millions of consumers get a break at the cash register this month thanks to sales tax holidays...but is it enough to help boost lagging sales? plus, a 50 percent jump in stock prices since the spring as the rally extends into its sixth month. how long could it last? and...ford sees a small jump in auto sales after nearly 2 years of declines...how uncle sam is helping auto sales, but can it last? first time in nine months a four digit number of reits to s&p's have 500 the broadest measure of big u.s. stocks or a thousand for the first time since late last year when the market rally began to fall off a cliff oh lot of damage has been repaired in a very short period of time. the nasdaq composite holding above the 2000 market for the first time since october this week we have big news on

the job market not only the private aid the employment number in the government figures are reported on friday. despite the market's rally if it is significant since march report to show the numbers later in the program and lot of skepticism be invoiced for the professional community about the likelihood of this rally continuing through the six month in august. millions of consumers in several states will get an extra break in august thanks to sales tax holidays... and it can add up to lots of savings.. especially on top of sales that are already going on at stores. the sales tax breaks vary from state to state but they generally cover clothing, footwear and accessories less than 100 dollars.. plus computers and school supplies. 8 states hold their sales tax holidays this coming weekend.... which means consumers will not have to pay for sales tax on certain purchases... saving anywhere from 4 to 10% several other states are holding their sales tax holidays on other days in august.

kiplinger's personal finance magazine has a more detailed breakdown of what's covered. retail experts say the tax break should provide a much needed boost to stores. if a retailer ran an ad.. 5% off everything..noone would come.. but when gov't says you don't have to pay tax.. everyone buys.. it's wonderful for retailer.. gov't foregoes some revenue but it does spur economic activity and coming up on thursday, we get another check on how retailers did last month with same store sales figures due out... experts say these days stores are not discounting as much as they did 6 months ago... and prices are expected to inch back up in the coming months. for the first time in a long time for this is the s&p 500 over the thousand north

american stunt traders audio back home at the cme group. the singing and to this rally for the one day in august to zone the levels which year? again as you mentioned we did see these new levels and s&p's how there were those that we haven't seen since november. his 2008 and of little bit of a concern as far as i feel the volume is light at these levels as has been for the most part on the way up. in the s and p four and to about 975 yesterday's activity just lacking enthusiasm as lou will like to see when we reach levels like this. we said this many times this route will original lease park in march due to the all look in the financial sector weakened team to see buying interest really developed in july as we are in second quarter earnings was in x catalyst on the by site on the sell side? i'd have a look for some jobs coming later on that can definitely do with one way or

the other i'm keeping an eye on gold as we are as it intends is we'll another test of $1,000 we are also watching the bonds as they came off a bit in the bond prices and interest rates high year that could be in as well there's a few good refractors to we're keeping an eye on. again it's a lot of texture and nasdaq driven unfortunately like body and could be some activity could be that does enthusiasm. market drifting higher for the sixth month in a row. the liechtenstein with the set the cme. both houses of congress will be on august break starting next week and lawmakers will be spending much of their time on health care reform.. and taking their message to the people with democrats pushing for more support from their constituents by holding town hall meetings and rallies while republicans continue to voice their opposition... calling it an expensive government takeover.

president obama's plan calls for a government run insurance plan to compete against private insurance companies. the congressional budget office - says it would cost 1 trillion over the next 10 years. and now - the president's closest advisors are *not ruling out higher taxes on the middle class to pay for health care.... initially, the debate focused on taxing wealthy individuals to pay for the plan. we talked to taxpayers - and found many who are against raising taxes on any income group. after i retired my ins. 800 / month.. i am paying fair share - don't support that me: what if it meant lowering your bill.. it' wouldn't i'm no convinced it will lower anythin analysts say we could see higher taxes as early as 2011 to support health care reforms.,... and we did find just as many people who say they are willing to pay higher taxes

for better health care. how much are you willing to pay for that... i don't have dollar figure.. but i'm willing to pay higher taxes. 2/3% wouldn't be a problem... of your whole salary yes if it means people are healthy yes i would because i worked in health care for 38 years .. seen people don't have ins. sad.. they need it - talked with people in canada they love their health care. president obama has said he wants the plan to offer health coverage to 50 million americans who don't have insurance today.

still to come for the first time in nearly 2 years, ford finally sees a sales increase.... a look at how much it may be do cash for clunkers. but first, the stock market rally looks to stretch into its sixth month. what may be in store for the bulls...and bears.

but the dow jones industrial average entering the month of august after the best monthly rise since the summer of 1997 and july the dow was up better than 7% 6 number and the market rallied to a tally of 40% higher for the dow jones industrial average in this actually the lagger if the stock about this but this rally can could see we have skied of lincoln ellis from the lynn group everybody getting the blue short memo with the rally not bring our rebuttal scott would you you were here of month or so ago questioning the rally arrear now that pete s and p 500. this was a bet question of the rally. i suppose so. we are watching a

perfect example of we don't fight the tape is a move spectrum by momentum. a thousand on as a piece like it just had to be touched when we get close enough but i'm still holding to my belief that this is going to come crashing down sooner rather than later. before the end of the year maybe? if this hands on to the end of the year will be a 2000 with s and p's and i don't think that squad happened. what about to you've been on this not same site still bearish? he i'm still bearish i think the fundamental basis of this rally continues to be very weak. volume numbers have been anemic block the summer in the continue to be a couple of things indicate to me that some of the tension that may be building as coralline up to the downside volatility has been coming in narrowing these people come into the day's chores and trying to get squeezed out of the end of the day at the variation they're starting to come in and i just see any fundamental really driving this thing anywhere

north of 1000 in any significant fashion. with that in mind the think the market should settle? it's interesting also been a number of some of the big bank predictions and a lot of the big bank perdition's have the s and p targets at 8000 for year end. we seem to be a bit early hitting that tape. there are pretty significant headwinds with this equimark it i'm not cleared that we will in the year at 1000. let alone and 950. or anywhere near thing. if we take a look these mortals edmonton the dow was a lagger in nearly 4% s&p is up by 47 and the nasdaq has added half again as much as it was an march led by the technology companies. what do you say to those who look at this market and say if not now then when? i have to buy. this attitude is he in trouble because you have to have

a reason other than just saying what the prices higher so i forgot to get in because i do have to miss it. it's the same people that i find in half to get in right now are the same people who were selling one will on the lows at 666 and s and p fit. the economic news is not getting any worse the bad news is stop getting bad. the fundamental earnings numbers have improved partly because the cost because the comparisons are getting easier. there's no question. things are not as dire as it works. we were in it. there were we were almost at a level where panicked again we could have blown it. not that some people didn't think we did with the it was bad we work but that we saw a lot of problems. when guys are coming back just after labor day are we talking about new highs for the market? perhaps coming off the highs? you could be the interesting thing about the last few weeks is that you have had some rotation across banking to some

of the transports to monday you had this commodity base sector rally of the dollar weakness so you see the rotation at the speed the sky has alluded to if we get around warn you can be done with them by the end of the week thing you could be right back down through that thousand level. i think september is going to be challenging for the stock market and has been over the last 10 years in particular very challenging and i think he could see a lot of selling in the month of september. finally even the market for a unique perspective perspective with electronic where is the money coming from? i don't think it's a different among is coming from this there is no sellers. so you have natural buyers right now and you have people wanting to jump and when no natural sellers because natural sellers are cleared out on the downside. if and when we turn around and start heading back down guess what. if and when i thought the question was it when for you? i

will say when an awful my cars but i'm gonna say if and when the times, there will be a natural buyers for your honesty the strain beckons to the downside because you have natural sellers nearby is gonna put their hand up and go not me. next time someone cannot wear a blue shirt. it will meet the promise we have scott sheridan and lincoln ellis. online items after the show head to our website to see how the recession is impacting the pawn industry...plus a look at some of the unique items people are selling these days...just search the word pawn shop on our website. plus, a new study examines minorities' attitudes toward the recession...why you may be surprised by the results. and....can airlines weather the boom and bust business cycle ....you can find these stories and more exclusive video at firstbusinessx.com. and straight ahead on the show.... how the government's cash for clunkers program helped stop the bleeding in the us auto industry but is it enough to

spark a turnaround in sales?... that story is coming up after this in-the-know message.

we now know what a billion dollars will get the u-s economy. it will get more people buying new cars. while not exactly a turnaround, one week of the cash for clunkers program helped stop the freefall of auto sales. ford sales in july were up by two percent. g-m sales fell by almost a fifth. chrysler sales were down by 9 percent all compared to a year ago. but for the auto industry it adds up to the lowest year over year drop in

sales in nine months. dave thomas is with cars.com. over at the cme chicago board of trade i suppose to some degree it's been a perspective because of sales overall still dropping by a double-digit pace from a year ago but of these in the summertime racine an uptick in interest. that's right people were and think about buying a car this summer or this year will run until the car died are now buying cars with disincentives. would be think certainly some of these car companies have matured it is an increase in july but its fate is uncertain for august isn't it? but the senate is supposedly going to discuss just this week is not on their schedule yet so if nothing is done this weekend expire at the end of the week the only firm date i've heard to be confirmed is that if you buy a new car bomb through tomorrow been tuesday you'll still be good and you'll still get about her and

other days like friday and haven't seen confirmed and will be the next day. a lot riding on the line simply saw in port number for the first uptick in in the long time here are we talking about more jobs in the auto industry that could be? the ball off that loan terms things like jobs as part the sector meaning putting plans back together and gting people back on the line pull what it is doing is putting advertising money back into the flow of ings locally with dealers advertising more than they would have otherwise. and the sales overall the local level and the tax revenue at the local and state level is huge in this program. those lot of things to think about. take a look at the share of the u.s. auto market ford was able to use the cash or flaunt program to pop skip and jump over palila to become the second biggest cheer of u.s. auto is that the one for most games? ford says the bankruptcy talk among some

months ago by then staying out of the discussion may have helped the market share because in the eyes of the consumer they are the best save domestic a bit. that's what the consumers think and have a new product in new for diffusion is a good car when you see those numbers come and have the problem behind it to. speaking of which i wonder how many new car buyers are looking for cash for court or qualifying but still putting money on the line in picking up new automobile? that's a big part of it i person at the little stuff people tell me that people an unqualified to judge by a car also prized 01 bill in particular said and that is served by used cars had a record months of these people are coming in and the dollar didn't work out cash for clunkers didn't work out anyone is something and get a deal of the used car lot. we'll leave it there dave thomas is the senior editor.

coming in chart talk august is a big month for retailers not only the day have earnings coming down for the second quarter but back-to-school season kicking also will take a look at the retail sector coming in chart talk. next.

but as we said earlier all this is a big month for the nation's retailers later this month we get earnings from companies like j.c. penney seeress target wal-mart and taking a look at the x r t that's one of the retail 80 else and you can see

it continues to outpace the market by a significant amount if up 53 percent said jerry. certainly with the special retell a tariff as i keep telling us that there make money in this a requirement if it is priced at the we've seen some of poles still discounting some of these stores franking their footprints in the back-to-school season second only to the holiday season in terms of volume and profit for the stocks you're right we have earnings coming later on and on behalf same-store sales coming later this week. peggy let's get x r t you can see is actually inching up to the 52 week high which is you can say that about a lot of stocks here so you have the 52 week high back in september of last year at around $34 a share in x r t as a 31 so $3 shy of that. and another 10% rally in this market you may see that overnight to some degree we should plan now we talk only telling you always think about the ball park is now really

what this exchange traded fund is all about this chico's this jamboree is the gap is j. crew and selectively of both $30 a share which has been some that will resistance is been able to break out over the level with this rally and late july. going to wal-mart take a look at this chart e carroll lee explained is lagging and languishing close to the yearly lows under $50 a share wal-mart shares are down 11% on the year you compare that to sears holding which is up 75% since a rate. complete night and day difference between wal-mart and other retail stocks. what harsher so this will tell you there have a lot less volatility compared to some of these other retailers because it is a lot to move the market what are we got to hear what movies you, first business x scott, 51 linebacker next month and watching.