corn shot higher. i'm looking for a convergence again. >> interesting. okay. jim, have a safe trip home. >> i appreciate this. thank you for having me. >> you'll be back. trust me. that does it for us. ty, have a wonderful weekend. >> you, too, sue. never confuse potash and corn. "street signs" begins right now. oh, some good advance of tyler. welcome to "street signs," everybody. sully is off enjoying a day. so it is herb-a-palooza friday. you got herbalife, jcpenney, monster and many more. he's also going to be along with a disaster du jour that's down by 41% and plus we will debate if e-trade's ceo is a fall guy and what they'll do with the cash and potential good news of

research in motion. lots of things on board. okay. the third straight day, not much movement in the major averages but the dow and s&p 500 both on track for their fifth consecutive week of gains. the s&p is trying to stretch a winning streak to six days in a row. it could also accomplish a feat it's not done in 11 months which is register gains in all 5 sessions of a nonholiday week. the nasdaq also down today but on track for the biggest weekly gain in nine weeks. let's get down to the nyse. bob, the ipo of manchester united. not the fact particularly it's a lackluster debut but the trading going on with man u and the high frequency trading community and how they're making money off this. >> yeah. there's really kind of two things going on here. there's sort of rebate trading. manchester united, 16.6 million sharyls at $14. there's a syndicate bid that's going on here. that is, the people who

underwrote it at $14, they're holding it at $14. that stock not dropped below and they won't let it, probably at least today. we don't know how much firepower they have. this is great newins as a professional trader. buy at 14.01 and sell at 14.02. there's rebate trading going on with professional traders do get a rebate for directing order flow to the exchange. you sort of can't lose on this kind of deal. i think the big issue right now is what's going to be going on with the syndicate bid, mandy. how long can you support this at $14? they're concerned it might drop below there and bids at $14. it looks to me like the volume is drying up. you don't have a volume chart but the volume dried up a little bit suggesting to me it's unlikely to go below $14 today. that that biddle probably hold. now, how long are they going to try to support it at $14? nobody knows. this is not the kind of thing that anybody puts out a press

release about but i would note it's trading in very, very narrow range. 14.01, 14.02, 14.03. when that bid support goes away, whenever, monday, tuesday, wednesday, it will probably trade in a lot more volatile range. i don't know if it trades below $14 or not. but the important thing is that right now the stock is being supported. overall, the big issue here, of course, what the investors getting, people buying in. we know what the company is doing here. paying down a lot of debt right now and again the history of these kind of sports franchises is not particularly successful from the point of view of stock investors. the people who end up making money normally in these deals are the owner who is sell them to other owners historically, stock owners did not do particularly well in this case here. so again, doing 25 million shares. bear in mind, they sold 16.6 million to the public so we have done 150% of the float. 150%.

in the last four hours. mandy, back to you. >> thank you for that, bob. talking of volume, the volume at the top of the show. we're working on it, guys. persistently pessimistic tone in the market is finally turning around. bullish sentiment rose to 36.47%, bearish sentiment tumbled to 27.45%. that's according to the american association of individual investors. so, four stocks, could that be another bullish sign? joining us is charlie gushey, managing director and michael pervis at wheaton and company. thank you very much for joining us. charlie, i add another bullish indicator and you say the economy seems to be bottoming. things turning around on that front and starting to see the positive flow on from that in stocks in the next few weeks. >> yeah. mandy, it's interesting, it takes a lot of putt-putts to turn a ship and had positive trend of u.s. economic

indicators or a couple of months and markets slowly react to it. looks like there's more to go on that. historically and look at when to react to positive economic indicators, you have a little while before you need to pile in to equities and you're about there to the entry point in -- on that indicator in the u.s. if you look at europe, not there yet. still very far away and lots of tile. >> lots of time. would you agree with that, michael? >> to a degree. one thing to recognize talking about the market conditions over the last several weeks is policy response of central banks, whether china, the u.s. or, of course, the euro zone, has been really, you know, i think a defining feature of the conditions and more and more likely that we're not going to get any qe3, not any time soon. based in part on what charlie mentioned and so i think given there's a fair amount of qe3 in price levels right now, i'm concerned about that. and i think a lot of these

rallies is rather muted because i think we have to step back for a second and realize that the global ddp picture is one of pretty significant reset and structural resets in the china and u.s. and europe happening the same time. >> so michael, when and if the penny drops and not getting qe3, how much do you think the market will give back? rallying in the dow and s&p of five consecutive weeks. how much is on expectations of qe3, do you think? >> well, it's always hard to put a fine number on that. i would say in terms of a downside target, it's nothing drastic. i don't think it's a replay of 2011. at the very worst case, 1220 and probably 1300 lows from here through the end of the year. but in terms of upside catalyst to take us further up, let's not forget there's lot of jitters throughout the world and defining trading, you know,

really since the lehman broerts crisis of 2008. >> absolutely. charlie, back in you in terms of your strategy. maybe in the next three weeks to see some kind of buy signal for the united states and not yet europe. what would you buy in the states? >> well, you know, looking out three to six months, i don't disagree directly with what michael said. you might see markets run and come back a little bit. they're noisy markets and you buy good companies and themes down a little to accumulate positions and i think that's a good trade. on michael's point on the qe, what you do have is just such low water level on interest rates that it's actually adding a lot to u.s. pocketbooks. the low interest rates combined with some debt reduction has added about 3% to household incomes net of what they pay out in interest since the end of the last boom. so, you know, if you compare that with things like wage

growth that's meaningful and supportive to an okay picture in u.s. gdp growth so that's the theme i would still be playing looking at u.s. or europe. within europe, i think you should look for cheap and high quality companies that play in to a fairly robust u.s. cycle and there are still things to did. >> of course, the very low interest rates terrible for savers. charlie, michael, thank you for joining us today. okay. herb on the street time. herb, sitting here in the cozy control room. a bit of a new stage for us but that's what happens when you have technical problems. we have developments on herbalife. >> evolving things going on. the s.e.c. companies mundane questions about the quarterly and annual filings and show up on the website under something called correspond and upload. a recent exchange of herbalive and the s.e.c. hardly appears to

be routine. they zeroed in on one of the same questions of disclosure that is hedge fund manager ihorn did on the company's earnings call. notably, the agency wanted to know why the company stopped breaking out details of sales to different types of distributors and why the company doesn't give disclosure about something called the 70% rule which gets to the heart of the controversial issue about how the herbalife products are sold to end customers. herbalife told the s.e.c. it doesn't believe it's relevant. they told me it's closed and no investigation. but as i write on cnbc.com, with the s.e.c. asking the same questions as einhorn, maybe investors should, too. >> i'm sure they'll be doing reading themselves, digging themselves. will ron johnson see the jcpenney turnaround through?

we'll is ask an analyst armed with the scoop from behind the scene. banking scandals, softening economy, the uk needs to get the mojo back. lots of things coming up. 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.

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you have to look at jcpenney year to date. six months after ron johnson launched a bold, new turnaround plan, the stock is still hurting. will jcp report in the second

straight quarter of declines. how many more to expect? let's ask our good friend jan niffen just back. jan, you say there's still kind of a 50-50 shot ron johnson pull it is turnaround off. >> that's an improvement. that's good for you. >> i said all along that he was trying to do the impossible. three-tiered pricing wouldn't work. 1,100 stores. now, he's backed off of that and only trying to do 700 stores. he said today, we'll figure out what to do with the other 400. he said they'd go away from the three-tier pricing starting august 1st and now just doing every day low price and clearance, consumer will understand that. so do i like it better? yes. now he's only trying to do the really, really hard stuff that takes a really, really long time and at least no longer impossible you. >> like it better but not enough to buy it, right? what would make you buy it?

>> you know, i took my short off at $19 and i debated whether or not that was time to buy it. i was concerned about the performance over the next six months. i think it will be really tough and i think they'll have worse performance over next six months than the first six months. they didn't expect it to get better over six months. they didn't say it would get worse. >> they pulled guidance and not going to get in to the guidance game anymore. i don't know how he ever got himself caught in that but the real issue is when you say it takes time, how much time? >> i said they would have customer attrition for nine quarters. we're only two quarters in it to. i haven't changed my mind on that. they think they'll have growth in 2013. sales base. i think they would be really lucky to have growth in 2013 on the sales base. could they have growth in 2014? yes. but from what level? i mean, they're going to be down more than 20% this year on sales. if they're down again in 2013, they'll be coming off of a

pretty low base to get to the 40% promised gross margin. >> ron johnson said they have enough cash for the turnaround but what kind of time frame are they factoring in? >> my time frame is longer but they have enough cash. they're going to raise another $250 million by selling nonessential assets. they're generating reasonable cash flow. even their bad stores generate reasonable cash flow. i don't think they have a liquidity issue. i think they have an earnings and sales issue. >> well, you know, there's an issue here where and i tweeted this out this morning. it is a disaster or a value stock an i didn't say a value trap because the value investors are in here. value guys come in here. what do you think? do you think there's enough there? again, this is a market that does not like short-term anything. you know? long-term anything, excuse me. does this -- can't he get through the long term with

investors hanging on and having that kind of patience? >> well, i think that's an issue. i don't think anybody's investable horizon i deal with is four years and really hard to buy the stock over the next two years. >> who do you deal with, a bunch of traders? a lot of people really are still invest to recalls in the marketplace. people that invest in a company. is this a company to invest in or so unknowing it's the ultimate speculative bet? >> i think it's a very speculative bet at this point in time. until we start seeing some progress, after all, this is not being done in a vacuum. yes, they're going to do technological changes and so is macy's and kohl's. they can't do this without people shooting at them. >> were you wooed by ron johnson? looks like the magic worked on you. >> i am no different than where you talked to me two weeks ago. the stock has fallen a lot. you have to make a decision. yes, i don't think they're going broke.

so, now it's a question of how long can you hang there and what kind of return will you get? i still like macy's better and kohl's and walmart and nordstrom's. putting my money in, i put it there but do i think they're going out of business? no, i don't. >> they're still very high short interest in the stock. >> very high. >> would you say? >> i don't think that's going to change because i think there are enough people concerned about liquidity they think it could be a $15 stock and when it's at 22 they're playing that game. i personally thought at 19 it was down to where you ought to just 23figure to sit and see wh happens. then make a decision when i see the results. >> okay, jan. stay right there. we want the look at the oil import and back to school season for retailers. courtney reagan has it for us. my kids won't be back for another month and i have to buy stuff for them? >> others are putting it off. there are a few undeniable

truths, kids growing is one of them. this year retailers are trying to win back to school shoppers on or offline and this year especially challenging for the specialty retailers. citi analyst expects the softest back to school season since '09 and not only fashion trends uncompelling and mall traffic relatively weak but the macroenvironment and tough sales comparisons are headwinds for financial performance as it is. sales may not be enough to entice consumers to buy more than the essentials. a survey conducted 75% of consumers are going to mass merchandisers like targets, walmarts, those types of stores. 34% going to department stores like macy's, jcpenney. 29% shopping online only. specialty retailers are not making it on the back to school

shopping lists. jpmorgan notes american eagle is working to compete differently boosted fast fashion and even aiming for a slightly older customer. one specialty name that's getting positive attention, gap. jeffries has gap as a top pick expecting solid results in the coming months due to improved product. had a nice run here. mand >> i want to bring jan back. what do you think? what are you expecting for this very important season? what is it, second most important season for the retailers. who are the winners and losers in your book? >> i generally agree with what courtney just said. i think that walmart's going to have a very good time. they're very well set up for back to school. they started early. good sales. i actually came here from garden state plaza. the place is mobbed with back to school shoppers right now. i think gap will do well for back to school. much lower prices on the floor. american eagle will do well despite being a specialty

retailers winning the game in specialty. i think vans and zumi have a good. i think target's going to have a good back to school because the mass guys are doing well. >> is there a must have product, every single cool kid needs to have? >> we did a survey an number one comment was apple and basically anything apple. so that didn' change. and that's the same answer we got last year. >> and getting younger and younger. my 9-year-old is wanting an apple something. doesn't matter what it is. got to have an apple on it. thank you for joining us today, jan. coming up, our disaster du jour with a ceo with nba aspirations watching the company's stock get slammed. plus, could the next big thing in alternative energy be blowing in the summer wind? [ male announcer ] at scottrade,

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welcome back. i'm seema mody. watching shares of roundys.

the company also lowering its yearly guidance. same store sales falling 3.3%. overall not a good story. the stock getting hit. down better than 24%. >> thanks, seema. disaster deyour team, herb is here with a name that is down around 40%. it really qualified for the top spot in today's disaster du jour. >> remember, ubiquiti network's, the ceo went out and put in a bid to buy thephis grizzlies nba team. now, i have written and talked about this company quite a bit here raising a bunch of red flags. now yesterday, they came out after the close with inline earnings but the guidance was absolutely horrific. that's what knocked investors for a loop but it was the bizarre reason for that. really lousy guidance that further spooked people. counterfeit products, actually, is what they said. they said the counterfeit products are stealing business.

what's worse, the company says this issue may lost for two quarters. i don't know how they know just two quarters. what i do know is makes you wonder whether something more is going on. by the way, about that basketball team -- para still going to buy it? he said he can't talk about it but regardless he said he's still committed to the company. when a guy comes out and, you know, this is a company, lots of things going on. going to buy a basketball team, that's like putting the name on a stadium. sort of asking for trouble. like a magnet for problems. >> sure is. it was cut to neutral from outperform. price target down from 17 bucks to 8 bucks, as well. can i say how smart you're looking with the jacket on today? >> thank you. i decided rather than looking like an shlump -- >> schlepped in. >> i would dress up for you. >> here's a name for us,

cornerstone on demand. csod. a santa monica company with systems they also provide consulting services. the stock at a new 52-week high and today is doing very nicely, up around 7%. making renewable energy a reality, a californian is looking sky high to look for aal ternty in today's scarcity solutions. he is the wind surfing ceo of makani power whose turn bins might make -- >> it's at a thousand feet and generating power of wind higher. >> >> reporter: wind energy is running he. >> it's expensive and because of

the low prices, it's difficult for conventional wind power to compete. >> reporter: the futures are at five-year lows but he claims they'll turn the tide on wind energy prices. >> we have the opportunity to compete directly with natural gas at an unsubsidized cost and could be lower. >> reporter: the todd rogers bins are 90% smaller than conventional ones for power at half the cost. >> the next wing we're building is 600 kilowatt device and could power about 200 family homes. >> reporter: the help of buddies and google co-founders page and brin he is several years from bringing the first airborne turbine to market. >> it's based on the desire and the idea that we can lower the cost of renewable energy below that of carbon based fuels. well, coming up next, the sweet sounds of success this quarter. but what about going forward? we'll ask the ceo of harmon why

they lowered their guidance. i guess he needed some more baby training. are babies trading. ceo of e-trade out. whether the pressure to perform is so great the bosses are boosted for things out of their control. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream ttd#: 1-800-345-2550 let's talk about the cookie-cutter retirement advice ttd#: 1-800-345-2550 you get at some places. ttd#: 1-800-345-2550 they say you have to do this, have that, invest here

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let's close out the week with the friday edition of "street talk." first up, rare good news for beaten down rim. the shares about 8% higher today on a report ibm may buy research in motion's enterprise division and also other rim news, california judge overturned about a $147 million jury award against rim yesterday, ruling that it has not infringed and -- >> let's not kid ourselves. let's not kid ourselves. the reason the stock is up is speculation of ibm may do. that fits in to ibm's business. whether that happens is unclear. ibm apparently said or rim apparently said, excuse me, that they may not do anything regarding a sale until blackberry 10 comes out and sees

how it goes. it's the piecemealing of the company, the partnering of this company which is where the value would be to anybody watching it. >> okay. we'll stay with the tech patch and talk about yahoo!. yesterday we were giving a progress report for how the first three weeks on the job for marisa mayer has been. there was the announcement that the new ceo marissa mayer may reconsider the cash it gets from the sale of half of its 40% stake in the chinese internet stake. they previously promised and here's the kicker, they promised to return most of that money from the billion dollar deal to shareholders. >> actually, that was before mayer came in. she's there and carte blanche of an investor to come in and do what needs to be done and looking at a company she may not want to piecemeal and take apart and do whatever. and come out and actually do something like build the business. by the way, that could be

considered returning shareholder value. it could be over time. and that's what gets lost in the translation here. that's not what people wanted to hear. by the way, investors don't have a choice in this matter. they can leave and new investors could come in. so that's how it's playing out. it's very clear to do more. in the end, after she assesses things, we'll find out. this is in the 10q and in an 8k after the close yesterday. >> may not happen. just considering it. okay. we warned you about this one yesterday. monster beverage, a biggest loser on the s&p 500. now saying the name sake energy drink investigated by state attorney's general. >> a state -- with what? regarding -- >> in regards to ingredients, advertising, amongst other things and the stock i think down about 16% since its second quarter earnings came out because it's looking as if slowing sales -- >> a little bit of a deceleration. this news got people after the close and i find fast yating about this, look, i was wrong about monster many years ago

thinking the big guys could take them out and the health issue. that health issue never materializes. now you have the company coming out and effectively saying that on july 12th, they got this inquiry of a state attorney general. they didn't mention this on the earnings call the every day and the investors had to wait until the 10q came out to see this. you have something saying what's going on here? one state? only state? what is the state? so this is something that with energy drinks you have to sort of look at. we have all thought it would be something one day. maybe one day it will or not but it's -- >> a few blanks to fill in. we'll stay with the beverage beat and talk about pepsi and coke. pepsi says it's pulling gatorade from the shelves citing poor sales of the beverage. the stock isn't reacting too much to the news. >> you know what? the whole portfolio of gatorade is important here. they're actually going to tinker with it. bring it back to market at some

point in the future. but it's showing the concern of losing share to powerade owned by coke. where it goes, i don't know. this is just interesting because it's one of the drinks not like the gatorade people want it. some people love it. >> this is a power struggle of powerade and gatorade. coke is plastered all over the olympics as official sponsor. powerade all over the olympics. it's a tug of war. thank you sh herb. >> it's always a pleasure. shares of harmon international, this is a maker of audio and entertainment equipment. the stock's up 50% over the last 12 months but is europe going to be a headwind for the company going forward? let's ask chairman, president and ceo of harman international. great to have you with us today. i'm looking at the numbers. looks like rising diosable income in china and other bricks

is great for your business and i see the revenues in the bricks grows to 25% by 2015 hopefully. so, what about the u.s. and europe? what are you concerns there? >> you know, u.s. and europe, they're actually doing quite well. u.s. has underlined strength we're happy. one can always debate how fast u.s. is growing but it's growing. europe, not one country. it's multiple country thinks and 30% of our sales comes from eu-5 and 75% of which from strong german companies and production release and forecast is strong for germany. emerging market continues to drive our sales up and china grew 42% last year for us and we have gone from $20 million sales 4 years to $400 million sales. that's an outstanding development so i think we are pretty balanced growth story

here. >> that being said, you did lower your guidance and a reason given is weak euro. you have a very big expose your in european countries. are you concerned about demand in the future going to slow down there? >> well, first of all, very good question you ask. let me clarify. on a constant currency basis, we actually confirmed the guidance from last year to this year, holding on and very confident that that's the right thing to do. what we did is since the euro has moved quite a bit in wrong direction, we had to do the translational adjustment which is what we did and most of the analysts this morning on the call are happy because they have seen last four quarters almost half a dozen companies came out and adjusted for euro down and downgraded the guidance which harman did not and still hoping what we have announced today that next year anywhere from 7% to 10% growth in the company and some 25% to 35% growth in earnings and by all means that's

a great development nextier. >> you announced the u-connect system, as well. is this a game changer for the automobilendustry? >> i hope so because this is another first for harman. first in the industry. you don't have to have a phone inside the car and you're connected. that's our promise and we're delivering on it that we want to bring new connectivity and you can a first in the industry and imagine how many people in the united states have a smartphone or phone in the car. what about grandma and grandpa? we have a solution. it's good for both, whether you have a phone or not. you're always connected for safety reasons, for the connectivity. and that's the direction we have been on in german and italian automakers and now with u.s. and that brings me to the latest award with general motors and excited about that, too. >> indeed. $900 million contract of general motors. thank you for joining us today. >> good to be here with you, mandy. thanks. let's get a market flash with seema. >> look at shares of goldman

sachs. hitting session lows. cut goldman sachs credit rating one notch. saying it's concerned about goldman's prop trading positions and the potential cost of complying with the volcker rule. mandy? >> thank you. coming up, can london use the olympic goodwill to get the mojo back? and, the masters of the universe will sail for bragging rights. and a good cause in new york, find out who won when we return. d 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,

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the new new york works for business. find out how it can work for yours at thenewny.com. and coming up on "the closing bell," food and energy prices are spiking. will fears of inflation become a reality? and then the latest headwind to the economy. plus, a new report finds that financial reform costs banks tens of billions of dollars in lost profits per year but will they pass those costs along to consumers? beer may not be shockingly able to solve the world's problems.

a superpac is raising a lot of money so lawmakers sit down aover a cold one. okay. we're heading in to the last weekend of the competition at the london olympics with the u.s. now overtaking china in the medal count, but with all of the goodwill, britain is getting for hosting the games, can it get its mojo back in the series of scandals and softening economy? kelly evans is covering the games very well. mojo, can we do it? >> reporter: hi, mandy. you know, the question around town as the games wind down is legacy. the idea that the massive costs of hosting these games will hopefully pay off both in terms of national brand for britain and financial gain. you know, when you look at what london has spent on the games, $14 billion on infrastructure improvements ahead of the olympics, some of those costs won't be recovered but others like construction of venues and

housing should be recouped when the venues are sold following the games. the sales meant to keep london from experiencing the cities stuck with white elephants. bird's nest stadium in 2008 now hosts only about a dozen events a year and one of the busier venues and costs about $12 million a year to maintain and in athens, the 22 stadiums built for the 2004 games still cost $124 million a year. the hope in london is that the city doesn't just recoupe the investments but also enjoys a more lasting boost and one the faltering economy needs from hosting the games. tourism is one of the brighter spots. deloit expects to grow through 200 outpacing the broader economy. even better, of course, would be if the focus on sport helps britain fight the high obesity rates and threatening to dent

productivity long term. meantime, take a look at this chart from goldman. it shows the performance of host city stock markets before and after the olympics. and as you can see, all recent 0 olympic hosts outperformed following the games. so that perhaps is one reason to think about football next time you're looking at whether the ftse is a good investment. >> that's fast fating. just very quickly, financials aside, in terms of people's pride, the brits' pride in their nation, how's that mojo going? >> reporter: offsetting some were worried about as a temporary hit from the games. lost retail sales, for example. morale is so high and i don't want to jinx anybody but the event largely gone off smoothly. there's not been major issues. everyone we speak with here trying to get around to events visiting london, going through for other reasons said how impressed they are with the

signage and volunteers here to help them and how well organized the event has been so between that and britain's medal haul victories of people like andy murray, that's a reason why people are in a pretty good mood. >> let's hope it remanes. thanks very much, kelly. now to competition here at home. the hedge fund regatta last night, more capital sailed their way to the victory. this was the first year winning. seizing the crown of last year's winner. event started in 2004 and the proceeds of the event go to operation optimist, that's a junior sailing program run by the new york harbor sailing foundation. well, just over an hour or so left in the trading week so let's check on the markets from the floor of the new york stock exchange. joining it seems to me jonathan corpena. jonathan, set us up for next week. we've been trading in a very narrow trading range for the dow this whole week. what about next week?

anything to break out either to the upside or downside? >> you know, i think everyone's been waiting for some sort of catalyst to the market and not fully knowing what that catalyst is going to be so let's look at next week. we have economic data coming out next week and seems like the data hasn't been moving the markets either way. we're getting conflicting data of washington giving investors more of a reason to stay on the sideline. next week, maybe we get a headline out of europe. things have been quiet last few days. eerie for me. i like to hear information. we haven't heard much this week so far so hopefully we get more information coming out of there. earnings not moving the market right now so right now we continue to wait for the headlines out of europe. >> that's depressing, isn't it? just like latching the hopes on to something coming out of europe. is there anything looking to buy should bit at a good level? >> you know, if wyou're looking at the s&p, the 1400 level is an important pivot on the charts there but across the board we have been seeing some -- a lot

of moving in and out of sectors, back and forth and shows the uneasiness in the market right now so one day the cyclicals, the defense stocks could be hot and the next week it's the energy so back and forth it seems like not that one sector for anybody to rely on at this point right now. a lot more trading than investing going on. >> understood. jonathan, enjoy your weekend. thank you for joining us. it's a hot seat now. e-trade eco bounced from the crib for locust her trading volumes. next, we'll debate. are chief executives the fall guys and gals, of course, things are out of their control. you know what i love about this country?

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shares of etrade, a big winner on the week, on news that the ceo is out. they did not give reasons for his departure, but they blamed a drop in profits on a slow down

in retail trading. should he will blamed for a lack of interest in this market? and should ceos take the blame for things outside of their control. joining us now is jay brown. and jeffso son nonfield. is this a fair situation when it's out of his control? >> they don't mind taking the credit when it's a great surge in the economy and lifts all the boats. you hardly see the beneficiary of good times, and when it's bad times, they should take the hit for it. it's also war and peace that we gave too much create to this person in history saying

napoleon was just being carried by world events that people argue is a complex and international trends happening. ceos matter and make a difference. >> is this an unfair situation, and in general is it the weight and burden of the ceo? >> i think, mandy, this has got to be sending shivers through the spines of most ceos in the country. while we tend to identify the ceo as the face of the company, it's the director who is have the power, and they meet eight or ten times a year on average, and if they choose to meet and a majority decide to replace the ceo for any reason, if they've lost confidence in the ceo, they can do it. one other thing i want to point out is something that other companies have to be looking at.

with this particular case, the chairman and ceo were two different people. it's the model in the u.s. that enchairman and the ceo are the same. it gives the board more independence, authority to do just what the board at e-trade did here. i think the other thing ceos are looking at is if they have a separation model and if they want to get rid of it, it's risky. >> i disagree just a little with that. i don't think there is anything evith separation model, but we put too much of a governance on it. nine times out of ten they already had separation. to taking a look at the fiascos at best buy. any governance scandal that didn't already have that in place with the exception -- >> i agree with that. >> my only point -- >> you're right, a lot of times good guys are taken out too soon

like mickey at the gap, or chris from motorola. we saw it happen, and we'll see how that happens at barclays in throwing out bob diamond, they vilify a good person. but we see so many where they don't act in time. accountability matters. >> but if you're the ceo, you want to keep your job, and the thing you will look at, is there anything that will lessen the potential. i'm simply suggesting if the chairman is independent that's a greater risk of replacing the ceo. symtek, e-trade, i think if you're a ceo of a pig public company and you have to be concerned with that structure right or wrong.

>> how long should the ceo before given? this guy was kicked out two years into a four year contract. is there not even a generalization that we can make here in terms of times. lounge should a ceo be giveen to turn something around? >> this is a huge problem. taking it private again, some places in retail, certainly places in bio tech, it takes awhile to change an enterprise and turn it around, verizon for awhile, people were vilifying him, but they're making huge investments that would take a few years for that technology to pay off. we need more than two years, but iss and other government metric firms have very short-term

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