de's session here at the dow jones industrial average, down at the new york stock exchange. drifting gently higher, lighter volumes. but not bad. a lot of the bulls are getting excited that the m & a came back again. wlefg increasing cash flow emerges on the market, that's good for the m & a. and argue will push stocks higher. question, could the u.s. stock market do better on the recovery in taking that cash flow and using it to buy those stocks further down the line. bear in mind some of those deals coming through, xerox, a big thumbs down today from the market. having quite a hard time. ceos are not really sure what the new normal might be further down the line. maybe making some of the errors for the structure for taking

their companies forward. the key determinant of how the market is likely to trade going forward. monday's session we'll count you down to the close of the market. maria bartiromo returns after the break. it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm ba ri a bartiromo on the floor of the new york stock exchange. the triple-digit rally for the dow jones industrial average today, the rally resumes. stocks getting a nice move on the upside with the dow showing the triple-digit gain on lower than average volume, as trading slows down the yom kippur holiday today. today's uptick off by a number of deals, a pair of deals actually, big ones.

xerox acquiring a service at #$.5 billion. and a pharmaceutical business for $6.6 billion. a good move in the price of oil. prices tick up by more than 1% on oil. coming on the heels of today's equity rally. and in the face of rising tensions with iran. here's a look at how we finished the day on wall street. the dow jones industrial average off of the best levels of the session. just a fraction alli so. then s&p 500 ticks up 18.5 points. and the nasdaq, technology, up 40 points here, nearly 2%. we have all the action on the eye on the floor. >> mernler monday, maria. feeling today's broad-based rallies. one point it was up 155 points. still erasing almost all of last week's losses of over 150 points

for the dow jones industrial average. we saw gains in financials. materials, concessionary stocks. the only area of weakness we saw really was airlines. one of the strongest performing groups for the third quarter, up just about 72%. the deals of the day were the big news as you just saw. xerox down on the news of acquiring the affiliate computer systems. the news about affiliated computer services spilling over into other i.t. stocks. computer sciences, as well as ak censure. getting a lift from citigroup which upgraded the stock on expectations that its profit margins are going to expand. cisco one of the best performers there, upgrade there. barclays we saw strength in american expression, boeing and bank of america, among the dow's big winners. tomorrow we have some key earnings news. walgreens reports before the

bell. nike afterwards. and we'll get consumer confidence numbers along with the kay schiler home index. 964 million shares changing hands because of the jewish holiday. nevertheless, broad-based rally with the dow jones industrial average up 124 points. now back to my colleague, maria bartiromo. >> thank you very much. mary thompson. the nasdaq seeing a pretty good move on the upside. brian shactman manning the place at nasdaq. >> thank you very much. we finished up 1.9% up almost 40 points. slightly off the highs. take a look at the interday. we were up pretty strongly in the first hour of trade. it held up throughout the day. we had a tiny dip toward the end. a little bit of buying right at the end. almost got to 2% straight up. the top stories, apple up more than 2%. they're going to have the iphone m china and uk and 2 billion apps downloaded. the chips also very strong today. i want to point out the semiconductor up 2%.

private materials, that upgrade helping that. the broad based element of the rally, i quickly want to touch on the big names. amazon was in step with the whole composite. dell computers up 2.2%. yahoo! participating up 2.3%. the retail rally continues. i want to take a quick look at bed, bath & beyond. strong throughout the entire day. up 2.5%. the financials, i talk about the regional banks, how about the discount broker, t. rowe price, ameritrade, schwab, all with strength today. t. rowe up nearly 5%. finally, obviously research in motion did not participate. they have incredible struggles after their earnings late last week. some of the analysts said buy the dips. they came out with notes on this. people didn't buy the dips. lost another 2.5%. now it's closer to 65. we were talking last week about

90 for rimm. >> that's really interesting, buy the dip is certainly the way that people have been going with the broader market, right, brian? every time we see any upset, you've got money coming into this market and that's where we keep seeing this rally resume. >> the endless commodity, when they raise their price target, get to 52-week highs, they think there's room to run. this is the one exception to the rule. >> it sure has. i guess the numbers on friday were really one of the concerns there. brian, we'll see you a little later. thanks very much. we break down the markets right now. investing in this environment with bernard, portfolio manager of the medium aggressive growth fund. and chief investment officer at portfolio investment management. welcome back to "closing bell." >> thanks, maria. >> bernard, let me kick this off with you. where is the growth in this market and economy? >> well, i'm buying retail stocks and industrial stocks, particularly on the i.t. side, supply components for companies.

basically i think the retail stocks have a lot of leverage over the -- over manufacturers. fewer retailing choices for the consumers to go to. they're starting to offer exclusive items that you cannot find elsewhere, which helps the competitions. we've got to the industrial for stocks. we've cut back a lot of our costs. i think a lot of leverage when demand for the investment rebuilt continues. >> lee, do you agree with that? >> i probably want to ask bernard, when you talk about buying retail stocks, are you looking more of the discount retailers or more like luxury goods. and my second comment that i'm very interested in having bernard answer, because i'm very interested in his opinion, as far as the industrial manufacturers, is he concerned at all that the recent spike is really about, you know, increasing dwindling inventories or really think we're going to have demand going into the next year?

which i don't necessarily see. >> yes. that's a good point, bernard. what do you think about that? so far, much of the earnings surprises on the upside have been more about cutting expenses, to get to that earnings strength as opposed to actual end market revenue growth. >> well, i'll answer the two questions. on the retail side, i would buy into the category leaders, the whole foods, the dick sporting goods, car max. you know, i think these guys, during every session, the weak have gotten weaker, and the strong have gotten stronger. the number one people on the luxury side or discount side, both of them will benefit well. even if the consumer is slow to get back to spending. i think, again, they have leverage. the industrial side, i agree with brian with regard to the fact that so far we've got only one way to invest. in the last two quarters of, you

know, between last 2008 and first quarter of 2009, there was absolutely no investor addition whatsoever. so right now we have replenished the inventories to the bare-bone level. demand ticks up and as companies become more prepared to meet that increased demand, i think inventories will -- >> but the shipping index is down about 50% from the highs from the summer. go ahead. >> let me ask you a question. because you say that rimm is the firm's really case study for what's happening right now. >> yes. >> research in motion. tell me what you mean by that. >> well, you know, this weekend after i saw the action in rimm, you know, at portfolio asset management, what we did is we felt this was the case study of exactly the psychology of the market right now. number one, not all bad news is going to be shrugged off. we think that contrary to a lot of the popular anecdotal evidence that there's still a lot of money on the sidelines,

we think most of the money for stocks, that allocation is in the market. so i think when we look at something like rimm falling completely out of bed, nobody's buying on the dips, we see that as a cautionary tale for anything you buy, buying on the dip is not going to work for everything. so we would rather look at the defensive names. in the retail side, we're still long walmart. we like things like pepsi, philip morris, we like at&t and exx exxon. we want to urge professional and non-professional investors to look at rimm, put the chart on your bathroom mirror, and have it be a reminder that anything at this point can go down and go down big. regardless of what the index says. i think the index is going to be up in the next month, by the way. but you don't want to get rimmed at all. >> all i need is the rimm chart on my bathroom mirror. my husband will really go nuts. as far as working all the time. no, no, i get what you're saying. in fact, bernard, you also like

walmart in the retail space, don't you? you also think this is a stock to own for the long term? >> yeah. i think, you know, a lot of the goods, they sell. essentially integrating vertically. so that is a good margin in the future. >> all right. gentlemen, good conversation. we appreciate it. go ahead, you have the last word, lee, please. >> seasonally small caps should outperform right now. i think because of the 80% surge in small caps, since the march lows, i think big caps should outperform going forward. and i think that dovetails into what bernard is saying. >> we'll leave it there, gentlemen. great conversation as always. we appreciate you being on tonight. >> thank you very much. >> thank you. here's a look at some of the other stories we're following on the "closing bell" ticker. applied materials getting a boost after citigroup upgraded the stock to a buy from hold on upcoming cost savings. also raising earnings estimates

next are year. up 2.75%. joseph a. bank, the closing retail hear seen its stocks drop about 3% in the past week, after a pretty good move before that. the stock tonight up 1.25%. up next, the latest on all the action in the m & a market. a pickup in activity, including today's announcement by xerox and abbott labs. is it more than meets the eye? we'll take a closer look. the housing industry could get more help ahead from the obama add mrngs. look at the proposal. what it could mean for homeowners.

welcome back. pardon me. mergers and acquisition volume woosting the market today.

my apologies for that. i'm so sorry. after a pair of deals from abbott deal making acquisitions of more than $6 billion apiece. m & a back to business. >> we've seen nearly $60 billion in deals announced in just the last five weeks. a sign that perhaps businesses feel confident enough about the economy to take the m & a plunge. that's certainly true of abbott labs. its $4.5 billion euro class deal is valued at nearly $7 billion u.s. it comes on the heels of a handful of smaller acquisitions recently. and that $1.4 billion purchase of advanced medical back in february. xerox ceo ursula barnes said the acquisition of computer services transformational, giving xerox the outsourcing and data processing capabilities that clients are ke manding. processing paper, she says, is still key. >> i've been steeped in the last

couple of weeks in the world of m & a, as you can imagine. if the world is going paperless, i think m & a would be out of business. >> xerox shares got hit today, over 14-piece on the news. $63 a share price marks 33% premium on its closing price on friday. acs, on the other hand, was up just about the same amount, nearly 14%. but if ursula burns is expecting burning of documents is to be a revenue stream, she might have to wait a while. we've seen nearly $5 billion in deals according to thompson reuters. that's down nearly 40% from this time last year. just ahead of the financial crisis. and down more than 50% from 2007. the year that deals peaked globally. most of the deals we've seen have been in cash, and stocks. one year after the financial crisis, leverage buyouts are virtually dead. according to capital like rich

peterson over at s&p, we've seen only about $12 billion in private equity deals this year. that's about 3% of the total here in the u.s. compared to pre-financial crisis levels when they were close to 30%. so right now, without that credit being as plentiful, at least not in the same way, we aren't seeing those leverage buyouts. the biggest deal yet still up in the air. the clock is ticking, the uk takeover panel is expected to said a deadline for wrapping up that deal sometime this week. maria? >> bertha, thank you very much. let's get a closer look at the mergers and acquisitions. frank at sullivan cromwell. gentlemen, good to have you on the program. welcome. >> good to see you, maria. >> frank, what are you looking at in terms of your book, in terms of deal flow? are you expecting this to heat up in the coming months? >> for sure, maria. this goes back a little bit to

what we discussed a few months ago when deal activity really was very quiet. and to a certain extent, the last 12 months has been extraordinarily difficult to get any deal done, even if you had the cash, buyers were reluctant to spend it. however, in the last few months, as the recession has bottomed out, i think we've seen a lot of strategic buyers willing to get back in the market. and there's been a really strong trend towards that. and we have a lot of deals that are in the pipeline. so i'm very optimistic. >> so has the structure of the deal changed? clearly, debt has become a bad word. have they moved toward more cash? how has the structure changed? >> certainly. first of all, when you're talking about a strategic buyer as opposed to a financial or private equity buyer, there's going to be more cash in it, less money being borrowed. when you look back, you see that although it's been a bad year

for the economy, most big businesses cut early and they conserved a lot of cash. s&p 500 companies went from $600 billion in cash a year ago to over $700 billion in cash today. on top of that, these are companies that can borrow and they can borrow at relatively low, really historically low interest rates. so what that means is that the strategic buyers are able to go back and do the deals that they really want to do. and i think that's what we're seeing. and we'll see more of it. >> and howard, from your standpoint, you've seen a significant pickup in discussions? you think this will bode well for the first quarter of next year as well? >> i think our august was about as busy as an august i've seen be. i think frank would agree there were a lot of vacations that were cut short in the hamptons this summer with the level of activity we had. the transactions take about

four, five months to gestate. so they won't really materialize until the beginning of this quarter, beginning of next year. they're doing exactly what you want to do when you're near bottom, which is go out and buy, a competitor or market you're targeting for quite some time. they have the access to the capital they need. so they find themselves in the position where they can do these large game changing strategic acquisitions which is really exciting. and feels very good from m & a market perspective. >> let's talk about deal sectors. where do you think we'll see the most activity, gentlemen, is it sort of fractured? or, you know, sectors in trouble that need growth and will look outside, out of the box to get the growth in a contraction situation? or are these strategic deals or what? what sectors do you think we'll see the most activity? >> i think we'll see a lot of

activity in the financial services for all the reasons we're all aware of. i think we're also going to see consumer products, consumer services be an area. to a certain extent, energy, high tech, consumer products, basic materials. those really are the areas that i'd look at. but the point i'd make, maria, is that given where we are in this cycle, it appears that whether it's an entertainment deal, an energy deal, a high-tech deal, the deals are getting done. it's not just distressed deals in financial services, it's not just, you know, the pharma and health care deals. it's across the board. i think we'll see it also across geographies. >> howard, do you agree with that? >> yes, i do. and i think we'll see an uptick on the industrial side. we've seen the $100 billion to $1.5 billion there's little activity. it's either been large strategic

deals or small transactions. it's time for the industrials to come forth and achieve synergies from a cost saving perspective and revenue. the recovery in the economy is happening. should see more industrials coming to life. capital goods, those types of transactions, we should see more of those. hopefully at the end of the year, beginning of the first quarter. >> do either of you think a pickup of the deal is slowing in terms of the performance of the market? >> i do. to a certain extent when you look at any bull market, one of the things that has kept it going is a certain degree of m & a activity. first of all, you put premiums into the market. you calibrate what companies in a particular sector might be worth. and then cash goes to the shareholders, and they put that back in the market. so m & a activity has always been linked very closely to bull markets. and i think the dirth of m & a

activity over the last year has been a drag on the equity markets and hopefully we're going to see them both going along the same way. having said that, if the equity prices get too high too quickly, it will put a damper on the m & a activity. >> howard, when you have a strong stock market, that also is an indicator for companies, because they will use stock in terms of their currency. >> absolutely. they'll use stock, and also from the perspective of the m & a risk that was mentioned earlier, that's a very important point, because these ceos and these boards are taking a look at their prok expects for the next year or 24 months and deciding to take the large calculated risks that 1 plus 1 equals 3. that is a strong bullish signal for the market, that these ceos and boards believe the prospects that their businesses together will be much greater than that alone. i think as the equity market is looking at the m & a market for a signal, that's a very strong

bull ir call. >> we so appreciate you weighing in on this important topic. see you soon. the kings of cash. which companies are sitting on the most cash. we'll break down names when we continue on "closing bell."

welcome back. they say cash is king. especially when m & a is on the rise. matt nesto joins us with a look at the kings of cash. >> to paraphrase mel brooks, it's good to be the king. if you take a look at the cash mountain, and the deals that are out here, you know, bertha, and your previous guests were talking about it, there's a lot going on here today. the big picture is that investment banking will be down north of 50% whether it's quarter on quarter or year on year. but it is building. that is unden yabl. if the look at the deal today, only about 1/3 of it being done in cash, the rest of it in stock, the fact is that there has been about $370 billion in global m & a activity so far this quarter. one of the things that we're seeing, and you think just last week, unilever buying the sara

lee unit, the cross-border action, the dollar is down 15% since the march lows. it just makes things cheaper for foreign companies. of course, kraft going oversees to buy cadbury is sort of -- smacks in the face of that. but a deal's a deal. you've got to go get it. look for foreign companies to say, hey, america is on sale. lastly is this whole thing about the strategic acquisitions, strategic purchases. it's easier to buy your business and grow your business and buy your market shares sometimes than it is to actually invest and hope it all works out and just build it. if you take a look at the kings of cash, i broke it down, maria. you were kind of fishing here in terms of key sectors. technology, the biggest weighted sector, those top five companies by market cap have over $120 billion in cash on the books as of the latest quarterly reports. if you take a look at health care companies, we've seen so many health care deals, many

more to come, but pfizer, just to name one, if you will. but j & j, pfizer, abbott, close to $100 billion in cash on their books. the honorable mention is kind of an eclectic group of stocks that have a lot of cash. they tend to be large caps, if they're going to make this list. but ge, exxon, walmart, time warner, and coca-cola, all with a substantial cash holding in either the tech or health care sectors. maria? >> matt, thanks so much. we'll see you later. more help could be on the way for beleaguered state and hol housing agencies. will the multibillion dollar plan by the administration be a key trading point for the housing industry.

welcome back. the housing market may be on

deck for another federal boost. the obama administration is close to committing $35 billion to help state and local housing agencies provide mortgages to low-income families. is this the right move? simply a case of tossing good money after bad? here to talk about it is fred glick of u.s. loans mortgage and u.s. spaces. good to have you on the program, mr. glick. >> thank you, maria. >> what do you think about the new proposal? >> i think it's kind of silly. we have an existing structure in place where people can get fha, va, usda mortgages. they don't need to go specifically to the states to do it. i'd rather take the money and do some other things to help the economy rather than to just give it to another cumbersome state craziness is really what it is. >> the program could be in place for as long as three years and would involve the administration essentially buying debt, buying the debt from the housing agencies. if the housing agencies default on their debt, taxpayers lose out again, don't they? >> exactly.

so we have fha, we have va. and when you have fha and va loans, the borrowers pay into a fund which helps pay off bad loans. so i have the idea of eliminating fannie, freddie, fha, va, have everybody pay a little insurance into a fund, and have the government back every single loan, then we won't have the crisis of banks going down completely. >> but we still have a fragile housing market. is it too fragile to survive or too fragile to jeopardize another upset without government help? >> the problem is, we need jobs. jobs are job one in this country. without jobs, nobody's going to buy a house. what i'd rather see you do is take that money, give it to people who have great credit scores, really good income, but through no fault of their own, their house is worth less than it used to be. maybe they're even under water. if they can save $200 or $300 a

month, especially out in california, then what they're doing is putting their money back into the economy, helping to revive the economy, getting people jobs. then those people who have jobs can buy houses and go fha and va. and usdas and other programs that are still at 100%. so it's all about the jobs. that's really the bottom line here. >> how do you get job creation then? what's your view on that? >> well, we're going through a situation that is going to make it really tough. we don't have something like the internet like we had in the '90s, which was fantastic. you know, all of a sudden this stuff started booming up. everybody created all these jobs, especially out in california. then they went here and there. and then the economy was created. there's nothing like that. if i knew what that was, i would be investing in it now and retiring. if we could figure out what that is. i think we're going to be on a nice slow, steady, sort of kind of upturn for about five years until we invent something that really needs to be created in

this country, that we need to put people to work for. >> right. well, you know, i mean, maybe we could see some incentives for business, and then business could create new jobs of the they're not going to do it in the face of uncertainty going into 2010, right? >> of course. but they can't just have make-work jobs that will last a small period of time. we need to give people careers. we need people to say, i really want to have this job and stay here, and i'm going to be here for a while. so then they get the confidence to buy a house. right now, i don't know if i'm going to be in my job, i don't know if my job is going away. i don't know if this industry is going to be around in a year or two. >> let's get back to the housing topic. it's easy to look at other government programs, and critique what's going on in washington. as opposed to really looking at local housing. how would you characterize the market right now? >> well, we have the tax credit. and we're about near the end of where you have to put in an

agreement of sales so you can close on november 30th. people rushed in the spring, and they kind of peaked around, and then in the summer it slowed down a little, and now people are kind of rethinking, so some little segments of the market are doing well, but some have slowed back down because of the uncertainty, because of the fast that the good houses were gone. there's still a lot of overpriced stuff. and i think they should, to continue the little bit of momentum that we have, reinvigorate the tax credit. but i think it should be that people should pay back the money. giving it away doesn't work, because this is exactly like giving 100% loan and having the seller pay all your closing costs. you have no skin in the game. if you were able to get 5% or 10% as a down payment for a loan from the government, let's say it's $10,000, but you know you have to pay it back over tep

years with a little bit of interest, the government's getting the principal back, they're making some interest, but the big thing is, if you don't pay it back, it's coming out of your tax refund. i think people will think twice and then really use it and think about using it, before they think about using it, they'll really think. and say, okay, i'm really going to do this and really going to stay here. >> really great point. great to have you on the program. thanks so much. >> thank you. >> we will see you soon. we appreciate your thoughts. fred glick joining us, principal innovation allist. the ups and downs of oil prices. will we see the prices stay in the $65 a barrel range for some time? they've served for decades as a golden, tasty sidekick... french fries, and our national passion for them, are legendary. classic. iconic.

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time for going global europe. >> hello, i'm guy john, watching europe tomorrow. gordon brown speaks at the labor party conference in brighton. will we hear more about bank bonuses and the fiscal responsibility. we're going to take a closer look at what angela merkel's new

government could look like as her coalition negotiations get under way. we'll ask how business friendly her new government will really be. british airways launches a business-only class flight between london and new york. can the airline afford to offer this luxury. catch all the action overseas at cnbc world headquarters. going global for your money. oil has been a global story. moving higher, with equities today, hovering near the $70 a barrel mark, looking for clear signs of an economic recovery. traders eyeing the latest developments in iran after today's missile test. more on the oil prices next with mark wagner, and kevin kerr, president of kerr trading international. gentlemen, nice to have you on the program. welcome. what is the appropriate price of oil in your view based on the supply and demand fundamentals?

>> we're probably seeing right about where it should be. we still have plenty of supply, and not much demand. but oil being able to sustain these prices, at these levels, with all those factors in place, concerns me a little bit. we're probably valued between # $5 and $80 right now. that will probably continue into the first quarter of next year. >> do you agree with that? let me get your take in terms of pricing and where it should be. because some people might say, look, the 70s, probably more appropriate. others might say, we're not necessarily seeing a fantastic rebound in terms of economic fundamentals around the world. so where is the demand coming from? mark? >> well, right now, demand is slow. and in fact, we're seeing bills across the board. i estimated we should be lower than where we are right now, around $59, $60 range. but i do believe the prices are going to be going significantly higher as we go into the new year, and demand does pick up as the economy gets better. >> where do you want to be invested as oil stays around

these levels, or perhaps moves higher? do you think this is a dollar weakness story? is it an oil-producer type story? where do i want to be invested if in fact that continues to materialize, this scenario? >> i think what you have to do right now is look for any dips in the marketplace and pox yourself especially with what's going on in iran. things to look out for them, doing a blockade of the straight of hormuz. what is israel's intention, and what's going to happen at the upcoming meetings october 1st between the different countries, u.n. and possible sanctions. >> do you want to be looking at commodities as the dollar weakens in this environment, kevin? where are you on that story? >> absolutely. you know, we have to look at the inflation play. the dollar weakness is a major part of this. of course, the uncertainties in iran are not helpful to lower oil prices. i agree, oil prices are going

much, much higher. any type of recovery is going to be driven by energy. this time it could be worse, maria, because we at seeing the investment and infrastructure, we aren't seeing the investment in drilling. all that talk is off the table right now. when demand comes back, we'll have less supply than the first time around. >> what about other commodities? in addition to oil? would you also be looking at things like copper, iron, the iron ore steel, gold? >> absolutely. we're looking at all the base metals, the precious metals. we've seen a big run up in gold and silver here. we're looking at the agricultural sector. all would benefit from the lower dollar. we think the dollar has further weakness to go, although we're hearing a lot of bulls come out and say it's got to bounce from here. but it's a great time to be buying into commodities. >> mark, what do you think? >> well, i have to agree with most of what he's talking about. i disagree with the grains. we've got such larjs supplies coming onboard. unless the foreign countries come and boost up export sales,

we're going to see the grain markets depressed for soem some time. the dollar denominated, the products are going to go higher. but the dollar is going to sink quite a bit further. >> okay. and so as the dollar sinks, do you want to be invested in the commodities? typically as the dollar goes lower, oil prices are moving higher. >> this is very true. that will tend to be so. you've seen some divergence in the last few days. i think we may see crude oil back off just a bit. long term, we're going higher. i think $100 to $120 a barrel next year is likely. >> okay. and are you where kevin is in terms of buying other commodities as well? >> absolutely. a good example of this is copper. copper's just been on a raging bull market. it's steadily continuing to go higher. and i think gold, although it's backing off a little bit in recent days, is probably going to be headed higher as well. some people saying up to #$,100, but i think that's a little

ambition. >> but what about the oil producers, who are really having the vantage point of seeing where the demand is around the world. do you want to be owning stakes in some of those oil producers? >> i don't see why not. the profits are going to be going up. i'm a little worrisome if you're looking at refiners right now, because the crack spreads aren't very advantageous. your large producers, yes. >> do you agree with that, kevin? >> i do 100%. these are great bargains in companies that have made money hand over fist. they will continue to going into the future. >> gentlemen, thanks so much. >> thank you. >> we'll see you soon. up next, we'll take a look at one baby clothing company that's brought out of bankruptcy by one unlikely investor. find out who's getting into the baby business coming up. !e!e!e!e

what do liberty media and the baby business have in common? apparently a lot based on one of liberty's recent financial moves. jane has the story. >> liberty hit a 52-week high

today. but the right start has gone wrong so many times. however, with john malone backing it will it finally get the right start? >> 1, 2, 3. >> the chain's gone bankrupt three times this decade. in may, liberty bought fao schwarz. it's reopening the nine stores it has chose tone keep and preparing a complete makeover of the website. not what you're seeing now. you'll see a new website in a couple of weeks. we got an exclusive interview with the new ceo who ran the parent company, which went bankrupt. why does ceo mike wagner think launching a higher-end retailer be profitable by april? and why would john malone get into the baby biz? >> he believes we can be the

category killer in the baby space. they look at these stores as premiere stores with an online presence of where they want to grow the business. the toy business is tough. i think if i thought this was a toy store, i probably wouldn't have signed up for it. >> wagner says only 15% of what they sell is toys. it's mostly strollers and car seats. the store plans to honor the $400,000 in gift cards before the last bankruptcy. >> why not go on qvc? >> it seems like a natural fit. but wagner says john malone likes to let his businesses operate independently. but at some point down the road we may see this synergy we always hear about. >> let's take you over to the

markets with melissa lee coming up on "fast money." >> full show. it is merger monday. we asked who is next? we asked about the potential target on friday. we'll see who is on his radar today. also on the occasion of this nice rally on wall street, we kick off our series "slow money." guy will bring his pick to you tonight. all at the top of the hour on "fast money." >> thank you, melissa. up next, what could move the markets tomorrow. you're watching cnbc. this is my small-business specialist, tara.

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i'm bertha coombs watching for new signs of stabilization in the housing market. i'm mary thompson, this is what i'll be watching for on tuesday. walgreens expected to report earnings of 39 cents a share. high unemployment is expected to impact sales of its general

merchandise. nike reports after the bell. analysts see profits falling to 97 cents a share on slower sales. finally today, president obama is going for the gold. he's throwing his support behind chicago's bid to host the 2016 olympic games. the president confirmed he will be in copenhagen later this week to make a final push to the international olympic committee. aside from his home town, the other cities include rio de janeiro, tokyo and madrid. leaders from those country will be in the danish alcohcapital o monday. in my exclusive conversation last week, rio's president told me why they would win the bit. >> translator: it's among the largest 10 economies in the world. it's the only of the 10 largest economies in the world that has never hosted an olympics games

before. the u.s., spain, tokyo, why doesn't brazil have the right to organize for the first time the olympic games and south america? we're talking about 100 million youngsters living in south america and the border lines of brazil that can attend the olympic games. >> the president also told me that rio's advantage is its youthful population and beautiful beaches. it appears that rio and chicago are the front-runners at this stage. we'll be following this story. take a look at the day on wall street. it was another good day. the dow jones back above 9789. nasdaq strong with technology among the better perform approximaters. cisco's stock was up 5%. the nasdaq 39 points