>> all right. we'll check back in with you. jim will be tweeting the entire conference call for us and you can follow the koimt at twitter.com. fishing in this environment. >> hello. squishy in the prism of cisco's runoff in the past year is conservative, is it not? >> squishy is never good. >> only your pillow. squishy is not good when a stock frgz 13.5 to 22.5 and squishy isn't particularly good a week after juniper fakes the same comment that they made today themselves did great thing. from 13.5 to 22.5, a lot is represented in the stock. cost cutting, that's great. the fact that revenues is down 17%, people have to be taking money off the table. valuations, no matter how you slice it, it is sort of fair here. people got in on the back of intel. a month and a half, two months

ago when intel reported. i can't get bullish in cisco. special when i the movie the s&p had had snxt have the problem with cisco, the calendar. they came out august 5. they had come out like emc or juniper early in the cycle, they could have gotten a better response. the expectation is built into the stock price. if you look at the number, a little concern here in terms of sale fore merging markets. down 38%. a lot of the tech strength is coming from thee merging markets. it is not good to see that down 38%. i agree with him. overall, the numbers are okay. it is about them releasing their earnings. >> two week ago, this stock was $18 and here it is at 22.5 in this little pullback. i still view that as a positive. i think he was a little less bullish. he didn't necessarily call the bottom but he did give us some projections going forward. i think the cost cutting measures they've taken are unbelievable. the execution has been great. we talk about balance sheets.

$35 billion on the balance sheet. they put $2 billion in cash flow into themselves. now they have to put that to work. whether that mean they'll go out and buy somebody, somebody may be even bigger, $35 billion. they can buy a lot of different folks or show some kind of growth. a fairly stagnant company just plotting along. >> i think i agree completely with joe. the middle of the nasdaq run-up, that would be fine. in context it is not disappointing, not out of the park either. the run is absolutely tremendous. so i don't think there is a ton of news that we learned here. he was not overly optimistic, nor was he particularly bearish from the parts -- >> just squishy. >> i guess that's what squishy is all about. >> 42 million shares on the quarter. now i would love to see them start to car did i have deny. maybe that's the next step. as we use that cash, get people excited about the stocks.

that might pull a few more folk into it. >> overall, should i call you michelle or melissa? which do you want to be called? >> dr. j. guys talked about this morning on the call. he will get into it more. when you look at the tech sector, what becomes the catalyst to elevate. i think we all believe that technology is a sector you want to be in. now you're past the earnings part of it. what is the fundamental catalyst to take everything higher. texas instruments today, goldman sachs put a report out highlighting how intel might be coming to the end of the road. a lot of these, it seem they're using a little momentum. >> what do you do? >> if there are no catalysts for technology, do you then take some profits and move to the side lines? if you have the bellwether coming out, squishy guidance, he is not willing to put a stake in the ground here. what do you do? >> a lot of these got the price as we told you about.

119.96. we were looking for 120. listen, sometimes get to your level systems. sometimes it means it will do it without you. ibm if it gets higher will do it without me. cisco, the same thing. you want to talk about joe just mentioned, goldman came out with a pretty negative piece today. they have a $15 price tag. that's the stock that has been hovering around 19. basically since the reported earnings a month or so ago. intel's earnings were fantastic. then you look at the valuations. is it worthy of it? no. that pulls back as well. ? it is now down by about 3%. jim goldman is on that conference call. we'll keep you updated as the session goes on. next trade here. they trade lower but financials continue to lead. american express, got a nice pop in the afternoon. you've seen the first improvement in the credit market

in about 18 months. and you saw mid session, a 96% rise on the back of american express. goldman sachs, jpmorgan had some nice performances together. >> the thing that was interesting, moderating credit losses, you talked about a divergence between write-off and employment. that's the first time we've seen. that that is a positive. then anyone that had credit card exposure like a bank of america, even though it was stronger in the day, really caught more strength at the end of the day after these comments came out. that is a nice thing. probably not bad news for capital one. >> she's had that cold. i've been wrong. american express, these are levels we're trading now. this is where we broke down from back in november. yeah, they said better things. three week ago, two weeks ago they said 10%. marginally better. then you go to mastercard which traded to 209. huge volume. that's where we've tried to get

you to go. i wouldn't say to buy mastercard either. especially trading around the november highs of 1005 breaks down. >> you look at bank of america. you start to put together the asset managers. consumers, that's the exposure level. these stocks have been outperforming. the last two weeks. take a look at something like bank of america, citi, 25%. they're starting to outperform goldman sachs and morgan stanley in the short term. the reason is that consumer. people get more and more excited about the idea the consumer is not completely dead. maybe they'll be a little life. maybe the foreclosures will slow down because of all those reasons. you look at all those names. maybe bank of america. next year they won't write off $40 billion. suddenly you look at a company that made money despite that number. this is a company that is really too cheap right here. >> if you look at the financials, i think it is important to understand. we talk about the consumer and

it is retrenching. however, the balance sheet of the consumer is tied to hole their debt right now. the big bang slate, j.p. morgan, they are going to see an improvement in the balance sheet as you see the values of these loans begins to ride up a little bit. it is the trade, to be there, you see they're surging. jpmorgan above 40. we talk about it last night. i can't remember the last time that happened. i think on a consumer play, that is actually the trade. >> look what black stone did today. i think it closed at $15. 15.5%. go back to may 6. a high of 1444 on about 17 million shares. it broke down from there. we stay above that 14.511. the problem with that is they report tomorrow before the bell. so not a lot you can do. but keep that 14.5 level in mine. blackstone looks interesting. >> monday they traded 35,000

calls. this stock went absolutely crazy to the outside. today, more and more calls. they were continuing to come after them. you look at something like bank of america. huge open interest in bank of america. over 60,000. they traded 117,000 of those today. please are looking to the upside. not just bx, but bank of america, citi, we traded 16.5 million option contracts today. it was all the financial. all exceeding the 20-day by a large number. huge activity all upside call. they have protection on the foot. they keep moving. >> you can't forget goldman sachs and the activity in 24 hours. it was touched on today. that report this morning is how they said they have made $100 million at about 80% of their day. that's good for the markets. it is approaching 170. meredith whitney was spot on. this and i think people looking for and it chasing it higher. >> i want to button this up.

you talked about it a lot, they had earning out today. not too bad. and more importantly for that draw bridge fund which had temporarily suspended those redemptio redemptions. >> you have to name the draw bridge fund. >> what do you do -- >> those guys, they were able to survive. a like blackstone. i think it is a more interesting trade right now. although fortress, at $5, you're not really risking all that much, frankly, i would rather be above $14.5. >> the market loves cash for clunkers. traders a bit up. about 19% in the last five days. the big question i have, are we just selling cars now so we won't sell them later on? >> yes. >> that's it. >> we talked about this yesterday. i think so. some of these auto supplier names have gone crazy.

today, american axel is a company up severe distressful part squeeze, part euphoria. but to answer your question, yes. i think we're just stealing sale from the future. >> here's another trade if it goes higher, it is ford. now trading middle of the $8 level. people will pile in now. i think they're piling in late, frankly. the ford trade to me is in trouble. >> rick santelli in chicago, he is hopping mad about something or other. we have to bring him in. i hear him in my ear. what are you mad about? >> i think guy adami hit on something. we see the company like ford probably isn't sustainable because of what the chair woman said. we are pulling from future. but it is voodoo economics. let's face it. if i 3 phone and break the screen, he will buy a new screen. it is the broken glass theory. what is even worse, gang, is that these old cars, somebody

could have use them. they're being destroyed. not only the engines, the parts, the tires. the whole thing. a pay roll tax holiday would have been better. why do we think the government should dictate where the money goes? it makes it down to the people. but they're into the car market. maybe they would have bought more school supplies. maybe they would have bought a washing machine. the allocation of capital should have been done through pay roll tax holidays. it would have been better. what do wets? do you agree with that? >> over the last couple days, when you look at ford, you look at toyota, you've had an abundance of good news. as a trader, you know that she tells you everything. i'm staying with my toyota motor short. i'm staying with my ford short them can't go up any more. it is built into the tape already. tell me what legal come out. >> i'll tell you. what let's bring you in. what is volatility doing these days? >> it has been holding pretty well recently. >> much cheaper than it was. is it better to buy into these stocks from the flip side? does that make any sense?

>> absolutely. i think anyone willing to jump into any of these name, and i will be warned on one last issue. what will get those things from stopping to go higher? i can tell what you it is. you see the short sweep each and every day. what stocks have been catapulting? the name that are extremely short right now. steve grasso pointed out the other day. the casino name. the housing name. you look for big short. those name are making those incredible runs to the upside so be careful. >> all right. we'll touch back with you later on for the trade ahead of the job support tomorrow. so you stay cool there. >> no promises. somebody left me a big pot of tea here. >> all right. we'll check back with you later on. moving on now. the power trade. foster wheeler earnings, top estimates, what do you do here with these runoffs? >> it is scary but i think i look at somebody like foster wheeler, we liked them yesterday going in. >> you flag us on the halftime.

>> whatever. i've left the engineering name for a long time. when you look at these name and the potential they've got, they had a great backlog they put in. when you look at the poe tech interesting valuation levels now, and this is with no stimulus. virtually no stimulus spending out there. is and yet these stocks continue to move to the upside. there's strength there. they're probably still cheaper than where they're really traiting. i know they've made a big move. it is i look forward now next week. that will be a biggy. but foster wheeler gave us the road map. i like what they did. that was presided by kbr last week so you got the direction. they beat them out from the government base. troop expansion in afghanistan. so fluor korp, again, valuation makes a good point.

it might be cheap at these levels. these stocks tend to scare me. i would take a wait and see approach. >> rick brought it up and i'm telling you, the volatile is where they are, if you're willing to jump into these stocks and you have great did i have denies, they've moved to the upside. it is cheap right now in relative terms. protect yourself. that way you can participate. >> time for the trade. add stocks hot once again. what they forecasted was a recovery in the second half for potash. and we hear from comary that we are hearing from name like mosaic, potash, they can no locker keep putting off the purchases of those fertilizers. eventually they'll to have come with their wallets in hand and start buying. >> absolutely. this is like baseball free agency when the yankee and the red sox are bidding up the wall. every one is raising the prices. what is it about? about improving potash, the fundamentals. beginning to turn in the second

half. the m&a has been phenomenal. it is it continues and that's why these are the names you have to look at. >> and it does give you an indication of what they think of themselves. they clearly think they're too cheap. across the board, all the names. if you can continue to see this. leapfrogging over each other, by each other. that tells you a little something deeper than most everybody interprets. >> let's talk about the trade. beginning of june, this was $118 stock. on july 4 -- 13th, bottoms out at 80-85. today closed 99.5. to the penny 50% correction of the move that i just talked about. what does that mean? if you feel the tape is getting a tad long in the tooth, potash might be worthy of the look. >> next trade here. the markets are waiting with baited breath for friday's jobless report. let's go back to the big sir sipping on his tea in the pits of chicago. what are we setting up for? >> i think we're setting up for

a dynamic we haven't seen in a while. i think the actual job loss could be less than expected. i don't think you're going to see a retrenchment in the actual unemployment percent. but i think the equity, the prozac trade has been that things are getting less aggressively bad. they're getting better in a second derivative fashion. the same is true about jobs. the challenger report still shows layoffs. just because we're moving closer to zero job loss is an entirely different matter than actually creating jobs. and i think the markets will figure that out on a good number. i think you have to sell the rally if stocks put forth the rally. >> i agree with you 100%. let's put in it actual trading term. over the last couple days, you've seen the shift. the expectations for this report. i'll tell you what. everyone now is putting the trade on thinking that this is going to be a better than expected report. the surprise, rick, i think is going to be if it come in, the same as it was back in july, not so hot. look out down below. do you agree?

>> i agree. if we get a surprise that is not as good, that's a good trade. probably equities go lower and some of the riskier stocks that moved higher go lower. if it is a good number and the unemployment rate is lateral to higher, that will put a kebosh on it. the overwhelming, consider this. deutsch bank put out a report. they said nearly 48% of all houses in america, 25 million, have the potential to be upside down where they owe more on their mortgage than the house is worth. that isn't a bad thing necessarily because it doesn't mean they will defall but it has a huge wealth affect implication. >> i saw that number, too. 41%. and the shocker again is conforming loans. so 41% conforming loans by 2011. >> by 2011. based on what assumptions to get through? >> that i don't know. >> one more quick question for you. what do you think this mean? what do you think the unemployment number will mean for the long end of the treasury?

>> i think the long end is of course going to find a little good news in a not so good report. i think the long end especially is going to be more vulnerable to supply and more vulnerable to strength in global equity markets. it is not going to be pretty when the safe haven exit doors open and everybody starts to run out at the same time. >> rick santelli, thanks so much. go back to your tea. in chicago. cut him off there. >> that's all right. he can talk even if he is not on camera. we want to know how bad the recession is getting? take a look at your waitress. >> what? >> your waitress. not your waiter. it is called the hot waitress index. restaurants get more desperate to do business and higher pretty young things who are now hunting for less glamorous work. they can't find work doing other things. >> the senior producer here came

up with that. watching your waitress. >> keep your eye on john. that was the word on the street. coming up next, data on the way for jcpenney's, macy's and all the rest. a report on where the ultra high net worth are putting their money. and an officer and now a businessman. general anthony zinni gives us the inside scoop on america's high stakes defense trade. plus, forget oil. the fast money in the future will be made in water. one of the ceos with his hand on the valve gives us the trade. he ran off with his secretary! she's 23 years old!

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we want to look at cisco systems. the stock is still lower by about 3%. right now the gross margins are 64%. we're keying in on the comary from john chambers, the ceo who to quote jim goldman in silicon valley gave some squishy

guidance. >> it is not an indictment of the company. we've loved cisco for a while. they're going well. they're running the business. >> people were expecting it to be gang busters. we sat here yesterday. everybody thought guidance would be optimistic. and we got squishy. >> this feels like microsoft a couple weeks ago. the release come out and you see the action there after. it feel like the same type. >> that was terrible. retailers closing up tomorrow. a back to school buying spree put an ento the consecutive declines we've seen over the last ten months or so. and certainly the rls, the retail index has quite a nice run of late. about 11%. the real thing is can it continue after these results? >> i think a lot of this is really baked in.

i know they have their inventories under much better control. this month isn't the most important month that we'll see in the year. and we don't see what walmart does. and walmart is the biggest retailer. will be an important part of that. they don't really monthly see store sales. i think the numbers will be decent. i don't think there is that much room for these stocks to run up. the multiples have expanded well ahead. >> we've got, i think gap is one of the names she lakes. i think gap is an interesting name but i agree with karen. masco was a big part of home depot. made an interesting part about a week ago, two weeks ago. a lot of where they got to where they are is cost cutting, cost cutting. we keep seeing it. it is not revenue growth. the home depot trade sets up interesting in terms of their valuation and what frank has done there. but retailers in general.

>> and back to school. walmart versus target. they're worried about what? key prices. if you look year on year, target has gotten much more aggressive in reducing prices. their prices are down about 4.5%. walmart less so. you have to see, will consumers gravitate to the deeper price cuts that you'll get at target for back to school? >> that's interesting. then you start to look at what ralph lauren did today and what whole foods did last night. the projections were 20 cents. they put up 25%. a year ago they put up 24 cents. they really did produce. cost cutting, yes, but the numbers were pretty impressive. if people are willing to step up to whole foods, maybe they're stepping up the rest as well. that's what makes it so interesting. >> i thought of you. i read about whole foods and it said it was putting out a value message. >> they're putting out to eat

healthier and value message. losing weight by eating whole foods. >> that is the health care report. eat healthy. diabetes. >> let's move. on aqua america drinking water in 13 states reported a 15% drop in profits. money going toward infrastructure. is water where you want to be? joining us on the fast line. nicholas, it is great to have you with us. >> how are you? >> i'm great. thanks. a big drive in your business is customers. you've seen that number drop. you've been very aquisitive. how has that combatted the loss in customers you've seen and have these actually added to your bottom line? >> we increased customers. mainly through acquisition. there are 50 oors small water company out there. we're one of the largest. and our competition are some of the municipalities which are financially not in shape now to start being aquisitive.

we're seeing our future in consolidating that may be small little company. >> are you seeing the impact of that stimulus money for infrastructure at all? >> absolutely. we're actually spending more this year than we ever have. $300 million in capital, putting in new pipes and new water plants. and we're getting quite a bit of it through stimulus funds. but we have an a-plus rating and very little trouble barring the money. as a matter of fact, our short line, which is about $150 million right now, we're borrowing at less than 1%. you're making a bet that things will turn around in the housing market to. a certain degree, i woz so. organic growth versus acquisition growth. how will you sort of weigh those two and measure those two? >> usually, organic growth is 1% to 2%. we've seen that drop below 1%, even in our fast growing states like texas, north carolina, florida. acquisition growth can be 2% to 3%. and if you can grow a product, a

company that has a product that has no alternative and basically, everybody needs and take a 4% unit growth on top of that, you're going to beat inflation hopefully every time. and that's for a lot of our growth comes from. we grow 11% on the top line. not many companies are saying that today. they're showing bottom line growth through cost cutting. we're showing our bottom line growth through top line growth. >> got to leave it there. from aqua america. is this an interesting stock? are there other water company out there to go for bigger play like a general electric? from this network. not a set-up, by the way. sfwh the water trade has been hot over the last couple years. there is no substitute for water. people have said it is the petroleum of the next century. you have to be selective. i've gotten burned doing these water trades so i've stepped to the side on them. going to move on for this week and this week only.

"fast money" is taking a momentary break to give you plays that could last for five years. we call it -- "slow money." you liked that. >> that's nice. >> who is this sponsored by?" slow money." >> it is so amusing. you're taking helm today. >> i'm not opposed to slow money. i know it is suppose to be fast money. the one i like, this is for the long term. pac. mexican airports is what it is. ten years ago, they privatized mexican airports. there are three big company. this is the largest of them. they own four of the top ten busiest airports in mexico and they have an interesting mix of business. they have a third of the business is international travelers, and two thirds is domestic travelers.

the way they make money is they get paid a passenger fee every time a passenger departs, they get paid a landing fee, they get paid cargo fees and they get paid from the retail space from building out these airports. so the thing that i really like about it, besides the balance sheet, which is superb and they have net cash so they can finance growth easily. the thing i like about it is the swine flu combination, which you got this year, combined with the economic collapse in the second quarter was horrific. i love that. because you're going to see growth in mexico the next five years. i don't know if we have a one-year chart. 55? i guess we don't. >> anyway. >> i can do it. the show asked me to do it. >> coming up next, the head of welds manage many at smith barney tells us the uberrich are fading. why the box of the stocks with

the list of tops and drops. >> we look at the stock lighting up screens across wall street today. founded in the 1930s as a small poultry business in chicago, this company is now the world's largest producer of meats. recently facing concerns over swine and avian flu. >> the same thing we saw with some of the other chicken processors back in the '80s flu situation. and it turned out if you took the chicken, it doesn't even matter. >> today the stock was more than just cooked. it was fried. shares dropped on a downgraded tea bag. a great deal gets even better. let us recycle your older vehicle, and you could qualify for an additional $3500 or $4500 cash back... on top of all other offers.. on a new, more fuel efficient chevy. your chevy dealer has more eligible models to choose from - more than ford, toyota, or honda. so save gas... and money... now during the chevy open house.

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live better. call or click today. it was among the most active names on the nyc today >> welcome back. here's what we've got coming up for you. the rise of the machine, a four star general tells us what futuristic weapons the pentagon is ordering and what company will profit from that. and we go trading after dark for play on news corps and how would you like to make $100 million in

a single day? we'll tell which you trading firm did that 46 times. 46 time last quarter. first an update on the conference call. jim goldman has the latest. >> by now you know the headlines from the details thus far. let me get you caught up to date on some of the new nuggets that are being shared on the call as we speak. the topic of gross margins has come up and it is being talk about the past ten minutes or so. john chambers was asked a pretty direct question on as far as what kind of pressure this company would be facing, as far as gross margins were concern. he was very clear. he says the ability to maintain margins the world class. he sees no pressure on margins moving forward. that is very good news. especially since the company was able to manage 65% in gross margins for its fourth fiscal quarter when when some were speakinging closer to 64%. as far as the regions around the world interesting company is noticing ongoing slowness in europe. john chambers says that europe

seems to be running a couple of quarters behind the rest of the world as far as any kind of recovery or at least signs of recovery are concerned. but he also wanted to remind us that remember, europe joined this sort of slow-down, this recession, depression, depending on your perspective, a couple quarters later than everyone so it stands to reason that they are dragging as far as recovery is concerned. one of the analysts asked whether the company is seeing very early signs of month to month order acceleration. john chambers says the trends are absolutely in a positive scenario and he hopes to see them continue. so again, seeing that optimistic tune for the company and it is continuing for the duration of this call. >> jim goldman. thanks so much. trying to sing an optimistic tune. as a bell we thinker probably dragging the terms. of course the concern about margins, jim had mentioned world

possibility to keep margin. we'll keep an eye on that for and you keep you updated. next trade, you may be tempted by this rally. before you drop back in, you may want to hear. this barney is an adviser for ultra high net worth families. he tell us about how they are managing the market. >> great to be here. >> what are you seeing in terms of allocation? >> well, the ultra high net worth investor was really taken back by a lot of things that happen last year. they became very nervous and they lost confidence in the financial markets and the whole system themselves got very defensive. so basically, what we got very conservative. we went into fixed income. right now we're still in equities but also went into corporate bonds, high yield

bonds, investment rate bonds and doing right well. >> so mark, let me ask you. how many of your customers -- how many of your clients are actually calling you up, saying give me exposure to inflation. give me the gold trade. give me thee merging mark markets trade. that seems to be the thing where everyone would be over. >> a lot of my clients are concerned about inflation, the dollar, and they are concerned about actually even -- we're looking to put them in a position where they can protect themselves on inflation and participate in the market right now. but you know, when your high net worth investor, they think, their mindset is you win by not losing. the number one rule of thumb is protection of principal. >> thank you. time for today's edition of pops and drops. we kick it off with a big pop. aig up 63%.

>> rerngz coming out on friday. huge, huge volume. john was talking about, he was talking about that. something is going on at aig. >> short, short squeeze. >> absolutely. garmin was atop. >> revenues were in line. another company that is being more productive, but folks, it only lasts so long. all the short squeeze, huge volume day would not be chasing garmin. >> up 7%. >> put in a very nice quarter. they had strength in the international business as well. i don't know if this is a gauge for what we'll see tomorrow but the stocks had a good day. what can i say? a very nice job. >> jack in the box was up 6%. no mickey d's.

>> they started off somewhat strong and then weaker toward the end. but they raised the whole end guidance. that's what people got excited. about you look at them. they're the cheapest in the industry. look at mcdocumented's, burger king. they stand out. >> we got a pop for bubba. bill clinton, successfully negotiating with kim jong-il. bubba orchestrated the women's return home after they were arrested more than four months ago near the korean chinese border while working for current tv and sentenced to 12 years of hard labor. great off the you back home, laura and euna. >> and bubba, if you're watching, karen finerman has a crush out. >> bubba has a lot of pops. >> we'll leave that there. coming up next, higher tech, lower costs. a four star general breaks down

the technology that will help fight future wars and the companies behind it.

even though russian nuclear subs are lining up, the fact is the cold war is over. why is the u.s. government still spending like the soviets are coming? just last week interesting house relit another $600 billion for defense. while some spending on old

technology, like the f-22, remains, what is next in military might? it's leaner, meaner, and cheaper. if for unmanned surveillance in the task zone, the fire walls against cyberterror attacks. who is building these weapons of the future? we're going directly to the front line to find out. a four-star general and former commander in chief of the u.s. central command lays out the next line of attack. and he fines the money in the future of military tests. >> joining us now, author of leading the charge, known as the godfather. we'll get that story a little later. on first of all, from your vantage point as the head of bae right now, you know, all of the countries out there, they have limited pies.?ñ are you seeing a bigger piece of that pie allocated toward

nontraditional weapon at this point? >> i think you're seeing a shift into intelligence areas. information management, cybersecurity, some of those kinds of high-tech analytical bases. some of the major programs being canceled. we've sustain f-22, the future combat system. i think we're probably still seeing investment, not high-tech, very expensive. but i think all of us in the defense industry are waiting to see where dod will go. they're in the process of the quad rent ral defense review. >> what is your sense right now as to whether the bug will be increased and what you will see by way of intelligence cybersecurity aspect? >> i don't think it will increase. i think it is a flat budget. maybe slightly declined. for all the defense company, it is important to stay balanced. if you have too much invested, you can be in trouble. it is important to be diversified across the international defense market. you're an international market with home markets, you're better positioned and i think you'll see much more investment in

those things, intelligence, cybersecurity, hybrid energy, those kinds of things that lead to maybe more technology. >> i don't think you can discount homeland security eat. and i go to a company like l-3 communications. i'll sure you're familiar with that. these guys, a great company that nobody ever talks about. valuations, very fair. you want a cheap homeland security, i think lll gets through. there are a lot of big name. what smith and wesson did is a very interesting homeland play. you see what that stock has done. i'm with you 100%. lll is where i would go. >> we have to ask you this. what is on it there that we don't know that could derail the domestic general of obama? i know you were a special envoy to the middle east in 2002. as an oil trader, i have concerns about the situation in iran. what is out there? >> that would be my biggest concern. if it heads toward developing some sort of weaponized nuclear capability, obviously, this is an existential threat to israel.

we have red lines as to how far this could go. it could be very disruptive. obviously a conflict in that part of the world economically, it causes great problems. energy resources, not just oil but natural gas. >> general, a pleasure to have you with us. i hope you will come back. the godfather is the author of a new book call leading the charge. general anthony zinni. don't go anywhere. we'll have tomorrow's first move in media stocks when we go trading after the dark. 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.

you hear the music, it means one thing. maybe two. cybertrading after dark. myspace reported earning today after earning. the stock traded slightly higher. what do you do tomorrow? zach joins us. >> love the music. given the weather outside, it is more like trading before thunderstorms. in the case of news corps, it is trading during thorl. it is very interesting to look at because it gives us this read on cable to tv. what is interesting some of the revenues are down 50%, 60%, including tvs and newspapers. not a big surprise. but cable tv way very strong which is well for that one unit of the aforesaid apparent company of the network.

but it does point you to interesting direction where you would want to trade. i think the weakness of myspace which was a huge write-off and their inability to be on the internet is quite good for something like google and it will be good if facebook ever has an ito. i use it into an interesting read into other sectors. i'm not interested in trading with the lows that i am not entirely sure of. >> the headline had. struck me, news korp is planning to charge online for all news sites which seem very telling, that they can't make money by selling as. >> they've been the only one with the "wall street journal" to make money charging for content onloin which does suggest someone can do that do have this and profit from it. and they clearly have. >> thanks for being with us. he ran off with his secretary! she's 23 years old!

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the top spot is goldman sachs traders. according to a new report, they had a record friction $100 million trading days in the second quarter break record, a high of 34 days. goldman made at least $50 million. 89% of the trading days. >> like groundhog day. >> a quick programming note. do not miss ken, larry's guest at 7:00 p.m. tonight. final trade? >> we talk a lot about the short squeeze. look at when it is over and play

from the short side. >> do you like the cell phone world? you have to like since aptic. >> thanks for watching. tomorrow back here 5:00 p.m. eastern for more "fast money." 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".

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welcome to "mad money." other people want to make friend? i'm trying to make you some money. my job not just to educate but to entertain. so call me. first, the market went down and actually stayed down. the dow lost 39 points will s&p closing down 4. we could pin the blame for the sell-off on that miserable quarter from proctor and gamble. or maybe some big bad economic null.

but upsets bull or worries about friday's unemployment report. but all those explanations frankly missed the big picture. you see the real problem, it's rooted in spelling. specifically the spelling of the word recovery. we got a strange set of letters tonight that's not responding to spell check. in fact, it doesn't even lend itself to acronyms. yet it was at the heart of the selling we saw today. the letters that were all hung up on? l-u-v-m-w-. it's a we're way to spell recovery. probably beyond the ken even of the wife. it is what drove the market nuts. you see luvmw is the key to the market's future direction.