setters. with their merchandising wizard, they moved to atlanta and were trying to stay afloat until opening day. >> this is an episode you don't want to miss. it airs tonight at 10:00 p.m. eastern. >> thanks for watching. >> i'll see you tonight on "the kudlow report," 7:00 p.m. eastern. and now, "power lunch" is up next. welcome to "power lunch." congratulations to philadelphia phillies. i'm wearing a red tie because i lost a bet last night. okay, let's move on. stocks trying to find direction at this hour. the dow struggling to stay above 10,000. today's five earnings. at&t, 3m, mcdonald's, travelers and merck leading the way. five-star menu of ceos.

the ceo of i-robot. plus, the ceos of ryder systems and novartis. >> that's all he can afford. microsoft launching windows 7. opening up its first retail store as well. the ceo speaking to cnbc. find out if the stock is a buy right now. president obama's pay czar taking steps to cut compensation for top earners at the bailed out companies and now, chuck schumer wants to slap the same restraints on every publicly owned u.s. company. it's not the fourth of july,

but we will have fireworks this hour. the dow fighting to hang on to 10,000. bob pisani kicks it off for us at the new york stock exchange. >> the trend has been gradually to the upside. you'd think it would be a little better, all five dow components positive on earnings and in fact, better than expected. let's take a look at some outstanding names here. j. crew, not only beating a top bottom line, their numbers were outstanding. they have been executed perfectly the last few years. 3m had excellent numbers. little tougher when you look at the other companies. united parcel talked about the holidays, potash also having a tough time. finally, mcdonald's seeing

october u.s. same-store sales flat. they came out with that at 11:15, that stock down. scott? thanks. nasdaq is seeing weakness in a big drag is ebay. earnings after the bell yesterday, revenues ahead of ek pe pektations. outlook not good enough in investors' eyes to justify that right now. microsoft, earnings out tomorrow. apple being sued by nokia. patent enfringement relating to the i-phone. google is weaker as is amgen. let's go to sharon. a day after oil prices nearly touched $82 a barrel, we're seeing a retreat and consolidation as the dollar

improves. they'll have to pay close attention to the dollar as well. when you look at the slide in the dollar, look at how oil prices have gained about 13%. gasoline the same. heating oil about 14%. we're paying $2.60 a gallon, up about 12 cents in one week's time. if you look at the two-day chart of the dollar index, we haven't regained the ground from yesterday, but it is making a comeback. many on the floor talk about how the fed's achilles heel, dollar exposed. i think many traders are going to pay close attention to the next trade under 75. they're moving up, but closer to

unchanged. 116 billion in coupon supply next week. >> thank you. it's the biggest day of earnings season so far, but stocks are struggling for direction. where do we go from here? let's bring in our "power lunch" insider. good to see you. slew of earnings out today. what is your assessment of earnings season thus far? has it been strong enough to justify the tremendous rally since march? >> i think earnings season has been in some ways, exactly what we needed. we needed to see companies continue to produce good earnings and we can check the box on that. i think the most important thing about q-3 is what they tell us about q-4. >> are you satisfied? >> so far. >> across the board, a all sectors? >> i think financial services companies have generally down

all right and it's important to get a healthier banking system back to the economy. the more impressive areas have been industrials. >> thank you very much. we appreciate it. little short on time because we have a ceo joining us now. xerox reporting earnings today. my colleague maria bartiromo joins us with an interview with the newly installed ceo. >> thanks very much. we are honored to have ursula burns with us today. thanks for joining us. >> thank you for having me. >> we just reported the headlines of the quarter. can you give us your sense of what drove business in the last quarter and how would you characterize the environment today? >> i think that the quarter showed that xerox continues to operate well in the cost and expense front.

we were able to deliver cash above expectations. upped our guidance to $1.7 billion. earnings stronger than had outlooked. so good management on a company. we are still investing going forward and making sure we're prepared for when the economy takes a sustained upturn. investing in technology, coverage. i think a strong position. relatively strong position given the environment we're in. >> certainly in leadership and in an environment that has been slow. can you talk to us a little about your expectation as far as companies replenishing inventories, the supply side of the business? do you still see people wait lg to replenish inventories? when would you expect that? >> we do still see constraint. smaller and large customers

around the globe who are being cautious. they're waiting for sustained signals to make investments in technology. the flip side of that is that we're not seeing customers move away from their technology, so they literally are holding on to the equipment they have in their offices. we're seeing machines in the field stay, but we're not seeing them actually buy more or move up. they're waiting for sustained signals going forward. >> as far as printing supplies in terms of the cycle, you know, typically, in past cycles, we've seen printing supplies resume upticks at the end of the cycle. it's sort of the last thing to see a real pick-up. do you think that's the case this time or is this slowdown different in any way? >> i do expect that we will

print supplies will increase and page volumes will increase at the end. it will not be a leading indicator. i do expect though that as the gdp start to improve, as employment stabilizes a bit, we are really -- we track really well with financial services. large sectors around the world. as they start to improve, it's a good signal for xerox. we're large providers and as they do well, we'll do well. >> let me ask you about the acs deal. you're seeing a number of competitors out there pick up the pace. whether it's -- where is the status right now in the acs deal and tell us the importance of that deal, what it brings over the longer term, one or two

years out. >> this deal is a transformtive deal for xerox. xerox is a document technology and imaging company. that's what we do. we do it around the globe. we use technology and our brand gives us permission. acs happens to be the best diversified bpo provider in the world. our next natural progression is to expand and we're doing it with this transaction. the more we do with bpo and acs and the more time we spend with our customers, investors and analysts, in the industry, the more excited we are about the deal and capableties about the deal. >> did you feel there was some pressure for you to do that deal

given that your competitors are amping it up? one said acs was shopping around with no takers. it's a marriage of conveniencco. >> it turns out that we didn't respond to acs shopping itself. we weren't actually aware of that as a criteria or situation for acs. we were in the market to grow our business for sure, so acs was a natural place for us to go. especially as we got more confident in our ability to pull off bpo with the two acquisitions that we have. as we got more confident in the ability to manage our base business. growing in a step function way was something we were looking forward to combining these two companies accelerates growth, allows us to continue to throw

off a huge amount of free cash. it's a great acquisition. great for customers, they've told us. great for our employees and really strong for the shareholders. it's a great deal for us. >> thank you. i'd like to pick up on something you asked ms. burns about. you mentioned the global environment. we hear analysts say it will be asia to continue the growth that the u.s. has started on. do you agree with that and from your advantage point, where do you see the most strength globally? >> prior to this recession, your highest growth markets were in eastern europe, in russia and the developing economies. we saw that prior to the recession. i would expect that as we come out of this recession, that some of that growth will continue.

they will grow faster than the rest of the world. it does turn out that the recession has put like a pause on spending just about everywhere in technology as the recession starts to lighten, i expect to see improvement in tech spending everywhere in the world. >> more about that on the closing bell, we appreciate you joining us here on "power lunch." we will continue our interview and talk more about the international scenario as well as the color cube technology. >> thanks, maria. it was founded in 1906. well, this is it. from mcdonald's to merck to 3m. as you were saying? michelle and matt nesto will have more.

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there's a major day in the earnings calendar. five dow components reporting results this morning. more than 10% of the s&p 500 reporting today as well. matt nesto here with our daily score card. >> another day, a little improvement. we're up to 33%. >> have reported. >> 167 in. 78% better than expected. that's pretty consistent from where we were yesterday. the surprise factor at 17.8% is down a little bit. >> that's the percentage for which they have beaten on average. >> the big picture is going to be the blended growth rate for the quarter at minus 19. >> when we started, earnings

would be down 15% and now, 19%. >> it's a full percentage improvement point from yesterday. we look at some things driving in, at&t. financials, health care and telecom. if you look at at&t, it can move markets today. at&t continues to be a wireless story even though they still do more. their quarter for wireless, multiple records. the sales were up 10%. record i-phone activations. 70% of their integrated devices were i-phones. 3.2 million of them. >> have that relationship with apple is very helpful. >> at the time, they said they paid too much. haven't heard that in a long time. this stock is pretty cold. i don't know. you know? it's delivering. and it is getting there, but

that wire line business, maybe it will split it up. >> thanks so much. you can say anything here. >> breaking up at&t. up next, they make bomb robo robots, even vacuum cleaners and apparently, they have been sued. we're going to talk to the ceo. you are watching "power lunch" on cnbc. we are first in business worldwide. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 i want everything right where i can find it. tdd#: 1-800-345-2550 anything that makes trading easier. tdd#: 1-800-345-2550 i want to be right in the middle of the action-- tdd#: 1-800-345-2550 you know-- i have to see what's going on. tdd#: 1-800-345-2550 and when i pull the trigger...

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it left four in here to play with this thing. >> it's been doing it through the entire commercial. >> this would be the irobot.

not to be confused with the sign fiction novel. shares are surging today. with third quarter earnings. they also make robots for the military. shares are up 13% just today. what is the outlook for the economy especially with defense contracts? joining us now, chairman and chief executive at irobot. thanks for being with us, sir. what about earnings today? >> well, it was a great quarter for us. we had a lot of anxiety going into the year with a recession and administration change, but we've been able to weather that quite well. >> how did you do that? if you had that anxiety, what was it you were able to execute

on? it's fascinating to watch this thing. >> we execute very well internationally. we were able to expand distribution of our vacuum cleaners. our market increased 55% year over year. that's been a great, good news story for us. >> this is stuff that martha stewart's dogs left behind. >> i missed that segment. when i look at the financials you put out, you actually get more revenue from selling these home products than you do government products. is that a mix that you like? would you prefer more government revenue? >> well, the great thing we are going for us, both of these markets are enormous. maybe a 2% household penetration with a roomba today. if you're still pushing around an upright vacuum, this is the

better way. >> what is the price? >> it goes from $280 up to about 300. >> how much are you robot products for the government? much more expensive, right? >> much more. they have to go up and diffuse bombs. 100 to $150,000. >> it also washes. >> do you use one of these at your own home or do you pay someone to clean your house? >> absolutely. i have this scheduled to turn on every day when i go to work and it vacuums my floor and plugs itself in. >> the bomb robots on this video here. how does that work? remote control or is it as -- does it work like the vacuum does? >> there's a human driving to make sure that the robot does exactly what the soldier wants it to do, so when you're faced

with one of these life threatening situation, the robot's there, so you can take your time and render these things. definitely something a robot should be doing. >> you mentioned the home product, then the government product. >> one thing our business model allows is to take government-sponsored rnd dollars and use that to develop new products. we do about 15% of our top line revenue in research and development. 10 of that 15 comes from the government, so we can continue to develop new products and technology to keep us ahead of the game. >> what about the price point on this, in terms of the consumer who's been cutting back? that's a high price point? >> certainly has been a challenge. we've been down similar to other

300,000 products. like gpss and digital cameras. this creates concrete value for you because people have to vacuum their floor all the time. >> actually, probably don't have to vacuum the floor all the time. my own, i've got to tell you -- thank you very much. >> you don't have a 4-year-old. up next, not so much fun. the hammer comes down. the pay czar is slashing compensation for the top bosses at bailed out banks. is it the right move? is it good or bad for the economy? and get ready for the "fast money halftime report." that's at 12:45 p.m. eastern time. please help me welcome a long-time friend of glencoe baseball. a man who played second base here some 45 years ago. actually, 47. ladies and gentlemen, mr. larry mccarthy. amidst today's financial turmoil, our sophisticated wealth transfer strategies...

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we are almost halfway through the trading day. the dow struggling to hold on to 10,000.

it is the single biggest day of earnings and we have five dow components reporting. they all beat earnings expectations. and profits at ryder system falling. more than 65%. we'll talk with the ceo about that and the guidance he sees coming forward in just a short while. pay czar ken feinberg cutting executive compensation at seven firms receiving the most in government aid. the treasury has spent $570 billion so far bailing out companies and of that, the targeted companies received about $242 billion. is it good for the government? is it going to hurt the overall economy? joining us now, democratic strategist and professor robert miller. guys, good to see you. professor, let me start with you. the average executive is not going to be able to bring home

more than half a million dollars in cash. this is the huge reduction. is this a good thing that ken feinberg is doing? >> no, i don't think it's a good thing at all. i'm much more concerned about the tax money that should be repaid to taxpayers. we're talking billions of dollars here versus millions. mr. feinberg has to concentrate on getting those billions back by putting together the best team he can put together. then with that, creating incentives that push that money back to those that have paid it. >> the critics say, hey, the government's a big investor here. the taxpayer has the right to demand this. >> the way to do that is to create the right incentives for the right team. mr. feinberg is hurting himself by only being able to hire people and retain people that won't do as good a job. >> julie? >> this whole concept of

everybody being -- there's nobody who's disposable on wall street. jimmy kane ran bear stearns aptly. i don't believe that there's one magic silver bullet for each company and if we don't pay the executives the untold millions they expect, that they're fwoing to leave and go somewhere else. if they do, good for them. i don't my money paying their salaries. >> here's what i don't understand. i have here in front of me, the compensation contract for the ceo of aig. he said, he told the government to stick it and said, i'm not coming to this company until you pay me $3 million in cash. ken feinberg signed off on that. so, it's okay in one case we can pay an individual that money because we need him, but it's okay to be arbitrary about

everybody else? >> i disagree with that as well. aig is 80% owned by you and me. >> so what? they should work free of charge. it is time to get past incre bitterness and senator schumer says he wants these same types of restrictions to apply across the 5500 publicly held companies. how do you like that, julie? and they're coming after your salary next. >> i'm not on the government dime. i can do whatever the heck i want with my firm because nobody's bailing me out. >> they're not on the government dime. >> are we talking about the seven firms we're talking about? >> schumer has said he wants it to apply to 5500 companies. >> we've had this discussion for

months on end. i say -- >> but you agree that publicly traded companies have gone too far? >> i will say however, let me put it this way. if these companies are too big to fail and they're going to become -- i'd like some say in when they get backstopped, how much they're going to pay. right now, heads, i lose. tails, they win. every time. >> that is a good point. we are going to discuss this after the break. professor miller, don't move. right after this break. don't move.

we resume or discussion about ceo pay with julie and professor robert miller. professor, julie did bring up a good point. the administration argues the reason they have to do this is that incentives on wall street,

pay structures, pay people who take too much risk that led to the event that occurred. and they don't share in the losses. do you agree, and what do you do about that? >> first of all, it's not true. if you look over the last 60 years, managers compensation goes up and down with the firm's wealth, so they carry a lot of how well their company has done. boards of directors are aware of that and that's why executive compensation is set so that the manager has a lot of wealth and a lot of shares. >> but what do you say when stan o'neal walked away from merrill lynch a very, very wealthy man, then the rest of the world's got to deal with the mess. >> we've got to look at the data more generally. >> we live on a case by case

bas basis. >> look at lehman brothers. mr. greenberg. both of these people lost fortunes. >> we say that they get off scot-free. thousands of people lost their jobs. lost 90% of the value of their stocks. wall street compensation went down 40% last year. >> wait a second. dennis, come on. listen, if i own citi stock, i'm basically wiped out. >> what does that have to do -- it's all about punishment and you just revealed it, julie. it's about revenge. >> i'm getting punished because of their decisions. >> but so are they, julie, are they not? >> they own their shares. >> to the extent they're not making the billions they were making before. >> they've lost incredible amounts of money that's why we keep blaming compensation.

>> let me ask you a question. if you all of a sudden screw up at work, day in and day out, would you be getting a pay raise or would you be fired? >> i'd be fired and they would pay me the terms of my contract. >> if you're fired and they pay you your contract, that's not my problem. it is my problem when i have to reach into my own pocket and pay these guys. in the case of aig, 80% is still owed. >> they don't like how much -- it's un-american. >> did you have fun? >> you guys must -- you must try and focus on the billions of dollars that we're losing. it's really important to take care of those zeros. >> thank you. still ahead, ryder system

earnings give us a good read on the economy. plus, microsoft's big day. windows 7 is out. are you exciting, dennis? >> i am so excited. the same tools the pros use, so you can be a disciplined trader. by selecting from eight advanced triggers, your order gets executed, even when you're busy. and with trailing stops to help you lock in profits and minimize risk, you can be confident in your strategy, no matter which way the market moves. find out why more and more active traders are turning to fidelity for a smarter way to trade online. trade like a pro. trade with fidelity.

a choppy trading day on wall street as investors die jest about 57 earnings reports as well as mixed economic data. where are the traders looking for opportunities? our crew today -- a special welcome to james, who joins us for the first time. dr. j, i want to start with you. 57 s&p 500 companies, six dow components. five have actually beat and we are barely higher on the day. what's going on? >> well, we're still digesting that big, harsh sell-off from

basically 1100 yesterday on those bove comments as he dropped wells fargo and a lot of chatter about other banks. that, i think, is more or less a positive that we've stabilized at this level and we have because of mcdonald's and a number of those earnings you talked about. i think overall, this is the good reaction to that news and we'll see where we go into the close. i like the action so far though. >> jim, you are following this. what are you noticing because it seems the stocks aren't advancing as much one might think. >> earnings are coming in much better than expected, but stocks aren't following through with nearly 80% of companies in the s&p so far who have reported beating earnings by a median of 11%. the reaction is only about half a percent, so they're not realizing the upside or by those aerngs beats.

>> we have to be careful with that data also because we're using the eps and not necessarily looking at the revenue number. we have some instances, like coca-cola, misses on the revenue side, so therefore, we might not see that strong a reaction. >> there's also another dynamic. i'm also looking at the fact of looking out another quarter. what does that really tell you for the future? are we going to see this going forward? not for a year, but one quarter at a time? i believe the market believes it is and i believe it's because of the payrolls. again, the future might look brighter and that might be why we're stalling here. >> let's head to the chart of the day. greg, what level are you watching on the spfs?

>> i'm watching the december contract. any close below 1071, i will sell the s&p outright. we came down to about 9,943 yesterday in the dow. you know my inflection point there is 9,018, so that did hold for now. everything looks pretty stable. price action looks good, but a close below 1,071, i'll take a short position. >> let's talk about the group that is helping us at this hour. that is financials. wells fargo also reversing the trade lower. if you line up that chart, the s&p chart yesterday with the wells fargo chart, it's almost the same.

what sorts of patterns are you seeing in terms of investor appetite or risk? any protective put buying? >> we really did see a little bit more of a lift this morning, melissa, in the vix and that was folks that came late to the party on the bearish side yesterday looking for protection after that move. we always talk about setting yourself up now for what tomorrow's going to be and not just reacting to what's going on today. i think those people will pay for that later today. but the goldman, as long as that continues to lift, that goldman just as greg spoke of, that's one of the more positive signs out there. goldman up $4. i like that a any sort of buying opportunities out there? >> we have in addition to good price action, we have great commentary on pmc's ceo saying

credit deterioration slowed in the third quarter. as we look ahead to reports after the bell, are there opportunities in the financials? >> tap tcapital one management up implied guidance and implied volatility of the front month is at a discount. with stock around 37.5, that's one where i would take a shot. >> greg, i know i ask you this a lot, but there are viewers asking me the same question. they want to buy goldman sachs. they see it go down to 179. but then it bounces back. what's my entry point? >> melissa, again, i would not buy it up at these levels. the stock has almost quadrupled since last november. i'm not touching the long side because i think the upside is limited. goldman will trade as a general market does. go on my 1071. if we break below 1071 in december s&p, sell goldman with it.

>> sell everything. short everything. >> sell everything. >> okay. let's move on. time to take your position. microsoft to the downside. today the companies released wind 's 7 and opening its first ever retail store. is it time now to buy? mike, i'm curious what you think because already we heard from the ceo talking down the expectations for the bump windows 7 will v we're not seeing much price action in the stock or something them in the p pc makers except for ibm. what do you make of win 7 as a catalyst for this sector? >> i think on the long haul, it will do well. on the day-to-day trade side, i wouldn't be surprised if the market anticipates a pullback. i'm not like euphoric at these levels watching or anticipating this stock in particular to start taking off. let's use the nasdaq as a reference in how that's setting up against resistance. you're getting all these bearish

tones. i'm as high as 1144 before i see the breakout. looking at how microsoft trades, i'm more curious to see if the dip invigorates buying. i think the vix is showing us it's going to anticipate there will be better volume is week out. >> dr. j, would you be a buyer of microsoft at these levels, windows 7 is coming out. the holiday season is coming, et cetera, et cetera, and it's opening a new retail store. i don't know. call me a skeptic, but a retail store for microsoft. >> exactly. what are they going to sell there, zunes? i think you buy microsoft on weakness, and i think overall the impact is bigger for the pc makers. you already mentioned ibm, but i would look at hewlett-packard. that's my number one pick in the space. i would be a buyer on that into this fourth quarter because of the lift i think os 7 is going to give with the upgrade cycle. >> let's move to the next trade. mixed picture in the oil

services name heading into earnings from schlumberger. tomorrow morning an $80 crude. is now the time to buy the names? >> we have the governor on the fast line. steve grasso, what are you buying? >> i think we're really running into a buy the rumor sell the news approach. you saw when halliburton reported they beat, the stock ran up, and it got a little ahead of itself. now you see the stock come back in. but weatherford has been the polar opposite picture. pete and i spoke about it on the desk the other night. they've been beaten up, but that one is rallying today. i think schlumberger probably setting ourselves up for a neutral trade. >> time now for the fast and furious. american express out after the bell. do you buy? it is higher today. >> it is higher and we continue to see buying in december options. not november options though. if we see that into the close, i'll be an aggressive buyer. otherwise a mild bullish activity. >> oil is slightly lower today

after closing at a new high for the year. greg, are you a buyer? >> yeah, melissa, i'm still looking towards $89 a barrel. i think we broke up out a couple weeks ago. >> burlington northern set to report after the bell. are you a buyer, mike? >> absolutely. i think that this stock is positioned very well domestically for growth. i think the short line railroads that are feeding in the larger units, you're starting to see a lot more emphasis on government subsidies. it should be good here. >> good to take a pause on the halftime rainstorm. on "fast money," we have all the afterhours action on amazon. we'll get you set up for microsoft earnings tomorrow morning with the top ranked analysts out there. up next, a first on cnbc interwith the ceo of novartis. can windows 7 turn this zero into a hero? the street's top analyst weighs in on microsoft's new us makeover and sets up tomorrow's huge earnings trade. and your top play in the skies,

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time now to call the close. let's go around the horn. greg, kick it off. >> sell. >> mike? >> we don't sell. >> james? >> look for opportunities to buy puts against long stocks. >> dr. j. >> goldman goes up the market goes up. follow the money. >> that does it for us at halftime. up next on "power" the ceo of ryder system. >> also novartis' ceo will join us. 1:20 p.m., women and power.

we focus on the venture capital plays that are out there and this particular lady has done a number of deals recently. and then at 1:30 p.m., the galleon informant has been named. what's the fallout from that and the future of hedge funds? back in a moment. the conference board's index of leading economic indicators rose 1% in september. the federal housing finance agency says u.s. home prices fell by 0.3% in august from july bringing the 12-month decline to 3.6%. u.s. highway travel rose 0.7% in august compared to a year earlier, the third straight monthly gain. that's cnbc.com news now. we're first in business worldwide. i'm courtney reagan. the second hour of "power lunch" continues now for thursday. welcome back. i'm bill griffeth. stocks mixed right now. the dow is fighting to stay

above 10,000. we have mcdonald's leading the average higher. >> i'm sue herera. another power packed lineup of ceos this hour. a cnbc exclusive with the ceo of novartis on defending the world from the flu. i'm michelle caruso-cabrera, ryder systems ceo is going to join us to talk about driving profits in this economy. plus, he's a ceo, a billionaire, he's 34 years old. we have a cnbc exclusive with josh james of omniture. >> i'm dennis kneale, will it be lucky seven? microsoft releasing the latest version of windows. a hit or miss with consumers or businesses? we'll look at that and tell you about microsoft's first ever retail store. a little apple envy going on there, guys. >> maybe not much longer as they do open that retail store there. shares of ryder system had been moving lower. the transportation company beat the street with its street quarter earnings but profits did fall by 66% from a year ago.

the company says the weak economic environment will continue to affect its performance in the near term. as you can see, ryder shares off the lows now, down 3% at $43.95 a share. joining us for a first on cnbc interview. we welcome back greg swenson, who is chairman and chief executive officer of ryder systems. welcome back. >> thank you, good afternoon. >> i distinctly remember, and i wish i could remember how long ago it was, maybe 18 months ago, maybe as long as two years ago, you were the first ceo i heard say we were in recession based on the order flow that you were seeing in your particular business. how do you feel now? >> well, it doesn't feel good to be right. sometimes you'd rather be wrong. >> but are we out of it now? are we stabilizing? how do you -- based on your business right now, where are we? >> well, here is what i think. i think hopefully we've bottomed out. have we seen a turnaround? not yet, but hopefully soon. and i think that the climb out is not going to be a "v"-shaped

recovery. it's going to be a long, slow sort of erratic grind upward over several years. >> why? >>. >> because you look at the fundamentals. most of gdp comes from consumer spending. consumer spending comes from people with jobs. 10% are unemployed, and if you add the people who have give up looking, it's 17%. until people are getting new jobs or are confident they're going to keep the jobs they have, i think you're going to have a lot of caution in spending. when you're not spending, people aren't putting anything that needs to be moved, whether it's trucks, trains, air, or anything else. i think that's going to be a long climb out. >> which part of the transportation industry should we look at for signs of improvement first? is there a particular sector? >> speaking of our own company, the first thing you look at that we measure and report on every quarter as we did today is the least miles per power unit. so that is getting less bad.

when that turns positive, that means that customers are utilizing their leased fleets more. secondly, when they start utilizing commercial rental, that's supplemental capacity. that will be another sure sign, an then you know you've made it for the long-term when our least contractual customer said sign me up for new units, for something i know i will need five or six years from now. >> there are a lot of people who feel some of the changes on the consumer level and business level, the retrenchment we've seen, are going to be permanent changes? do you agree with that, and if so, how do you change your business to adapt to what might become a very long-term or permanent trend? >> yeah. whether it's permanent or not, we're looking at really retrenchment i would say for the next two or three years. so what we have done organizationally is to make sure we got our costs in line with volume, and that we've already done. so i think we're in good shape now. we've got the platform right. we've got the cost reductions if place, and we're just going to margin model and watch marginal

activity and volume, so we'll know when it ramp up. >> mr. swenson, if we could just take a right turn here for a second. we've been talking about executive compensation all day here because of ken feinberg and the pay czar. what are your thoughts when the government arbitrarily says, you know what? executives who work for certain companies can't make more than a half a million dollars cash every year? >> well, it's easy to support penalizing people that you think deserve it or are not you. the danger is if the government can do it to them, they can do it to anybody, and pay czars aren't approved by congress, go don't go through the process. >> you maybe read senator schumer said maybe they should think about legislation to ken feinberg's authority to any publicly traded company. maybe there's a way you can cap ceo pay. >> well, i think these are

dangerous precedents. you are beginning to infliringen rights, free enterprise, and that's not what this country is built on. >> that was a great answer. >> there you go. >> mr. swenson, good to see you. we wish you well. >> good to be back. a shortage of "nightly news" vaccine and the largest manufacturer of the shot is out with earnings today. novartis beat on the top line, missed on the bottom line though. says that 4x could hurt four year results. mike human is here with another cnbc exclusive. mike? >> thank you, michelle. under normal circumstances, of course, earnings related interviews on my beat are focused on product performance, guidance, and what's next. but novartis is on the front lines of the h1n1 flu pandemic and reports of vaccine shortages here in the states are reaching critical mass now. joining me live now from ba sill, switzerland, for a cnbc exclusive interview is the

chairman and ceo dr. daniel vacella. thank you for being here. >> good evening. >> what is the hold-up? doctor, what is the hold-up in terms of the h1n1 vaccine? >> oh, the hold-up on the h1n1. well, there is none. in fact, we have a situation where we have started to deliver our vaccines to the u.s. it's been approved by the fda, not the vaccine where you could double the volume easily, but we have been constrained by a low yield, about a fifth what we normally have for flu vaccines. so there are a number of factors and a huge demand. so demand exceeds production capacity. we have moved 300 people from

other divisions to improve the capacity. >> when do you think it will be in plentiful supply here in the united states? >> well, it's an ongoing process, so towards december, end of december there are larger quantities which will be shipped and i guess not just by novartis but also by other companies. so it will continue up to the first quarter, and we hope to ship over -- or produce overall about 100 million doses, but we have the largest order from the u.s., but we have also other countries we're delivering vaccine to. >> but first quarter next year, is that going to be anywhere near soon enough to get in front of a potential outbreak here in the states? might it be after the fact by that point? people want this vaccine yesterday. >> absolutely. yes, of course. you're absolutely right. the outbreak has started a long time ago, and it's unfortunate

but true that it takes several months until you are already have done the clinical studies, produce the vaccine, have it approved, and i must say that the collaboration between the company and fda was outstanding. so we had seamless interactions in order to move as quickly as possible. but nevertheless, there are physical constraints of production capacity which cannot be changed. and i have a lot of compassion for the people who really are waiting on this vaccine, and you can be assured we put in everything we can to accelerate and maximize the outputt. >> doctor, whether it's warranted or not, there are a lot of people in the states, i don't know whatted situation is like in europe, but a lot of people in the states who are fearful about the safety and the efficacy of this h1n1 vaccine. they said it hasn't been tested thoroughly enough. it was relatively rushed to market. what assurances can you give to

the american public that your h1n1 vaccine is safe and it's effective? >> in fact, the clinical studies we have done are more extensive than we have done since many years for seasonal vaccine, and we have over 8,000 people now in clinical trials, and the clinical trials have shown very clearly that the vaccine is effective in producing antibodies in the people who receive it and gives a fair protection, meaning above 70%, and then you have, of course, when you look at safety, always people who are against vaccination by principle, and i think it should be up to them if they want to vaccinate or not as long as they're not active in a public health sector, security sector, and then we have populations which are more at

risk than others. so in the h1n1 disease, the children and young adults are more prone to get severely ill than elderly people, and with the seasonal flu, it's just the opposite. >> dr. vasella, we do have to go, but i don't want to let you go without an update on the situation between you and your family. animal testing people have attacked your family home, desiccated graves. have there been further incidences? have the suspects been caught? >> nobody has been caught there. was another incident in mexico with some incendiary devices, but i don't expect that these people will change easily their

attitude and, of course, i feel we are working in the interest of the health of people to save lives, and anybody who wants to hinder that i think should be ashamed. >> ashamed and some people would say brought to justice. thanks again, dr. daniel vasella, the chairman and ceo of novartis. i'm writing about a fictional pharmaceutical product called -- that i'm calling reuniforia. >> a little tease. >> we look forward to that. >> thank you very much. we'll take a break, come back. big day for microsoft windows 7 finally hitting stores. is it a game changer? will it jump start the stock? and here is how the shares of microsoft are performing right now. the stock is down 13 cents. half a percent. $26.44. what do you think?

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a big day for microsoft. the software giant watching windows 7 today and opened its first ever retail store ahead of the latest earnings report that comes tomorrow. our jim goldman is at the microsoft event in lower manhattan. he's going to be speaking with the big guy himself, the steve balmer of microsoft.

jim, let's begin with you. it's said that microsoft, their first release of a product always kind of blows but eventually they get it right. the death of vista and with 7 have they gotten it right? >> you know, it appears they may have actually gotten this one right. the reviews are in. they are positive, and they are exactly the kinds of things that microsoft and its customers certainly wanted to hear. windows 7, as you said, goes on sale as of today. suddenly available in 45,000 retail locations around the world, available for download on the web as well, and also in new laptops and desktops that begin shipping today. in a pretty splashy new york city press and launch event earlier today, microsoft's ceo said 3,000 engineers, 50,000 partners, and 8 million customers had a hand in creating this new operating system. he tells me there's been pent-up demand for this particular

software and 300 million personal computers will ship with windows 7 this year. good for microsoft and intel, hp, even best buy, but maybe not so great for apple with some experts saying the software narrows a perceived innovation gap with companile. . >> the things everybody is going to react to are, wow, this is simpler. wow, this feels snappier, more responsive. it's loaded with kind of the abilities to support a range of new hardware and new features and everybody will find little gems, features, things they fall in love with, but speed, responsiveness, simplicity. that's what customers told us they wanted and that's what we focused on giving them. >> you look at steve ballmer, and you listen to them, he has a lot more to say about apple.

how does he feel about job security? those are the kinds of things we talk about more. you can find it on the blog, techcheck.cnbc.com. that's the latest in new york, but microsoft is making more headlines unveiling its new retail strategy opening its brand new store in scottsdale, arizona. >> thanks, jim. it's a mad house. over 1,000 people turned out this morning to see the store unveiled, and joining us now to tell us a little bit about it and what it means for microsoft is chief operating officer kevin turner. we had 100 people waiting overnight last night. >> they stayed overnight. it's been an incredible grand opening for us. we're so proud and so elated to be able to show off windows 7 as well as our new microsoft retail store. >> what does this store mean for microsoft. how ground breaking is this concept for the company? >> it truly allows us to get closer to our customers. we have over 1 billion people

that use windows every day. they have asked us for this. they have asked us for the chance to be able to connect and 8 million people responded and used windows 7 in beta. this is just another extension of our ability to use that customer feedback to build great solutions and products. >> i got a sneak peak at the store earlier. very, very colorful, interactive screens. it seems it's very colorful, especially compared to apple's white box concept. how are you trying to division the two stores. >> we'll distinguish on three things, our customers have asked for nmore customer choice, more alternatives. with thousands of hardware devices, we're going to give them choices. the second thing they have asked for is they want a better value. clearly, we're going to give them a better value. and the third thing they've asked for is they want great service. we have hired an incredible team in scottsdale. >> is this a reaction to apple's growing market share and its success with its stores? >> this is about us getting closer to customers and connecting at a deeper level and

being able to take our value proposition to the next level. >> thank you so much for joining us. >> thank you for having me. we're excited to be here. >> back over to you, dennis. >> thanks, julia. let's look at it, will the new operating system, will it roll a lucky 7 for microsoft? let's bring in molly wood, executive editor with a tech publication not listed here. and also an analyst on the stock, katherine eggbert. molly, there's two levels. one is street krcred and the otr is stock price. let's start with street cred. is it going it help? >> i think it pretty much has to help. things got so bad with vista, it was beyond how good or bad the operating system was. people have a serious trust problem with microsoft. i think windows 7 does have good early reviews, but it's going to depend how this operating system performs in the long run. that's where vista started to fall down. we're going to have to see what happens in two, three, four, six months when people have been using this for a while, see if

it really holds up. >> katherine, when apple announced a sexy new product, the stock bumps up nicely, but microsoft's product are often iven vitble invisible, inside the machine. >> we think it will add revenue. half coming from an organic market expansion. apple has some great products, but they're very expensive. i think they're eating away at the high end of the microsoft market maybe here in north america and in europe, but i don't think that they're really making inroads where there's organic expansion, which is in china and india. >> katherine, about the retailing move by microsoft. you know, retail is 18% of apple's total revenues from its own stores. do you think microsoft has that kind of ambition? because it just doesn't seem like it's going to be as fun a place to go. >> well, we'll see.

there's about 700 people in line this morning waiting for that store to open. >> what is that? >> down in scottsdale, arizona. >> it tells you there is some interest. the advertising locally was not all that strong either. they're going to do this i think in a slow approach. i think the folks at microsoft feel most of apple's head start is really in the hardware sight, not on the software side. vista was a flop. i think windows 7 can make up for some of the software functionality and those stores should contain some interesting pieces of hardware we have not seen before. >> we also have jim goldman with us. jim, what you got? >> you know, you look at the trends that we're seeing and everybody makes a horse race out of what microsoft is versus apple. apple will do about 10 million macs this year. steve ballmer points out windows based machines will sell about 300 million units this year. is there too much being made of this competition in the marketplace? maybe, but i pointed out to him

and he seemed to get a little frustrated but kind of agreed that you look at apple's growth and the company went from like 4% to 8% of the market in not so much time. you're talking about a company that doubled its market share and really reaped the rewards of that. you don't see that kind of growth at microsoft and i don't think you ever will. that's why apple gets so much attention, but you look at what this is, windows 7, this is a big leap forward for microsoft. i think it will be reflected in the stock price soon. >> back over to molly, who do you think microsoft is more jealous of, apple or google? >> i think right now they have to be a little bit worried about google. more so than apple. they probably should be worried about apple because what apple has is sort of that mind share, but i think microsoft is looking at the power google has in the marketplace, the money google has. i think that's where they want to be. >> catherine, which company poses a bigger threat to microsoft's stock price? >> i think google. it's a much bigger company. i think their growth and their margins match microsoft's growth

and margins in their core windows and office franchise. google is a bigger target. >> nice job all three of you. thanks, guys. back to you guys over at the main desk. >> thank you. coming up next, she's a major player in the venture capital world. specializes in technology. where is the smart money going right now in her world? stick around and find out right after this.

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look at this. very quietly in the last 20 minutes, a rally for the blue chip average. the dow up 75 points right now. about the high for the session to 10,025. nasdaq still lagging, down 2. the s&p up 2 points at this hour. our week-long series on women and power continues with one of the most influential executives in silicon valley and a trailblazer invest in early tech startups. let's met teresa, the first vc firm to ever invest in facebook among many of the other firsts they have achieved. nice to have you with us. welcome. >> thank you for having me. >> what is it that is unique about technology right now that is allowing you to find deals and companies to invest in and to successfully bring some of these companies to market? technology seems to be standing out as compared to other parts of the market right now. >> absolutely. you know, i think silicon valley is very much a place about

constant innovation and more optimistic than other parts of the economy. i would say right now it's cautious optimism. i think the early stage technology companies, we at ak sell invest early. our job is to find the rays of light, the markets where the technology is creating a huge new opportunity and being patient and investing in these companies over the course of five or ten years -- >> what's the next facebook? >> tell us, tell us. >> what are you investing in? >> consumer internet continues to be a really strong area. in spite of the overall macroeconomy, the consumer facing companies that are taking advantage of new technology and building brand new audiences on the internet in addition to facebook, companies like glam media and ad mob and others on the consumer space in the accel portfolio are growing well over

50% per year. the audience is there. >> i have heard that some vcs out in silicon valley have decided against raising a new fund because of plans inside obama administration. a 59% tax on investing. are you concerned about that? >> i think these types of issues around taxation around the entrepreneurial economy, whether it was around how we were going to be treating stock options or other long-term capital gains could have an impact on on the capital that goes to fund these businesses. venture capital funded companies represented over 11% of all jobs in 2008. so i think it's a real opportunity. everyone knows that small business is what's fueling job growth in this economy. our companies are no different. so we want to make sure capital flows to these entrepreneurs who are building the new businesses

and creating the jobs of tomorrow. >> and at 60% tax rate could get in the way of that. i'm going to throw you a curveball. which industry do you think is more sexist, wall street or silicon valley? >> well, you know, i can only speak about my personal experience. i think silicon valley has been a terrific place to -- that's always embraced not only women and men, but immigrants, native-born, everyone, and i think it's because it is a place around performance and growth and the new thing. it's a new culture constantly e reforming itself. >> her answer, wall street. >> the fed is out with guidelines for executive compensation. this is different than what we were talking about earlier today. let's go to steve liesman who has the breaking details. steve? >> thank you very much, michelle.

the federal reserve is proposing new guidelines that it hopes will tailor bank compensation more closely to risk that is taken by those employees. it's going to as part of this whole thing conduct two separate reviews of banking compensation. one review is going to be the large banks, the 28 largest and most complex bank organizations. it will conduct a second interview of smaller banks it does supervise. fed chairman ben bernanke is quoted in the release saying compensation practices have led to misaligned incentives and excessive risk taking. also saying tit contributed to bank losses. it'they're not satisfied with what the banks have done, the fed can take enforcement action when compensation plans are found not to be up to the guidelines. the proposal is now subject to a 30-day period, and the fed is

declining to put any pay caps in saying one size does not fit all. it expects all banks to review their compensation practices. the fed guidelines say employee incentives should not encourage excessive risk taking and they apply to senior executives and all those executives who basically can put the firm at some form of material risk. the compensation plans take into account risk and benefits of employees -- should take into account the risk and benefits of the employee's activities. they're very, very general. >> i was going to ask you, is there anything specific that you see in there that would say to you, oh, yeah, okay, that would prevent an employee from taking excessive risk? >> no, and i want to just get to one more thing i was going to say, michelle, which is that a senior fed official in a briefing for reporters that just ended says the onus is on the banks to devise compensation practices that mitigate risk. there's nothing specifically -- it says you need to review golden parachutes, whether they might induce excessive risk. so they're saying that on the

one hand, the market doesn't work in the sense that shareholders are not necessarily imposing enough discipline on companies to sort of keep this risk from being put in place. on the other hand, they're saying the banks need to put these sort of things into account in their compensation plans. >> thank you, steve. appreciate it very much. we're coming up on the half hour. time to round up the all-stars. >> and as you know, galleon, the hedge fund group is a sinking ship. so who is the informant who brought that group down? and what's next in the insider trading scandal? we have some answers on that on the other side of the break. >> speaking of women in power. >> yes. it's chevy truck month. and that means full-size deals on full-size trucks. like silverado. backed by america's best coverage... and with the lowest cost of ownership of any full-size pickup, it's america's best value too.

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we're back in the green. the dow 18 points back up above 10,000. let's get to our market reporters beginning with bob pi san ni. >> no follow through to the downside after the drop we saw

in the last hour yesterday. want to put up some financials and point out an important trend. both pnc bank and fifth third bank said the net chargeoff they were seeing would be declining. net chargeoffs are the loans the bank does not expect to recover. that's good news. huntington bank shares did not say that. that's not up nearly as much as pnc and fifth third. here is a stat that really struck me. for the first time circulation revenue e collapclipsed ad reve. the total for the paper, $2, is eclipsing the ad revenue. they also talked about the hopes the ad market would be improving. look at that. great day for "the new york times." finally, we're waiting for the dole ipo to come out tonight. ipos, let's put it this way, there's a ton of ipos and secondaries waiting in the things. a lot of people are watching. look at the recent reception for ipos here since they went public about a month ago.

apollo, rail america, banko sanit asa santander, not doing very well. the traders want lower prices. oil is down a little bit as the dollar is a little bit stronger here today. sharon? >> well, we are looking at gold right now actually. gold prices about to close right here in the open outcry session. down about $6, around $1,058, but we're wondering who owns gold these days. we'll tell you it's the major etfs, the major exchange traded funds which at the end of the last quarter earned about $55.5 billion worth of gold. that's how much gold they owned according to the world gold council, which is comprised of some of the world's leading gorld mining companies. some of that rise may have been due to the rise in prices as we have seen gold prices above the $1,000 mark since the end of september. some of it also due to that trade -- that dollar trade of buying gold and selling the dollar as we have seen over the

last couple of weeks. rick santelli, to you in chicago. >> thank you, sharon. let's look at that intraday dollar index. yes, it's up a little bit today. but why is it up? exactly which part of the currency relationships is giving it a boost today? well, here is what it looks like to me. if you look at a one-month chart of the dollar/yen, you will see the greenback up over 91, close to 91.5, is at its best level in exactly a month and a day against the yen. i think this is where some of today's strength is coming from, and one area there's always strength and that's the treasuries as yields are coming back down after being a bit elevated. remember, we have $116 billion of coupon supply. throw in another $7 billion for reopened five-year tips and you're up to $123 billion. good thing that the dollar is being taken care of and none of this, of course, is pushing rates any higher. sue, back to you. >> thank you very much, rick. >> as the embattled hedge fund

galleon group winds down, a number of new developments in that case. including the informant who tipped off regulators. her name has now surfaced and bertha coombs joins us with details on that and the continued fallout. >> sue, the hedge fund may be winding down but this case is definitely cranking up. a sour close to the insider trading investigation tells cnbc to expect more arrests in this case in the near future as the investigation widens and continues to touch a number of well-known firms. meantime, the latest that we have here, accused galleon chief raj rajah ratman will remain out on bail. a well-connected filphilanthrop had harlem children's own founder jeffrey canada among those putting up the $20 million to secure the bond. the person rajaratnam suspected

was taping him may have been in woman, roomy khan. said she traded information on a stock called polly com. reportedly she was facing money woes. in exchange for lesser charges for her testimony she did agree to wear a wire and to participate in this case. meantime, just last month she and her husband settled an employment lawsuit in california that was brought against them by their nanny in federal court in which the judge at one point just before the case was set to go to trial admonished he was going to tell the jury that there was a false document that had been manufactured by her side in that case. the pr consulting firm, marketing street partners, telling cnbc that google has suspended its relationship with the firm stemming from the galleon case a former employees

allegedly tipped off galleon about google's earnings miss in 2007. this morning rajaratnam was also named in a lawsuit brought by victims of the terror group the tamil tigers in sri lanka alleging his family's foundation gave some $4 million to a charity that was associated or a front some say with the tamil tigers. rajaratnam's attorney called the allegations flatly untrue and liab libellous. adding that rajaratnam has the greatest sympathy for sri lankan victims. and his firm galleon is a major investor in the market there and his woes have hit the market there hard in recent days. >> so first reaction, $20 million bail? was that -- >> that's the bond to secure the $100 million bail cash. >> on a scam that was $20 million insider trading ring. amazing.

>> that's how the economics work. thanks very much. when we come back, this is an amazing story. not just another college dropout. he's the ceo, a billionaire, only 34 years. we will talk to josh james. and myspace surrenders. social networking site is no longer interested in competing against facebook because they got beat. we'll tell you about it. half of the american soldiers who die in combat bleed to death. the million tear says these casualties could be prevented with prompt treatment. which is why everybody u.s. solder in the field now carries an innovative combat gauze called quick clot. >> we have sold by 1.5 million unit. >> cleared by the fda the gauze is lined with a mineral that stops external bleeding within minutes. even local law enforcement like the hillsboro sheriff's office, one of the country's largest departments, deploys always its

units with the gauze. >> it saved everybody from innocent victims to traffic crashes to people who have tried to harm deputy sheriffs to themselves. there's nothing in our first aid kit that can replace it. >> the benefits could go beyond the streets or battlefield. >> if you can stop the bleeding right away or very quickly, then the cost savings to the health care system is far and away more than just the savings on the price of the product itself. >> that's today's "healthy horizons" report. i'm brian shactman.

"fortune" magazine without with its 40 under 40 list of the hottest rising stars in business. erin burnett is on the list. josh james is in the process of selling his company to adobe for a cool $1.8 billion cash. he joins us now on the cnbc exclusive. josh, first of all, congratulations. >> thank you very much. >> has the check cleared yet? >> hopefully here in the next few days. >> in the next few days. tell us about your company. it measures digital activity on the web. is that like a rating service? >> what we do is if you didn't have our product it would be like flying a jetliner without an instrument panel. >> how long have you been in business and why are you selling it now? >> we've been doing it for 13 years. started it when i was at school at byu. or goal has been lets get this business to $1 billion in

revenue as fast as we possibly can. >> how fast did you do it? >> we're not to $1 billion in revenue yet, but with the adobe transaction we think we're accelerating that. it's going to be great for the adobe business, i think, and great for our customers. >> how does it feel though to sell the baby basically? you built this up after a long period of time. you have nurtured it and now you're selling it to a large corporation. obviously it feels good from the monetary standpoint but is it easy to let go? >> no, it's really difficult to let go, and i don't think at the same time we're not letting go. we're really still trying to get this to $1 billion as fast as we possibly can. the great thing about our relationship with adobe, we have been a customer of theirs and they have been a customer of ours for several years. we've had a partnership and our customers are asking us, can you do more with mobile, do more with tracking flash and helping us understand how those investments are paying off. the combination of that makes it easier for our customers. >> i assume you pocketed a portion of that $1.8 billion.

in washington we have politicians talking about want to cap salaries at all publicly held companies in the u.s. economy and tax rates on vc investing that could hit 59% when you wrap in california rates. what do you think of those two ideas? >> i think what makes this country great is the capitalistic nature of our economy and the fact there's opportunity for everyone. my dad is a colonel in the marines. we didn't have a ton of money but there were opportunities for us. slongts t as long as the opportunities exist, you will see great things happening. i think the opportunity for innovation is really important. >> do you think the path we're going on in the united states fosters the kind of environment that helped you start a company. >> i think we have to be very careful. the pendulum swings. i think people understands sometimes it swings too far to one side. it feels like the economy is coming back. it feels like our customers are getting their sea legs, ready to do more business, and really with the thing i think about a

lot is technology -- evolution of technology, it's no respecter of how the economy is doing. we see our customers in japan, they're walking around with their cell phones buying stuff at seven-11, buying their dinner, and that stuff needs to be measured. our customers want to know how their investments are paying off. that what this combination with adobe really brings. >> i know when mark cuban sold out, he bought the dallas mavericks. john if the utah jazz is for sale? >> do you want a sports team? >> everyone should have a sports team. of course, it's the utah jazz. >> josh james of omniture. fortune also named eight over 80. i'm not kidding you. look for it in "fortune." >> you're a business traveler you say and you just have to take all your tech gadgets and toys with you when you fly. the airlines have tightened baggage restrictions. >> what to do, what to do. david pogue of the "new york

times" says you need a tekkie man purse. he explains on the other side of the break. ople think that hondas always the most fuel efficient choice. well, this chevy cobalt xfe has better highway mileage than a comparable honda civic. the all-new chevy equinox has better mileage than honda cr-v. and chevy malibu has better mileage than accord. however, honda does make something that we just can't compete with. it's self propelled. introducing the 60-day satisfaction guarantee, buy a new chevy and if you don't love it,

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airline baggage restrictions tighter than ever. checking a bag, more pricey an ever. if you want to be a tech savvy traveler, you have to use some ingenuity. today cnbc kr"new york times" th columnist david pogue tells us what he never leaves home without. >> today's e-mail comes from a viewer in austin, texas. dear david, wow, i am such a fan. i may be a busy cardiac surgeon, but when one of your videos comes on, well, sir, i drop everything to come laugh and learn. i only wish you'd read some e-mail from actual people now and then instead of making up fake ones like this one. oops. i guess you got me there. anyway, you seem to travel a lot. why don't you share with your viewers what you carry in your travel bag. let's have a look.

lately i have been carrying around a mac book air laptop. it's too slow for heavy stuff like photo shop and video editing, but for e-mail and writing and web stuff, it's perfectly. a light little legal pad. the only thing is i found the aluminum dents if you drop it a lot like i do. so i got this cheapo snap on protective prays. for years i resisted getting one of these. it's a usb cellular mode em. it gets any laptopon line at any spa speed anywhere. next we have -- how did that get in there. lately i have been carrying around a camcorder. this is it. the new ipod nano does, in fact, have a tiny video recorder. it's not high-def or stereo, but you always have it with you, so when a cute kid moment arises or when i need to record an

interview. >> now, this is off the record. >> of course, you can speak freely. got to have a flash drive to get your printout from your laptop to the hotel business center. i find it amazing that after the billions of dollars the car industry spends, no one is putting power outlets right on the dashboard. this is the next best thing, the sears auto inverter. stick it into the cigarette lighter, it has a three-prong outlet and a usb outlet. finally tucked in a side pocket for emergencies when there's no wireless and the batteries are dead and the gadgets are worth it's, i keep my emergency kit for what really counts, $20, trail mix, and a magazine because you never know. >> david pogue. >> thanks to david pogue. up next, myspace waves a white flag, says no longer interested in competing with facebook. oh, really zbl.

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obama will be speaking on executive compensation. you will see it here live. myspace is conceding defeat to facebook. their relatively new ceo, who by the way, did we notice is a former facebook executive, now running myspace says they can have that social networking space. we're going to go somewhere else. >> uncle. >> i say he's a corporate mole. that's what's going on. >> i like that. >> you can't argue -- >> 300 million for facebook. 100 million for spacebook. you declare victory and go in another direction. >> where will they go? >> they will want to be a hub for entertainment media like yahoo! and itunes. >> itunes is a really weak competitor. >> that does it for us on "power lunch." we will see you tomorrow. have a great afternoon. >> "street signs" with erin burnett, number 33 on the under 40 list, coming up.