reserve chairman ben bernanke was anything but jolly when he testified before congress, offering a down beat view of the economy. he says it was time for congress to enact fiscal policy. he didn't rule out anymore moves by the fed, but didn't promise any either. the fed's earnings in general, better thanexpected. by thursday, stocks had a three-day winning streak, but then fell by friday. and ge, the world's largest company, beating expectations by some 3.1 million in the quarter. it passed analyst's predictions as bank of america and morgan stanley fell short. and raising expectations, ebay, google, microsoft beat expectations, although microsoft did post its first ever loss. revenue a bit light as well. and mixed housing results, driven by a jump in single

family homes, rising by nearly 7%, existing homes falling more than 5%, although prices were higher. analysts say that prices rose because there were fewer disstressed sales. and looking past europe and the fiscal cliff to earning season, in full gear right now. which is more important? and how do you invest in this environment? joining me now with answers, tom lee, j.p. morgan's strategist, thank you for joining us. thank you. >> what is your take on the earning season so far? tell me how your clients are viewing it and what people are doing with their money these days. >> okay, well, clients are nervous about money these days, they're hearing europe slowing, china, big announcements. it turned out to be a lot better than expected. if you look at sort of bottom line numbers, about 60% are beating on earnings. that is a really good statistic, but only from the% are beat -- 40% are beating on revenue and

margins. >> why is it? >> slowing. >> do you still see a risk of partners, adversity, what are they doing? >> actually, i was just in boston this week, they are very, very cautious, they look at europe. they don't think things have improved. the fiscal cliff is a big discussion now. d china, they're frustrated because the stock market has continued to really push towards new highs. >> interesting, even though the backrop is what -- somewhat weak, the market is -- >> i think something that is a good leading into care, the last 20 years, always called the direction right, high yield, high spreads. in other words, what the bond markets are doing. they are acting really well, starting to rally in june and july, these are corporate bonds. >> so everybody is looking for yield. i guess that is why corporate bonds are doing well and

dividend payers are doing well? >> yes, exactly, the markets are doing for proxys for bond, the best group, the energy sector. >> energy has been doing well, even though oil is off of its highs? >> that is right, oil has really seen a big fall since the start of the year, one reason that energy was the worst performing group, year to date. but we have had a bounce in oil, maybe the market is seeing the growth in the second half. but if you look at energy stocks in the last ten years, they're about ten% cheap versus oil, i think they got too cheap. >> interesting, so where are the weak spots in terms of earnings right now? i know china is slowing, you're traveling a lot, europe is a mess. how do you want to be exposed in this mess? >> it is probably fair to say u.s. is doing better than expected in these earnings, u.s. financials are doing well.

but europe companies and china companies are having big problems. so i really say focus on companies that sell to the u.s. >> do you think at some point we switch back to worrying about the fiscal realities we face in this country? and there will be a resolution of any kind before the elections? or are we waiting until after the election to deal with the fiscal cliff, to deal with the issues? >> it is an enormous frustration, because we know they hear everybody. but the way washington works is they probably won't do anything until after the election. so they are struggling, maybe everybody is over-emphasizing the risk of the election -- it only expires if you let it happen, do nothing the entire 2013 fiscal year, which i think is a very low probability. >> yes, but what about ben bernanke, the chairman of the federal reserve testifying before congress this week, offering a downview of the economy again. the sentiment has weakened, we

could see things worsen, but no real significant action that they promised. although, do you think we'll see qe 3 or some type of stimulus from the fed? >> the call is for a 50% chance in september. so in other words, the august meeting unlikely. september, maybe, the fed does have to surprise us, so giving us too much inside the thought process, doesn't help. >> so what about the market rallying? >> unfortunately, there is a knee jerk reaction, the market tends to do a risk reaction, when they see qe, i think we have to -- >> we are seeing a bit 6 a pick-up housing, is that fair to say? >> yes, it is very visible. >> very visible, in fact, we finally have it bottoms, what are the implay indications, what does it tell us? >> well, it is something we all have to under estimate. we all have to remember housing touches everybody. we all own a home, it is the

most labor intensive activity in the company. so 250 homes creates a million jobs. and already, in q 2 houses account for one third of gdp growth, less than 1% of the economy. like a little ant lifting a human, carrying 3 times its weight now. >> so what do you want to do in the face of investments, the standpoint -- >> i want to guess what the market is doing right now. the market is believing the rally can't last, most people think the market is going to hit new lows. they're buying defensive stocks. i think buying cycle cal, with u.s. exposure, and financials as well, because of the housing. >> because of the valuations. >> they're trading so low and they are the most lever to u.s. housing. >> but what about the fact they're also exposed to sort of headline risk. anything coming out of europe impacts the banks, anything coming out of the j.p. morgan trading loss impacts the whole

sector. >> it is a really big problem. because as you know the headlines are not pretty. the one that you could probably make is most investors probably discounted. you know, nobody wants to touch a bank right now because of exactly what you said. and everybody knows the lengths to europe, you have to think it is not priced in those stocks. >> all right, thank you for joining us, tom lee, from j.p. morgan. up next, yahoo!'s big search is over. the company naming a new ceo. what it could mean to the glass ceiling and women in the work place, and why it is a story of great expectations in more ways than one. and later on the "the wall street journal report" i'm coming to you from the middle of central park. we'll tell you abo a billion dollar impact on the park and the local economy. dee ♪ t where the dream begins ♪ ♪ i want to grow ♪ i want to try canost toucthe sk [ malennouncer ] even the planet has an olympic dream. dow is proud to support that dream canost toucthe sk

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welcome back, yahoo! has completed a search of its own, naming their fifth ceo in the last year. the company hopes this one will stick. she is 37-year-old google

executive, marissa mayer, who will join the ranks of women running companies in the united states. what impact will it have on the work place? good to have you on the program ladies, thank you for joining us. kara, how big of a deal is this? 37-year-old woman being named the ceo of a major company. we'll get to the fact she is pregnant, which is a major deal. >> it is very important, there are very few women running companies, as ceo, meg whitman of hp is one, and cheryl sandberg, ceo of facebook. but there are very few women at the top of the power. >> it is very interesting, why did they go for marissa mayer? >> well, she is a star, very well-known, has a lot of articles out there, got herself known publicly. so i think yahoo! was going for

a very splashy choice and somebody very confident to do the job. >> yes, and marissa mayer is pregnant, as are you. and congratulations. the board said her pregnancy was not a big issue. i love that, is this a sign of changing times? >> i love that, it is an incredible sign of times. and the fact they worked it out is a very public statement about a very private matter. >> i was just talking to carol during the commercial break here. and i guess, you could have said okay, i understand if yahoo! is saying well, she is pregnant. now is not the right time. we don't really want to put a woman in charge knowing she will be out for six months. but it was not an issue, they said. >> absolutely, she worked it out. saying i will work a couple of weeks and work it out. very private decisions she worked out with her family and the board. and it is amazing how many people commented on her pregnancy, will it interfere

with yahoo!'s running? and boy, she should really take pregnancy leave, she is an amazing woman with unusual circumstances and made it work for her family and board. and i don't see why it is -- >> yeah, everybody has their own opinion. it is a great thing, i agree with you. kara, you mentioned other ceos, you have ibm, and meg whitman, what about that, is the world of technology slightly better than the rest of corporate america, in terms of being iverse? i can't think of four women in another sector, can you? >> there are a lot of consumer products companies. but no, it is still not good. years ago, there was a piece called men and women of facebook, which was before cheryl got there. other companies have very few women on the board. it is a very -- they still need to do a lot better in terms of bringing to the top leadership

positions. there are a lot of women just below. >> and the other issue, gayle, some people say it is a sacrifice. but it is also a choice, women choose to do different things, have lots of balls in the air. >> and i think there is also the question of who is funding companies, we'll talk about how there are not enough women on the vc side. so you don't see a lot of companies growing at the level that you do necessarily with men in companies. and i think women are choosing to do a lot of different things. but as carol would say there are a lot of different women below the sweep. having marissa shows that there are more in the pipeline and more ready to go, and it is actually more possible. >> and they're making their own schedules. cheryl sandberg, ceo of facebook, leaves at 5:30, gets me to her family. >> well, not every day. >> most nights, we agree on that. so do you think this starts the debate over the work life balance for women?

>> gosh, i mean, i think that she is just trying to do her own thing and make circumstances work for her. but there is no question that so many people are looking for solutions and answers that any time a first -- anything, right, a first pregnant ceo, and this type of a high profile industry comes up, people will be watching and judging. which i think is a shame, because you know, she is trying to do something troerd and make it work for her own family. and beyond that, i don't think she is trying to make any type of public policy statement. >> right, i agree with you, everybody wants to judge something, what does marissa mayer have to do to turn around facebook? they have had five ceos in the last year, i mean come on, do they need a marketing ceo -- >> she does have a husband who can take care of the baby, too, fyi. very nice guy. it is a very difficult job. and one of the problems is that

they're sort of painting her as a super woman. steve jobs, character type. coming in and running a company. he was a unique person, founder of the company. very different situation. this is a company in great distress with a lot of problems. and you know, internet companies, the young kill their old. and sometimes they just die like a myspace, and sometimes, can she create a country that has not been innovative for years, and struggling. >> it is interesting that you bring up founders, with a different approach. it is different, than somebody who is a hired hand. >> she is getting a lot of money, by the way. and it is not a question of confidence. this person really does have what it takes. she has got the smarts, the drive, she is certainly aggressive. the question is how good can she be to revive this thing? how good can she do?

especially with the competition from google, amazon, and apple. >> yes, it is all about the innovative, thank you so much, kara, gayle, good to see you. and we'll see you soon. and by the way, cnbc who produces the program and yahoo! who produces the show, has a short editorial comment. and coming up, to manhattan island, what america's city parks mean to the local economy to your town. as we take a break we'll look at how the stock market impacted your week. back in a moment . [ male announcer ] it would be easy for u.s. olympian meb keflezighi

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ends july 31st. welcome back, the rectangular swath in the country in green, is an oasis, central park was the first public land park in the united states. and today it brings a big bite to the apple. >> people are really starting to understand the importance of parks on the economy. and centra great example of that. wi we have the world's greatest va everything that is the best in new york city, and i think in the world is right around central park. >> and you're measuring it at a billion dollar impact? >> easy billion dollar impact. >> how do you get to a billion dollars? >> we are looking at take a ten

around central park it is a 17 billion lift to the real estate because the park is here. >> okay, because you have real estate taxes, the idea that is people. >> 47 million people visit central every year, there is no place like that anywhere? the world. >> close to 40 million annually from events, concessions and nearly 4,000 jobs, generated by the 848 acres that serve as new york's front yard. central park, also grossed 700 million in municipal tax revenue, a value close to the total annual cost of the park's system. you have been here 27 years, take us back 30 years us how things changed here. >> when i went to school in 1980, we came here to see how to do an exercise. it was filled with garbage, we came up to this beautiful castle that was completely closed and covered with graffiti. >> so in the '70s and '80s,

people may not have wanted to come in the actually didn't, th it safe to go in. >> the park has invested millions, nearly 500 million raised from private sources. the central park conservancy is c parks.how does it >> the city mainta and restore the park for the city ow york. but what is interesting in our model, we actually have to raise the vast majority of the money. 85% of our 42 million budget really comes from people who live around the park. it is really people who support the park, the corporations and foundations. the city only gives about 15% of the annual budgets. >> a makes money for its home town was just part of the effect hoped for by the park's first commissioner in 1870. >> well, when he created the

park he really wanted it to be created for the workers of new york city. the people who couldn't get away. they wanted them to have mountains in new york city. so when you go up in the north paths, you would have no idea you're in new york city. >> wow, these steps are so tight. this is so beautiful, amazing. >> this is one of new york city's great views that not many people get to take advantage of. and i'm shocked that they don't get to take advantage of belvedere castle, that is beautiful in italian. everything you see in central park is completely manmade. every tree had to be brought in. all the soil was brought in. the only thing they brought in, the ships, everything was built around that. >> so what is the most expensive part of the of the park? what would people are surprised at?

the end of the day we don't own anything, our greatest asset is the people in the park. we have over 35 statues, all of the statues and the 23,000 trees. people come in the park just to see the bridges and arches. this is really a neat restoration of the park. >> what causes headachers going? it is going from 12 million investors 35 years ago to 40 million. in some ways we created a monster, but it is a good monster. >> my thanks to doug blonsky, we'll look at america's top chef, the recipe for success, and spelling a whole lot of green.

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for more on our show and our guest, check out the website, wsjr.cnbc. and i hope you follow me on google. and now the stories coming up in the week ahead, that may impact your money. second quarter earnings reports coming out from mcdonald's boeing, chevron, exxon mobile and merc k.and on friday, the first reading of second quarter gross domestic product. gdp brought us the measure of the health of the economy, also. the 2012 olympics well kick off

in london. and finally, he had a soccer injury, but gordon ramsey took top spot, an empire that includes restaurants around the world, tv shows, cookbooks, he passed rachael ray at 25 million, and paula dean at 17 million. a real taste of wealth and profits. that will do it for me. thank you to my [ male announcer ] it would be easy for u.s. olympian meb keflezighi

to deposit checks at the nearest citibank branch. ♪ like this one. ♪ or this one. ♪ or, maybe this one. ♪ but when it's this easy to use citibank mobile check deposit at home...why would he? ♪ woooo! [ male announcer ] citibank mobile check deposit. easier banking. every step of the way.

[captioning made possible by warner bros. domestic television distribution] >> this weekend on "extra." "modern family" madman for julia dreyfuss. i'm on the closed set getting mel's first and only interview with charlie sheen and sophia verer -- sofia vergara. >> at the grove,