401(k). i'm up 31% for the year and 103% since october. >> charlie widmer says i put $280,000 in my i.r.a. and 401(k) over the years. traded it to 1 at any ti.2 mill. you have to be a fwood tradgood. no guessing or hoping. >> thank you so much for trading -- trading on my brain -- watching "street signs." you can tweet us as well. >> "closing bell" right now. hi, everybody. good afternoon. we enter the final stretch. welcome to "the closing bell." i'm maria bartiromo with the new york stock exchange. the market trying to fight back in the final hour for a rare monday win. >> what are you doing way over there? >> you're over there. >> so far apart. i'm bill griffith. keep in mind the dow and s&p are up for the past six weeks. but with more investors pulling money out of mutual funds lately, this is not a market that you would say has a lot of conviction right now. here's how we stand. we have come off the lows of the

session. set on the open this morning. lower stocks in china and overseas in europe as well this morning put some downward pressure this morning on our markets. we've come off those lows down 11 points on the dow at 13,263. the nasdaq down four points. also off the lows of 3,072. s&p 500 index down a point and a half at 1416. >> meanwhile away from this broader market action we're watching two stocks closely today. apple hitting a new high today. take a look at where it is. 662.55. the company has now taken the crown as the all-time market cap king on wall street. beating microsoft's previous record of 618.9 billion back in 1999. also facebook. different story there. but after falling below $19 a share earlier the stock has since rebounded. take a look at that. we're looking at the stock at now 19.86. more on these two stocks coming up in the program. we found a bull. we finally found a bull on facebook. we'll talk to him coming up in a little bit. >> yes, we will. is this market poised for more

gains or future pain? >> in today's "closing bell exchange" we have josh brown, fusion analytics. lee munsen, portfolio -- our own rick santelli. none of these gentlemen is the facebook bull we're talking about. we'll get to him a little later. josh, is this a head fake rally? that's really the question we want to get to at this point. very low volume. very low volatility. but the markets just continue to drift higher here. what's going on? >> we're actually calling those two volume and volatility the volcanos that could erupt at any time and actually matter. but they haven't mattered for a very long time. i think there are some real pos postive heers. the most positive being wall street is so far behind the curve. they are so bearish this is actually the first time since 1999 that stocks have been above their forecast by this much this late in the year. that's number one. the only real negatives aside from volume and volatility, which i think are a little bit

overdone, is the fact we're not seeing as many new 52-week highs as we were earlier in the rally. >> right. >> that's the kind of divergence you don't want to see. that's one thing ever investor can track. it's probably a very good tell. it's not perfect but as good as you get. >> can you really read too much into it given volume? are we talking about labor day and the approach of summer -- the end of summer? are we talking about the election? sort of keeping -- >> maria, that's the bear case. that when everyone gets off the beaches in europe and gets back to work, specifically the politicians, combined with wall street traders coming back and saying, all right, i have some gains. i'll prune them. that's what people are worried about. i don't know that it'll matter as much as people think. but that's definitely out there. and it's a reason to look at things like these divergences like less new 52-week highs versus 52-week lows. it's a reason to say, all right, there's a huge gain but right now not as many stocks keep breaking out. maybe i'll take some off.

>> lee, i don't know. you're looking at the s&p at 1440 by tend of the year. have you been raising your target as a result of this rally? >> no, i haven't. i started the year off at 1440 and moved around. now i'm just back where i started back in january. i think josh makes a few good points. on his blog he talked about how all the earnings wall street beat and he'd never seen that before. i'm in that camp as well. maria, i don't think that people should look too much in the volume. the truth about volume is kind of like the truth about employment. you have people who are just not there because of seasonality. then you have -- you talk about employment. you have the people who've given up looking for work. we have investors that have given up on looking to invest money in the market versus, say, ten years ago. when we s these stats for the new york stock exchange and the volume, there's two things we need to look at. first of all, apple. it's a high price stock. why don't we ever look at the amount of dollars being traded in terms of dollar volume versus share volume? two, how many individual investors out there are no longer looking for work?

no longer looking to buy? i think that would mitigate some of the volume, you know, argument. to some extent. >> the other side of the coin, oliver, as you say this rally is actually a head fake. there are dangerous signs for this market ahead. >> yes. right now on a technical basis obviously we continue to inch upward. we think that's likely to continue through the end of august and possibly suspect. when you look at it from a historical perspective, stocks up over the past 12 months. earnings and revenues up low single digits. that's not sustainable. we know about the fiscal cliffs and some of the headwinds we're facing going forward. we think 2013, in particular the first half of 2013, is going to be very, very challenging for investors. now, that doesn't mean there aren't going to be winners in there. but you'd better be careful and do your fundamental analysis. >> rick, still some confusion about the role the ecb is going to play in trying to fix our debt crisis. are they going to put a cap on yields over there? what are they doing? how do you read the market's

response to all that today? >> oh, yeah, no, confusion to the tenth power. and i think it continues. you know, volume used to be an important variable to monitor, you know. it was like amps to electricity. but considering all the issues that everybody's brought up, you know, it really hasn't changed the trend direction which i find fascinating. light volume or not, stocks have been going up and they're staying up. interest rates since mario draghi's comments started going up, they're staying up. in terms of the fiscal cliff what always gets you are things you don't see. we not only see this coming, we talk about it every hour. >> guys, one other thing i'd throw in here on volume. you have to keep in mind, most of the market at this point is doing indexing. most of the market right now is allowing asset allocators to buy and sell etfs. those are pretty static positions. we really don't have an investor class that's actively buying and selling stocks. the day trading community has dwindled because of attrition. they've been up against these

algorithms that have knocked a lot of them out. it's really foolish to expect a return to the volumes of the late '90s or even the middle part of the past decade. investors are in the market but in a different way than they used to be. >> i agree there's a structural change in the market. but i also think this low volume is something to be paid attention to. it is the market speaking to us right now. and lee, maybe -- i'm going to play in your hand here. when you get this kind of come play sensy in the market, this is not the kind of market you want to short. do you agree or not? >> i would not be shorting this market right now. we have a vix that is making lows from the last couple years ago, a low vix does not always mean it's time to go in to buy. look at etns and etfs that track the vix. there's no new dollars going in there. i think that right now if you want to play the short side, it's suicide. for this technical analyst, i would humbly disagree that what we're looking for is that testing and backfilling at 1440. and then i think we go higher.

>> wow. all right. thanks so much. see you soon. appreciate it. final stretch of trading here with a market that is fractionally lower with the dow down about ten points. the dow lower. nasdaq also off of the better levels of the day. >> feels like it wants to go a little higher here, doesn't it? >> well -- >> you don't think so. >> i think it's running out of fee steam, actually. >> we'll talk about that. don't go away. a lot more ahead on this monday edition of "the closing bell." coming up, assisted living. first, they built up the banks. then the auto industry. but did the obama administration drop the ball but not bailing out struggling homeowners? the debate, straight ahead. plus, about facebook. are shareholders finally fed up with what could be the most overhyped stock in a generation? later, checkmate. chess master and putin political rival gary kasparov talks to maria about his arrest

supporting freedom of speech in russia. that's all ahead on "the closing bell." it's something you're born with. and inspires the things you choose to do. you do what you do... 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. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] to dabble with the idea of hybrid technology, it's already engrained in our dna. during the golden opportunity sales event,

get great values on some of our newest models. this is the pursuit of perfection. with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.

welcome back. about 50 minutes left in the trading session. if you're just joining us let's get you caught up with the market stat check. stocks hitting the pause button after six straight weeks of gains. right now the dow is down 15 points. kind of heading lower here again at 13,259. a 45-point trading range so far today. very narrow trading bands the last few trading sessions. meanwhile, the fear indicator, the cboe volatility index on pace to finish below 15 for the seventh consecutive trading session. up a fraction at 14.18. what a difference a year makes. remember last august, maria, when the vix was trading in the mid-30s because of the debt ceiling crisis in washington. >> we're in a similar moment right now with the fiscal cliff issue. but interesting you're not seeing -- >> only in slow motion, though.

>> slow motion. did president obama do too much or not enough to help the housing market. that's what we want to talk about now. it's the focus of a "new york times" article today which says the president's efforts have fallen short of turning around the housing market. it is suggesting that our economy and his campaign would be in far better shape if he did a full-on bailout of troubled homeowners. >> during the president's news conference you saw it live here on cnbc earlier today, he pushed congress to do more on that issue. >> we're going to be pushing congress to see if they can pass a refinancing bill that puts $3,000 into the pockets of the average family who hasn't yet refinanced their mortgage. that's a big deal. >> fred glik at u.s. loans mortgages agrees the government should do more, take the gloves off, fight this housing mex. david liken of mortgage banking solutions says less is more. fred, the stories suggest "new york times" in the that they were late to the party. they wanted to do less in the

beginning. they raelgzed it wasn't helping. so they added and now it's starting to help. is it too little too late? what more do you want to see the government do here? >> well, for starters, bill, t.a.r.p. 2, they should be talking to the fhfa, fannie mae and freddie mac and say will you please allow the lenders to do the unlimited loan to values on the h.a.r.p. loans so we can get another million people refinanced so municipal can go back into the economy. that's a big start. second of all, how about congress telling all these lenders who were doing short sales to get it together. do it in 30 days as opposed to dragging people out for six months. and, also, on the foreclosures, how about a government program, everybody hates those words, but that would lend money to the banks to fix up the houses they are about to -- they've foreclosed on they haven't put into market where they'll be

able to get local jobs going and then get paid the money back so it's more than revenue neutral, the bank's going to get more money back? duh. >> that's a pretty big list of things you think should have been done. david, you're on the other side. >> that's only one cup of coffee, maria. >> you say less would have been more, right, david? >> absolutely. here's the point. we look at what they've already done. it's been a middle of the road approach. no one's happy on the left or right of the discussion. really what do we have for it? every time they've stepped up to do something, it has not brought the results. the free markets are the best way for this to recover. that's why we need the government out of this. we need leadership. what we're talking about is leadership, not government programs and more subsidies and more expense to the taxpayer -- >> what would leadership provide there, david? what would they do different? >> number one when you saw last week the u.s. treasury come in and putting pressure on te marco at fhfa to say that we need to encourage fannie mae to do

principal reductions, that is a private market. that is a private property decision. what they should be doing is meeting with investors, bringing leadership, saying, gentlemen, are you aware of how much this could impact your -- limit your losses by stepping in and -- >> david, do you realize how there's fannie mae and freddie mac that aren't doing it? there's nobody who's stepped forward and said, hi, i'll become fannie mae, freddie mac so we can have a secondary market. it doesn't exist. there's tiny little pockets of little companies that are putting together secondary market products without fannie and freddie, nobody's going to do it. because everybody wants the -- >> obviously they can't be unraveled overnight. are you saying that you think, david, that this market would be farther along, would be in better shape if the government did less? >> actually, if the government had done less. but less in the way of monetary policy and more, maria, in the way of leadership. what i'm talking about in leadership is sitting down with those that are holding the

investments and these loans and bringing leadership to show what could be done with a principal reduction. but not done through the policy or through pressure of ed de marco. >> isn't one of the big problems we face right now, fred, the fact that the infrastructure in the mortgage servicing industry isn't built to help a homeowner who's in distress right now? they're either there to collect the payments or to foreclose on that home. but they don't have the skills and the infrastructure set up to do anything besides that. isn't that a big bottleneck in this problem? >> bill, that's a great point. because what happens is they're sending in a package to these people. they've asinled a cup of people to look at the short sale process. what about hiring mortgage brokers who do this for a living, who can look at these packages and give them answers to say short sale, not short sale, give us the criteria? >> these things take time, though. these things don't happen overnight. they take time.

as david suggests, it's going to take patience to get the market on the mend here. >> patience and leadership. >> there are too many easy ways -- there's so many easy ways to fix this. leadership is a great word to say. it sounds so good. >> there's so many easy ways to fix this? if it was that easy we would have a fixed market right now. give me a break, it's so easy. >> i can fix it, though. >> how are you going to fix it? >> fred glick, future head of fannie mae. >> use the people who know what they're doing as opposed to giving somebody a job that they have no idea what they're doing. the short sale and the foreclosures. they just hire people in back rooms and train them for 15 minutes or more to try to analyze these short sales. >> there's a lot of mortgage professionals say we don't have people in the industry is very disingeneral jous d disingenuous. all we needed is leadership and remove the uncertainty. take care of those two things, we'll see things break loose and happen in the free markets. >> gentlemen, always a pleasure

to see you both. >> good to be here. >> thank you. >> see you later. heading toward the close. d dow down ten points. 40 minutes left in the trading day. >> up next, it may be one of america's favorite stocks. should you go gaga for google? the bull, bear debate coming next. then the privacy concerns embroiling google. do they know too much about you? remember "that '70s show"? walmart is betting on that '70s shopper. the retailer doubling down on layaway plans. we're wondering if that's a sign walmart is worried about the crucial holiday shopping season coming up. apple, king of the world of stocks anyway. a sharp rise and may be worried about a fall, coming up. stay with us.

so, what's the problem? these are hot. we're shipping 'em everywhere. but we can't predict our shipping costs. dallas. detroit. different rates. well with us, it's the same flat rate. same flat rate. boston. boise? same flat rate. alabama. alaska? with priority mail flat rate boxes from the postal service. if it fits, it ships anywhere in the country for a low flat rate. dude's good. dude's real good. dudes. priority mail flat rate boxes. starting at just $5.15. only from the postal service.

welcome back. corn prices keep popping, of course, affecting your grocery bill. jackie deang liss is at the nymex. >> corn and soybean prices reaching their highest levels in ten days during this worst drought we've seen, of course, in a half a century. wheat gave up some early gains making a mild pullback, then rebounding with corn and soybeans towards the end of the day. corn prices, though, they've retreated off their record high of 849 set back on august 10th. they're up roughly 55% since june 1st. now, the concern, of course, is definitely for food prices right now as prices of corn and soybean are exceeding those we saw in 2008, of course, when we saw the last big food crisis at

that point. we even saw riots breaking out in some countries because of those prices. a lot of people watching this very, very closely. maria? >> jackie, thank you so much. it is america's favorite stocks day here on cnbc. the closing bell is focusing on google this afternoon. in the next hour we are touching on all the controversy with google's snooping too much into our private lives. right now we just want to know, should you own google stock or just use google for web searches? we begin talking numbers right now on the technical side of things is enis tanner. he's with risk reversal.com on the fundamentals, anthony declemente from barclays. anthony, i'm going to kick this off with you. you have an overweight rating on google shares. why should we be buying in? >> if you think about the most powerful technology in the world right now it's mobile. when you think about mobile and smart phones and the fact that the next billion people to connect themselves with the

internet are most likely to do that using smartphones, you ask yourself who's doing the best job monetizing mobile? from google's search advertising platform we think google is the winner in the space. you look at internet companies that have had tough quarters, tough cup of months. google has weathered the storm because they're serving ads in an accelerated fashion on mobile devices. you're on your mobile device. you're looking for something. you tend to click on a google search result. >> let's look at valuation and how the stock market acts? >> i love google as a company. but this is a terrible place to enter the stock market. this is a five year chart. it actually took a good three years on many different occasions to break the 6.50 dollar level. last week we had a nice break. normally that would be positive news for a technician. in reality it was on very low volume relative to the last five years. even over the course of this year there wasn't a lot of conviction. there wasn't a lot of passion in that breakout. i think it's more likely to be a false breakout. moreover you have the all-time

highs around $750 from november 2007 which could be potential resistance. look at the second chart. you'll see that in google's comparison to the technology companies, you'll see it has actually had a bit of a rough year. qs up 20%. google just now up on the year. showing relative weakness as well. >> do you look at the broader market the way you would look at a chart of kbogoogle? you said the volume is not here. you don't have the parpg. sounds like deja vu for what's happening in the market. >> i'm certainly more cautious -- i think we're within 30 points of a near term market pop. >> near term market tower. i will get back to that. another conversation. anthony, bottom line. can google overtake its all-time high, you think? >> i definitely think it can. i think rick is telling the story of the market. we see that in a lot of internet stocks. fundamentally, look for a fundamental breakout.

that's all about mobile, ad serve, and with google growing its ad delivered to 40-plus percent it's a large cap growth name. there's not a lot of stocks with that kind of market cap and that kind of north of 20% revenue growth. >> all right. we'll be watching this story. gentlemen, thank you very much. appreciate it. we'll see you soon. thanks, guys. as i mentioned, coming up much more on google and conrns about the mpany's privacy issues. has google become big brother? both sides of the debate coming up. as we toward the close we've got about a little over 30 minutes left ithe trading session. the dow down eht points well offhe lows of the day. stocks up 8% sce the beginning of june. but one of our next guests thinks there's even more room to rally. that bullish call is comingp next. plus, paul ryan and privatizing social security. he wrote aut it. now his opponents are harping on it. it was an unpopular idea when president bush 43 tried it. but is it a bad idea anyway? we're going to look at both sides of that. and breaking the glass

ceiling finall she was the first woman ever to serve as a president's national security adviser. no condoleezza rice is breakg ground again. this time at augusta national. it'sot all male anymore. details coming up. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 800-2550 that's what i have when i trade. tdd#: 1-800-342550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550

tdd#: 1-800-345-2550 ...until i choose to focus on something else. tdd#: 1-800-345-2550 trade at schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade tdd#: 1-800-345-2550 up to 6 months commission-free online equity trading tdd#: 1-800-345-2550 with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-800-578-4439 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today. latex beds, and now beds infused with gel? but through all the fads, 6 million people have found their best night's sleep on something else. ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [ male announcer ] so next time you hear that gel is the answer to sleeping hot, know that tempur-pedic beds have been proven in independent tests to sleep cooler than the leading gel beds. just ask me. [ male announcer ] tempur-pedic. the most highly recommended bed in america.

bob pisani has been calling this the most hated stock rally in years. but raymond james jeff sod says the s&p is posed to go on a run to 1500. >> 1500 on the s&p. and, bill, right now we're 1417. bob and jeff join us now along with brian belski and bob pisani. jeff, you see more upside. what drives it? >> i think everybody's profoundly underinvested. i can't find any accounts in europe that are 15% weighted when their bogey is 44%. endowment funds in this country are underweighted in u.s. equity. earnings continue to come in better than most expect. and i just think while we may pause here at the april highs and try and sell back it usually takes two or three times before you get through a previous resistance level. >> isn't there a litany of things you could be putting on the other side of the ledger?

number one, economic issues in the u.s. economic issues in europe. a global slowdown. you have volume that is deadly every day. what do you feel about those things? >> another brick in the wall there. >> joe grando from years gone by wrote a book about profits on on balance volume. on balance volume has been positive. i think if the market's a discounting mechanism, i think it's already discounted everything you're talking about. >> if he's watching, joe granville just dropped his cup of coffee in kansas city. hasn't been quoted in years. brian belski? >> if there's one thing we've learned the last few years it's that things are rarely linear for long. right? we wouldn't be surprised if we see some sort of pullback. we are in 100% agreement with jeffrey. we see this market over longer term heading higher. over the near term we could see a 3% to 5% correction heading into the fall. this is going to be a noisy election season. this market and the economy is all about confidence. if the u.s. looks weak because we're fighting is internally, the market could pull back a

little bit. but this is really the best opportunity to be in equities i've seen in my 23-year career. jeff and i were talking outside. he talks about over the last 42 years in this hated market rally. friends are so predominantly negative towards equities you have to be positive over the fundamental conditions of the u.s. stocks here. >> how do you make money in this market? >> from a sector perspective, maria, we still really like technology and industrial companies. technology has clearly been one of the better performs sectors near term. longer term with all the cash and really with respect to earnings it's about the consistency of earnings. we do think both sectors, by the way, will benefit from a quote, unquote, manufacturing renaissance over the next few years coming back to the u.s. >> bob, you've been very quiet waiting patiently for us to come to you. the volume continues to be very low. >> yeah. >> the volatility you've pointed out ad nauseam. what's going to change the tenor of the market? labor day? >> september we're going to see

the ecb meeting. we're going to see a lot of comments out of spain. we're going to have a spain cabinet meeting in the beginning of september. i think -- i don't tell people how to trade. it is a reasonable bet right now to play volatility. to go long volatility right now. with the record low, you can't do anything about the volume. so forget about that. but you can play volatility through various instruments. we've been talking about the pros and cons of doing that today and being able to do that today. on the earnings front, let me just say, yes, the numbers have come down. the second quarter was a little disappointing. we're still getting, brian, 6% earnings growth this year so far. as far as i can tell, that's near a record. so everybody says everybody hates the stock market. but the earnings are still there right now to support the multiple that we've got. >> which is the point that you made a moment ago. >> exactly. >> but do you worry -- the experts have called for negative showing in the third quarter. a pickup in the fourth quarter. do you worry earnings will eventually get impacted by things like europe, by things like uncertainty in the u.s.? >> i think we're going through the same thing. it's like deja vu all over

again. we had the same thing happen in 2010 and 2011. you had to raise cash in the spring just like you did this year. then people worried about a recession. analysts cut their earnings estimates. the recession didn't show up. economic stats started getting better. earnings estimates went pup p the stock market rose. i think we'll follow that same pattern. >> what could go wrong? >> dysfunctionalty in the u.s. government. they could let us go over the fiscal cliff. >> you're betting against dysfunctionalty in the government? >> i am. >> really. >> i think the surprise is going to be we're going to affect smarter policymakers and get smarter policies and more productivity. >> does that mean you think we're going to see a change in the white house in november. >> i think it's more important if we see a change in the senate. the market does better if there is a republican congress. the presidency doesn't really make that much difference to the market. it's up about 15% if you go back to 1936. >> i think the problem -- i agree there -- is that you've got to believe that the lot of things are going to go right for the market to go appreciably higher. particularly on europe.

yet so far, draghi has been calling it right. i think the question now is whether he's going to be able to get buy in from the electorate in europe. watch the danish elections. other things coming on. dutch elections, excuse me, coming on in september. those are the game that people are playing right now. whether or not there's going to be enough people to support the idea of spending a lot of money on saving europe right now. >> very quickly, brian, we've highlighted how interest rates have gone up in this country. long rates. the fed's focusing like a laser beam. are they taking fed intervention off the table right now do you think? >> we think they are. we've been big opponents to qe-3. we don't think the government -- i don't think the economy needs qe-3. qe-3 and monetary policy do not grow jobs. the economy does. corporate america does. i think that's where we will see job growth going forward. >> having said that, though, the market's expecting an expansion of qe. so if we don't get it, are we going to get a big selloff? >> i don't think a big selloff.

we have now reared a whole generation of investors, maria, that thinks stocks need monetary policy to go up. stocks go up because of fundamentals, not because of monetary policy. that trade will unwind the first part of this new market. 25 minutes before the closing bell. sounds on wall street, fractional moves. dow industrials down about five points. facebook shares popping today. i said it. they're popping. still nearly half off their $38 ipo price, obviously. investors have barely heard a peep out of founder and ceo mark zuckerberg. so we ask the question, is it time for him to step up or step aside? that debate coming up in a moment. after the bell, he's gone from chess champion to champion of democracy in russia. coming up, garry kasparov discusses his recent arrest for supporting free speech in his hometown of russia. back in a moment. first, before we go to break, the dividend. which company stock with earnings out tomorrow is outperforming this year?

dell, intuit, or william williams-sonoma. the dividend pays off after the break. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today

and explore your next investing idea. who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are, or may become pregnant or are breast feeding should not use androgel. serious side effects include worsening of an enlarged prostate,

possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. talk to your doctor today about androgel 1.62% so you can use less gel. log on now to androgeloffer.com and you could pay as little as ten dollars a month for androgel 1.62%. what are you waiting for? this is big news. just before the break as part of the dividend we asked

which company stock with earnings out tomorrow is outperforming this year. dell, intuit or williams-sonoma. intuit. some of groupon's early backers are getting out of the beaten stock today. mary thompson with the story. >> "the wall street journal" carrying a report that a number of the big investors were getting out of the stock. the share down to $4.50 earlier have bounced back a bit. 4.50 right now. standing at $4.69. back to you. let's talk about the mother of all social media stocks that has struggled here in the markets. facebook. company now on sale at nearly half off from when it went public in may. some people are liking these levels. capstone investments upgraded that stock to a buy today on valuation levels. helping the company reverse from its record intraday low that was set earlier this morning at

around $18.75. >> pretty extraordinary, bill. since the first trade day on may 18th, facebook market value has dropped more than $40 billion. that is the largest capitalization decline among any single company worldwide. according to rich peterson at s&p, nathan backrack of the -- is not in the camp. he says if you own it, dump it. zachary carabel couldn't disagree more. nearly a billion people like using facebook. you don't like it even at half the ipo price. >> no. in fact, i think mark zuckerberg could lose another 2.5 or $3 billion before i'm going to get excited about this thing. they've got declining revenue growth. 67% of users are on mobile. unless you got a fat thumb and you want to make for a flash crash, i'm not sure you can really use the app to buy much of anything. they've got only 8% of the click throughs that google gets.

they're selling at 30 times earnings. would you rather have google or apple or would you rather have facebook? put it all together. you can wait. you can get into this thing late zbl er. >> zach, i'm thrilled we finally found a bull on this company, this stock. were you a bull on the ipo or bullish now it's been cut in half. >> i certainly wasn't a bull at the ipo. this will go down as one of the most massively mismanaged ipos literally in history because it completely tarnished what was a viable brand. the fact is not a whole lot of those billion users of facebook said, you know what? i'm going to cancel my facebook account because they messed up their ipo. there might have been a couple. this is still a $40 billion plus market cap company. i don't know what it is today with a 5% rise. 30 times earnings, you don't buy a company like this because you think the valuation lines up with today's earnings, you think it's going to line up with tomorrow's. i know people get worried that sounds awfully like 1999. there are such thing as growth companies creating new markets

and new businesses. that's where you have to have some defwree of faith that if they were able to build a billion users in seven years, that they're going to continue to be able to monetize that in a way that makes this a viable, ongoing enterprise. >> zach, let's face it. this is a story that has changed in the last couple of months. a lot of people now wondering how they're going to monetize advertising on a much smaller screen. your iphone or your mobile device. i mean, that is the story. that's one of the big issues that has hurt this stock and pressured earnings here. >> that's why it was such a terrible ipo price. >> i know. it hasn't changed. do you have any evidence that they have figured this out? that they are actually going to try to move the needle on deriving money from the mobile story? has anything changed or no? >> zach? >> no. i think the fact is they are generating the revenues that even, you know, the guest who disagrees with me would acknowledge. and that that, at 30 times earnings, means they are generating legitimate revenues

based on this business model. this is not like a fly by night operation. >> the revenue is going down. the problem is when your revenue -- when you're a growth story and your revenue is declining and you're not even one year into your growth story, this is not good news for the home team. when you're not making nearly -- you're pushing nearly as much dollars through the door and getting very few clicks, then they say we've got to take about 60 to 90 to 120 days to figure out how to get an app for people's fingers that will work on a mobile device, which is not sneaking up on anybody. it's not like people came around yesterday and said it's a smartphone world. they've got their work cut out for them. >> is there a price, nathan, that you would get into facebook, then? have you targeted a spot you think presents value? >> at 15 bucks, you could persuade me to believe the long story here. but i'm so -- i have so little passion for zuckerberg. i mean, if lloyd blankfein had had a movie done about him, maybe i'd feel the same way about goldman. he didn't.

zuckerberg did. >> where do you get 15? you're still talking about double digit pe. you're still talking about overprice when you look at just sort of the fundamentals. how do you pull out 15 from the air? where did that come from? >> i am pulling it out of the air. >> what's it based on? is it based on anything? >> it's based on the fact that -- it's based on the million people and the fact that at some point they might just figure out what to do with the data. you've got enough people saying, yeah, it's crazy. reminds me of a multilevel marketing scheme where if so and so does so and so and so and so does this, some day it'll work. i'm going to hang around with this version of amway for a while, see what happens. >> where's mark zuckerberg in all of this? are you disappointed we haven't seen him at all trying to defend his company or at least give us some vision of what his strategy is to turn things around? >> no. look, the fact is zuckerberg -- this is probably where at least the social network got something right -- is not the most effective articulator of the company's vision in public.

they're making a strategic decision it's probably correct that if he were the one coming on defending their model, people would get even more negative than the already high level of negative is. sheryl sandburg could probably come on who's much better at articulating the vision of the connective world and the revenue. >> then where is sheryl sandberg? why haven't we heard from her in all this? >> i think right now this was so badly done for several months that i am -- i imagine if i were them i would say, look, this has gotten worse before it's going to get better. we've gained nothing by trying to go into the moth of both investing world and media world that is against us. we should just try to figure out to monetize our user base. >> they decided to become a publicly traded company. that's the baggage that comes with being an -- >> they've done that really badly. >> all right. >> you watch them kill margins as they figure out how to get a mobile app. >> thanks, guys. we'll be watching the story developing. appreciate your time tonight. heading toward the close here. about 15 minutes left in the

trading session. and the markets down eight points on the dow industrial average. on the other side of the coin, apple has been crowned the new all-time market cap king. some say the stock is still cheap even at these levels. stay with us. >> wait till you hear the price target on that one, coming up. -n using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. it's law that just makes sense. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! you won't just find us online,

you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. as much advanced technology as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations. during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection.

well, broader market not doing much. what a day for shares of apple. nearly a year after co-founder steve jobs resigned as ceo due to his illness, apple has become the all-time market cap king. last august apple made headlines topping exxon mobil's $331 billion market value. >> and it took until the end of february for apple to become just the fifth stock ever to cross the $500 billion mark. with today's gain, apple has now overtaken microsoft's record when it peaked at $619 billion back in the bubble of 1999. so apple is now the most valuable company by market capitalization ever. and think about this. just in the year or so that tim cook has run this company, apple is up 76%.

>> wow. >> from those lofty levels. look at this also. this is what has some people salivating. if only apple were in the dow. it's too expensive. it's a price weighted average. too expensive. but it by far has been the best performing stock if you took into account all 30 stocks inside the dow. the best performer has been bank of america. worst performer, hewlett-packard. look at the performance of apple in that time. >> amazing. two thoughts here, bill. on the one hand, i think it is indicative of back to basics. fundamentals. this company makes products that people want. >> exactly. >> they make products that people buy. that is really what has driven this innovation and has driven this popularity of this company. two, in my "usa today" column today i interviewed the co-founder of paypal. he sold that company to ebay. a real technology investor. i asked him about apple. he made an interesting point. the thing about apple, over the next five, seven years they have innovation up the gazoo. >> mini ipad, tv remote.

>> what you really have to worry about is ten years out. apple's founder is genius, steve jobs. what happens with geniuses is they create cults around them. people work for the company because they want to work with that person. they want to work with the genius. at some point, the reason to work and do what you were doing, working long hours 27/7 has gone away with steve jobs leaving. he said the big risk in apple right now is when they start losing their very talented engineers. because the reason they went there is no longer accessible. >> i equate apple with disney. when walt disney passed away in the 1960s you still see a lot of walt disney's fingerprints on things that are done even today. i think the same thing will be the case at apple because of the genius that was steve jobs. big time. >> it really is. how about augusta national? >> what do you think about that? >> finally. finally. i don't think it's a coincidence or anything that they picked a random monday in the summertime

to announce they've finally allowed two women members here. because they were not going to be pressured during the masters and make it look like it was somebody else's idea. this is their idea. and they've allowed secretary of state condoleezza rice and financier darla moore to become members for the first time in their 80-year history, women members. >> to wear the green jacket. the club's new season begins in october. i think it's great. welcome to the 21st century. >> welcome to the 20th century. >> i don't understand why this has been such an incredible debate. i'm glad. it's nice to see. by the way, where does that leave jenny rometti from ibm. >> the ceo of ibm has traditionally been a member at augusta. they are a huge sponsor of the masters tournament every spring. she's the new ce oo. painted them into a corner. >> they said we're not going to be pressured when the story came out. i guarantee within the year she'll be a member. >> eventually. i don't know if it'll be that

quickly. >> why not? why condoleezza rice and darla moore. >> it has to be their idea. they can't look pressured. trust me. >> i'll have more on the augusta decision and what it means for women and girls later on in my observation. >> i think it's terrific. all right. we'll come back with the closing bell for the monday. google watching your every move on the website. the company says it's to create a better online experience. others worry it's about big brother at work. the debate after the bell as google remains one of america's favorite stocks.

it's something you're born with. and inspires the things you choose to do. you do what you do... 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.

on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?

okay. three minutes left in the trading session. quick recap here. the selling pressure that we saw first thing this morning started overseas overnight. if you look at the shanghai market, that's a three-year low now for that chinese market. and in that time, in five years, it's down 54%. that's what you call a bear market. there's no other way you put that there. spain also succumbing to some of the selling we saw in china overnight. so the european markets were -- but they were off their lows of the session when they finally closed out the day. and then it spilled over to our

markets as well. this will be the 15th out of 17 mondays we've been down this summer. that's what you call a trend. here we are down six points off the lows of the session. yields were higher this morning in the treasuries. then they went lower. we were up in this range here about 1.84%. then they started moving lower. we're at 1.81% on the ten year. oil lower today. this contract expires tomorrow. so there may be some selling in that regard because britain orse continued high ner london. corn, wheat, soybeans, all the crops continued higher. no sign of rain in the forecast for a while. that's the december contract. we're looking at the front month. you'd see it was sharply higher today as well for soybeans and for wheat. among the sectors, the s&p sectors today, health care by far the strongest. we didn't have any mention of this deal today with etna buying coventry. the first and largest deal we've seen so far in health care since

the president's health care plan was put into law last year. do you like health care at this point, brian belski? >> i think health care in general, bill, is one of these areas that really has issues with capacity going forward. but also how are these companies going to get paid with the single payer system and double payer system and what's going to happen with the health care bill? that's a real question mark. really if you take a look at health care in general, so much of the sector's controlled by the drugs. drugs look like good dividend plays. but growth, no. >> okay. warren myers, what takes us out of the doldrums in this market? do we just have to wait it out until labor day? >> how about going on vacation and coming back early september? unfortunately it seems that way. there's not much of a drive. we have the flmc meetings tomorrow and wednesday. the announcement comes out. i don't expect to hear anything new there. you've got jackson hole at the end of the month. everyone's going to anticipate hopefully getting a glimmer of hope from bernanke. i don't think you'll get it there. you go into the middle of september and wait till