>> intel, hewlett-packard proves that they have fully made the transition and hewlett-packard is incrediblebut they are so deeply entrenched as a hardware company with printers and ink, so until hewlett-packard makes the higher market transition, they are not yet the same kind of company as ibm. >> zach, if you look at the hardware segment, year-on-year, it's down 25%. is there any recovery in the numbers? >> i'm not sure it matters to them. because it's now 20% of their business. so, you know, again -- >> with that as the element of it to me that brings the stock to $140, $150 if you get the recovery in the hardware segment. the services side we understand. i want to see the hardware side. >> i can imagine that doing decently. it's hard to see where it's doing decent. that's where the heart of the company is, it's not the ceo's passion. it's not to sell the computers, it's to sell the bundled solutions to everything. so, you know, i think it can do okay, but i don't think that's where you're going on get the real pump in this deposit. >> karen, real quickly. i know you hold hewlett-packard

hewlett-packard? big lotts, bb&t and hoywell. thers some nfusio a lotf people call hp is at's really hewlett-packard not -- go ahead. ok. big tts, i don't like t ste at all, i dot like it bee mine on route 22 is a complete andtter mess. it's a ore like family dolla congratulationgreat arter. weike that mpany. hoywell, that's dave cody, he's the terrifi ceo, always welcome on the show. i bought someoday for my charitable trust. hewlett-packard, you know i think the world of mark hurd. the ock is stuck at $37. it's the board lte tech story, i don mean to disenfranchise ibm. davinovakelcome otshow, russian and chinese sales are accelerating, kfc and taco bell and they have a new name for pizza hut, ey call it the hu bb & c, we know that the mpany well capilized. we'veot an instrial, we've got a retailer. we have a great food story and a technd a bank. ce again, i say hallelah, great pl and all around -- >> all aboard. >> -- well done, players. stay with cramer. >>> cramer's gone mobile. now t "mad money" on your mobilehone. crer's t

and it is merely a brand of hewlett packard. they'd been an independent computer company. apple, in the time between that tape and today, suffered a near-death experience. some people say they were within 90 days of chapter 11. in around '97 or so. and steve jobs, who had been one of their founders and who had been thrown out by the guy he brought in to help run the company, was brought back. and he has revived that company pretty spectacularly if you were an investor in it at least. and have produced a series of landmark products in the whatever it is, 12-years or so since he's been back. >> your paper has covered a lot of steve jobs and his illness. if steve jobs wasn't there, what impact do you think it would have on the company? >> it's very hard to say. he's one of these unusual chief executive officers, brian, who tends to be very detail-oriented. and he's a product guy. and hoe had his hands in a lot of things. so obviously it wouldn't be a simple matter of replacing a sort of -- a sort of nonassertive c.e.o. on the other

compaq is owned by stuart packard now appear yen -- is owned by its hewlett-packard. some people say they were within 90 days of chapter 11. in 1997 steve jobs, who had been one of their founders had been thrown out by the guy they brought in to run the company was brought back. he has revived the company pretty spectacular rate. -- pretty spectacular leap. >> your paper has covered a lot of steve jobs and his illness. if he was not there, what impact do you think it would have on the company? >> it is very hard to say. he is one of the unusual chief executive officers who tends to be very detail oriented and a product that. he has his hands in a lot of things. -- he is a detail oriented and a product guy. on the other hand, he has not designing the next macintosh. they happen to have a brilliant designer and design team. and they have a coo who has run the company in his medical absence. he has done very well. i imagine over time the company will change, because he is such a strong personality and strong presence. i do not know you could say the company would fail. i

wawantp, do you want helmricicor hewlett-packard?d? hewlett-packard? big lotts, b bb&t d d neywell.re's s meme cfusion. a a loofof pple call hp is that's realllly wlwletpackard not -- go ahead. ayay big lotts, i don't l like e e store at all, i don'n't li i i bebeususe ne on route 22 is a mplete and utter mess.s. 's a store like family d dolla mimi dollar,cocongtulations a a gat quarter. weike that company. neywell, that's dave c cod he's's theererfic ceo, always weome on the show. bought some today for mymy charitable trust.. hewletett-ckckar you know i think the world of m mark rdrd thststocis stuck at $37. it's the big-board lisistetetech orory, don't mean to disenfrancnchisebmbm vid novak welcome on thehe sho russssian d d inese sales are aclerating, kfc and tacocoelell and theyeyavave new name for pia a t, they call it the huhut. bb & t, we know thatat theomomny is well l catatalid. wee got an industrial, w wveve got a retailerer. we have a great fofood sryrynd a te and a bank. once agaga, , i y hallelujah, grt play and all around ---- >> all aboboar >>>> -wewellone, players. s

we do have investment in hewlett-packard. we like that one better. they've obviously had a lot of issues with their printer business, starting to stabilize. >> with hewlett-packard, i heard dell recently eked out a little market share? that's not bothering you with hp? >> hp, i'm not sure which statistic you're looking at, globalally, hp is the most dynamic, they're more diverse geographically, have more business in asia and overseas and the printer business very helpful and services business with edf they acquired is a lot of cost ring out of there and it's a very cheap company. that's the horse i'm going to play. >> both of you guys had a lot of good specific recommendations, thanks for coming on and providing them free of charge. we appreciate it. >>> the bulls are back in town. i'm happy about it. next up, we go across america from see xining -- you know, on improving corporate earnings. will it mean higher stock prices, stronger portfolios? you bet you. will it mean some of those lost jobs are coming back? maybe not right away but i sure hope so

and hewlett packard are the stocks to watch here. >> both those companies have diversified into services and through this downturn their punishment on the revenue line, if you will, has been less severe than i think it might have been had they not been diversifying over the last five years and that's helped steady their ships and they now look like strong strategic model that working pretty well. >> reporter: two other tech giants report this week. apple tomorrow and microsoft on thursday. analysts say investors need to focus more on what these companies say about the future than what they say about the past. apple is as much a phone and consumer electronics company as it is a computer firm these days. microsoft's report will be noted for its projections about upcoming sales of its new operating system, windows 7, and for progress by its bing search engine. tom lydon, editor of etftrends.com says electronically traded funds like ishares, dow jones, us tech select, and technology select spdr, let investors spread risk and avoid having to pick one technology player over another. >> the gre

they're going to increasingly face competition from microsoft, ibm and hewlett-packard. does that make you feel more strongly about those companies? >> supposedly, there is a fundamental story. a lot of the other sectors we're talking about in repricing, there is no fundamental story behind it. tech, there is a fundamental story that will drive the sector higher. and when you get to the back half of 2009, seasonally, that is the strongest period. so bring that altogether. then you give me an economic recovery in the fourth quarter, god you got to love technology. >> especially if the corporate spending comes back. that is a big wild card. for a company like cisco, half the revenue comes from business spending. that is a wild card. >> right. what do they do? they're laying off human ann beings and stay invested in technology. it is a bullish call. >> and as they lay off, they're going overseas for some of the employment. i mean that's part of the cost cutting that they're all doing in the technology world. i mean they keep moving from america and moving other places. >> s

>>reporter: hewlett packard used to advertise to all customer segments from both the consumer and commercial markets. >>: since the downturn, hp has begun to focus on specific consumers with significant purchasing power that they'd not previously targeted - women and young people. >>broggi: we start really talking to those people in a very direct way, getting from them the information about what they were interested in, what they wanted to get from us, how they wanted to engage with us and developing products that are 100% targeted to those audiences. >>reporter: one of the company's most innovative projects was to develop a partnership with fashion designer vivienne tam to create the digital clutch. >>broggi: we launched the product in fashion week in new york on the catwalk and we launched it as a 'digital clutch', which is a very different way of positioning a notebook, it's moving a notebook from a it product to an accessory. >>reporter: hp advertised very little, instead focussing on pr, fashion events and social media. >>: many companies are cutting costs by moving away from traditiona

a key offering will be a $298 notebook from hewlett-packard with 3 gigabytes of memory.ur latest in business headlines this morning. >>> all right. dine on a dime is back. we've got a real treat for enthusiasm morning. >> we're the first tv station to be invited invade of baltimore's oldest buildings. it sits right at the corner of charles and baltimore. take a look. >> reporter: you know the building well. you passed it for 103 years. the old b & o buildings. there's a chef that rattles off kitchen stops. >> naples, florida, maui, hawaii. >> reporter: and now? >> orange county, california and baltimore, maryland. >> reporter: and now one of the finest chefs in the land has landed in baltimore. >> hi, guys. welcome. >> reporter: this is the b & o american bossry. he has a french word you'll be using for when you believe. >> homely bleep, man, was that good. >> reporter: watch them practice on taking care of you when you come to visit. playing off this great building, you will feel like the way they did in 1906 traveling by train. look at the booths all designed by the fa

there is word the retailer offer a $298 notebook from hewlett-packard with three gettings of memory.price is more in line with net books. >>> we are working to help you during the tough economic times. on our website today, check out the five signs that you're living above your means, and how you can turn your hobby into cash or even a steady income. just log on the abc2news.com and click on our financial survival guide. >>> well, they say desperate times call for desperate measures. a homeowner in san diego has come up with a unique plan to get his home sold. if you buy the place, he'll throw in a $200,000 bentley. that's right. the home has more than 4,000 square feet, plus an ocean view. it's listed at a reduced price of $1.8 million. >>> now the forecast certified baltimore's most accurate. here is meteorologist emily gracey and maryland's most powerful doppler radar. >> i haven't been out in a while. is it sticky to go along? >> it is sticky out there. we're starting to cloud up. and the storms we saw in southern pennsylvania now starting to impact parts of maryland. so we're st

you will hear hewlett packard and dell and say this microsoft os 10 say game changer. it is.verybody at microsoft said this will cause people to get off the sidelines and upgrade and that cycle will kick in. it's also great for the hardware. >> any of the big names reporting besides what investors are pging when it comes to making it or breaking it? >> i don't have a big tell on that. the first week is more or less just when everybody said there is the first stock in the s&p 500. it's always alcoa, but nobody cares. other than a small amount of demand. >> you don't think it's indicative of the commodity play? >> it's more of how dull it is for the frames that are provided. >> anybody that thinks that is going gangbusters, it's not. i think it's going to be a lead in to the rest of the earnings season. a week or 10 days from now, far more important. >> thanks, big guy for stopping by. see you later on. >> when we come back, she has to be the most hat wife of a wall reet scoundrel in history. there a stinctn. as ruth madoff i getting a bad wrap. the inside story that we will te

compaq, you can still buy those computers but they are owned by hewlett-packard. apple, in the time but when that tape and today, suffered a near death experience. some people say they were within 90 days of chapter 11. that was around 1997 or so. steve jobs had been thrown out. he has revived that company pretty spectacularly if you were an investor and produced a series of landmark products in 12 years or so since he has been back. >> your paper has covered a lot of steve jobs and his business. -- his illness. if steve jobs was not there, what impact would it have on the company? >> it is hard to say. he is one of these unusual chief executive officers who tends to be very detail oriented and he is a product guy. he had his hands and a lot of things. obviously, it would not be a simple matter of replacing a non assertive c.e.o.. on the other hand, he is not personally designing the next iphone or the next macintosh. they happen to have a brilliant designer and a design team. they have a c.o.o. who seems, by all outside accounts, to have done very well. i think t

enjoying some pretty good traction with mobile smartphones, if you will, and big companies like hewlett-packard are testing it as far as using it on new netbooks. google is looking at net books down the road but this isn't anything until 2011, 2012 at the earliest. >> i totally agree with you. it's joe. the smartphones have evolved into the technology of today, 2009. when you look at the operating systems, it seems this is where the technology is not based on 200. what google doing advantageous to everyone, including microsoft where they'll look at what they haven't tried and bring it up to 2009 technology levels? >> yeah, that's a great point. if you look at what we're seeing with smartphones today, that's one of the reasons apple isn't getting involved in netbooks because it says look at the i want phone. this is essentially our version of the netbook because it does everything all the other netbooks do and then some. google is playing the groundwork, trying to put a lot of this operational capability as far as operating systems are concerned into the cloud, on the web, that's good for google

. >> i have to hear you on hewlett-packard and cisco one more time. speed of light, hp. they're knocking dell out of the ballpark.. we have these lousy dell machines in the newsroom. hp, do you like it or not. >> i like hp because they have a stronger consumer businesses and consumers are buying more pcs than businesses. cisco, i like them because of technology, router and switching business not doing the best but looking for business in web ex-and that's doing well. >> john chambers, one great american, jon fortt of fortune. and i'm kudlow of cnbc. coming up, kudlow banking on banks, i love the story a zero interest rate and steep curve, even a banker can make lots of money in that environment. i will stay with it. we'll look at so much more this evening, i have to give my henry paulson award still to come. we have stocks stocks stocks, green arrows across the board again today, our gurus help you find the right place to keep your portfolio riding this rally, plus roll out the red carpet, this is going to be the henry paulson award, financial and economic bravery. i'll

a lot of money, a lot of cash on the balance sheets for sisco, ibm, and hewlett-packard, and they'lle making acquisitions before we see any meaningful recovery in i.t. spending. >> jim, i think you're right. i didn't think the quarter was that bad. i've got to tell you, sometimes we get these tech companies and they believe they're going to explode. river bed was fine, i would be a buyer here. i agree with your judgment. holly in virginia. holly? >> caller: hey, cramer, this is holly from an achievable dream, a big boo-yah to you from all of our student body here in virginia. >> i love it. i love it. the reporter that we met there when we were doing university of virginia was the first guy to kind of understand that the show was watched by younger people, which i think is terrific, congratulations to learning about money, most of the classes in the country do not teach about money, you get to college, you have no idea what you're doing. thank you for what you do. what's up? >> caller: awesome, thanks, our question today has to do with netflix they provide online movie rentals. the co

. >> speaking of hewlett-packard scandal and hired people to track down leaks., it's deutsche banc's turn that a board and shareholder were definitely doing that. i think this is definitely underplayed. >> that head of security for a german bank would get carried away with surveillance, spying, to quote claude rains, i'm shocked there's gambling going on in this establishment. there needs to be more vigilance on the part of regulators on this. if these guys end up in the slammer, i think they should, let's face it, they ought to be joined up with guys from aig and shearson and other companies. >> that was always my problem with colleagues at "businessweek," they always said there ought to be a law. greg, there shouldn't be a law on this. >> i have date of angle. i beat lot of bernie madoff's people would like him to be investigated. sometimes you need a priva private -- to do diligence. if you're doing trading, insider trading blackmail situation, we need to know that if we're on the board or shareholder. they went past that and shared shareholders information,

if there's more enterprise spending which everyone says is coming back, emc, hewlett-packard, and crisco, the last two names in my charitable trust, because i put my charitable money where my mouth is. the other plus for tech financial service companies, a huge consumer of tech are making a comeback after tremendous turmoil. here's the bottom line, you would have seen intel's blowout quarter coming even if you were looking at the clues, even as the press and many analysts seemed determined to ignore them. but now that intel gave us something too big to ignore, the blowout, tech is back on track. stick with me after the break and i'll tell you about another tech stock that the clues are telling you to buy, buy, buy, and this time i hope you'll pay attention to them. i need to speak to joe in california. joe? >> caller: jumping jimbo. >> what's up there, chief? >> caller: hey, jim, i got a speculative ipo name that can't wait until friday. >> what's that? >> caller: that's your take on solar winds, ticker syi? is the growth rate in that company a good offset to its p/e ratio? >> oh, let me

all 30 dow industrials were higher, though hewlett-packard notably trailing the pack. and after hours trade, shares of dell under pressure, after the cfo warned of margins getting squeezed, although demand looks to be stabilizing. and take 2 interactive getting pounded after cutting its forecast for the next three quarters. besides goldman sachs tomorrow, be on the lookout for j & j and intel coming out, as well as yum brands, and later in the week, other big names include google and ibm on thursday with citigroup and ge on friday. larry? back to you. >> thanks very much, matt. at earnings central. now let's dive into the market standard. we have got bob crandall, former ceo of american airlines, and forbes publisher rich karlgaard, and dave joy with river source investments. hello, everybody. rich karlgaard, i want to start with you, bus a little birdie told me you like banks. >> i like banks, because i've been watching "the kudlow report", and you convinced me that the upper yield curve is good for banks. they're coming back, they're strong, never had more cash on th

karen, you own hewlett-packard.. based on the fact that you think they're being very conservative does that mean that you think tech is going to continue its rally? >> well, i like -- i like hp. i'm happy to own it. i wouldn't be surprised if it trades up tomorrow. there is some that you can infer from what ibm says, but a lot of ibm's business is different than hp. it can't be bad. at worse, it's neutral. it's probably positive. >> if you own the cube, let's say, what is the smartest move in terms of not wanting to get out necessarily, but at the same time we've got lots of earnings ahead. >> it's more diversified as well. you've got a group of 100 different stocks.. with ibm, i agree with joe. i like it long-term. i wouldn't necessarily go out and just buy it here. you know, look out in august, out in september. something like the 100 puts. if you sell the 100 put, that gives you the right to buy that stock at 100. >> jpmorgan beating this morning. it's jumping 36%. shares did fall. we should keep in mind that jpmo

if you look at the bernstein piece, that would be the big winner along with hewlett packard. dell didn't do anything. changed all day. it's okay, should have been higher. i know john likes it. dell is pretty interesting. >> a final thought on technology. if there's one sector that understands the deflationary environment that has been through it with the tech double in 2001, look alt technology. they get it. they know how to manage the inveb conciliatoi inventorie inventori inventories. they've been through this crisis before. >> financials got hit hard today. the financial etf using more than 3%. when you look at the calendar, which financials will set the tone. yes, goldman sachs is expected to do well. we have that upgrade earlier this week that saying the revenues could exceed 2007. but at the same time, they're best in class. that have ear a separate kind of breed. they used their capital differently than other financials. they set the tone from the rest of the group. another. >> jp morgan is more of a bellwether. >> okay. >> hello, mr. diamond. >> aside from that, the t

still look to microsoft, apple, plenty out there, ibm, hewlett-packa hewlett-packard. >> and tepid guidance they did give was based on broad economic global improvement they said has to happen in order to come through. a lot of the comments they made were not very encouraging for the bulls. i still liked you saw the goldman upgrade, i believe on thursday and friday, i think it's still an interesting play here, but these comments are not helping. >> yeah, they also talked about demand stabilization. i want to go back to the pc side of things, slumping, a lot of data. that's very encouraging and it hope we get really reads from intel, they're the ones that care about this probably second only to dell and hp and some of the guys in that business. i think that's actually somewhat encouraging and i look to that. i think nokia's side, by the way, we look to their earnings in two days and i think they're going to tell us they are significantly in that new line they have out there in china. and i think that's going to be very bullish for the other players. >> time to take your position. the largest

even some techs that are green like microsoft as well as hewlett-packard. melissa? >> one of the architects of the subprime mortgage boom is hoping to make a big profit by cleaning up the mess left by its disgrace. like countrywide his former employer. cnbc's jane wells is in los angeles. >> posted to go public tomorrow. it's going to continue to use that ipo money to buy bad mortgages at steep discounts from institutions like the fdic dealing with bad banks. those discounts let them modify mortgages that let people keep their homes while environmentalists make a profit. what kind of discounts are we talking about? executives are not talking during this quiet period but here's ceo sanford kerlin in january about one deal he just got into worth $500 million in loans. all right. well, at that time he was getting that deal a discount of 30 to 50 cents on the dollar for that particular case. he used to be angelo mozilo's number two at countrywide. he left in 2006. and as for criticisms that penny mac is profiting from a mess countrywide helped create, kurland says he le

rebound in pc sales in the next two to three years dell is better positioned maybe even than hewlett-packardand they're getting a bounce there. courtesy of mike huckman, a couple items. amag, jpmorgan upping the price target to 75. that's right. now at 53.82. and descend rion. merriman kernan ford they like the future of prevent so much they're giving a price target of 49 to 50 moving forward into 2010. i love looking at that chart. that year-to-date chart is unbelievable. some weaknessar you figure oil down. well, people maybe don't figure an investment in solar is as big a deal with oil on its way down. take a look at solar stocks getting hit hard. and with that segue let's go to sharon epperson at the nymex. >> oil has been down for four straight sessions and the slide that we've seen more than $10, or thereabouts, since the highs that we hit for 2009. that was just last week that we were over $73 a barrel. we can point to the fact that risk appetite seems to be waning and we can point to the fact that demand seems to be dwindling. but keep in mind the places you really see this is going

. >> let's give bernie a chance to make a case for hewlett-packard. >> it's selling pretty cheap.igs of eds has allowed them to cut $3 billion off the cost structure. and, you know, as the economy improves, as businesses get more confident, as the bank system becomes, you know, better and more reliable, you know, the sales will pick up. i think you'll see p/e expansion and i think you'll see earnings expansion, as well.. >> all right.. bob and bernie, thanks so much to both of you. >> you're welcome. thanks for having me. >> have a great weekend.d. >>> a check on the markets coming up right after this. companies on the planet mol speak one financial language. the language of exchanging. together, we're helping to shape the exchanging world. nyse euronext. powering the exchanging world. when a major hospital wanted to add on to their benefits package at no direct cost to the company, their very first word was... aflac! aflac! find out more at aflacforbusiness.com the gold delta skymiles credit card... from american express... it's the official card... of the world's largest airline

same thing happens in pcs and the smart guys look at these things and say that dell and hewlett-packardould be beneficiary if people start to upgrade those computers. erin, back to you. >> thank you, matt nesto. let's get a check of what's making news outside the world of business. monica is with us as we get ready for the joint prs conference. we havnews on the nuclear arms reduion. >> that's rit. i know you're seeing tha crossing the wires. president obama is in moscow today for the first u.s./russia summit in seven years. we have been meeting with the president. medvedev discussing it and the fight in afghanistan and we do have two bits of news to bring you here. russia and u.s. aim to cut deployed nuclear warheads to 1500 to 1675 units on each side. so a framework deal there. also, russia agreeing to let the u.s. fly troops and weapons across its territory to afghanistan. so we'll keep you posted on all of that. meanwhile, in los angeles, they are bracing for massive crowds for michael jackson's memorial service. as many as 1 million people could flood the streets of the staples cen

but you don't own dell, you don't own hewlett packard, but you own a couple of companies coming out ofthailand. why is that? >> that's a good question. pc companies, the way it works is intel and microsoft sucked out all the r&d and what we see is we see some asian xps like aseuss being able to take much lower margins in the space. even as we see a cycle in pcs, we think you want to own a guy with a lower margin structure who is able to take share. ace is a relatively large position in the fund. acor is also the second largest share of pcs in europe and we see them continue to go gain traction, again, at a much lower margin structure. we want to avoid areas in the fund where we see world competition. >> david, we want to thank you very much for joining us. it's been nice talking to you. >> thank you. >>> any comments or questions this morning, we would love to hear from you. our address, as always, squawk@cnbc.com. we'll take a quick break. when we come back, the president is making a pitch for new russian relations. d#: 1-800-3450 "i rethinking everything... tdd#: 1-800-345-2550 cludi

representing such firms as google and apple and youtube and hewlett-packard and dell and telsa and lsigic and it goes on and on. it means from my perspective, that john roos understands the dynamic of american innovation. and understands what it takes to extend america's competitive edge. and based on my own experience in this body for 18 years under four presidents, and two of each party, and also based on five years of the head of the u.s./japan legislators conference, i think john's background will be impressive to the japanese and will help make him be an effective ambassador. like the president, i truly believe he represents a new generation of leadership. but beyond the business acumen and the experience, i think his certainly qualities will also make him an excellent ambassador. let me put it this way, if i had to make an important decision for the country or for myself, i'd like john roos to be in the room. primarily, because of his impeccable judgment. he has a steady hand when the pressurizes. he never panics. he never, you know, does anything other than follow his own plan,