>> air methods. . good to see you. >> we'll see. >> that will do it. sue? >> keep your eye on the 10-year yield. approaching new lows. "street signs" begins right now. we'll see you back here tomorrow. have a great afternoon. and welcome to "street signs" where it is a historic day and the president getting a historic win. but is the health care law going to hurt our collective wallets and the economy? we analyze. the bear's growling today and bond king bill gross is bullish on america. he is here. news corp. says it's split' splitsville. battleground rim. our old buddy back in the spot lite because the red ink likely to roll out after the bell. >> what a pity herb is not here. attempting to wipe out the

losses comes to a halt. stocks extending their losses after the health care ruling but among the s&p sectors, health care is kind of in the middle of the pack and the biggest losers have techs and financials and negative for the month of june. let's get to mary thompson on the floor out stock exchange. >> mandy, a broad based decline, concerns of the economy front and center when investors looking and focused on the decision from the supreme court earlier today. as you mentioned, the broad based decline is led by techs and financials and the nasdaq wiped out the gains for the month of the year -- for the month of june. it does remain positive for the year. also, heading toward the close of that trading session, crude oil is trading close to the lowest levels of the year and lowest levels since october of last year. take a look at how the energy sector, another group that's under pressure in today's

session, take a look at how some of the stocks are performing as crude continues to slide on concerns about a weaker economic outlook. health care stocks mixed in the wake of the supreme court's decision. we want to dig deeper in the banks. under pressure. jp morgan leading decliner in the dow components. there's a story in "the new york times" saying the loss could be $9 billion. reporting by the cnbc colleagues puts it more at $4 billion and $6 billion and finding out july 13th and the european banks under pressure with citi with concerns about the expanding probe in to libor manipulation. back to you. >> thank you very much. back to the big story of the day. and the supreme court's historic ruling on president obama's health care law. here's what you've missed.

>> strike it down. strike it down. >> mandate has been upheld as a tax, not a penalty. 5-4 with justice roberts siding with the court liberals. >> talk about the decision of the century, david. more like the surprise of the century. >> disagree with the supreme court's decision and i agree with the dissent. what the court did not do on the last day in session i will do on my first day if elected president of the united states. >> today's decision was a victory for people all over this country whose lives will be more secure because of this law and the supreme court's decision to uphold it. >> yeah. it's been a heck of a day. now that you are up to date, folks, her's the stock scorecard. health insurers generally lower. all moving to the downside. however, keep in mind, all of these names are higher than they were the day the law was passed december 24th, 2009.

the market hasn't killed them. medicaid players are higher. centene, molina. not country health or coventry health by the way. universal health services. health management associates and community health. that's why these names are all spiking. and what about the medical device players? this was the industry really in focus when the law was passed with the 2.3% tax put on the group. as you can imagine, they're all in the red. all to the downside. and what about the group that made the deal with the president? remember the $80 billion deal over 10 years? well, the big pharma companies,

all losing ground although, mandy, not too bad of a hit for the sector. >> absolutely. one of the key parts of the health care decision in the supreme court ruling the individual mandate is constitutional but under the taxing powers of congress but does that mean we should view the law as a tax? which, of course, could then hit consumer confidence as families read the decision and fear they're going to have to pay more for health care. let's bring in jim henchman and our very own john harwood. joe, you first of all. you say that this is a penalty and not a tax and strangest things of all is president obama has been absolutely insisting that the health care law is not a tax. >> right. we at the tax found dais one of the few to submit a brief on the argument and stressed that it was a -- it's a penalty. not a tax but it's important to keep the difference. a tax raises revenue. a penalty changes behavior. instead of following the lower court decisions we have on this

and the supreme court's past decisions, today's decision says that a tax is -- or a penalty is a tax when the amount is low. which is completely unprecedented and we're very surprised by the decision. it has the potential for doing a lot of damage to local governments, to state governments because a lot of these could now be construed as taxes. >> all right. i want to dig in to that second point in a second but right at the beginning of the answer you said it's a penalty and not a tax because it's trying to basically encourage not penalize. but if you don't buy health insurance, you are penalized. you are forced to purchase it or get a fine unless you're at the very low end of the income scale so how is that not a tax? >> well -- >> you have to give money to the government one way or the other. or health insurance company. you are forced to pay something to somebody. >> the distinction of a tax and

a penalty is a tax is imposed for the purpose of raising revenue and a penalty for the purpose of changing behavior. and everybody up -- the text of the bill, all of the people who have read it and even the president himself said that this is not a tax. it's a penalty. so chief justice roberts' view on this is a lonesome one but unfortunately it carried the day. >> what's interesting is obama took the podium, john, said off the bat i know there's a lot of discussion of who's winning and losing on the back of the decision and kind of like beside the point. who do you feel plolitically speaking won or loss as a result of this? >> reporter: there's two points. the president and the allies and people that made the law happen believe deeply that it will help millions of americans get health care, cut costs in the long run and help the economy. i know many people, many republicans, many people in business disagree with that but

that's the substance. on the politics, the president's arguments reflect the fact it is not an unambiguous political win for the president. why? mitt romney and republicans who did very well in 2010 attacking this law and the process by which it was passed can sustain the arguments. if the law thrown out by the supreme court, that would lose one of the arguments they have been making for two years. the president now has a different burden because of the way yus tis roberts ruled in calling this a tax because that all of a sudden takes a larger role of the rhetoric. part of president obama's desire to raise your taxes and specifically it's a tax, call it a penalty or a tax, whatever. whatever we're talking about would affect a middle income taxpayer. that will be a republican talking point. >> how salient of a point do you think that is, john? >> well, when you combine the larger tax argument they're making and republicans cast as

central to their conception of what's good an not good for the economy, i think it is a salient point. at the end of the day, the election is going to be decided, brian, i believe by economic conditions and how people feel about their economic prospects moving forward. the president weaves the health care as part of his economic argument and republicans do the same. what's number one on the republican list of complaints about the administration is they say they want to raise your taxes and now they can say and not just rich people's taxes, some of you in the middle. >> there's pot calling kettle black romney saying on the first day as president the repeal obama care and enacted similar reforms as governor of massachusetts. >> reporter: he did. >> joe, romney said that obama care raises taxes on the american people by $500 billion. do you agree with that? are there positives for the american people here? >> of course, i don't agree it's

a tax but if the supreme court calls it a tax then i guess with respect to president obama's plench not to raise taxes on low and middle income earners either the mandate is unconstitutional or he broke the promise. that's what it comes down to. >> the average american family likely to pay more you believe, joe? >> yeah. a lot of people who will be subject to the mandate, not buying insurance, they can't afford it. >> reporter: brian, remember, it's not as if most americans pay the tax. most americans have insurance. this is designed to get the free riders out. remember, this was the argument mitt romney made in massachusetts. no more free riders on the system showing up at the emergency room and treated even though they haven't had insurance. that is minority of americans who would be affected by the penalty. >> right. john, agreed right now unless, of course, companies dump people on to the plans or people chose not to get insurance until they

were in a wreck or ambulance and can't ban them. they have two broken legs. they call the hospital or they all the insurance company on the bay to the hospital to get insurance. that would drain the system. >> reporter: draining the system playing out that way but the idea of the mandate and the penalty, the tax, whatever you want to call it, is to induce people to do it as joe was indicating earlier and i think there's no reason to think right now most americans find themselves in that position not by a long shot. >> that may change as prices go up as part of the bill. >> sure. joe and john, thank you very much. i treat eed tweeted out earlier obama says it makes the plan more secure. i thought the point was to make it cheaper. >> we have to did here. but that's the point of the segment. we're a financial show. right? here's the thing. if joe's right, right, and if costs go up, who knows if they are not? in the history of health care, costs never gone down. >> yep.

>> going on history. maybe this will change this. it takes a hit out of consumer confidence and spending and could hit the economy. that's the general view. >> that is the gist. okay. do not miss a special edition of "the kudlow report." looking at this every angle. your money, your politics, election, health care and the obama legacy. a special edition and it is at 7:00 eastern on cnbc tonight. all right. let's get a "market flash" with seema mody. >> interesting story here. the company illegally sold software to china and used to produce a military attack helicopter. united technologies agreeing to pay a fine of $75 million. once again, the parts sold used to help china build an advanced attack helicopter. crazy story there. shares down 2%. down better than 16%. >> thank you for that. next, well, you heard rupert

murdoch earlier on cnbc. news corp. formally announcing the splitd. we'll talk to the fourth biggest institutional investor. does he like what he heard? irks the bond king bill gross is here. why he's going long on america and why he hates his name. >> all in a name, folks. ♪

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all right. let's kick off the the next segment with a pop quiz. there's the markets.

down 157 points. all right. so here's the question. what is leading the markets selloff? is it the big bank woes? the health care ruling? jobless claims near the high for the year? or all of the above. here now to answer, randy frederick, director of trading at charles schwab. you saw the question, randy. you didn't know it was coming. when's the answer? >> hi, brian. i think it's obvious. all of the above without a doubt. it started out with a little bit of weakness with concerns of the eu summit and then the jobless report and then jobless claims are stagnant. they have been for a while now. and then you have the news about the barclays issue and jp morgan and add the health care announcement. each one causing a downturn in the market. >> many investors don't have a confidence. now you have got the barclays issue. if we don't have faith in the

financial companies, why should our viewers have faith in the financial markets? >> well, financials are critical. that're a huge part of the market. we can't survive without them, of course. there are always issues. there have been for quite a while. should they invest directly in the financial segment in maybe, maybe not. overall it's a big piece of the market and investors need to putt the money somewhere. they have a good long-term track record. i don't know if that's enough to keep people out entirely. >> bottom line, one sector or stock to buy right now? very quick please. >> i will say that we are -- our sector ratings at schwab in a defensive mode and the reason we're there is in a summer slowdown similar to last year and the year before and probably in for a couple of months for high volatility and big up and down days and seen that this week. i would expect it for several weeks. may not get out of this funk if you will until maybe august or so. not a great time to be getting

in unless you like volatility but still prospects for brighter at the end of the year. >> fair enough. get out on lake travis. >> thanks, brian. okay. from short-term stocks to long-term bets on bonds, we welcome back bill gross of pimco and a friend of "street signs." always good to have you back on the show. >> thank you, mandy. >> i have in my hand your forecast or 2012. for the viewers, what is the most important line or message in that investment outlook today? >> it's that america is the cleanest, dirty shirt in terms of financial markets and where money is moving towards, mandy. out of euro land. out of all of the risky peripheral countries because america is a safe haven. everything an investor desires. relatively low debt. a reserve currency status. domination of the global military stage, et cetera. but the message is well just to

conclude the point, you know, suggest there may come a time and the king has no clothes that where the king's cloak revemove reveals a body struggling to stay alive with the steroids and we have seen it last couple of years. >> when do you think that time will be? >> the world has to invest in something and as long as the united states maintains the status suggested, talking several years at least. we have a fiscal cliff coming towards us at the end of the year, do we not? you know, ratings services downgraded the debt and not ultimately and inevitably secure in terms of the cleanest dirty shirt status. good for now. be careful. >> anything accomplished at the eu summit, bill? >> we talked about that 30 minutes ago, brian. we don't think so.

another giant kick the can, you know, because of the disagreements between germany and the peripheral countries. the family dysfunction continues. doesn't seem like they can come to an agreement and those expecting big things we think are going to be disappointed. >> can a debt crisis be cured by debt? >> i don't think so. ultimately that's what policymakers have been trying to do and the qes are all about and just creating more debt. but ultimately, mandy, we think that a debt crisis can only be cured if two ways. one, cured by default and that's what we're experiencing in greece. and it can be cured with inflation and that's what central bankers are trying to do ultimately down the road. you know, the fed doesn't want more than 2% inflation and certainly they want at least 2% inflation and we are going to continue to see qes and money printing in order to get it in

to solve a debt crisis of inflationary methods. >> any big strategy shifts coming out of the meeting, bill? >> no. avoiding the peripherals and basically euro land as a whole. i think ultimately it is an area, a fiscal area, a monetary area that has, yes, high interest rates but a lot of risk. back to the united states. the cleanest dirty shirt for the moment. we look as well to countries like mexico and brazil with much more attractive balance sheaths and higher growth rates and more attractive and higher interest rates, as well. >> bill, always a pleasure. thank you so much for your time. >> thank you. just ahead on the show, an investor with more than a billion bucks in news corp. will he take more on take the profits and run? rim is down more than 30% since the stocks drop.

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sitting at the lows of the day. the dow off 173 points. at this stage, about six of the nasdaq 100 shares moving higher. news corp. shares down about 1% today after the formal announcement it will split its publishing and entertainment businesses in to two publicly traded companies. our own david faber sat down with chairman and ceo rupert murdoch earlier today. great job. what was your key take away? >> there were a few. we should point out the stock up as much as 13% before today's trading and as you said down a bit. certainly, one question i had was why now? investors have been clamoring far split of this type for many years and murdoch has been against it. he, of course, is the man with the ultimate decision. he did say in the interview that it was recently he finally reached a conclusion it was the right thing to do. now, citing the reasons, he seemed to indicate the

businesses bigger and bigger and would benefit of strategic focus opposed to being together. of course, one of the reasons they are together and cited many reasons after buying dow jones for over $5 billion was synergy. well, he is still think there is's synergy and two separate businesses. >> we'll work as much as possible in tandem. it's inevitable that they'll go in different directions in some things. they're in different businesses. >> that are but he did come back to the idea a number of times, raising some questions in terms of strategy. we'll see, of course. it is a year before the split actually becomes official and of course at that time, mr. murdoch will be 82 years old. he is currently 81. investors will be right to ask about plans for succession. for many years, peopled

anticipated to try to position his children in a way they might be willing to or able to take over. the one company. now we have two. what about it? i asked him. >> i'm in great shape. and obviously, you know, if i live -- lucky enough to live a very long time, there will be a time when i'll slow down mentally and i'll have to get down. >> you don't think it's any time soon? >> no. >> clearly he feels like he is in a position to continue to run. both companies as chairman and ceo of the entertainment company. the far larger of the two though the first love and continued love is newspapers but there he said i'll be active and find a ceo. back to you guys. >> take the boy out of australia. can't take australia out of the boy. still got the accent. great stuff. >> i have a question for you. do we have any idea who's going to run the publishing business? >> we don't. you can start to speculate.

robert thompson. it's unclear. so no, brian, at this point and it's going to be a while. a year before they get the thing done. and during that time they'll choose who the ceo will be. >> absolutely. good question also about succession plans. let's bring in don yactman and fourth largest institutional holder of news corp. stock. thank you for coming on. why do you think now this is happening and what are you going to do on the faback of that? >> i think he's explained himself of why things are the way they are. the newspaper business is somewhat of an ice cube. classified ads dropped off dramatically in the last five, seven years so you're going to end up with two different models. one will be more fee driven model and i think you will have

the wind at your back. i think the print business certainly has the wind at its face and is like i said a little bit more of an ice cube. >> you said you thought it was an undervalued business. do you think this is the best move? >> we don't talk about what we're going to do but as i've said before, ultimately, this business boils down to what you buy and what you pay for it. the function of it is the pieces and when they start trading that way. >> yeah. we don't know what the price will be but based on what you do know, don, about the publishing side, is that a business you would be interested in owning? >> clearly, i like the wind at my back instead of my face. the probabilities are better. i think one of the question marks here and i don't think it's really been resolved is the end of the year, of course, the dow jones deal with cnbc ends and it will be interesting to see what they do relative to fox

business news and dow jones and i'm, you know, kind of anxious to see what happens there, too. >> what do you want to see happen from an equity owner's perspective. >> rational behavior. >> do you own any other publish companies stocks, don? "the washington post"? >> no, no. no. we do not. >> you know, on the topic of succession, i mean, i think murdoch probably said what he had to say, he'll be an active chairman of both units. he's healthy. he is 82. what would you like to see happen? >> well, i think he's got a -- chase kerry continuing to stay in the media side and i think he's a very, very capable person. but companies this size are going to have a bench. think veal a bench. >> anyone on that bench you think would be good? >> i mentioned i think chase ke carey is a very, very effective manager and a lot of experience

in the media area and the cable business. >> okay. don, thank you very joining us. >> sorry. i was going to cough and took water. >> what happened to the vodka? replaced it with water? >> bet tore take a sip than a cough. apologies for the viewers. street talk hits on a particular stock that's not getting much bang for the buck these day ice i don't know what it is. i wrote that. i'm interested by the tease. another big story. the banks. they're getting whacked on the headlines overseas. jp morgan down 5.17%. bad sign of things to come or a buying opportunity? and sounds vying for your attention. so we invented a warning you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there's danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class.

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welcome back, everybody. of course, all pepped up here. i have the vodka shot back there in the water cup. let's get started. we have sea gate technology. another stock, western digital. they're down. >> yeah. down for the same reason. you have double news out of analysts. you have barclays cutting estimates and target prices on both. you know, the market hasn't figured the names out. we started to see shortages and then oversupplied the market.

a lot of question. you saw two hits today. >> radio shack is another name we regularly talk about and what a pity herb is not here. we have a little departure. >> wasn't this guy's pick? >> stock draft. >> chief merchandising officer scott young resigning. all right? been there since april of 2010. just slightly over two years. not to pick on guy. he just did an ironman. 38 to a 32 waist and winning. radio shack, losing. >> okay. it's -- i think the triathelon and close enough to the ironman. that's in august. >> any triathelon of the length he did is an ironman. it is a branded event. anything he did of that length is an ironman event. >> okay. moving on to family dollar, not getting as much bang for the buck. >> that's the tease today. reporting a quarterly profit one

penny below expectations. the company basically saying that some of the new initiatives, broadening the product offerings, little impact on the quarter. should start to do so in the current quarter. >> okay. >> market unconvinced. >> talking about health care and pharmaceutical stocks today. vertex is really tanking. >> a weird story. okay? because they came out with a trial, a phase two trial of a combo drug. all reads, the trial was good. right? the results were pretty good but apparently from what i gather the way they presented the data confused investors apparently that they used bml. whatever you want to call them. they didn't use an apples to apples approach and the way they released it. bank of america, merrill lynch, likes the results. modes well. defending vertex.

>> and msc industrial direct. >> trying to find a name we never talk about as a fifth stock. >> well done. >> i never heard about them. they're an industrial and maintenance products distributor. and they said that the e-commerce platforms increase productivity. i don't know what that means but what it means is the stock up is 4%. >> the kind of thing like a prospectus or an hr manager would say, right? you have no idea what it means but it sounds good. >> better than vodka in the water glass. >> actually, it was gin. >> bank stocks are hammered today after a "the new york times" report that jp morgan could lose -- this is the key we talked about this morning. could lose as much as $9 billion on the so-called london whale trade. but cnbc hearing from jp they're confident to contain it to $4 billion to $6 billion and then the european banks. they're all done. british regulators turning up the heat on barclays and maybe

others in their investigation in the attempted manipulation of libor. joining us is fred cannon at kbw. all right, fred. is this an overreaction in the markets on the european banking side to the uk regulators comments? >> seems extreme. on the other hand, this is a serious issue. it's a big fine relative to barclays and the issue of the top guys to take zero bonuses this year seems to me to make it a bigger deal. >> it could be an overreaction. here's the thing. the markets hate volatility and uncertainty. we don't know, you know, how far the investigation will go. they're now a couple of banks under investigation and we don't know the impact of the litigation will be. until that is resolved in the future, are we going to see a rocky ride? >> yeah. one big overhang over the universal banks. libor is determined by the

biggest banks of the globe. that's where it is and the same banks with the big overhang that we face and it's just one more issue out there. absolutely. >> you know, i'm going to ask you a question i asked a guest earli earlier. why in the heck should anybody have any faith in investing in any bank right now? >> well, you got to separate them, remember. >> they all seem to be lumping together on the headlines. negative, negative, negative. >> that's true. we cut the earnings estimate across the board for the second quarter but the five looking at the vast array of banks and out of the big one there is good things going on. >> we have to leave it there. thank you for joining us. still to come, a start of the third quarter. yes. gone fast this year. third quarter starts next week. can we put the past months

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i'll bill griffin. coming up at the top of the hour, we have the angles covered. how will the decision affect the health insurance industry? ceo joining us coming up live an now that chief justice john roberts characterized the rule as a tax, could that end up backfiring on democrats during the election? that man right there house minority whip steny hoyer join us live and we have dallas fed president richard fisher joining us telling us why the latest moves may be doing more harm than good. mandy, wait until you see who's ringing the closing bell at the new york stock exchange today. all that coming up at the top of the hour. >> you're teasing me. wait. it is a tease. perfect tease, bill, because now i'm going to tune in to see. >> ironman guy. >> close. >> close? >> is it ironman? >> you're getting warm, brian. that's all i'm going to tell

you. >> okay. aquaman. >> we have to tune in 4:00 p.m. i think spider-man. down beat markets today for a variety of reasons. but which ones could pose a threat to long-term profits with qe3 to think about? joining sus john brady of rj. i don't want to belabor the point and find out the negatives most negative today. i'm more interested in putting the quarter behind us. what do we do setting ourselves up for next quarter and make some money here? >> mandy, unfortunately, i think politics continues to sort of cloud the whorizon, it is challenging. the opportunities still in beaten up sectors, for example. natural gas and commodities with a shelter in the storm. the thing i think lost in today's data and the supreme court was q-1 economic data specifically consumer spending was revised lower and that sort of suggests that the second

quarter is softer than anticipated. and third quarter data soft, as well. so there's a lot of news cross currency events taking place. europe on the mind and the banks and the economic that da that taking another turn for the softer side unfortunate. >> the consumer is in a funk. the investor in that funk. what does it take to bring back as brian said many times on this show the faith, the mojo? the interest of the individual investor to the market? >> i think really in the month of july, mandy, ahead of the early fmoc meeting, seeing jobless claims stabilize and maybe move lower and nonpayroll above 100,000 and down tick to 8.1% with stronger wage da to help the cause. you are right. morale is low in the industry and across the economy. but when it's darkest, some light can really be bright light and we would like to see a stabilization of job market and

maybe a good june employment number. >> like to see that. let's wait and see if we get it. thank you very much for the most check. >> thanks, mandy. could the euro zone's continued mess provide a boost to jobs in america. ? today we found out that europe's airbus may be planning to build a huge factory in mobile, alabama. phil lebeau is here. phil, is this going to happen and symbolize -- i'm a little tired. sorry. does this symbolize the europeans are tired of the problems they're having in europe and decide that america maybe better is the best place to do business? >> first of all, it is going to happen. i have confirmed from sources that airbus will build a plant in alabama. needs to be finalized but it is going to happen. and why are they doing this? a couple of reasons. one you mentioned the problems in europe. it is no secret everybody's seen this over the last couple of years. move over here with the production and manufacturing and

you have got a lower cost basis. wages are much more competitive. manufacturing in the u.s. is more competitive than it used to be and closer to north american airlines and broaden out the footprint. you look at airbus, they have had two plants in europe, francer and germany and then china. it makes sense to broaden out to go one other place, the south is where it will be -- the wisest choice and they have a facility down in mobile. employs a couple hundred workers where they do retro fitting of bins and other work on the existing aircraft. this makes sense there. remember when they bid on the tanker project and lost out to boeing and at the time they said, listen, we'll do the work down there in alabama. you can bet in the future when they bid on defense contracts it's going to help that they have an existing facility in the united states. >> yeah. do we know have an idea of how many jobs? big -- one of the stories i feel

like if it was any other day, not bank day and obama care day and this would be a top story. >> right. >> how many jobs are we talking about? >> they're not saying but a good footprint to look at is charleston plant that boeing started for the 787 production. that employs roughly 5,000 workers so you are looking at somewhere in the range of 4,000 to 5,000. they're building a narrow body plane down there and starting out small. could it expand? yeah, absolutely. >> narrow body? do they know it's for american passengers? >> that narrow body market, the 737. you don't like flying the 737? >> you met me? >> short and medium haul route it is way to go. if you think that's bad, get on the computer jets i get on now. that's what i'm flying. >> not short and medium. he is long haul. >> let's be polite. keep it clean, everybody. phil, i feel your pain. i'm flying to chicago.

your town tomorrow night. i think on a butterfly or something like this. i got -- riding a unicorn. >> taking the regional jets to detroit on a regional basis. >> let's hope we have lots of jobs created. thanks very much. >> my favorite story of the day. >> another great news story. >> you know the problem? airbus factory? >> what? >> i'll reiterate a joke. labor regulations. too loose. >> i'm laughing. >> you're only laughing because of the vodka. >> i'm contracted to laugh as your co-host. >> is that true? >> on air anyway. coming up, big deal for research in motion after the bell. we have josh brownback to defend the position on rim. stick around. >> poor josh. 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.

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all all right, look -- gosh, that is really ugly, folks. that's the way it is. you see that only six of the nasdaq 100 stocks are higher. that's joy global, express scripts, and netflix.

>> and rimm is releasing results. it has been a brutal year. they're down 38%, and the company expecting to report the first quarterly operating loss in more than 70 years. joining us is the managing director, and josh browne, he for some reason chose rimm as a pick back in april, and he is sticking with it because he is wearing the hat as well. >> i would never have bought this in real life, but i thought it was a great risk reward for the contest. i think what is interesting is this is a sub $5 billion market cap, and there are estimates of $1 million to $4 million of what patent is worth. there needs to be serious e-mail

secrecy changes. we need a transaction. we have to turn it around, they have to sell something. >> that was going to be my question here. you say they're sitting on this gold mine, right, but they're just sitting on it. when will they stand up and unlock it? >> they have to throw in the towel. people are telling them at this rate there is nothing less so you should do a transaction. i think something has to happen, they cannot turning this thing around. >> who would want them, is there anything that would want rimm? >> there's $4 in cash, $4 in patents, and $4 in the service revenue. i think what's the risk is the cash being burns and the value is clearly going lower. i don't think that anyone is going to want to buy this

handset business. i'm looking if you want to look down the road at a potential positive catalyst, i think an announcement of a samsung, or hg cell phone is probably the next positive catalyst that could happen in the next six to nine months. with google making hardware now with motorola, and microsoft -- >> would they be a potential buyer? >> you know, i think it's going to be really tough to count on somebody buying this business. i don't think the rimm eco system is going away. there are 77 million users here, they're endrenched in the government and the enterprise. it's not going away, but i don't think you can count on someone

coming this way. >> josh, if you had to do it again, at this price, would you buy rim? dollar cast average down. >> i will call for an imaginary average down. >> i'm on your side. if you're going to put the hat on -- >> you're not the only one that's done pretty badly. and i'm not doing to well with facebook either. >> i'm wearing it with prize, we'll see you in february, and who knows maybe something will happen. >> we have full coverage -- >> no, it's unlikely to be earnings, it's probably going to be loss coverage. >> we have full loss coverage on the "closing bell." >> and general motors down, comments about the european crisis and gm is at it's near

low point. watch gm. up next, broadcasting your world with google glass.

the worst performers right now is jpmorgan chase. united technologies also down. the cleanest dirty shift, kraft. >> okay, forget the