sue, we'll see you back in a little while. for all of you, have a great weekend. that will to it for today and this week's "power lunch." >> have a wonderful weekend, everybody. we'll see you on monday. "street signs" begins right now to carry on with this big market rally. welcome to "street signs" where sue is right. we've got a big old-fashioned market rally on our hands. a better jobs number providing the push. but for 20 years, august has been the worst month for stocks. hear why your guest says this august could be great if history repeats itself. we'll explain. it's a joyful job but should they get out of the way to create even more jobs? a street fight on jobs ahead. why slower may be smarter on wall street. and we will show you the best performing five stocks since the president was born, mandy, 51 years ago tomorrow. >> hello, everyone. tgi friday. plenty of notable milestones in

today's stock rally. the dow is having its best day sips june 29th. same for the s&p 500 and both are on pace to finish the day at three-month highs. perhaps the most amazing stat of all, the dow, s&p 500 and the nasdaq have not had a positive session this week until today. yet with today's rally, they're all higher for the week. so let's get straight down to the trading floor. bob is at the nyc, rick santelli in chicago. what's that color? green? we haven't seen this for a while, have we. job gains are great, right? we like that. nonetheless, what's going to be the next catalyst to keep this thing going. >> i'd say probably the feds jackson hold meeting at the end of august. we'll get a lot of the ecb leadership together with the fed leadership and get more macro news by then. right now at least for today there's a belief out there somehow mr. draghi has got some kind of moxie and power going

with the rest of the euro leadership over a plan. we'll see. it's rather remarkable the rally that we've got today. a little because nonforeign payrolls a tad better than expected. we've had three months of disappointing numbers. the laggard groups are all ones on the upside. the ones that have been down the most. your financials, your materials and industrials are all the ones that are up. small caps have been big laggers an so are transports. they're playing catch-up. same thing with your sectors here today. not having telecom stocks or consumer stocks on the upside. and the materials all moving. mandy, back to you. >> thank you so much for that. let's get out to rick santelli. rick, i'm going to call you because you've got lots of caps on today. jobs, grains, bonds, everything on your mind, right? >> yes. well, 163,000, what did i hear, the best since february? it's not enough. it's better than we were expecting. so what do we see, the highest

yield close in a about a month, in europe the same thing. but the grain markets also interesting. corn hovering at 8.10. we call that new crop. that's the highest weekly close ever even though on monday we closed a bit higher. consider this real quickly, it takes a pound and a quarter of corn to add a pound on a chicken. 6 pounds to add a pound on beef and it takes 25 pounds of corn to make a gallon of ethanol. you're going to be hearing a lot more about the epa potentially lifting the ethanol mandate. we'll have congressman on monday to talk about that very topic. >> thanks, rick. generally august is one of the worst months of the year for stocks. in fact for the last 20 years august has been the single worst month of the year. this year might be different thanks to the upcoming election. let's find out why. joining us, jordan kodick and

tom porcelli. jordan, this being business news, we loves us some charts and graphs. you've made a good old-fashioned chart going back a century looking at elections and the market. show it to us and tell us what it tells you. >> absolutely. look, this is not regular years, this is an election year. so we went back to 1900 and looked at u.s. elections. within an election year there's a very pronounced skew to the data. the first half is a choppy, choppy tone. however, when you get to august into an election year, the market accelerates to the top side consistently 8% to 9% between august and november or december. we do seem to be getting into a seasonal time in the second half of an election year which is a positive backdrop for the risk environment. and we're just beginning that this week indeed. >> so it may not last, but going back to 1900, every four years the dow tends to rally from about august to the end of the

year, correct, in the election year? >> absolutely correct. >> okay. i want to bring you in here, tom. jordan just said that we're setting ourselves up for a positive backdrop for sort of a risk rally if you like. what about the economy, are we going to have a similar thing backing us up on the economic side of things? >> no, we don't see it up folding that way, unfortunately. i think this payroll report from our perspective shouldn't really alter the conversation all that much. it was certainly better than expected but i think you have to keep in mind when we think about job growth going forward there are a couple of key things to remember. one is the fact that productivity is slowing sharply and profits have actually started to slow. so in an environment such as that, it's really hard to generate a lot of employment. >> in fact if i read this correctly, they're slowing down. >> so you literally just stole my thunder. >> i apologize. >> damn you! >> i would say one of the great ideas that people seem to forget is at the end of the day you can't have a significant

momentum being built from a consumption perspective if wages aren't growing and wages are declining now for the fifth straight month. so by think that you're moving into a continued challenge. >> let's bring in jordan. tom is the fundamental guy, says things don't look good to him. you're looking at the charts which factor in all the fundamental analysis. so what are some of the key charts telling you, jordan? >> first of all, i respect the economic view. where we differentiate, i believe the financial model and economic model are very different and i suspect we disagree. but markets lead the economy, the economy doesn't lead the markets, so we don't need the economy to turn. in fact we suggest the market will turn first. remember, the markets have been rallying since june. to have this bullish backdrop we want to see the sectors rotate. we're starting to see the consumer staples starting to turn. in the summer of 2010, summer of 2011, that was one of the things that signified the summer correction was over. its early days we're seeing

that. we're seeing the breakup and break-even mark as the risk of apocalyptic trading is being taken off. this is maybe a quarter to the top sigh, that's all we're looking for. >> at the end of the day you have to respect the technical charts, i don't think there's any question about that. the one thing that differentiates this year with other historical periods is the fact that you have confluence of factors we think will conspire to put downward pressure on sentiment which we think will translate into lower output. one is just a contentious election in and of itself. two is the fiscal cliff. the fiscal cliff is still unresolved. we think it could resolve itself and then you have the debt ceiling and a potential downgrade. we think those factors from a sentiment perspective could really put downward pressure on. >> quickly, jordan, some people might say charts aren't as effective because of the fed, because of the fiscal cliff, because of the election. >> look, you sort of faded but i

think i got your pointing. they always say it's different, this time it's different. but the truth is every election there's always a major issue, but the consistency of the data certainly trumps all of that. it's that consistently that we continue to lean on. >> tom, do you feel that the better-than-expected payrolls today killed any chance of further aggressive stimulus from the fed or do you think the tick up in unemployment keeps the fed in play here? >> i think the fed is still in play. it was funny, what we said to investors the other day after that meeting what bernanke did was put emphasis on that report. all today's report difficulties is place emphasis on the next payroll report. if they print another 150, 175, it will be a hard sell to push for qb. >> especially if they didn't move with the previous three. >> guys, have a great weekend. i want to call your attention to breaking news. we've got one line for you. aig shares halted for news. aig halted up about 32 cents,

just over a percent. when that news crosses, we will bring it to you first right here on cnbc. a reversal of fortunes at knight capital as it looks like a white knight of sorts is riding to the rescue, for today at least. mary thompson is outside of knight capital hq with the very latest on that. >> reporter: on day three of the knight trading trauma, something to stop the heavy bleeding and freefall in the company talk. "the new york times" is reporting that r.j. o'brien is taking a look along with others about buying knight's newly acquired futures brokerage business. and then earlier this morning, there was a report from the "wall street journal" saying that the company has secured a credit line that will take it through day's end. when asked if that news prompted any cheers in the office, one employee told us, yeah, obviously. of course this morning earlier was a very different story as many employees walked by us stone-faced, declining to comment to cnbc.

while others who did speak to us on camera did express confidence that the firm would survive. securing that survival now the keep job of the c eteo and his team. by monday night they have to cover a $440 million trading loss triggered on wednesday during a 45-minute trading glitch caused by knight's software. roger freeman telling cnbc he believes the company's cash, lines of credit and liquid securities can cover that lost. more concerned is covering the lost trading revenue the company has the last couple of days. big clients like e-trade and van guard are routing orders elsewhere. so who might the real white knight for knight be? a number of people say big banks are a possibility because they would be attracted to buying up knight's platform on the cheap. and hedge fund giant citadel was shopping around for an adviser

to take a look at a knight deal. it's going to be a busy weekend for knight's management. >> we'll talk more about this issue later on in the show and the big question of who possibly could be next. in the meantime let's get a market flash. >> good afternoon. yeah, that's right. take a look at united continental. it has reached an agreement with its pilot union after that merger in 2010. terms were not disclosed but union leaders did say that this would help make economic amends. the market, of course, always likes resolution. that's why that stock is up better than 0.8 of a percent. back to you fwlnchts comi. coming up next, when it comes to creating jobs, whose job is it? are washington or wall street to blame? a street signs street fight coming your way. and later on, fake book. 83 million new reasons why wall street could become even less friendly to the social offering. we'll be right back. the million. would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars.

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with the market rallying we thought this would be a good time to check this out. it's a live shot of the brooks river in alaska. a live look at a bear trying to catch a fish action having no luck kind of like the bear is not having a lot of luck with the market today. >> we've been watching him about 45 minutes and he's probably been there since before then. >> thanks to the good folks at explorer.org for putting that up, by the way. our next guest says corporate america is not creating enough jobs right now because washington has been

laying down on the job. remember, we've talked about this before on "street signs" whether or not we should stop whining, stop complaining, stop pointing the finger at washington and get down to creating jobs and putting some money to work. >> yeah. it is the d.c. versus main street discussion. we'll get to that in just a second. right now let's go to mary thompson with some breaking news. this concerns aig. you mentioned it was halted just before the break. the treasury is announcing that it is going to be selling $4.5 billion of aig stock and aig is going to be purchasing $3 billion of that offering. keep in mind the treasury owns 61% of aig with a market cap of just about $54 billion. so that's about 9% stake or so. the underwriters of this offering are also having a 30-day option. of course just recently there was a report indicating that aig wants to make -- or wants the treasury to become a minority owner and that's something the company's ceo has said repeatedly he would like to have happen before he does step down as ceo.

the treasury's break even on aig right around $28.32 a share. but again just to repeat, the treasury is offering a $4.5 billion of aig stock, $3 billion of which will be bought back by the insurance giant. back to you guys. >> thank you, mary. in the meantime the man behind the mantra of stop complaining about washington, obviously it's very popular to blame washington for everything, is brian hamilton, co-founder and ce of of sage works. also is jared bernstein who likely disagrees. brian, i want to start with you. make your case for why washington might be actually to blame in this case. >> it's a paradox right now, mandy, because revenues are going up, margins are going up, companies are making more money. that's been going on for 36 months, a long time, right? so we have to look at the fundamental performance of these companies and say what's going wrong, nothing. and then we look outside with the mess in washington, all the debate.

first health care, hallelujah at least it's over right now. we know it's going to happen. here's the message to washington. even if the policies aren't great, get them out early so these private companies, an there's 27 million of them, can plan for their businesses. that's the big picture. we're stuck in the muck on the job side, there's no doubt about it. and there's a bit of a patronizing attitude sometimes in washington, like these companies are nervous nellies an they don't want to hire people, they have anxiety. there is good reason for them to sit on the fence right now. >> jared, is brian wrong? >> i think brian actually made some good points. interestingly, i very much agree that all these questions like the fiscal cliff ought to be resolved sooner than later. what i don't agree with is that somehow it's those policies that are holding back investments by either large or small businesses. if you listen to the businesses themselves, they definitely squawk about taxes but if you

look at their numbers, they have done pretty well. what's missing from this equation is demand, consumer demand. consumer demand signaling investors to get off the sidelines and get into the game. even with very low interest rates we don't see enough of that. for that, ironically what he need right now is anti-austerity. less of the fiscal contraction that we're seeing in europe, the u.k. and here as well. but in terms of resolving uncertainty, we all agree with that. >> paradox, people can't spend money they don't have, middle class incomes have come down. there's a small tax cut trying to help out, but it hasn't helped out that much. probably helped some. how do we help more? >> i think the key is jobs. i don't think that there's much you can do on the tax side other than the kind of tweaks or really do no harm, which by the way is what i see in what the president is trying to do, kid of a do no harm for the middle class. really what people need are their paychecks.

as long as the private sector is still on the mat, that's, again, where you want to avoid the fiscal contraction that we're seeing. >> hold the phone, though. wait a second. hold the phone. why are those jobs not be created? let's go right to that. >> demand. >> no, that's not -- >> consumer demand. >> wait a second, hold on. >> sure. >> the revenues are going up, the profits are going up. that's been going on for 36 months. that money is going somewhere. it's going into a checking account. these companies are making that money. so finally after three years, you know, 18 months beyond what the normal cycle is in job recovery, we've got to look at revenue profits and margins. jared, they're all in line right now. >> right. >> so what is causing this? here's the thing. idoesn't matter whether you're democrat or republican really. at this point who cares. let us know early what you're going to do. so these private companies, 27 million of them, can plan their businesses. that's all they're asking for, it's not complicated. >> i think that's fair. here's the point. if you actually look at where

they're earning money, it tends not to be here. it tends to be in foreign profits, the multi-nationals leading the fray there, basically cashing in on economies that are fwrogrowing, unlike our own. i don't think you'll see firms hiring domestically until they have more people walking in their doors. >> jared, you're talking about mega companies. let's go down, there's 27 million companies in the u.s. only 5,000 of which are publicly traded. we're talking about main street. these guys are the ones that are generating these jobs. sure, some of them make money offshore, no question about it. but most of that money is made here. so really it's easy to blame the politicians, no doubt about it, we all do that. but in this specific case we need a policy now, not on december 31, not when the ball is dropping from times square, right now so that these businesses can plan. >> okay, two points. one, i'm a little bit confused with part of your thing. you're saying let's not blame

the politicians but then i blame these politicians for not getting these pollys acro -- po across the finish line. two, what's the biggest thing holding you back from hiring? they continue to say poor sales. granted, you've got a point, that line is getting closer to some of the other lines, regulation and taxes, but it's been poor sales for the longest time. >> wrong. look at the data -- >> i'll show you the data. >> i will too. but the revenue is going up for an extended period of time. gdp is not great, you're right, but it's growing. it's not perfect. it is there. it's really this poisonous atmosphere in washington possibly where businesses -- look, if you're running a business, you've got to look out 12 months, 24 months, month by month in your forecast, you're looking at your overhead rate. are you going to increase your overhead rate when you don't know what taxes are, you've got the health care debate acfor a couple of years. the pointing is this, we need a

coherent policy as business people. it's let us know early so we can plan our business. >> i agree. i agree 100% with that last pointing and i think the thing there is you actually have business lobbies working the other way. i can give you tons of examples, lobbying for their tax cut. >> jared, on that note with 100 examples, you gave us one. we'll have to leave the other 99 for another time. thanks for a very good debate, gentlemen. >> just ahead on "street signs," go slow young man. would simply slowing down the machines actually make the market safer for your money? another street fight on that on tap. and happy birthday, mr. president. or maybe i should say happy birthday, mr. president. tomorrow is barack obama's 51st birthday. can you guess the best performing stock since he took office? tweet us if you want to guess ahead of that.

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today's return on retirement. here are the countries willing to invest the most pretax monthly income on retirement according to a recent survey. the u.s. comes in 6th at under 18%. coming in at the top spot, south korea, whose respondents are willing to invest nearly 30% for retirement. for more on retirement, go to retirement.cnbc.com. welcome back to "street signs." i have some breaking news. td ameritrade saying it has resumed trading with knight capital calling the company a close partner and saying that

they will resume trading as of this moment. now, the back ground to this story is that there was a meeting between knight executives and td ameritrade executives that broke just around midday, 12:30 eastern. knight had secured a line of financing. the status of that had been in flux throughout the day but knight was communicating to td and scotttrade. scott trade also plans to resume trade routing through knight as well. back to you. >> thank you for that, kay lachlt watkayla. on this news about td ameritrade the stock is up 54%. this morning it was up 30% so it's continuing to take this as positive news. >> it doesn't look like that much because as mandy noted the stock has been climbing all day. i checked right as we saw breaking news and knight was up

46, 47%. it's now up 54%. so you had a 7% to 8% move right away. an again, there's other firms that have stopped routing orders. >> like vanguard group. >> fidelity. so watch for those headlines. that would be very, very good news for knight capital. >> and of course they had lost about 75% over the last two days since that computer trading glitch on wednesday. we're going to be talking more about this later on in the show. we're going to be talking about whether or not we should be imposing some speed limits in terms of trying to just slow things down, maybe bring some human interaction back into the situation and we sent out a twitter asking people would they pay more if they knew that a human would execute trades as opposed to a computer. it was quite interesting the responses that we got back. we'll show you some later on. >> the ceo of td ameritrade, here's the brief press release.

after considerable review and discussion we are resuming our order routing relationship with knight. paraphrase ahead, knight is one of the many order routing destinations for us and has long been a good and trusted partner. so a big vote of confidence for knight. and folks, mandy pointed this out to me when we got in, the credit line that knight received this morning was good for approximately -- >> one day. >> one day. so knight needs this kind of news today, not tomorrow, not monday. >> of course before the news about that credit line for today, brian, there was even the question of whether or not it would survive. you've got a big market maker like this and it's a huge hit not just to their reputation, but if you've got their major customers pulling out, the bottom line is where are they going to get their revenue so this is hopefully a shot in the arm in terms of confidence. >> breaking news moments ago on aig, also knight capital. now breaking news from washington, d.c. john harwood. >> reporter: brian, mary shapiro of the securities and exchange

commission has just put out a statement calling what happened with knight capital unacceptable. she said that the staff is looking into whether compliance measures were followed in that episode. also said that circuit breakers that had been implemented in order to prevent the impact of flash crashes did limit the impact, including the impact on individual stocks by halting trading. said it will accelerate ongoing efforts to create new rules in this area. again, that's mary shapiro of the securities an exchange commission coming out with a statement saying it's unacceptable and she's going to direct the staff to accelerate their efforts to create new rules on this area. >> john harwood thank you very much for this. now the stock is up 60% in change. it's well above the four buck level once again. >> trifecta of breaking news on a slow summer friday. >> let's see if we can make it a decafecta. that would be ten breaking news. up next on "street signs." the big book bounce. why one publisher is wall street's best seller today.

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all right. happy birthday, mr. president. barack obama hitting the big 5-1 tomorrow. >> he looks good. >> really does. so what are the best performing stocks since he took office on january 20th, 2009? here you go at number five, seagate technology up a cool 672%. >> and then apple, whole foods, wyndham worldwide and the best performer during the obama era is priceline, up 883%. that's a lot. >>. it's street talk time walking you through five stock stories. first of all, stock number one is publisher mcgraw hill really soaring on some buyout talk. >> the stock is up 3.3%. they have received several bids for its education business, including from bain capital,

apollo and others. the reuters story saying this could value that business around $3 billion. last september mcgraw hill said that it would split into two businesses. that could still happen. but now apparently they are looking at a possible sale. "the new york post" did report earlier this month they have hired banks to explore a sale. let's move on to stock number two. this is a canadian all star. do i have to put the rec wiz it eh at the edged nd of it? >> earnings well above estimates. mandy, this is a huge big building infrastructure consulting company. right now helping to build a new arena. >> huge big gains for that stock. moving on to stock number three, eog also having a banner day. here over 10%. >> that's a pretty good day, up 10%. second quarter income rose 34% even as prices for oil an gas

fell last quarter. it produced more oil and gas than estimated but it said it will decrease drilling activity because of lower price. the stock is down a couple of percent year to date. >> and moody's raised its outlook back in april saying its shift away from natural gas was going to strengthen its credit rating. >> the gain was so big it wiped out the losses. i stand corrected. >> you stand corrected. >> better than sitting corrected. >> or lying down corrected. stock four a name very familiar to traders, molly corp. bad numbers. >> and it's such a good day-to-day putting in a big declining day but it's worth a note. the shares are tanking down 26%, 27%. they posted a loss last night. also saying they may need additional capital to complete a big mining project. jpmorgan taking a whack cutting the stock to an underweight. i believe it was an underweight.

jpmorgan cutting their rating. >> don't feel bad because you never want to be called a cheerleader. we call the bad with the good. >> another stock in the news, facebook. get this. the social network this week saying that nearly 9% of all user accounts are fake. folks, that's more than 80 million accounts. stocks down more than 40% since the ipo back in may. so is the dog eating facebook's business model? joining us from chicago is rick summers. also our very own julia borsten. rick, the population of eequipment is having fake accounts on facebook. >> the issue of measurement has always been an issue. what's that audience? the audience may be a little smaller than we talked about, but 800 million to 955 million, that's still a massive advertising audience to be

reckoned with. >> julia, how do we get all these fake accounts? what is the makeup of those fake accounts would you say? >> a different category. the biggest category is duplicates. then there are misclassified accounts. there are people who are going on there and creating an account for their cat or their dog or creating a second account they might use for a business and it should be categorized as a business page instead of an account. and the third category are spammers. that's the smallest category of these three but obviously facebook wants to make sure none of these three categories exist. the whole site was based on the premise of people representing themselves on the service. >> rick, is facebook what we thought it was pre-ipo? >> from our perspective it is. long term there's a lot of opportunity here. near term there's a lot of measurement problems. how do you present this audience to advertisers? how do they know exactly what they're getting in order to measure that return on investment? this is just some challenges that we think eventually they

overcome. >> why do you believe eventually they'll overcome these short-term headwinds? what makes you so convinced they're going to be strong in the long run? >> a couple of things. first, we see this big shift from offline to online. i think that really exists of the and they do have a hold over a lot of activity of user. let's talk about measurement problems. we obviously have a great deal of measurement problems. one of the largest advertising mediums today and that's tv. we have set-top boxes and reporting and really not incredibly accurate measurement of audience here. this can be easily overcome from our perspective but it's going to take a period of time in order to keep investing in that technology. >> you've got a target of 32 bucks -- sorry, julia, jump in. >> i think that even bigger than the challenge that these numbers pose, i think that in the most recent 10 q this week the more interesting fact is people are shifting to mobile even faster than expected. the biggest problem facebook faces is right now 11% of users are only accessing facebook on

their mobile devices and it's still just starting to ramp up ads for those people. so i think that we really have to look at all these number shifts, the mobile users still continues to be the biggest issue. >> mobile monitorization, problem number one. thank you for joining us. all that talk about facebook's ipo being a big boon to california's economy, well, jane wells, the state isn't exactly hitting the like button, are they? >> no. facebook was supposed to save california and sacramento may have to unfriend it. back before the ipo, the state predicted facebook shares would be at $35 in november when insiders could start selling. now it's considered conservative at the time. technically still possible. california predicted nearly $2 billion in extra taxes because of the ipo before the end of the fiscal year. oops! in the don't count your chickens hatch department, the legislative appear list's office now says, quote, if the company's stock price remains

depressed, hundreds of millions of income tax dollars are at risk. on the other hand, hundreds of millions have reasonly been discovered hiding in special state funds nobody knew about including a $113 million surplus in a bottle recycling fund and the one making everybody crazy here, $54 million hiding for years in the parks department, discovered after the state had threatened to close dozens of parks, including some beaches, unless private donors stepped forward. so hundreds of millions potentially lost from facebook. offset by the same amount in pockets all over the state. maybe that's one reason s&p has given california its highest rating on new short-term bonds. saying while there are still problems california's economic recovery is, quote, gaining momentum, even if facebook share price is not. guys. >> only in california could $54 million be hiding in an account for years. thank you very much. >> for years! >> i know. and you win the award for best video today, by the way. >> oh, thank you.

>> beach. >> blanket, bingo. thank you. up next on "street signs" reservation for three. herb greenberg sets the table on "open table." and today's disaster du juor is running on empty. what, if anything, can be done to save zip car. e-trade was founded on the simple belief that bringing you better technology helps make you a better investor. with our revolutionary e-trade 360 dashboard you see exactly where your money is and what it's doing live. our e-trade pro platform offers powerful functionality that's still so usable you'll actually use it. and our mobile apps are the ultimate in wherever whenever investing. no matter what kind of investor you are, you'll find the technology to help you become a better one at e-trade.

i'm bill griffin. coming up at the top of the hour, we're all over today's bi big rally and whether or not it can carry over to next week. plus the head of a company that builds technology explains how a tiny bug can cause catastrophic problems at firms like knight capital. and mary shapiro had been missing in action about this knight debacle. was that doing even more harm to investor confidence? we'll talk about that coming up. we'll hear from one small business owner who says he's been dogged by the health care reform law, which is forcing him to cut back on hiring plans. all that and more when we see you at the top of the hour from here at the big board. first, back to you guys at "street signs." mandy. >> thank you. well, it is disaster du juor time and zipcar really falling apart here. now forecasting a possible loss this quarter. still could make a profit but sales weaker than expected and

new customer growth slowing down and the company was downgraded by no fewer than seven wall street groups. >> time to add a little sunshine to that big ouch. for this we're going to head to argentina. shares of mercado libre are soaring. second quarter profits jumped by 71%. we talked about this stock on trading the globe on friday nights, but this is an online trading service provider and one of tim seymour's favorite stocks to talk about on said show. all right. well, herb is here and he is all over the "open table" story today so it leads me to ask, what is the "open table" story. >> what a great story, have you seen this? the stock is up about 17%. this is open table just battered down. down about fitch% the past year, 24% the past month. it has been a wonderful day for open table. >> but there's always a but. >> always a but.

>> sometimes there's a big but with you. i point that out. >> just a but. >> or a small but. it's a small but. >> depends who we're talking about. revenue growth continues to slide at this company. it's interesting because it grew -- revenue grew at 15% last quarter. that compares with about 52% a year earlier. also earnings growth is down. actually this is the first quarter of negative earnings growth since the company has been public and also paa research, which has been a big bear, notes that the operating -- opentable's growth metrics are showing alarming deterioration, especially seated diner per restaurants. they grew at 5% versus 11% in the fourth quarter. this shows -- remember, we're talking the fourth quarter. this is becoming a cyclical company, so be careful. that's not what you want to hear when you're talking about a growth company. you can see that sliding right there. anyway, stock's up. i think people like what they're seeing but we'll see whether it

can continue the momentum. just over an hour left. let's take a look at next week. generally actually it's kind of data deficient. is that a good or bad thing for an investor. jim joins us from the chicago merc. jim, we've been inundated this week. the payrolls, the ecb, the fed. next week looks pretty quiet. is that a good thing, give us time to digest. >> it's not that good in my opinion because we begin to worry about things and look for headlines from europe. generally those headlines come in a little weaker than expected. today, the big news is that this number was pretty good but not good enough to take qe-3 off the table. but overwhelming shorts in the euro and overwhelming longs in the boones. there's a ton of people who have to get out of those positions. i can speak to the euro trade firsthand. it's not been a good friday for me being short the euro. >> we've got to leave it there but thank you very much. coming up next on "street

signs" the battle of man versus machine. it continue. yesterday we asked you would you pay more for humans to handle your trades. we'll bring you your responses next. and is it time to go back to the future on wall street? is it part of the solution to keeping your money safe? we'll make like a tree and get out of here, but we're back right after the break. stick around. male announcer ] when she takes the starting block this summer, she's not just natalie coughlin. she's every 5-year-old who ever jumped in a pool and didn't want to get out. ♪ every coach, every rival who ever pushed her. she's the tip of a spear that goes all the way back to the beginning. 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.

so what i'm saying is, people like options. when you take geico, you can call them anytime you feel like saving money. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance.

in light of the computer glitch at knight capital, we posed the question on twitter if you would be willing to pay more to interact with humans when making trades. we received a lot of feed back and we decided to put up some of your responses. we got yes, 8.95 now, i would pay 10.95. >> there were some nay sayers, yeah, but not if the quants are still at play. and stephan said no, i'm more afraid of human error.

one person did not choose. >> most tweets show there are different camps for using man verses machine to trade. should we have speed limits to sharpen investor confidence? scott, excellent article. i want to ask you this, we had herb greenberg, sorry, bill who talked about growth and lack of return. do you think the equity market could die if we don't solve these kinds of problems? >> look, if this keeps going on, yeah. i think people will pull out of the market, get afraid. and i think part of what we see going on is people are waking up to what is becoming of the market. i find that survey kind of f

funny, that is out of the option, we're not going back to that. >> the guy that said as long as the quants are there, he doesn't care if a human will respond. >> the machines and what we see and the impact on confidence, that's just part of the issue. i'll go back and say people learned they can lose a ton of money in the marks, machines, not withing because you can go back to 1999 and other mechanics and things like that. this is just added on to everything else that happened. >> yeah, i agree. >> i want to ask you as well, you have a situation where you have knight, essentially the nation's largest market maker. a lot of incredibly huge clients, and in one fell swoop,

and a computer glitch, a lot of people -- their jobs might be in question if the company can't get it under control. does it scare you that if it happens at knight is could happen elsewhere and who will be next? >> yes, they're one of the most sophisticated trading operations in the world. the fear has long been that it will be a couple guys in their garage playing around with a high frequency trading system and might blow up the market. so the fcc forced those firms to send the trades through a broker dealer like knight. this is the most sophisticated trading firm, blows itself up, and this is not really a speed problem. the trades were very fast, but we saw it go on for 45 minutes. i know people across wall street that understand how the systems

work that are scratching their heads. 45 minutes in the stock market is an eternity. >> so what it was? >> i have no idea. we're trying to figure out what happened and you know, i mean i think the exchanges were asking this question as it was going on. they were contacting knight saying why are you doing this? >> so instead of machines gone mad, it's algorithms gone mad? >> or people gone mad. there are people involved every step of the way. they designed the programs, putting in the code, it's just when the code is unleashed into the market it becomes unstoppable and you have things like, you know infinite loops, we saw facebook ipo crash on nasdaq, bats, global investing. >> so many things hurting investor confidence right now,

thank you scott and herb. coming up next, the nerdiest house in today's sign of the times. because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter.

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