final trade, john? >> mdr. >> joe? >> don't catch the falling knife of hewlett-packard. >> mike? >> ip. >> lly. >> i have no idea. thanks, guys. sorry. that does it for us. "power lunch" starts right now. "halftime" is over. "power lunch" and the second half of the trading day starts right now. thank you, brian. jpmorgan's whale of a problem got worse today. the earnings weren't so bad and pretty dog gone good but just about everything else was and guess who's weighing in now. here's congress. they usually help things, don't they? we'll hear what they're saying and we want to hear from you. clawbacks are coming at jpmorgan chase. do you think it's fair for companies to claw back payment of employees who lose one for the company? yes or no? go to finance.yahoo.com and tell us what you think. the results coming up. but first, to simon who's in

for sue with bob pisani on the floor of the new york stock exchange where stocks are moving higher. >> indeed welcome to the floor of the new york stock exchange for the seventh day the bears rested. 170 points higher on the dow. bob, is this short covering? >> oh no. there's fundamentals behind it. hitting 200 points up on the dow, we'll break even for the week. as miserable as it's been, we're on the verge. let's call it the just good enough rally. china gdp 7.6%. that's good enough to help the commodities market. jpmorgan and wells fargo market, good enough for financials. we need them to do better in the second half of the year and then a pullback and helped the commodities market overall and then finally simon, art told me yesterday to rally. the reason? moon cycles. the new explanation for everything. shades of -- moon cycles. >> in fairness -- >> forget china gdp.

>> the financials are flying down here, ty. in the wake of jpmorgan and wells fargo results. >> and i have an interview to explain to us the moon cycles. i want that suit, tyler. hugo boss. >> i have a case to try in charleston court. checking back in with you. now to jpmorgan and the whale. the stock is moving higher all day. i can't see it and can't tell you what it is. but i bet you you can see it. >> $2.06. >> we have mary thompson. since the story of the trading losses broke this spring, the stock is down about 17%. that's about $25 billion in market value and here's what we learned this morning. jpmorgan now on a trading loss of $5.8 billion so far. traders at the chief investment office may have tried to hide their losses and the whale hard

to hide if you're a whale, the whale bruno iskil has now lost his job and here is how jamie dimon sounded on the call this morning. >> in spite of this accident, this event did not change what i think is a bedrock of jpmorgan chase for the last five or six years. we believe in a fortress balance sheet and management. we believe in high capital. we think we have a strong and diversified business mod thael's a source of strength and not weakness particularly in the storm. we think we have a very disciplined and detailed management team. all of whom are sorry we missed this thing. we are not proud of this moment but we're proud of the company. we're not making light of the error and we think it's an isolated event. >> isolated event. now to the clawback question. over the past few days we have heard about the possibility that jpmorgan might take back some of

the pay packages received by key players involved in the firm's trading loss. mary thompson's been doing digging to see if the formula could soon apply at other firms, as well. mary? >> compensation consultants are saying that this strategy liking used as a template of other wall street firms. the move significant because it's first firm to claw back funds at such senior levels and disclose it publicly. they're clawing back what they say is the maximum for those affected it's giving back two year's of total compensation. restricted stock and canceled option grants is what makes up that clawback. this is not unexpected. for tax purposes and from a legal perspective, easier than trying to get an employee to return cash deposited in an account over used to pay for a car or house. a leading governance expert at the university of dale ware says it makes sense as incentives must work both ways.

as far as being a deterrent to other traders to take outsized risk. he says what it tells is it's not heads i win, tails i win on wall street. the three managers whose pay is clawed back -- bruno iksil known as the whale and javier martin-artajo. ina drew retired as head of the unit responsible for the losses in may and jpm said drew gave back to two year's pay and drew was one of the five highest paid executives pulling down $15.1 million. as for the pay of ceo jamie dimon and others with oversight, the bank says the 2012 compensation and possible clawbacks considered in the ordinary course of business this year and if they happen they'll be reflected in the year end pay most likely. >> thank you, mary. the tough clawbacks drawing a lot of attention on capitol hill as you might expect. many there are frustrated how

people on wall street are compensated. eamon javers with more. >> reporter: it's proving popular on capitol hill, particularly in the senate where democrats are in control. here's what tim johnson had say, releasing a statement this morning saying it shouldn't take a congressional hearing for jpmorgan to realize that bank employees should not be rewarded for excessively risky behavior and the bank should hold everyone involved in this blunder accountable. again, that's tim johnson, the chairman of the senate banking committee speaking there. clearly, tyler, this clawback issue is part of the reason why we're not picking up any intelligence that there are any additional plans right now for more hearings on jpmorgan up here on capitol hill. i'm told they're not ruling it out necessarily, but no plans for new hearings on jpmore began here in washington to politically it seems to be what they're intended to do, tyler. >> thank you very much.

wells fargo with the numbers and let's urn the to ed ponsi. ed? >> tyler, everyone's very happy and the stock's up 6%, wells fargo but no one's talking about the fact that some of the traders apparently lied about marking things to market. just too much drama going on at wells fargo for my taste. at jpmorgan. i prefer wells fargo's stock. much less drama. >> trade earls not mismarking things. that was taking place at jp mor m began is the allegation. >> too much drama. i prefer wells fargo. >> simpler bank, basically. more of plain vanilla banking. mortgages, lending and so forth. >> much less exposure to the drama. >> let's check in with simon. let's put it altogether now. the trade, the clawbacks what it

means for jamie dimon and the man at the top yet to have his pay clawed back. cnbc.come editor john carny joins us with tyler and american bankers neil wineberg is also with me here at the nyse. john, let me start with you. in plain speaking terms, what jumps out? >> well, i have new information i just got off the phone with sources at jpmore began chase given me the size of the original markings. remember, today said we have to restate our earnings by $495 million. so the question was, what were these trades originally marked down to? i'm told by the sources they showed a $12 million loss. 0 there's a tremendous gap between what the traders had shown on their books to their superiors to people like jamie dimon and what it really turned out to be. remember, that went from 12 million to 495 million. it's big number. >> okay.

okay. let me come then to neil who's standing next to me here. you believe that the clawbacks are a joke? >> well, so far, they're a joke. if jamie dimon say i'm the guy, the buck stops here. give up his pay. you can throw the lower level people under the bus but ultimately somebody should be overseeing the people. as ronald reagan said, trust but verify. where's the verification here? >> the board may do a clawback. that's what we're being told, tyler. >> yes, no, exactly. i think that dimon said and others, john carny, we'll see about what i get clawed back later this year. right? >> i think that the clawbacks are a game changer. this kind of clawback did not happen on wall street before. people thought they were things put in place on paper and never really put in practice. jamie dimon is showing us they're putting them in practice. they're serious and they may restrain bankers doing this in the future. >> so is this better or worse for jamie dimon? >> i don't know. it strikes me as kind of

throwing the lower level guys under the bus. the clawbacks on the books since ten years ago and maybe what we're learning here is what something from the british, namely the guys at the top have to give something back. >> for the moment, back to you at hq. >> thank you. clawbacks the right move or not? ask republican congresswoman which grilled jamie dimon about the loss. congresswoman, nice to have you back with us. >> thank you. >> are the clawbacks proposed or put in to place at jpmorgan sufficient in your view? >> well, i think at this point at least the most involved actors are having their compensation clawed back and i think that's a good thing. the purpose of the clawback i think to demonstrate to the industry that the behavior has l

have consequences and hit you in the pocketbook so i think that's effective because they have acted quickly or -- and in a big enough way to make a statement. whether it will go to the highest reaches as say mr. dimon or others, i think that remains to be seen. that's an open book. and i would say that the story hasn't fully unfolded there. >> congresswoman, turn to something of a more lasting importance than this story and that is the so-called fiscal cliff. if you could offer one idea that would help solve the issues that the country faces in that regard, what would it be? >> if i could solve that problem i'd really be a genius but i would say number one drop the partisanship. we can't do this. we have got -- this has to be an all-in proposition. nurm ber two, tax reform and simplification. i think those two elements have -- are critical at the end of the year. i remain obviously optimistic

but not without -- not with a political sledge hammers over each party's heads. that will just -- that will break the agreements quickly. >> congresswoman, one of the things that the american people might expect you to do is put in place a regulatory system that will protect them when so many have suffered in the wake of mf global and recently peragrin financial. why are they intent on weaker and slash the budget from october the 1st from what the white house and the senate is proposing of $308 million down to $180 million in that would seem counter intuitive seeking to protect ordinary americans. >> well, i don't think that more money in to a regulator equates to better regulation. let's look at what happened to jpmorgan. 90 folks from the general reserve and others right there

and they didn't see this. if we don't use the dollars effective i don't care if you have twice as much. it's not as effective. i think what we need to see is smart regulation to keep ahead of the innovative folks in the financial realm that try to stay one step ahead. i think that would be a much better placement of our resources than piling on more and more money. >> congresswoman, surely the case if you halve the budget for the regulator, it is less able to regulate. >> well, i'm not certain that that's true. that's what i'm saying. let's look at education as an example. we pile money on to education and are we better educating our children? i think generally speaking we feel not really. and, you know, we're not saying as republicans don't regulate. i think we want to see regulation. are we disappointed when they fall short? yes. i think we have to not only do we want to look at the financial

firms and put them on a regulatory microscope but look at the regulators to make sure that they're properly focused, staying ahead of the game, they have the staffing and the expertise and the technology to do that and so i think, you know, we're cutting back everywhere and i think more efficient regulation is going to be the key here. >> congresswoman -- >> not less regulation. >> thank you for being with us. we'll have you back with us again very soon. >> sure. thank you. >> do you think it's fair for companies to claw back payment from employees who lose money for the company? go vote. and watch for the results on "power lunch" a little bit later. now for a market flash with brian shactman. >> smoke 'em if you got 'em. looking at tobacco stocks. raising the targets. was negative on phillip morris and lorillard.

the key thesis is domestically focused. not european exposed. phillip morris is less positive on that name. back to you. >> thank you very much. the markets really on a tear. the dow up 174 points. have we hit a bottom? if at least a short term bottom. that's coming up in the program. also ahead, more reasons i'm afraid to worry about corporate america's exposure to europe. you'll want to get ahead of the trade right now. before the break. five big movers. heading in to the weekend. ♪

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if this week taught us anything, the bull market continues in treasuries. 1.5% on the yield of the 10-year. let's get to rick santelli at the cme. >> thanks, simon. that bull market you talked about might continue. i wish i knew who that big buyer was on the 10-year auction. they think a shot at 1%. looking at a one-week chart, 155. last friday, 149d now. just about 150. call it down a handful of basis points. i always like to look at the end of last year and said last year around 187, 189. we're roughly down about 35 to 37 basis points considering where we sit and that's rather substantial. it wasn't the area that most economists, analysts or even maybe myself thought we would be.

looking at etfs, we know we have the down equity market outside of today but look at how the corporate quality investing in -- investment quality incorporates is based on the etf. lqd. not only up, it is way up. and if you look at the mob, this is for munis and san bernardino and one thing that didn't survive is people had at mf and, you know, "power lunch" would like to extend an invitation. we did today but he wasn't on to cftc chairman gensler and just have your people connect with our people. maybe we can talk about how so many people have less money now. they regulate the markets. back to you. >> thank you very much. we knew auto sales in europe were not going to be pretty but could they have been the worst we have seen in more than two decades? fill lebeau is live in chicago

with the break down now. >> reporter: petty bad and may not be getting better any time soon. fresh data of ford and volkswagen of europe, start with ford, the company saying sales dropped 10% in the first half in europe. the europe sales also down in june, 16.1%. ford says the auto industry overall could have its worst year or worst first half in europe since 1994. as for volkswagen, first half sales up 1.8%. not surprising, the german automaker is doing better over there but the second half is more challenging. take a look at shares of ford and volkswagen. we have seen this in the industry comparing the german automakers with the other automakers and speaking of the other automakers, look at this chart. peugeot in the last year down 38%. moody's looking at the debt rating. the french automaker said it's closing an atlanta and slashing 8,000 jobs and in serious

control right now and moody's reviewing the debt rating. tyler? >> thank you very much. more markets when we come back on the rally day after the break. we are moving up. if you bet on leveraged etfs, you are in really good shape. look at that. etfs on the run. right there. next up, we are going to analyze the analysts on the list today, lots of housing stocks. [ male announcer ] let's say you need to take care of legal matters.

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welcome back. i'm brian shactman here at the markets desk where the blackstone group is buying $125 million of land and increasing the equity stake. and this is the quote from blackstone representative. we firmly believe that the u.s. residential real estate market bottomed and uniquely positioned to capitalize on the recovery. tyler, to you. >> on a $3 stock or less. brian, thank you. let's analyze this. shall we? ed ponsi here for the last round of the week. >> going to miss you. >> it's been fun. to buy from neutral. the firm now quote forecasting acceleration in home sales growth in the fall of 2012 which should support further upside. buy it? >> i like this call. seeing good news in the housing. lennar is the best pick of the

bunch. kb home is okay on a speculative basis. overall i like the call. >> we could have said a better call 50% ago. right? >> they downgraded polte and tripled since october. >> citigroup gyp grading kinder morgan upping the price target to 39 bucks quoting shares appear undervalued following the significant underperformance since the end of march. >> i agree with this one, too. technically speaking, this is an upside down head and shoulders. very bullish pattern here and a six-week high as we speak and little bit fundamental and technical and rising oil prices are supporting here. >> you agree with the call? >> i do. >> down 3%. goldman sachs downgrading discovery communications saying contracting on weak ratings,

peer-high euro exposure and competition from the olympics. past week discovery down about 5%. a downgrade of discovery. what do you say? >> i might have to do a little bit of myth busting here. i don't think that's going to hold. you see, first of all, we know that the olympics are coming. two weeks out of the year. i don't think it's that big of a deal. they are correct of concerns of the euro and advertising revenues. the stock's down 10% in 10 days. why downgrade it now? >> we disagree with the call. thank you vur much. the metals markets about to close shop and we'll hit the nymex next. what's making mark zuckerburg so giggly? he has a lot to smile about. [ male announcer ] summer is here.

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and in the closing minutes of the metal session here in new york, gold eyeing 1600. get to sharon epperson tracking the exchange at the new york mercantile exchange. >> looks like the closest close for the week and not the 1600 level which the bulls were aiming for. of course, the stimulus hopes that have now been raised once again due to the weak data out

of china on the gdp growth and driving the gold rise as well as the rise in other metals and other commodities like oil, as well. not only watching stimulus of china but more in the u.s. and of europe. and we are looking at prices that again for gold will perhaps revisit the 1600 in the next session. we need to close above that level to extend this rally. looking at the other metals, copper, global growth scenario there, that's the key bellweather and leading the charge there in the growth of the metals in the upside and today's session and see if that continues in the after hours session. back to you. >> after a rough week, it has to be said. >> absolutely. >> thank you very much. still up substantially on the dow, 167 points. the important thing to realize is the breadth of the move and the potential importance of the move after six days of losses, bob?

>> five to one advancing to declining stocks. this is the kind of rally we haven't seen at all in the month of july. look at the major sectors moving today. right across the board. look at that. nice moving here. 1.5% and 2% on the financials on the strength of wells fargo and dollar decline. acceptable numbers. you get a nice rally. home builders, new highs on the etfs. wells fargo with positive comments there. upgrades. that's a three and a half, three-year high for the housing index. health care stocks doing well today. they broke out last week on the supreme court numbers and merck, eli lilly and hcp at a new high, as well. newspapers rallying. warren buffett said he was open to buying more newspapers and got a move up in that group, as well, simon. >> thank you, bob. the nasdaq almost keeping up with the other indices' gains.

let's get to -- technology stocks almost keeping up. let's get to the nasdaq with seema mody. a good finish for the stocks. >> a strong recovery for the nasdaq. look at the chip stocks outperforming right now, simon. the big question on the street is this just a short-term bounce or a sustainable move to the upside to continue to build on? only time will tell. look at some of the movers here. celgene reporting favorably of a drug application filing in the first half of 2013. good news for the company. that's why the stock is up. look at okay me packet. a buy back of $200 million of its shares. over the next 12 months. lastly, i got one loser for you, green mountain coffee down 9.7%, falling after cutting the earnings estimates on the stock citing increased competition in the division and that's why that stock is down. back to you. >> thank you.

new numbers telling a familiar story. it's been a rough year for the video game sector. sales down significantly there in the past year, electronic arts is down 50%. take two interactive down 38%. activision, well, basically up 1.6%, roughly flat. julia boorstin is live in los angeles with more on the new data of the state of the industry. julia? >> reporter: well, tyler, june was another horrific month for video games. retail revenue plummeted 29% according to npd. console makers suffered the most, down 45 pstz last month of a year earlier and sales of the games dropped 29%. but according to npd, those suffering sales just about half of the total spend on games. mobile and social games like zynga and downloads generated another $491 million in spending. so, there is no question that

the industry is shifting to mobile. npd says 57% of smartphone owners play games on the phones every single day. tyler? >> julia, thank you very much. let's go to ed ponsi now to play the gaminger a yeah. >> hey, ty, listen. ea has been hammered but now that stock is trading at less than one times sales. that's very cheap and makes ea a speculative buy. the chart looks terrible but a speculative buy. now, you take a look at activision. activision is valued three times more, a ratio of three times higherer and earned it with great gails like call of duty but one thing that interests me is zynga. a high valuation but they don't really why that sort of sales growth to back it up so i would be very concerned of zynga going forward. i like ea as a speculative buy and act ivision. >> all right. now to simon.

>> flashing at the bottom of the screens, looks like the head of risk management at jpmorgan has gone. acted with integrity and asked him to leave. the guy in charge of sorting out the affair now in the call said risk management would get more authority. they need a change of guard here. joining me at new york stock exchange, neil wineberg of american banker and also mike mayo celebrated bank analyst asked a direct question of jamie dimon. has jpmorgan reached a tipping point in terms of size or complexity to make it more difficult to manage? dimon very pointedly replied, no. >> well, obviously, he's going to say no and said that it was sort of short-term thinking to think that the bank should be broken but you have to wonder, simon, can anyone manage this? now they're saying risk management is a problem system wide? i don't think anyone can manage the institutions. they pose a systemic risk to the

system and so did long 46 term capital management and no one heard of them before they blew up. >> you said that the politicians will not challenge the big banks in america. why? >> sure. >> why? >> they're big political contributors. at senate, they were cow toeing to me. how should we be managing the banks here? what would make the system better? it was frankly pathetic. holding the hearings to get to the bottom of a scandal that's not how you do it. >> do you believe the people on capitol hill acting with the best interests of america and going that far? >> in an election season, simon, i don't think so. >> that's an incredibly cynical thing to say for women and that are good and true. >> they have a political interests at stake but they also in some cases they feel that what jpmorgan needs is to be left alone. other people think they don't. these are large institutions

giving to parties and you would be naive to think they didn't. >> earlier on the program, we spoke to a republican congresswoman who defended the fact that the republicans are seeking to cut the budget for the cftc, the regulator of mf global and certain parts of the industry, not all. to cut it from $308 million proposed by the white house and the senate to roughly in half to $180 million. is there a way she can be fright you push it that you can still regulate as well with half the money if you do it in a better fashion with greater technology? >> i think it's possible. obviously, to get more out of it. but what we have here is a system that's so complex that obviously no one has been very successful in trying to oversee it and i think part of the problem is it's increasingly complex. dodd-frank is an example of that. going to a couple of very simple rules and severe punishments of wrong doers and easier to implement than the thousands and thousands of pages and hundreds of millions of dollars

additionally to bureaucrats to micromanage the system which is impossible. >> neil, have a good weekend. tyler, back to you. >> thank you very much. to the housing crisis once again and what may be a new way to address it. we reported yesterday, of course, about san bernardino, california, and filing for bankruptcy protection. now, the county may have a new plan to deal with homeowners who have had their homes foreclosed upon them. a meeting on the proposal is happening right now. diana? >> reporter: that's right, tyler. all about imminent domain. county officials are debating this. unprecedented way to use the powers of imminent domain and unprecedented times in the housing market. governments can use it to take property from private owners paying fair market value. the idea to turn that property around for the public good. in this case, the county would go a step further and seize underwater mortgages. they wouldn't tear the house

down. reduce did principal on the mortgage to the home's current value to continue making smaller monthly payments and not end up in foreclosure which would be a blight on the community. now, they would have to take the mortgages from the investors who own them now then resell the reduced loans to other investors and plan to make many of the loans fha loans, backed by the government and that's where you will see the challenges. as the current invest to recalls will, of course, cry foul. it's all backed by a san francisco-based venture firm, resolution mortgage partners hiring westwood capital to raise the money and go to pay the current investors off, again, at that reduced loan amount. borrowers would have to be current on the payments and not about helping those already delinquent but it could also negatively affect rmbs performance to increase risk. for ever more details it is on the blog. simon? >> diana, thank you very much. if you've just switched on

cnbc, thank you for doing so. these are the headlines. u.s. consumer sentiment fell in early june to the lowest level in seven months. producer prices unexpect antly rose in june. the index inched up .1% last month. china's gdp is slowing and slowed in the second quarter. grew 7.6% compared to a year earlier, this's the weakest pace of expansion in three years, tyler, for china. back to you. >> thanks. let's go to brian shactman. >> looking at shares of sachs at the lows of the day. bank of america, merrill lynch doesn't like what they have seen since june, downgrading the stock to underperform seeing trends slowing and reducing the price target to $9 from 13. back to you. >> thanks very much. when we come back, we'll check in with traders on the floor and see how they're

playing the big market rally. the dow up strongly today. we'll see why some of the wealthy are in such a hurry to sell their homes. we'll explain why in a moment. the general economy in the united states has been more or less flat. it's not growing at the rate it was. >> we think it's the most predictable economic crisis in history. these deficits are like a cancer and over time they'll destroy the country from within. >> i was just listening to the panel on cnbc and bowles says he thinks we are going over the cliff. there's so much money running for safety because there's so much indecision of where the future's going. today, our financial advisors lead from a new position of strength. together with bank of america,

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here's what america thinks in our poll today. 62% said, yes. 38% said, no. i suppose it depends on whether you're talking about bankers or perhaps cashiers in stores but those are the figures. now to brian sullivan to see what's coming up on "street signs" at the top of the hour. >> thank you very much. first off, though, earnings pa loo za. we'll look at head to a bigger week next week and help you position your portfolio. the jpmorgan mess, right, can that be traced back to the way banks pay bonuses? does playing with, you know, house money in a way increase stupid bets and big losses? and battleground costco. herb looks at the changing demographics of the american family and could impact costco. now back to tyler on "power lunch." >> thank you very much. we have some breaking news. lit's go to scott cohn in iowa. scott?

>> reporter: russell wasendorf, founder of pfg is arrested. beginning back in 2010, and continuing until july of 2012, so presume blue through this week, you will remember he attempted suicide on monday. he was moved in to a psych ward within the last couple of days. clearly, is released from there and now in the custody of federal authorities, he will go before a federal judge later this afternoon in cedar rapids, iowa. the appearance scheduled for 5:00 eastern time. details as we get them, meantime a u.s. bankruptcy judge in chicago has -- is allowing the company to keep going with about 56 of its employees not including wasendorf or his son in order to wind down the business and presumably let customers get the money out. $200 million or so in customer

funds remain missing. again, russell wasendorf sr. arrested. back to you. >> clearly, scott, physically, well enough to go to court. must be the inference of what's being done here. >> reporter: that was our understanding was that first of all obviously he survived the suicide attempt and then there is a process in the state of iowa about a 48-hour commitment process that he had to get through and at that point the federal prosecutors, the fbi, were standing by ready to arrest him as soon as the hospital gave the go-ahead. >> thank you very much, scott cohn in iowa with the latest. let's look at where we are on the dow. a powerful rally today. up 174 points. joining me here at the new york stock exchange, steven gillfoyle. trying to gauge -- this is clearly a broad based rally. is this a turning point in sentiment, do you think? >> very possibly. i mean, where we saw out of

china last night gave a positive spin this morning, possible easing out of the pboc. that's in the offing or maybe fiscal easing in china and then the earnings of the financials today. positive wells fargo and for jpmorgan looks like it's under control. the stock's up $2. the financials probably leading the way today. worst performers is probably utilities. >> right. okay. so it's kind of a mishmash, isn't it? basically seeing everything on the positive. growth is slowing in china and i assume that the pboc will do something if i look at when's happening with the financials more short covering their buying in to the long-term growth story from what you appear to be saying. >> you have a poor consumer sentiment report today and looked at more closely than i have ever seen than before and people hoping when ben bernanke speaks next week tuesday to the senate and wednesday to the house they're looking for still some sign of easing from our own

federal reserve which i'm not saying that's going to happen, i don't think it's going to happen but some people are starting to talk about it. >> doesn't matter whether it happens or doesn't matter whether it stimulates the economy. just similar playing it is a signal to buy. it's self fulfilling for you guys, a trading rally. >> like you say. a rally in equities and a better economy are not the same thing. he can spur a rally in equities by the slightest hint next week. now, making the economy better, igniting the economy, that's a far different thing. >> your weekend's almost started. thank you very much. >> my weekend's -- yeah. >> more meridian. a market flash with brian. >> ra, a $100 million market cap. freight. their shipments up 3.7% and the stock is up 6.3%. carloads are a surprise to the upside. weakness of metals and coal as you might imagine and agriculture really sparking their gains. back the you, simon.

>> thank you very much, brian. next on the program, see where mark zuckerburg couldn't stop cracking up. and the market's giving the bulls reason to smile today. here's five big dow movers. we're back in two. tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones.

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when you have a billionaire boy wonder, every move is caught on tape. trying to go out to dinner. he got caught in sun valley's rush hour. ah, welcome to the cross bronx. the suv behind the hotel's luxury vehicle and couldn't budge. the photographers snapping picture after picture. that seemed to make mark's day. i wonder if he can use a stick shift. i doubt it. time for today's rundown and the dynamic duo is back. take three items here. jpmorgan clawing back bonuses back from the managers responsible for the london whale loss and no severance. is this the right move for everyone involved? they had a bad trade. should they pay for it personally? >> absolutely. remember, this wasn't just a bad trade. we know they were mismarking the books. the managers above them should

have it clawed back. clawbacks are a very good way of making people think about the risks they're taking. it is not just i get paid. leave the bank and run away with the money and they lose. >> you didn't do as well. why not claw it back? good idea? >> absolutely. this is the right message to investors and traders. but i think that the mistake on this one is it should have also applied to jamie dimon we'll see whether it does eventually or not. the claws are back. lawmakers agreeing on something for a change in washington. they're bashing the new olympic uniforms. ralph lauren. because they're made in china. should team usa be wearing made in china? cindy? >> i mean, this is one of the biggest missteps. come on. not the first time at this fashion rodeo. right? this is one of the most patriotic events. what do we chant? instead of usa, c-h-ina? get it done in america. no excuses.

>> the hats are goofy. >> the big problem is not made in china. i'm relatively open to free trade. if china wants to make the uniforms for cheap, that's fine just why do they have to be so ugly, ralph lauren? not good. >> not good. let's move on to the third one. a secret weapon on wall street. testostero testosterone! a smart move? cindy wrote object it on cnbc.com. she has customers coming to him. my muscles are sore. i don't want to play with the kids. my creativity is slipping. i don't wake up with morning erections. that's a first time that phrase is uttered on cnbc. you don't get that on lou dobbs. >> right. smoke 'em if you got 'em. if you can feel better, feel ten years younger, legally in a fiscal cliff; do it under the doctor's care. >> i have to say, a hulk smash,

give me tises to rhone. >> he is more aggressive around the office. >> this is a big business. >> this doctor, the most interesting angle for me this doctor said doing a botox business, that all but dried up in the recession. when he turned to tess to rhone, he said we opted out of the recession. tyler, how many companies want to find that opt-out button? >> leave you with this note. the doctor saying i said to that cuer, wake up with in the morning and the only thing stiff is your back, you should be taking testosterone. i leave it there. cindy, john, on that happy note -- >> quite a show. >> see you next week. >> the dow taking testosterone! now lost in the jpm trouble, loans and refis showing signs of life. we'll run through the numbers. take that!

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with two hours to go on the trading day, hanging in there. the dow 173 points higher. off the highs of the session. but that's not bad after six days of losses. maybe that's why we're higher. jpmorgan, of course, reporting today and that continues to gain

6%. bear in mind, though, where we have come with that particular scandal still down 17% over the last 3 months. tyler, i want to say one thing to you. in the course of the financials and reporting next week, there you see the way in which they have raised them higher on the session, one thing to you, tyler, a journey for me watching you here from the new york stock exchange in a white suit. one point you raised your hands high like this and like a biblical character and transfixed by the goodness and talking about testosterone. >> you are the person who gave me the courage to wear this ice cream suit on tell vig. you said, it looks good. i said -- >> what i said is white suits look good on television and don't wear them in the streets. if you remember. >> simon says, tyler follows. >> the man who had to choose finance for a career. >> amazing. >> watching the financials next week and other big blue chip companies. >> a lot going on next week. beyond