the stock market continues to rally...but can it keep up the momentum...after a double digit rally this month alone? plus...the hold up on loan modifications... why thousands of struggling homeowners have not seen much relief... despite government rescue plans... and what obama plans to do about it. and...mom-nomics....how the recession is impacting the money at home and what companies are doing to tap into moms purse. off and running book again and ready to go welcome and here we go can be contained to see this rally march higher in has been a significant buying interest at contains to develop if the march to a rally one thing but since the first couple of weeks in july were of better than 10%. and will see if the rally can continue in the week especially bring you get an

important check up on economic growth that is later this week on friday we are going to get an estimate and on second quarter gdp. that is expected to come in and net of 1.5%. considering how much investors have bid up this market there is no room to disappointed with the number. not at all since the second quarter since this march rally some stocks better than doubled banking stocks specifically we have also seen the broader market sprint higher by about 35%. hi on tuesday treasury department officials plan to meet with the nation's banks and lenders to figure out why it's taking so long for them to make any real progress on obama's homeowner rescue plan. since the 75 billion dollar program was unveiled in february the goal was to eventually help up to 9 million homeowners refinance or get a loan modification but the process has been riddled with endless complaints that banks and servicers are continuously losing files, and documents... and not returning

phone calls. some say one reason for the delay - is because banks have decided to focus on refinancing existing loans - and they have not given the same level of attention to loan modifications. more money by refinancing current customers... than doing loan mods. "banks are showing increases in profits due to loan refis and fee income.. they are not taking time to focus on distressed portfolios and what's going on with foreclosures and people at risk to refi those loans." "nearly 80,000 bank of america customers are in the trial modification period or are responding to modification offers" in the past 5 months - bank of america says 80,000 of its customers are in trial modifications or responding to modification offers under obama's plan - it did not say exactly how many of those were actually approved. "in the process of finalizing 52,000 home affordable modifications " and wells fargo says it's in the process of finalizing 52,000 modifications under obama's

plan. "has approved 87,100 trial modifications" jp morgan chase was more straight forward in its wording - saying it did approve about 87,000 trial modifications under obama's plan. and when we talk to housing counselors ... who work first hand with struggling homeowners - they report only marginally better numbers: back in early june the neighborhood housing services of chicago submitted 500 modification applications - all were pre-screened and met the qualifications - so far only 31 have been approved. i would call that process pathetic in an industry that's known about the crisis for 3 years.. to be caught off guard by a flood of requests is inexcusable all 3 major banks say they are also doing modifications under their own programs... and if you add those numbers to the obama trial modifications... jp morgan reports a total of

138,000 trial mods in the last 3 months wells fargo says it provided more than 200,000 trial mods and bank of america says it modified 230,000 mortgages since 2008 even so critics say it seems banks would rather foreclose on the homes than modify loans... which have a high probability of going into default again. "i think a lot of banks are saying in today's market, they would rather have properties back and to force foreclosures.. and sell properties now before prices continue to fall further - i think there's an effort among banks to speed up the foreclosure process." this week, even as the obama administration prepares to iron out the problems in the modification process - some are still skeptical about its willingness to get tough on banks. "i'm a little pessimistic that anyone is willing to force loan

servicers hands" what they're going to do is be nice.. and polite, and ask nicely and 6 months later when nothing has changed, then someone will be very upset and write a sternly worded memo at that point. and starting on august 4th, the government will begin issuing reports every month detailing how many modifications and refinancings each lender and servicer is doing. for the first time since the height of the financial implosion last year, two of the world's biggest economies will talk trade and encouraging economic growth. the talks between the u-s and china will be the first for president obama. both the u-s and chinese governments have launched big spending plans, hoping to stimulate demand but the u-s is expected to tell china that it cannot rely on return of the u-s consumer's appetite for chinese-made goods. instead, washington will push china to put in place policies that encourage chinese consumers to spend. china experienced its own housing bubble, with residential home prices down 3o

to 40 percent from the peak but in coastal urban areas, china real estate is going for about 10-thousand renminbi per square meter...or about $135 dollars per square foot. there is huge demand for residential property in china and i believe they're running about 7 million units shortage at the present time. the majority of the people got rich in the last few years and they will, in particular chinese people love to buy homes, they will buy homes for themselves. the focus of china's $586 billion stimulus has been building projects like roads, highways and airports, hoping better transportation within the country will help its internal economic growth. critics say china isn't doing enough to counteract rising unemployment due to lower trade with america and europe. the third biggest bank in the u- s will have the u-s as one of its biggest owners. uncle sam takes a 34 percent ownership stake in

citigroup in the new week. citi has been swapping billions of dollars in preferred stock and debt to common stock as a way to shore up its balance sheet. the government gave citigroup $45 billion in bailout money in exchange for preferred stock. now it is converting just over half that to common stock...and in turn, owning 34 percent of citi. that common stock of citi remains well below $5 a share. still to come the economics of home...one mom- in-chief's view on the recession and how she's handling it. plus, does the recent market rally have legs...we catch up with two market pros for insight and what they're expecting in the week ahead.

(joey) joey and i'm from texas.

i went on a really big cruise and i saw a rock climbing wall so i said, "why not"? it's scary, but once you get to the top, its like, your excited and then you get to ring the bell. why not?

but you thought the rally since march was impressive enough how about the rally since july 10th and double digit rally in the big stock market in fact technology stocks continued to outstrip the s&p 500 and dow jones industrial average proles fortress atop the talk about this relentless march high big rally here been a spell in equities and steve but think or swim we start with you at the

cme would be made of this rally just in the month of july? since july 8th i think as you pointed out since july 8th nasdaq is up over 13 percent. if they can shrug off the microsoft earnings today dobie 13 days in a row i would say is pretty impressive in lieu of the rally we've seen since early march. i think there is some short covering going going to be honest. the last time we turned around and headed down leg the nasdaq it's what to us they're so if that's going to happen i would anticipate the nasdaq will be what leads us down. how about the nasdaq 10 rocket technology stocks leading the we'll put a crack first? they are overcooked they have a great run when on the social work will have to see i think the theme this week is that the earnings in underlying theme and we've had big companies report i think people are going to focus on this week are the bond auction 235 billion

and bonds refunding also sold the ratios of one set the tone this week but as far as the market is concerned couple weeks ago the market breaking those technicals on the downside and everybody guess so bearish coming into the earlier earnings season we saw a slingshot on the downside here we saw this coming dramatically as the victim comes down the markets this certainly gonna have a demand for stocks right now. used used to train one up for a long time you know each other for a while compare this market to some of those historic markers that you have traded. is this comparable? in some respects it is and i'm sure dennis potter reiterate at this point been just touched did you get these conditions where is completely oversold and completely over baht to 04 kelly now it happens very quickly it used to happen once or twice every three years now

happens once or twice a month. i think the kids a lot of people in a position which they don't wanna be in an is exaggerated moves. absolutely i agree 100 percent because look at the vicks just a hopeless and the vexed up to the mid '30's and as soon as it the clear sign cones and dramatically price now why did another thing who that's interesting is that last friday warren buffett came out in the morning and put out a bullish call in the market at 9000 he still thinks it can outperform fixed-income and that's another thing but underneath the market this week. next week starting the week on monday we have new home sales and we're seen a little bit of activity in x h b which is the e t f the home builders she tearful kind of activity i'm not sure if it's called blind or not but they're call 60,000 calls that are traded in december and another 20,000 once bright just above the money. i think is

interesting is just something worth watching. with the number coming one day. i think the other thing it steve also in the bit to racine heavy straddle selling and basically mean that they're selling volatility in the victim racine get out of to oct. nov. a racine get somewhere centralized around a 22227 strike on both sides i think basically racine the expectation is that the vicks and the volatility index will stay somewhere in the low 20 the what the summer so that would indicate that there is pretty good feeling that the market is trying to go sideways and even if we back off two weeks ago there was a major hurdle it really was since the march lows that's the first real test the market has had and it was signaled to we're lot of volatility and is all clear. we passed that test with flying

colors but they're all work options exchange think or swim at the cme. thank you. online items is the summer blockbuster season over?...on our website...why *now is the time for smaller movies to shine. plus, why confidence seems to be returning to wall street much faster than on main street...find out why... it's all on our website at firstbusinessx.com. and straight ahead on the show... how moms are dealing with the recession...and the impact it's having on household budgets...that's next...after this in-the-know message.

odds are you may be having a lot more talk around the house about money. earning it, spending it, trying to save more of it. it's no secret that most household money decisions are spearheaded by women, so with the consumer in retreat, how are moms dealing with money. stacy debroff is the ceo of momcentral.com. welcome back. thank you so much for having me how about the mom economy what shape is it in? is definitely an extremely cautionary and where rican state based on the economic recession. was interesting is that the feeling about winning his really hit not just the lower income families is all the way up uc it into higher income for families people are trying to really think about volume and the recessionary budget people are thinking about the food category how the body but keep nutrition. across-the-board moms are thinking about how they're

spending their cutting back on categories like big family trips. you see it held their increasing meals cut at home their strategic about purchases they make. talk about the business response to that because this is still a come sooner of the economy the moment this case in retreat how are those companies going after the mom dollar and mom decisionmaker tried to attack i think the companies realize that's what's most powerful is it getting them to understand more about the brand more about the company to feel connected to the company if you feel passionate about electrolux appliances were frigidaire east build better making the purchase decision still an emotional plea even with ball in play a larger role in actually writing the check or handing over the project called card. that is emotional i think it's a connectivity of what is it that we can offer you. how t d nutritious snacks on the gulf rickets. if we know that you're

cooking more because you're not going out to dinner how can we make those dinners easier but also for may at home. what are some of the company's the uc the scene to be heeding the bulls eye when it comes to those messages? i think you see a lot of companies that are reaching out and social media. one of the company's working with nationally is filled entertainment that's disney on ice and wrinkly and they're really getting the info source in all cities we've been working with them to bring them into experiment if there's any more discretionary spend it has to be watching and i show for three hours. because this case vacation if you can get all for four tickets for $44 it becomes a family adventure you may not be able to go for that long weekend to the beach but you can go see the ice show will cost the town would be really did is say how can we get people enthusiastic how can we the people applaud the leaders of that community groups who are reaching into their e- mail's were websites powerful groups in offline and all of a sudden and that particular campaign what happened is we are

only six months into it but we sold over half a million dollar tickets and 70% to people what never been to the show before. in comparatively him cheap marketing by for those companies involved. it was happening in this economy because social media offers a huge week for lower cost budget traditionally these companies even small companies will turn to at while we all know is that ads for mom's perspective feel incredibly interested we want to skip over them resent them if they're watching a tv show if we're steve poling our shows a we'll have to see them what happens is that you can take to especially with ad budgets if you wanted $50,000 that you might get a small retail advertising in tv and put into a bar market you have a national mobile campaign. go beyond those consumer goods companies the traditional marketers that are trying to gather the attention of moms and women are there untraditional companies that are beginning to

tap into the economy? disagree point because what we see is across-the-board you'll see car companies technology companies plan screen tv sets for all the computers but i pause to our phones to at&t the cellular companies companies that traditionally would be unsafety software on the computer they're reaching in and also a lot of moms have become their income had become entrepreneurs sleazy the tax services reaching into them so it can do their small business taxes the whole landscape has changed. staci along with us she heads up mom central.com. coming up in chart talk we have big housing data out and in the week so will it take a closer look at the home builder e t f that's in chart talk next.

this week we do get some big news on the house drawer with us in the case till earth home price index which is a bit of or housing as well as new home self-addressed, talk about the home builder atf x h p if he think the possibility-and corporate profits certainly surprise a lot of folks by not been as bad as they could have been the other two have yet to really come along for the wright employee is still deteriorating in home prices still continuing to deteriorate but we are going to see the beginning of some new real activity us to look at the home builder atf and figure out what is telling us. yet today's

engineering is up 13% so well outperforming the s&p 5 km van looks like it was a pretty strong bottom back in march when guess the whole world was seemingly falling apart us when armageddon was being pressed into the market. since then we had a big rally for x h p of force really it has not been able to get above those made highs. the significant what the market has been able to break out of home builders have not been able to break out to that high as $14 a share which is where the market to rally ran out of gas and here we are again just in advance to some big earnings numbers to the trip and repairs in x h b as well as the new home sales i want to run down some numbers median sales price for new homes 221,600 so keep that mine hopefully those prices will stabilize. in 10 months worth of supplies last month as well we want to hear from you comments at first business x. c o m thanks for watching will see you next time.