welcome back. our guest host today is "fortunes" editor at large, she has the 50 most powerful women's list. patty if you had to pick some way this list is reflective of what's happening in the economy today, what would it be? >> well, you know, the biggest trend we saw in terms of women moving up on the list was women in technology.

sheryl sandburg, facebook moved from 34 to 22 this year. meyer at google moved from 50 t? number 44. saffir katz, co-president of oracle moved up the list. and carol bartz is at number eight. join us tomorrow. "squawk on the street" is coming up next. live from the financial capital of the world, this is "squawk on the street." good morning, everybody. i'm mark haines. half an hour before the opening bell. we've getting positive news from corporate america. procter & gamble a bit high there morning. the dow component adjusting the nearly outlook to account for a sale of a pharmaceutical unit. that number is above analyst estimat estimates. but enthusiasm could be tempered

by a bombshell of a comment from fox' influential guest host who says home prices could fall by another 25%. >> good morning, mark. i'm erin burnett live from that other financial capital of the world, the nation's capital. president obama's health care speech has been met with both praise and keskepticism. i'm very excited to be here. and i hear, mark, there is a good omen for futures and that is that you have strawberry, tomatoes, and lobster salad today. >> you've got spies everywhere, don't you? >> uh-huh. >> yeah. you're right. strawberries, tomatoes, and lobster salad. right now the future is up 1.20. fair value is plus half a point. it's a very modest positive buy. >> on the economy, the number of

workers filing new claims for jobless benefits links to the unemployment number. claims number fell 550,000. that sounds sky high. is it? and then there's the trade deficit numbers, crucial as we talk about our need to borrow. senior economics reporter steve liesman is here to break it down. we're doing the town hall tonight. >> very excited about that. maybe some of these numbers will be part of the question. all these numbers are all good but none of them are good enough. let's talk about the jobless claims. down 26,000. probably picks up some improvement we should have seen in the prior week. add it together, 550 is probably more like what's happening right now. continuing claims, 6.088, that's a big number. we have to get down to 400 hrks maybe 450 to see improvement in the monthsly jobless numbers. 550 is good but not good enough. here is the unemployment rate or the claims rate. this is the people who received unemployment claims, percentage of the total workforce.

you can see there it is down. it is kind of flat. 4.6%. this is off the charts. we don't have anything like this going back to 1994, which is as far back as this data goes. let's look at the deficit. deficit, it ticked up. i actually think this is okay. $32 billion. why? because we're seeing a revival here in world trade which sunk to incredibly low levels. exports up 2.2%. imports, that could be a sign that 4.7% of some renewed interest in restocking inventories and restocking shelves. so what would otherwise be taken away as a negative, imports might be added back as inventory. look here at the year over year decline in trade. it is catastrophic when it comes to the overall, minus 20%, when it comes to -- 2% when it comes to exports and minus 30% for imports. imports, they declined more than exports did, which is not how

you want to do it. you want to have a positive effect on the upside. in other words, imports -- >> that's bad. >> that's bad, right. but it's in the right direction. a couple months in a row of positive percentage gains in world trade. you can see from that chart how far we have to go to get back to the levels that we had during the heyday of cross border trade, which is a big part of what made us all wealthy. >> steve liesman, thank you very much. send it back to you, mark, for the market action. >> we've got everybody standing by ready to go. scott wapner here at the big board. >> thanks so much. futures moved higher on that better than expected jobless claims data but also a slew out of outlooks from a number of companies. procter & gamble, they reaffirmed their q1 and full year sales and earnings guidance for new information coming out from p&g. the reason why the stock is up 2% is they expect to return to sales growth, that sales growth in the second quarter. general mills meantime, first

quarter earnings above initial target, stock is up 1% or so. texas instrument, of course, 52-week high, raising the outlook looking for stronger revenue across all segment. that is good news for the tech space. we'll get an update with bertha on that. corning sees a smaller than expected decline in third quarter. glass output, flat screen tvs and also see q4 demand, that is q4 demand to be stronger than expected. airlines higher. up 3% to 4%. ual, us airways, upgrade at jpmorgan. the only down note i have for you this morning comes by way of monsantos. they see it at the low end. earnings below the street view. let's get up to bertha coombs at the nasdaq. >> we've got yahoo! really going to be one of the engines today that's going to move tech higher here on the nasdaq. up 3 1/2% as bank of america,

merrill lynch upgrades the stock from buy to hold. it bottomed, they think. they think their search has been going better. their user traffic, better than expected. of course, carol barts just on "squawk box" this morning. eighth most powerful woman on the forbes list. meantime, a frveks asml saying it might actually now post a profit in its third quarter, although they say you really need more economic traction to see sustainability. apple is bouncing back after yesterday on the news they were going to have cheaper ipods. smith & wesson up on its earnings. getting a nice boost on the back of beating on its earnings. watch biotech vivus is still gaining. they had positive news on a flu, swine flu vaccine. let's move on over to sharon epperson at the nymex. >> we're looking at the dollar index, it's really all about

demand this morning. that is the oil market is focused on. now that the opec meeting is out of the way, traders turn their attention to what happened in paris overnight. with international energy agency raising the world demand forecast for the second straight month. both in 2009 and for 2010. that held the oil prices overnight. keep in mind the iea is now saying that it will raise its flaft by nearly 500,000 barrels per day. both for 2009 and for 2010 to 84.4 million for '09 to 85.7 million for 2010. and petro made an interesting point that this is based on over data. once they use the more current imf/gdp data which is expected to see a nearly 3% increase. we may see it raise higher. the inventory report comes out at 11:00 a.m. change in the time due to the labor day holiday.

rick santelli, over to you in chicago. >> thank you, sharon. we can hit all the same dynamics that we continue to monitor. of course, the cap off the week, which is going to hit 70 billion outside of all the t-bills. if you look the interest rates, down several basis points. they're down maybe 1, 1 1/2 basis points since the 8:30 release of the lower initial and continuing claims. tissue answer is, of course, 0 what is driving that. part of benefits is running out. as mr. liesman pointed out, we need a bigger drop to get to the point where the job losses start to mitigate out of the system on our first friday of every month. the dollar, key level, again, second day in a row. key level was 77 in the dollar index. one-year, mark, since we last spent time at these levels. mark haines, back to you. >> thank you, rick santelli. most asian markets rising. japan's nikkei gained 2%. hong kong up 1%.

south korea jumping 2.3%. china shanghai composite, it always goes its own way, breaking a seven-day rally. guy johnson in london, what's up? >> mark, we can't make up our minds over here. we are absolutely flat this juncture, as you can see. europe almost split down the middle, it is so undecided. frankfurt is trading a little bit higher. paris, fractionally lower. london market down by .4 of 1%. let me show you the stoxx 600 and how it performed over the last couple of days. as you can see, gradually climbing every day just that incremental little gain that little sideways move that it just kept this market stepping ever higher. 5,000 hit yesterday on the ftse 100. but the big story, and this is going to break in the next five minutes, is that we are expecting the german government to announce that the canadian car parts maker along with

russia is going to buy gm's european operations opel. that is the talk. we have no confirmation of that but that's got the wires buzzing today. that is breaking in the next five minutes. they've got a press conference in berlin. the bank of england left rates on hold and did not extend easing. the pound rallying on that. that's the time the desessicisi came out. in five minutes' time, gm decision, big one in europe. back to you. >> thank you. up next, the faber report. david takes a look at takeover talk surrounding a soft drinks marker. the s&p coming off the highest lows of the year. the big question, can that momentum hold? word on street, buzz beyond as we count you down to the opening bell. and democratic senator tom carer, he's going to react to the president's speech, the public options and whether health care reform will bust a budget. they are going no n. front of

his committee right now.

we're back if just minutes ago banking analyst meredith whitney offering a rather bleak outlook on housing. she told cnbc this morning that home prices in the u.s. could

fall another 25%. >> there's no doubt that home prices go down dramatically from here or decrease from here. it's just a question of when. >> whitney also expressed pessimism about the stock market. like getting a day off on a sunny start. she said another leg down is coming. erin? >> okay. well, mark, here in washington and across the nation, health care reform still front and center. the president made his reform pitch last night here to a joint session of congress. but the big controversy from the speech last night came when he promised his plan would not cover illegal immigrants. now, this was a moment. it drew a shout from republican congressman jill wilson. >> there are also those who claim that our reform efforts would insure illegal immigrants. this, too, is false. the reform -- the reforms i am proposing would not apply to

those who are here illegal. >> well, you can see the look of shock on everyone's face there. congressman wilson has since apologized for yelling out that word. once again, he will be making comments on the health care reform from the white house. we will bring that to you live as soon as he begins speaking, mark. on the home front, u.s. foreclosures rose 18% from august from the same month last year. we're still near record levels. the number of properties receiving notice declined a bit from the earlier month. earlier this week the treasury department warned millions more foreclosures are coming. now, let's go back to hq and get our daily dose of -- >> there you go, mark. thank you. wouldn't be a day without your introduction. you know, we've got more deals

out there globally at least it would seem. things really haven't picked up. and especially in the let's call it the food segment of the world for lack of a better term. this morning we get news originally reported by the "wall street journal" that suntory, privately held japanese beverage group are in talks of buying orangina from blackstone and lion capital. they bought this property for $2.6 billion, strangely enough, from, i believe it was cadbury, not that long back. a lot of the are reknew from orangina comes from western europe. it was bought from cadbury for $2.2 billion, maybe a bit more, only three years ago. interesting to note, of course, another potentially large deal, suntory only saying at this point they are negotiating. we'll see. and again, we're relying here on

the "journal"'s reporting, not my own on where things stand on that potential deal which could exceed $2.6 billion. of course, privately equity, very interesting. you know, m and a is starting to pick up. no doubt about that. but it is wholly strategic in nature. the likes of a craft for cadbury or disney and marvel or baker hughes and vw services. private equity is out of it. and the question is, as we head into the end of this year and we look at next year, what is going to happen? because things have been quiet. will soon have been quiet for private equity for two years. companies that have big staffs, big funds, and no leverage. now, one thing they are doing is exiting. and that is an interesting part of this. of course, blackstone may be exiting the orangina. there are many other number of

ipos they are getting ready to file at the lbo shops that are at least of some interest in terms of being public investment. whether or not they can actually get through the window that is open right now in terms of ipos, is a larger question. you can file your s-1s. it doesn't mean you're going to be able to get the public market quickly. look out for those, they're coming. with so little leverage available, so little financing available, yet with all that firepower available because they've all raised these huge funds, what's going to happen there? what is going to happen? are they going to be relegated to just doing a lot of types? really, is that a business that people want to be investing in where they're just making private investments in public equity? we'll see. as m and a picks up, certainly for any large deals is private equity. big staffs, big funds no, leverage. mark, back to you. >> thank you, david. up next, gearing up for the

open with the word on the street and the buzz beyond. >> later, back-to-back senators, mark. first moderate democrat from delaware, tom carper will be with us to react to the health care speech from the president as inflation is about to go before his committee. and banking committee ranking member senator richard shelby will join me here in washington to discuss future regulation and whether we're going to get a financial reform bill that has any teeth. we'll be back. i'm n this tinye plane, and guess what... 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. anything before takeoff mr. kurtis? prime rib, medium rare. i'm bill kurtis, and i've got plenty of room for the internet. and the nation's fastest 3g network. (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.

all right. we're back. let's check out the futures.

never mind, let's not bother. they're absolutely flat. not really pointing one way or the other. warren meyers, j. dowd, cnbc contributor, pepperdine. good morning. warren did two years and transferred to pepperdine. gee, i wonder why. >> tough call. >> tough call. malibu or ohio, which one do i want to be at? any way, good morning. good to see you. >> good to see you. >> what do you think of this market? >> very flat. the numbers came out on the jobless claims benign. trade deficit was up a little bit. we've been seemingly hit over the wall on the upside on the s&p level, around that, you know, 10, 35ish area. i think that's kind of a good sign. i think it's nice to see a little ceiling in this market. i think we're going to see a

little trading range from there, maybe down another, let's say down to 1030, on the s&p. it should be a quiet day. it appears that day. >> what's going to drive this market, warren? >> i tell you, that's a very good call. i think a lot of this still is dollar driven, dollars being hit over the last few days, pushing up commodity prices. commodities are a big part of the index that's been pushing the market up a bit. i think that's the extent of the market, maybe a little higher than it should be. i think that's going to continue though to drive the market depending on commodity pricing. look at monsanto forecasting weaker numbers. that might help a alleviate a little bit of that pressure. i think washington will be a key point. >> oh, yeah. all right. warren meyers, thank you very much, sir. have a good day. back to speaking to washington, back to washington and erin. >> let's get the buzz from beyond the big board, not just here in washington, jersey city,

managing director at knight equity. peter, your reaction from the president's comments particularly on this publix option he wants everyone to be covered but he's open to different ways of doing it, such as op ko ops. does this on balance mean there's a good thing for insurers as more people are going to sign up for insurance and they get more business? >> well, actually the managed care providers stand to gain and lose the most. top line growth will be very, very clear. there's no question that whatever comes out of washington will require employers, self-employed, corporations, to make sure that all americans are covered. so you'll see top line growth for sure. but you're definitely without a doubt going to see margining compression. there's just more competition out there as a result of there being a public option. there's going to be margin compression. that should have a negative impact on the bottom line of the managed care providers. but you will see growth. >> you will see growth on the top but not on the bottom.

is there a trade in health care then? sounds like based on that, stay away from those ventures in particular? >> i completely agree with that. i would stay away from the managed health care providers in the short and medium term. on the other hand, the principle beneficiaries of this cost containment element and whatever plan is eventually proposed is going to be the generic drug manufacturers. they've been on a real tear. yesterday put in quite a performance with quite a few 52-week highs. i think you're going to see tremendous upward of volume and momentum in terms of price in that space. i think that is a really nice long play on this bill. >> all right. thank you very much. peter kenny, appreciate it. >> thank you. >> we're getting ready for the president to be speaking on health care within the hour. in the meantime, the final countdown to the opening bell on the other side of the break. we'll be back from wall street and washington. this is "squawk on the street." could someone toss me

an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem! what's on the minds of independent investors? 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. you get low, straightforward pricing, so you always know exactly what you're paying. hey, that works for me. are you ready to declare your independence? independence is the spirit that drives america's most successful investors. announcer: trade commission-free for 30 days plus get $100 cash when you open an account. you are watching cnbc's

"squawk on the street" live from the financial capital of the world. the opening bell here at the big board is going to ring in 1:00. >> you ready for a quiz today? >> lay it on me. >> okay. so rich peterson at s&p has sent over more numbers. since president obama took office on january 20th, the market, mark, is up 28%. this is the s&p. now, there are ten different sectors within the s&p. what has been the best performer, which sector is up the most since january 20th? >> financials. >> you are right, with a gain of 80%. the stocks have nearly doubled. information/technology at 51%. what has been the worse performer? >> my guess would be -- i don't know whether they're a separate group in the s&p, but the materials stocks. >> you know you're close. it's actually utilities.

they were up, all ten sectors are up 1.3%. almost flat. health care is actually in the bottom half, up 12%. less than half of the gain for the overall market to figure out what's going to happen with health care. >> here we go! at the big board, care fusion celebrating its recent spinoff from cardinal health. at the nasdaq, bio pharma company gtx, ticker gtxi. >> and our market reporters are standing by out in washington. let's get at the big board where scott wapner is the man today. hey. >> hey, there. thanks so much. good morning. market just opening now. futures got a little bit of a bump up on the better than expected jobless claims number. we're by post eight. procter & gamble, texas instruments, all upping their

outlook. proct proctor and gamble came out and confirmed their guidance. new information that p&g came out and said they expect to return to sales growth in the second quarter. the stock was getting a nice lift this morning a couple of percentage points, 2%, 2 1/2%. general mills, another consumer staple came outnd see first quarter earnings above initial target. it opened to the upside. texas instruments, new 52-week high looking for stronger revenue across almost every segment there. corning sees a smaller than expected decline in third quarter output. airlines opening to the upside. 3% to 4% for most of the big airline names after ual and u.s. air was upgrade t at jpmorgan. that brings us to monsanto. they're grafti they're forecasting 2010 weak

and popular roundup product is a culprit up there. let's go to bertha coombs up at the nasdaq. >> thanks very much, scott. we've got the nasdaq composite here starting to the downside. although chips are a mixed picture. philadelphia stock, semiconductor at the moment is starting slightly to the downside. we have a number of stocks like texas instruments today that are saying -- a number of companies are seeing a chipper outlook. they say they expect to return to profitability but they are not sure if the market is sustainable. they say if the economy continues to improve that should improve our outlook. longer term they're not ready to commit to say this market has turned a corner. our microdevices reports are that they are at a conference, ouring a better outlook. intel, here is just flat to the downside. down six cents. it's declared the quarterly divide dividend. it's going to pay 14 cents. that's payable in the beginning of september. meantime, couple of stocks moving, yahoo! is the gainer. up nearly 3% on an upgrade over

at bank of america, merrill lynch. electronic arts gets cut down at goldman sachs to a neutral. that's off 1 1/2%. pharmaceutical is off 3 1/2% after being cut over at citi group. one of the big winners today is vical, they say their h1n1 swine flu vaccine has tested positively in animals. let's move on over to the nymex now and sharon epperson. >> oil prices are lower on the other side of the atlantic. we have energy prices lower across the board here at the new york mercantile exchange. traders are waiting for the inventory to come out from the u.s. government, from the energy department at 11:00 a.m. eastern time. it is going to be a day later because of the labor day holiday. we'll get natural gazda a coming out at the regular time at 10:30. look at what happened overnight in terms of prices. they were impacted somewhat by the american petroleum institute

data, show decline by 7.2 million barrels. much greater than the 1 1/2 million barrels expected by the reuters survey. we have distillate fuel supposed pry plies and mastercard saying that gasoline demand for september -- approaching september and going into the labor day holiday was the lowest level since january if natural gas, on the other hand, is lower for different reason. plenty of natural gas supplies. high build in natural gas storage levels is expected. when that data comes out at 10:30 a.m., we'll bring it to you live. rick santelli, to you in chicago. >> thank you, sharon. it's funny, i was just on the phone. i had two phonal as. first phone call wanted to make sure that i saw that moody's is sticking with their negative outlook for u.s. banks. they believe they're going to be unprofitable because they have poor quality assets. you know, toxic. and the next phone call came out and said, a trader, hedge fund trader saying don't pay any attention to it, you know, i don't have confidence in the rating agency. so i'm not sure how you take

either one, but it's still something being talked about on a day where treasuries have moved higher in yields, higher in price and moderate way and we look forward to 12 billion and 30-year supply to cap off the week at 1:00 eastern. mark, back to you. >> thank you, rick santelli. president obama saying the time for bickering is over when it comes to health care reform, calling for quick action on a comprehensive over haul. but is a deal on health care even possible at this point? joining us first on cnbc, tom carper, democratic senator from delaware, member of the senate finance committee. senator, thanks very much for being with us. >> my plea sure. thank you. >> i want to preface my remarks by saying i'm an independent voter, i don't belong to any voter, never have. after watching the republican reaction to that speech last night, it sure doesn't look like there's a mood of cooperation on capitol hill. >> president laid out a number of approaches which can be the foundation for working together. a big problem with health care delivery and the cost of health

care is our reliance on a deeper service, hospitals, doctor, more procedures, more tests, more everything. by doing that you reduce the likelihood they're going to be sued and end up in court. so we have all these extra defensive medicine that takes place. the president actually spoke to, i think, very thoughtfully to trying to rein in the fee for service to move it over to a different kind of approach, more comprehensive coordinated approach to health care and take away this to address the issue. i think the public will like that. >> the president mentioned that, you know, republicans have been pushing for tort reform north to rein in medical malpractice costs. but he didn't -- i didn't hear him commit to anything. it sounded, you know, oh, yeah, we know you want to do this and -- it sounded kind of wishy washy from my point of view. >> president of a first-year senator, i believe, voted for a

class action reform, tort reform, as a brand new senator. surprised me a lot of other people. i think he gets it. a fee for service is a problem. we've got to move away from it. that's one of the reasons why doctors do all these extra procedures and so forth is to reduce their liability coverage. what we need to do is to test those, evaluate them to encourage more states to use the ones that work. find out what works through reduced health care costs. there are a lot of things we can do. full day at the cleveland clinic on friday, cleveland, ohio. better health care for less money. >> senator carper, one thing they do there is that they pay their doctors a salary at the cleveland clinic. do you think we should do that nationally? >> i don't know -- we don't need to mandate that. i think as health care delivery systems other hospitals, other large profits or coa tives, as we see that model work, we will sort of move toward that.

what we will do in the finance committee's bill is incentivize a bill to move toward coordinated care, very much like cleveland clinic, mayo clinic and that big health co-op in the washington state puget sound. >> one thing that stood out to me and seemed like it was not just directed at america's fear of taking on too much debt but also wall street. he said here's what you need to know. first, i will not sign a plan that adds one dime to our deficit either now or in the future. it sounded good, but is there any way that one could make that promise right now? >> we waste enormous amounts of money in delivering health care. we spend something like 16% of gdp on health care. tinge next closest country is like 10%. we aren't smart in the way we spend all this money. we don't get better results. we end up paying about 1,000 bucks a year to cover people that end up in nursing and -- not nursing but emergency rooms

and hospitals and get real difficult sick and stay there. there's a much smarter way to do this. primary care and prevention and wellness. >> is the democratic leadership including people like yourself going to hold the president to that statement? >> absolutely. the president -- >> drop him if that's true? >> the president said he will not sign a bill that raises the debt, he won't sign a bill that reins in the global debt. i'm not going to vote for a debt that doesn't do that. it's all well and good that we talk about extending health care coverage to people who don't have it. i believe we should do that in smart ways. by the same token, if we don't rein in the growth of health care costs we're not going to be able to extend coverage to those who don't have it for any kind of meaningful period of time. >> is a public option dead? >> i think what we're going to do, we're going to use the federal employee health benefit plan in which 8 million people participate, including my staff and me, retirees, large purchasing pool, 8 million

people with we choose among private sector plan, wide variety. the insurance is not cheap, we pay 28% of that cost of fair coverage. what we want -- what i would be happy to do is to allow other people to participate in our federal plan. some of my colleagues are not interested in doing that. we want to create something like that and replicate it, large purchasing pool. folks who don't have coverage, expensive coverage, small businesses can participate, free to large purchasing poolnd low administrative cost. if some state or some part of the coverage don't have any competition, we'll have maybe a public option just like we have in the medicare prescription drug program, which works very well. >> are you going to say, though, with this issue of the deficit again, saying you're going to hold him to it, is it's one of those things you've got to plug and whatever the difference is of spending and you don't want to borrow it so you're just going to say that number is how

much taxes will go up on that top 5%? is that how you're going to get this to be not causing us to borrow more money? >> let me give you one example of inefficiency. in medicare where there's a lot of waste fraud and abuse, last year we began recovering money inappropriately spent in medicare in three states. we collected $700 million. we're going to now do that in all 50 states and we're going to take the lessons we learned in medicare and recovering those monies, wrongly spent. we're going to take the same lessons and use them in medicaid. we ought to do what works. >> are you saying you're not going to raise tax snes you're going to get it all from savings are you not going to answer the question? >> most of the cost of this program over the next ten years will come from spending money, smarter, looking for savings like the one i just described to the extent there's a revenue, john mccain had a pretty good idea in his campaign of dealing with the tax explosion. i would like to cap the tax exploeks, maybe $20,000, $25,000 a year.

that's a good way to raise the money. we'll do something like that in the end. >> senator carper, thanks very much. >> thank you. we've got breaking news now on general motors, opel unit. guy johnson kind of teased us about a little while ago. phil lebeau standing by with the latest. philip? >> mark, general motors has officially made the decision, the board of directors have decided the company is going to be selling 55% of its opel stake to magna. this was expected to a certain exte extent. magna was long believed to be the lead bidder in getting opel from general motors. there was discussion about whether or not general motors with the new chairman might decide to keep opel as opposed to selling it. but the company is going to go forward with this sell to magna. most of the details will be worked out in the next two we s weeks. gm employees, we believe it's gm employees in europe will also own a 10% stake in the company. general motors selling 55%, not

all of opel but 55% of opel. mark? >> thank you, phil lebeau. up next, one of baron's top 100 financial advisers now three years running shows us how to make strength in a sideways market using bar bells. that's in your cnbc edge. you're watching "squawk on the street" here on cnbc. if you're still one of the guys who's going over and over... going urgently... waking up to go... it's time to do what lots of guys everywhere have already done-- go see your doctor, because those could be urinary symptoms due to bph, an enlarged prostate. and for many men, prescription flomax reduces their urinary symptoms

due to bph in one week. one week. only your doctor can tell if you have bph, not a more serious condition like prostate cancer. avoid driving or hazardous tasks for 12 hours after your first dose or increase in dose, as a sudden drop in blood pressure may occur, rarely resulting in fainting. if considering cataract surgery, tell your eye surgeon you've taken flomax. common side effects are runny nose, dizziness and decrease in semen. millions of men have been prescribed flomax. maybe it's time to see your doctor and ask if flomax is right for you. and call 877-4-flomax to see if you qualify for up to $40 off new or refill prescriptions. for many men, flomax can make a difference in one week.

we're back one year ago today much of the talk was about lehman. yes, it has been a year. announced the results as the stock was in a free-fall, announced plans to sell a 55% stake and not surprisingly

raveni was sounding doom. >> it's not just housing. it's not just housing, commercial real estate, auto loan, leverage loans, corporate data up and are going into bankruptcy. so you have all of these losses and come up with a number of minimum. recognize only $400 billion. the worst is ahead of us. >> one year later the president says the worse is now behind us. are we really in the clear? joining us on-set ron wean, president and ceo of rdm financial group. ron was just named baron's newest list of top 100 financial advisers. p in philly, sean clark, sir clark capital management. sean, what about it, are we in the clear? >> hi, mark. i wouldn't say we're in the clear. is the worst behind us? absolutely. priced in the worst case scenar scenario, great depression as well as end of the financial

system as we know it. march lows took both scenarios off the table. >> you think we are -- sorry to interrupt. we have limited time here. you think we are in a cyclical bull but a secular bear? >> yeah. i do. >> so we're going to go up but then we're going to go down even more? >> i don't think we're ever going to come close to challenging the march lows. i think we're in an environment from 1974 to 1982. during that environment the market had three cyclical bulls, three cyclical bears within a longer-term bear market. from 1974 low to when that secular bear ended in 1982, market was still up almost 60%. i think we're in a trading environment that's going to see one step higher, two steps back, two steps higher, one step back. at the end of the day i think we're going to end up higher. this year our target was 1100. i think we're well on our way. >> ron, your caution? >> i didn't get to be a top adviser by taking big bets all

the time. i did what you've got to look at is there's enough head winds and cautiousness that's necessary, consumers aren't there, taxes are higher. i think the mu nis papalitinici going to be a nightmare. this is not a time to make big bets right now. >> you like petroleum, just took a position. >> just yesterday. >> why do you like anadarco? >> schlumberger is all oil. it's a spread between oil prices and natural gas prices. right now 27-1 used to be, or average about 6-1. thoo that's going to be somewhere, as we were talking before, mark, we're going to have some cold spout and, boom, it's going to go off to the races. good bet. >> for the record, ron likes qualcomm and jpmorgan and sean clark, you like intel and you like commodities? >> what we like that whole base

material theme, whether it be the stocks end or commodities p. we own copper, base metals. we just had a position in gold, companies, coal, steel, consumer discretionaries, that whole economic recovery theme is where we're placing our assets. >> okay. guys, thank you very much. ron, sean clark, straight ahead, erin? >> all right, mark. straight ahead, the banking committee ranking member senator richard shelby will be live in our studios in washington to talk about the financial regulation proposal. it is that and health care that the administration says we're going to vote and pass. will they? and we'll get a deal on that health care. tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips tdd#: 1-800-345-2550 or, i don't know, fish and chips. tdd#: 1-800-345-2550 i'll look at all kinds of stocks before i settle on one. tdd#: 1-800-345-2550 if i think i'm onto something i'll check it out, tdd#: 1-800-345-2550 you know, see what other traders are up to.

tdd#: 1-800-345-2550 when everything feels right though, tdd#: 1-800-345-2550 that's when i get serious. tdd#: 1-800-345-2550 and the minute i get into something, tdd#: 1-800-345-2550 i already know when i want to get out. tdd#: 1-800-345-2550 of course, every now and then i'll talk with somebody tdd#: 1-800-345-2550 who knows what i'm trying to do. tdd#: 1-800-345-2550 (announcer) switch to schwab today. tdd#: 1-800-345-2550 you'll get the tools, the technology tdd#: 1-800-345-2550 and the support to trade your way. tdd#: 1-800-345-2550 go to schwab.com/trader tdd#: 1-800-345-2550 or call 1-800-540-7304 tdd#: 1-800-345-2550 right now. tdd#: 1-800-345-2550 but opportunities can vanish like that... tdd#: 1-800-345-2550 ...so most days, i'm right there tdd#: 1-800-345-2550 when the market opens.

next on the agenda after health care for congress is the financial regulation. those are two things that the administration is, well, affirming to all of us they say will get passed this fall. what's going to happen on financial reform? joining us now, richard shelby, republican senator from alabama, ranking member of the banking, housing and urban affairs committee. good to have you with us, senator shelby. financial regulation seems safe

to say is goes to pass. the question, is in what form? is it going to have teeth? >> well, i think you put it fairly clearly there. what i've been trying to do in working with senator dodd and others is to slow the train down to make sure we know what went wrong before we rush to judgment to correct something. and we've been doing this. i think there's a good chance that we will pass some meaningful financial reform. we're not there yet. we are working off and accepting and rejecting some of the white paper that came out of treasury, secretary geithner. we've got a lot more work to do. what we've got to have, i believe, is not piecemeal but the comprehensive reform, especially we've got to approach, and this is very complex, very difficult. that is, how do we deal with the rating agencies? they played a role in this. >> of course. >> how do we deal with derivatives? we can't do away, with them, we don't want to do away with them.

we've got something to do with the clearinghouse exchange. we don't know what yet. and what is the role of the system regulator, who is it going to be and how is it going to work? >> sounds like, i don't want to go too far, but you're working together. >> we are. >> this is something where perhaps there's a lot more agreement or attempts to work together than let's just say health care. >> i think you're right. i think that senator dodd and i and other members of both sides of the aisle of the banking committee are working together. we're trying to reach a point where we can move forward. we're not there yet. we're going to continue to work. >> mark? >> why is that method or that atmosphere, cooperation, not present in the health care debate, senator? >> i think there's a big divide in the health care debate, big time. most americans like their health care. i've said on several television shows that most americans know this is the best health care system in the world. is it perfect? no. but now they're beginning to think, gosh, what would this

plan by the administration do to my health care? what kind of plan would be a substitute? most people don't want the government in business and don't want them running a health care business. >> i mean, most americans may think that, but that's not actually true. we do not have the best health care system in the world. >> well, now, mark, i disagree with you. we do have the best health care system in the world. it's not perfect. hey, wait a minute. i'm talking about as far as health care, getting the hospital, getting good doctors, getting good treatment. i think it's the best in the world. >> all right. a lot of people would cite facts that disagree with you. but isn't it true that even if we like what's going on now and i'm not buying into that, but it can't continue because we're going broke. something's got to give. >> well, you're absolutely right there. something's got to give.

but i don't believe myself that a government option which is just getting the government bigger and bigger in the health care business, they are already in it, you know, medication medicaid, they're big providers. if they cake it over, it's going to be rationed and it's going to be mediocre ultimately. it won't be what we have today. it will be like going, i think, ultimately to the county clinic, if that's what people want, that's what they would get. maybe not today but down the road. >> they're saying if -- first of all, it appears he's willing to compromise with co-op. let's say there's a public option. 4 million people could go on it. out of the uninsured which is up to 40 or 50 million. count that hover you want. 4 million people out of 180 million insured americans and the american families. so it's small, are we creating a mountain on this public option which is really missing the point? >> i don't think it's missing the pount. i see what you're talking about. right now you say 4 million people. where is it going to be in ten years? it might be 40 million people

because if you've got a government option that is a government plan competing with the private sector, one, it's not going to be as efficient. the cost of always going to be low balled. and the cost will rise much faster. was we do have -- mark is right on this. we have an unsustainable plan that we're working off today. >> but senator, i mean, wouldn't you admit that if this kind of thinking prevailed in the '30s we wouldn't have social security. if it prevailed in the '60s, we wouldn't have medicare? >> not necessarily. i tell you what, a lot of people have benefited from social security and medicare. >> that's right. >> it's part of the rail of government. but i wish, looking back, and most people do, that we had funded it properly. and i'll tell you, i don't believe we'll ever fund a government-run health care properly. it will balloon out of control. always has. >> you do have that on your side.

the concept of government as cost cutter is a bit of a hard sale. >> absolutely. >> do you think we're going to end up in a situation like we did with social security? we got one vote on the people -- it was a completely partisan vote for social security in the '30s. one vote joining them, republican, is that going to happen here? >> i haven't counted the votes. democrats have the overwhelming whmajority majority. could be both ways. i hope that we will scale down this plan and do some things that are meaningful, step by step in a thoughtful way and not just rush and say, gosh, let's do this for the president. >> senator shelby, thank you very much. we appreciate it. all right. coming up, you won't believe what bernie madoff was caught on tape saying. we have it for you. >> madoff said that is shocking? i mean, the bar is high. flus, two exclusive interviews you don't want to miss. chief financial officer of the nfl in his first television

appear rans. anthony noto. bob iger on the future of his theme park business. this is as we await the president's morning remarks. they are slated to begin sometime in the next 15 minutes. could someone toss me an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem! could save 'em hundreds on car just telinsurance.e geico it's actually doing it. gecko vo: businessmen say "hard work equals success." well, you're looking at, arguably, the world's most successful businessgecko.

gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people. 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 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.

live from the financial capital of the world in the heart of lower manhattan, this is the second fun-filled, exciting, lightning, edifying, enticing, entertaining, this is "squawk on the street." i'm mark haines. goldman sachs, texas instruments, oracle and starbucks, they're all heading new 52-week highs today. best performing stock in the dow this morning, bmg, up 4 hrs. s&p, radio shack. wow! leading the gainers up about 8% on the shack. let's find out how this morning's news is playing out second half hour of trading. scott wapner down here at the big board with us. >> it's been such a peculiar morning already. we've just turned positive

again. dow is ahead by 3 3/4 points. it was negative a short time ago by 20, 30 points or so. we got better than expected jobless claims. positive outlooks from a number of companies including procter & gamble and texas instruments. the dollar really the story this morning as the dollar started to strengthen, you saw commodities, specifically material stocks, start to weaken. that's when the market turned negative. take a look at the materials of stock here. things are changing fairly quickly. you still have this pullback from the commodity stocks that i have here on the screen. one of the material stocks that was lower was monsanto, they see earnings at the low end of the previousliey announced range. i did mention the positive outlooks i got from procter & gamble. they reaffirmed their q1 and full-year sales. the new information p&g came out with and the reason why the stock itself was positive by 2% is they expect to see a return

to sales growth in the second quarter. let's head up to bertha coombs at the nasdaq. hey, bertha. >> hey, scott. had a mixed start as well, particularly in clips. chips are leading the way higher. that's helped technology out perform at this hour. amfl is among a handful of chip companies that is saying they see things looking better. the company is boosting the outlook for the third and the fourth quarter. they're not sure how sustainable all of it is. they do the etching on the chips. they're a chip equipment company that do that. the real standout in the chips this morning really are the communications chips. we heard from texas instruments, microdevices, they were speaking at the kaufman conference this morning. they're saying all the handset makers really issuing more demand. and so that has helped boost them. broadcom is at a new high. marvel is at a new high.

also boosting the outlook that is kind of one of the stories, erin, as we're seeing a lot of new gadgets coming out ahead of the mol daholidays with the news and new ipods. >> bernie madoff caught on tape talking about how to dog the s.e.c. scott cohn has jaw-dropping details. >> when he started out this 2005 conversation, he came up with the perfect cover. >> obviously first of all, this conversation never took place. mark, okay? >> well, if it happened, and, of course, it is being taped. 2005 and madoff is on the phone two executives from his biggest investor, the feeder fund. the s.e.c. is coming in to ask fairfield grenich about the questions and madoff want to make sure the executives don't say anything, you know, wrong. above all he says, keep your

cool. >> it's a fishing expedition. >> right. >> that's what they do. okay. so, you know, they typically, you know, we run through this all the time. the guys come in to do a books and records examination. and they -- they whatchamacallit, and they ask you a zillion different questions. and we look at them sometimes and we laugh, and what you say are you writing a book? >> he keeps getting interrupted by typical holiday season phone calls. >> i'm sorry. i get any more solicitations for charity, i'm going to kill myself. >> madoff would have the last laugh. he, of course, stole billions of dollars from dozens of charities. we got this tape from the massachusetts secretary of state office which just settle with fairfield grenich for $8 million. the state claim it misrepresented the relationship with mad i don't have. they did not admit or deny guilt. we've got the whole stap and transcript at cnbc.com.

if you've got time, it's interesting listening. mark? >> okay, great. sounds cool. like the watergate tapes. up next, he used to be the media analyst at goldman sachs. now he's the cfo of the nfl. in his first tv appearance, anthony noto joins darren rovell. bob iger from disney talking to julia boorstin and the theme mark coming up. that, is of course, just a couple moments away from the president's comments on health care reform. we'll be right back. bbbbbbbbbbbb

welcome back. i'm c darren rovell. noto was the top analyst at goldman sachs, the cfo of the nfl in january 2008. we've been waiting to get him on air ever since. joining us live from pittsburgh for tonight's nfl season opener in anthony, thank you for being here with us. with the season kicking off, give us a quick snapshot of the state of the league as far as projections for revenue? >> darren, thanks for having me. as we look at the financial outlook we like to start with the quality of the game. that drives fan engagement. on that front we're continuing

to see strong year over year growth in all key fan engagement methods building on the strong success of the super bowl in 2008, record audience of 152 million viewers. we're continuing to see that growth as it relates to preseason games. up over 20%. nfl networks ratings on a year to date basis also up in the double-digit range. audience front, things are positive. economic front, environment has hurt discretionary spending and that has had a negative impact on ticket sales. forecast revenue is lower than a year ago which still should grow year over year. >> most topical story with fans right now, anthony, is the nfl blackout policy. due to the economy more teams are having trouble selling tickets. it's been said up to 20% of games won't be available in local market television. league said that policy is not going to change. tell me why from a financial standpoint not changing anything makes sense. >> well, i think that financial

policy -- i'm sorry, that blackout policy is not driven by finance. it's driven by the environment of the experience by the fan, improving the fan experience. by having the blackout policy, encourages fans to come to the stadium to enjoy the game in a live environment. if we can do that we can create a great environment for our fans. one thing we will be doing for our fans in those markets that have a blackout situation, which we're working very hard to eliminate, is to provide at midnight that night on eastern standard time the ability to see that game that was blacked out online for free through a service that we're launching called rewind. so we still want to give the fans the access to the part they're not able to come to the stadium. it's going to be on a delayed basis through off line nfl.com service. >> what would the delay be, how long? it. >> would be midnight on sunday night would be available for 72 hours. it would be taken off online during the monday night football window and then put back online for free. just in that geographic area

where it was blacked out. >> let's talk about the labor situation. one reasons why people say the nfl is so trong since 1972, p people know the klettive bargaining agreement is expiring. a lot of tension between the league and the union. pitch me the current terms for the nfl for the deal doesn't make sense. >> well, first point i would make, darren, it's in the best interest for everyone to find an agreement that works for the player rs and works or the owners and works for the fans. we'll work hard to try to find that right dynamic that works for everyone. the current deal doesn't really recognize our cost. that takes away some of the resource to help the game. incredibly the league has been successful by reinvesting the business to drive continued growth. we want to have a pro-growth strategy and relationship where the owners have the resource and the incentive to invest. cost have increased significantly under the current environment of building stadiums as well as all the other pressures on the p and l and getting cost recognition would have benefit the players as much

as anyone else. >> we talked a little bit about ticket prices. they rose about 3.9% according to team marketing reports to around $75. but 21 teams have either kept the same price or lowered them. any concern from the ticket standpoint? a lot of talk here about the jets and giants and moving into new stadiums in 2010. from the ticket standpoint, what's your projections on how that market will be in the future? >> darren, that's something obviously evaluating constantly and currently we're peekting ticket sales to be down in the low single digits. our blackout situation is something we're also working with, using a lot of innovation to overcome the economic situation if we think we can find creative solutions for our fans and will continueto work on that. as i mentioned, you know, the blackout policy is one way to create great fan experience. as long as we do that, we do think the fans will make the choices with the discretionary spending. >> difference between goldman

sachs and the nfl? >> you know, darren, i'm not sure they're comparing apples to oranges. one has an incredible passion for the game of football and the other has an incredible passion for making money. >> anthony, thank you for joining us. we hope you will come back on again sometime soon. steelers taking on the titans tonight on nbc. coverage begins at 8:00 p.m. eastern time. >> that's right, darren. you watch the town hall with timothy geithner and switch over to the steelers. >> there you go. >> one sort of football to another. moments away from another address on health care from the president. joining us to talk about what we can expect, front liner health care strategist miller theybeck and health care analyst with capital street. john harwood is also with us. john, quickly can you set us up with why is he talking about health care again this morning what's going on new? >> i don't expect a lot new, erin, at all. but he's got to try to drive this message. he by all accounts gave a

successful speech to congress. in particular, pulling together democrat, rallying the blue dogs that have been skeptical. he got a favorable response from republican senator olympia snow to those remarks. he's got to keep driving that thing. the finance committee in the it? has not acted. they're planning to act in the next couple of weeks. if that happens they can get on the floor rather quickly. this thing could be on a much smoother path than many people assumed just a couple weeks ago. >> basically, talk about people in congress the past couple of days you can do it really without republican it is you just wanted to get it down. it sounds like they're willing to do that. fid he make new news last night, mentioning malpractice, talk about flexibility on the public option, or do you not think he said anything new? >> first of all, thanks for having me on. i think if you've been watching this debate and analyzing it for many months you would know he really didn't say that much new. he was specific. he gave us a solid speech. i think he really rallied the troops on both sides of the aisle, particularly the

moderates who were sort of on the fence. but the public plans we knew that he would be willing to sign a bill without it in there. but also, you know, wanted to speak to its importance for competition and choice. >> what about tax snes he said the deficit, we're not going to have a dime out of the deficits, which it would just seem to me mathematically that any extra cost here are going to come in the form of tax increases, right? that's just the truth, or no? >> i think that's a fair point. $900 billion bill like the one that he pointed to is, i think, his endorsement of the senate finance product that's working through bachus' committee right now. the you bring that $900 billion down, you have less in the form of new taxes you have to bring in and you can cover most of it with savings in medicare and medicaid. >> mark? >> erin, if i could just disagree with one point. here's what was new last night. the president embraced the kerry plan to place an excise tax on insurance companies which would raise $200 billion of the $300

billion of the revenue they need for the plan. that's significant for two reasons. one, it does tilt toward the senate approach in general. but secondly, that approach is credited by both the cbo and by health economists of both parties of having an effect long-term on the cost curve. that is a credibility point that the president very much wants to have and democrats want to have going forward. and it means that the house sur tax on millionaire incomes are dead. >> i would like to get your reaction. i watched the speech. i got the definite sense that he was demonizing the insurance companies. was i wrong? >> well, i think given the past rhetoric, i actually thought it was more moderate than previous rhetoric. but i guess it's a relative term. that was certainly the take-away from some of what we heard this morning. i actually feel that the comments were, you know, at least moderate. i see this plan moving in a more

moderate direction rather than a more extreme direction. >> managed care is not a dinosaur on its way out? >> well, i think even he said that he's not out to destroy the industry. >> i know he said he doesn't want to put them out of business. that doesn't mean that might not be an unintended consequence. >> fair point. but i think moving away towards the public option or a strong public option and at least even by his time line, it's going to take four years. i think the dinosaurs, as you say, have plenty of time to adapt before they become oil. >> mark, it's pretty obvious that the process is headed toward a triggered public option, meaning there would not be a public option immediately. i was talking last night to one of the representatives of the insurance company who said depending on how that's structured, might be able to work for us. so i think at this point there is no sign that the insurance companies want to go to war with the president and the democrats on this. >> optimistic there.

les and john harwood, thank you for all of you. as we're getting ready for the preside president. mark? up next, correction proofing your portfolio. cnbc adviser network. >> and the president set to make the additional remarks on health care. we are awaiting him to approach the podium. we'll go there when he begins. in this unusually volatile time, you want a financial partner... who is unusually prepared to help. the meeting with northern trust went well, didn't it?

yeah, they get it. they really get it. a little more stability would be nice. northern trust offers the strength and expertise... that can only come from a 120-year track record... of thriving even in difficult times. they understand. roller coasters are for kids, not money. ♪ northern trust. wealth management. asset management. asset servicing.

correction in the market. right as you're getting near retirement, could be a game changer. how do you protect yourself? erin is with, us founder and president, $500 million in assets, ranked in the baron's top 500 independent list of a certified financial planner. want to hear what you have to say. what's the first thing you can do? >> well, to prepare for a correction. we're always preparing, but it

obviously corrections affect retirees and people within five to three years of retirement the most. what people need to do is me pair for lifestyle needs first. what that means is setting aside a certain amount of money and investing in tings like tips, bonds, nonpublicly traded reits and annuities to have enough income to sustain their lifesty lifestyle. >> don't take automatic withdrawals, necessarily? >> no. that's sort of old conventional wisdom. we don't believe in taking systemic withdrawals from balance portfolios. that works really great when markets are rising but it can be disastrous with the long-term correction. instead we go back to the basics. if you're going to need $50,000 to sustain your lifestyle, take the million dollars and put it in a diversified portfolio of fixed income vehicles, you know, to make sure you can at least sustain that lifestyle no matter what happens. >> and so some ways to do this, you're saying is people going to evaluate might be tips, inflation protected securities or real estate?

>> i only non-publicly traded real estate investment trust. you have to be careful about those because we know the real estate market is in quite a flux, especially with refinancing, all of that. we don't focus any time at all on publicly traded reits but we use non-publicly reits. >> how do you get a non-publicly traded reit if you're just a regular person? >> pretty much any football adviser can recommend them. >> erin, thank you very much again. ranks on the baron's top 100 independent adviser '. $500 million in assets under management. the president is going to speak in just a couple of moments. john, one thing you said in that last conversation, and now the president is being introduced, is that the tax on millionaires, top 5%, you think that's gone. is that the same thing you're saying there won't be a tax increase as part of this bill at all? >> no, no, there will be a tax

increase, but the president sort of side with the senate proposal to tax high-cost shoourns plans which raises revenue but also is something that's credited with something an affect on the cost curve. i think by endorsing the other proposal, the president killed that off. >> okay. he killed that off and maybe politically then it looks like he's not increasing taxes on regular americans. it seems if you're increasing taxes on insurance companies, high-cost plans, that's going to be passed right down on to regular americans, right? >> oh, yeah. but there's an important difference in the form both in terms of how they go about raising the revenue and the effect of raise that revenue. this is a much different proposal in the senate. it would hit a certain proportion of health insurance plans, not all of them. it would also hit some union workers. labor unions have been very much against that idea. and especially in high-cost states, new york, california, on the coast where a lot of union

contracts have high-value plans in them. so there will be some touchy moments with some elements of obama's base and also some high income individuals who got a very valuable plan. but that's a different thing from saying we're going after with a sur tax on the million dollar incomes. >> so today, this morning you're saying he's not going to say anything new as opposed to what he said last night. is it safe to say this is, he knows his audience perhaps in the morning? this is an address that can be directed more to cable audiences, i.e., the market? >> yes. he's trying to drive this message, keep it going for the second day. the white house was ecstatic with the reaction they got to the speech last night. republican strategist told me they thought it was effective but their question is, how long does he maintain that momentum. that's what the president is trying to capitalize on now. time is the enemy of the white house and the democrats here, they want to move quickly, they want to get the senate moving within a couple of weeks. that's the key to getting this

thing done. >> john, is it safe to say there's also been a shift. sure they would like to do this bipartisan but they don't care. they want it done right now. if you do it with one republican, so be it? >> absolutely. now, they have tried. they've had long negotiations in the senate. but there are big philosophic differences between democrats and republicans. chuck grassley has been negotiating with max bachus. they themselves might be able to come to a meeting of the minds, but grass rley trying to bring other republicans. that's very difficult to do. the president made remark last night to i'm not going to waste time if your made a calculation to oppose me and he thinks republicans have. >> all right. the president is shaking a couple hands here as he approaches the podium. let's listen to his comments on health care. >> thank you. thank you. thank you so much.

it is -- it is good to be with all of you. please sit down, everybody. it is just great to be with nurses again. it is great to be with becky. i want to acknowledge -- i want to make sure i get them in order. natay, this is linda, and that is sonya. right? i got it right? and i want to thank all of them for appearing with us today. i want to also acknowledge dr. mary wakefield, our health resources and services administrator, highest ranking nurse in the administration. you know, thank you, becky, for your leadership on behalf of nurses. and i want to just thank you for leading an extraordinary organization, the american nurses association.

i was mentioning to becky the first time we met that when i was in the state legislature, i was the chairman of the health and human services committee. and one of my strongest allies in springfield, illinois, in the state capital there, was the nurses association. we did a lot of work together to make sure that nurses were getting treated properly, were getting paid properly, were getting the overtime they needed, getting time off that they needed, getting the ratios that they needed. and so i've got a wonderful history working side by side with all of you to make sure that we've got the best health care system in the world. as a consequence, i want to say thank you for all the support you're providing for health insurance reform for the american people. i am so pleased to be joined by all of you. i've said it before and i will say it again, i just love nurses. i don't know what it is.

i love nurses. michelle knows about it. it's okay. i'll never forget how compassionate, how professional, and how dedicated nurses have been to michelle and i when we need them the most. when our daughters were born, one of our best friends was -- is an ob/gyn. she presided over the deliveries. the truth of the matter is we only saw her for ten minutes. that was it. one of our best friends. the rest of the time we spent with nurses, who not only eased the nerves of an anxious father, but made sure michelle was doing all right, cared for our newborn babies. when our youngest daughter, sasha, was diagnosed with meningitis when she was just 3

months old, it was one of the scariest moments of my life. she had a spinal tap administered and ended up being in the hospital for three or four days. it was such and go, we didn't know whether she would be permanently affected by it. it was the nurses who walked us through what was happening and made sure that sasha was okay. so, that continues in joy of birth but also obviously in tougher times when my mother passed away from cancer, when my grandmother passed away. each time nurses were there to provide extraordinary care but also extraordinary support. and so i'm thankful for them. and as a father and as a son and a grandson, i will forever be in debt to the women and men of your profession. and i know that millions of

other families feel the same way. you're the bedrock of our medical profession. you're on the front line -- you're on the front lines of health care and small clinics and in large hospitals. and in rural towns and in big cities all across the country. so few people understand as well as you why today's health care system so badly needs reforming. now, one part of the problem is the uninsured. this morning the census bureau released new data showing not only that the poverty rate increased last year, at the highest rate since the early 1990s, but also that the number of uninsured rose in 2008. we know for more up to date surveys that since the recession intensified last september, the situation has grown worse. over the last 12 months, it's

estimated the ranks of the uninsured have swelled by nearly 6 million people. that's 17,000 men and women every single day. we know that during this period of time the number of adults who get their coverage at the workplace has dropped by 8 million people. i don't have to tell you about all the problems fighting the health care system and the fact that they don't just affect the uninsured. most americans do have insurance and have never had less security and stability than they do right now. because they're subject to the whims of health insurance companies, many people fear they'll lose health insurance if they move or if they lose their job, they change jobs, or that insurance just won't cover them when they need it the most. because insurance companies can deny coverage if a person has a pre-existing condition. many people fear they won't be covered when they get sick.

because there's no cap on how much a person can pay in out of pocket expenses each year. many others fear that a single illness will lead them inial financial ruin even if they have insurance. and i -- every day i get letters from people. i just got a letter two days ago from a woman who had been changing jobs, had just gone to sign up for her new blue cross/blue shield policy. but in january, when -- before she had taken her new job, she had felt a lump and had been referred to do a mammogram. and found out unfortunately she had breast cancer. well, the new insurance policy just said this is a pre-existing condition, won't cover it. she now owes $250,000. this happens all the time, all across the country. you see it every day. it is heartbreaking. it is wrong. as i said last night, nobody should be treated that way in the united states of america. nobody.

so the reason i need nurses so badly is because now's the time to act, and i will not permit reform to be postponed or i imperilled by the usual ideological diversions. we don't need more partisan distractions. if there are real concerns about any aspect of my plan, let's address them. if there are real differences, let's resolve them. but we have talked this issue to death, year after year, decade after decade, and the time for talk is winding down. the time for bickering has passed. we're not the first generation to take up this cause, but we can and have to be the last. so just in case folks weren't tuned in last night, if they

were watching "so you think you can dance," a show michelle likes, by the way, let me explain -- just explain more briefly than i did last night what health insurance reform will mean for ordinary americans. simply put, it will mean that as folk goes about their everyday lives, one thing they won't have to worry about as much is their health care. it will provide more security and stability to those who have health insurance, it will provide insurance to those who don't, and slow the growth of health care costs for our families, our businesses, and our government. so for the hundreds of millions of americans who have health insurance, nothing in this plan will require you or your employer to change the coverage or the doctor you have. nothing will change for you if

you have insurance. nothing in the plan will require any changes. what this plan will do is make the insurance you have work better for you. we'll put in place strong consumer protections that will make it illegal for insurance companies to deny a person coverage on the basis of a pre-existing condition. we will make sure we will make sure that we place a limit on how much folks have to pay for out of pocket expenses. for the tens of millions of americans who are uninsured we'll create a new insurance exchange. the marketplace where uninsured americans and small businesses can choose health insurance at competitive prices from a different -- a number of different options. and by pooling the uninsured and small business together as one big group, we give insurance companies an incentive to participate and give consumers leverage to bargain for better prices and quality coverage.

as i've said from the outset and repeated last night, one way to give people a real choice when it comes to their health care and keep insurance companies honest, is by making one of the options available in such a marketplace a not-for-profit public option. but let me just repeat, because this is the source of the rumor that we're plotting some government takeover of health care. it would just be one option, among many. no one would be forced to choose it. everybody believes that the vast majority of people will still be getting their insurance through private insurance. add it all up and the plan i'm proposing will cost around 9$90 billion over ten years, $90 billion a year. that's real money. but it's far less that we've spent on the iraq and afghanistan wars.

and it's less than the tax cuts for the wealthiest few americans that congress passed in the beginning of the previous administrati administration. the cost of this plan will not add to our deficit. the middle class will be rewarded with greater security, not higher taxes, and if we're able to slow the growth of health care costs by just a fraction of 1% each year, we will actually reduce the deficit by $4 trillion over the long term. and by the way, when we stop spending money on things that don't improve quality, then we can start spending money on things that do improve quality, which means, for example that we can start paying our nursing professors more money to train more nurses so that we can actually have the kind of quality of care that we need. just one example. a random example that i chose.

now, amid all the chatter and the noise on radio and tv, with all the falsehoods that are promoted by not just talk show hosts but sometimes prominent politicians, sometimes it can be easy to lose sight of what the debate over reform is all about. it's about stories like the one told by an oncology nurse named teresa brown. a few weeks ago teresa wrote a blog post about a patient of hers. he was in his 60s. recent grandfather, steelers n fan, spent the last three months of his life worrying about mounting medical bills. and she wrote, my patient thought he had planned well for his health care needs. he just never thought he would wake up one day with a diagnosis of leukemia. but which of us does, she asked. and then she wrote, that's why we need health care reform. nurses, that's why we need health care reform.

i am absolutely confident that if you continue to do your part, nurses, you guys have a lot of credibility, you touch a lot of people's lives. people trust you. if you're out there saying it's time for us to act, we need to go ahead and make a change, if all of us do our parts, not just here in washington but all across the country, then we will bid farewell to the days when our health care system was a source of worry to families and a drag on our economy and america will finally join the ranks of every other advanced nation by providing quality, affordable health insurance to all of its citizens. that's our goal. we are going to meet it this year, with your help. thank you very much, everybody. god bless you. >> thank you very much. >> thank you. >> thank you. >> john harwood is back to react. john, seems like he focused more on anecdotes and i'm dead serious here, i want to get this done. tried to make a joke about the perceived government takeover of

health care. did he go as hard as you thought or not maybe as specific as you thought he might have? >> no, i think it was a much lighter version of what he did last night, expressing some of the same confidence to get it done, some of the pam impatience of what he thinks is the exaggeration or the sort of nastiness of some of the rhetoric on both sides on this. and as i mentioned before the remarks, he's tried to drive this message a second day. they felt like they did what they wanted to do last night and they got a good response from some of the moderate and conservative democrats. they want to keep thatle radioing for another day before the president moves on to other stuff. you know he's got on saturday a pep rally for health care in minnesota. he's going to drive this message all of the way through weekend. >> we appreciate it. coming up, a manual want to hear his views on the health care reform. ceo of one of the biggest companies in america, dow component, bob iger is our guest next.blesse inspiration ♪

♪ i don't know much ♪ but i know i love you ♪ and that may be ♪ all i need ♪ to know (announcer) customers love ge aircraft engines almost as much as we love making them. innovation today for america's tomorrow.

we're back. disney is hosting the biggest fan event ever called d-23. it starts today at the anaheim convention center. that's where we find cnbc's julia boorstin with an exclusive interview with ceo bob iger. >> well, mark, bob iger is a man behind this massive and pretty unpress decedented expo. disney new content and rides, also showcasing classic disney memorabilia.

what is the strategy behind this event? >> well, it started with our most loyal fans, customers, who came to us and said that we should do something for them that they had a connection to the company that was really special and they wanted that connection to be a little bit more direct and a little richer. and so they actually were the inspiration. we decided that we would give back to them, which i think is really important in today's world because when you show appreciation for or to your most loyal customers, orphans s fans case, then they become your best marketers. in today's world with the power of digital media, that becomes very important. >> disney unquestionably has incredibly strong brand. among the strongest brands in the business. you face very steep competition, not just from nickelodeon but all of the ways that people find entertainment now. there are so many options.

is d-23 a broader strategy? >> well, it doesn't really go much beyond what i talked about. one of the ways you differentiate yourself is by connecting to the people who love you the most or who why you the most or who watch you the most or whatever. we have over 80 plus years in existence as the disney company, developed a fan base extraordinary, global in nature, all ages, all genders, different ethnicities. i believe that by keep that connection really solid, then the competition is going to be one step behind us. no one has connection to people the way the walt disney company does, and we aim to strengthen that. we can't take it for granted, either. >> this week disney announced it's buying marvell for $4 billion. how does that fit with disney's overall strategy and this? >> it's interesting, you can start with the fan base of marvel and its comics. they have very similar

attributes in that regard. people who are just unbelievably passionate about those characters and those titles and grew up reading them, and have their kids growing up reading them. so we're very similar in that regard. in terms of marvel, what it's all about is creating great characters and great stories. the test of time, that work on any platform, that span territories, that for disney, work in every one of our businesses. it's a perfect fit for us and we bring into the company, a lot of really good tall leapt, which is vital in today's world. >> i think you want to job in here? >> i'm in washington, so i want to ask you the big question here. i feel really lucky we have you on today because the ceo of

disney, you've got 150,000 employees. you know what's in this health care reform and have an opinion on it. what would change for disney employees if this passed? >> well, we obviously have to study whatever legislation meaning the specifics of it is proposed, but this is obviously a subject that's near and dear to our hearts given what you said, the size of our employee base, and the fact that cost of health care benefits have gone up significantly, so to begin with, this company is a huge proponent of reform. it is necessary not just for the american people, but american businesses. the company has been familiarly focused on this because in florida where we have 60,000 employees, the cost of health care is particularly high and we've taken some aggressive steps to reduce that. starting with helping to get our cast members healthier.

there's a full -- there's a very, very significant health care facility we've built at walt disney world that affords the employees and their family's health care right on premesis. we're willing as a company to take steps to make this better. we realize that everybody's going to have to sacrifice in some form in order for this system to get reformed and we're big blefrs in something being done. >> switching gears a little bit, how's the ad market? >> our cfo spoke yesterday at a conference and said we're seeing some signs of improvement, but we definitely have seen over the last i'd say three to four weeks, improvement in a number of our businesses that rely on advertising. i'm not suggesting that it's bounced back in a tremendous way, but definitely better than

it was. >> wait a minute. has it permanently changed? the reason i'm asking is i'm thinking you know, the automakers were always huge advertisers. that's probably gone. how's the market permanently changed in that sense? >> well, it's not gone. we're actually seeing when we talk about improvement, some improved spending among the automotive makers. ford in particular has been in the advertising market. general motors as it emerges is going to have to get really aggressive in marketing, particularly if they have new product online. they're going to look for the best places to advertise. when you're looking at abc and espn, the various properties we have, we're one of those. >> another place, the theme parks. we just got a sneak peak at the reports area. you have two new cruise ships

launching. and you're expanding in your hong kong theme park. what's your outlook on the properties? >> all of the investments are long-term investments. they are not investments aimed at improving our bottom line right now. they're in essentially we're focused on improving the bottom line of the company and creating real value for the long-term. the cruise ship has been a great business for us. the first of the two new ships launch at the end of 2011. we believe there's a likelihood the marketplace will be better then. hong kong, a necessary expansion to a great park. that's going to take a little bit of time. we're putting a substantial amount of time into california adventure here. that will be finished in 2012. also, the long-term, we don't have any conditions about the

economy today as it relates to those investments. >> bob iger, thank you so much for joining us. back to you. >> thank you, julia. up next, a final check on the markets. i drove my first car from my parent's home

in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970.

exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%. 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. anything before takeoff mr. kurtis? prime rib, medium rare. i'm bill kurtis, and i've got plenty of room for the internet. and the nation's fastest 3g network. (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.

the market is now up 24 points. let's get back to matt nesto with a look at health care winners and losers. >> the tug of war is far from over here today. last night did mark the latest round. but looking at some of the stocks rising today, and this is a hybrid reaction because some of the health insurers are going to fall into financials. some of the h