these new buildings. >> we love that billing, that's the trellis building. >> i have to bring that up every time. >> and you have to get off that train next time. >> governor, appreciate it. >> thank you. make sure you join us tomorrow. "squawk on the street" is next. ♪ it's time to play the music welcome to "squawk on the street." melissee i still off. the dow looking to extend its winning streak to 7 today, as jobless claims do beat expectations. futures are positive as ppi, year over overat least the smallest gains since 2010. spanish yields are up. portugal, and fits putting uk sovereign debt under a negative outlook. day 2 of the goldman sachs story as late-night comedians take aim

at james smith, and a letter from jamey dimon. mortgage rates back above 4%. china at a three-week low, jpmorgan says they are already in a hard landing. cisco buying an israeli maker of tv software called nd 5 for $5 billion in cash. what's behind that move? we're calling it the 700 club, the fourth analyst in three days to take the price targets above 700. in the meantime, the reviews are in on the new ipad, and boy, are they good. but first, some more drama over the goldman sachs resignation letter. in a memo sent to employees, jamey dimon told the staff -- i want to be clear i don't want anyone here to seek advantage from a competitor's alleged issues or hearsay, ever, it's not the way we do business. he did not specifically address goldman, and david, i think you have a copy in your hand?

>> i do have a copy of the memo. very short and to the point, but he did say to "new york times" op-ed piece, and this was sent really to the top executive management at the firm by goldman sachs executive, generating a lot of discussion. he simply says let's not try to take advantage of a competitor's alleged issues or hearsay ever, it's not the way we do business. we respect or competitors. our focus should be on what we can do best to continually strengthen our standards. you can say there but for the grace of god, you know. we all make mistakes. we could look back too. >> but look, you don't need to if you're jpmorgan. you never need to mention goldman, because every one of your prospective clients have read it. have you seen the article? have you seen this? you know, you don't have to do anything if you're jamie dimon. if the other guys' cars are

blowing up, you don't have to say buy our cars. in "new york times," it led with the story this morning, which is incredible to me. >> front page, "today" this morning. >> it has crossed over, because there's so much i think antipathy on main street for wall street. when it comes to wall street. if the you're going to tell me they're not fully aware of making decisions, i want to trade with goldman sachs because of any variety of reasons? they're already making a decision to do that. they're not naive, most of those clients. >> how about this? you're lloyd blankfien, you say we ought to review the culture -- will you stop and listen to me? >> it's too late. >> stop and listen to me. >> the 14 aspirin tells -- >> i like that, do that again. >> i know the 14 principles.

>> i know you do. >> but i would say i want to do an e-mail search, a forensic search of everyone who used the term muppets, and i tell you, those people's names would be on the front page of "new york times" and "wall street journal," they don't belong in the organization. >> because one employee out of 30,000 has a gripe. >> if anyone uses the term "muppet" i don't want to see them. >> let hayes talk about stephen colbert last night. >> the greatest betrayal of all was the revelation that goldman size dericively called their overly trusting clients muppets. folks, that's not derisive, that's accurate. unfortunately ernie took a real bath. >> i can't be done with this. the parodies were great, about the one that belonged to the darth vader organizations. my favorite of all of them was

in "slate" the why i'm leaving goldman sachs, more resignation letters, obviously these are made up. here's one from melody stevens, why i am leaving seaworld, april 3rd, 2012, i got in the business to spread my love of marine life. now i see the whales are just in it for the chum and the audience is all wet. there's someone who gets it. >> one more coal colbert. >> i may not agree with this guy, but i have to salute his principles. once he found out that goldman had a culture of greed, he left immediately after 12 years at the firm. >> yeah, all right. that's a fair point. >> there's going to be blow back on him. >> did he suddenly realize? exactly. yesterday was enough for him. he reached some sort of level, and the people are making fun -- >> and he puts his resume inisms

the table tennis. >> the rhodes scholar finalist, having applied for that. he did not get the rhodes. >> all true. but this thing is resonating in a way that many might not have anticipated. by the way, again, not news to so many clients. the idea, though, that somehow lloyd blankfien says we're going to change things, is ridiculous. >> do you mind if i make some financialful suggestions. if you president were asked about it today, it would get a third day. i would do it if i was in the white house press corps. i would go to romney and say, is this what happened at bain? these political reporters are not caught up on this story. this is what they should be focusing on. this is the story in america right now, because it's a hated firm. i worked at this firm, it is crushing to me that it's hated, because i think there's

29,000 -- >> a lot of that hatred had died down for the most part. they did not -- people in wall street are making less money, though i don't believe they truly appreciate the level that -- >> how many products did goldman sell to protect against interest rates totally the wrong direction. having sold derivatives, you know -- there are hidden profit margins, because you don't tell the client how much you're making. to sell a derivative is the biggest piece of business you can do. >> which was smart in businessisms and let's remember, goldman did on some of these deals keep the other side of the trade issue. >> it is there. the you had headline cdo, they don't do it. the synthetic cdo were betting against it, and finding some german bank to do the other side. >> you did extensive work on the other side, the muppets?

>> yes, i did. >> you did the german, the norwegian. >> the swedish chef. >> i don't know why. >> larry, curly, joe, which client was shemp? >> you just went from muppets to the three stooges. >> i'm bringing up a lot of dumb and dumber. which one was peetie? >> lot to watch on wall street. dow is aiming for a seventh day of gains, gold trying to bounce back from this week's sell off. treasury yields continue to climb surpassing their levels, above the 200-day moving average. the best headline i heard today -- gentlemen defer bonds. that's exactly what they're doing. >> i think that diamonds may no longer be a girl's best friend. it may be high-yielding stocks. >> this move is one we have to keep an eye on. >> it's the tell.

>> across the board, mortgage rates as well. remember that spread between the 30 and 10 is very important. that is widening out a bit also. >> that's jpmorgan, that interest margin is going higher. that's the leadership group. >> price the 30-year, because you hope people pay that are mortgage back within ten years, so keep an eye on mortgage rates, now bouncing off the lows, very important. >> meanwhile, cisco, agreeing to buy this company nds for about $5 bill chron. nds -- companies 51% owned by private equity fund, 49% by news corp., david. >> 49% owned by news corp. actually that may be where we see more of the stock play. news corp. has embarked on a buyback program, the so-called shrink of their capital structure, so to speak or equity capital out there is a key part of the story, one reason why the stock is up 22%. another $2 billion going to

their balance sheet, roughly, that will xwolden people that they will continue that pace, and perhaps even renew or start anew. >> and cisco gets good exposure to india and china. there's growing worry about security everywhere. security is a continuing underlying theme. >> this is for the settop boxes, though. there were some rumors that cisco may part with an acquisition. >> there was. i guess that's over. >> that clearly is not the case. they're going to double down, if you will. cisco has always been aggressive on m & a, but never with the huge deals. but $5 bill chron in this market, for one where we have seen so little is very significant. >> it helps them with the service provider business, something that juniper was hoping to take away from them. >> juniper remains the redheaded stepchild. >> how relevant do you think

cisco is to tech? >> i was looking at the amount of cash they have, you know, you're talking about cisco having $40 billion some in cash. this business that they're servicing the service providers, i think people underestimate how difficult it is. you know, when you're trying to provide verizon with material and at&t, they beat the heck out of you, because they are oil gop lists, but i believe very strongly that's a tough business to make money in. >> does this fuel enthusiasm for you? >> if you're selling into china and india, maybe that's a good growth market. i don't know how many people in western china, how many people even have tv yet. obviously -- that's a joke, they don't have 248 trillion. that's the amount of apple's

market cap -- [ laughter ] >> when you have a trade deficit like the chinese, that's people buying homes, buying apartments, getting tvs, the first thing they plug into the grid, and second thing, they plug into the tv. >> and talking about driving a transition to offer new revenue generating experienceisms you just moved news corp. up in the market trade. do they have any other hidden assets? >> good question. it's worth 50 cents a share you're talking about here, and it was not one that was thought of empeople were aware of it, but when i made a couple calls, it was like, wait a minute. >> news corp. remains one of the great media stories to buy, as does time warner. hopefully we get to talk about they cannot skip a beat. they don't skip a beat with this hbo cancellation of "luck." >> did you watch it? >> i premiered it --

>> it's against "walking dead." >> slow going. >> how can you go against "walking dead"? >> how do divorces compete against that. could it be the say that apple hits $600 as more wall street firm raise their targets. and piper going from 670 to 718. jim, piper's quote, we did not give enough credit for growth in the smartphone and tablet markets, boosting the numbers for calendar 13. >> this is the only story that i follow more than analysts, i follow david pogue at "new york times." he says this is it, you've got to get one. i follow "the washington post's" john topolsky, saying the display is outrageous. moss burg saying go out and get

the tablet. those are the analysts i follow. >> here's mossburg. if you already own an i pavement 12 and like it, you shouldn't feel like you rush it. however, those who use the ipads as e-readers, this could make a big difference. >> my kids took mine and said, okay, dad, you can get a new one. you need the 4g. having watched mlb.com, it will be better than watching any tv screen or movie screen. my skin will look even worse. >> bring up the one-year on many ale. i just want to ask you, the right end of this chart, which is going to come up, is that parabolic? will we look back and -- >> we've been parabolic, but if you divide it by 10, it started at 40 and goen to 60. i have a lot of stocks i follow that -- it would have gap up eight or nine points.

held the gap and stayed up. look, i'm not -- i hate parabolic move, carl. every once i've ever seen does end in pain, but the difference with this, it should have gapped up, but because of the size and volume, it doesn't, because last quarter was so much better. >> you mentioned the 4g, advisory, the next expectation is the 4g lte phone being sold by everyone. >> i don't have one. >> i'm saying they haven't come out with one yet, but that's the next iteration for the appear the iphone is it will be available to work on a 4g network. >> i hate to use us as an example, but our employer, cnbc offers me the option, i got this yesterday, just took a picture of the two of you, the first picture and tweeted it out, we're going -- enterprise will be the story. >> like jpmorgan went for this,

doctors, ge, the parent company. >> this is a cnbc-issued telephone. >> that just shows that carl is at a level that i'm not even familiar with. he's a suit. >> you're playing a game that -- i was unaware of that. >> i think you've been wired since you got here. he has a handheld -- >> david's phone literally is a dial. >> i like to live in the '70s. >> my blackberry is from 1992. >> burn, baby, burn -- just passed away for the tramps. >> i listen to that on my eight-track. >> siri now lives to serve, he swans to do anything to please me. she's rather remarkable. >> i know -- >> there's a post article about this madam in new york. she should have listened to siri. she probably would have done a

better jog. >> speaking of which, blago going to prison today, 14 years. and black swans, how they're flying into the shorts, taking one more look at futures, after claims, after ppi, still looking for regional surveys today, futures up almost 20. a lot more "squawk on the street" live from post 9, when we come back.

welcome back to "squawk on the street." everybody wants to talk about interest rates, everybody is referencing the 10 to 11 base jump in mortgages due to the jumps we have seen in the treasury complex. there's a huge correlation, but certainly isn't 1:1 on the week we're up, what, about 25, 26 basis points on a ten-year note yield. as i said, that translated in about half we've will have come off which was at a 348 yield briefly, and if you open it up to last summer, you can see the comp in terms of how the 30-year is leading the charge.

we did have pretty good data today, but pretty good was hot on the side of inflation, but we saw some pretty good initial and continuing claims. we also saw another piece of data, treasury international capital flows, always two months in arrears. january data looked pretty good, but if you look at totals in, which is what you want to look at, about 18 billion, the numbers are still pretty good. carl, back to you. >> rick, we're working you hard today. see you in a few minutes rick santelli who took the redeye from new york. the guy's a machine. >> what a trooper. >> gregg smith, the author of the much talked about "new york times" op-ed, talks about how he was a rhodes finalist, a full ride to stanford, so since he's now looking for a job, where should he submit his resume and why? you can tweet us, and we'll air your responses. there's a lot of talk about whether he would ever work in banking again. >> a movie dale and book deal within the next two weeks,

between 2 million and $3 million. would you take him with your hedge fund. >> i would never deal with him again. you never go to the press, whether you like it or not, you never go to the press, ever. >> when we come back, running ahead of the curve. there's a lot to talk about today. and one more look at futures, as we try to get the dow's winning streak to 7. back in a minute. looking for a better place to put your cash? here's one you may not have thought of: fidelity. now you don't have to go to a bank to get the things you want from a bank. like no-fee atms -- all over the world. free checkwriting and mobile deposits. now, depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity. ♪ when your chain of supply goes from here to shanghai,

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about five minutes before the bell. time for cramer's mad dash, today looking at joy global, and a lot of talk about whether or not this move, among utilities, from coal to natural gas is cyclical or structural. >> boy, is this ever right. i've got to tell you, people just it's downgraded, downgraded, because it does make the machines to get coal out of the ground. you have to start thinks it's -- and if president obama is reelected you'll see a dramatic numberle coal plants shut down, just in the short time we've been working on this issue, this is something to watch. natural gas needs users and so many companies, including the rails, norfolk southern downgraded today, they ship a

lot of coal. csx defending itself saying don't forget we also ship autos, so the reverberations are permeating the economy. and the cat and bucyrus may be formidable competitors. >> the acquisition is a china killer. that means if china is where all the mining goes on today -- let's give mike his due. he said, we're tacking about single digits. this is an export company, so don't treat on you entirely about joy. >> we've got a lot more to do, some ebay stuff, j & j, we'll get that after a break. in the meantime, a lot more "squawk on the street" continues. a busy thursday more from post 9 in just a moment.

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on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire, td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? welcome back. you're watching "squawk on the street." live at the post 9. anybody i think might have touched the opening bell briefly. we heard a little ding. >> gun jumping.

>> not quite time yet. a couple things are going on here. some ipo action. >> there you have that software service cloud product. this is a picks and shovel play. internet commerce, procter & gamble, i like this very much. >> in the meantime at the big board, celebrating the ipo as well, alison transmission. >> taking huge sharp from watch ko. this is a remarkable company, great heritage. >> and we'll talk to the ceo of the general motors spin-off. at nasdaq analog semiconductor supplier celebrating its ipo as well. >> i always feel analog, you're texas instruments, where is it going? breaking news, apple has hit $600 a share. seems like just the other day the target was five. here we are at six. >> i've got to say this is a $50

stock that went to 60. i say that, because there's so many people playing the options. all i can say on an earning per share basis, it's still inexpensive. do i like a "usa today" headline that says everybody owns apple, no. but at the same time this is a greatest manufacturing story. i remember when hyman rod said they're bigger than u.s. steel, but apples has earnings, this is not a dot-com. full disclosure, we own app apple, but it's not going parabolic. it's a function of the graph scale. >> i look at the s&p charts i get hand-delivered every saturday, because i have no life whatsoever. if you step back, there is -- it's not really k-2, which is the sharpest and harder to klein than everest, but a nice move up. there's been some drops like that, what buyling

opportunities. >> do you think these price targets are -- >> everybody is struggling. we had a good margin expansion there. they're putting in 40 price earnings on chipotle, but you struggle. why does apple have a below-market -- they can't figure it. >> apple is responsible for 34% -- 34% of the nasdaq 100's year-to-date gains. >> these are all daunting. there isn't a single figure that i can pull up that makes me feel comfortable except for my $50 to $55 fiscal year 2012 number, and when i look at the reviews, carl, the reviews are go buy one, and there's some digi times numbers, they're talking about raising the number of tablets that are going to be sold this year to astounding proportions. from 87 million just a few weeks

ago. the proportions of tablets being sold, remarkable. >> you think that 8% of the population in the u.s. has an ipad -- or a tablet, one of the two. >> what's also interesting, amazon, samsung, hewlett-packard gone, the playbook for research in motion, it's not just apple doing great, the other guys just don't have the horses. >> even as the apple price targets are going higher. credit suisse cuts ebay. >> i check that. i've been using the sum of the parts, and you've been to pay paypal, how this home depot trial is doing. i think it would be mastercard, visa, paypal, because the younger generation uses paypal as their credit. >> j & j. weldon will get a boatload of money for retiring. >> the only people that should be paying him is perigo. they took so much share because of his mishaps.

so, yes, if he gave them 140 million, that's correct. i know, and length of service, length of service, they say i don't use tylenol anymore, but the perigo version. that's all they think about in america. >> before he stepped down, he was on your wall of shame? >> yeah, because he created a lot of value for perigo, and i like ceos that create value for their own companies. everything i just said is total heresy. he's a loved figure, but i always come back to, did the stock make you a lot of money is it and how did the product do? those things matter to main street. on wall street, they say he's the greatest ever. what makes you the greatest ever? i think steve jobs was the greatest ever, greatest wealth creator, greatest inventor maybe in history, more than ford, put him up with edison. >> sure.

>> i caution people to not hate ceos just because weldon got $140 million. some of the ceos are paid reasonable amounts. the board did agree to it, and they're the guys you have to look to. >> that is true. >> the comp committee of j & j, i want those guys to do some soul-searching. >> i think david and pisani are body-surfing, because it's a mosh pit on this thursday. >> we're in front of both the posts here, allison transmission, they paid 5.575 billion for it, going public today. and another cloud company looking very strong here. and as in so many of these cloud computing companies, $16, and right now indications are 22 to 25, okay? 1250 to 1450, now cases 22 to 25, probably within the next ten

minutes. you can see where the action is. cloud computing stock, pricing in the teens, opening in the low 20s. this has been the story all year. >> i didn't mean to interrupt, but there you're talking about eight times ebitda. i tell people up to $16 this stock was rich. i'm going to warn people, don't buy this pop. don't buy this pop, sell this pop. i like this company, but i was hoping that $16 was the stretch valuation. here you are you're yelping it, don't yelp. >> i don't know what they're typically for a cloud company. >> you're talking about being there, man. >> they do customized e-commerce sites essentially. that's their specialty. so we'll see how they open, but 22 to 25 is the indications right now. meantime we're on a hunt for inflation, treasuries are still the big story. yields are still high on the 10 and 30 year. we're looking to see whether the ppi would show anything.

the new york manufacturing survey was good, still expanding, but prices paid double. i don't know what happened there. that's a very unusual number. i think we need to wait for the philly fed numbers to see what's going on there. but so far indications are inflation creeping up at least at the producer price level. did you see what happened in spain today? >> i did not. >> following the face of austerity, home prices are plummeting, following the pattern of ireland. ireland is ahead of the austerity program. spain is just starting. >> still plunging. they've been moving down for a long time. >> in spain, look at the headline, down 4.2% in the fourth quarter, compared to the third quarter, and down 20 -- almost 22% from the peak in 2007. that's -- and they're just entering their austerity package. look at a country way ahead of them, ireland in austerity for two years now, home prices are down 48% from the 2007 peak, and

was still dropping in the fourth quarter, compared to the third quarter. >> so some of those spanish banks, the question will be where do they have those mortgages marked? something we have seen played out in the u.s. that's got to be a key consideration. >> that's right. of course, remember what happened in ireland, the government stepped in, there was huge property speculation. ireland and spain have i similar. huge property speculation. exactly the point. the irish government came in and backed all of the loans made, using international money, and transferred the risk to the irish people. they're now paying for the debts of all that huge property speculation. >> sound familiar. where have i heard that before? independents and spain, of course, the numbers are still going down. right now the markets are open, i'm waiting to get an indication, but still 22 to 25, allison transmissions still at 23. >> not a delevering. apparently they're using the proceeds, or the proceeds are from shareholders. >> my understanding is this is

one of the issues -- my understanding is none of the proceeds are actually going to pay down debt. >> this is interesting. it's a tale of two ipos. the ipos about growth, such as demand ware, have done extremely well, but those from the sponsors have been much more mixed, that being the financial sponsors like a carlisle from an '07 lbo, have meant met a very different reception. >> okay. >> carl, back to you. >> let's shift the bonds, back at the cme group, i don't know how he does it. go right ahead, rick. what do you got? >> it's because i eat a lot of twinkies. you bury a twinkie, it looks great after 50 years. that's how i try to keep looking. okay. in terms of the market looking okay for the treasuries, i think the only word you need to concentrate on is northerlialization. there's a lot of reasons why they'll probably carve out a new range. if you look at the intraday

chart of our 10-year, 30-year and 10-year bund, at a time where inflation may have been a bit hot, but growth is a bit better. evidence of this dynamic, if you look at the bund going back to all their pattern has broken out of that november trading range. some could argue their growth is weaker. some could argue the holder, but whatever the reason, we want to watch how both of these spread out against each other, because if rates are really going to climb in an aggressive fashion, i think the bund has to be dragged along with us, and it keeps stopping around 2%. carl, back to you. >> rick, thank you very much. rick santelli over at the cme. a lot of 4th lines, we haven't touched much on china today, but the cover of the f.t. is about

this struggle in the party, the mayor being removed, and now foreign -- -- >> jpmorgan talking about a hard landing. >> mean anything that shanghai is at a three-week low? >> yes, it does. we are a growth engine in the world, but europe is not providing any growth. china, we need growth. my friend mike semblis, who does the eye on the market piece, a remarkable thinker, did this piece about the communist party. the communist party is more powerful than any time -- you know, even like under lenin in russia -- >> is it really a tailspin? the chinese economy? >> no, i'm say the communist party seems to be -- >> oh, okay. >> no, the economy will grow, i don't think a hard landing, but look, i hate to say this, but i want the communist party to be

in less disarray of the the communists are the greatest -- i don't want the communists to get what's happening with the socialist economy. we need a little more command economy doing better. >> these comments by jpmorgan chief asia analyst, car sales, cement production, steel production, construction stocks all lower. >> interesting about the car companies. gm is saying some positive things. i need to hear more data about the west of china, which i think is growing. you know, maybe we're all kind of like -- we're all being very granular with china, but i know what david is thinking. jim, who else is growing like that, even if they're declining this it's still the greatest growth story. >> you knew what i was thinking, and it's extraordinarily hard to understand the machinations of what's going on with the

communist party. >> the communist party, if they are sold a lot -- i don't know how much business goldman does with the party, i'm not being facetious, do you think the communist chinese are saying, listen, are we respected? you know how much railroads matters to them? >> true. >> interesting question. >> it is. it is. market's down 15, 16 points. we'll so if this winning streak continues. i heard someone say today because so many people are underinvested, that there is a floor that will keep this market from suffering too many days like we saw a few days ago. >> and let me tell you why, because the banks are the market leader, the supply will no longer be infinite behalf stress test. the banks are very low multiple stocks. you can see a rotation -- though cummins engine is very strong, i use that as a arch type.

>> so undervalued. that rolled off your tongue -- >> because jamie dimon is talking about growth. when you have growth, it konkored all. it's a little bit like love, speaking of shakespeare. >> the islands -- ides of march is today. speaking of banks, the bard of wall street right here. >> thank you very much. c.r. bard is a good stock to rotate into. i had, you know, all the world's a stage action. if you push this, do we not die, i did that, you know, a reference to -- >> i'm aware of that. >> how could you not? >> another jewish great ping-pong champion? >> second place.

>> there you go. >> another great jewish athlete. bank of america, a lot of people going back over the stress tests and finding the fed's analysis that fewer mortgages would go bad at b.a.c. than pnc, than fifth third, then wells fargo, and trying to build an argument that maybe they have gotten rid of the bad stuff faster than we think. >> if you listen to wells fargo, they listen over and over again, the number of foreclosures is down, they have a tried and true formula. if that's true about bank of america, then it is a surprise to people, because bank of america is regarded as being a terrible lender these days because of countrywide. countrywide was -- brian solved doing -- >> next tell, countrywide -- >> and harsh, harsh -- use know if you can veero in on this picture of vikram, it looks like

he's poking his eyes out. >> it looks like big bird -- again, i'm stuck in this world of muppets. >> is jpmorgan pinky and the brain, where every day they call for world domination? i mean, if you want to cartoon everybody, we ought to go through the whole group of the investment banks -- no, you're not going there with me at all. >> no, pinky and the brain? >> yeah, pinky and the brain. >> sometimes you get me outside my comfort zone. >> who is john carter? >> there you go. >> john carter. off the radar screen for a couple days. >> we talked about it in the earlier part of the week. >> yes, we did. when we come back, the twit question. we're going to take a break. a lot more "squawk on the street" in just a moment. [ artis brown ] america is facing some tough challenges right now.

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sgloop alan so i transmission, bob pisani is on the floor. >> it looks like it opened just a moment ago at 23, and now trading at $23.09. the actual -- it's interesting, because we are next to allison transmission here, an old-school company, a transmission company and right next is demandware, a completely new-school company, of course, cloud computing. right now the indications are about $25. remember, 1250 to 14.50, the price talk, $16 is what it priced at. we're standing here waiting. there's still indications at $25, maybe 25.25, so it's getting close, in the next three to five minutes. >> that's expensive. that worries me, carl. people are going to buy that --

look, i love software as a service, salesforce.com, this is a picks and shovels play. you want to buy what -- like lee jeans and 49ers, it's just too high. you have to be very careful. >> calls on newly issued names have been -- >> demand ware i pushed very hard. you can pay up to 16. i can't lose my discipline. i think people who pay at this opening price may not make money. >> we will talk to the head of allison after the break. a lot more "squawk on the street" is still ahead. ♪ when your chain of supply goes from here to shanghai, that's logistics. ♪ ♪ chips from here, boards from there track it all through the air,

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we'll start with guess, well below estimates, jim. >> like -- i've got to tell you, you've got tore careful. tractor supply. >> some interesting piece, doing well, high single-digits. it's weaker today. >> united health estimates. >> this is beinging the organization to go to. it's back, bigger than ever. >> seismicer getting an upgradeisms i don't think -- i think it's -- >> upgraded to buy over at b of

a. ceo brought it back. >> and stock down in the s&p, be very careful. i like the numbers. it is the great retailer of our era. >> for more on those names, go to sots.cnbc.com. i believe demand ware has opened as well. up 58%. >> people don't care. no, people don't care. now they're paying up $9. >> would you are you stopping at -- >> i don't know what the growth rate of this company is. >> it's spectacular, but they're losing money. they are now cheaper than this. those are out of control, though they did report a good number.

i'm just doing back of the envelope. >> one of the two big names we're watching. >> lawyer duies of allison transmission, a spin-off the general motors. congratulations, mr. dewey. >> thank you. >> good to see you. >> it's a very exciting day. el. >> you guys are uniquely -- >> we're excited about the growth we're seeing in term of the cyclical recovery. we also have a great opportunity for secular growth. if you think about automatics used in commercial vehicles.

outside of north america, only 5% of the vehicles use automatics. >> and you're ready to steal a lot of share. >> we certainly are going into areas. >> you're a gentleman. i'll say it, you don't have to worry about it. >> well, you have to look, when they talk about that, they're very often talking about class 8 line haul. we're the straight trucks. >> a lot of municipalities and they haven't been buying, so we have more of a late cycle play here. also construction, you guys know that, that construction hasn't rebounded yet, and we're well positioned as that cyclical recovery comes back. >> i want to know, just as a person who knows engines, do you this revolution going on in nag gas and engines? are we going to be seeing a

replacement of diesel fuel, 47-1 ratio, highest everly? >> and if you look at what they're doing, a transit buses have gone, driven by the -- so certainly we have seen a trend in that direction. it's constrained, having said that, i think it's bottomed out of the, we've seen some people starting to come back in, it's slow and gradual, but certainly a steady and prolong ed. >> we're probably in about the fifth inning. >> a lot of those games -- you're talking about major league baseball. >> we expect to go the distance.

>> you're a high le levered company, you're not raising money to delever through this ipo, it's always difficult to navigate when you had a lot of debt on your balance sheet. when will you actually sell stock to potential delever a bit? >> we've delevered a considerable amount. >> again, you can kind of project that kind of a glide path. and then with a cash flow characteristics, we'll be looking at shareholders returns of capital. >> finally before we let you go, you do automatic transmissions, do you drive a stick or automatic?

>> i drive an automatic. i had a bicycle that was automatic, if you can imagine that, and a pickup truck with a duramax diesel, that i drive on weekends to go to the hardware store. and if we look back, the last time we've had a number at this level, wow, it's taking me back to april of 2011 to find a higher number. this is on the heels of empire, which a 20.21 was at the highest level since june of 2010. so we still continue to see data that points to a firming economy, and of course, we then look at the interest rate complex, which seems to have had a spike today close to 350 in a 30-year that's backed up close to 340, and same pattern is true for ten. carl, back to you.

>> we heard a couple different things, one the month increase for ppi was very hot, the other -- that the year over year was very mild. which is it? >> you know, i think i always look at the rate of change. i always think that the closer in time your data is, that's the rate of change you want to pay closest attention to, in my opinion. >> thank you very much. you are warning us about more numbers today. we'll see what's. a road map for the next hour, the dow looking to log its seventh straight win today, but as risk had on trading prevails, why is one investor saying the s&p should slide to as low as 1,000? that's in a moment. and jeremy lin, and the knicks' d'antoni, and what do the fans have to say? we'll talk to the president of

stubhub. this after gold broke through several key technical levels. we'll check the stocks. gregg smith's departure lighting up the news wires yesterday. what's going on behind the scenes? we'll break down the pr nightmare. first, stick certainly dominating the headlines. gartner saying it experts chip chips to rise. the previous 2012 estimate was at a measly 2.2%. >> earlier this we're, yahoo! made headlines. now facing a proxy battle over a new board, or at least four new members for that board. from dan loeb, he currently, as i just said, one of the largest shareholders, 6% stake in the company. >> talks in china as we had, jpmorgan saying china's economy is already in a so-called hard landing.

new his words, as he gave the speech in singapore, it's no longer a debate. it's a fact. >> so certainly getting some attention today. >> hard landing, no doubt would not be a good thing, as jim cramer would say, it's very important to the world's economy. simplgts europe has been able to come back. we've seen some portugal yields widen. >> spanish housing numbers from bob pisani, raising questions.

yeah, shanghai doesn't seem to do well when they have 10% gdp, 8%, that stock market has very difficult overall. >> for sure. 8 mean time, all tli indices up, but is a perfect financial storm brewing? our next guest says, yes, he sees the s&p going down to perhaps 1,000 by year end. walter zimmerman is at united i cap. good morning, way overbought? >> absolutely. >> and you're calling it bullish sentiment in the extreme? >> yes. when you look at the percent bullish on this stock market, it just hit 68% two days ago. now, actual all-time high in october 2007, it was only 69%. this is much higher than it was at the peak of the internet double. this has all the froth and ebullance of a bubble market, when you look at both sentiment

and momentum. momentum divergence, indicating, yeah, it's still going higher, but it's running on empty. >> are you looking -- if that's true, why is the retail investor practically absent? why is volume practically zero? >> well, see, that's part of it, that you're not going up on a broad-based volume. as you get toward the peak, the rally gets more and more select i have been, more and more the deeper blue chips. >> not mom and pop coming in later getting left holding the bag? >> absolutely not. if you look at the broad-based index like the new york stock exchange composite and the dow, the dow is over it is may peak. this does not have breadth, it doesn't have momentum, and it has all the ebullience of a frothy kind of bubble, just the kind of market that the fed is now supposed to be protecting us from. >> walk me through your model

and how you get to 1200 or 1,000. >> we see three main risks ahead. one is iran and the risk for much higher energy prices. they don't need nukes for electricity. they have less than 1% of the world's population and more than 20% of the world's natural gas. so clearly this is not we need nukes for electricity. that they can even say that with a straight face tells me they have been practices for years. >> sure. >> number two, the eu. portugal is in depression, and the core countries like germany, very export dependent. they're going to start to suffer from this severe weakness in the periphery, the real problem in europe is what we call a deflationary debt trap, as the

economic shrinks, they can't carry existing debt. so we're looking probably another 7 to 8% contraction in greece for this year. we think they're overlooking the problems in the u.s. economy. one of the top three ricks be see to the u.s. economy is the u.s. economy. you look at housing, you look at the pace at which jobs are being added. at the current pace, that's going to take 10 to 15 years to

get back to pre-2007 employment levels. so we think there's plenty of risks out there being under-appreciated, and we think that's where the technicals have value, because they're leading indicators of trouble ahead. at the top, the news is always bullish. you never will get bearish news at the top. >> we have a fair diet of bearish news, i don't know if you've noticed, lately. >> bearish rumblings, you know, warning signals that things are not as good as everyone would like. i think that's what we're pointing out to clients. this is the type of market where investors should be taking profits, stepping back, but it's this kind of bullish enthusiasm that investors tend to go all in. >> except we're not seeing that in terms of fund flows.

>> yes, but look at the stock market, look how high it is. >> i mean, to carl's point about volume, there's no volume. >> yeah. yeah. and that is also another warning signal, because you're not going up in a bullish trend channel. >> it's a warning signal, but it's not indicative of what you're saying, which is that we're at a point of maximum exuberance. >> well, part of the problem is the credit issue here. 49% of america is pour, and they just had their discretionary income wiped out by gasoline rallying. so, yeah, the investors like the stock market up here, but if you dig a little deeper, there is -- it's a shaky situation, and so we're advising caution that this is -- this is the market where

it's your -- your gut feel to say, okay, i'm all in, i like what i see. but when you look at 68% bulls, you look at bearish momentum, you look at a bearish rising wedge, it's like, wait a minute, maybe i should be lightening up here. >> walter, thanks for your time. >> thank you. before we head to break, let's take a quick check on shares of apple. it was right near that 600 mark. as you see down, ever so slightly this morning. march madness, linsanity, mike d'antoni, yes, we're talking sports, but from the fans' side and perspective. and the president of stubhub, and we'll talk mobile ticketing and more. stick around. we're back in two. 3q we always hear about jobs leaving america. here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline

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in stocks to watch on this thursday, about 45 minutes into trading, tyson food getting setting stage for a possibleup grate. capital one announcing a 1.25 billion common stock offering, the proceedings to be used to fund the previous acquisition of the credit card business. and p.f. changs upgraded.

just about two hours under march mads in. dan rovell is here. >> let me take you through some of these numbers. $3.99, that's the cost of march madness on demand app. if you want all four games at the same time and you do not authentica authenticate, which is basically saying you have that capable at home, you have to pay $3.99 this year. that's the first time they're doing that. the number of nike-sponsored teams, just 48, that's looking at the jerseys. there's 52 teams that ware nike shoes. taking a look at nike, underarmour as well also has four teams now. they had five, but now they have four teams in the tournament. adidas has ten teams.

berkshire hathaway is warren buffett in 2006 acquired russell athletic, bakley a failure of a purchase, but they have five teams in a tournament as well. $10,000, another number, that's the donation required for the right to purchase two tickets if you're a missouri fan and you want to sit with the tigers fans. and $50,000, that's the amount a bettor would win off a $5 wager for colorado state playing murray state today to win the championship game. odds were 9,999:1 three weeks ago at the las vegas hotel. 680 million, that's the amount that cbs and turner are paying for tournament rights this year. the average is actually $777 million. it's a 14-year $10.8 billion deal, and of course the players get zippo. david, back to you. >> well, that's an important

point, isn't it, darren? zippo, as always. i don't know. watching this tournament, you think given all the attention that's been played lately to amateurism will think about things differently? >> i don't think so. having listened to mark emert, the ncaa president, i don't think they're going to try to do anything. the only way this will be solved and players will get something, and they'll be more than opportunity athletes is a successful lawsuit. that's it. >> yeah. well, that's a story that bears watching and reporting on. darren rovell, thank you. stubhub is the world's largest ticket marketplace. that's owned, by the way, by ebay. the president joins us from across the pond, where he's getting ready to launch operations in the uk. why the uk? why are you launching there? >> well, the uk is a great and vibrant market for fans,

especially music and sports fans. we think it's a great market for us to be our first market outside of north america. >> you already have some competitors there, wasn't one cofounders actually set up shop in the uk? >> that's correct. we have a few competitors out here, but all -- sort of the three competitors that started as a copy and paste of stubhub, if you combine all three, they sell fewers tickets than ebay does. >> you just heard from darren, of course, giving us a number of different stats. is this the busiest time of year for stub does that hub? how big a role do these games play in terms of your sales? >> we, march madness is a great time to find tickets to the college basketball championship, but not our busiest time. our busiest time is actually in october when you have the nfl going, baseball playoffs and

still concerts going. we have a weird cycle where our bus just time is in october. for the rest of e-commerce, it's in december. >> and where are we in terms of ticket prices these days for things like march madness. do you extraic that? >> you know, it's harder to track things like march madness overall. we'll look at the final four when that happens, about you when we look at things like the super bowl, the average price was about $3,000 a ticket, last year was there $3,500. we sold more tickets this year than last year and year over year we continue to sell more. we're not only the biggest, but the best in terms of customer satisfaction. >> it's all about volume, i've got to believe that's much more important? >> yes, for us that is. we're providing a service to a larger number of fans. we hope to take that model that we have applied in the u.s. and

bring it here to the uk, apply the better lefl of customer service, better level of customer satisfaction, as a way to compete against the competitors. >> you have all we're watch words in there. i hope you're a soccer fan, chris. >> yeah, absolutely. >> i'm glad to hear it. >> thank you very muchisms you're very welcome. it's a pressure metal meltdown, breaking through some key technical levels. we're checking the charts, and we'll talk about the gold slaughter, which is trying to repair itself today. back in a minute. [ male announ] to the 5:00 a.m. scholar.

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♪ when your chain of supplyt goes from here to shanghai,. that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, that's logistics. ♪

♪ keep me searchin' for a heart of gold ♪ ♪ and i'm gettin' old i'm julia boorstin in los angeles with breaking news on scholastic. the children's book publisher's stock soaring to a nine-year high. scholastic shares higher on the news that its earnings and outlook are improved, thanks in large part for "the hunger games" the popular book trilogy. sales have spiked ahead of the movie that's opening next week. scholastic also publishing the harry potter book series here in the united states. >> a echad of a move. thank you very much, julia. meantime, gold futures trading up about six bucks this morning. the precious metal has been falling in the aftermath of the fed meeting. for more, let's bring in dan

fitzpatrick, joining us from irvine, california. good morning. >> nice to see you, carl. >> we're going to test 14.80? >> that's wh 1480? >> i think so. volume really picked up. we have some overhead resistance, i would say around 1620 to 1640, but the short-term trend is clearly down, so that's the level of support i see. it's the first real logical buy point. >> you're looking back to 2008, when you say we saw a similar correction, 28% down in seven months. after that, we ramped back up 150%. >> right, yes. also, during that correction shun on a fibonacci basis, 61.8 correction. that's a pretty big correction. gold trades -- it's pretty

volatile, but the overall trend is up, but when you get a correction, what you have is a real flight out of the gold, out of the precious metals into something else, but ultimately i think this trend reasserts itself. it's just going to take a while. you look at the way the market is, gold is trading inversely to the s&p, which is different, and i think there's a big reason for that. that is just equities are really attractive relative to pressure metals. we always talk about gold as a hedge against inflation, but we hear about stocks are even better, in some cases an ebetter hedge. >> you think about it, that's what we want, we want our dollars to buy more. if you have more dollars and they haven't been printed by the fed, but rather you have actually earned that money, you have a better hedge. we have a very, very benign fed, which is so why i think equities are really cheap. you get no yield in bonds. gold doesn't yield anything,

except a lot of weight. so really equities are the place to be right now. that is at the expense of gold. >> yeah, do you think this was brought on by the fed or was there something else at work? >> you mean as far as this recent downturn? >> the beginning of the correction, yeah. >> no, i don't think so. really we had a real climb max top in september of last year. there were 2 out of three days where there were big distribution days. if you just look at a chart, you see gold had been trickling around and all of a sudden it went parabolic. those moves tend to end badly. once you got the last big undisciplined buyer into gold, that's the lowest common denominator. it had nowhere else to go but down. it was more of a technical event as opposed to a news event. ijts i had heard commentary earlier in the week despite the fed related sell-off, were those

what were broken yesterday? >> yeah. those were what were broken yesterday, but if you compare gold to the 200-day moving average, you'll see that it does oscillate around quite a bit. so i'm not looking at this as a imagine correction or a major trend break even, i think the 200-day moving average is still generally holding, but you're just seeing this oscillation around this. what's going to be probably more telling for gold is if we do get that test, we do get that test of 1480, that's quite a ways below the 200-day moving average, then you want to see what happens when gold returns. >> dan, thanks so much. >> thanks a lot for having me. >> dan fitzpatrick. when we come back, breaking news, and we'll bring it back to the banks. is there still more room to run? we have the trade amid the financials as we listen to some blues traveler. back in a moment. spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line.

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welcome back. there's breaking news from the a pop here in natural gas futures after the number has come out here, down 64 bcf, the decline includes -- and that is out of range of estimates -- or within the range of estimates, but a little bit greater withdrawal than what many were expecting the general consensus was for withdrawal between 56 and 60, although the wider range was anywhere from 45 to 73.

keep in mind this withdraw is still a lot lighter than what we normally see for this time of year, the five-year average around a decline, and we're still at record levels in terms of storage for this time of year. barclays capital says we will probably enter the storage injection season with about 50% more storage than we normally have. so we're looking at really high supplies, but carl, a slight pop here in natural gas futures on a slightly bullish number. david, over to you. thanks very much, sharon. here are some of the stories we're swabbing about. that stock soaring more than 50%. allison transmission holdings, however, hovering around its ipo price. that company makes automatic

transmission. the philly fed business index rising more than two points to 12.5, and when it comes to interest rates, by the way, freddie mac says the average rate did tick a bit higher over the last we're. it's now 3.92%. meanwhile, a look at markets. we were wondering if the dow could make it straight, nasdaq is up almost ten, s&p hovering, but david has seen treasuries try to some of the sell-off. advancer and decliners, we'll keep an eye on what the mortgage rates do today, and of course in europe today, too. breadth over at the nasdaq as well. >> and as we are about one hour in, let's head to chicago for more on the market's latest moves.

holly, what about this move up in rates. what do you think of it? and what is the impact? >> well, on the very short term, it's pretty significant. earlier this week we were below 2%, then we hit 235. what's interesting is everybody talks about how many consecutive days. today we are now continues to move higher. we vend seen a seventh consecutive day, so i would say the move has been pretty good. a move of 35 base points is pretty extreme. you'll probably still head higher, but in the short term, you even pointed out a 35-base move, but we don't seem to be in a position to do the seventh day, do we? >> no, i would great form the odds of that are very slim in

the longer term, you still have stronger than expected data, you know, previously the words we all talked about were greece, qe p, now we're all talking about recovery, we're talking about inflation, i mean, inflation is starting to peck late again in the nomenclature, so i would say given that you could easily retraces which would take you about for 247 in ten-year, so there's still room in the up side. short term you'll probably try stabilizing a bit. >> holly list, thank you. banks leading the market rally this morning following jpmorgan's dividend hike, and financials as a whole, up about 18%, just slightly behind tech. our own jim cramer is striking a bullish tone on the banks yesterday. >> i think they're back. i think the banks are back. >> todd hagerman, managing director over an stern agee joins us on post 8.

>> you know there were a number of clear-cut winners across the board, not too surprising, but i think what stands out was the magnitude and the differential between the winners relative to the losers, but if you look across the board, quite frankly, particularly among the regionals, a number of differences across the board with some of the individual companies, really left investors quite confused and perplexed in terms of what truly was the methodology that the fed deployed in the results, quite frankly. >> in terms of confusion, though, we come back to this a lot, are we in new eras for the banks, real p.e.s, given the capital they clearly are going to have to hold as a result of

not just the stress test, but basel 3. >> absolutely. i think what you're clearly seeing, again if you extrapolate from the stress test results themselves, particularly among the large-cap banks, what you're seeing is a group of companies that are generating a tremendous amount of excess capital. they're already in a very depressed environment, returning roughly mid teens on tangible common equity, this is pretty healthy, pretty heroic, quite frankly, and it's my opinion, i think, as we go forward and the recovery continues to game some momentum, it's not unreasonable to think these guys can't earn high teens, potentially getting back to where they were 5, 10 years ago. >> really? without taking on the kind of leverage they did back then?

>> the big differential we're seeing right now is a number of these companies have made significant moves in terms of adding a tremendous amount of scale within the business model. we've had a tremendous amount of dislocation within the sector itself, and the banks right now, they're enjoying tremendous margins across several of these businesses, which is certainly something i think you'll continue to see over at least the near to intermediate term, and, you know, it's really the biggest guys, most scale, and really the most levered to an improving economy that i think can get back, at least very close to where they were several years ago. >> but you're still looking -- regionals are still your sweet spot? >> the the sweet spot right now. if you think about it, you're potentially past the inflection point, perhaps on a lot of regulatory reform, we're past the inflection point perhaps on some of the legacy mortgage issues, and perhaps we're

getting closer to a more favorable rate environment than where we were, say, a year ago. all those stack um quite favorably particularly among some of the larger regionals, a little more diversified, but very levered to an improving economy. >> a heck of a week for that sector. thanks for your type, todd. >> absolutely. good to see you. >> thank you. gregg smith, formerly of goldman sachs, making his exit known yesterday after a scathing op-ed in "new york times," this time after several other big-name departures as of late. the muppet moment taking media by storm. >> i may not agree with this guy, but i have to salute his principles. once he found out that goldman had a culture of greed, he left immediately after 12 years at the firm. >> so in an industry known to protect its own, what is pushing goldman's former employees to the brink? we're going to take a look behind the scenes of blankfein's

real dilemma, next. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

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♪ hit the road jack ♪ and don't you come back no more ♪ some stocks to watch. advanced microshares. union pacific upgraded over at barclays. and discover financial initiated a buy at argus with a $40 price target. in honor of gregg smith's now imfame otherwise op-said piece, the top four best quitting scenes if you will from

the hollywood front. number four from "brit jones' did i ri." two weeks notice, and number one, which we did yesterday, jerry mag mcgwire. >> he's all alone. he does have the goldfish. >> teamwork, its performance and well, yeah, incredible financial performance was tainted yesterday by an op-ed piece, here is stephen colbert's take on how it all went down. >> the banker-dict arnold, because he once said goldman

sachs is doing god's work. and it is. he just said god, he didn't say which god. maybe it was shiva, the god of destruction. blankfein will never live that down, even if it was meant sarcastically. is the management criticism fair our undue? what's happening over inside the suite. >> jeff sonnen feld is at the yale school of management, and jeff, in all seriousness, if i'm a board member, i can't imagine it's the first time i've encountered questions about whether the firm has the clients's best interests at heart. do i look again? start asking questions again or not? >> david, thanks, it's great to join us on this discussion. you find in just the established

media there are about 2,000 articles in this. you wonder what's left to be said. following jerry maguire, or the muppets, is tough. it might be one of the few times we agree. there's a nuanced take on this, on the one hand, a lot of the commentary is well placed critiques of this guy who obviously is hardly a whistleblower. he's run out, enjoyed a dozen years of wealth. ubz but the other side, of course, is you're right, none other than our friend they have made criticisms that echo the criticisms two weeks ago in the delaware chancery court. and in the senate last year, and

you wonder what's new here? so what? there's gambling in las vegas. what's new here is that the board has to pay attention. >> that was my question. jeff,r, you're an expert on manage, and agreed, there's not a lot new here. let's all assume that. i've talked to many clients, as i'm sure you have, off the record that so fully admit these things. not crimes, but goldman is out for goldman. does the board -- >> it's whistling past the graveyard. for them -- or that they're still an employer of choice, they definitely are a very popular place to work. >> yes. >> however, we're on, you notice, precious time here, thin ice the thomas moore in "man for all seasons" talked about the importance of institutional trust, once you separate the adviser, before he got beheaded, once you separate the fingers,

it's forever gone. there are critical lessons that could have been learned here, whether it's going back to the tylenol situation, how jim burk rebuilt a brand by embracing critics, and bringing competition into the -- a lot of opportunities for goldman and for the leadership are gone to restore the brand, but there are things the board can do, by at least showing if exoneration or contrition, you can't have it both ways. you can't straddle here. >> what would that look like, jeff? what would they do? talk about concrete stepped they could do. >> carl, concretely what they need to do is the old aforism that denial is more than a river, they have to acknowledge the problem. they can't say that losing almost $2.25 billion on one article written by a disgruntled employee is something to ignore or people such as paul volcker

or major investors are agreeing with michael moore in critiques of the company. next they have to try to figure out how can they get past, you know -- they have to live the brand. all over their website, you find these things about customer is number one, we stand for integri integrity. it's like bp saying we're not just petroleum. >> it's very hard to do that, jeff, when this is a trading culture, different than pure investment banks. it's changed over the course of the last decade. this is not gus levy's goldman sachs, and when you're a trading culture, it's just different. he said it himself, blankfein, they view people at counterparties, not clients. >> don't make the claims, then. i heard there's very large china clients that are no longer interested in doing business with goldman if they can work with some other competitors. they work about some of the

trust factors. mckenzie can still hold on to this. obviously j & j have taken their hits, but bp paid dearly for this, and goldman shouldn't advertise this is who they are if they can't live by it. if they say they're no better than the competition, then don't say you are. but they can also get out there and show concern for where the weaknesses are. there was a very good commission that came together last summer to try to repair some of the damages, ways that whistle-blowers -- and obviously this guy is no whistle-blower, but people with issuing can raise them up with senior management. information is fed back, there are concrete steps they can do. and also internally show employees that they really care about this. >> yeah, jeff, we've got to leave it there. they do have the 14 principles. they can real and follow them. jeff sonnen feld, thank you.

and for one more time, for good measure, a check on the shares of apple, we're -- apple. 593. we entered before 600. gave back a little bit of selling. we'll see where it bows later today. strong ahead, does the housing recovery have legs? we'll take the pulse of the industry with the president of prudential. first, rick santelli is working from chicago. what is coming up? >> we're going to have a good one. what is a going on with interest rates? saudi supply. is it much different from ours? and another nat gas bill is in the garbage. and we have a guest that knows about nat gas conversion.

catch it at the bottom of the hour. top of the hour, be there for the santelli exchange. ♪ ♪ [ male announcer ] offering four distinct driving modes and lexus' dynamic handling, the next generation of lexus will not be contained. the all-new 2013 lexus gs. there's no going back. ♪

the latest economic data points toward a recovery. can the same be said for the

housing market? the short an is yes if you ask our next guest. prudential real estate releasing a new survey. saying americans are more optimistic about home ownership than they were a year ago. good to see you, earl. >> good morning. >> we all wonder about whether americans' views on home ownership have changed. 95% is a good number. >> absolutely. if we go back, the last couple of years, clearly a lot of information out there that maybe the american dream of home ownership might have been destr destroyed. i think the survey proves that is not true. >> the question is, whether or not they could get a house to appreciate over i'm, whether or not it's a good investment.

63%, despite the market volatility. that's up 11 points from last year. >> absolutely. i think, unfortunately, home consumers are affected by the economic news. as the economy gets better, people are more confident about the job prospects, they look to have more perm nancy in their lives. they look at the housing market. i travel around, i'm hearing from the affiliates that the business sup. there's a lot more activity in their offices. we're going back to multiple offers in some offices. >> case shiler doesn't match that up. you're assuming improvements later this rear? >> we clearly see prices starting to move. i live in phoenix, arizona, probably one of the areas most

hit by the foreclosure and the downturn in the housing market. in the case shiller report, phoenix is a market starting to move. >> thanks for your time, earl. good numbers to watch. tweet time. former goldman employee greg smith heating up the wire with his much-hyped "new york times" op ed. he talked about how he was a rhodes scholar finalist. since he's looking for a job, we're asking you, to whom should he submit his resume and why? tweet us your answers. "and i got a one-hundred dollar cash bonus for rolling over by april 16th." "i like bonuses." "plus at scottrade, there are thousands of commission-free investments." "and if i need help, i can find it online, by phone or at one of over five-hundred scottrade locations."

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time now for "squawk on the tweet" for this thursday. egg from smith, author of the op ed in "the times." he was a rhodes scholarship finalist. and a good ping-pong player. where should he submit a resume and why? ments i thought he just submitted one to the new york times. kathleen says, the sec needs

greg smith. let's get to the 11, the third hour of "squawk on the streets" starts right now. welcome to hour three of "squawk on the street." here's what's happening so far. >> they're scareded about taxes, insurance, regulations. and so, anybody that is sitting out there expecting the economy to take off over the next two or three months, i think is just misses it. >> i think things look good. bank lending to business is really good. it's pushing the economy forward. >> survey says, producer prices headline up 0.4 of a percent. maybe 0.1 lighter. jobless claims down. from 3650351,000.

front page today, lead of "nightly" last night, "today" show today. >> i want to do an e-mail search, a forensic search of everybody that used the word "muppet." their names will be on the front page. >> because one employee of 30,000 has a gripe? breaking news this morning. apple has hit $600 a share. >> it's not just apple doing great. the other guys they just don't have the horses. >> more fans are buying tickets from us. we're providing a service to a larger number of fans. we hope to take the model we used in the u.s. and bring it to the uk. good morning. the dow look to extend the winning streak to seven days right now. the dow up only at three points right now.

s & p up almost three. beware the ides of march, they say. apple stock crossing the $600 mark at the open. shares have backed off. and estee lauder sitting pretty. let's get to the road map today. delays, bad food, the annoying passenger next to you. a new report from the airlines industry. then, gas prices as black swan. we prepare an investing plan of action for you to keep your portfolio from getting gored. and a first-hand live demo of the ipad. and welcome to miami again. condo developers returning for more sunshine. are they just asking to get burned a second time. rick santelli, a lot of

exte extra numbers to watch. i love watching interest rates. as far as treasury rates, yes, we have seen them spike, rather large. here we sit at 227.10. what you're looking at the bounce from march '09 in stocks or interest rates, not only is it the fundamentals we like to talk about, it's the logistics, the technicals as the markets try to normalize. you coil that market from november to several days ago. think high-frequency trade. it's ridden in momentum. i think we're better off if the rates go up. they do it in rangs. we're trying to defend the top of the range.

i heard mr. schumer. he's got a quandary. we spend so much time talking about saudi supply. my favorite topic is, you saw the garbage bags. the pickens bill or what was voted down yesterday, it had 50 votes, it needed 60. the nat gas act as it fit into the transportation bill. nobody is more enamored with the natural gas act than i am. we don't need to make credit. i think mr. pickens is a visionary. on this one, i disagree. let the private sector price it. let the demand come from the private sector in terms to want it. don't throw tax dollars into it necessarily. you don't need to.

we'll have a great guest in a few minutes. the president of cng gas will be here. carl, back to you. >> a lot of people might counter by saying that some big innovations we enjoy today would have never gotten off the ground without some kind of external help. you disagree? >> i do on this one. the space program, great technology transzisers. it was not specifically targeted. i think it increases the corruption to those that want to keep the current fossil fuel and crowd out stuff like natural gas. my guest today has a strong opinion. >> we'll look forward to hearing it. we'll talk to you in a few minutes. the dow looking to extend the six-day winning streak. the s&p is doing well.

where do we go from here and how do you get in? our guest, bill from pnc. >> thanks for having me. >> the pace we have already been running at this year is what you want to talk about? >> yes. i think if you annualize out where we're at this year, we're running at a 65% pace. it's easy to say we're not likely to keep up that pace. that's part of my thinking on what is interesting at the moment. >> meaning we have been running hot. that doesn't mean you're negative on stocks. >> what was talked about a little earlier, bonds have been treacherous at the moment from treasuries running below 2% to 2.25%. we have been hoping or expecting that for awhile. we think it's reflecting finally some better views around the economy. where would you rather be? having a piece of that economy,

so benefiting from when things are getting better. >> that leads you to something we've been talking about. when times are bad and good and that is def depd-focused stocks. >> they did phenomenally well last year. about 10% better. they have lagged significantly by our measure this is year by about 7% as the market's taken off. i would point there and say, maybe it's time to go back and look at those. we have been spripting pretty fast at the annualized rate. this could be the spot for other tunes. >> some pay a richer dividend than some. get into some of those given some of the very nascent signs of real estate housing, commercial? >> i think so.

certain parts of reeds are doing phenomenally well right now. the ones that benefit from some of the problems we have right now. think of apartments and storage. people can't get financing for a house, they go to apartments. you're seeing signs of life in office properties. those things. industrial properties. you continue to see better economic data. that's where we think you'll have the handoff eventually. there's legs to the reeds on top of getting a nice income stream. >> we know mom and pop are not in the rally the way they could have been or perhaps should have been, does it limit the downside? >> i like to think so. i particularly think maybe more -- certainly it limits some of the downside. we have seen some of the downside when they weren't

involved. i hope what helps to limit the skroun side is less of the worries of the complete collapse of the global economy. that can come back in terms of worries. i think you're right in terms of long term. if not even rybody is in and th have money of the sideline, there's room for error. >> you can't ignore gas prices. what do you do around that? >> i like to say it's different this time, i rarely say that. when you think back to when oil prices were staggering before. they sold off. now you have employment going up. natural gas price are important, too. last time oil prices were up, natural gas prices were as well. it's a big part of outlays for u.s. consumers. it matter. there's reasons to be more hopeful here. >> bill, good stuff.

good to talk to you again. bill stone at pnc. when we come back, new numbers on how the airlines are treating you. and we have gordon bethune when we come back. we're back in two minutes. used to be we socked money away and expected it to grow. then the world changed... and the common sense of retirement planning became anything but common. fortunately, td ameritrade's investment consultants can help you build a plan that fits your life. take control by opening a new account or rolling over an old 401(k) today, and we'll throw in up to $600. how's that for common sense?

♪ i want to get away the dow might be hovering

awfully close in the flat line. look at bank of america. today, for the first time in a long time, has a nine handle. up almost 3%. that is above the 50-day moving average after the stress test left it considered more one of the winners than the losers. time for "squawk on the beat." who has the most delays of the airlines and ho is most likely to lose your bags? phil lebeau is live in chicago. >> we're looking at january numbers. a bit of a delay before they're released. in january, about 83% of the nights arrived on time. the top three airlineses, there row visit, hawaiian, no surprise. followed by airtran and southwest. who did the worst this terms of arriving on time to the destinations? frontier, followed by alaska,

followed by expressjet. finally, the one statistic a lot of people like to focus on. the percentage of bags mishandled by the airlines in january. 3.3 per 1,000 passengers. that is an improvement from january of 2011 as well as from december. keep this in mind, you're noticing fewer people with checking bags. there's fewer opportunities for the airlines to mishandle your bags. it's good news, but obviously, a reflection of the fact that fewer people are checking bags. and no three-hour-plus tarmac delays. it's a reflection on the great weather of the last couple of months. >> people underestimate what a huge factor weather is. a busy week for the sector. southwest saying they're not going make a profit. united taking out capacity. is it a given that fares will increase? >> yes. we're seeing resistance.

southwest said listen, the fare increases going through, we had ten last year, a couple this year, there's being resistance from the passengers. they're more reluctant to book as you increase the tefares. not to be unexpected. >> thanks, phil. our next guest, gordon bethune. good morning, to you. >> good to see you. >> i imagine that's a dream quarter for anyone operating an airline. >> absolutely. a mild winter showed in the operations. passengers are generally happy. i was. >> how about fuel prices then and the degree to which you can price these increases in? how worried should shareholders of airlines be? >> you know, there's a lot of

elasticity in the pricing. when oil goes north of 100, you'll see increased pricing quickly. the elasticity of the trip may not be all that necessary. there will be reduction in capacity as passengers fly less because of the higher prices. >> over the past year, the industry has weeded out the multiple speculators or attempts of others to take share by price discounts? >> well, you were only as good as your competitors. you had to match prices that caused a lot of people to lose a lot of money. those people arely gone now. an sfri with consolidation is more stable with rational people running the airlines. they can cover the costs. think that's generally good. it's good for labor, because they have a steady job and it's good for customers to have a

steady source of transportation. >> phil walked us through on-time arrival, baggage. if your experience if a carrier does well or poorly on those number, does it translate into better or worse pookings in month following? >> i don't think so. on long-term, one, good labor relations manifest into good customer satisfaction. there are perennial bottom feeders with those numbers. you stay there for too long a time, everybody knows it. you'll get people avoiding you. >> one example of poor customer satisfaction is american. we know where that led them. >> the perennial good guys, southwest, good customer satisfaction.

people like coming to work and they act like it. >> you ran continue nep tall. we have been watching united and continental trying to merge the reservation systems over the past couple of weeks. it resulted in some delays. are you convinced that marriage will work? >> yes, that strategically was a great fit. i thought it was almost a miraculous marriage of the i.t. departments. they're well on their way. they have hurdles to achieve and a cultural mix to blend this together. it will work. they have the right leadership. >> they're going to be put to the test in the summer travel season. thanks, gordon. >> thank, carl. when we come back, higher dpas prices taking a toll on the airlines. don't let it take a toll on your portfol

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♪ ol on down to midnight roll on downtown until it's live ♪ ♪ because toerm we may die the short sellers still on the prowl. with gas prices surging, will the pain at the pump be a black swan for your portfolio. will, good to have you here. fresh numbers today from aaa. $3 .82 is the new average around the country. it's happening slowly. makes you wonder if the shorts are taking aggressive action because it's so incremental. >> we were discussing is it going to get factors in, the trouble with libya and syria?

you look at the stocks with low margins. how can they pass? will consumers want to pay more for daily groceries? there's no massive flight to a certain stock. the airlines, i suppose. the poor airlines. already difficulties with the airbus being late and boeing. it could be them. >> let's focus on the retailers. you're talking about food retailers. fresh market, supervalu, safeway. >> it might be a boon to those people already short, supervalu close to its debt kcovenants breaking. >> i think one fast nafascinati

look is autoparts. am i going repair my car or buy a more fuel-efficient car? >> when will the american car driver switch to a more fuel-efficient car? yeah. the magnas. will you patch up the gas guz ler? >> we were talking yesterday, i drove a volt for the first time, as part of another shoot i was on. seems like a nice car. dana holding up 6% since the beginning of the year. is that significant? >> movement wise, pu itbut it'sa standout. the prices are performing okay. people can't afford to buy new cars, so they'll patch it up.

>> gamestop is always, if it's not the number one, it's often close to it. any change? >> it remains the structural sort of like people are going to be using the cloud for their games. it hasn't changed much. 40% of the shares short, that's massive. i would be worried about being short gamestop. >> harley with decrept commentary this week, looking at consumers' willingness to advan advance. >> people have long since given up shorting harley. does the buyer care about the price of gasoline or are they more macho? the better the louder it is. not the kinds of people probably worrying about the fuel price. >> finally, you talked about airlines. how to you separate between the regionals and majors?

>> and then emerging markets. the king fisher airlines in india going bust. you're establishing a new airline. you might be leaner. the majors have sophisticated fuel hedging. they've been through it before. it's the smaller players and the emerging markets airlines. we won't fly less or we'll buy less on the plane. if you're in india, you might say, i'm not taking the flight. >> great stuff, will. will duff gordon joining us. china's hard landing. are we witnessing it as we speak? back in just a moment.

♪ check on the markets today, about two hours into trading. the dow flirting with the flat line a lot. overall, a narrow range. can hay put together seven consecutive days on the upside? the nasdaq is about 350, up about nine point. stories we're watching, weekly unemployment claimed

dropped to a seasonally adjusted 351. cisco saying they'll buy nds group for $5 billion in cash. and a new milestone for big blue. ibm trading at all-time highs. let's bring in bob pisani. i'm sure he's watching big blue. >> we have another hour to do in europe. it's a mixed day over there. germany at the highest level since august. a great week for german stocks. the confidence numbers were high. we're all thing closing right now another hour, close to highs in august. uk is kind of mixed. speaking of the uk, british prime minister david cameron is going to be here in about an hour and a half. he's having a private meeting with george soros. we don't know what is going on there. he won't be made available to any of us. come down on the floor, mr.

prime minister. say hi, shake hands. we would love to meet you. >> interesting comments on oil in the that's 24 hours and a few other things. >> i imagine they'll be talking about europe, the regulations, the environment in europe. here in the united states, let's call it a status quo day. the ten-kroer yield we have been so concerned with at 2.27%. kind of holding steady. that's the big story. the dollar is kind of steady today. gold only up fractionally. the big backup in yields has sort of stopped today. elsewhere, same situation. the dollar, a little bit to the down side. that will help materials a little bit. about 30 stocks in the materials

sector. energy on the downside. you want to look at small percentage moves here. that's the key story. not such small percentage moves. what is going on in the cloud computing stocks. redema remember demandwear priced after 16. above the initial price of $16. all of the big cloud computing stocks are up. the important story here, carl, is revenue is still the most important things. earnings for guide wire, as a public company, were down. but the revenue jump was a lot bigger than expected. all the stocks had nice boosts

in the last couple of days. it's still revenues. >> plow it back into the company. the companies that haven't gone public in a lot of cases have been bought by an oracle or the likes of someone like that. >> they have to convince the companies that the data is safe with them in the cloud. i have talked to them. they're argument has been that the data is safer with us than on your home computer. your software to protect your home computer is not as good whatz we have to the cloud. >> let us know if you get cameron. >> i will. i'm waiting. let's go to rick santelli in chicago. touched on nat gas earlier. good morning, rick. >> good morning. i would like to welcome a special guest. craig wright, the president of cng interstate out of oklahoma

city. welcome, craig. >> good to be here. >> tell the audience a history of what your company does, what they manufacture, how long you have been in business, what your vision of natural gas is for the future of transportation? >> you bet. first of all, natural gas is america. it's pure america. i started five years ago with a vision to be able to bring jobs to the marketplace. when we know that the government has been choking those off. it's exciting that it opens up so many channels of industry from manufacturing to all these things. i currently convert primarily pickup trucks. but we do suvs, cars, for consumers and small fleets. >> now how does the government inform of epa, who has a very small group of those that install or manufacture that are certified. can you explain is that a good thing, a bad thing? do you see it changing, does it

make your business better or worse? >> it's a mixed thing. basically, this are very few epa shops that do these certifications on vehicles. the reason why is it's expensive, very clostly. it really follows under the same guidance that oems are retired. ford, chevy, gm have to follow the same guidance. the conversion people that want this to happen are small business. that limits the resours. there's low volumes. it can protect the public but it's hurting at the same time. it limits the availability for this to hit main street. >> i have a friend trying to open up a small business making cook wes. he wanted to do it in his house. the amount of red tape and keeping the people from bying $400,000 oafing is hole him up.

yesterday, the pickens rule. most people think that's a bad thing. you and i don't necessarily agree. can you expand on that? >> absolutely not. it's frustrating. natural gas is so much lower cost than fuel. to have the fwochgovernment in e incentivize this, it's bad. we know that the crisis in america stems from oil. we import too much of it. we're too dependent on it. i don't think americans are dependent on it. washington, d.c., is dependent on it. it's time for americans to stand up and find out more about this. it's -- we're running out of time. we all agree. >> we're running out of time on this segment. i'm going to have you back. or i'm going to go out there.

viewers, you would be very impressed. i could probably hold everything you need to change your engine over to natural gas, i could probably hold in my hands. throw up a chart of crude intraday. britain, speaking of david cameron, has decided to work with the u.s. in a by lateral agreement to release strategic oil stocks. crude is down almost $1, $104.57. watching energy closely and how it ties to china. kelly evans is on the set. the ft is all about that. >> everyone is so focused on the u.s. and europe, we have new data from china. the message is that china, while

we can rely on growth, it looks great from a developed world point of view, is slowing. people are saying that the slowing may be of the hard, not soft variety. i think it's too soon to make that call. you're talking about a slowdown that is a lot slower than production going to a double-digit growth rate. if you look at the shanghai selloff. he's trying to head off a u.s.-style property market rate. it may be too late. >> trade deficit numbers up. foreign and direct foreign investment down to menment downa row. >> the investment by europe into

china dropped by a third. it's an export-led economy still. europe is doing with it being so weak, you're showing this across the board. >> let's pivot to oil. news breaking from roui reuters perhaps there will be a change. >> not a lot and not for long. the last time the u.s. did this, after the last runup on oil prices. it came out after the fact then. what happens is at least that time, we saw oil prices starting to come down when president obama said they were going to unleash some reserves. it pushed down prices for a little while. it's never a swing factor. >> california, r-bob gasoline, the highest gas in the nigs right now is in los angeles,

$4.30 and change. wholesale gasoline prices stopped going up earlier in the week. that led some energy bears to say talking about $5 a gallon zbas ridiculous. >> it's interesting. looking at the headlines and the way the market is reacting. if you're the u.s. or the uk, do you say, we have gotten. the reaction we want, maybe we don't need to do this or do they follow through with it remains to be seen. >> we'll keep an eye on it. i want to touch on treasuries with you. yesterday, we talked about the selloff. trying to repair some of that damage today. hopping above two. is damage done? or can we retrench? >> we're still in a period, an overarching period where rates are low. if you can trade in the rangs

where you can pick up 30 basis points, think that's great. a lot of talk about how this is the end of the 30-year bull run may be premature. >> they've made that call before. finally, before we let you go, if something dramatic comes down with oil, we fall back to double difficul difficu digits, would you see a change right away? >> you would see it in sentiment. as we have seen lately, the increases in crude oil not feeding through immediately to a big setback in sales. i think you get a little bit of relief. maybe it would take longer to feed through in spendinging patterns. >> it would be big headlines. zblchlg for more on that, let's go

to sharon epperson. >> the effect on prices immediately and dramatically. we're going to have more oil coming on the market. we saw crude futures here at the nymex drop more than $2. from the 105 level to 104. this is an expiration day for a contract. a drop of more than there are 3 or $4 from the $1125 level to t 120. with gasoline price ace proeching the $4 level nationally, obama had to do something. here's what we're seeing. we'll see how quickly that translates to lower prices at the pump. >> sharon, thank you for that. when we come back, the new ipad goes on sale tomorrow. before you stand in line, we're

giving you a look at the new gadget. our jon fortt has it. >> i got it a day early. i can tell you what it means for apple and it competitors coming up. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. you know, those farmers, those foragers, those fishermen.... for me, it's really about building this extraordinary community. american express is passionate about the same thing. they're one of those partners that i would really rely on whether it's finding new customers,

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next up on the halftime report rkts john taylor, founder of one of the worl's largest currency hedge funds gives his views. plus, cisco's deal, will the focus on video pay off? an one or our analysts dears to short apple. crazy? we're watching energy. crude oil, back to $104.39. off more than a dollar on reports from roiters that britain in response to a formal request from the united states, has decided to release strategic oil stocks. this is according to three british sources. what is obviously a u.s. election year. john hoffmeister joins us on the

phone. when these kinds of reports surface, how often are they right? >> well, i think, you know, skrenly, they're right temporarily. but, you know, releasing strategic reserves is not a solution. it's a temporary stop gap. it doesn't affect the underlying supply and demand issue. as long as we don't have a strategy that deals with the underlying supply-demand relationship, we're going to be vulnerable to whatever politicians want to try next. when the economy, when co consumers, when companies are depd depending on a stable price, it's doing more damage than

good. it doesn't address the fundamental problem. >> i have talked to you enough to know how you would receive this news. i know you would not be happy. you're more interested in long-term solutions. help us understand, for those who need to know on a shorter time basis, how this could move crude. would this take your prediction of $5 a gallon gasoline off the table? >> no. last summer, when there was a previous release of crude oil, coordinated among a number of countries at the time of the libyan cutoff, if you recall, the effect of the strategic petroleum reserve on the market lasted three days. three days after the announcement, the oil price was right back where it had been before the announcement. it doesn't really impact. there's a lot of psychology in

oil price setting. the psychology of a sudden gusher of oil without dealing with the underlying problem wears off very quickly. it will not affect retail prices any time soon. it's intended, i think, to make it look like somebody is doing somebody about the underlying problem when they're not. >> you think it would be days, not weeks. >> that's correct. >> you would see no material impact on retail gas prices in this country? >> exactly. they're set on the trading of gasoline or geezdiesel. there are other things impacting that, not the least of which is the closing of the refineries on the east coast.

the tightening of supply continues a pace. >> are you seeing any evidence in the wholesale market that the kinds of increases in retail gasoline we have seen lately are beginning to flatten out, peter out, slow down? >> haven't seen it yet, but it's inevitable. watch what happens at the big box stores as consumers in the april, may, june time frame they don't shop for as much as they otherwise would have. i think it's still early. i think americans are adjusting in some respects to higher prices by driving less. the irony of this whole situation is, we're consuming less and less even while prices climb higher and higher. you would think the laws of economics would play into this. so far, they're not. that is because the problem is

of greater magnitude than the administration is willing to admit. refusing to accept that china and india are demanding ever more oil in a world not producing more oil and at the same time, declines from existing fields happen faster. the declines hit very quickly. which means we better keep drilling. the gulf of mexico is in decline from the moratorium of two years ago. the goes ins and goes outs have to be watched. as declines occur, they're not replaced by increased production, we're stuck. we're at a plateau when the world needs more. >> does it make the difference in the uk is on board as well? if that happens at the same time? >> it's not producing more oil. it's just gushing out stored oil. it's designed for emergency

situations. >> some politicians might argue they have an emergency on their hands. >> well, they do. they're playing retail politics with energy rather than solving problems because, you know, vote for me today, don't hold me accountable for what i didn't do over the last three years. >> john, appreciate the insight today. appreciate it very much. thanks for coming to the phone. >> you bet. take a quick break. we'll take stock with bob pisani when we come back. ffee, and we heard it. it just came crashing through the roof, out of nowhere. what is it? it's our ira. any idea what coulda caused this? maybe. i just sorta threw a little money here, a little money there. and i loaded up on something my dentist told me was hot. yeah. ♪

okay, bringing you up to speed on the news out of reuters that the united states government along with the uk considering an emergency release of oil stocks from the spr. that moved a whole lot more than crude. >> this is a joint statement with the uk, with david cameron. here's here this afternoon for a luncheon meeting with george soros. do take a look, quickly, at some of the stocks. here's exxon. the move to the skroun side. this has happened in the last six or seven minutes. a drop down and the recovery. airlines will like a decline in oil. look at some of the airline stocks.

this index moved up. this is where we got the announcement. a little past 11:30 eastern time. the transport companies like fedex, very, very marginal moves today. that happened there. maybe 40 or 50 cents on fedex on that. overall, did it move the stock market, the overall market outside of the transportation sector? the answer is no. probably good new overall, given the concerns about oil. not big moves on the stock market. >> at this point, still a reuters report. we're waiting confirmation. >> it would be nice to know how much is being released. that could be a big effect. bring rick santelli into the picture and art cashin. they haven't been worth more than a cup ol days of trading.

these types of moves. >> that's correct. it will have a different kind of effect as well. it will show up in the election conversation. was there something behind it? other than the immediate need or with gas prices going up around $4, what will it mean at the ballot box. >> rick, characterize your level of outrage if it happens. >> the guest we had from citizens for affordable energy, he tapped it. the last time we tapped this, the effects lasted three days. i can understand that in an election year, and i think art referred to this indirectly, even wants a quick solution. i think it's sad. we need to put people in a room and decide, we're not going to be able to fix this by november. but the american people deserve

some type of a plan to address a situation where if supply doesn't change, what it does alter is putting people in harm's way to protect our sup ply of oil in unfriendly parts of the world. this is less than a blip on the screen. how many days have we had a range bigger than this, and many times in futures, something like this that is sell the rumor by the fact, you probably already saw the extent, even if the news is true as ho how it will protect the market. >> peter gave us data. last happened in june. june 23rd, that announced 60 million barrels released. wti at 95.41. went to 91. seven days later, back to 95.42. that's -- cow can't argue with how it happened last time. >> and it turns out to be a drop

in the bucket. pivoting to china. you have been bringing this to our attention. splashed all over the front of the f.t., power struggle in the communist party. an analyst saying a hard lapding is no longer a debate. >> we're going to have to watch very caricale icallcarefully ov week. an attempted preemptive strike. this guy is very popular. boe. the guy they removed. he prezided over the most prosperous province. in the early days, he would be a nonperson. will take make him something with social immediate ra? you have to watch. >> would you go along with j.p. morgan's call of a hard landing in chin? >>