starting its own cash for clunkers program in russia they plan to offer $1500 rebate for old cars. the cars have to be at least ten years old. and the rebate, listen to this, can be spent only on russian-nad cars that includes cars by ford and nissan because they have factories in russia. this program is expected to be launched by early next year.÷ >> i thought you had to turn one in over ten years old and buy one nine years old. do they have new cars? they're not all clunk? >> we'll get you over there. >> no, you are you won't. >> make sure you join us "squawk on the street" is coming up next. it rose to a total of $558,000. economists had been looking for a slight drop. it fell shortfalling a tenth of

a percent in july. down .6 of a percent when auto sales are excluded. cautious comments from walmart which did beat estimates with the latest earnings. that's cnbc.com news now. i'm courtney reagan. live from the financial capital of the world, this is "squawk on the street." good morning, everybody, i'm mark haines. a mixed bag for your money, retail sales and jobless claims killing some of the early morning buzz getting ready to buy walmart, seemingly the only place people were shopping in july. we're still on track to open higher and potentially keep that summer rally rolling. >> good morning, mark. i'm erin burnett. the question we have today is what housing bottom realty track recording another record month

for foreclosures. that is a problem that has not gone away. they jumped 7% from last month and 32% compared to a year ago. one in every 355 households with a mortgage got -- you know, filed for foreclosure. diana olick is going through the rest of the data and will have more of the bad. if there is any good, she will find it. >> futures right now up 680. they had been much higher earlier this morning. and you got to discount it by 141 to get to fair value. so about 5 1/2 above fair value, about 50 points on the dow. >> let's get straight to senior economics reporter steve liesman for more on those jobless and retail figures. steve, what do you see and is it fair to say walmart really was the place people were shopping in july? >> i think it's also important that haines, i don't believe, was shopping in july. when he goes to the store we see a measurable bounce to the numbers. >> he even grew his own tomatoes. >> that's part of the problem. >> i'm going shopping in september. fair warning.

>> that's an issue. i'm going to talk about that in just a second. overall these numbers are disappointing, especially for those who see a straight line up when it comes to the recovery and the economy. the recovery is going to be a bouncy one and not a straight line. july down 0.1%. look at the estimate among economists. ex-autos, that bothers me. i expected a big surge in the auto sector. that was down 0.6%. now let's look at the kind of choppy consumer out there. we took out the autos there. you can see that's down after being up. we can't really put together two up months since january or february when we had a big rebound there. let's look at the sales ex-auto. you can see how extreme this decline was as in all other recessions relative to these, how much the consumer is backing out here. let's look at the details. autos up 2.4. not as much as expected by economists. a stream of negatives, including a slight decline in gasoline

sales. on jobless claims here, again, we're looking for a little bet better improvement. it was up 4,000 rather than being -- what is the claims over there, 500, 550, 000 and change. looking for better numbers than that. to the extent we're improving, that number is a little bit better than the worse numbers we've had. but, mark and erin, we were hope for better here this morning. >> all right, thank you, steve liesman. let's find out how that news and all the rest of the news is affecting premarket trading. let's start with bob pisani here at the big board. bob? >> we were just talking about the retail sales to the guys down here. the futures have weakened on it. the talk down here is the cash for clunkers program is taking money away from other businesses like retail sales, for example. rightly or not, that's what people are talking about. walmart did beat on their earnings. sales were disappointed. same-store sales guidance, class up 2%. that's a disappointment. kohl's beat on the top line but

no pick up for sales for them as well. look elsewhere here. solar companies are reporting terrible earning. the problem is renewable energy products, the financing has dried up. solar panels in the world because of the slow down in the global economy. tradertalk.cnbc.com. scott, how are we at the nasdaq? >> big day for tech yesterday. out of the gate nicely today. apple raised at barclays capital to 188. that's on product pipeline microsoft is up. the hd version of the zoom is in stores mid september. stocks on the move. intel, 3/4 to 1% to the upside. watch the chips today. likely to have an impact throughout the space. palm shares giving 2 1/2%, cut at morgan. joseph, that's a sell from hold, slowing presales the issue there. look at urban outfitters.

talk about retail today. stock is up 7 %. results easily beat expectations. melco crown is a macaw casino. the stock is up 2%. let's go to brian shactman at the nymex. >> we have a perfect storm to start the day. weak dollar, strong equities. and then that france and german gdp growth was another factor here. retail sales come in and jobless claims come in. where do we stand? it held up pretty well here. bulls still managing things very well. france and germany number, look at brent catching a bid. brent still tracking above nymex light sweet crude. gold is up. preretail sales and jobless claims says resistance level is 975. copper, a lot of analysts out there still think there is room to run. that is the strongest performer in the metals complex for the day. overall here, there's a lot of energy, a lot of action, but right now in general, the dollar

still rules the day. let's go to rick santelli in chicago. >> you're right on, spot on. the dollar taking it on the chin for all of the reasons that you've put forth. whether it was the big disappointment in retail sales or a huge, huge move in a drop in continuing claims that may mean, well, benefits are running out. it was a big numbers. steve liesman is going to continue to update us on any of the influences that push that number so dramatically. and, of course, is the really great prosperity in you were based on those numbers? all questions that aren't panning out friendly for a post-sell-off of fed statement dollar. interest rates, just like the s&p's preopening. on the data the s&ps fell ten points really quick. the yields fell pretty darn quick as well. if you look at the factor, close to a 80 yield before the number and ten-year and now at 368. that pretty much says it all.

$15 billion 30 years at 1:00 eastern, the last of this week's surprise. back to you, mark. >> thank you, rick. in asia overnight, japan's nikkei up 0. %. shanghai composite up 0.9%. hong kong's hang seng up more than 2%. guy johnson is in london keeping an eye on you were for us. guy? >> mark, we are up here as well. the data from your side of the pond certainly are affecting the markets over here. but never the less, we are still positive. the out liar today is belgium. we don't often talk about belgium but anheuser busch/embev is there. let's stow you the stoxx 600. this is how it's reflecting the market. the stoxx 600 still up by .9 of 1%. france and germany interesting

today. the euro is still negative but only just, by 0.1%. quarter by quarter basis, germany still down by nearly 6% annualized. france down by 2.6% annualized. germany is coming up to an election. the politicians though not crying about these numbers. that tells you there is a very, very fragile story. mark and erin, back over to you. >> thank you very much, sir. up next, inside the numbers from walmart. dropping the hyphen from its name and picking up sales steam. it seems the american consumer is sticking with the go-to low price retailer. >> i didn't know the hyphen was still there. >> i thought it was a star, actually. >> wow. and then the details of john paulson's buying spree in this morning's faber report. he said the biggest position in gold is getting into bank of ameri america. what does it mean? and speaking of that, the

ceo of ali baba.com is here. mad man is also coming up. that could be jim cramer. we'll be back.

walmart set to open higher after reporting a roughly flat second quarter profit that did beat expectations. joining us now to go inside the numbers, john lawrence, managing director at morgan keegan.

how do you view the report? >> well, we view it as a very encouraging report. i mean, we've talked about, for several quarters now, the improvements, the productivity curve that's happening at walmart. you've had nine consecutive quarters now of inventory improvement for this big company. that's pretty impressive when you can get 100 basis points in gross margin. we were looking for an up one comp and it was down one. and then to take the bottom end of the earnings guidance up for the year is pretty impressive to us, some of the things that they're doing. >> inventories was a reduction of 6%. you know, walmart has long mks, of course, of passing along any cost savings, or to a certain extent, passing those along to the consumer in the form of lower prices. are they no longer doing that? >> i think it's a combination. the transformation plan and the mz side of the business that started about four years ago.

they started to program and a lot of that with john fleming was the idea of merchandise clarity. some categories, you're cutting down the category in terms of number of skus, but also giving clarity and then sales are up because you have that clarity. >> tell me about guidance. were you encouraged by it? is it something that the markets should be reacting positively to as it seems to be? >> we certainly think so. keep in mind the 0-2 guidance is for walmart stores, u.s. the comparisons get easier. about half of what they were in this second quarter when you were facing stimulus. so we continue to believe that you had expenses that were up, but keep in mind that expense number has some cost in there for some systems upgrades and et cetera that really the number is a little better than that when you take out some of those costs. >> john, we'll leave it there. thanks for being with us this morning. >> thank you.

>> john lawrence, morggan keega. hey, it's still me. what do you think of that? not just walmart going to be up there morning but it does appear a number of the bank stocks are going to be up on what would apparently seem to be the news that john paulson, the giant hedge fund manager, as of the end of june, owned a big slug of bank of america. should you be buying bank stocks because mr. paulson who had incredible success in 2007 and 2008 is a big buyer of bank of america? i don't know. but it does appear that some people are trading off of that news. take a look. there's bank of america looking up a lot. now, maybe some broader economic news that's also behind this. perhaps france and germany that seem to be positive this morning. none the less, that certainly is getting some headlines. now, we are in this so-called 13-f season although he did seem to be early filing the 13-f.

detail pogs of money managers. paulson and company have 36 plus approximately dollars hedge fund that had incredible success. john was a risker, perfectly good merger and then seized on that incredible trade in 2007 to short the heck out of credit and anything else associated with it. got it right in a way that, well, few ever had, had that incredible payday, of course, as well. and now we find out -- and then in '08 did a lot better than the peer group as well. continue to press the trade. made some other very smart moves. does that mean that he's going to be right from here? who knows. does it even mean that he owns as much of bank of america as he did. there you see, 168 million shares. not an insignificant share op goldman sachs and jpmorgan. wyeth attend there, i bring up because it does go back to the root of the firm, which is merger r.

many people piled into the pfizer trade which people believe could a good deal closing in a couple of months from now. we'll see. there's a look, by the way, at wye wyeth. the 13fs that is going to come out as of june 30th. and by the way, they aren't up for all positions, because i don't believe the offshore funds need to file. are they important? who knows. did everybody pile into that bank of america trade in the hedge fund industry? yeah, they did. you probably here me talk about it in any number of times. huge trade. the question now is giving a run-up in stock, how many people are ultimately taking that trade off because much of the easy money has been made. we'll see. but a lot of attention being made to mr. paulson. which i guess makes some sense, erin, given the size of his hedge fund. but none the less, it is funny, of course. you never know. past performance doesn't really mean much for future performance. >> that's right. i know people have ups and

downs. you think about eddie lambert, make a couple of mistakes and then everybody is critical of you. >> you'll never be able to take those incredible trades away from paulson though. okay. next, they are up 5%. the dow is closing in on 500. retail sales, as we know, an unexpected disappointment. what does it mean for your money? that transport theory, do transports confirm the dow? something to watch very closely. >> oh, that kind of tranny. >> there are many kinds. plus, who controls the cash in your house? tweeters, tweens, the better half, the man at the helm ofcom score. what it means for retailers and the economy. don't go away. i'm racing cross country in this small sidecar,

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take a look at futures. we are definitely going to open higher. the headline perhaps though is the dramatic pullback with the retail sales came in. and unexpectedly fell, did not show the fill-up anticipated from cash for clunkers. let's check in with diana olick for a run through the biggest question mark for the economy. and that is what's happening in housing. realty track has the numbers in the latest foreclosure filings. diana, what have you found? >> erin, as other numbers get better the foreclosures just get worse. as predicted, this is the result of morer toia expiring and job losses. realty track reports in july

360,149 properties received some kind of foreclosure filing. that is a notice of default, option notice, or bank repo sgs. that is an increase of 7% in june and 32% from a year ago. one in every 355 u.s. housing units is in some stage of foreclosure. nearby 2.3 million notices have been sent out in the first seven months of this year. >> a big part of this really is the python problem. we're dealing with volumes of inventory, volumes of reos the industry wasn't ready to handle. an increase of 12 times the volume, it's difficult to get through test the scenarios without choking the system at some point. >> california and nevada, arizona and florida accounts for nearly 57% of all the foreclosures in the nation. but the pain is beginning to spread. we're getting to see big jumps in states like kansas where foreclosures are up 94% from a year ago if maryland, massachusetts, oregon

foreclosures, up 84%. this is all about job losses and this is why foreclosures are not even expected to peak until next year. now, of course, we're going to talk about this all day on the blog. go to it. realtycheck.cnbc.com. erin and mark? >> i'll take it, i'm down here on the floor with warren meyers. the hardest working man on the floor of the new york stokes. >> next to you, mark. >> no, no, no. my whole career is devote to working as little as possible. the news is an interesting mixed bag today. you can take whatever you want. >> i think both bears and bulls have some things that they can pick out and choose and say this shows i'm right on my opinion here. certainly from the bull market perspective, you've got to look at the gdp numbers coming out of germany and france this morning showing some positive growth. a lot of people -- >> surprised. >> very much of a surprise. everyone was expecting you were to be lacking behind the recovery here in the united states. so this is not an abnormal i. this shows that maybe the city

across the world is improving as people anticipated. from the bull perspective, you can look at retail sales numbers weak, foreclosure numbers don't look good. even things like that. so you've got arguments on both sides. >> which side are you on? >> i tell you, i'll put it this way. aim nervous bull right now. and that's a little -- >> nervous bull. >> that's a switch from where i've been. i've been anticipating the run here. this market keeps going up. momentum is there. it's hard to argue that right now. >> you're etching dangerously close to that little corner that gordon charlop sits in. anyway, thank you. thank you, warren meyers, the pride of pepperdine. let's get the buzz from beyond the big board. sean clark of, cio of clark capital management. what is your take on these

retail sales numbers? now they're saying we'll get the cash for clunkers boost in august, but why didn't we see it? is that something to be concerned about? >> you know what, erin, i don't necessarily expect that all the economic numbers that come out are going to be positive. we're in theottoming process for the economy. it has been our expectation coming into the year that the economy that transitions from contraction to expansion right around the middle of the year. i think we've done that. i expect in the second half of the year that the accounting is going to grow somewhere near 3%. with that said, i think with these economic reports, the economic reports come out on a monthly basis, you know, they're not all going to be positive. there's going to be some positive. retail sales today is big disappointment. especially ex-auto. i think one thing that may be happening with that number is with the cash for clunkers, what's the affect downstream? is it taking away sales nnd consumer spending from other areas of the economy that may be beneficial?

i think time will tell. but i think that's what's going to happen. >> it's hard to tell. some of the people, no doubt, already had car payments and hard to know how many of them did and how many of them didn't, when you look at the impact. what is your trade then right now, sean, overall? >> overall, erin, short term we think we're a little bit cautious here. we do think the market is going to move higher intermediate term. market in the s&p is bufrg up against resistance. it's over bought. strength in that over-bought area, i think is something that we shouldn't discount. it's a very positive factor. we're overweighted in mid caps and small caps, economic benefactor sectors. early cyclicals such as consumer discretionary, retail sales came out disappointing. transports, industrials, coal, steel, areas of the market that are going to be benefactors from the strength thening, not just in the u.s. economy but globally speaking. asia and we've been pairing back our asian market and adding to

you were as the global financial market recovery tends to mature. we think that you were is going to be a place to look at. >> all right, thank you very much, sean clark. we appreciate it. >> erin, thank you. >> what guy was mentioning, that in you were, the economy only shrank by .1 of 1% in the second quarter. much better than had been expected. >> much better than expected. all right. the final countdown to the opening bell just on the other side of the break. plus, cramer will weigh in on the summer rally and the possible pullback. >> we will be right back with those bells.

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restaurant chain, steak and shake company. ooh, suddenly, i'm hungry. ticker sns. and at the nasdaq, beer company carlsberg. now i am definitely hungry. >> later on the program, everyone will get to see what mark brought to the stokes today. is something you don't want to miss. there's a little party going on. we will show you what they are eating and drinking. let's get to our market reporters. futures have pulled back a bit on the retail sales. up about 15. bob pisani, i know you have a lot to talk about. one thing that stuck out, department store sales were down 1.6%, biggest decline since december. that sort of stuck out as well, it didn't fit with the more optimistic news this week. >> it was weak across the board. furniture sales across the board. auto sales in the auto group were up 2.5%, 2.8%.

even that was below expectations. this is totally scientific, the talk down here is cash for clunkers while successful on its face is taking some sales away from discretionary items like retail sales. let's talk about walmart. walmart is going to be opening just slightly to the upside here. 50, 51, 52 is indication right now. they did have earnings ahead of the expectation. guidance on same-store sales at 0% to 2% is a little bit on the disappointing side. same situation with kohl's. they beat on the top line but they don't have any take up on sales at all. that, again, top line is going to be a major issues. elsewhere, i can't get to the solar companies. ldk solar is going to be opening down 10%, 12%. all the solar companies reporting miserable earnings. solar panel sales are down because of the global slowdown and they can't get any financing anymore. ldk is a chinese company, being held up by chinese banks, f

financing from them. bob, we're up 7 points. apple is a standout today as barclays capital raised it. they like the product pipeline. microsoft out of the gates to the plus side as well. modest gain but the hd version is going on on store shelves in the middle of next month. texas instruments was upgraded today over at rw baird. intel is up 1%. paul, meantime, is down 3 1/2%. it was downgraded at morgan joseph. it's a sell. that's on concerns of slowing sales of its pre. telelabs is up on an upgrade at morgan keegan. urban outfitters certainly on retail, given what we heard from walmart, they're up 7% as their results beat expectations. melco crown is up 2 3/4%.

gsi commerce is down 3%. they priced secondary offering at $17 a share. you see obviously below the $17.43, $17.44 where that stock is now trading. let's go to brian shactman. >> thank you, simple for the bulls today. strong equities. weak dollar. you have growth in you were. you have a possible storm off the coast of africa. everything looked like it was off to the races to get that retail sales number. and things changed a little bit. jobless claims changed a little bit. look at price, the weak dollar still winning on a little bit. cut the gains in half. i want to share a quote with you because it really touches on how fundamentals are not driving the market. there's enough crude oil to drive the month of august since the tanks rolling into kuwait in 1991. we're not talking a lot about fundamentals. talking about natgas, inventory data is out in one hour. we'll bring it to you live. platt says they're expecting a

build. on pace for a record inventory by fall. metals are up across the board. let's get to rick in chicago. >> shac, you know, it begs the question to be asked, do you think the equity markets have been saddled up tight to the fundamentals? well, maybe they're looking to the futures, some experts are saying. maybe crude oil is looking to the reality of the future being painted by equities. if you look at the future of the option today, hey, if you were brave enough to participate in a ten-year note option in front of a fed statement with asset purchases being the key topic, hey, you're doing pretty well, because the yield is lower than the originally released $3.70%, 3.50% yield. you have a tidy little profit. we'll have to see. the current has steepened a bit, but no surprise there.

steepening just means that long maturities aren't as well behaved on the way up or the way down in terms of yield. the dollar continues to be a big story. whether you believe prosperity is arriving in you were or not, the dollar is certainly giving it up more on weak retail sales. back to you, mark. >> thank you. and stock climbing the gains in the early going. we are up 16. one of the big headline, walmart. david was talking about it, up 2%. retail sales overall disappointing. autos in particular disappointing. job fears weighing on the market. so what does cramer think of the summer bull roll? jim kramer is live on the news line for us. jim, this someone of those days, right? walmart is better than expected. retail sales, especially auto, not so much. what does it mean for stock? >> 100 million people shop at walmart. when walmart does better than expected, people feel they've got to shop somewhere, they want to shop where there's value. the fact is though, they're shopping. remember, last year at this time

we had stimulus checks. i can't -- it's bullish. a lot of hedge funds were expecting a shortfall. >> so, jim, what does that mean, overall then, that means -- we've been talking quite a bit about this. you think we can keep going higher for the dow, for the s&p? >> this is a tough call. i want to rely on something that mark taught me a long time ago. mark looks at advance decline. we had an advance decline of 2-1 on july. doing work on this, three months later, up 12%. six months later, up 17%. 12 months later, up 20%. mark, you always know, when that advance decline is so positive, it doesn't end move. it often begins a move. >> yeah. i would give full credit of that to marty. remember marty? >> that's exactly who i'm using. >> yeah. it was really, most of the great work on those kinds of internals was done by marty who is out there retired somewhere which is

a shame. >> hopefully he's watching. >> i used to call his hot line every morning, mark. >> huh? >> i used to call his hot line every morning. >> oh, and i subscribe to his news letter. couldn't wait to see him. >> i watched him every week. >> great -- was a great wall street analyst. >> well, go against him at your own risk. >> he talked about 9-1 ratios. anyway, so all clear, bull market in full swing? >> i felt that we have to go down between 1 1/2% and 3% to recharge this thing. we went down 1 1/2% on monday. still expect more decline from here, but i think what's more important is that a month from now, three months from now, i think we will be higher. >> jim, what about john paulson and citi. i know he's at a map earlier this spring in bank of america. i'm sorry, i know i said citi because we were talking about that earlier. we do not know what his technical stake in bank of america is today.

but what is your take-away? as david faber said, maybe he's right, maybe isn't, past performance non-indicator of the future. >> my source indicates he's still in it. what i think is amazing, what tells you this is a big secular bet by him is regions financial, because that is one of the worst banks in america. now i'm rethinking my whole negative outlook on it after i see it. why? anybody who called it that right, who then takes a position is, i think, maybe past performance. oh, man, i hold the hot hand. >> jim, i got to fair warring here. fair forewarning. i am retiring from the home improvement game, giving my tools away. how does that affect you're out look on home depot? >> i have to revise it. i was using the friedman billings, i didn't have that information at hand. i do think that friedman buildings is saying they are having a better than expecting

quarter. if you remember what was said the last time they spoke was, look, i think things are getting less bad. i keep thinking blake will say things are getting better. he's the ceo. very honest broker of this period. i think things are good there. >> all right, jim. thank you very much. >> thank you, guys. >> even without jim, whatever you buy there, you and jim? >> what? >> he does home improvement, too. >> yeah, i know. up next -- >> an occasion a nail. >> secret to home improvement, duct tape. there isn't anything you cannot fix with duct tape. >> i believe our producer fixed his washing machine with duct tape. up next -- coming to america, one of china's largest online sites hunt for friends and surf here in the u.s. ceo of alleibaba.com.

and you will see fritz henderson here from the automakers new blan to crank out batteries for the volt. this is an interesting issue. battery components, obviously, pretty much come from overseas. mark will be replacing one foreign dependency with another. you're going to see fritz henderson with our phil lebeau.

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alibaba.com is the biggest commerce firm in the world. it said today second quarter profits fell 34%. it's spent a lot more on infrastructure, technology, advertising. the numbers did though come in way better than analysts were looking for. as the firm gets ready to launch the biggest marketing campaign, first marketing am cane in the u.s., what does the future hold and what can they see with the economy? talking about small entrepreneurs that make things, selling things to other people around the world. it's a good economic indicator.

joining us from hong kong, the ceo of alibaba.com. good to talk to you again, david. hopefully get to see you again over there sometime soon. when we look at numbers, high quarter additions in terms of new subscribers, and my question is, who are these people? are these people who still have lost jobs in more traditional areas and starting new businesses or is it something else? >> we launched a much lower price to the starter pack last november to attract much smaller exporte exporters, we see that more and more smaller buyers after the crisis. i think the last three quarters have proved our position was right. so we attract regular exporters but now we are attracting much smaller exporters. even exporters break down from big factories, one big factory now become two or three small factories and they become new members. >> i know that's something that

has happened during the slowdown and you saw factories break up and maybe create more potential customers for you. what is selling right now? when you look at transactions, what types of products and who is buying and who is selling geographically? >> well, we have seen the consumer products order pick up more rapidly industry products, even u.s. buyers, i think about a couple of months ago they have already started build-up inventory for students back to school. so consumable product like apparel, sportswear, sports shoes, actually including in comparison to construction materials. >> so do you agree with those who say the worldwide recession is over and we are back on a

growth path? >> i think the worst time definitely is behind us, but the recovery pace is very, very slow. but we did see the recovery pace from the states is faster than european countries. if you look at emerging markets, we didn't see big impact between now to last year at all. they're still on their own track. it's mainly depends on the u.s. and the western european countries' recovery. however, that pace, what we have seen today, is relatively slow. >> so you would be hiring and expanding with confidence right now? >> it's the best time to make everything cheaper. we even build 15% ship because of that. we hire people cheaper, we invest in technology cheaper. we shared 8% in the last 12 months. that's the easiest and cheapest time to expand your market share.

probably reinvest. when the market is at its peak, which will be very cautious invest chlt, but when markets is data, perfect time for investments. >> and what about the u.s. advertising campaign? i know you talked a little bit about that. $30 million, your first ever. how is that going to break down television, internet, newspaper, and how much cheaper are you able to buy that advertising? >> actually, this is the second run of our marketing campaign stakes. we did our first rollout october. this is the beginning of the crisis. we tried to use the campaign to use e-commerce and internet sourcing to help them survive in the crisis. and the result is very, very good. every quarter we can acquire 1 million more buyers, mainly from the state. about 20% from the states. so before the crisis it took us one year to acquire 1 million

users. after crisis, only took us one quarter to acquire 1 million additional users. we decided to do a campaign from august again focusing on the states. and this time it is to awake people again to help them soon recovery. and we believe we're attract 1 million users a quarter again through this campaign. regarding media buying, i will not name particular media. media is offering us 15% or 20% off the original price. so the same starter can offer much better exposure in comparison to the crisis. that's why we say perfect time for investment. also perfect time for marketing investment. >> all right, david wei,thank you so much. 15% to 20% off. we're charging 15% to 20% more. >> buyers market no matter what you're buying.

>> very true. up next, stocks on the move including dr pepper snapple. plus, cramerle a for a correction. a small one but a correction. deutsche bank says the world's economies are in trouble. all this on a day when germany and france say their recessions are over. they're growing. cnbc edge to overcome the confusion on the street.

i present to you the best stock in the s&p 500. harris corporation with a giant 17% move here today. that's the assure communications business for you, folks, after the close the company beating on their fiscal fourth quarter 91 cents versus 82. they also raise their full-year forecast. dr pepper, snapple 7% higher

here today. the company beating with the second quarter 62 cent versus 57 cent. blowout quarter. their full year also going higher here today. crediting lower packaging, costs as well, lower taxes. public group up 5% in the advertising space here today to buy from hold at deutsche bank. they think it's headed to $7 per share. we mentioned home depot. the flip side of that research call at fbr is lowe's being cut do market perform from out perform. mark? back to you. >> thank you. stocks posting modest gains at the open, but confusion seems to be ruling the street. mixed signals and which ones do you listen to and which ones can you safely ignore? your cnbc edge now with brian with wells fargo advisers andrew cannaly.

brian, i'll start with you. you rarely had whatever news you wanted to listen to. jobless claims were up a little more than expected. but germany and france are showing growth in their gdp. but no one is shopping anywhere except walmart. the fed says everything is okay. what do you take away from all of that? >> mark, what you've got to look at is expectations versus reality. you've had the market which is insisting on less than bad expected numbers. so you look at the earnings numbers, you look at the economic data. it hasn't been as bad and you've seen a slowdown in the rate of change. the problem is that this is not speak to the "v" shaped recovery and the rally we've seen in the last month has been in anticipation of maybe things are getting better and accelerated. the retail sales numbers, sluggish consumer, you're going to be a "u" type of shape. consensus. never the less, over the short term, what that sets you up for as we move into august is more consolidation patterning. ic that's not going to come as

too much of a sure priced. big picture on this is this is going to be a lawn drawn-out recovery. when you go month to month you're going to need to step back and look at the bigger picture before you can really say, okay, everything is better instead of just left worse. right now we're just in the less worse camp. >> drew, what do you think? >> water on the set to wash the bad taste on my mouth from that retail sales report. i mean, we're still in, you know, significant problem here. unemployment still rising. those stats, don't believe them. we still lost 225,000 jobs last month. and with those kind of numbers and the mortgage resets coming in the next couple of years, what is the foreclosure rate going to look like? still rising last month. >> drew, one thing that really sticks out of the retail sales, i want to get your take. i know we asked someone about this earlier. everything was expecting a jump for cash for clunkers in auto sales. up 2.4%, which is nothing to complain about. the problem is given all the reports, everyone thought it would be better than that by a

factor of 2. up 5%. we didn't get that. >> you didn't get it. you're not going to get it with any type of stimulus programs long range. looking for these things to get us out of this deal to losen the wa wall wallet. it's not going to loosen the wallet until the consumer feels like they have better job prospects. looking to the consumer to pull us out of this thing, you're looking in the wrong place. >> brian, it's interesting they added in the fed statement yesterday, too, when they were talking about the consumer, the phrase sluggish income growth. which was a new ad. we all know it's there. . they do pick every word carefully. >> the housing price sis the the two dound faces. that's going to have a creative slow down in economic growth from that going forward. it's understandable.

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shoes of cit group are jumping 15%. the company has adopted a plan

to preserve its ability in the future and not impact the on going restructuring plan. dr pepper snapple beating estimates with the latest earnings and raising the forecast. moments a way from june figures for business inventory. expected to show a drop. that's cnbc.com news now. i'm courtney reagan. welcome back to "squawk on the street." business inventories for june, the last month of the second quarter, not pretty. down 1.1. so many ways to interpret this data. maybe the best way is it's going to remove something potentially revisions on gdp. but it also has a future implication. the more you demise inventory, of course, the more they're going to have to get rebuilt. is that what the equity markets are pricing in. it goes back to the same story we've been talking about for months. once replenished, will they be consumed in an orderly fashion or nonexistent fashion. that's going to be sfwreinteres.

the yields are moving down, especially in the long maturities. maybe a little bit of an adjustment to yesterday but also in response to very weak data. especially retail sales. back to you. >> thank you, rick santelli. the meager morning good vibe is gone. the dow, nasdaq and s&p which got off to such a nice start, are all below the mendoza line three minutes into the trading day. go ahead, ask me. >> what is the mendoza line? >> i have no idea. somebody wrote it, i read it. burt, the biggest loser on the dow. roberto pisani, maybe you can tell us. >> that's one i haven't heard before. maybe it's a technical point. i just want to a little news here. we've been talking to people here. there's system down at the new york stokes we're trying to resolve. update on that. clear indication of what's going

on. let's talk a little bit about what else is going on. real disappointment on the retail sales number and guidance. take a look at the big retail sales figures here. walmart did beat on the top line. the guidance, same-store sales up 2% in the current quarter, also on the disappointing side. walmart is up. kohl's has earnings better than expected. they didn't get much of a pick-up in sales. transport of stocks that are cyclical in nature are a bit on the weak side after having a decent run last week. finally, the solar stocks are notably weak here today. problems with solar sales globally. tradertalk.cnbc.com. how are we looking at the nasdaq. >> bob, we've given up the gains. down half a percent. the standout clearly remains apple. price target range at barclays from 208 to 188. they like not only the product pipeline but the free cash flow.

yahoo! is ticking unchanged. you can see the movement on some of the stocks. right now google still positive. microsoft just turned negative. hd version of the zoon. order it now. it's going to be on shelves next months. the chips did get out of the gate strongly. texas instruments over at rw baird but they've given back early gains as well. the semiconductor index is down .3 of 1%. palm is weak, however. downgraded at morgan joseph on slowing presales. telelab, down as well. shactman, talking about mendoza line, isn't that a batting average reference? we're going back to erin. i think the mendoza line is a baseball reference. >> of course, you would know. your expertise in sports. e-mails about it. based on the minnesota twins in 1970, batting average .215. there we go, mendoza line. >> so if you're below 200?

>> above or below 200, right. >> okay. >> now we know. our next guest says inves r investors getting out financials an techs doing well and back into energy and materials putting his money where his mouth is. jerry gordon, portfolio manager of the five-star fund up 6 5%. better than the market. and 32% for the year, year to date even greater out performance obviously since the bottom versus the market. terry, thank you for being with us. >> thank you for having me. >> a lot of people have been coming on here and making the case for why tech is going to keep going higher and not as many, but still, a fair number supporting financials. you're actually saying maybe get out of those trades. so first, make that case. >> okay. sure. we were very bullish in march when i was on your program and larry kudlow's program in murch. we were talking about the market bottoming and big rally in the second quarter. we've had that. the economy is going to get better.

what both ers about tech and financials is that everybody owns tech through the rally last year, the decline last year, the rally this year. seems like everything is positive for tech. comps get harder as we get to the second haft of the year. certainly get harder next year. i think you're going to don't see price decline in a lot of technology products. honestly, we're not capacity con trained and we built out a lot of technology demand over in the emerging markets on. on the financial side, i still believe we're in essentially a secular bear market start in the '06, '07. this the big rally. we had an enormous weighting in financials in february. we're virtually out of them now. i think it's been a great rally. i think financials will maybe match the market for the rest of the year. i just don't think you're going to have a lot of value from that standpoint. >> you made your case for why to get out of tech and financials.

now make your case forgetting into energy and whether as part of that bet you see energy prices going significantly higher from the $70 a barrel we see today. >> yeah, i think energy price, oil in particular, is going to work its way into the 80s, maybe high 80s. i do think we're going back to 150 in the next couple of years. a constrain, goitsing to continue to con strin. energy is higher but it will get worked down in the next 18 months. demand is going to come back. amiss all the cap x spending last year, we didn't add any more oil. we didn't find any more oil. we're not replacing any more oil, so we've still got tissues out there. at the same time, a lot of energy stocks, particularly in oil services area that we've liked for a long time, has really underperformed over the last six weeks. we think if nothing else, just a rotation a basis. time to take profits and financials in tech and move into areas like oil service, like mining, materials, gold. i've been buying gold stocks for the first time in six months the last week or so. you know, i think that's where your real opportunities are.

in the market where there's not a lot of money coming in, not a lot of money going out, it's really going to be flopping from one side of the deck to the other. and i think you've got to make that movement. >> you also say you own a fair bit of health care. >> i do. and one of the things that we've tried to do over the last five years in the portfolio is focus on area where's you either have a lot of intellectual property like health care. we own cell jeagene. i like abbott. it's unloved right now as people are getting warmed up with the economy, they've gotten out and it's gotten cheap. i think what we're trying to do is we're trying to sort of but a bar bell approach in our portfolio. have strong economic growth in one part of the portfolio and then sort of a more defensive bias in the the other part of the portfolio where we think there is intellectual property,

defense i believe produc defenseble product. >>. >> larry: jerry, thank you very much. appreciate you sharing your thoughts with us. jerry jordan. up next, gm's ceo fritz henderson joins our phil lebeau from the automaker's new battery plant of the chevy volt. but will the first electric vehicles swap our oil dependency for dependency of a different nature still on foreign countries? >> like bolivia. and then in the household of the american consumer, who controls the cash? you, mark? your spouse? your son? your daughter? your toddler? your tween? we continue with a true survivor, born with few resou e resourc resources.

welcome back to cnbc. i'm phil lebeau with breaking news. ford is announcing it's increasing production in the third quarter. this time by 10,000 vehicles. for the third quarter ford will be producing 18% more vehicles than in the third quarter of last year. again, that announcement just coming from ford a few minutes ago. meanwhile, general motors announcing this morning that it is breaking ground on a lithium im battery plant that will initially provide 100 jobs in the detroit area. these batterys will be going into the new electric chevy volt. joining us for another first on cnbc interview is general motors

ceo fritz henderson. fritz, as we take a look at the out to the industry ramping up production, you guys getting ready to increase or start production on lithium batteries. where do we stand in terms of overall demand and where it's headed from here for the industry? >> phil, as we looked at demand in the month of july, demand in the last week of july, it was a little bit more than a week, was about 30% higher than what the weekly rate was prior to that. obviously the impact of the stimulus, cash for clunkers bill, was quite significant. with the extension of that, additional $2 billion approach rated. we seen august get up to a very good start. we certainly anticipate sales to be relative -- to be robust, actually, in august and september. robust relative to where it's been. obviously still down from historical run, but a very good stimulus for our industry and working hard to keep sglup

frit. >> fritz, this is an auto industry that has a bad track record when it comes to increasing production, building too much and flooding them and then saying, we've got to cut pronts and production. how do we know this is disht, you will be smarter about increase in production? >> two things. first, our inventory attend of july was 450,000 units. we began the year in a situation unacceptable, about 870,000. we halved our inventory. we were in very good shape attend of july. now we have demand basically picking up in a pretty significant way. so the moves will make to add production and we will be adding production. we will be carefully considered, it will be thought about relative to maintaining the right level of inventory. we do anticipate, given the strength of this program, there will some falloff afterwards when it ends. you have credit coming back in. residual values are strong. used car prices are quite strong. some of the traditional leading

indicators for at least coming out of the bottom are flashing green for our industry. so while the impact of the stimulus from the cash for clunkers will go away, when the programs will go away. fundamentals with the market is beginning -- is beginning to recuperate. our job, your point, is to make sure that we're managing our production level to keep our inventory in line with the kind of details you would expect and then bill into the level of demand so we don't go through the wild extremes. >> speaking of green, fritz, the lithium-ion plant your opening today or breaking ground on pro vooids additionally 100 jobs. how many jobs do you think potentially will ultimately be going into your green program and whether it's the chevy volt or the batteries that go into your extended range vehicles? >> well, don't have a forecast of that today. obviously the facility starts out with one shift with 100 people as we start the volt production. the facility shall be designed to be flexible with respect to different types of battery pack integration. we designed the tooling and the

equipment to make sure we're very flexible. we anticipate the week as we grow the facility and do different types of pack and pack integration over time. our time has laid it out to be flexible. and we can certainly -- would certainly expect to grow from here. >> one last question, fritz. reports out of you were. you guys have an agreement with magna to buy a stake in opal, is that close to a done deal? >> magna did submit a revised document to ourselves yesterday as well as to the german automotive task force. we previously received from another bidder, both a proposal and a set of documents. phil, pretty thick set of documents so we're going through them here this week. anticipate after we get through them, making sure we understand what their proposal is. we need to consult with the german automotive traffic force it would not be fair to say we have a preliminary agreement today. but what we have received is an updated proposal which we view as constructive.

we need to now go verify it and go through the required steps of briefing both the automotive task force and understand how they will finance the deal and review with our board. >> still a lot on your plate. fritz henderson, ceo of ford motors. erin, there you have it. they do not have an agreement in principle yet on the sale of that opel stake. >> certainly a great day to hear from him. thanks so much to our phil lebeau. coming up on "street signs," are we ending our addiction of foreign oil to foreign batteries? it may amaze people who owns the technology. all the fact trisz being built to build batteries here and who owns them and where the t. stuff that goes into the batteries come to. >> raw material problem, too, huh? >> raw material problem there, too. retail sales for july falling, worse than expected. when can we expect consumer spending to rebound? which member of the family is

going to really drive that surge? here to weigh in, mike namyra, chief economist for the international council of shopping centers. and john folgony, chairman of comscore, they track online sales. john, i'll start with you. who is driving the spending? >> well, it's certainly not the mid to lower income people we're seeing online which really is measuring disposable income spending. continue declines versus year ago. some strength in the $100,000 over income segment, but you have to look at it by age and the people who are older, who worry about kids in school and retirement, they are spending less than they were a year ago. it's a mixed picture. >> you don't sound like you're buying into until the recession is over. >> i buy into the fact that we've hit bottom. but i think that we're going to go sideways for a while here. it's pretty clear when we look

at our data that the consumer is really buffetted by a number of different factors still. they are saving at a rate that is higher than it was a year ago. >> yeah. >> and a dollar saved is a dollar not spent. i think it's taking about one to two points out of the growth of the gnp at this point. >> mike, boy, i'll tell you, fairly prosperous area and we got a lot of shopping centers? what's going on here? >> they can see, the issue is a reflection of the session, depending on which -- >> some of the boxes have been empty for years now. >> yeah, well, part of it is, i think, the industry needs to refocus, is a refocus on what the consumer is buying. they're buying more and more services so that we need to shift spending -- shift the focus on services as part of

these shopping centers. >> and what about this -- when we just heard from alibaba.com, small businesses, so it's that part of the market. but he was talking about a big pick-up in orders for athletic apparel and other things, home improve chlt, not necessarily back to school, but he mentioned back to school. it's possible they've been over stocking and maybe we're going to have too much for back to school. it's possible we're going to see strength there. what do you say? >> i think back to school as a whole will be modest at best. we're actually projecting something up a little bit from last year in the back to school categories. but not particularly strong at all. >> mike, what about the traditional line of thinking, which is that teenagers are the most resilient spenders, they tend to, you know, continue to keep their allowances and they always spend and that's why you see those sorts of stocks do well. is that what we're seeing this time around or is that changing?

>> no, i think we're still -- i think what we're really seeing is the recession impact and the shift towards a central spend g spending. even on the discretionary purchases that are happening, very selective. now, as the recovery improves going far waorwarforward. i think you will start to see other parts of the income strata starting to come back to the market and starting to spend. there's probably a considerable about of pent-up demand out there and i think that's really the future for the second half. >> that's what it looks like at my house. thank you. oh, we've still got a minute? okay. who stands to get hurt the most from teenagers not spending a lot? would it be the clothing stores, the hot topics and things like

that? >> i think they have been hurt. and i think that, yes, i think that's certainly where you would see that. >> so that is where you would look for the first time since the rebound? >> no, actually, i wouldn't. i actually do think that ultimate li you'll see that rebound in the luxury area first. now, there's no optimism that that will happen, but i think that that's really where you'll see it first. once the improvement in the stock market continues, once the economy continues to show better strength. >> okay. >> i think that will be the key. >> mike, thank you both for your thoughts. let's get to bob pisani, there has been a lot of noise on the floor today. i think bob might know why. >> there are a lot of issues at the nyse right at the open. some trades were declayed right at the open. there were floor traders, for example, who didn't get order

acknowledgement, which is very important for their customers. that has all been resolved now. everything is working fine. they are still working to resolve earlier issues with the earlier orders that didn't go through properly. so bottom line is, i've asked for an interview with the head of floor operations, in charge of the systems down here. we'll see if we can get him on in a few minutes to explain what happened. still waiting for that. back to you. and next -- sglo-- >> up next in your cnbc adviser network, why now in all the turmoil and contentious town halls around health care could be the best time to grab some stock in the health care sector? plus, the faber report, david has more about the cit headline that's cause that stock to surge yet again. we will be back with that. market coming back a little bit. we're down about 21. we'll be right back. reading about washington these days... i gotta ask, what's in it for me? i'm not looking for a bailout, just a good paying job. that's why i like this

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network, haden joins us, good to have you with us, verne. >> thank you. good to be with you. >> health care, obviously people get very nervous right now. there could be big changes and that could change how much money, for example, drug companies make or health insurance companies make. you do think this is the right time for two reasons. what's reason one? >> first reason is because there's a lot of concern as evidenced by the town hall meetings and so forth about the extremism of pelosi and company's proposals. to they're combating that. what will happen that, along with 17 testimonies who are somewhat moderate, they'll fashion a more moderate bill. it won't come out as extreme as it appears to be right now because of a lot of the protests, lobbying and so forth right now going on. there's serious moderates working over there in the corner trying to fashion a great bill. when that passes, and i think that's the kind that will pass, then the bull market will be relieved. i think it will help boost the market up the other is the baby

boomer phenomena, where, you know, i'm ahead of the baby boomers but i've had hip replacements and bypasses, it's simple for the things to comfort massive amount of baby boomers. great demand in the whole health care industry. i think to now do that will be getting in early, before, i think, a couple good funds will go up that are part of the health care industry. >> i know that those of you watching, can see this. those of you listening will now hear it. vern's two plays, t. row price health sciences, prhsx, and the vanguard health care fund to trade on that. the vanguard went up. thanks so much. appreciate you being was. and now let's get to the fab. >> thanks, erin. worth updating people on cit. it wasn't that long ago that i was reporting on cit, almost every hour on the hour. as it appeared to be with an

approaching chapter 11 filing. cit managed to move through that and underwhich they provided the company $3 billion. that has given cit some breathing room. this morning i do get news from the company that preserve tax benefits that they currently have that might have been threatened if, in fact, the ownership structure of the company had changed under u.s. federal tax rules, if one or more 5% shareholders actually increase their ownership by 50%, they could lose tax benefits. those are important for a company like cit. believe me. shields a lot of gains with those kinds of benefits. and so this will now not impede cit's ability to pursue what they are saying. as well, the company also detailing, i guess, if you want to call it that, its close

relationship with the federal reserve bank of new york. or deepening relationship with the federal reserve bank of new york. it's going to be required to report regularly to the federal reserve bank of new york, submit plans and certain restrictions relating to corporate governance. needs prior approval to payments and dividends and drib bugszs, the recurrence of debt, purchase of redemption of stock. of course, cit is a t.a.r.p. recipie recipient, remember, to the tune of $2.9 billion. as i said earlier, the company is still trying to restructure. still trying to make that transition from a capital market funded business to one that will ultimately be funded by deposits. and its bank. and it's still got quite a ways to go before that transition is something that investors can feel confident is going to hold. so we'll see how it goes. cit stock price, reasonably decent run. it benefited -- you can see the

long haul is not very good, but it did benefit from that short squeeze that we saw in the option stalks if you want to call it that. there it is, up today again on this news. we're going to have more news in the future, in a couple of months on cit. for now, we've got breaking news on eia inventory data. brian shactman, over to you. >> looks like we have a build of 63 pcfs and we have john wood to talk about it. that is slightly below your expectation? >> yes, a little bit bullish. we were expecting, you know, 65 to 70, and we just got a little bit of a surprise here. we're a the bottom end of our numbers anyway. low 40s, mid 30s. we stood for a correction. there is what we have right h e here. up a couple of cents, trading above 350. >> the rest of the complex has been up. natgas has been down. the whey the market has shifted and the dollar. if you could ask for anything

else, actually trading on fundamentals. >> without a doubt. when we traded up above $4, once we broke that $4 level we hovered around $3.70. pretty much followed suit down to that low 40 and saw it today a number today and, boom, back up trading again. >> we're still looking at overall, something we could have record stocks by fall if we continue to build at the space. >> yeah, there's really just no weather across the country. hot out in the west. in the east, we're experiencing really mild temperatures. storms forming off africa have been downgraded right now. there's really no storms out there or weather to speak up. >> right now they talk about the first storm, not really a factor. the one off africa might be an issue but traders are not dealing with that. >> not at all. there's really nothing out there to speak of. you get excited about a storm out there, it gets downgraded. we're just in dire need of news. trading off of fundamentals. get down to $40, hold that

number, boom, go back up again. >> we did have a build but it was less than expected according to most estimates. we are slightly moving a little bit to the upside in terms of price movement. back to you. >> thank you very much, brian shactman. and next, options guru who warns cash strapped and consumers can not survive another run-up in gasoline prices. it's up 16 cents over the past couple of weeks. each tick higher. crude goes, pushes any recovery closer to going off the rails. this is "squawk on the street." we are recovering still as we said, we're down about 15 points on the back of the unexpected negative surprise on retail sales.

consumers are still cash strapped. retail sales as we saw today, weaker than expected. consumer sentiment, up perhaps foretold that. but what if there was a further run up in oil prices? we have already seen prices at the pump go up. as i think about 16 cents or a little bit more over the past couple of weeks. is it going to get worse? joining us now president of liberties trading group and author of "the complete guide to option selling." brian shactman also sticking around with us. good to have you with us. let's start with you. so gasoline prices, obviously they lag a little bit. first oil goes up and the refiners to the pump. we're still about $1.20 per

gallon below where we were last year. >> we think the consumer is going to have a difficult time supporting $3, $3.50 gasoline. seems almost impossible to us. the fact that oil supply in the united states is near 20-year highs. the consumer is really watching the budget right now. we think that the oil in the $70s right now is over priced. >> erin, one thing you want to think about is demand of construction happens. most likely with the way the economy is the demand construction is at a lower price. we don't have to go to $4 to get that. the other thing you have to think about is the they're refining less. there's not as much gas being made. there's so much supply but the refining less so there's less coming to market. >> part of the reason the oil is going up is because of the u.s. demand. we get to this issue, it's china. maybe a lot of that is stockpiling and not really economic driven. but a buyer is a buyer.

>> we feel that the one thing we learned over the last 24 months is that commodity prices aren't always trading at the fair value. we had oil go from 40 to 140 back down to 40. more often than not oil prices and other commodities are base tond direction we travel. eventually come down to fair value. when we were hitting $140 last year, obviously the fundamentals didn't change that much. we think a lot of the really is speculatively driven. you can watch oil tick per tick with what the stock market is doing. when the stock market finally gets its correction, when it levels off at a particular point, we see that the oil will find its fair value shortly after that. >> your traders would agree with that. they would say fair value price for crude oil is not $70 range, much lower. the issue is that's the price it's trading now and that's the way the market bears. they would totally agree with it. right now it's about future growth in the u.s. like erin said, what's happening

in china and india. >> yeah. see, here's the problem. i can't pull into the gas station and say, oh, that's above the fair market value. i'm only going to give you $1.95 a gallon. how much of this -- you said it was speculative. is it still liquidity -- a liquidity driven phenomenon? there's a lot of liquidity going into the market. >> you can't do a thing about it right now. obviously there's a lot of money on the sidelines that look for asset based investments right now. oil is becoming an investment right now so many different individuals. the fact that we're trades in the $70s and oil is nearly spilling on the ground in the united states, the consumers are so down and out right now. the fact that we are trading above fair value that will be rectified here very soon. >> conceivably, we could really -- oil prices could

really crater? >> we think that we have the supply is nearly at an all-time highs right now. opec has -- >> we should be, what, $30? >> we should be probably around $50 to $55. we do have china and india. their economies are doing well. the u.s. is still by far the largest consumer of oil. we certainly don't have the extra money right now to push prices to higher levels. >> all right. steve, thank you. and brian. >> i believe we have breaking headlines right now on the olympics. let's get to darren rovell for those. >> hi, erin. the international olympic committee executive board has recommended two sports for inclusion for the 2016 games. those sports are golf and rugby. those sports that would now be out are baseball, softball, karate, squash, and roller sports. by the way, tiger woods said that he would play if this was eventually ratified. this has to be now approved until october when the ioc full

membership meets and it meets to get a majority approval there. but tiger woods said he would play in a 72-stroke match play kind of in the 2016 olympics. he would be 40, so assuming that he's not retired by then. guys, back to you. >> darren, jim cramer and i -- you weren't privy to the discussions that we have had over the years. i think it's important to point out that golf is not a sport. >> oh, competitive eating is a sport, mark. >> it is a game but it is not a sport. >> squaush is a sport. >> they sweat. no, we'll have -- we're going to have to have this -- >> la, la, la. >> we'll have the discussion off the air. >> thank you, darren rovell. >> squash is a sport. try walking up the stairs. >> but golf? give me a break. it's not a sport.

it's a game. coming up, our young and successful series continues with one of the youngest-ever ceos of the publicly traded company. >> at the ripe old age of 27. we'll be back. m racing cross coy in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t.

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your young and successful series continues on this thursday morning. the youngest african american ceo of a publicly traded company in history. 27 yard effron taylor, socially responsible economic development firm. he's also featured in mark victor hanson's new book. great to have you with us. >> thank you. >> lots of questions. first, youngest ever african-american ceo of a publicly traded company. what does the company do?

>> city capital socializes in urban communities to help them become self sufficient. especially in economic times like these there are a lot of things being talked about as far as the bailout, supplemental support but we're big believers in communities being self sufficient and independent of helping themselves. >> loans? >> you support -- >> small businesses, green energy, et cetera. we've done housing and development programs where we took all the housing from the foreclosure and put them back together. taking actually extra spenders out of the system and giving them jobs and retraining them to help rebuild the community. even with green energy, we lad a biofuel initiative that we fund for minority companies, get them involved in biofuel. >> how did you get started? >> i got started a long time ago because we were a little bit short on money for video games and my mom had challenged me to be a entrepreneur, make me own and success in computer skill set and starting a dotcom company and became successful.

i guess in high school, we had 13 employees. raised almost 3/4 of a million dollars in high school. and i realized, man, you really can do anything. i hadn't went to college yet. still in school. had a business. high school, had to change my schedule so i could run this profiting company. and my teacher kind of switched up and ended up working for us. it was an experience. it really opened my eyes that despite my economic beginnings, where i started, even my race and my age, i could go on to accomplish some things, but more importantly as i got older i realized i had to start giving back and helping people. >> the internet gave you an advantage, though, did it not? if you're founding a dotcom, it's not immediately obvious to everyone out there that you're very young, that you're african-american, nothing. you're just -- it seems to me, and we had another guest earlier this week, that kind of boils it down to with will you've got a good idea or not. the rest of it is irrelevant. >> absolutely. if you have a service usable and

relevant to that particular demographic. you have a winner. we created a research engine for high school. if you are in high school, you don't have a four-year degree, five years of experience, where are you going to get a decent job outside the traditional maybe fast food thing. we created a forum online for students to connect with high-paying job. me had paid $17 an hour to watch tv. that was one of our most popular ones. >> what a shock. >> i would get paid $17 an hour to be on tv. >> you didn't graduate from college yourself. which is something amazing, by the way, i seem to find from bill gates on down. a lot of people who do really well do not bother with college. >> gates left harvard before he graduated. >> right. >> and you started, but did not finish. >> i really didn't get to go. so we had the company in high school, didn't even really -- >> didn't even bother with it to begin with. >> had the plap indications to get in. and the funny thing is many people think, oh, genius kid, brought up and graduated bottom

25% on my class, technically on the gpa scale and didn't get a chance to go to school. i feel i've done well for myself. employ 60 people now, all of which probably have degrees and mbas. at the end of the day i don't think anybody can be define bid the degree they have. it's all about opportunity and how you leverage it. >> we're out of time. we want to make sure we mention your book. "creating success from the inside out." ephran w. taylor. good luck in the future. >> thank you. >> hope your success continues. >> and be sure to tune in tomorrow, 23-year-old nathan, self made millionaire, founded an online retailer distributors musical instruments. >> online. how come my kid isn't rich? i don't think he's holding up his end of the deal. >> maybe if he played a game like golf instead of a sport like lacrosse. by the way, it is the olympic games, our viewers point out, which means golf can be in it.

we do breaking news before you react. let's get to mike huckman for it. mike? >> thanks, erin. yeah, breaking news out of the big generic drug maker mylan, they just issued a press release saying essentially that the food and drug administration has given its manufacturing plants in west virginia the all clear. this was a plan for allegation to raise recently by an article in the "pittsburgh post gazette" alleging that employees over. rode quality control signals at the plant. the company is saying in this press release that the nooup article which included unfounded and highly inaccurate allegat n allegations based on improperly obtained documents, uninformed third party commentary and anonymous resources. the fda close the report with no deficiencies found and no fda warning issued. >> thank you very much, mike huckman. next, the roller coaster ride that is the summer rally.

look, we're back up, mark. >> what a day. >> a seesaw. we have a turn a turn-around fo three averages, the move, the reason and the names. next. >> but first, oh, trish? >> he's mad, because i almost diplomat -- almost forgot. >> well, i thought you were going to do the singing this time. >> okay. coming up at the top of the hour, we have a great show for you guys. we're going to talk about walmart and discounters in general, faring so well in this recessi recession, but what happens when we come out of it? has the consumer changed its behavior for good, and does it affect how you do in the retail sector? and executive compensation packages to the big pay czar. so in "call of the wild," we ask the question should guaranteed bonuses be allowed? all of that, plus a media stock up 55% today. how about that? we'll be talking live with ken

lowe. we have lots ahead on the top of the hour. but first, mark and erin are back right after this break. fi, traders learn from the pros. say you want to backtest an entire portfolio of stocks. market experts show you how through fidelity's extensive trading knowledge center. and fidelity gives you free research from 15 independent firms, with accuracy scores... to help you decide which analysts to trust. find out why more and more active traders are turning to fidelity for a smarter way to trade online. trade like a pro. trade with fidelity.

just a quick clarification. want to put this back up. jerry jordan, the fund manager we had on earlier, we had an incorrect number, and we want to be sure it's clear. his fund up 33% so far this year. make sure we correct it, mark. >> okay. is it time for mo 5? >> yes, mo 5. >> okay, wall street kicking negative activity to the curb. someone is getting very flowery in their writing. nearly 90 minutes into the trading day. yeah, we're up again. names like alcoa, steel dynamics, all posting solid gains. why the turn-around you ask, allen valdez, and the senior vp of strategic initiatives at gatone and company join us. allen, what's with the market today? we started up, went down and now we're up again? >> i tell you, it's a strong

market. you can't knock it down. you have jobs numbers worse than expected, retail sales, some worse than expected and the market hangs in here. it's not going down. it's going to hang in all summer long, and trade sideways or upwards like we're seeing now. >> ernie? >> when i heard the gdp numbers in europe i thought we were in for a big rally, we got here, the futures looking good, i got here, the retail sales numbers threw cold water on it. and here we are bouncing back. i don't get it. we have been talking about this before the air, and it feels like we should be pulling back but not happening. >> wait a minute. i can make this go either way. i can make it go allen's way. gee, no matter what bad news, the market hangs in there. but then i can -- i can go hey, you know, we have some really great news. europe, germany and france, gdp up 3%. walmart is doing great. why aren't we higher? >> the p and e ratios, 17.5%, fairly close to valuation. you have a lot of confidence we're going to be booming --

>> nervous nellie. >> every time we have a pullback, unlike last year when things really tanked, guys are jumping in. so you see hedge funds and money managers getting in. so the train has left the station. so they're getting in any time -- any pullback, they're in. >> yeah, that i see happening. >> yeah. >> a lot of people i've talked to are -- >> which could get you to the end of the year. >> and i'll get in the first chance i get. >> everyone is hoping for the pullback, even the little ones. >> thanks to both of you, bernie, allen. >> all you had to do was listen. >> it's time for mambo number 5, mambo number 90. would it be better if you played golf? >> check out our markets. he ran off with his secretary! she's 23 years old!

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