julia. >> conglomerates struggle in how to monitize the shift of

consumers on to the internet, more niche media is thriving despite the downturn. reporting earnings from continued operations doubled from the year ago quarter to 32 sends a share while revenues beat expectations. continuing the trend that drove the stock up nearly 80%, the company reported 1% add revenue growth and a 12% jump in ratings and 11% increase in international subscribers. the company is growing market shares and he does expect to add marks to remain uneven as advertisers buy stocks closer to air time. marvel entertainment exceeded expectations with 37 cents a share, beating the street by six cents on higher than expected revenue. even raising the low end of the full year guidance. the results fell from last year and comes in a year when the studio didn't release the films, reflecting small dvd and paid

sales of iron man. marvel stock is up about 30% year to date on confidence that the sequel will live up to the success with the first iron man film last year. we have to remember that there is potential for more volatility from the studio like marvel that releases so few new films every year. >> thank you very much. let's talk more about this. all-around the table once again. >> a nice reunion there. we have been waiting for companies to profit. they have been way undervalue and up huge percentages. 40% to 50%. the media has been down so long where they finally seem like they are looking up. >> discovery is a perfect example. that has been a problem firefighter the media. they have cable advertising and cable advertising has been a huge source of strength and look at the performance of the cable channel. tlc has one of the most talked about shows.

jon and kate plus 8. >> that's not jon and by the way. >> it's shark week. >> there parallels. >> a lot of similarities. thank you. we appreciate it. >> they are getting divorced. >> oh, yeah. jon and kate, you won't see them in the super market line. done. >> you betcha. always enjoy having you on. >> a quick break. >> how the mighty have fallen. >> ruth madoff's tight budget on the other side of the break. announcer: some people buy a car based on the deal they get. - others buy the car of their dreams. - ( beeps ) during the lexus golden opportunity sales event, you can do both. it's an opportunity today. it's a lexus forever. special lease offers now available on the 2009 es 350.

ruth madoff was sued for $40 million trying to recover more funds from his wife. she reached a settlement now where by she will have to tell the judge in this case and what all of her expenses are over $100. >> they will be busy. almost everything is over $100. >> in new york city for pete's

sake. you go to the grocery store, you have to tell them. >> how the mighty have fallen. gosh. she is finally getting her hair colored for $500 every two weeks. >> $100 and she has to declare it. >> that are will cause a lot of red tape. >> we will see. we will see if the markets continue higher into the close as it did yesterday. so far, so good. >> i will see you in about a week or so. i'm going on a vacation. a travel journal in the rv. >> you will see me on the 3 and the 4 today. going on vacation with you. >> the rv, right. street signs is next. >> this is the news now. >> general electric will pay $50 million to settle sec charges of making misleading statements about its accounting. the fda is requiring warnings for drugs known as tnf blockers and include johnson & johnson

and abbott labs. there is an increased risk of cancer in children and adolescents. eli lily is offering buy outs in hopes of trimming a few hundred jobs. i'm rebecca jarvis. weather the market rally will continue and whether the president is going tomorrow. pennsylvania is getting better and maybe america truly is on the mend. if you lack a clunker, but you would like a piece of the plan, we have one for you. so to ask the ultimate trade, the reason and the trade here on street signs and with $1 billion of meat, why is the aussie government conducting air strikes to slaughter camels? that is our show and is it it starts notice.

>> harry reid saying that the senate will be passing the cash for clunkers bill. that is something that most people expected, but none the less the headline is they will get a couple billion for cash for clunkers. more on that trade coming up in a couple of moments. a surprising angle and let's get to the trading floors with the markets which were up and turned down in the past few minutes. the trading floors, we have bob dasani and rick santelli at the nasdaq. good to have all three of you with us. speaking of the economy and where we stand, the ph.d. called this recession earlier than anyone else. where does he see us now? >> he sees things improving that and that's a good point. they are having an analyst meeting over at