>> you can see transports doing very well today. one of the best days we've seen in transport ins quite a while. as the railroads, the trucking companies, even the shipping companies like fedex all doing nicely. here's something you haven't seen for a long time, folks. commodity stocks are up even as the dollar is stronger. even commodities are a little better. that hasn't happened. that's a real break here. keep an eye on that. here's all the big names all to the up side. finally, better commentary from two financial outliers from cit as well as aig. aig had a very good earnings report this morning. that's allayed a lot of concerns. they're up nicely. some of the big banks also having a great week as well. tradertalk.cnbc.com. mike, what about the nasdaq? >> it's been a little up and down session so far today. right now we're up obviously. if we hold here, we'll close out a four-week performance at the nasdaq where it's risen 14%. that will be the best four-week performance in as many months. not everything is in rally mode

today. shares of the big biotech company genzyme hitting a new intraday low. goldman sachs putting on the dreaded so-called conviction sell list. on the up side, because of earnings, graphics chips maker invidia hitting a new intraday high as well as kroks. i know people say the shoes are a fad, but it's up 30% with the company saying it's going to return to profitability next year. >> pisani really hit the nail on the head here. when it comes to commodities, there's such a push and pull between the dollar and the equity market. for a while here, oil was in lock step with the s&p 500. s&p 500 is way up today, and oil isn't. why? there's a stronger dollar. oil is up 3 cents. obviously, the bulls and the bears are having it out, and it's flat. i wanted to say basically the volumes are kind of light. going to see a lot of volatility. one nugget is chevron. found some oil and gas in angola. quick look at nat gas and heating oil. nat gas is well below $4,

strongest in the complex. heating oil down a little bit, affected by the stronger dollar. let's go to mr. santelli in chicago.w >> thanks, shac.w a fascinating day. let's look at how everything is shaping up on the week. not nearly as bad you would think watching the aggressive markets today. euro is down a bit on the week, but not much, even though it's down a boatload today. if you look at the pound versus dollar, a very similar scenario. their central banks met just yesterday. here's the home run the dollar is really kicking button, and that's the yen. look at the dollar-yen over the week. closed around $94.50. up right now, last price $97.77. big move, last chart. interest rates up big too. close to 40 basis points on the week. bill, back to you. >> rick, thank you very much. what a day. let's get to the latest employment report that's causing all the action today. job losses slowed last month. 247,000 positions lost in july,

below the 275,000 many economists had been expecting. but it still makes it the 19 consecutive month of job losses. revisions slightly higher for may and june. 43,000 added to the payrolls for the two months. the unemployment rate fell to 9.4%. economists were looking for it to rise to 9.7. is this the beginning of the end for the recession, we ask? if it is, will it be a v-shaped recovery? w-shaped recovery? are we in a hockey stick mode? steve liesman is up in maine, where they're all downbeat for some reason. you guys need to come back down here. we're all exuberant. >> it's amazing the atmosphere is not coloring the forecast even just a little bit, bill. but joining me now, among the 35 economists, investment managers, and hedge fund runners are bob

eisenbach, formerly of the federal reserve, worked at the board. you were doing a little fishing, bouncing along the bottom. analogy for where you think the economy is going. >> we were fishing for salmon. we were 80 feet down and bouncing along the bottom. i think that's probably about where we are at this point. at least we're not going deeper. >> tell us how you think the federal reserve is going to process this information today of somewhat better than expected results and the improvement in the jobs number. >> i think the real issue there is what does that do to the forecast? we know that the forecast was looking for a recovery, or at least beginning to be a pickup in the second half of the year. when you see the jobs numbers flowing like that, i think that confirms their outlook. they'll feel a lot better about it. >> i know you were with the fed. what do you think right now of the fed's ability to get out of this in time? do you think inflation from the current stimulus is a foregone conclusion? no way the fed can pivot at the right time? >> i think they have a real

challenge on their hands. there's no question about it. you're going to have a slowing housing market. you're still going to have high unemployment. probably not a lot of signs of inflation. and that's going to be a tough sell to try to raise interest rates. everybody politically is going to be on fire. >> does anybody have -- are you guys at all talking about the impact the stimulus packages had at this point? we talked about this the other day. there is no answer, obviously, because we could never go back again. if there had been no stimulus package, what do you think the jobless rate would be now, and what would we be talking about in the economy? >> i think, when you look at 9% of the stimulus money has filtered its way into the economy so far, i think what you're looking at is primarily the results of the federal reserve's interest rate policy as distinct from measurable impacts from the stimulus to date. >> so the fact that they've kept rates low has had a greater

impact on all the money the government has been spending here, you think? >> absolutely. the government hasn't spent all that much money is the point relative to what they're intending to. >> if you hear bernanke talk, you can see that one of his concerns, by the way, are the fiscal deficits down the road. if you're one guy who's driving a car and you have one engine and all of a sudden somebody's operating yet another engine or at least another gas pedal, which is washington and the fiscal authority, then you have to worry about that. one of the things that's clear -- and maybe bob wants to comment on this -- is some of the stimulus is going to kick in next year. half of the stimulus next year. is that the wrong time? >> well, it's, i think, going to be risky because you're going to pile a lot more financing for federal debt on top of a potentially recovering economy at a time when you might want to start tightening. that's going to make it tough. >> bob and steve, back here there's a lot of talk about what jan was saying, maybe companies went overboard when they cut

employment, and there's going to be a spring back in employment the same way we saw this inventory reduction that was so dramatic. and now they're going to have to replace all that inventory, which leads some to believe maybe there is a possibility of a u-shaped or v-shaped recovery. are you guys discounting that? >> i think a lot of people are discounting it. because, really, what you're concerned about is, first, to rebuild the inventory. then demand has got to come back. i don't see consumer spending coming back. at the kind of rates that would justify -- >> you've got to hire people to reduce that inventory. doesn't it reduce the demand? >> i think they've got excess capacity they can still expand. with improvements in productivity, they're going to be awfully cautious about adding to employment. >> michelle, let me point out what you're talking about is the kind of behavior that economists have a very hard time modeling. these guys plug numbers into models, and they spit out forecasts. what you're talking about is the

panic firing that happens. i've been talking about for months was the possibility of people bringing workers back in much more quickly than expected. it's a very difficult thing to model. i don't think the economists are going to give you that answer. >> steve, i think another thing is the nfib survey does not show a willingness to hire yet. at the levels that would create the kind of jobs, and that's where the real engine for job creation is. small business. not big business. >> bob, thank you for joining us. i appreciate it very much. steve, we'll let you get back to your busy day there. >> hard work. hard work. >> we all feel for you at this point. thank you. >> finally going to get to do a little fishing. anyway, after six losing quarters in a row and more than $180 billion in bailout money, aig managing to report a profit, and a better profit than the street was expecting. cnbc's matt nesto is on earnings central, and he has the details. >> by a while. this is great. this is one of our core holdings in the uncle sam fun. we own 80% o@p.

week. in the past month. if you zip it out to a year ago, you're still down 100%. ed liddy, the ceo, saying business is tough out there. we see some stabilization, but we're going to continue to see volatility for several quarters to come. aig in the short term, our 80% darling holding as u.s. taxpayers trying to get back in the green. back to you guys. >> thank you, matt. see you later. with all the green we're seeing today, investors obviously like

what they see in the jobs number. is it time to take profits off the table or time to jump in? task force time coming up here. >> and also this hour, we're going to speak with two mayors, who are doing whatever it takes to grow jobs in their cities, and it's working. plus congress slammed wall street and the auto ceos for using private jets. now congress itself plans to spend $500 million on eight new jets for themselves. should taxpayers be outraged? >> what about the stimulus factor? >>s that a good question. get ready for the "fast money" halftime report. the traders reveal the sectors and stocks with the momentum to move higher. 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".

an incredibly busy week for media earnings, and maybe indications that tv advertising spending is on the verge of a come back. julia boorsten joins us live from details. >> there's plenty of optimism advertising will come back the next six months. broad sales are down across the board. sources tell me nbc will sell between 15% to 20% fewer up front ads, a decline they say is in line with the market. pricing is down an estimated 2% to 7% across the networks but also because networks are

withholding inventory to sell later, hoping to take advantage of economic and advertising recovery. >> in this type of economy that's sluggish, and there's not that much demand during the up front, they can create demand by holding inventory back and then counting on a stronger marketplace going forward as the season progresses. >> yesterday cbs ceo les moonves said prices are returning in the third quarter, calling the pricing truly phenomenal. becky, moonves says the trends he's seeing right now bode very well for the rest of the year and into next year. >> julia boorstin, thank you. if you've been following the markets, the dow and s&p followed the year's highs following the better than estimated jobs report. is now the time to jump in or step out of stocks? let's gather the power force team together. joining us is jeff, the chief

investment officer at rieman financial. jeff, market thinking this is greet news. we're still looking at a growing number of lost jobs. what's the market seeing? are you convinced this could be the turn? >> i'm saying we're cautiously optimistic this could be somewhat of a turn. we still have a significantly high unemployment rate. in our markets, where we rely heavily on consumer spending. we need to be cautious if we're getting back in there. we're not necessarily out of the woods, but this is certainly a step in the right direction. >> somebody that's seep this huge move. gotten economic day to support it perhaps. what do you do right here if you've got a lot of big profits after this run-up? >> i don't think you necessarily want to do profit taking. there is still some momentum and positive impact that i think can be in the domestic markets. our expectation is maybe a little more of a sideways movement between now and the end of the year. specifically focusing on the technology sectors and the large cap sector, both value and growth.

we do see those as positive locations to be. >> also joining us from chicago is kevin ferry, cnbc market analyst. kevin, what i'm going to ask you about is this movement in the dollar today. lately the dollar had moved in the opposite direction of the stock market and the economic data. even as we saw day thta come ou that suggested growth in the economy or a less bad economy, the dollar was going lower. now it's getting strong again and moving in lockstep with the economy and the stocks. is that going to last? >> that would be a good thing. i think that's the real storied too. you would think that a trade that was that oversubscribed would have to unwind itself with a more negative impact than we're seeing right now. we're getting probably the best possible response, which is marginally higher rates, but the stock market holding in and the dollar doing better. actually, longer term, this is a better situation than the play that people are involved in. >> you sound a heck of a lot more positive than you did earlier this morning. you were concerned at that point.

>> definitely, becky. i'm marginally impressed, and i'm not easily impressed that you can have a trade that that's crowded, and so far people will be able to exit it in an orderly fashion. i think it's a good thing. we'll see. i would still say, as a micro, in the trading environment, the s&p run is probably in 72 hours. you know, usually by monday or tuesday it winds down a little bit. >> thanks, guys. have a good weekend. we'll see you later. straight ahead, you know that jobs number that was out there, it was better than expected. we've still got plenty of cities, though, that are hurting. but not every place is bleeding jobs right now. you're going to meet two mayors who are doing whatever it takes to grow jobs in their cities, and it's working. they'll tell you our secret. >> and we'll reveal who those mayors are in just ai moment. at 1:30 eastern, president obama heads out to the rose garden to talk about the economy and the jobs number. we'll provide that for you live.

imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full. the scooter store. hi i'm dan weston. we're experts at getting you the scooter or power chair you need. in fact, if we pre-qualify you for medicare

reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for free information. incredible market action today in the wake of the better than expected monthly jobs report. industrials cut to 9400 earlier. 129 is the gain, 1.4%.

new high for the dow, new high for the s&p 500 for 2009. unbelievable action in currencies as well. two yen move in the dollar. as you can imagine, treasuries are getting clocked as well. >> treasury clocked being a technical term in the treasuries department, by the way. so where are the jobs across america right now, and what are cities doing to lure and retain workers? our next two guests are growing jobs to great success in their cities. let's meet the mayors of two cities. mayor chuck reed of san jose, california, the third largest city in the golden state, the tenth largest in the country. it is home to over 1 million residents. 250,000 of them employed at technology firms, including cisco, ibm, and ebay. also with us today, mayor allen mcgraw of round rock, texas, the second fastest growing city in america. with a population of over 92,000, round rock is best known as the home of dell, but they also have employers like cyprus

semiconductor, farmers insurance, and cisco food service. mayors, thank you for joining us this morning, sirs. mayor reed, what are you doing to grow jobs in san jose right now? >> we've got to make sure our tech companies that have sprouted here stay here and grow here. we have to be the best place in the world to start and grow a business. we have to work at the speed of business to make sure, when these companies get the opportunity to expand, they do it right here in san jose. >> how do you do that? with tax cuts, incentives? zb >> we don't have a lot to work with for incentives and tax cuts. it is california. these companies want to be here in silicon valley, where the innovation is. sometimes it's making sure they get their permits on time, and we're ready to go. sometimes working at the state government level or national level to make sure they get funding. >> mayor mcgraw, what are you doing to grow jobs in round rock? >> in all honesty, it's not about decisions we made today. it's about decisions we made

over the past couple of decades. our citizens have told us we want a good strong city. we want low taxes, good mobility. and so the decisions that we've been making over the past number of years to get us to this point, we're not having to do a whole lot different now. being the home of dell computer, i mean, they are a huge percentage of our economy, and we recognized a long time ago there's the possibility that -- you know, that we need to diversify, that we can't rely strictly on dell. we're branching out into healthcare and education at this time. >> mayor mcgraw, when you talk to dell, i know they do a lot of manufacturing overseas. you're one of those cities that has to face that battle of jobs going overseas because employment is cheaper. what do you do in order to combat that? >> actually, not. we're not a manufacturing facility for dell. we're the world headquarters. so this is where corporate office,. and the benefit for round rock has been we cut a deal with dell back in the early '90s, and we

agreed to sell some of the sales tax that they generate. so now for the city of round rock, that's upwards of $20 million a year of sales tax that we collect simply from dell. but the manufacturing doesn't really affect us. >> okay. you know, just to follow up on that, mayor mcgraw, you mentioned lower taxes. if you look at your property taxes, they are one of the lowest in the nation, but your sales tax is up there at 8.25%. is it your experience that you can tax people on the sales taxes but you really can't go after them when it comes to property taxes? >> well, you have to have the right combination. our citizens have actually voted to increase taxes a couple times. one of the most successful ones is the citizens actually voted a .5 cent sales tax increase in the '90s strictly for road improvemen improvements. and we've been able to leverage that sales tax in over $500

million in road improvements. that directly affects the quality of life here. >> mayor reed, what's your biggest challenge now, other than being in california? we know the fiscal problems there, and we're certainly not going to make light of that. but beyond that, what is your biggest challenge in trying to attract businesses to your city? >> the crash of the capital markets last year put a big dent in what we were able to do. we have companies with real products, real profits that want to expand and create new jobs who have not been able to do that because the capital markets have not been able to fund them. we're working on department of energy for loan guarantees on solar companies and clean tech companies. some of them are going to get the money. we're working on plans for factories to create new jobs. that's the key thing now is the national economy. but the capital market have been really difficult for our companies to deal with who really do want to expand right here. >> are you able to rely on the federal government at all for any funding? weren't you one of the mayors that famously went after some t.a.r.p. money last year? >> i'm going after every money

that's available. if t.a.r.p. money is available, we're going to get a piece of that. we're going to get a piece of the stimulus funding, and we're working with the federal government to make sure the department of energy funds the programs that are there already to keep the companies moving. we have companies such as nano solar that sold out their production capacity for four years. they'd like to build another factory. the capital markets haven't made it possible. the doe loan guarantees will be critical to do that. >> get the capital markets moving will help as well. we appreciate your time, gentlemen, and continued success in your respective cities. thanks for joining us today. north dakota has the lowest unemployment rate in the country at 4.2%. that state's governor will join erin burnett on "street signs" to tell us what's going on. congress plans to spend $500 million of your money on eight new jets for themselves. this is the same congress that rips corporate jet use by companies xweting taxpayer money. who of you, raise your hand, came here today in a private

jet, and are you willing to sell it? is this a legitimate expense for congressional travel? we're going to have a power grid debate where you can be sure the sparks are going to fly. >> that one's going to be hot. coming up at 12:45 eastern time, get ready for the "fast money" halftime report. melissa, what do you have today? >> lots to talk about today. we'll hit the charts and see where the financials are headed. this has been a leadership group in the markets. you thought the action yesterday was with retailers. next week a big week for retailer earnings. we'll take our positions ahead the slough of earnings we're expecting. that and much more on the halftime report. welcome to the now network. right now five co-workers are working from the road using a mifi, a mobile hotspot that provides up to five shared wifi connections. two are downloading the final final revised final presentation. - one just got an e-mail. - what?! - huh? - it's being revised again. the co-pilot is on mapquest. - ( rock music playing ) - and tom is streaming meeting psych-up music from meltedmetal.com. that's happening now with the new mifi from sprint, the mobile hotspot that fits in your pocket. sprint. the now network.

deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com.

we are almost halfway through the trading day. in the headlines at this hour, shares of urban outfitters moving higher. they upgraded to an equal weight by barclay's capital. and merck's shareholders have ore whellingly approved the drug maker's plan to merge with schering plough. also, airline stocks flying higher right now. new data showing that monthly traffic trends are improving. congress is upgrading its aviation fleet to the tune of $500 million. this is just months after bashing companies for their

purchase of private jets. should they have spent the money? battling it out in our power grid are democratic strategists julian epstein and christina moore with "the wall street journal" editorial board. you know how it works. 20 seconds each. steve moore, let me start with you. what do you think of the guys who yelled at the automakers for coming in the private jets, and they're asking for more than the department of defense asked for. >> i want to hear julian's defense. i don't think it is defensible when they go after corporate ceos and do the same things themselves, julian, i think they look hypocritical. >> wow, he did that in like eight seconds. julian, i'll give you extra. >> in the interest of full disclosure, my firm does work for the private aviation industry. i'm not totally unbiased here. i think congress' decision was the right decision. c-37s are replacing the c-20s, which are half as expensive to operate. 85% to 90% of the time the planes are used by the air force, 15% by the congress. they're much, much cheaper to

operate. it's very similar -- if i could just go on to the business jet issue. the private aviation, every single study that has looked at prif aviation has shown that these are incredibly cost effective and smart business decisions for private -- >> congress never should have yelled at the automakers in the first place for using them? >> i'm biased here. i work in the industry. >> we put you on here because you're bias. >> hundreds of thousands of businesses rely on private aviation because commercial airlines, as good of an industry as it may be, do not service many routes. they have highly restricted routes, highly restricted schedules. >> julian, i agree with you. i have no problem with private companies using private jets when it's an efficient thing to do, as you described. i think the issue here, though, is that for those times -- and by the way, i don't have a problem with the military using these jets either. i do think there's something unseemly -- and almost

arrogant -- of members of congress thinking they can jet set around the country and the world on private jets at a time when we're in a fiscal crisis. we're running a $2 trillion deficit. we've seen from news reports over the last six months that a lot of these junkets that congress is taking are very questionable as to whether they're in the public interest at all. >> new topic. president obama, some people think he kind of front-ran -- is that the proper use of the word -- employment numbers when he made a speech yesterday saying we're losing jobs at half the rate we were at the beginning thf year. did he kind of leak the employment data we got this morning, julian? is that a good thing or a bad thing? >> i hope he did. i think that is good news. unemployment numbers have been getting better for months now. number of unemployment is half of what it was several months ago. all the economic indicators show the stimulus plan is working. we've gone from minus 6% growth and in a positive growth now. $58 billion of the tax cuts are working. stimulus money is working.

clearly steve has to -- as fair a guy as he is, steve has to admit the stimulus plan is starting to work. >> he leaks the numbers, and should he have? >> i don't know. i don't think the numbers were necessarily leaked. we knew from some of the jobless claims numbers we were going to get a better number on the unemployment. look, julian, we're losing 250,000 jobs a month, a quarter million jobs, i hardly think this is good news. we've got record high unemployment rates. they're as high as they've been in 50 years. the economy is improving, no question about it wrb but i don't think this is the kind of unemployment report that anybody should be trumpeting. >> steve, in fairness, you would admit that just months ago we were looking at 700,000 job losses in a month. we've cut that more than in half. that's good news. all the trends are in a good direction. economic growth is getting better. business investment issing better. give obama some credit here. >> just to replace the workers

coming in the work force, we have to create 100,000 to 150,000 numbers a month. that's a number that robert reich used to tell me every month. >> admit that it's working. >> bye. ed good discussion. play the music. >> takes them that long to get warmed up, and then they don't want to stop. we are back on twitter patrol. we told you the other day how the nfl is discouraging players from twitering. get this. the new york jets are doing the exact opposite. they've even hired a social media intern to school the players, whatever that is. we're not making this up. darren rovell will explain in a moment. >> is that not the greatest job? teenager to teach football players how to use the computer. and president obama speaking out on the economy and the jobs number in just about 45 minutes or so. we'll carry that live for you when it happens. announcer: some people buy a car based on the deal they get. others buy the car of their dreams. 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 is 250. recently turned 65. glad he's now got medicare on his side. but jack knows that medicare part b covers only... 80% of medical expenses.

so, he got himself an aarp... medicare supplement insurance plan -- insured by unitedhealthcare insurance company. a medicare supplement plan... lets you to keep your own doctor, helps you budget medical costs, and it picks up some of that 20%, potentially saving you thousands of dollars... out of your own pocket. if you're turning 65, or are 65 already, call now for this free information kit... and medicare guide. learn more about aarp medicare supplement insurance, and its wide range of coverage options, competitive pricing, and, plans that travel with you nationwide. so call now, just like jack and millions of others have done. because when it comes to medicare, we should all be on a roll. call now for your free information kit... and medicare guide. ♪

dow up 140 points. darren's got a nice tie. we've been talking a lot about twitter the last couple of days. it's been a mixed bag in the sports world. a lot of press about the nfl teams who were warning their players about what they can tweet, and the team is discouraging the media from using the site. now, the new york jets, they're all atwitter over twitter. our darren rovell is here with that story. they take the totally opposite

position, right? >> let me explain this whole thing. over the last cup of days, there's been this perception of a crackdown, especially given the news that nine nfl teams were barring the media from tweeting at practice. the new york jets are embracing the social media site. they're coming up with a social curriculum for of the players encouraging them to communicate with their fans and further humanize the players. it's the message, it's not the medium. they've actually hired a social media intern to help the players get into twitter or post whatever they want. the jets currently have eight players tweeting, as well as their owner woody johnson. rookie quarterback mark sanchez leading all jets in terms of number of followers. johnson at about 1,500. the best tweeter may be jay feely, their kicker, who said the other day his 8-year-old daughter is fascinated her daddy takes naps. the rules for the players basically are -- this is what the nfl is stressing. they're not saying no twitter.

they're saying don't be stupid. don't say something you wouldn't tell a reporter. as for reporters, the same rules apply. on practices, you can't tweet about trick plays or special deployments. it's not about the league. >> don't be stupid. that's like a very wide parameter. stupid can walk any way. >> don't be an idiot. don't do something stupid. if you're an nfl player, you can tweet. >> woe got it. and that is a nice tie, by the way. still ahead, cooking up profits. we're going to talk earnings and consumer spending with the ceo of california pizza kitchen. plus the ceo of direct edge. >> on flash trading. can't wait for that. when i trade, i want a straightforward price. they lure you in with a $5.99 trade, then charge you 15 bucks. you get a low price, but only if you make a ton of trades. at td ameritrade, every online stock trade is just $9.99. period. no matter how often you trade. no matter how much money you have in the account. i hate those hidden fees buried in the fine print.

surprise! it's a maintenance fee! i hate surprises. at td ameritrade, you never pay a maintenance fee. you get low, straightforward pricing, so you always know exactly what you're paying. hey, that works for me. are you ready to declare your independence? independence is the spirit that drives america's most successful investors. announcer: trade commission-free for 30 days plus get $100 cash when you open an account.

welcome to fast money halftime report. the highs of the day as traders jump back into this market feet first. positive jobs seem to confirm the rally is for real. let's get to the word on the street. fast money crew today. brian kelly of conundrum. steve grasso of stuart fran kel. grasso, want to start off with you. the whisper number yesterday on the desk. is it really a surprise -- it's amazing because there shouldn't be this element of surprise, and yet there is given the market reaction. >> everybody was surprised at the number except for goadman and the president of the united states. i think at this point people were just -- they love the fact it had a little bit of conviction. it felt good or better, i should say, about going long into the

weekend, and shorts felt they had to cover. i was talking to hedge funds yesterday. do you think i should be short coming into today? i said absolutely not. >> what steve was referring to is goldman sachs revising midsession their forecast of a loss of 50 k. they were right on the money. we're seeing a mix of volatility being sucked out of this market. >> before this week, volatility was bid up. traders going out and buying protection against the dollar moving on the market. i like seeing that type of action because any kind of pullback on market, people are protected. they can get in by the market, and the market can push higher. you're seeing the volatility come out of the market. that was expected. market is moving around 1%. occasionally on a jobs report like this, you get a 1.5% move in the market. we're not as volatile times as before. that's a good sign for the economy. you can start to take more risks and get in and buy stocks. >> bill, what do you make of the charts here? the s&p up nicely up to 1013 right now. grasso, i understand, e-mailed bill griffeth yesterday night

and said 1015. i don't know what he knew. bill, what are you seeing in the shots? >> it was me, goldman, and president who knew. didn't you get the memo? >> three's company. bill, go ahead. >> the game plan hasn't changed. i talked about the s&p going to 1000 in may. we've hit that. last couple of weeks, look for another leg to the upside, 1100, 1150. that's where we're headed. across be board, dow, s&p, and nasdaq, another 10% to 12% to go in this rally. stay long and continue to look for places to buy. >> brian kelly, what do you make of this rally? pretty broad participation. when i'm looking at my screen, the one group that's not participating, the semiconductors. that really led the tech sector higher way back when. not participating. didn't participate yesterday. what's going on there? >> i think with the semiconductors, they do an awful lot of business overseas. you've got to look at the dollar. for me, that's really the big story today. for the last year, when we talked about the dollar, we've talked about risk aversion versus risk taking. market goes up. dollar goes down. that's changed today.

market's up, and the dollar's up. there's a fundamental change here. market players saying, hey, wait a second. maybe there's going to be a change in interest rate differential. and you're also seeing like procter & gamble and coke underperforming because they have a big portion of revenues come from overseas. >> we heard that in the earnings report as well. want to bring the viewers up to date on the s&p 500. we are hitting -- we're up 50% from our march lows. historic level here for the s&p 500. 1013 again is the level today. we're watching that for you. let's move on to financials. that's another group topping the tape today. citi surging 8%, over $4 a share. aig continuing its staggering run. for the week, aig has doubled after posting its first profit in two years. let's talk citi, though, first. aig, a lot of people are saying that's a short squeeze. grasso, what do you make, though, of citi? we had cramer recommending to buy citigroup. seems like the tide has changed on this one. >> i think people thought

citigroup was susceptible to a government breakup and selling off the parts. now people are starting to look at citigroup as maybe i could put it into my child's college fund. maybe i could put it away and maybe it will be a team stock in the next couple of years. definitely more attractiveness to citigroup. >> by the way, citi at $4.15 or so, it becomes margin eligible when it crosses $5. and also institutions more likely to pick up this stock. nearing that level now. phil, you're watching the xl up. the etfs attractive figes. you're noticing a nice breakout here. >> we've looked at this chart a couple of times in the past. it's been very telling. before we focused on the fact that the xlf was caught between the 1113 range. i said look for the market to break out. my feeling was the break was going to be to the upside. i was bullish on the broader market. that's exactly what's happened. next stop on the xlf is 1550. i don't think that's the end. i think we're going to go back to the scene of the crime, so té speak, where the market broke down in the fall of market bro

down. 17 to $18. it would be going to the upside. >> just quickly, are you seeing in the options markets and are people bullish or buying the protection? >> when you are talking about the financials, it's a name like wells fargo. we saw a lot of protection going on and you see the stocks move higher. i like seeing them protect the bets going on. it told me that people are cover and i think i think they have a leg up and they are breaking out of the pattern they had and look it go higher. >> let's move on to the next trade. we got a rash of earnings from macy's nordstrom and wal-mart. let's go to dr. j on the fast line with the trades ahead of the numbers. doctor j, retail stock his quite a nice run. what do you do here? >> the consumer of course is not dead. this proves it. i mean take a look at the

charts. you see fossil or macy's and liz claiborne and cole's that are great stocks and the moves have been spectacular, but the ones i would focus are are the following week. tj maxx which is the 800 pound gorilla. up 72% year to date and city trends and up 106%. arrow postal. the best picks in the space especially because of the betweens and teens are arrow postal, aro and bke. >> do you buy it out right? >> you do. i'm doing both. ahead of the earnings, these earnings are going to be august expirations. they are a week after next week. august 17th through 21st. those days i will be buying calls if i see unusual buying

activity or if it's bad activity. i think we will get a positive pop. we have seen the numbers and same store sales all look good for those four. >> thanks for your time. let's talk about the home builders today. dr horton getting added to the conviction buy list. better than expected job numbers. brian kelly, do you go into the stocks that had been a trading vehicle not to go ago? >> i like the idea, but they are up so much right now. i just can't bring myself to get into them. on pull backs i am a buyer. if you look at the rail car loadings and you look at the stone loading, those are big numbers starting to turn up. i prefer to go into cement. you look at kht or something like that. the basic raw materials. i think the home builders got ahead of themselves.

>> time for fast and furious heading into the close. does buffett still have it? brian kelly? >> i think he does. you have to set it and forget it. have warren buffett manage your money and reap the profits. not many pe get the calls he gets. >> session highs practically and you buy here? i take advantage of the strength and i think it's a little bit more downside to go on the dollar index. i talked about it going to the 2008 lows. i'm a seller into the dollar. >> cash for clunker, liz? do you buy or sell? >> i am not a fan of any government subsidies. i would say -- >> you are a seller? >> 3/4 of all stock to the market. it continues to go higher and it's overdone. >> in the treasury market got about $75 billion.

what do you do? >> you stay away from treasuries right now. dividends are paying nicely and don't buy treasuries. you need a point or two percent on the yield. >> robert schuller, creator of the home price index and it's good news that will translate as the good news on the real estate front. the exclusive interview with the california keys for kitchen. his take on how to save the restaurant business. he will be back in the halftime report. >> the man with the pulse on the housing market weighs in on whether the recovery is finally here. big ben it is down, but can he thread the needle next week. they break down the playbook on america's post market show tonight. natural gas is a cleaner burning fuel,

yet a lot of natural gas has impurities like co2 in it. controlled freeze zone is a new technology... being developed by exxonmobil... to remove the co2 from the natural gas... so we can safely store it... where it won't get into the atmosphere. exxonmobil is spending more than 100 million dollars... to build a plant that will demonstrate this process. i'm very optimistic about it... because this technology could be used... to reduce greenhouse gas emissions significantly. ♪ if saving money happened as automatically as everything else? at bank of america, it practically does. use the bankamericard power rewards visa credit card and earn rewards like cash back

with every purchase. cash you can put into savings. or even use to help pay down your credit card balance. it's one of the many ways we make saving money in tough times a whole lot easier.

welcome back to the fast money halftime report.

it's an important mark is being raised in the today's session. a 50% from the march 9th closing low on the s and p 500. you are down on the floor and feel the pulse and the flows down there. i want to play the skeptic. are we getting the participation that one wants to see in order to really believe in it? >> i think the mutual funs are believing in it and once we breakthrough the levels, hedge funds are nervous about coming in short off this number. they are starting to -- not all of them are covered and still covering to be done and moving straight up from here. >> of course stay tuned to cnbc all day for continuing coverage of the big market day. that does it for us. later the traders go on the fed to get into recovery mode. first on "power lunch," the trader's triple play it get you set up for next week. oils, bonds and stock.

what else are you working on. >> 1:00 p.m., a cnbc exclusive. california pizza kitchen's ceo will talk about what's happening with casual dining. the direct edge ceo will join us at 1:20 on this contverse we high frequency trading and the kind of trading we talked about lately. flash trading. is it good for the markets or not? we are waiting for president obama to talk about the economy and the economic data that came up this morning that is fueling the powerful rally that we will keep you up to date on. >> u.s. remains in talks with the u.s. to hammer out a settlement in the tax evasion case. a number of issues still need to be resolved. stocks were putting up the best rally since july 23rd in a response to the jobs report. the senate confirmed the next u.s. attorney for the new york district. the busiest in the country for

white collar crime. that's cnbc.com news now. i'm courtney reagan. >> power the bulls are in charge still today. the latest read on jobs coming in better than expected. that's adding fuel to the summer rally. the dow and s&p touching new highs for the year and major averages on track for a fourth straight week of gains. the dow and nasdaq all trading higher today. >> i'm michelle caruso cabrera, on this jobs day, an interview with the ceo of california pizza kitchen. we will talk about the health of the restaurant economy. >> set to speak about the u.s. economy. "power lunch" will be carrying that live as soon as he begins. >> we are joined by the power player.

todd huck holtz is back with us and author and broadway producer and good sport. you took your jacket off and thank you. i don't feel under dressed here. >> as long as it's the jacket here. >> this is a family program. go ahead. >> president obama, does he have a right to talk about the economic data. >> every period has the right to brag when things go well. this is the obama rally. but, michelle, notice as obama's popularity ratings go down, the market goes up. >> coincidence? no. as hubert humphrey is pleased as punch, they are pleased that obama is losing power and that means the threat of higher taxes are coming off the table.b >> and the earnings we have been watching first with the financials with better than expected numbers. >> i believe we are having an economic recovery.

i believe that all year. we begin to have an economic recovery. it is not coming because of the $100 billion of stimulus eeked through the pipeline. it's not coming because of the promises of $787 billion of wasted spending. it's because ben bernanke slashed interest rates and stomped on the accelerator and has pumped liquidity into the economy as never before. >> let's get a take on the jobs report. we are joined by the president and ceo of the urban league and former mayor of new orleans. we have been talking to mayors as well about what they are trying to grow jobs or at least protect jobs. what did you make of the report this morning. >> we have better news than we had in easily a year. what was interesting is i think that all of the actions that have been taken, the recovery act and ben bernanke's action and the top when taken together and seem to be statinging off

worse news. it's better news than i think it may mean that when you take gdp growth and losses. they have been reduced and you take that together, we may be on the verge of a recovery although i think it will be slow. >> what are do you make of the contention that part of the reason that the market is rallying is because president obama is less powerful and it looks like maybe health care reform is not going to take the path originally thought and it's going to be not as onerous as people feared. >> it's a stretch to tie political popularity to the market. it is in fact a stretch.

>> how about gridlock? >> i wouldn't go there. what is fair to say with the market may be reacting to is the fact that we hit bottom or that we have begun to turn the corner. these job numbers i think may indicate that, although you can't celebrate, but i think because we had so much bad news when it comes to the jobs market, it's important to recognize that we are at the end of the beginning of the recovery. >> isn't it possible that the stimulus package has worked? >> no. i'm going to change my answer completely. it has worked, but it's the chinese stimulus package that worked. you talked to john chambers and he told you that china is ordering up from cisco. you speak to the united technologies and caterpillar, they are increasing manufacturing because of china's stimulus and not because of theus congressional stimulus.

they have massive lay offs in many, many states. you can't look at the construction stimulus and you have to look at the whole package and that package in conjunction with bernanke is done and the obviously actions and all of the actions by the government to try to stave off a complete economic collapse. the united states has obviously i think had a coordinated effect with what china may have done and europe has done. you have to look at the actions together, not separately. >> economists are saying the companies overdid it with the layoffs as we have seen. they were preparing for a 10 earthquake and we got a 5 magnitude instead.

>> that's right. so many so-called experts warn that we were going to the great depression. and i in fact would blame george w bush. we had to pass the stimulus plans. >> for looked bleak back then. >> for did. i think companies did slash payrolls quickly and harshly because the survival was on the line. >> did you get a snap back? >> this fall will look good. the first half of next year and i'm afraid we will say is that all there is? we may end up having recovery that is disappointing at that point. for the next 6 to nine months, we were clearly on the road pointing upward and not downward. >> always good to see you. take care. >> thank you. >> take a look at shares of california pizza kitchen trading lower after forecasting third quarter earnings that are very likely going to go below

estimates. they are talking about weak industry conditions. the restaurant chain was one of the few that did not have massive layoffs in the  recession. joining us for an interview is rick rosenfield, the cofounder and cochief executive officer of cpk and the power player todd buckles is here. thank you very much for joining us. you talked about how you are looking for lower number that is going to be coming in. what's happening with the  consumer and what are you seein in your stores? >> not seeing great confidence right now, but the thing that we try to emphasize and particularly in california where we have 42% of restaurants. we have a very healthy business, including in california which are still the most profitable across the country. >> you still -- i have here, rick, this card here, the adventure card. a lot of restaurants are doing the promotions. cutting crisis and cutting

portions and doing whatever it is on the margins to keep them from having to lay people off or keep people coming through the  door. it's about price right now, isn't it? >> i don't know if it's about  price. what we are not doing is cuttin portions. we are not cutting value. 50% of the menu items are under dollar did 10 and 75% are under $12.50. we are growing. we will build more restaurants next year than this year. >> that are pizza we are looking at is the same size it was last year at this time. is that correct? >> you betcha. we said we can't cost cut your way to prosperity. we are taking care of our  guests. the adventure card is a fun new promotion for us. >> build points on the side. yesterday brinker was talking about the fact that chili's tried smaller portions for smaller prices and people weren't happy with that. they liked big portions.

we are in america. >> we have a great variety from the salads and we think americans want variety. >> cost control, right? at what int r point do you see a return to robust growth? >> what we are going to do is grow. not only through the internalor beganic growth, but build more next year through the kraft frozen pizzas and international growth. we have a lot of leverage to pull us through. it is a tough time for sure. >> i took my kids to cpk last week and enjoyed. had a salad with shrimp and the pizza crust. here's my point. we are talking about jobs today. minimum wage went up a couple of weeks ago. wages may be 35 to 40% of the cost of your doing business. how is that impacting you?

are you trying to econ myself and save on labor cost or do yo expect to hire more or fewer people over the next six months >> we will be hiring more  people. no question that the rise in  minimum wage as the cost pressure for us. what we are doing is managing  smartly. we are creating the right labor in our store. we have a great buy in by the  management team and paying  attention. we are not cutting labor. as i said, our number one goal  is to make sure we don't do  anything that negatively affect the guest experience. i'm glad you had a good time. the customer satisfaction scores are higher than ever. we feel good about it. >> how do you cut cost if you are not cutting back on the sizes and not getting cheaper ingredients in the meals. what do you cut back on? >> the good news is the commodity costs are helping us  now. cheese is down from a year ago and chicken is down and a numbe of costs are actually down.

the energy costs are down and w are managing those better. we are paying attention to ever one of the cost to make sure we are focused on it. again, it's not like slash and burn. we are just toughening up in the tough times across the board. >> rick we have one of the fine chefs here and we brought wonderful cuisine from california pizza kitchen. we thank you for that. >> tom will have another salad. >> that salad you were talking about. >> that's grit. >> we wish continued success. >> appreciate it. >> rick rosenfield there. >> thank you. >> what kind of pizza is that? >> the cheeseburger pizza? the barbecued chicken with bacon? they added bacon? >> i would lick my finger and stick them in every one. >> don't touch because the federal government gets 50%.

>> loaded for barron today. the dow up 5% for the year and the nasdaq up 25%. today's jobs number, we have happy bowls and round up the all-stars and get you the pulse of the market. >> we have the 18-year-old that calls is the naz for the nasdaq. the dow, s&p and the naz. up 50% from the lows. we are back after this. >> bon ap it.

the president will be coming out in about 15 minutes. it is used for a bully pulpit. >> it's a great backdrop and a nice time of year. every president has the right to brag when things look better. every president is blamed when things look worse. it would make sense to come out and use this better than expected jobs number as an opportunity to push forward his agenda. think of it what you will. >> the better than expected jobs number will have a big impact. down at the new york stock exchange and the market round up heesh. the bond market as well. you see rick on the market.

>> i want to show you something in the railroads. economically sensitive stock, cyclicals are doing well. there is a belief and buying into the story. look at the story. it has to do with a lot of chatter this week about potential upswings. the chemicals and metals have picked up and grain volumes have been recovering and chatter that auto production increases and it will be a help. the commodities are up and the dollar is up. that is an unusual situation. back to you in the studio. >> the president is coming out in less than two minutes and in fact he is coming out right now to talk about the jobs report. here he is. >> i would like to say a few words about the state of our

economy and what we are doing to put americans back to work and build a newfoundation for growth. last week we received a report on america's gross domestic product and the key measure of our economic definitely and we received signs that the worst may be behind us, but lost 247 thousand then jobs in july. nearly 200,000 fewer jobs lost than in june and far fewer than the nearly 700,000 jobs a month that we were losing at the beginning of the year. today were pointed in the right direction. losing jobs at less than half the rate we were when i took office. we pulled the financial system back from the brink and a rising market is restoring value to those 401(k)s at the foundation

of a secure retirement. we reduced payments on mortgages, making homes more affordable and reducing the number of foreclosures. we helped revive credit and opened uppy loans for families with small businesses. ry rescued from catastrophe, we have begun to build for growth. that's why we passed an unprecedented recovery act less than a month after i took office and did so without the earmarks or pork barrel spending that is so monin washington. now there is a lot of misinformation about the recovery act. let me repeat what it is and what it is not. the plan is divided into three parts. one is for tax relief going directly to family and small businesses. for americans struggling to pay rising bills we kept a promise to put a tax cut in the pockets

of 95% of working families. a tax cut that began showing up in paychecks about four months ago. we cut taxes for small businesses on the investments and increased loans through the small business administration. another third of the money in the recovery act is for emergency rehelping folks we expanded unemployment for those who have made a difference in the lives of 12 million americans. we are making health insurance 65% cheaper for families that rely on cobra while they are looking for work and for states facing shortfalls, we provided the assistance to save jobs of tens of thens of teachers and police officers and other public service workers. these two thirds helped to weather the worst phase of this recession while stabilizing our economy.

the last third is dedicated to the investments to create a stronger economy tomorrow. part of that is the largest new investment of infraproduct e structure since eisenhower built the system in the 1950s. jobs rebuilding america and upgrading roads and bridges and renovating schools and hospitals. as we begin to put an end to this recession, we have to consider what comes next. we can't afford to return to an economy based on profits and maxed out credit cards where we depend on dirty and outdated sources of energy and soaring health care costs. this won't create growth or shrink the deficit and create jobs. that's why we put an end to the status quo that got us into the

crisis. we cannot turn back to the failed policies of the past nor can we stand still. now is the time to build a newfoundation for a stronger and more productive economy that creates the jobs of the future. this foundation has to be supported by several pillars to our economy. we need a hoar stoikic commitment to education so the united states is the most highly educated workforce in the world. we need to bring down cost and provide security for folk who is have insurance and options for those who don't and need to provide incentives to create new clean energy sources for our industries. that's where the jobs of the future are and the competition that will shape the 21st century and the race that america must win. we have a lot further to go. as far as i'm concerned, we will not have a true recovery as long as we are losing jobs and won't

rest until every american looking for work can find a job. i have no doubt we can make the changes t. won't be easy though. change is hard and especially in washington. the commitment to one another and the courage. we have seen the strength of character over the course of this recession. across the country, people have persevered even as bills have piled up and work has been hard to come by. everywhere i go, i meet american who is kept their confidence in their country and in our future. that's how we pull the economy back from the brink and turn it around. i am convinced we will see a light at the end of the tunnel and we have to move forward to reach the promise of a new day. thank you very much.

a note of hope taking the positive or less bad jobs report. better than hope when he talks about how we came back from the brink. >> the first time we have seen the unemployment rate drop. they are added up and he pointed to a lot of the different issues and the different ways they have gone about the programs, everything from working mortgages and loans to small businesses and expanded unemployment. that makes me worried about how much bernanke will have to take

back the stimulus. >> i know you want to say something, but we have to take a break and we will hear from john harwood and this as well. the dow is up 158 points. more "power lunch" after this. you really need it these days. how come? well if you're hurt and can't work it pays you cash... yeah to help with everyday bills like gas, the mortgage... ...and groceries. it's like insurance for daily living. so...what's it called? uhhhhh aflaaac!!!! oh yeah! that's it! aflac. we've got you under our wing. a-a-a-aflaaac! 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. 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".

i think a hard sell at this point. i think it's obvious. >> i believe we are not having a recovery. the chinese may be having a recovery, but now the stimulus

plan because only 6% was going towards infrastructure. almost all of the plan so far is going to health care and education. they are important parts of the economy. >> it's not health care and education. >> it's about spending way too much over what they should be. >> we are missing $53 billion in tax cuts. that's how much tax relief has been received by the american people. $53 billion. as you mentioned, the fiscal relief. you want to cast versions of that relief, please go and do so to the families who have a school teacher in the classroom who would have been -- >> that's because of too much spending. >> i didn't hear what you said. >> they have service through the roof. >> they would have been looking at a classroom twice that size. tell that to the streets that have more policemen or

firefighters. the state fiscal relief made a difference to both on medicaid and food stamps. no to the mention unemployment. >> we have to be humble and admit what we don't know. we try to pin cause and effect on events in both politics and in economics. barack obama takes office and there is movement and people assign responsibility or blame whether it goes up and down to what obama said or did. the same is true right now. we don't know why. the economy was going to recover at some point. look, when you get good news in your direction, you have the right to claim since you get the blame on the downside, credit for what you are doing, at least circumstances. >> i think that's absolutely right and jared is right to be on the white house lawn on a hot august day. he is entitled to do that. thing from the president today and a phrase that the american

people are concerned about is budget deficit and spending. the spend suggest not free and has to come from somewhere and needs to be paid back. interest rates are starting to creep up partly because of the fear of the where the money will come from. when will the president speak about the cost of programs including his health care proposal? >> couple of comments. he has been talking about that a great deal and will continue to do so. secondly, i want to make it clear. i don't mean to boast about anything. there is nothing to boast about when you lost 250,000 jobs and looking at an unemployment rate of 9.4%. we know we are nowhere near out of the woods when we start meeting the positive conditions i mentioned earlier. we are headed in the right direction. now, you have to worry about two things. which one am i going to worry about today?

>> which one? >> i'm worried about both. but you also have to understand that they are interrelated. in order to bring down the deficit as a share of gdp, we have to get gdp and the economy humming again. that has to be the first priority. then we have to build into our budget to ramp down of the spending which we do. in order to get that budget deficit down as we move through the crisis. >> very good. always good to see you. thanks for your time. thanks and take care. >> i liked it when he was a contributor. now we only get him when the white house allows. >> we can beat up on him. >> he speaks with the power of the white house behind him. >> the latest on frash trading. where we stand in all of that and we will talk to the ceo back again to clarify what they do in the future after this. the dow is up 172. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 i want everything right where i can find it. tdd#: 1-800-345-2550 anything that makes trading easier. tdd#: 1-800-345-2550 i want to be right in the middle of the action--

tdd#: 1-800-345-2550 you know-- i have to see what's going on. tdd#: 1-800-345-2550 and when i pull the trigger... tdd#: 1-800-345-2550 ...i've got to get the best price out there. tdd#: 1-800-345-2550 (announcer) try the new schwab.com tdd#: 1-800-345-2550 for yourself. tdd#: 1-800-345-2550 call 1-888-4schwab tdd#: 1-800-345-2550 or visit schwab.com/trader today. tdd#: 1-800-345-2550 'course a trade doesn't always work out my way. tdd#: 1-800-345-2550 but when it does... tdd#: 1-800-345-2550 ...man... do i love that feeling.

the dow industrials are up by about 176 points near the highest levels of the day. the s&p up by better than 2%. the nasdaq is up 38 points and this is coming on a morning where we heard of a better than

expected jobs report. president obama talking about that and again the highest levels of the day. 9400. the fastest growing equity market is an independent dealer called direct edge. in part by goldman sachs and the company has begun to talk about it this week with flash trading. in the past 24 hours, nasdaq has halted certain flash trading and said it's going to continue to offer original flash trading service to clients. joining us here on the set is ceo william o'brien. joining us is rosen black and white securities and analysis. he has the other side of the discussion. let me start with you. nasdaq said we will not provide this flash trading that allows market participants to see. you are still going to do that. why? >> it's all about customer choice. we always made this voibl to

customers and they as a broker decided whether or not it's right to use that in getting possibly a better price. >> sec chair said they will take a close look at this equitiability of flash trading pertaining to other avenues and it was almost 24 hours later that nasdaq announced they would end on september 1st. have you been in contact or what is your thought about what the sec may do? >> we have a dialogue and we are applying to run as an exchange. there is a lot of dialogue and staff in conjunction with that process. the sec is led by chairman shapiro and that is looking in the broader context how the markets have evolve and no rush to judgment. look at the data and get as much investor participation as possible. i get a weird sense that it's

imminent. she comes on and said we will go through the process. do you get the sense thaw get what's going to happen? >> i don't think so at all. that would be a good example of that. whether it was a lot of concern originally and a lot of pressure placed and process has been run producing good results overtime. >> what if it was? what would it mean to the bottom line? >> it's a small part of the business. we have innovative products. >> in terms of revenue? >> in terms of revenue and volume. about two billion shares a day and when i got to the company, we were 19 people and 19% of the market. now we are 13%. this is part of that and we will focus on that. >> i am told you don't like flash trading. you are against it. me why.

flash trading takes place on the direct edge and has differences with the ones that nasdaq and bass decided to get rid of. the two main issues are an investor order that would have gone to the best quoted price in the market place being held up and flashed to folk who is get to see it and maybe trade with it and maybe don't. if they don't trade with it, there is no surveillance of what they do with that information and other trades they might be making that might be harmful to the person whose order is being flashed. they do trade with it most of the time and again, the variety of this is different and that sometimes a person whose order is being flashed will be executed at a better price, but most of the time and all of the time they are not executed at a better price. the regulateors will be looking at that. >> if that's a small part of

your business, why not end it if it has this bad reception. at what point does it become bad pr to keep offer together. >> it's worse to take away choices from the customers they think are benefiting their own customers and investors. there is a misperception. we have retail broker who is are executing orders that are getting access to liquidity they never had and better prices when they execute trades and larger sizes. that's important to them and we respect that and the profits that are going on and a wider review of market structure. this is part of that and the right way to proceed. >> thank you for coming back again. thanks for your insights. bitting you adieu as well. >> if you give chris dodd the first flash -- you left it as well.

straight ahead here, the bulls are charging after this wishy washy week and what should investors look for next week? we will get you ready. >> keep watching the markets. will we hold all the way to the close? turning out to be a great session. stick around.

poor. >> take a look quickly. among the stocks, a better than expected jobs report and retailers hope that maybe consumers will spend again. these are the stocks that are trading higher. all up in fact there have been outfitters up by more than 6%. the markets are trading near the

highs of the day. the dow is above 00. looking like the marks next week. we will find out. bobby helder. the cme is holy and city director from the nymex. from battalion capital management. we got the jobs report out of the way. next week the federal reserve. two-day meeting. how much will we focus on that and did we have to say about the withdrawing? >> i don't think anybody is really expecting a rate increase. the chairman will keep rates the way they are. we have seen the banks keep rates and the bank of london or whoever that is there. people are saying they will keep rates. it will be news. they will lead the market higher.

they will look deeper into the financials. they have all seen profit reports and want to know what kind of grits they have. what do you make of all that and will it continue? >> at this point it looks like fixed income yields will continue to move higher. no change expected regarding rates, but you have quite a bit of supply. 75 billion in the refunding next week in threes, tens and 30s. that will keep pressure on prices. no pressure out of the fed, any statements they give that they start to see signs of growth,. >> the stair step happens every day. 4%, is that a possibility? >> i think that is possibly sooner rather than later. we don't have a lot of

sustainability above 4%. the treasuries are notorious for slicing through a market before they recover. in the last possible year and a half, we have been above for years. that's it. >> can oil go higher if the dollar strengthens here? >> i don't see that and add to that the idea that as much as you have a rosy picture from the unemployment number, we have 250,000 people who lost their jobs. it's reflected in the gasoline price. they are showing us that they don't have the appetite. they have been dropping and because of the weak demand on the product. it's hard for me to believe we will take out the level we saw at the early part of july. >> what's the trade right now? >> the trade, i think we have to

look carefully at financials. i'm not sure we want to continue being long here or anywhere long across the floor. >> you look to see how the auction goes. he has probably given them tame. we haven't seen anything there. more in the long end than the short end. >> i was going to ask you about that. pricing in 100% chance. >> this was the first time since mid-to late june pricing the high odds. they restructured everything and they are looking to come in sooner and they go 25 in december. that may be a little bit early, but they are looking at the first quarter. >> bobby, holly and randy. sounds like the mouse ka tear

club. the stocks that are on the move up to date on the stock to watch. >> we will go to the market and see what drills the market higher at 1.8%. right now five co-workers are working from the road using a mifi, a mobile hotspot that provides up to five shared wifi connections. two are downloading the final final revised final presentation. - one just got an e-mail. - what?! - huh? - it's being revised again. the co-pilot is on mapquest. - ( rock music playing ) - and tom is streaming meeting psych-up music from meltedmetal.com. that's happening now with the new mifi from sprint, the mobile hotspot that fits in your pocket. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance,

may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full. the scooter store. hi i'm dan weston. we're experts at getting you the scooter or power chair you need. in fact, if we pre-qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for free information.

welcome back to "power lunch." checking in on all kinds of things and dow is up 165 points. we have the jobs data and that is also helping the retail sector. look at urban outfitters on a big tear here. one of the hottest retailers in the russell 1,000. they try to look at the broader picture and it had a heck of a day on the year. a multimonth high. a little tiny kodak. this is a stock in the s&p 500. the large cap index and migrated to the russell 2,000.

it's the third smallest player and under a lot of pressure. the buy from neutral and they think it's headed to 14 and star wood as well as marriott getting a bid. dow saying there was a lot of put action in stoor wood with a big move at about 25%. watch the hotel stocks. >> they are on the move. we will cap off a week of "power lunch" with a few empty calories. >> you won't believe who is coming out with a new clothing line. you won't believe it. stick around. we will be back. 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.

markets took off and never looked back. up by almost 20 points. 1, issue 016. his hunch was the s&p would go to 1015 today. >> wow. he is right on the money. >> he did not pay me to say that. i swear to you. harvard and fashion, not two things you usually think of together. harvard university is teaming up

with clothing manufacturer wear wolf group to develop a new men's wear line called harvard yard. >> they lost a billion dollars when larry summers forgot to unwind that foot. >> extraordinary times call for the measures. >> it's a big fashion statement this fall that would be plaid. maybe they are time together right. >> looking like the lumberjacks, but this goes beyond the hoodies. >> the men's wear. >> the real clothing you wear. >> is harvard enough of a brand? >> that's a place to start. >> not if you went to yale. >> the markets will continue and one of the interesting wrinkles has been the strength of the dollar and the rise of short-term yield along the curve. the flattening usually curves

long rates and the stocks are up. >> you know what else is up? a little birdie said today is your birthday. >> yes, it is. >> you are so smooth and never get rattled. >> this was what i get for registering on facebook. as of today. >> happy birthday. >> that's "power lunch". "street signs" with erin burnett begins in 30 seconds. good-bye. >> this morning's jobs report is helping stocks through the best rally and up 50% from the march 9th closing low. president obama said he is encouraged by the jobs report and said he won't consider it a recovery until the economy adds jobs every month. the panel cleared senators

christopher dodd of breaking rules in connection with the mortgage deals with countrywide. the cnbc. >> this is street signs and here's what wall street is talking about. we are up 165 and all 30 dow stocks are higher and we have highs on the stock exchange and i believe 48. if you look uptown and will the rally last. we have that covered with the traders and skeptics and believers alike. we will take you to what we are calling the goldie locks state. unemployment there. granola and honey. will wall street's speedy recovery. that's our show. it starts now.

>> let's show you where the market stands. as i said at the top, we are at 6185. higher for all the indeces as you can see across the board. the company said it's not true. and starbucks, aig, a big mover and cbs and marriott, starwood, all of them on the list. all 30 stocks are higher. what is money talking about at this hour? let's go to the trading floor. as i said for the believers, we have got it covered for the next hour. rick san teley is here as well. i don't want to use the word nervousness and they seem to have decided up is the way to go. >> i think the important thi