mattress. real estate's version of the eddie murphy movie "coming to america" and an 80 proof bottle of sunshine just for you. >> first to steve liesman here with the details of the fed's beige book. >> i like that facebook but the beige book being the thing right now. i want to give you my take right away. this is not a recessionary beige book, it's a 2% where we've been growth. saying economic overall growing at a moderate space. anecdotes from the 12 federal reserve districts about the economy. manufacturing they say continue to expand in most districts but soft in philly, richmond and st. louis. consumer spending is unchanged. that's probably the weakest part of the beige book. auto sales are said to be strong and inventory's tight. construction picking up in many areas. that's an upside comment. and seeing both residential and commercial on the upside. wage pressure is modest. hiring steady or up slightly. price inflation, a key thing the

federal reserve watches every month is modest across most districts. capital spending plans also are mostly positive. little micro from the macro here. rising new york rents are making buying more attractive. some of our viewers thought might with tech and energy sectors in places like new york and san francisco. and richmond boosting demand for commercial space. loan demand, this is good, steady to slightly stronger. and ticket prices up on broadway from a year ago. mandy, here's the thing. >> bottom line it. >> the federal reserve goes into this meeting without a beige book screaming the economy needs help. i don't know that the beige book is the most important factor for the fed. >> how long does it take to aggregate this information? >> over six weeks. it's pretty fresh. it's only a few weeks old. >> but they have to aggregate it, print it, if they could redo the beige book in one day, would it look any different? >> i don't think it would.

that's a good question. to me the idea that the job market is what the job market is relative to these anecdotes, i think that changes week-to-week from what employers are saying about capital spending i wonder if there was a ricochet on the jobs market on confidence. but overall i think there's reasonably good confidence out there. it's a 2% economy. that's what this is. >> all right. let's see what the market reaction is here. down to the trading floors, brian shactman at the new york stock exchange. we heard it here from steve liesman, it feels like a beige book that is not saying the economy is screaming help. how is the market going to take that kind of news? >> well, listen, the market is stable. we've gained about ten points in the dow. the dollar is basically the same as where it was. a little selling in gold. it's not enough to derail this rally at least at this point. i want to point out one nugget within the beige book that was interesting, i didn't get to the stocks, the auto sector is doing well today. but s&p came out and said sales in may not as strong as they had expected perhaps, but here in the beige book they said auto sales are strong and inventory's tight.

the point i'm making is you have to go to all the data points in the big picture in the larger context and not just go on the headlines out of the beige book. in terms of the stock market, the dow is eight points better than it was ten minutes ago. >> can i can you, brian shactman, i've been trying to figure out all day what it is exactly that the market is latching onto to get this kind of rally. i mean, it feels as if it's kind of clutching at straws. you could say maybe there's going to be help for the spanish banks. but there's nothing out there that would provide conviction, is there? >> that's 100% right. go back to your old part of the world and say the australian gdp -- >> australia is not moving the u.s. stock market. never has, never will. >> they will rule the world. >> almost as many people as l.a. county. >> i would just say that you're right, but listen, when the aussie dollar's strong, commodities are up, that can have a reaction with a little bit of a trickle down effect. the point is that's some of the explanations people are giving me. to mandy's point, no one really

knows because materially life is no different than it was on friday when it was a rip-your-face-off selloff. the bottom line is it's a very fair point. a lot of short covering. that's the number one thing, the most consistent thing i've heard from traders is that people are covering because they made money on those shorts and they don't know what's happening tomorrow. >> and you get the quote of the day, zip it, sully. >> i like to have fun with brian. >> zipper stocks are soaring right now. got to go back to school with my son. >> zip it and keep on reading. >> we are seeing the best day in the s&p after a miserable may. let's get more reaction from the fed's beige book. joining us now, president of chase investment capital and gina sanchez, after ribny global assets. gina, first to you. bottom line, are we going to get, as john wrote in the journal today, top line, big

font, front page, the possibility of more fed easing here? >> well, this is interesting. i mean, we're a little surprised by the results of the beige book. we would have expected it to come out a little weaker given a lot of the data in recent weeks has actually been pretty weak, especially you know auto sales came out weak in may. so we're a little confounded. now, this could be interesting going into the fomc, but we don't think the beige book necessarily matters that much in the broad scheme of things. >> what would you be looking at instead? if we should be putting aside the beige book for a second, what would you say is the most important indicator right now to give the true picture of what's going on in the u.s. economy? >> well, we're watching the data. you look at the restatement of q-1 gdp, it was restated from 2.2 to 1.9. we also have seen some weakening in the labor markets. we have seen weakening in auto

sales, which we would have expected actually. that made sense. it didn't make sense to believe that we were having necessarily continued strong numbers there. and so the data has been sequentially weakening. and we would expect that probably the outlook should get weaker. certainly dennis lockhart on the front page talking about the fact that further easing is an option. now, we don't necessarily -- we're not necessarily sure it comes june 20th, but it will certainly probably come after. >> i'm going to get to peter in a second. peter, thanks for your patience. i have to follow up with gina on that. what could they do, gina? what could the fed do? how much more can they affect the long end of the curve? is more mortgage buying really going to help on the margin? what could the federal reserve actually do at this point? i'm confused. >> not that much. i totally agree with you. not that much. but that doesn't mean that they're not going to try, right? that's like sort of the dance

band on the titanic. not the way the titanic -- this is just a recovery that's going to take a long time and everybody has to sort of accept that. we're expecting 2% this year. 1.8% next year, which is probably a little different from consensus. but that's kind of the kind of recovery we're having. >> yeah. >> anemic. >> do you think it's possible that ben bernanke thinking law of diminishing returns, not only like a drop in the ocean if we do more now, why don't they possibly just take the track that draghi took overnight, and that is he basically put it on the other institutions and said i'm not going to do anything with monetary policy until you guys sort out your fiscal situation. do you think that's possible that's what ben's doing right now? >> no. i don't think it's very likely that they reverse this course that they've set towards keeping interest rates at very low levels for an extended period of time. the beige book to me is still painted a picture of an economy

that's muddling along in a sub par recession. maybe a bright spot with slightly better housing and real estate data. but i don't think he wants to put the onous on anybody else at a time when our economy is still barely recovering. >> what is going on with the market then, peter, today? what on earth is sparking and holding this rally? >> well, you know, i think we had a pretty good correction. a 10% correction much more from any other stocks. we had europe kind of go to the brink the other night. it looks like they might solve something. i wouldn't underestimate the importance of those votes in wisconsin and california either about, you know, some evidence of our willingness as a country to put our economic house in order. you know, things like that. but nothing that justifies today's rally, really. i think your guest before who spoke of short covering out of

fear of what might happen -- what might come out of the mouths of the politicians and bankers tomorrow is just as likely as anything that's been said so far. >> all right. peter and gina, thank you both very much. see you again soon. >> well, potentially helping sentiment today, the idea that investors may be growing more optimistic that some sort of grand bargain may prevail in washington sure sounded like bill clinton thought so. >> find a way to keep the expansion going. and i think the -- as weak as it is here, you know, unemployment in the eurozone i think is 11%. and germany's doing well. and a lot of the smaller countries are doing extremely well. many of which are not in the euro. but they're trying to figure out a way to promote growth. and what i think we need to do is to find some way to avoid the

fiscal cliff to avoid doing anything that would contract the economy now. >> well, clinton's very frank discussion on "closing bell" yesterday was welcomed by president obama's 2008 republican rival. hear is senator john mccain on cnbc's "squawk box" this morning. >> i want to thank you for having president clinton on. he's the gift that keeps on giving. i want to thank you for that. i hope you'll have him on more often to talk about bain capital and the necessity to extend the bush tax cuts. we appreciate that public service that you're doing. >> well, it is worth noting that clinton's camp released a statement last night on the bush tax cut issue saying the former president "supported extended all of the cuts in 2010 as part of the budget agreement but does not believe the tax cuts for the wealthiest americans should be extended again". are we really going to avoid this so-called fiscal cliff we are heading toward at the end of the year as the tax cuts end and

a debt ceiling looms like a big vulture over the head? or will it be the fed to the rescue, rescue loosely defined. peter tabak and very own rick santelli join us now. first, peter, i want to go back to the sound bite because it is interesting when somebody puts out a statement or somebody puts out a statement sort of discounting what that somebody actually said on live television. that said, do you believe we will be able to get some idea that will save us as we head toward the cliff at the end of the year. >> let's interpret a cliff. massive tax hikes that show up in 2013 going forward. you either want that as one side does and you have obviously the implications on the economy where you say the u.s. economy's extremely fragile, we can't have any of it. and, yes, i do think some sort of deal will happen. in terms of the market, the time horizon is maybe days and weeks. so december or maybe even november that is so far off from

people's minds right now where it's more europe and the global economy. >> you agree, rick, that essentially what's going on with the fiscal cliff is like let's just deal with it later. we have a fire to put out now as peter said, europe, economy, fiscal cliff, et cetera. >> i don't think tax hikes are good for an economy that's just chugging along. but i think the fiscal cliff is much more than just waving a wand and having the current tax code remain even if it's only for part of the public. i think the real issue is i think the public is getting sick of the uncertainty of what the tax code will be or how it will be changed in october for december 31st. so with an election in november, i think no matter what happens with this fiscal cliff, i think people are going to look to the new elected officials to put some order in it. i think it's going to be a bumpy road no matter how they handle the end of the year. >> how bumpy? >> i think pretty bumpy. and i think the equity markets of course with tax implications, i think new investment that creates jobs, i think if you say in september, october, november,

we're going to keep tax policy in place, i don't know that it helps those things. i think at this point these -- this tax structure's like a tax credit and has a very temporary life because our entire tax code is kind of like a credit. you don't know how long it lasts, it might be very short-term in nature. >> to further rick's point, there's no doubt you get to september, october and these massive tax hikes are hanging over the market and the economy, everyone's -- well, the market's not going to like it. it's as simple as that. what i meant before was right here and now the market's focused on europe and the global economy. but massive tax hikes in 2013 is going to be a disaster for the u.s. economy. and with respect to spending, it's obviously medicare, medicaid and social security. those three ponzi schemes like that. >> i agree. we lurch from headline to headline on a daily basis and grab at straws whether it be good or bad.

what are the good straws the market is grasping onto today? >> well, today is just a reflation trade because people are hoping that central bankers somehow throw some more money from the sky on top of us. that's all this is. we've seen this movie so many times over the past couple years as the economy turns down globally, money's thrown at the problem. we reflate and then that waears off. we ask for more and do it all over again. >> you're just distrusting today's rally? is that what you're saying? >> this could last maybe through the greek election into early july, but central bankers still can't get that cheapening the cost of money is not the answer to the problems. >> you know, rick, peter talked about social security, medicare, medicaid. you and i know or at least maybe i think i know and i'll ask you this, right, i have said for a while now that gop versus democrat is so over, right? it's so a couple years ago. everybody's making wisconsin out to be democrat versus -- it's not. all right. that battle is old.

it's old versus young. that's the battle that's here. that's the battle that's coming. it's benefits now for benefits later. who pays now for who gets later. period. republican, democrat is over. do you agree? >> oh, yeah, i agree. and i think young people, listen, wake up, vote, research. because you are going to once again get all of these bills coming in your direction. so i think you're spot-on, sully. the dynamic of what happened in wisconsin, san jose and san diego is that most of the chains we need, the really biting chains that is going to change things like these programs are cost and reform is going to happen from the bottom up because the top doesn't have the nerve to do it. >> peter and rick, fantastic conversation as always. thanks for joining the show. still ahead on "street signs," we've got the analyst who thinks groupon stock may be a daily deal after all. >> and herb told us so. tempur-pedic getting absolutely flattened today. we are going to ask herb whether it's going to be more sleepless nights or what possibly could

fluff up shares of tempur-pedic. >> and herb should know. >> more mattress puns straight ahead.

investors putting tempur-pedic shares to bed today. they're down 49%. that's almost half its value, folks. now, it was way up for the year until about mid-april when tempur-pedic shares began dropping hard. and herb was warning us all along about it.

and herb joins us now. this is another one of these, i mean, the cut didn't look that bad to have 50% of your market cap knocked off. >> no. the cut actually looked actually, i think, really bad. and when you -- 50% of your value bad? >> well, look, the 50%, by the way, it was down 50% before today from its top to bottom before you hit today. this thing's really been taking dives and dives and dives. the company's telling you things really aren't that great with second quarter and full year guidance cut. and the best part about this, none of this should be a surprise. anybody who's tracked this company knows the concerns over competition have been rising. especially with serta's roll outlast year of the icomfort bed which uses gel pellets to create a cooler sleep. i've been talking about the icomfort, but tempur-pedic always said don't worry, we have competition, that's fine because the entire specialty bedding space is growing.

maybe, but earlier this year tempur-pedic rolled out the new budget bed called simplicity. right then and there, if nothing else, that was the tell. at the same time the company sharply ramped up its pronotional spending and on the first call in april that talk of competition went from a little to a lot. but do not worry, the company sort of implied. said initiatives would pay off in the second quarter. as i say today on cnbc.com, did that -- did they say second quarter? did they really say -- scratch that. that's not the case. by the way, international they say is going to be fine. that's another overhang. so many overhangs here as you go forward. >> go back to why the stock is tanking so much. how much of this is just a loss of faith and the credibility of the company's management? in other words, they completely misjudged the competition. >> i don't think that's the point at all. i think what you have is, this company -- these guys have been running this company. they've got a real brand.

the credibility issue, at this point -- >> they didn't give the competition as much credit as perhaps they should have early enough. >> look, you raise a good point from that perspective. i wasn't thinking of the credibility of the management, but i do think they misjudged competition. and now i think you have to say they thought second quarter things were going to look good, now is it third quarter, fourth quarter? when is this going to pay off? you have a lot of moving parts in an industry as the company said a land grab for the space. >> great call, number two, i think in a nice way he told you to zip it, and number three. >> you were waiting for an opportunity. >> number three, maybe there's another explanation here. remember on may 14th, there was an article "sex or sleep." they're super comfy for sleeping -- >> they don't got a bounce. >> you said it. >> given a choice, which would you choose? >> this is the stock right after the article. it looks like the stock literally peaked about a day after that article came out. it was a slow slide, obviously.

no big drop until today. but that pretty much was the high. the article questioning the tempur-pedic's ability for the old -- >> come on. >> what do they call the game? >> is that a surprise? come on, we know it doesn't bounce. that isn't new news. >> i love the way rival seally came out with super sexy ad and said anything you do in bed, sealy supports it. >> how about your water bed? moving on. >> groupon upgrade today a hold today by stifel nicolaus on the chance may have stabilized. the stock is currently up by 7%. the man who wrote that report joins us now on the newsline. jordan, what are you seeing in this stock that's made you do the upgrade? >> well, you know the phrase can't get blood from a stone? at some point when everybody knows of a lot of risks related to a stock and it just doesn't go down anymore, you have to be very, very wary of overly

pessimistic or bearish calls. sometimes the best thing to do as an analyst is to move to the sidelines until you have additional information and more conviction one way or another. groupon here, it could go either way. it's still not a business model that's solidified by any means. believe me, i'm as skeptical as many about the idea of merchant exhaustion, whether these merchants really like groupon and what it does to their business long-term. that said, it's a fairly big business. $2.5 billion in revenues this year with operating margins going up. they've been able to demonstrate some operating leverage that makes it much less attractive on the short side. or much less likely to underperform. from that perspective, i thought i was on the wrong side of it and at the right time to step aside from the sell call was this morning. >> in your note, jordan, you talk about the e-commerce opportunity. not the groupon coupon business, but the actual more direct sales, you call the o & o opportunity. if we don't get that or if it doesn't materialize to the way it could, would you reverse this

call and slap a sell back on it? >> i don't know what my rating will do over time. i have to see where the stock price as various catalysts hit me. i'm not counting on much at all from e-commerce. i can tell you some of it has been going onto date. this isn't brand new. what's new is that they're taking inventory. they should have a pretty good ability to know what they're going to sell, the quantities that they're going to sell. so i feel like the risk associated with carrying inventory of ipad covers or anything like that is fairly minimal. now, when you look out, could travel be a big segment for them? the answer is maybe. could groupon now, which are those simultaneous deals that happen for a short time, that could be good. e-commerce could be good. they've essentially built a big business on the daily deals side that could support and generate other smaller but profitable businesses on top. if that's the case, then the revenue and earnings estimates

looking out to 2013 or '14 are probably a little too low. >> okay. so we'll have to watch to see whether it can make the transition to being a broader e-commerce play. jordan, thank you so much for joining us today. coming up next, a smooth shot of sunshine that may put a little hair on your chest as well. >> and the details of what the nasdaq is set to do to maybe make investors a little more whole after the facebook face plant. those shares by the way are up fractionally today but down more than 30% since the ipo. >> look at that.

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as the animation shows, gamestop is today's disaster du jour. it's only down fractionally. it's not a huge drop. but it is one of the few down stocks on this friday, to be honest, folks, we had a hard time finding one outside of the mattress and video games. >> how about a little sunshine on the rocks today. diageo popping after it would pour $1.5 billion into its scotch business. there's a huge scotch boom in the bric market. they're catching on, folks. up 16% over the last year. that's a whole lot of booze. coming up next, the invasion of

the real estate market. is there a way for you to play all of this coming to america? >> and the beautiful stock that's doubled in the past year, but leave it to our friend herb. he will come back and say why ulta's amazing run could have an ultra ugly ending. 2:29 here in the east and in miami. back after this. the cnbc real-time exchange market snapshot is sponsored by interactive brokers. people with a machine. what ? customers didn't like it. so why do banks do it ?

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let's take a look at the markets. we have a rally, folks. whether or not it is going to hold is anybody's guess. but if we close in the positive for the dow today, it would be the second day in a row. we have not actually had two days to the upside for the dow in quite a long time. okay. first up, get this, our mountain is converting to a reit. >> we're not talking about the fantastic town in michigan's upper peninsula, by the way home

of the biggest corn pumping engine in america. we are talking about the document storage business. they want to convert to a reit. if approved would be done by january 2014. target risen to $38. the company has more than 64 million square feet. they want to convert to a reit for tax reasons. investors liking the dividend play. the stock up 12%. >> we've been seeing a lot of movement, haven't we, to the upside in the home builders. here's another one. pulte homes. >> another boost. credit suisse the latest to come out. they're upgrading to an outperform. they say take advantage of some of the recent last couple days before two days or so ago we saw some selling off. use that to add to your position. they say channel checks with sales agents shows some strength in home prices at these new home builders. >> and halliburton seems to be in some hot water. what's going on there? >> literally --

>> is that a new planet? >> no. it's used in fracking. most comes from india. apparently there's a shortage of it, because there's probably so much fracking. so halliburton came out and said the shortage is causing prices to go up, which is going to compress their margin. so they essentially cut their gross margin forecast. so halliburton stock getting hit on gaurg gum. >> youf said it seven times. ulta also looking pretty good after some earnings, right? >> nothing can stop this company. nothing has been able to stop this company. stock up 8%. they beat already increased guidance. earnings rose 50%. same store sales continue to rock. they're expanding like a fungus. >> yes, they are. >> and yet you have a problem with ulta. >> you know, it's little things that i love -- >> by the way, welcome back. >> it's the little things i'm looking at that may not mean

anything right now that get me concerned. a company that's a growth story because it's opening new stores. the company comes out saying it's going to open not just 1,000 stores but now it's 1,200 stores. when will that happen? the company doesn't tell you. i start to see a promotional tendency when a company talks about new store openings five, six, seven years out. >> you've been here for a little over a year but i know you and respect you enough whenever there's a super fast growth story, you get nervous by it. you get nervous by companies growing rapidly and project maybe too far out. >> i don't like long-term projections like that. >> not long but early. >> very early in this case, but i also wonder why the biggest investor in the company, who is a director in the company, also just peeled off two-thirds of his position in a very large stock sale of 7 million shares. if this company has such great growth, why didn't he just hang there? why would you buy the stock if he's selling it? >> maybe he's worried about the

dividend tax hike and if he wants a capital gains rate of 15%, wouldn't you sell ahead of that? >> i'm just saying. >> i'm starting to sound like jim. a taller jim. >> a much, much taller than jim. i know i'm raising a red flag, but i think you have to point it out. >> good point. oil prices rising, not just rising but rising today along with the broader markets. our sharon epperson has the final trades on the nymex. good day for oil today. >> it was a good day for oil. oil finished up above $85 a barrel. but still off of the highs of this session. we saw much bigger gain in the brent crude market with prices there above $100 a barrel. and we're going to be looking ahead to what happens with the inventories for natural gas because we're going to get those in tomorrow's session. we saw natural gas today break a two-day rally. we'll get to see whether or not we still see pressure on nat gas prices once the inventory reports come out. back to you. >> sharon, thank you so much. >> all right, loyal viewer, you know one of the recuring themes on this fine program has been that of hopium.

the idea that as the world's problems grow it could benefit america because foreign capital will come to the states looking for what it views as a safer investment. your next guest is seeing just that. one of new york city's largest commercial real estate brokages, maybe the largest and he's seen double in foreign investment versus last year. bob, great to see you again. you and i were e-mailing last week. i said to you very bluntly, i said my theme is that capital's going to flow here. am i insane, you said, no, well, you may be insane but i wasn't wrong because you're seeing foreign money here. >> i would never say you're insane. a lot of foreign capital coming in and clearly a flight to quality. as we saw with the 10-year treasuries falling after the downgrade of our debt, people looking for safe investments today. and from destinations all over the world we're seeing a tremendous amount of capital flooding into the market. >> where in particular from over the world is the money coming from? >> mandy, most of that capital's coming from our major trading partners, believe it or not.

canada is our number one trading partner, most of the foreign capital that's coming is from canada. we're also seeing it from mexico. south america, far east, mideast, europe and clearly since -- >> she just wants you to say singapore. she's waiting. that's why you asked that question, is it not? >> a massive contract, like a $31 million contract from a buyer in singapore. >> we did. it's a private investor. foreign capital comes into the market in two ways. it comes in from high net worth individuals and it also comes in from institutional capital players. and we see it on a direct basis into commercial properties. but we see it indirectly in the form of equity financing. >> how much of it is with cash? >> most of it. interestingly most of the foreign investors that purchase properties in new york -- >> those are really big suitcases they bring, right? >> even with the extraordinarily low interest rate environment we're in right now, most of the purchases are done on 100% equity basis. so they're not taking any mortgage. they're simply looking at

buildings in new york city as safety deposit boxes. >> it is amazing how much money is in the world. it's mind blowing, right? but how much? say, okay, without getting too complex into cap rates and everything, if we're getting 2% on a treasury, worried about international markets going down, u.s. stock market, maybe it will stay flat for the rest of the year, who knows, what could i get if i bought a commercial building in new york? what's the average annual rate of return somebody could expect to get? >> figure between 4% and 4%. it depends on the upside of the potential property. >> is new york city maybe the best market to invest in right now commercially, do you think? >> globally investors look at new york, washington, d.c., and san francisco as the top three. but i think new york captures most of that foreign capital. >> we have to leave it there. we could talk about it all day. great to have you on the show, bob. >> nice to be here. >> we told you earlier in the show about how bill clinton wanted a do-over on some of maria bartiromo's questions yesterday. next, we're going to get maria's

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all right. there are your markets. the dow's up 225 points. the best day of the year i think so far, right? >> feels like it. >> best day of 2012 for the stock market. of course coming off one of the worst days, last friday. nasdaq up today with its plan to fix the facebook mess. kayla tausche is here with the details. what are they going to do for us? >> they set aside a fund of $40 million, which seems like a poultry amount when you think about the fact that losses from these market makers is estimated at $200 million. here are the three types of trades that you can get paid back from this tiny portion of that $40 million fund. and that is if you tried to sell at $42 or less and your trade wasn't executed, if you tried to sell at $42 or less and your trade was executed at a price inferior to what you tried to trade at, or if you tried to buy $42 in the ipo cross and didn't get an immediate confirmation. a lot of people changing their

orders after that. they're saying that they won't award you any sort of claim for opportunity costs. saying that any sort of claims that there was mass confusion or that people didn't know what they were doing, that's unqualifiable and there's really no way to value that. they're not going to pay for that. and any trades from 1:50 p.m. to 2:20 p.m. because nasdaq said it delivered all confirmations at 1:50 p.m. if there was any resulted confusi confusion, it was probably at the broker/dealer level. this isn't a payout for individual investors, rather. this is a payout for the broker dealers that were on the hook for those individual investor trades. and the bulk of this will be trading discounts for when these brokage houses go to do trades in the future. >> so what about the retail investor? >> tough on luck at this point. if you were a brokerage firm, you could get some sort of discount when you're trading in the future, but if you were a retail investor and bought at

$42 and we see the stock where it is now, you're not going to get any payout here. >> i feel there's going to be another chapter to this one. i can't imagine retailers will lie down on this one. >> seriously. you can't even imagine how much people have lost on this with facebook stock where it is right now. it's really hard to quantify, but there's so much money that's come out of the system and so much confidence too. >> absolutely. >> that's right. thanks, kayla. in just over an hour, maria bartiromo is going to face-off with the ceo of nasdaq. it is his first interview since the facebook ipo. and maria joining us now. maria, is this a critical moment for robert greitfeld and the nasdaq? >> it is a very critical moment because we haven't heard from him since this botched up deal on may 18th. so not only is he going to defend the nasdaq for future business so that this blunder does not affect future business

coming here, but he also has to defend himself to wall street because a number of wall street executives are upset. for example, they feel he hasn't reached out to them. he hasn't called them to discuss what went wrong exactly. and not to mention what kayla just discussed, these accommodation packages. also you're going to see sort of a regulatory component. we've got lawsuits, investor lawsuits, the s.e.c. inquiry and even the new york stock exchange is probably going to have some red flags if in fact part of the accommodation that the nasdaq does is lower fees. because that's going to impact market share. so if nasdaq is going to get more market share because its fees are lower because it messed up, the new york stock exchange is probably going to raise its hand and say, wait a second. how is this happening? so there are a lot of implications here. bob greifeld talking to us since this happened for the first time. we're going to get some answers. >> i understand your interview with president clinton yesterday was not exactly well-received by

the white house. what more are we hearing on this? >> oh, i find it extraordinary that really the most powerful democrat on the planet, bill clint clint clinton -- arguably one of the most powerful but maybe one of the top two democrats as far as power is even getting bullied by the white house. president clinton sat down with me yesterday. and president clinton, as you know, is incredibly savvy. he knows exactly what he's saying and when he's saying it and how he's saying it. and yesterday he said that this economy is weak, that he is fine with them extending the tax cuts, extending everything right now. he said i'm good with them extending everything right now, but not permanently. he basically said, yeah, we should be extending the tax cuts to avoid a fiscal cliff at all costs. but not permanently. >> maria -- >> before the highest earners -- >> you got. >> -- after the interview his spokesperson comes out with a statement to clarify because he

got so much pressure from not just the white house but all the republicans were tweeting even bill clinton agrees with us, blah blah blah, it's amazing to me even he gets bullied. >> you got it spot-on. it's what you said, the president -- former president, he doesn't say anything by mistake. he's not only one of the greatest politicians, probably one of the greatest minds, road scholar, everything. and yet i love it. don't you love it when somebody comes out with a statement that clarifies what somebody supposedly said? it was live television. >> and the other thing is, you know, a week ago we heard president clinton tell wolf blitzer, you know what's great about being a former president, you can say whatever you want to say. >> and he said it. he said it to you. he said it to cnbc first. >> yeah. interesting that comment that carney from the white house, the press guy said, there's no daylight between what president obama's saying and -- >> what does that mean? >> i think it's saying -- >> clearly there is a little daylight out there. >> i think it's pretty clear that president clinton and president obama see the economy

differently and see solutions differently. president clinton is basically calling it as it is. it's a very weak economy. the jobs numbers showed that. and there needs to be some action taken. and maybe, you know, maybe putting shared sacrifice aside for a moment so that we can get jobs going again is the path forward. and that i think is what president clinton was trying to say. >> okay, maria, great stuff. thank you so much. >> yeah, thanks, maria. and we are all going to be watching your exclusive interview coming up with that man right there, robert greifeld, ceo of nasdaq, we're going to talk to him about facebook. maybe to your point, mandy, what about yield retail investor, mom and pop hosed again. >> coming up, remember all those tide thefts a few months back when tide was stripped currency. thieves are finding profits in a new crime wave. wait until you hear what they're picking up this time. >> you want to buy bounty? how about a snuggie? apple and google both charting their own futures.

who will win the battle for the maps on your phone? we'll debate it coming up. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ ♪

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welcome back to cnbc. the white house has put out a statement saying that president obama has welcome back to cnbc. the white house has put out a statement saying that president obama has spoken with german chancellor, angela merkel. the leaders agreed to strengthen the euro zone and growth in europe and continuing to prepare for the g-20 summit that will happen june 18th in mexico. you should see this as increasing evidence as the u.s. getting more involved and growing more concerned about what is happening with the european financial crisis. guys, back to you. >> all right. michelle, thank you very much. well, outside of that, and in technology, google is revamping its mapping services, making it a full out map war between google and apple. who will win? let's bring in gene and some people don't have maps, jean, but not many. because they are on almost every

smartphone. right now it's google on apple. is that over? is this the last rift between them? >> there's more rifts to come and it's definitely not over. this is one of the pieces to it. maps are particularly important because if you look at what people use their phone with the first, texting, second thing is browsing, e-mail is third. apple is going to make a statement on monday and is going to show that their maps are different, even more than the improved google maps today. >> jon fortt, just to fill us in quick in terms of what is new wa regards to their announcement today. >> well, let me clear away some smoke. the one thing that is really new, if you're going to europe or some place where your phone won't have coverage, you can download the map ahead of time. there is also going to be 3-d available, but only available in

the google earth. apple has the advantage. they are going to develop the maps for their software and google has to deal with a lot of other oss and hardware. >> so me the advantage is, it's one reason to buy an apple phone over a samsung, right? >> exactly. >> google is going to say, hey, we got our map for free on somebody's phone. >> not only that, if you look at how google maps is going to be implemented with our partner, it's fragmented. consumers are confused with android right now. apple is a very clear solution. this is going to make that distinction more clear. >> i see here in terms of your rating for both companies, you've got an overweight for apple and google. whatever they are doing with maps, is it going to move the dial in terms of their stock price? >> it doesn't have much of an impact. we estimate that about 2% of

google's revenue comes from searches done on iphone. that's not the pin drop that you typically do. they are just starting to do some sponsored. it's not going to have an impact in terms of google revenue. the real difference is differentiating the os didevice versus other devices. >> there used to be a company called map quest. >> aol has it now. >> it does exist. i went on it the other day just for people beel yeah. is this a two-horse race? >> reporter: it is. on google's side, it's going to be about local commerce. that's why they've got to have it broadly across every single platform that they can. it's an engineering challenge. for apple, this is about device

differenciation. you can see them fighting this with two different business models. >> personally, i like google maps. i often check out my parents' home in melbourn. coming up, a final check on this mega market move and what is on "street signs" tomorrow. tomorrow. obby. hello bobby. do you know you could save hundreds on car insurance over the phone, online or at your local geico office? tell us bobby, what would you do with all those savings? hire a better ventriloquist. your lips are moving. geico®. fifteen minutes could save you fifteen percent or more on car insurance.

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