vegas. avatar is expected to transform the movie business. 20th century box is putting up free 15-minute previews in theatres four months before the movie comes out. >> let's get to the market action, which is also cool stuff today. the dow up triple digits, the nasdaq above 2000. and bob pisani kicks it off down at the new york stock exchange. a double bang, bernanke and the housing bolt? >> much that's right, mr. bernanke talking about the economy being on the verge of recovery, and also four months of gains in existing home sales. we haven't seen that in several years. so that's certainly very good news here, as a result, home builders are doing very well today. four, five, maybe six percent gains in all of the major names, and remember, these stocks have gained 50% since their bottom in march. this has been a very strange week. health care outperformed dramatically on monday, but since then, we have had four straight days of gains, and frankly, it's the cyclical names that are doing a lot better,

including some of the oil names. oil service box have done very well. in fact, the top performer overall in the week once again here today, all up 4, 5, or 6%. trader talk.cnbc.com for more. scott, we're up, what, 1.5% on the nasdaq. >> absolutely. of nasdaq above 2,000, big cap technology stocks performing across the board. apple, raised, they like the long term plan. google, microsoft, ebay, yahoo, dell, all to the plus side. but man, getting hammered, 7.5%, downgraded over at credit swiss after giving a pretty tepid outlook for 2010. starbucks up the prices by as much as 30 cents on some drinks, cutting the prices on some of the other easier to make ones, up 2.25%, and solar stocks getting banged on the jeffrey's downgrade of the sector. down to the nymex. >> thank you, scott. oil prices hitting their highest levels of the year so far, but it's been a busy week, not just

a busy day, prices, and the bullish thesis appears to be working across the board. you have an economy that the bulls argue is getting better. you also have a weaker dollar. that certainly helps prices higher. and on top of that, technicals and the stock market are working in this oil's favor, where it's not working is the natural gas, a glut of supply is keeping prices down there. rick santelli, over to you in chicago. >> thank you, rebecca. boy, everything changed in the fix income markets at 10:00, when existing home sales hit. look at the intraday charts, the winner, the five-year note. it closed yesterday around 24, was around 244, but before the data hit, 255 yield now. the ten-year, a dozen basis points higher in yield. now, what exactly is going on? is we all know we're optimistic about that data, but i will give you one thing to ponder. it is the fourth month for month over month gains, but it's the first year over year gain in 43

months. sue, back to you. >> wow. >> holy cow. >> thank you so much, rick. that's one that we're going to jot down, because they can use it for the rest of the day. great factoid there. ben bernanke, fed chief speaking about the economy today at the fed's annual meeting in had jackson hole, wyoming. and following a year of emergency measures to jump-start the economy, everybody was waitsing to hear whether mr. bernanke spoke about the fed's exit strategy. senior economics reporter steve liesman joins us live from jackson hole with more on that. hi, steve. >> hey, sue. i didn't hear anything on exit strategy, although we did have bernanke exit the meeting room for a bit and walk down the stairs as he does every year. he takes a little stroll. this year, interesting choice of compadres to stroll with, the central bank president, and the head of the bank of japan. he said the prospects of growth are good for the near-term, economic activities leveling out. the fears of a collapse have -- financial collapse have receded

and markets are functioning more normally. let's talk about what some of the trains are. he said financial institutions still face significant financial losses, households continue to have trouble accessing credit. the recovery is likely to be slow at first, and unemployment will decline only gradually. last night, our special report from jackson hole, i talked to top economist martin feldsteen about unemployment. >> the unemployment rate is going to continue to rise, and employment is not doing well. we're seeing -- continuing to see quarter of a million job loss every time they report a number. >> and on this issue of exit strategy, sue, which is so very important and interesting, what i'm hearing is a divided fed. maybe a sharply divided fed, some who want to start planning right now, and maybe putting some of those exit strategies in place, and others are willing to be much more patient. see the recovery gain a firm foothold. sue? >> let's talk more about all of that, steve, and bring in steven

stanley, chief economist of rbs, and north american economist at b and p parabomb. nice to have you. steve, what impressed you most about mr. bernanke's speech, being pibilled as the most optimistic in the year. is that overselling or not? >> the only thing he talked about in terms of the current situation was one paragraph. it was really kind of a slapping himself on the back, and giving the fed credit for having helped brought us through this crisis. more of a retrospective than a prospective look. but, yeah, i mean, we're coming out of it. the economy is stabilizing, and we are likely to see growth in the second half of the year. so, you know, i certainly agree with bernanke's characterization. >> what do you think, brian? >> again, i think that's quite right. i think bernanke had to -- the chairman had to actually point out all of the problems that existed, the panics that we went through, the fact that he was so innovative and creative, and in the process. and basically, where we are.

we're at this point -- we're growth resuming, it's likely to be relatively slow. we probably will have employment problems maybe for another year. and indeed, the credit problems are not solved. the commercial real estate problem exists. we read about it, fdic is really on the line to do a lot. so there's -- as he said, critical issues remain, and i guess that's what we have to -- these challenges are ahead. >> steve, the market is acting like he certainly said enough, or they were pleased enough with what he told them. >> you know, i'm sort of in steven stanley's point. there was one paragraph in there on the economy when bernanke wants to tell us about a change view on the economy, my experience with this chairman is that he'll do so in very plain and easy to understand words. so i don't think this was the time when he made some major shift in his economic outlook. i think he's doing what he always does, which is acknowledge the economic realities, hey, the economic numbers have improved. but hey, there are tremendous strains out there.

we just talked to axle weber from the bank, and he said, look, german numbers are for real. we expect them to be positive, but we have lowered our estimate of potential growth in germany, which is a huge, huge thing. it means they don't ever expect growth to be as robust as it was over the past five or six years. >> but steven stanley, a lot of people were looking for some clue as to an exit strategy. if you look at the newsletter writers for the last two days, everybody was going to be listening for that. and if indeed we are on a slow road to recovery and japan is doing better and germany is doing a little bit better, were you dispointed you didn't see something along those lines from the fed chief? >> no, and i think the people who are so eager to hear that will probably be disappointed again and again over the next few months much the fed has shown us that they're going to be very cautious. they have been very cautious in extending the liquidity programs, already extended the talf into 2010. and i don't think they're going to take any chances about nipping the recovery in the bud. >> what does that mean for when

they raise rates? >> hey, guys, can i just chime in here on this issue, that, you know, this is not a time when the fed is going to announce plans for an exit strategy. what's going to happen this weekend is there is going to be really serious discussion about when to implement an exit strategy, and what that exit strategy ought to look more specifically like. i don't think even the guys on the fed who are sore of more near-term pull the trigger on tightening are ready to do that any time, perhaps even this year. >> and brian, you don't see it for quite a while. >> correct. i think we still have to go through an inflation issue. my forecast does call for relatively slow growth, not maybe a lot different from the chairman's. but indeed, inflation likely to come off next year, and that may even provoke thoughts of expanding monetary stimulus, rather than taking it away. >> i mean, you don't see them raising rates until 2012. >> correct. i think we've got a deflation problem ahead, probably likely to be 2010 and '11, and consequently, the fed is going to have to make sure we're out of the risk of falling deeper

into a deflation. sorry. >> wow, that is contrairian. more stimulus, not less. >> thank you all, very much. steve, great special. enjoyed it very much. >> thank you. appreciate that. >> enjoyed it. >> have a good weekend. so the bears made a lot of noise this past monday, but it's been all bulls since then, despite bad news on china's market, for example. what's behind the resilience of the u.s. market this week? today especially. why are the bulls hanging so tough. we'll talk with our task force about that in a moment. >> and also this hour, regulators are now looking at easing the rules for private equity to buy failed banks. which failed finances are on the hit list, and more americans disapprove about the hamming of health care reform. is it time to drop the public option? >> and get ready for the "fast money" halftime report. the bulls back on. we are back in two minutes. 

some of the most widely clicked stocks on cnbc.com, citigroup, bank of america, ge, aig, ford, citigroup. day two above its 200-day moving average, hasn't been there since september or october of last year. >> to the markets, positive comments from fed chairman bernanke, bigger than expected in jump in homes sales. we should also point out, providing volatility there, but what's going on? what's going to power the markets going forward?

joining us in our task force to do, steve staller, and jack brujian. steve, i know you're skeptical of this market, anyway. why do you think we are as resillient this week as we were? >> i think it's a traders' market. this is an opportunity for traders to make some money. for individual investors who have socked it away for retirement, caution is the word. >> so are you taking profits during this rally period? >> well, i don't think it's so much taking profits as that we have been positioned in areas that provide high cash flow, and we're really positioning ourselves to get ahead of the curve in anticipation of impending inflation, and perhaps some changes in the tax code, as well. >> so you're buying commodities, and assets and things like that. >> well, i like pipelines that deliver natural gas. >> okay. >> being paid on the volume of the gas going through the pipelines. and you may laugh, but i like being on the buy side of

commercial real estate right now. >> why? everybody says that's the next shoe to drop, the next debacle. what do you see that they don't? >> well, you're going to have distressed lenders, obviously, and currently they're selling off mortgages, and you're going to have distressed owners who are going to be selling property. but the property that's being bought is not necessarily distressed, but the price certainly is. so i think there is some fantastic opportunities out there to buy high-cap rates in anticipation for inflation and the recovery. of. >> jack, are you as skeptical, or do you think this is a trading play here, or do you think this rally really has some legs? >> well, i think it's a traders' market, i think steve is right. remember that 10, 15, 16 level was such a big area of resistance, we kept chopping off and watching the market trade within the 3 or 4% range between that and the 980s and 975 area. but what we really want to do is see when this market is getting fully priced. even goldman sachs had 1050 as a

target. >> and put it in perspective. >> we're not that far, exactly. the one thing i will point out, obviously this home sales number wasn't up to really propel us through the area, get a lot of those weak shorts out of the market and more importantly, trigger some of these asset allocations going on, which incidentally is exactly why we're seeing the yields on the ten-year going up, right now. money coming right out of the ten-year and going into equities. and this is what we call the reluctant hold your nose and buy 'em type of rally. >> we had a guest on who said he doesn't see the fed rates raise until 2011, but if they're ahead of him, it doesn't matter, right? >> we all know the fed can help manipulate the short end. it's the long end. and incidentally, watching what ben bernanke was doing, what our fed chairman was doing. remember, mohammed ee ee el erie out, and the fact they were walking together was the most important thing out of that meeting. >> the body language.

i love that. thanks, jack. good to see you. steve, thanks. have a good weekend. >> up next, friday is the day the feds announce different bank failures, and so we're waiting to see what happens this afternoon. and with more and more of those failures, the fdic now wants to make it a bit easier for private equities to buy into failed banks. of so who is going to step up to the plate? and which assets will they buy? >> and then a little bit later, google in the cross-hairs again. why are the biggest names in technology targeting the search giant? we'll tell what you it means for google. "power lunch" is back in a flash. carol, when you replaced casual friday with nordic tuesday, was it really for fun, or to save money on heat? why? don't you think nordic tuesday is fun? oh no, it's fun... you know, if you are trying to cut costs, fedex can help. we've got express options, fast ground and freight service-- you can save money and keep the heat on. great idea. that is a great idea. well, if nordic tuesday wasn't so much fun.

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so which banks might be up for grabs? if the new rules do take effect and which buyout firms will snatch up the banks. more from david carry at the deal and francessca with the financial times. francis francisco, i'll start with you. very tough measures originally. but is p/e going to buy into this? >> we're going to know. it appears they're going to ease the big one, which is a requirement that each bank bought by a private equity firm has a cap ratio of 15%. that's a lot. and they're talking about going down to 10. of that's still a lot. so private equity firms that really specialize in financial stock, the likes of lone stocks, or even the very, very big one, blackwater, they are the ones that can stomach such a big capital cushion. >> david, help me understand something here.

we were talking about capital ratios and how long the private equity firms have to hold on to these banks. has the fdic dropped this other big issue, which is they didn't want private equity owning and having complete control of these banks at all, because they didn't them to have a bank and other portfolio companies benefiting from the bank? is that issue gone away because they're so desperate? >> no. there are -- the fdic is -- there are signs that it might ease some of those restrictions. but basically, it's not going to turn -- just turn banks over to individual private equity firms. the ownership structure has to be sliced and diced in a way so that one firm has -- >> so outlawin demac, for example, where we saw soros and michael dell and flowers and everybody and their mother in there. >> yeah, they are talking about in this new set of rules imposing restrictions on actually capital restrictions

where if one group owns, say, two or three banks, that those other situations have to guarantee the capital of holdings, as well. >> francisco, who are the players we expect to step up and buy some of these failed bank assets? >> i think it depends on the rules. but the rules are as they are, so no flipping for three years, and maybe a capital cushion of 10%. i think you'll see the very, very big players, kkr, black and carlisle. those are the guys that have the financial resources to make this work. and then the very smaller specialized players, lone star funds is a private equity fund that has bought banks all over the world. so these type of banks. nothing in the middle. i don't think you'll see a flood of private equity coming into the market, because this has been really tight and it's difficult for them to make money out of these banks. >> id, what about the assets themselves that many of them on the books are going to be difficult to unload? they're underperforming, and that's an issue for these companies, as well.

especially if they have to hold on to these situations for three years. >> right. well, there are still a lot of toxic assets in the books of these banks, but i believe the fdic and some of these past deals has had an aarrangement with the private equity firms. they did a bank with the united deal. so that eases some of the risk. >> in other words, the fdic would assume some of the lost. >> i believe that hasn't changed, and that's within demac and bank united. of. >> do you think they'll get a good deal at this point? >> i think private equity is sitting on a mountain of capital, it would love to invest in some of these things. private equity has a long history of making money in bank bailouts, heading back to the sa & l crisis of the 80s. i think if they rebuild and get back on their feet, the private equity firm can make a lot of money. right now they're just fighting barriers that they think work against these things being profitable, investment for in

the tier one capital environments. >> why don't they just let them buy the whole thing? why can't a private equity firm buy 100% of a bank? >> oh, because they can't. if they do so, the whole private equity funds becomes a bank holding company, they certainly don't want to do that. >> all right, guys. thank you very much. appreciate it. >> you're not buying this, are you? >> she's skeptical. >> yeah. >> all right, obama in a new poll. ooh% disagree with his health care reform. nancy pelosi, no public option, no health care bill. is it time for obama to drop the public option and take his chances? sparks will fly in our "power grid" debate. >> and get ready for the "fast money" halftime report. melissa? >> hey, guys, nice rally under way, but it is expiration friday. also there is a breakout under way in retail, we'll tell you where to look, and hit the charts and maybe give you some buying opportunities there.

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50% of those surveyed disapproved of the president's handling of health care reform. one of the main sticking points is the public option. should he keep it or should he just drop it? squaring off in the power grid, our cnbc contributor keith boykin and political analyst joe watkins. you each get 20 seconds at the start. joe, i start with you. why should he just drop the public option?

>> well, why should we make -- why should government be the enemy of private industry, and why should private insurance companies have to compete with the government? they can't. private companies have to make a profit, government doesn't, as we know all too well. and why ruin a system that needs some work but doesn't need to be completely overhauled. >> wow, he did that in ten seconds. keith. 20 seconds on why you think he should keep t. >> the poll also shows that the majority of americans support a public health insurance option. the majority of americans believe that we do need to have some sort of competition in the system, because the prices are too high. and all we're talking about is give people a choice. if you don't like the public insurance line, don't use it. >> you know, joe, right? we need more choice, right, so you could get rid of insurance rules that prevent you from buying -- you could get rid of tax structure that makes it impossible to get a private option, because end up with your employer's insurance? >> the system we have right now gives us choice, what we don't want is a government-run system that will raise the deficit by

$200 billion, and limit the amount of choice that we have. that's what we're going to have with this government-run system. it's a system that not only punishes insurance companies, it punishes small businesses, because it's going to levy an 8% tax on small businesses that don't currently insure their employees, and also give them an income surtax. this is all bad stuff. why does business and small business have to be the enemy of government? it doesn't have to. and we don't need a health care system that's going to destroy what we have, limit our choices and cost us money. >> steve? >> joe, i think you're the only person in america who thinks the insurance system we have right now is working. clearly, it's not working. we have 46 million people who are not insured. millions more who are under insured. and people are satisfied with their health care, but not with their health n, but they don't discover until they have a problem, like getting sick. you would think the health insurance company would cover you when you are sick, but that's when they drop you. of. >> keith, what i don't understand is we have public options already in this country

and various states, tennessee has done it, massachusetts, maine. none of them have been able to control costs. i still don't understand how this public option is going to control costs. every single plan we have seen -- >> that's not -- >> hold on. >> first of all, the costs are being controlled in massachusetts. and i don't know what studies you're talking about, but i've seen indications that costs are being controlled. but secondly, we don't have a big enough pool -- >> they're being cold controlled from the top down, saying you know what, we're not going to give this program anymore money because we can't afford t. it was supposed to work the other way. there wasn't supposed to be as much demand on the states, because there was going to be cost controls, because there was going to be so much preventative medicine. >> well, you can't have to both ways, either the costs are being controlled or they aren't being controlled. regardless of what is being controlled. the second point i was making before -- >> so you would say norationing by the federal government. and we'll cut off what we're going to provide. >> no, no. that's not what i'm talking about. but the point i'm making is we

don't have a big enough pool of people right now. the costs are already increasing dramatically for people who are paying premiums, which have skyrocketed over the past ten years, 58%, according to some studies. so we have to deal with that, with the current system we already have. but if you have a big pool of people out there who can compete, who can pool their resources and compete, the government has an option, an opportunity for people to choose something different. if it doesn't work, you don't have to like it, you don't have to choose it. >> joe, aren't there better ways to get to what keith is absolutely right about? we need a big pool of people, all in there, so you can spread out the risk. how do you do it? >> there are ways to do it, certainly not going to happen if you're rushed through this $1.6 trillion government bill that most members of congress, by the way, have not read. they're going to be voting on this, because of partisanship, as opposed to what's in the best interest of the american -- the american people. and this is a real -- a real sad thing. you just heard the other day that nancy pelosi said they might even rush through a bill

without the help of republicans, without any republican support, because they need to get this done. well, at the end of the day, it's all about america and making sure americans have the best quality health care they can have. we have the best health system in the world, and it has some areas that need to be refined, that need to be sharpened and reformed. we don't want to throw the baby out with the bath water. >> last ten seconds. >> last year, i was able to pay for health insurance for part of the year, because i'm self-employed. don't tell me the system is working, it's not working. we do need reform and it's shameful that republicans are being obstructionists at a time when the majority of people clearly want change and reform and republicans need to get on the ball. >> keith, joe, thank you. good to see you both. we'll have you back. coming up, existing home sales. they chalked up the biggest percentage increase in more than a decade. so is this it? have we turned the corner finally? diana olick is on that story. >> we have been turning a lot of corners, haven't we? >> yeah. meanwhile, the stocks of the

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all right. probably the strongest sign yet that housing market is pulling itself out of its three-year slump. diana olick joins from us washington with details on some

pretty impressive numbers, diana. >> they are, sue. home sales surging back with a vengeance, up more than 7% in july. but only on the low end of the market. foreclosures made up more than 30% of all sales in july. and let's take a look at a breakdown of what's really selling. sales of homes below $100,000 surged almost 3% -- 39% in july. we're up 9%. but when you cross the quarter million line, it all goes south, and the higher the price, the more sales drop off. over a million, and sales are down 23%. over $2 million, down 32%. >> sales are still very sluggish on the very high end. one interesting development is that despite the historically low mortgage rates, we are seeing increasing number of buyers, by passing the mortgages all together, going all cash. >> now, realtors are very concerned about the expiration of the first time home buyer tax credit at the end of november.

a full 1/3 of all home buyers in july were first time home buyers, and without them, realtors are afraid they could throw water on some of this real heat in this rally. for more, go to the blog, realtycheck.cnbc.com. sue? >> thanks diana, we have an interesting story to speak about. talking about the high end, i think bill, this is the ultimate high end. >> here's what's interesting. this is a rental unit in the waldorf to youe towers in new york city. and we found a story that ran in the "new york herald" last year that this six-bedroom you want was renting for $140,000 a night. back in february of 2008. >> a month. >> a month. it's $10,000 a night, if you want to rent it that way. that was in much of better times. >> right. >> so the "new york post" yesterday or today has the story that this thing is back on the market again, renting for 140,0$140,000 a month.

it's the same price. >> you would think it would be a lot less, given this environment. >> i would -- i mean, diana, i guess they have to find a renter, but, you would think they would be able to find somebody -- >> you think that. of but you think about who their auditients is, guys. we're not talking about a new york audience or even a domestic audience that they're looking to rent this apartment to. i'm guessing their audience is the foreign renter, somebody coming in with maybe some saudi russian money and wants this property. because we have been talking about, rents in had new york are coming down, you're talking about the waldorf towers and the top of the top, i don't think they're looking at the domestic renter. >> that's a great point, diana. i was thinking every time i've ever interviewed a south american president or central bank leader or wherever, they always stay at -- the waldorf, a whole floor to themselves. >> well, we wish them well, $140 a month. >> and we're happy to sub let. >> it says in here they are. they will sublet. >> will work for food.

thanks, diana.h we take a break. still ahead, goldman sachs hiring a brand manager, may be looking at a stock buyback. charlie gasparino drills down on goldman for you. and we you ready for ways to make money next week with our trader triple play. >> and options trader. melissa and the gang will tell you on the other side of the break with the "fast money" halftime report. some people buy a car based on the deal they get. others by the car of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available

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welcome to the "fast money" halftime report. we are getting to heart of the action as it is happening. ten-month highs, better than expected, housing data gives the bulls new optimism. how should you be playing today's run higher? word on the street. our "fast money" crew today, the governor, jim bureau, and greg tracoli. we have a nice rally, but it's a summer friday. what does it feel like?

>> summer friday, but week after week, you see these clients come in and buy dips and that's one thing that is positive. buying dips, hedge funds are covering their positions, there is guys getting long this market. we're going to 1100. >> trazulo, what do you see in terms of our dash to 1100? does the governor have it right? >> yeah, he does, melissa. same game plan with the bulls, that's the right way to be. i talked about the s&p going to 1000 in may, we're there. another link to the up side to 1100, maybe even 1150, and that's where we get off the train. the way this maps out, 1100, 1150, the upper end of the range in the s&p, hundred becomes fair value and the low end, 750. but the bottom line and the short term media turn, to be as much as 8 to 12% on the up side, so you have to look for places to get involved on the long side. >> so two bulls being constructive on the markets. expiration friday. give us trade school. what should we expect in terms of the end of the day in terms

of volatility? >> some of the things we expect we have seen already. let's take foorr instance the s, there was huge open interest at the 100 strike. of what we normally see on a normal day is that strike kind of act as a magnet with people want to go protect that strike. but then when an impetus comes in and blows the market through like it did today, what we see then is all of the people short called, they're getting more and more short as the market goes up, so all of a sudden a bit of a short covering rally. i base some of that on the open interest. >> so part of it is technicals at work, behind this rally. >> i think so. >> let's talk housing, shall we, because that's obviously one of the big reasons we are seeing that move higher. existing home sales, i'm going to play the devil's advocate here, greg, because you know, i should. existing home sales, they jumped, 7.2%, the great number. but come on, part of it is artificially boosted. we have the one-time, first time home buyers credit. this is not a reason to rally. we're going to see that taper off once that goes away in

november. >> melissa, i will give you a very scary statistic. one in seventeen homes in connecticut, not in arizona or california, are either in default or 90 days behind in payment on their mortgage. the repercussions of this going forward as people run through their savings, as people cannot find jobs that were let go on wall street is going to be, i think, a real weight on this entire market a few months from now, and into the next year. >> connecticut. the bedroom community of new york city, the home of all those rich hedge fund guys, allegedly out there, yeah. that's a pretty scary -- yeah, so what does that mean, governor, in terms of the home builders? we are seeing them rise today, like no other sector out there, practically. i mean, really strong gains across the board. is this for real? is this a short rally still? >> i think that's a part of it, short squeeze, but also we're betting on recovery here. not bet on fundamentals. and i think that point is an

excellent point. but we still have a lot of green ahead of us, everyone understands that. but i think the recovery bet is what we're betting on now, and that's why stocks are rising. that's why we're probably going to 1100. people have already digested bad news, and they have spit it out already. so that's why the market continues to climb. >> it sounds kind of like you're saying well, a rising tide will lift all boats, and homeowners are among the boats. these stocks are going to rise because of that. cause of the markets going higher. >> i wouldn't be putting -- i have not bought personally home builders, and i think you have to really trade that on a short-term basis and, you know, buy the dips and sell the pops. i would not be investing in the home builders. it's too muddy still. >> give us some outlook in terms of the direction of the home builders here. >> well, as i said, melissa, i think you get another move to the up side. i think probably takes everything higher and, you know, i think the point greg brought up is a good point, but that's not the trade right now. the trade right now in the short

term and media term is higher. greg's trade is probably two or three months down the line. >> right. >> and that coincides with the fact that if we do hit 1100 or 1125, which is up 50% retracement a ç 50% retracement of the high to low from 2007 to the march lows, we would see resistance in the market. we are all on the same pamg. >> definitely. i feel that three to six months down the road and we get to that level and retrace backwards after that. i don't think we go straight up. >> let's move up to the oil. $74 a barrel. better than expected data. a weaker dollar and all that at play here. what kind of activity are you seeing among the integrated and the oil services name? >> we have seen it for the last couple of days.x to me this was a weak dollar play like the stock market as a whole. i have a couple of misgivings.

after we saw the numbers, the dollar lowered and looked like it would break out and it was rejected soundry and gone towards the middle against the euro and the dollar. if we settle the dollar strong, to me that will be over and we sell. >> let's bring in the experts. dennis is on the fast line. the commodity king. what is the best play at this point. you see oil up 72 and earlier this week, you said $75 a barrel will be the level at which it is detrimental to stock. >> i think $75 tends to be a little detrimental. this is a bull market and everything wants to go higher. all news is bullish. we forget in the crude oil market, it's china and malaysia and india and indonesia and it's asia that is now the real demand change in the energy market. we are becoming less and less

important. we might be the largest user, but the greatest increases and change and rate of change in demand is going to come from there. china we have to remember is the largest taker of every raw material in the world. chinese buy suggest taking it higher. we break out above 75 and can go to 80 quickly. >> at the same time we have all been watching china this week as a leader to the u.s. markets. whatever they did, we tend to mirror that. there is concerns about china and the recovery and the pace going on. at the same time can you make the case that it is china and asia driving the surge in oil and at the same time we are fretting about whether they will continue at the pace. >> china will continue at the pace and we are more concerned about whether the stock market was a bubble and does beijing want to try to keep that from getting too hot? is the chinese economy going to be more abundant or go into a

recession? you have huge numbers of people moving from the west to the east and want refrigerators and stoves and cars and they want carpets and want to move and they are move for example the 19th century into the 21st century. that's not going to change. >> great to have you with us and on the fast line. let's talk about shares of the stock surging on better than expected earnings. the etf at the retail sector. >> i talked about this last week. we like this and had our clients get long. for all the angst about the consumer, they are up 14.5% from the early july lows. that's a little bit of underperformance, but it's a nice right. there is more to go from the upside. the range with 72 to 82 and shifted up from 82 to 92. if you look at the objectives, you can push this into the mid 90s. still more to go here. >> a quick pause here, is america losing itself lead?

the commerce secretary makes his case of why the u.s. is in fact slipping. up next is "power lunch" to get you set for next week's action. fast money halftime report continues after this. >> the next revolution. fast money unveils it tonight. first there was cash for clunkers and now dollars for dishwashers. finding a trade from the latest clunker clone. shovel ready for the trash heap. smaller stimulus plans and other countries are rebounding faster than the u.s. a bush official said that doesn't make sense on america's post market show tonight. welcome to the now network. population: 49 million.

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and medicare guide and find out... how you could start saving. >> welcome back for your power lonch trade to go. you are looking at citi up 5%. >> citigroup, we are not out of the woods. i will call it a short-term,

medium-term buy. a lot of stuff, but you can make money here. $5 is marginable again. you are going attract a lot of retail investors. >> about 30 cents higher, quite a ways to go from here. that will be a long time. >> last week at $flee.65. they were tutting through a lot of slack. >> in terms of short interest, is that a big play and the reason why it will go to five because a short interest is not that high? >> all of these plays and the things we perceived as junk have spiked in the market place. it's a huge play and all the names thought to be going out of business. >> time to call the close. do you buy or sell going into 4:00 eastern time? kick it off. >> i think too many hedge fund managers still on the sideline who is can't afford to miss the move. it looks like we will settle

strong, we should see buyers. >> i would have to follow, but i look to sell in the next three days. >> you will hit resistance and use the weakness to buy. >> that does it for us and heating up as apple unveils a new tablet. up next, the rich are getting poorer. why middle class americans should be worried. we have that story and coming up, goldman sachs worrying about the image in the wake of criticism. charlie gasparino on what company executives are blaming for the negative press. hollywood is banking on af tar. the sneak peek in theaters. we have the details and the trader triple play will get you ready to make money. "power lunch" is back in a moment. >> housing appearing to be

bombing out. california's unemployment rate is a record high 11.9% despite the drop for the national rate. an informant in the government's tax evasion case is going to prison. ubs banker has been sentenced to three years and continue to help authorities with the investigation. that's cnbc. i'm courtney reagan. >> stand by. the fun is only beginning. call it rally friday on wall street. upbeat existing data hoping to give stocks a lift. from applications for the i phone. technology tightens are ganging up on google. we will take a look at what it is for the giant. >> the last weekend for cash for

clunkers. will automakers california cars without the program? we will look at the futures post clunkers. >> joining us, our dear friend ron ensana. with thestreet.com's market movers. why is it for 25 years, you can't stop laughing. >> you have that grin there. a pretty resilient market. >> i went to cash weeks ago and the s&p has gone up 2%. the bank and it is home builders and the others and i talked about this in my letter on the street have gone up from 10 to 25%. 12 points ahead of the market and feels terrible when you are watching these things go up. it worries me that they are going up that fast. >> we were having that conversation two weeks ago. too far, too fast. >> the numbers are supporting everything that's going on. >> what about the resilience

this market seems to have as opposed to what's happening in asia. >> china snapped back in the last couple of days and i have been on the sideline when is it comes to emerging markets. i don't like roach motel-style investments. >> it's horrendous. >> whether it's russia or china. it's different here. i would think this market needs a healthy correction to continue to advance in a manner that it doesn't become speculative. it gets nerve racking. >> some professionals think banks will not reach the earnings for a number of years and if you look at what banks are doing, buying mortgages that yield 20% at a zero cost, they are replenishing quickly. our cash circulated an article and the government has the right

to sell the 34% stake and they are up $10 billion in the last couple of weeks. >> great work if you can get it. the government makes money. >> you still have to give the president credit. he called the bottom in the market. he caught it. each president has done that in the history. >> wasn't just a stock market thing. >> let's hope he has as much luck. >> that's a political question. >> we wish him the best of luck and bring charlie into the discussion. talking about goldman sacks and the blog today, charlie. >> i don't like blogs. >> that's the morons we will talk about later. >> welcome back. >> he is a little nervous here? >> i would say so.

think about this. two issues here. the intense media scrutiny. have you seen goldman go through the ring ther badly and a lot of people think and these are senior executives think there is an element of anti-semitism. there is that thought. they never faced this. some of the charges are outrageous and they somehow committed securities fraud by shorting the market. they may have, but where is the evidence? journals go on television and suggest that. >> they hired an image consultant? >> that's the secretary part. they have an image problem and whether it's based on the motives, i don't think that was over the top. i think it was somebody that understands a lot of stuff. >> it was well-written and interesting, but way over the top. i don't think that people at columbia journalism who think

that is a great story, i keep reading blogs. they are not anti-semitic, they are just idiots. but that's what's happening now. what's causing it is not really that, but how do you fix it? >> isn't it just bonus envy? >> i think that's true. >> but the real issue is, let me make this point and ask me the question. the real question is what do you do to deal with the image problem and they know internally it will get worse. it's bonus season and how do you massage this issue? unless you have a reversal here in the credit markets and the stock market, they will be sitting on a lot of cash to handout. how do you deal with that and a lot of people laid out a couple of ways. one way is pay a lot more in stock and less in cash and more in salary and the third thing that they tello the record is

related to the bonus issue and i hear it is. maybe instead of handing out big bonuses and doing a big stock buy back. so many of their executives are holders of goldman sachs stock. that's the big story. the market story regarding goldman. do they do a buy back and whether it's related or not, we can argue about that all day. they said it's not and i hear it is. the fact is when i asked the question, he wasn't denying a stock. >> ron has the question. >> let me ask with respect to the criticism of goldman, whether it's about the money they are making or claims of market manipulation, the critics were saying not necessarily that goldman was manipulating the market, but shorting subprime as they were selling the same products to customers. people who say and this is not necessary me, but the proprietary trading goes against their customers. people who have alleged the prime broker and the hedge fund

clients. those are the types of things you hear on criticisms on goldman sachs. >> i'm one of the guys who have beaten up on goldman in the past. it is so over the top, i don't think they are the cause. i don't think they are the main culprit. here's the point thaw are making. this is in my book. the sell outs. i believe in early 2006, maybe late 2005, he lost a lot of money. i talk about this in the book. he lost a lot of money in the two years where the market was going down and he made a lot of money. i asked him, how did you know to short the subprime market? it was a weird thing where two analysts came into the office from bear sterns and lehman brothers and laid out the charts and graphs and said here's how it's going to happen. it will unwind in 2006 and will

be a big explosion. think about it. this is two firms that were so heavily tied to subprime and real estate where you have an analyst telling brokerage. what does that mean? does that mean they are selling cdos and stuff and they are telling people to short? sometimes there is a conspiracy. >> lots of confusion as well. >> you know where i'm going with this. >> from goldman to bloggers. michelle and i had the discussion about the bloggers that keep writing the nonsense. most are anonymous. there was the cycle of zero. i called it zero intelligence and i said the problem is these guys and gals who say they are

guys, i ran into one of those. >> they are anonymous. you can't pick out the information. >> i said they have financial interests and i guarantee there will be a scam and you don't know who the people are. >> today in the new york post, what do we find out? the guy you were criticizing? they won't let him participate in the markets. >> this is amazing. this is a broken clock. >> this is a 12-hour shift. >> michelle, if i was in the studio, i would high 5 you right now. let me make one point. some of these bloggers are not anonymous and they are still lousy. they have so much garbage and there is a kid who works for reuters. he used to say stuff and if he mattered that much, it would be liablous.

it was wrong. he put me in a speech and i told him it was wrong. it was insane. she not anonymous. i had this conversation with andy i said will you run anything on your blogs? he said yes. >> i was having my mid-life crisis and away from here. even the columns in the "new york times" got material facts about my former business wrong with the do you means in their hands. the numbers were in front of them and they managed to get three or four faxes wrong per story as they beat up on me. >> high five, charlie. thank you. >> time for street signs. we have more to go. >> we have more to go about the rich. the rich are getting poorer. rise of the super rich hits a

wall on the recession. will this close the income gap or drag down the wealth of everyone. let's bring in the executive director of the labor research association and the author of the audacity of greed. you have a lot of sympathy for the rich people. >> i'm not anonymous and mostly accurate. >> idiot bloggers, but that's redid you not ant. >> for the first time in a generation after a period of time when it appears the rich were going to be getting richer, now they are not. are we heading into a new era and what does it mean for the economy? >> i am not crying tears for the super rich. they are not maybe able to buy an extra yairt yacht or mansion and having to downsize. for most americans that is irrelevant. through the very bubbles that have created our economy and

that cost millions of jobs. i'm more concerned about the people and american workers who have basically got nothing on the productivity and skyrocketed over the last 30 years. all the folks are getting rich. all the elite. 1/10 of 1/100th of the top percent. part of that comes from the ability of people to get wages and a decent paycheck. this is all connected in the following way. if you don't have decent paychecks, you rely on credit and home equity and that's gone. the fed that will be contributed -- >> the super rich say those are people that take the risks and create the jobs. if they are losing money, fewer jobs will be created. do you buy it? >> no, they are not the only one taking risk. they walk into a factory or a mine and takes a risk by going to work.

in my belief, this may be a shocking thought. those people contribute just as much as the ceo of the super rich. it's different, but the main point i think we should underscore is the gap has been so large that it created the greatest gap between rich and ç poor and the greatest divide within 100 years. >> gaps are horrendous and they are terrible. they lead to revolution. we should embrace having a middle class. i agree completely. i don't buy the premises so the rich got richer and richer and the middle class benefitted as well. >> they did not. >> remember a lot of the poor we talked about are immigrants who come from other countries and are actually doing far better than they would have back at home. opportunity is still greatest here than anywhere else in the world. >> i don't agree with that, but i will make two points. over the last 30 year, productivity has skyrocketed. it is not true that the middle

class has done so great in this country. the second thing is, the middle class, we didn't have the american dream. they rented it based on credit cards and home equity they didn't have it the way we considered t. we paid for that when we saw the collapse of the market. when people were promised a pension, what happened to the ir a's? what we needed to have was a national pension system. >> what are about the trickle down from the super rich or the rich? you have a lot going forward. >> exactly. the super rich and rich people who were philanthropic who will no longer do that. in addition, a lot of these people do the spending and create positions for other people that will no longer be

there. do you not give credit to those people who are very philanthropic in their life because of the wealth they create and many of them did take risks to get there. >> some people. >> what about the colleges and the colleges and the museums and the thing that is a lost people enjoy that are not super rich? >> i would argue that people have been philanthropic, but the super rich have not. the idea of trickle down has been prison to be a bankrupt philosophy. the book is all called the audacity of greed. >> gr see what milton says about greed. >> thanks for joining us. the market is in rally mode, up

140 points and take the realtime pulse of the markets. >> here's what else is on the menu. >> it's the end of the line for cash for clunkers and perhaps for a high profile chrysler executive. we will have the story in a bit. >> i'm jim goldman and google is getting hit from all sides. a coalition of competitors including microsoft, yahoo and amazon taking on a plan to digitize million of books and apple is keeping its voice up from the online store? this might be a case of the pot calling the kettle black. stay with us. the next course of "power lunch" is two minutes away. um bill-- why is dick butkus here? i hired him to speak. a lot of fortune 500 companies use him. but-- i'm your only employee. we're gonna start using fedex to ship globally-- that means billions of potential customers. we're gonna be huge. good morning! you know business is a lot like football... i just don't understand...

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we did this one in the honor of audacity of greed. luxury yacht manufacturer. rebecca is at the nymex. robert? >> up four days in a row and that's making energy stocks and the market leaders this . even though there is weak demand, they are doing well. oil service, you would have thought this wouldn't be a big area. the oil is over dollar 70. it's being driven by oil and not natural gas. the seven-year lows. demand is weak and they have

supply out the wa zoo for natural gas. you are paying a premium even though they are dropping. why is this happening? because the commodities futures announced they are doing investigations that do speculation into etf and commodities. the company that runs the fund announced they will not issue new shares. they haven't said why, but there is concerns about the investigation. this is silly and you shouldn't be treating this. they need to deal with this. we will see the death of this. we will talk about that today at 3:00 on closing bell. i know you have been talking about that natural gas drop. >> absolutely. supply out the wa zoo.

you heard it here first from bob dasani. oil is hitting a new interday high as far as the year is concerned. above $74 a barrel and the high of the session was 74-72. we got an hour left of trade. anything can happen. on the bullish side, a lot of things working in their favor. on top of the weak dollar, there is the fact that demand in some of the economic data is starting to look better. not only here, but in europe. back to you. >> now to the weather and hurricane bill is roaring through the atlantic with a category three storm. the weather channel joins us from atlanta with an update. >> it is weaker. it is weaker, but still a category three. 115 miles an hour winds is nothing to sneeze at. we will not see the winds and even see thunderstorm force winds on our coast. bermuda could. tropical storm warning as it gets closer and closer.

the wave are on the rise reaching the 25 to 35-food mark. the waves were going on the increase around florida up to cape cot as we get through the evening and into tomorrow, peaking along cape hatteras and the northeast by the time we get to sunday. it will be a weaker hurricane, but they could see 20 to 25-foot waves by late sunday. stay out of the water and keep the boats out too. >> the surfers though, they will love that. >> they will be out there, but shouldn't be. >> could this be the future of motion pictures? thousands of fans are running to see this 16-minute sneak peek of the new 3 d movie af tar by james cameron. he spent a ton of money using cutting edge technology. is this the game changer the industry has been waiting for? stay tuned and find out. >> we will keep an eye on the rally as well.

the dow jones with a gain of 142 points. we are approaching the 9500 level. stay tuned, folks. we are eight points away and see if we can get there.

>> boys will flock to theaters for a rare sneak peek of james cameron's new picture that he has spent a ton of money on.

will it be a game changer like he is hoping? julia boorsten is in los angeles with details. >> af tar doesn't hit theaters until december, but 20th century fox is building a buzz. including a free preview tonight. in 129 i-max theaters, the ticks are disappearing immediately. the live action combo generating huge buzz and hoping the epic will live up to his last release. the record-breaking titanic a dozen years ago stilt biggest movie of all time, grossing $1.8 billion worldwide. it adds to the 12003 d screens now in the u.s. >> the theater exhibitors have high expecting as and would like to get as many incremental screens for the film as possible given the potential for the

film. >> a va tar could boost and if they stick around to buy popcorn or tickets, i-max plans a big release in december will cash in if the production yields a huge hit. he started this 14 years ago, waiting for the technology to catch up with his vision. this movie will be distributed on some 2 d screens to get the scope of the release that fox thinks it deserves. if it is a hit, we are sure to see many more 3 d screens and movies coming soon. back over to you. >> thank you and what would would the day be without our own. i would like my colleagues to look at the monitors. >> what am i wearing? >> michelle, you get your own name. you are monetary michelle. you are stock star sue. >> good one.

>> you are ron bond jovi. >> that's the best one. >> the closest thing would be age. >> i'm dollar bill, by the way. >> very good. >> on the left hand corner, this is dan the ax man ackermann from cnet.com. >> how are you doing? >> are you going to see this? what are you hearing about this? >> i feel like every decade or so people make a play and say movies need 3 d. it doesn't catch on and this time the technology caught up and looks pretty good. you can wear the glasses and you deent get a headache anymore. it's a huge infrastructure investment to convert to show biz and you still have to sit there wearing glasses in the theater. >> is it the game changer that everybody hopes it will be for the industry? >> that's what they said in the 50s when they first started it. we will have to wait and see. this is 40,000 movie screens in

the u.s. of which 2500 can see this. >> will people pay more? >> they are trying to charge a couple bucks more. it's like the i-max. if you want a family experience because the experiment so far has been like ice age or a pixar version. you could get away with a small premium on this. >> i have three small kids and you are running out to see ice age 3 d. we saw the latest harry potter movie and the first 10 minutes were incredible. the kids love t. >> the reason it's a gauge changer, you think about when we were kids and i missed the 50s, but the 60s and the 70s was a clunker. the glasses were a novelty, but these are polarized glasses that work very well. >> kind of like the ones you are wearing. >> exactly. >> about the 3 d, we have the

best home video systems ever. watching a movie at home on your tv is fantastic. to convince people to leave their homes and go to movie theaters, you need a remarkable technology. it distinguishes it and makes it to into a big effect and people are willing to pay more. people are paying. if you compare the 3 d screenings and regular of a lot of movies that came out, the 3 d are always much more pack and more profitable. >> does it have a good story? >> dan, i am going to tread on this carefully, but is this a guy thing we are talking about? we have a skeptic in the midst. >> it's kind of sci-fi. people try to explain the plot several times and i think i can hang, but i have no idea what the movie is about.

>> it's about 2 1/2 hours. >> james cameron made titanic. he knows how to make a good plot that appeals to everybody. i haven't seen it, but i have to trust james cameron. >> he has been working on the film for a long time. sometimes your idea can get overcooked. >> when we got to the third version, it was so long and went on and on. >> we will see you later. taking me to a 3 d movie. >> let me see the singles. you worked hard on this and did a great job. i want to see it one more time. dollar bill. you look like wonder woman. >> monetary michelle. stock star sue and ron bond jovi. i love t. >> at least it's thinner. >> great job to the graphics

department. >> looks like a skeleton. >> the poster boy for the grateful dead. >> the bears were growling and then roared back to the rest. let's hear the roar. there you go. how is next week shaping up? we will make money. >> in a few minutes in the cash for clunkers program, is the industry about to look at the program? back in two minutes. are we saying good-bye to ron? 

>> let's look ahead to next week. from the cme, we have holly. the city director and from the nymex randy rothenburg. welcome, everybody. i will start with you if i could. this market has been going gangbusters for almost the entire week. will it carry over and are you worried? >> i'm worried about the levels. last weekend, friday and monday. a lot of people are asking how can it keep going? we had great numbers come out with housing sales and i think we are worried about the

prognosis going forward. can the american consumer get out there and spend enough money to drive the economy. i'm not sure we are ready. >> we have a big move going on in treasuries in the wake of the existing home sales data and you have a big sell off. what happens next week with the new supply? >> you have a bit of supply. 109 billion in seven-year paper. that is combination with the data coming out. other than the gdp, it's tier two type of data. the consensus with all of it stronger than last month's numbers. that will keep pressure on yields. 10 years could head to about 368 or 116 in futures space. >> you have oil and natural gas going in opposite directions. it's going to give or does anything have to give? >> in a way, yes.

the crude oil is out for a window and you are over 22. that's gone by and natural gas looks to be in the dumps because of an oversupply. crude oil is more of an internationally-based commodity. loving the dollar and the equities firmness. a note of caution, we reached the 200 weekly average at 7458 and with crude, you may want to buy naked buy puts. >> ron, usually the intermarket relationship is crude goes lower and stocks go higher and vice verse amp. >> it's a replacement and it's a global play. you have seen correlations go back to 1 o the upside. the inverse of what happened

when everything went down together. you have junk bonds and commodities and stocks going higher. interest rates are not going up commensurate with the rates we have seen. that's a very interesting divergence that we can explain except for the domestic stuff going o. >> thank you all. have a good weekend and see you next week. by the way here's the song we have been humming. today is the 50th anniversary of hawaii becoming the 50th state in the united states. >> get it, hawaii 5-0. >> onest most beautiful too. stunning. >> hawaii has the highest life expectancy in the united states. 75 for male and 80 for females. i don't understand. it's the only u.s. state whose land area is increasing.

>> because of the volcano. it creates new land. >> now i know. when measured east to west, hawaii is the widest state when you consider all that. >> you can't see russia there like alaska. >> speaking of governors. >> great segue. nicely done. >> the three graduates of cal state northridge and the great linda lingle went through the journalism school as we did as well. >> i did not. >> the call. oh, lawyer. you never know. >> they may still do that. >> or what?

>> it has been a delight having you with us, sir. >> bye-bye. nice to you have here. >> as we mentioned the cash for clunkers is heading for the scrap minute night and a huge success by all coulds, but it ends. can the industry sell cars. is behind the wheel. >> rally intact on wall street and up 135 points on the trading session. we are back in a minute. the s&p at 1023. back in a moment. some people buy a car based on the deal they get. others by the car of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available on the 2009 is 250. special lease offers now available ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points

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cash for clunkers and the popular $3 billion government program is ending on monday. what does the future hold? sfil at a ford dealership with more on the end of the clunkers program. >> it holes a busy weekend. you can bet there will be a flurry of activity taking advantage of cash for clunkers and moving in. they have to do it before monday, 8:00 eastern time. the end of the line comes monday night when the dealership will have to file the paperwork that will be a valid deal, if you will. ending after four weeks and ends early in part because the government wants to ensure the

funding. 457,000 vehicles sold, but that's a tough estimate. there deals being sent in and comes out to 1.9 billion submitted to washington. the the government paid out rebates to dealers. it's taking a while because they reviewed under 40% of the applications. the clunkers program can be viewed as a success to the automakers because it spurred them to increase production. they were running at low levels and have to improve production. they have been doing it by 10% in the fourth quarter. 2010 sales estimates are reduced because of the pulling ahead sales. there is a fair amount and whether or not that will be the case, will you take a look at sales from ford and any of the auto makers and auto industry-related stocks and for the most part, they received a nice bump over the last to four

weeks because of the success. this is the shot in the arm that they needed. was this a sugar high and whether or not the industry can sustain sales in business at an adequate pace. that's what everybody will be looking at and the opinions are mixed about whether or not that will be the case. good to see you, john. what do you think? is this the shot in the arm that they needed or do they simply pull sales forward from 2010? >> i think that's the sugar high that phil mentioned. we don't think the fundamentals are strong enough to be the momentum builder hopes it will be. >> they have been gearing up production and sales don't sustain themselves.

>> what the concern is, much of the increase in production looking at general motors was in small cars. once the clunkers deal is not available anymore, i don't think we are going to have this run on small cars that we have seen. >> how are they going to get people to buy? does the incentive, do they come back? >> it's going to take the incentives. we are not looking at the progressives until mid-year. we brought the forecast this year up to 10.3 million units. this is for 09 versus 9.8 we were at before clunkers. we have brought 10 down to 11.1. we are forecasting it will go up to 13.7 million. >> when you look at the break down with the players, we talked about toyota gaining share on gm, but has that changed as a

result of ford not being in the same position and accepting government money like gm and talk about ford versus toyota? >> we think ford and toyota will be in a horse race for the number one position as we look out over the next five years or so. >> have you heard about sales strategies post clunkers? i think they want to take three or four weeks and how much of the churning of the market has taken place. over whether or not they'll bring production down to increase it and keep it in mind for the first half 6.5 million and sales were at 9.2 million. they had to increase it and which it will go up to 9 $to 9.5

million. most believe that is judicious enough not to have a glut of vehicles on the lots. >> thanks. at&t wanted to block google voice from the i phone. they want to block. what does it mean for the business? we will tell you. >> we will look at google shares. they are up about 2/3 of a percent. up 50% year to date. back in a minute. carol, when you replaced casual friday with nordic tuesday, was it really for fun, or to save money on heat? why? don't you think nordic tuesday is fun? oh no, it's fun... you know, if you are trying to cut costs, fedex can help. we've got express options, fast ground and freight service-- you can save money and keep the heat on. great idea. that is a great idea. well, if nordic tuesday wasn't so much fun.

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microsoft, yahoo and amazon have been teaming up to fight the digital book plans and in response to an inquiry, apple and at&t are expected to explain sometime today why they banned google's voice application from the i phone. our silicon valley bureau chief

is here with more on the ganging up on google story. >> kind of what happens when you are the lead dog and have you have a bunch of dogs trying to chew on your behind. celebrating the 5th year as a publicly traded company on wednesday. yesterday the conviction buy list and the new frothy $560 price target. google shares have been surging and total is a not so gentle remind they're competition is not standing still. yahoo and amazon signed on to the so-called open book alliance. we are looking at google going public, challenging the ambitious and digitizing program. they are trying to digitize millions of titles, signing the settlement that google was stealing the property. they are waiting court approval and they have a plan that they said is far more inclues testify publishers and authors.

another kpch of my enemy's enemies. they have apple's decisions from the apple ap store. they want to know whether it was influenced by at&t, but google may have explaining to do. they may have done much the same thing with ebay and skype working with their android mobile operating system. some believe it led to eric schmidt's departure. we have not heard the end. >> wie they don't shy away from any of this. google is willing to fight back. >> google said it is doing absolutely the right thing that this is moving both industries, its own and book publishing and writing forward. it believes it absolutely has the moral and legal high ground to do all of this.

it said there is big potential profits for anybody who is out there. >> jim goldman, thank you very much. >> we will come back and filmmaker michael moore takes a shot at wall street. >> what a novel thing. >> we will look at a piece of that in a minute. >> a big serve of of michael moore empty calories, coming up. let's ask. 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.

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in this edition of empty calori calories, yet another michael moore movie out. the capitalism and in his words the disastrous effects of corporate. >> we are here to make a citizen's arrest. receding hairline? >> the guy who brought you bowling for columbine, sicko and fahrenheit 911. >> they don't speak english. donde? >> the most feared filmmaker in america. >> can you me what a credit

default swap is? >> we will will reveal what happened when wall street crashes. >> foreclosures. >> a global melt down. >> and a government bail. >> all right. the latest. michelle is talking about t. >> i cannot stand him. there was so much. when i watched it again, he has zero understanding for the car industry. >> how do you think it is? >> go live in cuba if you like the health care system so much. >> he tried. he is very controversial and very, very popular filmmaker and he takes advantage of the ability to poke holes in things. this is low hanging proof for him. >> hoary is a little late to the game. >> i was just going to say, i think we have seen this movie already. >> here is piling on at the end.

>> michael moore mark is over. let's look at it that way. >> you can commemorate the anniversary. >> the avitars on the avitar day. the sneak peek will be out tonight. there is dollar bill. >> you need a martini. actually a manhattan. that would be his. >> and wonder woman. >> how about julia. we department get an avitar for julia. >> another day. >> that's it for "power lunch" and we thank you for joining us. have a lovely weekend. >> a great weekend. >> miss burnett with street signs in a few minutes and see whether or not the rally continues into the close. >> have a good weekend. >> chrysler can't comment on rumor and speculation with the

deputy ceo will leave them by the end of the year. senator rockefeller asked for data on how much of the premiums go to health care and how much goes to profits. in a live interview, they warn against getting too optimistic with the german economy. i'm mandy drury. >> it's 2:00 and this is "street signs." good news all-around. bearded one upbeat and stocks are surging in all major indexes and new interday highs. something it celebrate on an august friday. i'm erin burnett and here's what call street is talking about. speaking from the mouth and he was guarded. why not more optimistic? a live report at the bottom of it. stocks up, but our 1,000 is up

1,200%. the image is sparking out rage, but triumph fant return of the convicted terrorist. so important for big money too. first we get to the trading floors and find out about the rally. bob dasani at the big board. everyone on the regular places. we begin with you. >> the early headlines on bernanke was talking about the economy nearing a recovery with positive use and more guarded later on. what's important other than bernanke is we move up four months in a row. the bears will argue the improvement levels are not improving. the home sales are not bad. they had a great week and they are near the august highs. the oil service stocks are up at four days in a row. that has been a big story and natural gas is horrible and oil is working well. the stocks are all sitting near