going forward. >> star becomes, amazons and maybe apples yesterday reflecting a more tentative consumer. thank you very much. this will do it for "power lunch," sue. >> i'm headed for starbucks here. "street signs" begins right now. welcome to "street signs" where it's bizarre-o day because the bad guy is the usual superhero apple and many mid-cap heroes are coming to the rescue. mabel it's ben bernanke. is it fed to the rescue? plus, citigroup's former ceo telling cnbc it is time to break up the big banks. we'll bring you a washington insider who says it could really happen. and is netflix have a successful sequel ahead or the next act flop? a top analyst is here. all right, everybody. mandy is off today. will be back tomorrow we hope.

here's how things look right now. the dow up a bit on stronger than expected earnings. even though cat has erased the earlier gains. by the way, it's the fourth down day in a row for the s&p 500. it erased earlier gains. posting the worst month in a year and apple having the worst day of the year. it is the single biggest component of the s&p after last night's big earnings miss. at least three brokerage firms cutting the price targets onnal. here's brian shactman and rick santelli. brian, what's topping the radar? >> it's fascinating. we're up 100 and people wondering why. stock stories are dominating. caterpillar, really the stock of the day. take a look at an intraday chart. went down and now back up again and basically near the highs of the day. so it's just -- that's what's pulling the dow higher in the

last half an hour. other stock stories, con cophillips. the profits were down. so with oil where it is now, what does it mean for the third quarter? could be a bit of a headwind there and ngvc, the ipo today. like the mini whole foods if you will. up 21%. very solid. whole foods reporting after the close. keep an eye on how strong it holds up. gold up 2% and the gold stocks up more. harmony an example, up 7%. obviously the qe3 feeling of late yesterday filtering through gold. and health care, wellpoint, dragging down the sector. down 12%. everything else down low 3%, 4% plus is a drag on the sector. >> thank you very much. i'm never invited to be a dinner guest at the santelli

household but i would like to particularly last night. perhaps you read the story of the fed to stand pat and go forward on this qe3 idea. what was the conversation like at your house last night? >> are they really going to do more? you have to be kidding me. yes. that was the conversation at my house. >> will it work? >> listen. listen. i think that even the most optimistic fed watchers say things like, well, we have diminishing returns. you know, that's code for, you know, we are not sure if it worked before. we don't think it's going to work nearly as much the second, third or fourth time around and there's some great research which i talked about on the santelli exchange that refutes the idea of conditions and debt to gdp is high that the type of stimulus that creates more debt doesn't stimulate anything and there's a couple things to talk about. eagen jones downgraded italy fourther in to junk.

maybe that's not a surprise but breaking news nonetheless. second thing, another auction today, five-year. record low yield at the auction. even though it's still several basis points from the record low we set in the market yesterday. maybe the third thing we really surprised me, you know, we always hear about how the chinese juan is undervalued. look at the chart. the dollar at a nine-month high versus the chinese currency. trying to ease to get their demand back up and paying attention to exports because they're obviously not trying to strengthen their currency. >> why do you think, very quickly, the downgrade is not moving the markets more than it is? because everybody already believes that italy, spain, whatever are in trouble enough? >> well, listen. i'm not going to bash the rating agencies. i think i see no market reaction, what it tells me is the markets continue to see nothing good coming out of

europe and even with some of these plans and leverage plans aside that we learned at 3:00 in the morning last night it's bumpy going for europe in particular. you know, telephonic in spain cutting dividends and buy backs. traders are putting the pieces together. sorry about the bells. i think right with the rating agencies. >> the bells are perfect. hemming way would be perfect. perhaps the bells toll for europe. >> there you go, buddy. >> rick, thank you. well, the s&p 500 may not be making a big move right now. it did just turn positive but don't be fooled. there's a big battle behind the scenes. you have apple, disappointing the quarter. big ben bernanke "the wall street journal" reporting the fed might be closer to stimulating the economy. who's coming out on top? let's find out. it is not just the bernanke in

one cornerment. i loved your note. fewer buyers and fewer sharts mean a stable market. >> that's right. i think that's -- i think that's one of the stories that we have to really impress on investors. but, you know, there's a real movement in fixed income towards corporate bonds and high yield because of sort of the unattractive potential returns of owning sovereign paper. we are seeing the same shift where stocks are yielding so much more. they're incrementally attractive. we have corporate buybacks, highest since february 2011 and year to date corporate buybacks 220 billion. we have a margin alibier taking place. >> is that the reason, tom, despite everything we talk about, the fiscal cliff, europe, that the s&p is still up 6.5%, is it simply fewer shares on the market? >> that's a very big factor,

brian. another is it's the bad news is largely discounted. right? we are going through a mediocre season and i think reflects the fact that year to date 13% of funds, only 13% are beating their benchmark by 250 basis points. it is the lowest on rest for all the data we have. through july this is the worst year for active management. it just shows you people are underinvested and if the market is not falling they have to put money to work. >> when you invest and heard what tom had to say, how much if at all do buyback plans, they don't have to go through and they can be said and planned but how much do buyback plans mean to you looking at a stock? >> well, it is definitely one factor we would consider. and i think the interesting thing to keep an eye on is buybacks as related to what happens with the tax rates going forward. if tax rates triple and we go off this cliff as some people are expecting, i think they're

going to come to some agreement personally. but let's say that does happen. then it's not as beneficial to shareholders to get that dividend income. more of a tax bite and companies may try to reward shareholders with bigger buy backs and increase in share price. i think it's something to keep an eye on going forward. >> you know, michael, when apple came out last night, right, it was alight with the markets doomed today because of apple. why aren't we down big today? don't tell me caterpillar. right? is it all the fed? >> well, the s&p is down. and apple -- >> flat. it's not getting crushed. you know my point. >> well, no. and i think the thing with ap sl the news was negative because expectations are so high and that's what happens when you've got a stock price to perfection like that. it's a great company. trading at reasonable multiples. if they start to miss on earnings and product development, et cetera, then

it's primed for a correction and you see a little bit of that today. in the overall market, though, there's definitely a little bit of a bump of fed expectations. i for one rather see fiscal policy an marginal tax rates cut. i don't think monetary stimulus is what we need. that's an artificial juice for equities and other risk assets and seen gold bump up, as well, today. those factors bear watching going forward. >> tom, i guess i'm old school because i at least used only the a stock price the future value of earnings. who knows these days? >> should be. >> yeah, it should be. fewer than half the companies are beating expectations. a number you can't manipulate. why isn't the market reacting more negatively to what's arguably a dismal earnings season? >> no. i think there's two reasons. currency affects the top line. but rarely will it affect the

bottom line because costs usually are matched. i think another positive to remember is companies are not seeing margin pressures and that was a big story, margin pressure. it is disappearing and you can look for a better growth. u.s. housing's gained a lot of traction. oil's dropped enough to see below $3 gasoline and remember the most important market to equities is high yield market which is rallying since june 1st. it didn't rally until october of last year and one thing investors have to remember if high yield's rallying, you have to be long stocks and investors are gloomy and the market is telling us to be invested. >> thank you, gentlemen, very much. see you soon. >> thanks, brian. ten minutes in to the show, let's get the 17th utterance of the word market so far with seema mody. >> that's right. i-robot smashing street estimates. revenue and eps higher than estimates. taking a look at the pnl, it is

the home robot business that fueled the bottom line with the roomba and the scuba floor washer. that's 50% in revenue. really tempted, of course, to do the robot dance for you but i will save it for the break time. >> you just kind of did it. >> kind of. i tried to hold it. >> a mini robot. the droid. that's a phone. thank you. nice. all right. well, we are minutes away from a vote of extending the bush and obama tax cuts, a symbolic vote. there's a lot of taxes and let's find out the most perhaps interesting issues were. john harwood in washington. what did you take out of it? >> reporter: the nbc/"wall street journal" shows opinions are divided on the tax cuts without a clear advantage. slight advantage for the democrats. but when you look, for example, you ask voters did the bush tax

cuts help the economy? hurt the economy? make no difference, essentially, slight edge for healthy economy. 34% said they hurt the economy. the rest said made no difference. could they expire for those over $250,000? you do get a majority 50% saying, yes, let them expire for the top end. but you still have 43% saying, no. showing that public opinion remains muddled. democrats and republicans are at a very polarized position. independents favor democrats slightly and that leaves the senate preparing at 4:00 p.m. now. the votes delayed. they're simple majority votes on both proposals, republicans to extend all the tax cuts for year. democrats to extend only the middle class tax cuts for a year. let the top end tax cuts expire. not become low because the house won't take it up. >> are you surprised, john? maybe bad news for the democrats

only 50% support those tax increases on folks over $250,000 a year? >> no. it depends on how you ask the question. but no. look. people like to tax cuts. this is why republicans have had a pretty strong argument on the issue and democrats were not able to prevail on this when they first expired in 2010 because voting against tax cuts is a very popular thing to do. sorry. voting against tax increases is a popular thing to do in the senate. there's senators who are uncomfortable for having to vote for the democrats' position because of what the bill does on the estate tax, for example, and they have to defend in re-election campaigns voting for the top end tax increases and even if the polling shows it's popular not when you get in a real live situation. >> voting for spending increases is largely popular. i think we just defined our

problem. >> depends on the problem. that's right. >> thank you very much. all right. on deck, more on the dig story of the day. sandy weill's call to break up the banks s. there a real chance to happen? netflix hammered. stock having the biggest drop in nine months. is this the beginning of real trouble, though? or is it more positive sequel in the works? find out ahead. idelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. and so too is the summer event.

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there is such a feeling among people, among regulators, among the political system, all over the world, against the banking system and i don't think that's going to change so soon. so i think what we should probably do is go and split up investment banking from banking. >> that comment on "squawk box" this morning of former citigroup ceo sandy weill. it is the first time that we have heard weill say the vision of the so-called super banks may have been wrong. but will the words work to convince anyone in washington he is wrong? let's bring in bethany mcclain and jared burnstein. both are cnbc contributors. ladies first always here. your reaction to sandy weill's

comments? >> it is astonishing and comes on the heels of phil purcell. writing an op-ed calling for the same thing saying that the big banks should be split up and so we have two of the real creators of the behemoths saying this isn't working. >> and do you believe, bethany, that somebody will listen to what sandy weill had to say? >> i'm spectacle they would have said this if it wasn't for the market pressure on the big banks. the market is voting and voting thumbs down about the big banking model. just look at the stocks and where most of the banks are trading, at a discount to book value. and i think it's investors in the end that will create the pressure that makes this happen or doesn't make it happen. and for the stocks to continue to sag then, ge, something's going to change. >> jared, you're a washington insider. did you ever imagine that sandy

weill arguably the architect of the modern-day bank would say this? >> the father of the banking supermarket. no. i thought it was remarkable set of statements and i just hope people down here are listening. if you tick off the things that sandy was advocating today, bringing back glass-steagal. multiples of higher than the one that is got us in trouble. this is like barney frank's list. not sandy weill's. it's one thing to hear people like me or barney frank or the president say these things but an insider as the architect of the measures looks back and recognizes just how dysfunctional they have been for the markets and the reputation of the market sector, we all ought to be listening. >> jared, you agree with sandy weill? >> i deeply agree with him. maybe more accurate to say he

finally disagrees with me. >> does this render the beast that dodd-frank and the voel kerr rule intended to tame worthless? are those laws needed if we do what's suggested? >> perhaps the volcker rule could be preempted by the kind of suggestion and sandy speaking with clarity about this i found it pretty convincing. just look at the jpmorgan london whale story. was ate proprietary trade or not? >> i think it was. if you hive them off that way, it obviates the questions. >> what's amazing is banker's remorse in the last few years. right? you mentioned phil purcell. i mean, does it matter they're coming out saying, you know, we were wrong? >> i absolutely think it matters.

i think it is just a stunning reversal. there's been the two narratives going on since the financial crisis. the banks got away with it. we didn't break them up. they're making money hand over fist. you know, they got away with it. and the other narrative is that of the market and investors who have been voting with their feet and saying we don't like these companies. we don't think they can earn their cost of capital and we don't like the total lack of transparen transparency. he had a call for trance prn sy. people are sick of the black box model of the big banks. >> maybe a dig here at jamie dimon the former protege? >> i think there's more than a little dig there. because jamie is a big proto innocent of the bigger is better. >> i think it's deeper than remorse. sandy weill knows how financial markets are supposed to work. not flip from one banking

scandal and bubble to the next and what i kind of heard today is an old-school guys looking back and saying it's d dysfunctional. >> well said. do us a favor. when the bernstein-weill hug it out happens, get the cameras to capture it. thank you. >> thank you. >> there's more coming up on "closing bell." first meredith whitney at 3:10 and then paul ryan. by the way, the aforementioned barney frank on "closing bell" tomorrow but don't obsess about it. you know what that refers to. all right. but still ahead right here, for the first time since the great depression, middle class families losing ground for more than a decade. in comes stagnant job growth. anything to turn it around? "the new york times" reporter is here and heading to the farm to find out the real costs of the worst draught in 50 years, jane

wells with another angle. she is there. >> hey, brian. contrary to popular belief. there is corn growing in america. this is pretty good. just not enough for it for everybody. you have cows, pigs and chickens with ethanol and foreign markets. what the drought is doing to farmland values when "street signs" returns. tdd# 1-800-345-2550 i'm constantly working my screens.

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tragic new images of the worst drought in 50 years. this video of hamilton county, indiana. just north of indianapolis. at one point this year, all of indiana's county's have been in a drought. it's expected to drive up food prices around the country but it's going to hit much more than food. in fact, this year's christmas tree crop could even take a hit. jane wells live in ames, iowa. jane? >> reporter: hey, brian. just chicken feed. and that's the problem. the cost of feeding chicken. usda says poultry prices will rise as much as 3.5%. they say producers see the

margins shrink and more power to pass on costs to consumers. it's going to be next year to see higher prices accelerated, inflation in pork and beef partly as herds are thin now because it costs too much to feed them and fewer pigs and cows in 2013. beef prices could rides 5% in 2013. the kansas city fed says farm lending strong in the first half of the year before the drought and good farmland in iowa has been going for 12 grand an acre, double what it was four years ago. you ever wake up at 1:00 a.m. and think it's going to pop? >> certainly we just at father's day, just a month ago, we had corn prices for new crop less than $5 a bushel and over $7 a bushel now and we were anticipating that possibly this market would go steady or even decline some because of the lower income expectations. but now if you've got a really good farm with an average yield,

your income's higher than you ever anticipated. >> if you have a really good farm. >> reporter: yeah. he said there was an auction in east iowa of a really good farm yesterday, a test of the market. it ended up selling $9,400 an acre, less than expected. it could be that this uncertainty is starting to put the brakes a little bit on these farmland values. we'll have to see. >> jane, very quickly, you have talked to farmers. how bad do they say it's been? how bad is it? >> reporter: well, they're calling it historic. usually in iowa, you get -- talking to people last year with 190 or 200 bushels an acre. this year, they're looking for 150 bushels if they get rain. without rain, looking at 100 bushels an acre. a 50% drop which is fine if the prices double except a lot of them already locked in and much of their crop at a lower price earlier. >> jane wells, thank you very

much. and corn-based feed products to feed chicken and cattle but darling, their products often used as aal tern tiff. an animal fats company, sort of plays against corn in a way. the stock is actually up about 22% year to date. full disclosure, my dad works for a competitor. they're private. just noting it's an alternative as farmers switch over, maybe from corn to animal fat-based products. up next, another big black eye for rim. that makes like eight. plus, why the street is not so wild for buffalo wild wings. don't say we didn't warn you. and apple having the worst day of the year on slowing iphone sales. if apple facing another threat? hear what music legend graham nash said could crush itunes. [ male announcer ] it's a golden opportunity...

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welcome to the wds edition of "street talk." mandy's off so we'll tackle the "street talk." buffalo wild wings. remember north coast said be careful about them posting the calorie count on the menu. he was worried, the stock tanking for the second quarter. your take. >> i will say one thing. same store sales down. they were not only down but 5.3%, a slowdown and what really got me on the call the company saying strong and i just, you know, slowing. strong. i can't foot two. >> listen. they expect sales still increase. right? b. riley, a small research firm upgrading today. this is an input cost story on bwld. we'll hear from the ceo sally smith tonight on "mad money."

stock two. broadcom with record sales for the second quarter. earnings down almost 9%. your take on them here? >> when you look at the flat gross margins, there's discussion about that. they're gaining share in the market and that's where you're gaining share but the suppliers or the companies want better deals. you can see it in the gross margins. >> at least brokerage firms lowering the firms there. more bad news for peabody energy companies. a weak quarter. weak guidance. third quarter profit. not good. i mean, how bad can it get for the coal companies. >> keep eye on the net debt. keeps going higher and higher and higher. >> well said. about all you can say. two-year favorites. you can take them away. te >> the numbers were a little

better than expected. this is a company that guided down. june 6th, fell a cliff. wasn't necessarily a surprise. they have been cut in half. this is a company that's effectively saying it's sacrificing on the margin. hoping to retain share and move forward and there's simplicity. this is the bet. they're counting on it on the call the ceo said it's not the blockbuster. >> i can't remember his name but the raymond james analyst that called -- >> bud. >> good memory. >> yes. >> called the attention of promotional activity to squeeze margins. >> he likes the company and the stock a lot. >> last. i know you've taken heat in the -- >> oh. >> not like you care. >> no. >> this is a battleground stock. >> virnetx. the ceo pledged shares against an obligation. >> what does that mean?

>> you have -- you basically pledge the shares against a loan and see what happened with green mountain, chesapeake. i put this out. i called the company. asked the company to get back to me. i actually got the ceo on the phone and said i would talk about pledge shares. didn't get back to me to discuss it really. let's just tell you one thing. 13d saying pledged the shares against $5 million, increased line of credit. so not a big margin call issue but the fact of the matter is, you know, they have stuff going on there. >> something to watch. >> this is a great battleground stock. >> we'll talk more about it, i'm sure. >> the hostile reaction meeting spinning out of criminal. >> yes, it is. netflix shares hammered after warning growth may be less than expected. losing nearly three fourths of the value in 12 months and remember mr. herb sounded the

awill remember a long time ago. said be aware at over 160 a share. take a listen. >> no doubt this is a talented management team, herb. >> now they're going in to the space and so much more competition. and when i'm listening to them talk about profit margins, what will happen if this is an all-out price war? not just them against blockbuster or maybe red box. it is them against time warner, cablevision, you name it. apple. >> that was an understatement i guess. >> joseph a. bank commercial. should we sound more alarms on the stock? herb is still here and let's bring in aaron kesler of raymond james. when a company loses three fourths of the value in two months, it's a buying opportunity. what is it for netflix? >> we have had it on underperform. $110. key concern is increasing growth

of the streaming side. we think that's starting to mature in the u.s. as we said yesterday and even though they'd increase profitability, we think sub growth is more challenging as we saw in the quarter and guidance. >> getting the story right, here's what we are seeing. we are seeing slowing growth in streaming, we are seeing no growth really in the dvd business and higher margin and higher content costs. is there any bold case here? >> i think the bold case is if international does work, that's early, so we think by earliest 2013 to see international gain traction. i think if they were to turn it around they need to get success in the original programming. they're expecting to do more in 2012 and 2013 and looking at reed with the shareholder letter. competition, competition, competition. how important is the competition to this story going forward? >> yeah. for us, not one player in itself. not the cable companies but combining them with netflix and 24 million or so streaming subs,

we need to get to 30 million subs. that could be challenging in the face of these players getting more aggressive on the streaming side. >> what should netflix do? >> i would invest more in original programming where you can differentiate yourself. international is the right path and aggressive investing right now. i want to see it differentiate and the content is not that different. >> that's expensivexpensive. herb has like six helicopters. you have to pay a lot of money. that's pricey for netflix. >> i think the bottom line here is it's profitless prosperity going forward for an unforeseen period and i think some of the concern here. you have analysts saying it's long time before it's profitable. >> thank you. >> thank you. all right. up next, what music legend graham nash thinks could hurt apple to the core. a bad pun for the hell of it. heck of it. what do blackberry and palm have in common? we'll tell you coming up.

whoops. here's today's "return on retirement." underfunding of employee pension plans has hit an all-time high among s&p 500 companies. they owe nearly $1.7 trillion and are facing a growing funding gap. so just how big is the gap? the answer when we return. we don't have a word for retirement. in the latino community the word that we use is jubilation. as you're getting older, you should be able to do the things that you love.

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today's "return on retirement" question. when's the total pension funding shortfall of s&p 500 companies? the answer, $355 billion. according to the s&p dow jones indices. for more on retirement, go to retirement.cnbc.com. coming up at the top of the hour on "the bell" meredith whitney weighs in on sandy weill's call to break up the big banks. find out if she thinks it creates more shareholder value and paul ryan discusses this possible game changer in the industry as well as his thoughts

on word the fed may be ready to jump in with more economic stimulus. but first, more "street signs." see you in 15. >> thanks very much. does anybody have an idea of jcpenney right now? the stock, i don't want to call it parabolic but up 5% in 20 minutes or so. that's an intraday chart. there's news out about a deal to have intrastore branded stores like they want to do with joe fresh which is a hip clothing company but that news is out before -- out this morning. i see it on stock twits and stuff about the weekly options being bought up aggressive. the call options. >> look at sears. >> coming back, too. jcp up 5%. >> it can move on anything perceived to be good news. a big move for it. get it up to 33. what is it? >> not even close. on the bet. it's doing well. all right. we'll get the news and bring it to you first here on cnbc.

that's the disclaimer. another blow nor research in motion. "the new york times" will not support the blackberry app. we have herb here and jon fortt to talk about this. is it a symbolic thing or do you think it's a blow to rim? >> it is a real blow. i kind of like how, you know, this is herb's jcpen n ney. your rim. rim really needs developers and apps in order to build back some kind of momentum heading in to blackberry 10 and once the operating system shows up presumably early next year and scheduled. they're going to be selling the current platform for quite a while in devices. they don't need the major developers. "the new york times" counts as that for content and dropping out at this point. "the new york times" says maybe we'll jump back in on blackberry 10. jumps out of the platform with more devices probably aren't going to jump in immediately with 10.

it's a warning sign for them. i think apple's results are a bad sign for rim. >> when "the new york times" reported this, jon, they said it was going to be also they're going to do the same thing with the palm pre and thought pairing it with blackberry said it all. >> that really stings. i mean, practically doesn't even exist anymore. i'm sure there's some in people's sock drawers with depleted batteries but the fact saying putting this aside because it's kind of a dust bin flat form. rim needs to do something to revive this. >> apple, worst day of the year. this morning i was a guest on the fine show "morning joe" and speaking with graham nash of crosby, stills and nash on set an i asked him if he thought spotify was a big threat to apple and he said, jon, that it

was. do you agree? >> i do. i do. and apple made it worse by holding facebook at bay for as long as it has. now facebook's going to be integrated. it's part of the itunes experience to do recommendations took facebook, likes on various songs. it's not just spotify but also things like google music. itunes is the biggest music retailer there is right now. the real danger is spotify give other platforms a chance the kind of erode apple's brand strength and ecosystem. >> people may not remember apple bought cloud-based company of lala and i spent hours only to see them buy it and promptly shut it down and herb, your era. i brought this, this is a 1973 album. it's mine. i still listen to albums. mr. nash signed it for me.

this is where we have come from. from this to digital. >> i have to say when you were talking all i thought is not talking about pandora and meaning for them and somewhere caught in the middle. >> well said. thank you. when "street signs" returns, helping the middle class. we hear what the politicians say. not much. next up, search for solutions. learning from the past so history does not repeat itself. but thanks to them... and her... and especially this guy, all those years were just a prologue to this. ♪ it's amazing how far you can go with a little help along the way. td ameritrade. proud sponsor of the 2012 u.s. olympic team.

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we're digging into jc penney's run in the last 45 minutes. we didn't talk about the company when the show began, but somebody is buying it because shares are up 7.5% after being flat for most of the morning. we released herb greenberg, he picked up a telephone, and this is live television, he is plugging in, i feel like walter cronkite. >> yes, a fashion editor and she tweeted, eni'm seeing it on her tweet feed she was at the jc

penney he'd quaad quarters and with ron johnson and thought it was very interesting. >> so you're suggesting that a well known fashion editor is making positive comments about their fashion strategy. >> she said i'm at jc penney's talking to ron, and this is going to be a game changer. that was tweeted out 49 minutes ago. so let's bring the chart back up. nina garcia, a well known fashion editor, about an hour ago tweeted out she was in fort worst, met with ron johnson, and

said their fashion strategy is going to be a "game changer." she said get ready to shop, it's going to be a game changer. this morning, we got headlines jc penney made a deal with joe fresh. >> and she's meeting with ron johnson who is an impressive guy. that's a vote of confidence. it is, and one from someone who is widely respected in the fashion industry saying wow, what she saw from an old line retailer sort of wowed her. there was another article last night, they want to get rid of cashiers. they will go to the in order strom mod-- nordstrom. if you're looking at something,

those skinny jeans you like to wear, if you don't have time, you could change your mind, but if you have an associate with the scanner, you might be able to make the sale quicker. >> i don't have to stand in line, that's the important part of that story. we're seeing if nina garcia said anything else. >> i'm going to follow her right now. this is from nina garcia. well known fashion editor. and can we bring it back up, i can't read that fast. we don't care about the date. we know she tweeted it out today. she said having a wonderful day. i'm at jk pen--

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we'll get him back on very soon. we want to give him more than two minutes. with that said, let's get back to this jcp stuff. people are up in arms, herb, settle down, hol on, that a tweet could have moved the stock. it may not be the tweet. however, nina garcia, powerful in the fashion community from what i'm gathering, basically saying it will be a game changer. she tweeted it out right as the stock began to move. if it's not this tweet, then something else occurred right at that exact minute. >> you never know, but this was clearly a move -- >> listen, the nina garcia relationship was old. it was announced going back a number of weeks, a week or so ago, but the fact that she said she was there, and this will be hot, that may be what got it going.

again, that's the only news we have. my people that i follow who i know are talking about just as the stock was moving and just before it moved. >> a lot of stuff now about what her roll is, is she a consultant -- >> when the best retail guys i know is a retail analyst that says that's simplistic. >> jc penney adds nina garcia to their merchandising team. she is now their resident style voice, fashion check curator. she is also fashion director at marie claire, and a judge on project runway. so she is partnered with