more than expected in september following 11 months of contraction. right now take a look. the dow up 73 points. a gain of seven-tenths of a percent. s&p 500 following suit. some of the financials doing well this morning after goldman upgraded a couple of names. s&p now up almost 11 points. a gain of better than 1%. meanwhile, over on the tech heavy nasdaq we are up 22. a gain of better than 1%. we want to head to bob pisani. hey, bob. financials certainly leading the way. >> that's right. let's take a look at some of those big names. it is interesting about the goldman call. regional banks have been doing fairly welcome paired to some of the big banks. although jp morgan is outperforming everybody. their point today in upgrading the big banks over all is very simple. their earnings power recently and in the next couple of quarters should be greater than the regional banks overall. that's the reason for the upgrade over to regional banks. jp morgan, citi, bank of america doing well.

specifically, they also upgraded wells fargo to a buy there. wells fargo, those who think these calls don't mean anything, wells fargo is outperforming all the other big banks this morning on the very specific upgrade. the big issue is the earnings situation. the one question on everybody's mind. when are we going to see some topline growth? in the fourth quarter? we probably aren't seeing much in the third quarter. that's the big issue. here's the problem. we're not getting the early evidence. early commentary from most of the companies aren't there. topline decline wipes out cost saving. toplines weak, profitability okay. these are headlines from big analyst conferences, big analyst calls in the last several days. overall it's not quite there yet. and that is one of the reasons we're seeing some sideways, slightly down action in the stock market in the next couple of week. we need to get more positive commentary as we move through the third quarter comments. howie over at the nasdaq. >> we're looking better this morning. we're actually picking up steam,

the nasdaq up 21 points or 1%. it's really tech that's driving the market here today. specifically, more m and a talk. "the wall street journal" report that brocade sup for sale. it's up 17.5%. picking up steam as well as rallying. not to be left out we've got net out. even seeing shares of oracle mentioned by the journal as one of the potential buyers. brocade. it's turned up almost 1.5%. that's deal talk. we actually have a real deal in the pool. pool corporation is buying a west coast based privately held pool supply company. because the pane is saying that this will add to earnings as early as next year, we're seeing that stock up 2% right now. then we've got a trio of small biopharma stocks. they're making big moves. they're little stocks making big moves on drug dadata. moving in opposite directions.

we've got a very small company there. it had a big bullish article in barre barons over the weekend. follow me on twitter. over to you. with another 263,000 jobs lost in september and unemployment inches towards 10%, the question on everyone's mind is, how can we create new jobs and create them pretty quickly? joining us now, from the competitive enterprise institute. cnbc's steve liesman with us as well. thanks to both of you for joining us. john, let me ask you, where do you think the jobs are going to come from in this recovery? >> i think we have to look at government policy as far as we have to go away, move away from the government trying to create jobs with more stimulus and,

instead, melissa, lifting the barriers to private sector job creation. things that raise the cost of capital for innovative businesses like the sarbanes-oxley act with these accounting mandates that make it hard to go public can accounting costs. >> steve, isn't the argument against that always it's going to take too long? one of the arguments? >> most certainly. it's a delicate balance to get the government intrusion into the private sector rank. ease the transition from unemployment into employment. this is a particularly pernicious downturn in that regard, melissa. when i was looking at the data the average duration of unemployment, 26 weeks. we've gone back to 1985 when it comes to the participation rate in the job market. and men are leaving the work force in numbers that create huge issues that are going to have to be dealt with, melissa. i'm not sure that policymakers

right now have really begun to think about the kind of dramatic changes that are here that look like some of them, at least, could be permanent. >> john, what about that? >> i really do share steve's concern. they say unemployment is a lagging indicator in a recovery. but i think it's lagging more than it needs to. my colleague at competitive enterprise institute and i have just written something on cei.org. it talks about the sar box reform. there's new studies from the university of pittsburgh saying it's cutting right into research and development which will create jobs in the future. also just things like lifting barriers to growing of the outer continental shelf or nuclear power permits could create a million and a half jobs according to some studies. >> there's something i think the obama administration could do now or at least in a relatively short period of time that could create jobs. that's to decide what it's going to do on the back end of these huge deficits. i think it needs to come up with a plan so that businesses and small businesses, especially, know what the game is going to

be. if taxes are going to be higher, how much higher? how much is it going to cost me right now for a period of time to bring a new employee on? i think there are two pieces of damage here. one, the uncertainty is worse th. then the second one, the actual level of taxation that will be charged. >> i don't know, that's the truth, right? >> i think so. there's a lot of uncertainty. will the tax rates go back up? what will be the costs from health care, energy rationing, cap and trade, cap and tax. all of those things. plus some of the existing barriers that exist. they're looking at future barriers. employers are uncertain. that is a big part of it. >> is it possible to have a jobless recovery? let me ask both of you. we keep hearing that's what's going to happen. how exactly does that work? you don't have jobs, you can't go back and consume, how does that work? >> the problem is there's two pieces here right now. first there's the federal survey and household survey. everyone follows the household survey that gets worse in part

because things are getting better. people come back into the work force. i would be following the payroll survey as the one that does a somewhat better job of saying where things are going. in fact, i think, my take would be the market took that as a bit worse than it actually was. if i take out the unexpected decline of 50,000 in government workers, i come up with a 216,000 decline in the private sector work force. and that is statistically insignificant from the 175,000 that was expected by economists on wall street. >> yeah. a lot of it is emotional. it's about reaction to that number being bigger than expected. you expect government jobs to continue to increase since that's where the money is going. >> that's just the reality, melissa. we have to get used to the budget reality out there. >> yeah. >> which is states are going to be shedding workers, and they're going to be downsizing. >> john, one thing i hear from people over and over again is we haven't fixed the fundamental problems that got us here in the first place. how can we have a recovery when we still have so much unemployment, we still have a mortgage mess, we still have a

real estate mess. what would you say to something like that? >> i would say you c have a sustained recovery. you can have a recovery where unemployment's a lagging indicator. but you can't have a sustained recovery where you've still got unemployment near 10%. i think you do need to fix things like sarbanes-oxley which did nothing to prevent the financial crisis, but is still keeping -- still hurting legitimate entrepreneurs. we've got a supreme court case we're involved in it's going to hear this year on it. >> steve, what's the chicken and what's the egg? did the economy start to get better so we see unemployment get better, the housing situation get better? or do those things have to get better for the whole pie to get better? >> i think unemployment is, in fact, a lagging indicator. i think what's going to happen is the economy will improve and jobs will follow it. i truth is, melissa, this is a shocking for television. we don't know why the past two recessions have been jobless. nobody has really set out and put a convincing set of reasons why. remember, when we used to have

recoveries, jobs used to come along with the recovery and follow much more closely to gdp. the last two downturns were outliars ou outliers in that regard. we don't understand why. it's what happens to the 90% who are employed that is the ultimate determinate of the outcome. >> steve, you figure out why that was and come back. >> right to work on it. >> he's a hard worker. coming up next, the bulls are out, stocks are moving higher. is there too much fear in the air? we're going to discuss these topics. whether you're 30 or 60 you need to protect your retirement savings. the new numbers that will keep your money safe.

all right. saudi arabia telling some of its buyers it's going to cut the price of november crude. arab heavy and arab light. that's helping to push down the price of crude oil today by more than 2%. trish? >> thanks, melissa. high unemployment hanging over the market. some on wall street are actually expecting a correction.

are they right? we're going to ask our bull. permanent fort foportfolio fund president. i know you're guessing here that they are right. but given that we got such a positive read on the isn number this morning, how do you reconcile that with the employment trend which is clearly showing -- >> i think that's a great question. the isn number was close to 50. i'm going to call it neutral. that's a survey number. if you look at the u-6 number. unemployment counting everybody that isn't making their bills, can't pay their bills, meaning part time people as well as fully unemployed people, that number was a staggering 785,000 people last month. not the 265,000 that has been promoted out there. we think that that number gets worse, which means 26 million, 27 million people out of work. that's not going to work. until that number gets better,

we will not see a recovery. and so that would be my comment on that. >> you say we're not going to see a recovery. this leading you to the double dip recession theory? >> i think it goes below the double dip. it's our prediction that by year end we drop below 6,300 on the dow. by 2011 we're at 4200. that's predicated primarily on weak earnings both top line and bottom line. i think there's progress being made in that area. number one, consolidations, merger. number two, a lot of refinancings are taking place. i think it'll get to the point where you actually see municipalities merge in order to create efficiencies just as some things that probably we have never seen before. >> you're definitely a bear. michael, you hear john talking about basically half the level by 2011 that we're now at on the dow. realistically, do you think that's in the cards? i mean, you're a bull. so chances are you don't. but give me the case for why it's not. >> i think there's certainly risk factors you've got to

consider. there's a lot of uncertainty out there. but i would take probably the opposite view. i think earnings are going to continue to improve. we saw them improve in the second quarter. i think expectations are higher in q 3 and q 4. i also think earnings are going to improve on both quarters going forward. there's also a tremendous amount of liquidity out there that will be used to prime economic growth going forward. and some of these, there are statistics about unemployment, people paying the bills are more lagging indicators. i think the recovery will lead them into better numbers going forward. yeah, there's certainly risk. i also think we're heading out of where we're at right now. >> i want to break down some of these risks. michael, look at how the market's performed over the last couple of weeks. it's certainly been rocky. now today an update based on an ism number. going forward do you think the markets to a certain extent have gotten ahead of themselves? keep in mind we're up significantly from that low on march 9th. >> sure. when you come this far this fast

you can have consolidation and pullback. i think that's natural. in the last couple days we've seen the market trading on news. bad news on friday. good news today so far. i think in the last couple weeks there has been a little bit of anticipation, where's it going to be, what's the outlook going to be in business, et cetera. it's natural for the market to pause and take stock of that. and i think it's a natural reaction. that's what we've seen. >> you know, the reality of it is earnings were not good last quarter. they were down 25% to 50%. i think the key here is going to be earnings this quarter. i think that'll be paramount. we think the top line continues to deteriorate, although consolidation will help that. but we think that the bottom line is going to be not favorable at all and it is going to be a big letdown. >> i agree with you. top line is incredibly important. still at the end of the day, companies continue to show that they can squeeze profitable out of themselves as such a difficult time. doesn't that count for something? >> it doesn't.

i'll tell you why. most of the profits, like, for example, ford last quarter earned $1.7 billion. the organic growth is not there. it's going to mostly come from extraordinary items. which come from consolidations, asset sales and so forth. we think the organic growth continues down. >> 15 seconds left for each of you. john, how do you play this market right now? what are you buying. >> sell equities. buy short term fixed income. stay high quality and stay safe. >> michael? >> i would go equities. especially u.s. multinationals. take advantage of worldwide growth. financial services and biotech pharma and technology. i think those are growth industries going forward. >> good ideas from both sides of the spectrum there. thank you so much for joining us today. >> thanks. okay. coming up, how to turn rio de janeiro's olympic victory into profits for your portfolio. first, whether you're 30,

40, 50 or 60 retirement planning has never been as important as it is now. our next guest says get over the fear. get back in the game. we're going to break down the new numbers you need to know about.

welcome back. we want to get you caught up on these markets. we are powering higher on the dow, up nearly 65 points. you have the financials to thank for this from goldman sachs which upgraded the financials, really power things higher along with that ism. positive reading on the ism better than expected really encouraging some confidence this morning as the s&p trades up almost 1%. >> the financial crisis has many people worrying about their retirement plans and how they're going to recoup their losses. how much money do you really need to retire and how can you best protect your investment? let's ask author of the book "the new savage number" and director of the personal wealth advisory. let me start you. a lot of people have gone into the bunker as they've watched so much of their savings disappear. what would you do right now? what's the first thing? >> take a look at the numbers. the real numbers. not the ones you hope for. not the ones you think the

government might provide for you. the first step is to face reality. there are a number of websites i have in the book that will show you how to figure out your savage number. then you have to figure out how to get there. the best way i know over the long run is to start a regular disciplined program of investing, because if you have any perspective at all, you know that america always comes back. and if you're going to retire in america, you better be invested in america. >> really quickly, how do you figure out exactly what you need? >> first of all, figure out how long you're going to live. that's a key ingredient. take a glass of wine tonight and go to this wonderful website, livi livingto100.com. sit down and be honest about how often you exercise and eat green vegetabl vegetables. also other things like how old your family members were when they passed on. that's a key ingredient. then i'll give you another great website that's in the book. it's called choosetosave.org. it's put up by the employee benefit research institute. i know every financial services

firm has one of these calculated. but choosetosave.org. this one you need a cup of black coffee. you're going to sit there and look at what you save, what you're making, when you expect to retire, how long you're going to live in retirement. then you can get a real good pick at what you should be saving now, how much more you need to maintain your standard of living or how much lower your standard of living will be in retirement. >> that's sobering advice. what do you think of that? >> i agree with the factor of how long you expect to live and looking through that. that will mandate how much longer we might have to work. many clients now may not retire at 60 or 65. they work a little longer. adding to your 401(k) and adding to your roth i.r.a., those are all good first steps to getting us to the right figures. you need to save. >> a lot of people have watched their 401(k) dwindle. they're reluctant to add more, especially if they're close to retirement now.

>> that would be a big mistake. if you're close to what you think is retirement in your early 60s, odds are you're going to live into your 90s. 30 years. there's never been a 30 year period going back to the 1920s where you would have lost money in a diversified portfolio of large stocks with dividends reinvested. you get more conservative when you get older. there's going to be a day of retirement. how do i invest it and how much can i withdraw to make sure my money lasts as long as i do? the center piece of the book is an explanation of the kind of monte carlo, not gamblinging with statistics. you're going to need growth. you've got a long road ahead of you. everybody thinks we're above average. why not be abovelonger. >> what's the best way to invest? people are looking to the last decade saying buy and hold in stocks, at least, did not work well. >> that's an excellent point. what i think not enough people

talk about is the factor of putting rebalancing into the portfolio. let me give you an example. in the beginning of this year when everything was very, very dangerous looking, if you would have continued to dollar cost average in from january to this point, your portfolio would have rebounded significantly. as a matter of fact, if i was consulting you as a client i'd have you look at rebalancing at this point. let's say you're a 50/50 individual. 50% equities, 50% fixed. you might be up 12%, 13%, 14% on your equity mix. this is a great time to rebalance back to that strategic amount. you might be taking 10% or 12% from the equity side, buying into fixed income. if people do that more strategically, you can avoid some of the bumps. now, we just lived through something we haven't seen in 70 years. but if you do this more systemically, it'll buffer you from a lot of the ups and downs. >> if you've gone out of

equities or if you were shy for the past six months or since this market lows you probably missed the bounce. is it too late? >> it's never too late if you're doing a regular program. but you wouldn't have missed the bounce. we'll see you might -- don't forget about that. we retire against dollars. what will it buy? maybe look at gold or other inflation hedges. >> all right, guy. some good advice. thank you so much for joining us. coming up, the treasuries plan work or should it be scrapped? steve liesman and rick santelli will join us for today's "call of the wild." >> how can you turn brazil's victory into growth for your portfolio? find out straight ahead on "the call." please help me welcome a long-time friend of glencoe baseball.

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we come back to "the call", everyone. i'm trish regan. we're powering away head on the dow. up six-tenths of a percent. a little off the highs of the session. nonetheless, financials really the standout here today. amid a call by goldman sachs, basically putting a buy rating on some banks. the s&p trading up nearly 1% there. a gain of, well, better than nine-tenths of a percent at 1,035. the nasdaq moving higher as well, trading up almost 1%. a huge victory here for brazil after it was awarded the 2016 olympic games on friday.

ri rio e ree o rio de janeiro beating out madrid. founder and managing partner. great to see you, gentlemen. >> thank you. >> i'll begin with you. the fact that brazil was chosen out of all the other contenders, what does that signal to you from an investing perspective about emerging market countries right now. >> i think brazil is doing what china did in the previous games. they're making a huge signal to the international community that they have achieved and they have arrived to the global stage. the government is also instilling confidence in the people, allowing their citizens to now believe that they can compete on global standards.

this is a huge, another move showing that the world is tilted towards emerging markets. >> you look at the runup that brazil has already seen in a number of emerging markets, for that matter. up 65% as we were pointing out year to date on its stock market there. how much room do you really think between now and 2016 there is? is this a big windfall, the fact that there will be so much building and activity, economic activity, going on in brazil over the course of the next several years? >> no. there's going to be a lot of still, i think, growth potential in brazil given the -- you know, the world cup that brazil won in 2014. now with the olympics you're going to see a huge amount of infrastructure investment. a huge amount of projects. it will be good both for brazilian companies as well as multinationals in this area. you're still going to see an immense amount of growth given the infrastructure and the need

for construction that they're going to have to prepare for the games. >> one of the things that brazil talked about doing is expanding its courts, actually similar to what greece did when it hosted the olympics. not necessarily building tons of hotels it may not use in the future, but really expanding its ports which could, in turn, lead to future growth in terms of their import/export business. what is your take on that? is it a smart strategy? >> absolutely. i think what you have to look at is we have to hope that the host of the olympics will invest in infrastructure which has lasting value. a lot of times you've seen a buildup of assets no longer usable such as sports arenas. which is obviously going to be the case in any city. it's debatable whether the olympics leaves a lasting impact. if you can invest in infrastructure such as ports you're sure to leave a lasting impact. >> i was just reading through some of the notes that you sent ahead of time. you talked about real estate.

i was down in brazil last year. this was an area that was really starting to boom in part because, well, believe it or not, people could actually get mortgages for the first time. they explained for a variety of reasons that their mortgage market is much healthier, so they said, than ours. they didn't have the sub prime issues. and that it was really just beginning to grow. do you anticipate more growth within real estate as a result of so many people that are moving into the middle class there? >> yeah. i think that'll definitely be an area of continued growth. while the olympics in and of itself and the world cup will result in a lot of building around, you know, specific areas and with the olympics certainly rio de janeiro there'll be a lot of new construction. as it was pointed out, infrastructure is going to be key. there's a lot of need already even without the games adding to this. i think there's a whole transformation in brazilian society where the growth of this middle class, being able to finance housing, it's going to be an area of growth even before and after the olympics.

>> it's not just housing. it was also the cars. for example, people for the first time could get a car loan. and this was very much a new thing in brazil. and people talked about it as a big proponent of the lower class moving to the middle class. maybe i'll throw this one. how much of a danger is there that perhaps they will see a repeat to a certain extent of what we saw here in the u.s. with subprime borrowers? people that maybe you think can pay, but it turns out they can't? >> i think they're widely shielded from the wshield ed from the subprime crisis. there's an upcoming ipo this week. it'll show fundamental growth in the brazilian banking sector. i think brazil is slightly shielded from the mortgage crisis we faced here. there is great growth in the consumer sector. middle class is booming. you're seeing the same story in india and china as well.

certainly emerging markets are going to have a great growth, particularly in real estate and consumer products. >> i think just to echo his comment, brazil has historically on the finance and credit side been expensive and very difficult. i think you'll now see with the growth of the economy that the availability of credit is becoming more widespread and really penetrating throughout the economy. and it will have a big effect. >> it's going to be an interesting one to watch. that is for sure. thank you so much, gentlemen. we appreciate it. remember the treasury department's public/private investment program? it's gaining more traction. steve liesman and rick santelli are up next. the west coast billionaire you haven't heard about. he's taking health care reform on into his own hands with his own money. those details are comes up for you only on "the call."

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we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. microsoft's chief executive says he does not expect to make any acquisitions to help the company challenge google's dominance in the internet search market. take a look at how the two are trading right now. google moving up about a percent. microsoft down 1.5%. >> thanks, trish. another three funds have met requirements to get government financing that will let them begin purchases of banks' so-called toxic assets.

the program has been scaled back as banks have shown they can raise capital without unloading troubled assets. can we need the ppip program? steve leiesman says yes. rick santelli says no. it started to work before the fed even put any money to work, the federal government. >> right. >> do we need it? >> eventually, though, you have to follow through on it. what i like about it is they're doing it on a small scale, which could help in the price setting function for as follows. rather than in a world where there is no financing and you're trying both to kind of mix up both credit and interest rate risk into the same pot. this tries to separate it. i would just preempt my very good friend, rick santelli, i would oppose the project if it

is seen as inhibiting or prohibiting the private market from getting its act together. >> rick? take it away. >> i think, of course, it's going to help the private market because they're getting financing subsidies here. i mean, we're going to end up with -- right now i think it's close to $13 billion by these five private groups. i think the government's going to kick in $30 billion to $40 billion in terms of additional leverage. i don't think the public can win in any of these subsidy relationships. they take the risk. they don't get enough of the profits. i agree that smaller is better. in my opinion they're making a mistake. they should let the market heal itself. >> what about in a world where the private sector is going to do the deal and would like to do the deal, but lacks the crucial information of what is the right value here? doesn't the government program create at least one price point with which to say, okay, here's what the deal was when the government auctioned off x amount of financing or provided

the financing for those assets? >> i think it's all like cash for clunker. are those prices real? >> no. it's different. >> why are they different? >> it's different. because that was a one-time thing. this is something that, you know what, if the financing were available here would be the price on the outside. >> you don't think the private sector could find its own prices in an auction? why can't tim geithner under cross-examination by various committees ever come up with a number for the size or the amount of toxic assets on the books of banks? >> i think that's fair enough. i think one of the problems there, rick, is that what exactly is toxic is something that changes on a day-to-day basis. >> i understand. >> what about whole loans? whole loans have become a bigger problem. would this be a good solution for dealing with the whole loan problem? >> just to be clear, melissa, there are two separate programs under beneath ppip. one is one you talked about which is the ppip which is the

thing announced by the treasury. the fdic, meanwhile, held a pilot project and did an initial auction over on toxic assets from one of the -- >> it didn't go very well. >> i think it went okay. i think they got out there with the assets and sold it. it was assets from a bank that had been taken into receivership. the bigger challenge for the fdic program is getting -- using that to get whole loans off the books of existing and functioning banks, which is a tougher sell right now. >> is that a better mechanism than this, than the ppip program? >> they're two separate problems. >> i understand that. it is very separate problems. a lot of people say the whole loan is a bigger problem right now that doesn't seem to have a solution. i understand there was this auction. there is the perception it didn't necessarily go that well. what's the solution for that? do you think they should expand the fdic program? >> you know, here's the solution. the solution is to go increasingly towards rick's idea of how the world should run. that's actually what i support. is i support this idea of coming

in and closing the gap during the period of time, but you have to increasingly be turning the screws on the banks. and, frankly, i'm not sure that's what either the treasury or the fdic is doing now. they need to know, either you guys get your act together under some definable period of time here, or these programs here are going away. i'm not sure that message has been appropriately conveyed. >> steve, you couldn't have put it better. i completely agree with the last two sentences you are saying. that in order to get this time window to close, i think the government -- i hate these programs. but time is of the essence. the lingering nature of the government's involvement in the marketplace prohibits healing. >> right. the key, melissa, is i support these programs as a form of price discovery. but not replacing what the private sector needs to ultimately do, which is to buy and find the right level for these assets. and easing it down. the trouble is whether, you know -- >> it's a slippery slope. >> is that the government is on

the hook either on the front end or the back end. the government can end up owning these assets if it ends up closing down these banks and not finding a buyer for the assets. that's the problem. and i think it's fair to say a lot of what the government has done over the past several months has been an effort to really stop from creating a new rtc where the government ultimately owns these assets. >> that begs the question is the taxpayer spread to thin right now. >> absolutely. look at news issues of the day. fdic maybe needs to be putting itself in a conflict of interest mode to be taking more money. its real purpose is to protect the checkbooks and savings accounts and whatnot of the average american. it's being used in a leverage finance kind of piggy bank style. the answer to your question is yes. i think all these come back home to roost. we squeeze this water balloon. and all the negative implications pop out somewhere else. >> to answer your question, melissa, if it's pay me now or pay me later, the question is the taxpayer is on the hook.

the question is what is the cheapest way off the hook? >> let's end on that note. i like that. thanks, guys. >> nice to see them both nodding their head in agreement for a change. "power lunch" is coming up at the top of the hour. hey, bill. >> we got a pretty good show today coming up. not that i'm surprised about that. sally crawcheck will be with us for a whole half hour during our second hour. president of b of a's wealth management division. we've got a lot to talk about. we look forward to chatting with sally. maybe you saw "the wall street journal" says the recession has taken such a toll on las vegas they may not see another major construction project for ten year. still want to invest in gaming stocks? we'll look at that. a respected oil analyst joins tc's $175 oil down the road. how far down the road? we'll ask him when we see him at the top of the hour. see you on "power lunch." . we're going to take a quick break. jane wells is highlighting the good deeds of the billionaire you've never heard of.

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all right. caterpillar, the world's largest maker of earth moving equipment says it plans to raise prices on most of its machinery by up to 2% next year. the stock trading higher now by about 2.5%.

trish? in today's west coast call, one of the richest men in america is taking health care into his own hands. this los angeles based pharmaceutical executive made the forbes 400 list. being called the richest man in medicine. and cnbc's jane wells is in los angeles with the story. hey, jane. >> reporter: hey, trish. forbes says he's worth $4 billion. the "l.a. business journal" has him at $6 billion. regardless, he's putling $1 billion of his own money on the line to revolutionize health care. he's a self-made man who became a surgeon in apartheid south africa. then came to the u.s. where he pioneered cancer treatment, became a billionaire. he and his wife just gave santa monica's hospital $100,000. here's his idea. >> i can now capture the mris. >> reporter: imagine your entire history was on a smart phone you

could also access. you can't do that now. one doctor might not even know what your other doctors know. this doctor is hiring math me ti tigss, astrophysicists. >> so you as a patient and you as a doctor can have that available and point to care and know that this is the best information we have at this point in time. it's really an ability to exchange information. >> do you have any health insurance companies who are buying in? >> not really. >> reporter: you've been told a lot in your career, you can't do that. i'm sure people are telling you now, you can't do that. >> that's the most exciting time in my life, when people tell me i can't do that. it quite literally is. i don't know what it is about me when you say you can't do that. i say, well, that's great.

that's exactly what i should then do. >> reporter: he says the transparency will drive down costs. he also says health care must change to insent vise health instead of illness. doctors and drug companies don't make money right now unless you're sick. the profit motive has to change somehow to keeping people healthy. we're going to have a lot more momentarily on the blog. he's got a lot more to say on this subject. >> it's really pretty fascinating. let me ask you, jane, does he think the government should be involved in health care? >> reporter: he believes the government needs to be involved in the build outof his highway from a regulatory and funding perspective. in a sense like a public eutil y utility. >> but in terms of providing the health care itself? >> reporter: that was not part of this. what he's strictly focusing on is an information transparency. data everywhere accessible and affordable. that's what he wants to achieve.

whether the government should provide health care is a different topic. >> okay. sounds like a good idea. thank you so much. a quick programs note. tonight "the business of innovation" which explore the global urbanization changing cities throughout the world. form eer secretary of homeland security michael chertoff talks about the problems of traffic congestion and the lesson learned from hurricane katrina. >> we all remember the jammed highways after hurricane katrina. what lessons did you learn after that? >> one of the issues with traffic is time. one of the great lessons we learned we put in effect preparing for 2009 inauguration of barack obama. because we spent a huge amount of time as a matter of public order in making sure that we could organize the flow of traffic into the city so that if there were an emergency we could move people out quickly. that meant how we staged and spaced our parking, who we required to take public transportation, what bridges were closed off. all of that was done not only to

make traffic flow, but to open the way to dealing with an emergency if one came up. >> it is a brand-new episode of "the business of innovation" hosted by maria ba. it begins tonight at 8:00 p.m. eastern. for a smarter way to trade online. only fidelity lets you back-test your strategies against an entire portfolio of stocks. plus you'll get advanced, customizable trading platforms. and you get the kind of execution you'd expect from fidelity... ...with a dedicated specialist to talk about even your most complex trades. they'll even help expedite the account transfer process. trade like a pro. trade with fidelity.

mr. evans? this is janice from onstar. i have received an automatic signal you've been in a front-end crash. do you need help? yeah. i'll contact emergency services and stay with you. you okay? yeah. onstar. standard for one year on 14 chevy models.

here we are taking a look at some of those european markets. the ftse back above 5,000. gaining in the mining sector. offset by losses from oil producers. cac 40 in the green and the dax also in the green. time for our call to action. cnbc's mathth nesto is here with a look. >> you can't not look at the financials here today. the hottest sector in the s&p 500 right now. it's interesting. you got to break it down into the four different industry groups. it's the diversified banks and the banks that are really strong. i'll get to real estate in a

minute. of course the goldman upgrade of the large banks helping there today. also specific name brand upgrades of wells, comerica and capital one. we're seeing some of the capital goods stocks that were among the biggest losers in the industrial selloff coming strong here today. you talked about the price increase at caterpillar. it might be zero. it might be two. it'll depend. it's saying, hey, we're going to be raising some prices on some models. and we'll tell the dealers exactly which ones pretty soon. manitowoc booted from the s&p 500. up 15% today. they're best day in five months. oshkosh also strong. materials, another buyback of beaten up stacks. dow chemical, alcoa and u.s.

steel. some of the volume actives, big, big volume. already more than their ten day average. pinnacle west upgraded as a top pick at citigroup. northeast utilities with more than 120% of its average daily volume. and i mention prologic. they're leasing eight rooftops in spain. rooftops. money for nothing. rooftops for free. so to speak. back to you guys. >> thanks so much, matt nesto. this is it for "the call." >> thanks for watching, everyone. "power lunch" is up next. four conde nast closing four magazines.

the supreme court has rejected an appeal of an insider trading conviction. we're first in business worldwide. i'm courtney reagan. dire straights is british. >> who knew? >> was that a vegamite reference? >> that was australian. >> you said they were american. welcome to "power lunch." stocks have been pushing a little higher so far today on positive economic data, especially as it pertains to the services sector of the economy. financials have been leading the way higher. jp morgan and american express have been leading the dow so far today. >> i'm sue herera. bank of america's sally krawcheck. we talk markets, and b of a's search for a new ceo. that big interview co