sachs. then, of course, george w. bush made him treasury-secretary. what is the first thing that he does. first thing we go into this crisis, he let's bear stearns fail. that was one of the big competitors of goldman sachs. and then fannie and freddie, then he says lee lehman brothers which is the biggest competitor of goldman sachs, let them fail. so the former goldman sachs ceo let's two companies fail. the one company which was one of their competitors and then the sending one was the biggest competitor. then they decide the next day after lehman's chief stopped aig failed. the only one to help paulson out the former ceo of goldman sachs, in the room was a guy named lloyd blanenstein. they decided you should bail out aig. so they bail out the day after they let their competitors out, they bail them out to the tune of $85 billion. these two jean uses, say yes, you have to do that for the economy. so who is the biggest single payout from aig? what a surprise, on the check, make it out to go

gary is the former partner at goldman sachs. now, once kashkari has made goldman sachs a bank holding company, they don't have that pesky s.e.c. thing, you know, to look them over. instead, no, no, no, they have a guy named steven friedman. he was the former chairman of goldman sachs. now overseeing them, because

sachs. then, of course, george w. bush made him treasury-secretary. what is the first thing that he does. first thing we go into this crisis, he let's bear stearns fail. that was one of the big competitors of goldman sachs. and then fannie and freddie, then he says lee lehman brothers which is the biggest competitor of goldman sachs, let them fail. so the former goldman sachs ceo let's two companies fail. the one company which was one of their competitors and then the sending one was the biggest competitor. then they decide the next day after lehman's chief stopped aig failed. the only one to help paulson out the former ceo of goldman sachs, in the room was a guy named lloyd blanenstein. they decided you should bail out aig. so they bail out the day after they let their competitors out, they bail them out to the tune of $85 billion. these two jean uses, say yes, you have to do that for the economy. so who is the biggest single payout from aig? what a surprise, on the check, make it out to go

in the office of goldman sachs. they decided, yes, you should bail out a.i.g., so a.i.g., they bail out the day after they let their competitors go out, they bail out a.i.g. to the tune of $85 billion. these two geniuses, both from goldman sachs say, yeah, you got to do that for the economy. so, who is the biggest single payout from a.i.g.? what is surprise? on the check, make it out to goldman sachs for $12.9 billion. now, the treasury secretary, again hank paulson, remember, goldman sachs' c.e.o., he decides he needs somebody to head up tarp, you know, somebody to make sure he can figure it out. who do i know, who i do know? there is this guy at goldman sachs, neel kashkari, he decides he will be appointed to oversee tarp. he changes -- one of the first things he does is goldman sachs has to be changed to a bank holding company. why? well, you know, that way they can have access to tarp, fdic money, get money from the fed in the discount window. that way, they can be saved. right. right. so kashkari, after he make

jpmorgan and goldman sachs.but i wanted to ask you, your good friend, paul krugman writes a column today. he says, "what's good for goldman is bad for america." i don't get that, robert, and i would like you to weigh in and comment on it. >> here's the problem, larry. that you've got an awful lot going on and some of these banks, golden and jpmorgan are two examples that resemble, uncannily, what was going on before the great crash. there are no regulations, no new regulations, no regulations put into effect. you've got a lot of smoke and mirrors going on with regard to the underlying assets, particularly these nonperforming loans. i mean, nonperforming loans are growing. as unemployment grows -- and this is the connection between banking and my area, which is employment, because as unemployment grows to the stratosphere, we have a lot of people that cannot pay their debt or mortgages or anything, so without mark-to-market, you really don't know what these banks are sitting on. >> they do -- i'm sorry. >> well,

that's -- that separates me from goldman sachs. andrew vacaro, cap-and-trade here may very well fail in the senate. i think it's a scam as well. jim darlington, i canceled my subscription to "newsweek." i felt the magazine had become dems week. brandon, bill, i was disappointed, you said "newsweek" would go under and were happy about it. people lose their jobs. that's a valid point. i'm not happy about the news yankee situation but it a dishonest -- about the "newsweek" situation but it's a dishonest publication and that hurts all americans. "i read that "newsweek" is for sale." thacebess week. my next book is called "pinheads and patriots." big obama component in that book. and how about for the website? www.foxnews.com/owe rilely. and oreilly@foxnews.com. name and town if you wish to opine and we have a great word. this is a tremendous word tonight. when writing to us do not be a quakebut ok. i never heard that word until i found it. it's a real word so go out tonight and if somebody is mean to you, they do not -- do not be a qua

that's -- that separates me from goldman sachs. andrew vacaro, cap-and-trade here may very well fail in the senate. i think it's a scam as well. jim darlington, i canceled my subscription to "newsweek." i felt the magazine had become dems week. brandon, bill, i was disappointed, you said "newsweek" would go under and were happy about it. people lose their jobs. that's a valid point. i'm not happy about the news yankee situation but it a dishonest -- about the "newsweek" situation but it's a dishonest publication and that hurts all americans. "i read that "newsweek" is for sale." thacebess week. my next book is called "pinheads and patriots." big obama component in that book. and how about for the website? www.foxnews.com/owe rilely. and oreilly@foxnews.com. name and town if you wish to opine and we have a great word. this is a tremendous word tonight. when writing to us do not be a quakebut ok. i never heard that word until i found it. it's a real word so go out tonight and if somebody is mean to you, they do not -- do not be a qua

later, jp morgue and sachs. the merrill guys contributing to the guy or do they still have the handcuffs on, we'll find out. >> we're still talking about the headline here. equity surpassing 2000. it will be amazing to see if anyone else can match that. on the economy side, and guy was just mentioning, the largest so solar cell company, how it was down on another profit warning. you were noting, if you take out energy from retail prices -- >> if you think about it, 1.8% on producer price but 1.5% if you take out energy cost. if you pull out auto sales and gasoline sales, you're kind of flat, so not a lot of direction going on there. i'm looking forward to seeing how companies are doing their top line. you can only cut costs so far. i think a lot of companies have cut to the bone. we're going to have to see e revenue from the top line. >> we're going to be focusing on top line. goldman sachs. >> they did all right there. >> up to you, mr. haines. >> up next, earnings central in full swing. joe and carl are in the

this enriches goldman sachs. >> sure. bill: why doesn't goldman sachs pay any federal income tax. >> goldman sak's took tarp money. they took taxpayer money. they paid it back and just reported a blow out quarter in earnings this morning. bill: why then the don't they pay taxes like you and i. >> because they are goldman sachs. bill: there has got to be a reason. >> it may be a pass through capital gains. they pay capital gains tax as opposed to corporate income taxes. bill: look, from what i understand they have outsourced a lot of their profit to overseas countries. so they dodge american taxes just like president obama says he is going to stop because they do business overseas and they write it off over there. are you surprised that goldman sachs making 2 billion pays no federal income tax? >> i'm surprised at it but i am no tax attorney here. i will tell you this though. this is the same goldman sachs that last year the same tax year that you are talking about 2008 is the one that convinced pension funds and mutual fu

by any measure, is a staggering profit -- wall street's @ goldman sachs -- goldman sachs has smashed assonance, delivering a $3.5 billion profit for its second quarter. under that is a more large number, $6.6 billion has been set aside for compensation and benefits. we have this report. >> less than one year since wall street seemed on the verge of meltdown and billions of dollars in taxpayer money was poured into financial institutions. now, top player goldman sachs says its income from trading has nearly doubled from one year ago. in this building, yet some of wall street's largest employees, fastest computers, and most politically connected bankers. that has made goldman sachs a liter on wall street and the bank approved its reputation again by shattering expectations for its profits. last month, goldman sachs was among the first to repay $10 billion in loans from the u.s. treasury. the company's share prices have risen by nearly 80% this year. doing well in difficult times. >> we have operated in extremely in challenging environments. this environment is not conducive to slate --

there's a few investment banks competing after bear stearns and goldman sachs crumbled. it was among the strong base even when lent tax payer money. >> in florida, authorities revealed chilling new details in the murder of pensacola couple. authorities said eight people were involved in what amounded on a commandostyle assault on the house where the coup lived with many of their 16 children. police began to talk about motive or motives for the murders. here's steve only sun sammi. >> reporter: late today police released a second video of two men entering the home. they were dressed in black like ninjas and entered through an unlocked door on the side of the home. another video released lack week show another set of intruders. it's clear the police are looking for a crew. >> we have a motive of robbery. because of the repedestrianity of the crime. entry into the house, exit into the house, indicates again something that was well planned, well thought out and well executed. >> reporter: police say they're looking for the rest of this team. some of them seen in these photos

this enriches goldman sachs. >> sure. bill: why doesn't goldman sachs pay any federal income tax. >> goldman sak's took tarp money. they took taxpayer money. they paid it back and just reported a blow out quarter in earnings this morning. bill: why then the don't they pay taxes like you and i. >> because they are goldman sachs. bill: there has got to be a reason. >> it may be a pass through capital gains. they pay capital gains tax as opposed to corporate income taxes. bill: look, from what i understand they have outsourced a lot of their profit to overseas countries. so they dodge american taxes just like president obama says he is going to stop because they do business overseas and they write it off over there. are you surprised that goldman sachs making 2 billion pays no federal income tax? >> i'm surprised at it but i am no tax attorney here. i will tell you this though. this is the same goldman sachs that last year the same tax year that you are talking about 2008 is the one that convinced pension funds and mutual fu

how's this for i atransition intooldman sachs? goldman sachs is going to make something like $ bilon this quarter, and what's interestin about this,guys,here doing it as a bank. they are taking risk as a bank. and i'll tell you, i st g a nasty e-ml from lucas v praagh, the flak over there at goldman chs, saying my rant at "power lunch" about ho goldman sachs increasing risk as a bank -- remember, as a ban it s access to the discount window. it's basically takg risk somewhat on the dime of the xpayer. he said th was a complete rant and nfair and evething else under the sun. but i will say i again. goldman sachs is making a lot of money. it's making a lot of money as a bank. if you're a bank, you have special privileges. you have these privileges, namely, the discount window and other privileges. remember, they got $10 billion, they did fay it back, but they got $10 billion from the federal government, they got the aig bailout, and i will say this. i think it's about time that goldman sachs is going to resume trading activity, which

goldman sachs is in talks to acquire the u.s. treasury department in what some on wall street are calling the biggest blockbuster deal in the history of finance. goldman sachs confirmed today it was in talks to acquire the t r treasury department. the merger between goldman and the treasury department is a good fit, because, quote, they're in the business of printing money and so are we. the goldman spokesperson went on to say the merger would create efficiencies for both entities. quote, we already have so many employees and money flowing back and forth, this would just streamline things. the spokeswoman went on to say, the only challenge is to try to figure out which part of the treasury department we already own. that is tongue in change. it's a wonderful thing from sa . >>> let's rock and roll, dennis. >> thanks for being with us. good to see you. "cnbc reports" starts right now. >>> tonight on "cnbc reports," have a good week? wall street did. and the same is probably true for your portfolio. the dow, s&p, and nasdaq all sco

goldman sachs is up 10%. joe? >> goldman sachs up and made 6.8 in the component revenues.hat goldman sachs can do. they can do what others can't. they can take risk again. that was evident in citigroup's earnings today. taking risk is important for earnings going forward. >> j&j was up 4% on the week. pete? >> their revenues were phenomenal. it's the diversification they've got. even though they lost a billion dollars in sales of their top two drugs, they still managed to put up a great number. j&j is the diversification that makes them such a premiere player. >> pop is up, jared? >> you know, great stock, doing fantastic. i love this sector. i like copper. i like gold. it plays into the whole inflation thing. also plays into the energy, as well. the stock up here i'd be really careful though. i'd probably take slow profits but i like it long term. >> nokia was down 6% on the week, karen. >> yeah, nokia had an earnings release that wasn't great yesterday. the quarter itself wasn't so bad. it was the guidance going forward. it was a margin compression. it was disappointing.

goldman sachs. let's get to the word on the street right now. s&p 500 closing higher by 2.5% above the 900 level. good leadership from tech as well as the financials. welcome back. >> welcome back, it's good to be back. we've been looking and struggling for a long time now looking for somebody to lead us. we've been talking it wasn't going to be energy. energy led us for a while, now we've got a leader potentially coming back. it starts off tomorrow, starts today a little bit with goldman sachs, the financials, then you started to get, tech started working. that's what hit us back in march, started to move us in april. if this earnings season can give us a catalyst, that's what everybody's been waiting for and goldman sachs is going to kick it off. >> i'm going to put my skeptics cap on. this seems like a bounce, a reflex ahead of earnings season. karen, what do you make of this? right now it did just seem like a little bit of a bounce on really nothing, it was nice meredith whitney turned bullish, but throughout the day it's gone higher. >> gol

but then goldman sachs would have went.when the federal reserve made them a bank and they got the full access to the discount window and all the stuff that the fed gives you, and they do this, you got to ask yourself, why does the fed open up the discount window? generally they want to protect average people that put money with these banks just in case they run into some trouble that these banks, commercial banks, this is a protection for the little guy, can go out and these banks can borrow from the discount window. goldman sachs does not have any customer deposits. it's a plain old bank. it's one thing to save them, but they're saved now. the real question is, how long do they stay as a commercial bank. you got to think they're going to come under pressure. i think that pressure to give up that charter, at least the federal government's going to come under pressure to get them out of that charter that, pressure i think, bob, will come next week i think. here's why. over the next couple days, you're going to see earnings r

goldman sachs, blockbuster quarter. trading up 9% which makes me worried. did they trade at the end of march really well, like in april, like other people? what does that mean for now? >> volatility is slowing down a little bit. that was interesting. yesterday volatility dropped off sharply, and volatility with the traders.s. but lloyd blankfein did make some comments in the press release. he talked about how you're looking at still fragile markets, but still seeing improvement.t. >> you're supposed to be like vanna white. >> you are. >> i'm waiting for the charts to come up. >> for some reason, they're stressing that it was basic blocking and tackling and playing the newer operations at goldman. >> like at 90 -- >> that is what they do. but the risk supposedly was flat with a year ago. >> there it is. >> got to be impressed with the stock's performance. it's now 102 points above a tie. >> this is what we were talking about today, is just this level. it's been above the flat line all morning long, two very quick drops below that. if you want to show the one

we need to fold up with goldman sachs. it was the man as far as the financials, these guys are truly the man as far as the tech. >> let's bring in an analyst, webb busch morgan analyst. patrick, great to have you with us. >> thank you very much. >> you heard the trader on the desk. they are positive on what intel had to say. at the same time, does that mean that going into tomorrow's session with a 10% gain, does that translate into the trading session tomorrow, what do you recommend clients do with the stock? >> i think guys short of term, i think taking profits probably makes sense. longer-term investors will like what's happening, but clearly intel showed up to the all-star game, too. >> in terms of the conference call in about half an hour's time, what is the number one call that you will ask the management? >> i'll give you two. first will be what do we think about p.c. demand in the back half of the year. we saw a nice inventory correction. the question really is what sell-through it, is what management thinks and ho

everybody's talking about goldman sachs, i realize that's the earnings. i've got to figure, morgan stanley is really well positioned going in. it has been sort of depressed, holding underneath 30 for quite a while, trading around 27. looks a little bit like it might be cheap. their numbers could be extreme, as well. i think they could crush it almost like goldman sachs. >> the stock you wanted to buy was morgan stanley. and turn over to that last week, he called them goldman light, which i don't think john mack would appreciate but he was right on with that call. that's where you wanted to play this and morgan stanley outperformed. >> will we see the same earning we typically see? usually had been in the past, but of course, they are no longer with us. goldman sachs is first out of the gate, we will get a pop in the whole sector will rally and that is the end of the rally. >> could be. could be a huge mine day for goldman and could be the stocks up $4 or $5. big volume day, maybe the tape reverses, maybe goldman reverses on the back of it. that's what you

>> on goldman sachs? >> on goldman sachs being able to move and maneuver. >> no. with a tom wolf novel with what they're doing and their competitors have gone down, lehman, bear stearns and the credit markets have been revived. rite aid has again able to get junk bonds on tlut. the credit markets are reviving. i just don't think it's as thorough as it should be. the fact government could issue more debt, getting their balance sheets back in order, no surprise at all. >> we've been watching the future this morning, which are well above fair value. earlier through the course of the morning we've seen goldman sachs number, right in line. johnson & johnson indicated sharply higher after it came in with earnings better than expected, too. take a look at the dow futures.. you'll see right now up by 51 points. the breaking news doesn't end here. we're counting down to the government's retail sales report. also, it's the producer price index to get more on this we head right down to kevin ferry, who is standing by to give us those numbers. >> big number on ppi, up 1.8%. u

goldman sachs bought in 4 $5 billion.ur taxpayers were forced to invest $10 billion in goldman sachs. warren buffett received 43.5 million options with 1.8 billion for his $5 billion gamble. the taxpayers got 9.5 million options with 500 million, one- fifth as much for their investment, he is being paid 10% interest, taxpayers get 5% for the first five years, 9% for the second. he has a 10% premium, we have no premium rights. he got $5 billion for his investment, taxpayers got 4.9 billion or their $10 billion investment. al is this fair and why did warren buffett get a better deal than you got for the american taxpayer. >> there is a clear reason why. the capital to go into all the banks -- this was in the middle of a crisis. attractive capital was not available. the reason that we had to do this is because the capital was not available. we were providing the capital, that was structured so the taxpayer would get the money back -- >> whenever gold and sets the terms. >> the banks put out the capital, and this is preferred

i'm larry kudlo goldman sachs out wi its earnings tomorrow. the company apparently i on a roll, but will it satisfy investors? we will break out our earnings central team. >> i'm melissa francis. connecticut attorney general richard bloom is set to testify on capitol hill tomorrow on the consumer protection legislation but he will be on live this morning to tell you why he thinks you need more protection. this is "the call" on cnbc. >> welcome back, ybody, markets on a roll this morning, i think investors are licking their chops over the expectation that goldman sachs going to have dynamite earnings no one particularly worried about the fate of the cit lender. the dow is up a percentage point, over 80 points. the s & p is up about 7 or 8 points, look at that 8.25 points. the nasdaq up 9 almost 10 points. we are rocking and rolling. oil is below $60. gold is off, ten-year treasuries down to 330 or thereabouts, trish. good morning. good to see you. >> good morning, larry, good to see you, too. okay, so, we have got some upside here, significant

goldman sachs is an outlier. and a t of the otr nancial nameare rejects from the chdren's petting zoo. but stacy makes a greapoint. option traders never take the idea of armageddon off t table completely. as soon asou do, it happens is you get your heahandedo you.d protective put buying and lot ofhe fincials has been andotal. earnings don't happen in a vacuum. earlr, when things were much better, but the overal terror was bad. we had aot of preannouncements whe people were saying, hey, our earnings for theirst quarter will be okay. if we were set up for big disappointments, we wod have seen me active management of expectations. really haven't seen that. so the put buyinis anecdotal. itpeople wanting to protect their positions. >> i wou mention that goldman sachs has started off on tuesda i thi goldman has a eat quarter and gives a great ouook. i don't thk it will be the rt of thing that propels the entire secto i think like scott said, gdman is considered an olier. the one thinthat can turn the ctor to the down s

just like goldman sachs here. up next find out what the latest earnings results are saying about the health of corporate america. >> we've got a lot of companies to take a look at this week. and thn we're checking on oil. the energy trade in today's "fast money" final call. is now the time to place more bets on oil services as the latest contract has oil above $65 a barrel? >> and after the bell maria one on one with economist nouriel roubini. his comments about the worst part of the recession passing by had moved the markets last week, but where are we exactly in the current downturn? we'll hear from him 4:00 p.m. eastern time. >> after the market moved he said the comments were taken out of context. we go to the source. hear from nouriel roubini at 4:00. there's the action and where the most heavily traded stocks are on wall street today. back in a moment. last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one liv

goldman sachs continued there. s & p, we are at the level, where if you are a money manager, you get uncomfortable. because you've got to beat the benchmark and it's time to start allocating. >> we threw up a chart before of ibm. the earnings came in better than expected. ibm raised its forecast to 970. even bullish analysts said it would raise its forecast for the year by just about a time. so really, playing the cover off the ball, not the doors off the hinges. whatever metaphor you want to use, ibm did it. what's going to win out in the end? >> i think for these days, it's a similar theme. they crushed on the bottom lineup they were light on the top line. and the margins were good because they've showed how to rein in spending. it's about the outlook they're giving for the second half of the year. in ibm's case, the stock's performance here is lackluster. it tells you that these names are tired despite the fact that i agree what joe is seeing about overall allocations in this market. guys are very scared. i thin

does that mean we give something back by goldman sachs? >> not unless we raise taxes on the folks earning it. just think about it, the political dynamite. we have a financial and economic crisis in this country, created in large part by the excess of, great, and probably criminality of those in positions of influence in the financial world, particularly on wall street. if and the country is suffering. an informant going to double digits. at all -- akron, toledo, people are in pain and you find out that these folks, these architects who were bailed out of the people in akron and toledo arnelle living large, paying for the hamptons -- it made for a populist revolt for 2010 if the republicans are smart enough. >> goldman sachs paid back the $10 billion, i understand. aig is one of the gets me. they were selling stuff they did have, basically. >> normally you go to jail for that, right? >> i think so. >> on wall street you get a bailout. >> didn't vernon made of cells stuff he did have? >> hank paulson was on the hill this week tried to explai

the jpmorgan trade lines up goldman sachs. look at what goldman sachs did again today. it again just shows how beautiful goldman sachs is in this beauty pageant. it's a megan fox. >> well said. >> let's take a look at jpmorgan and what he had to say in the context of citigroup. all of these banks are going to report in the next week or so. >> well, i think that -- sure. first of all, he said credit cards aren't going to make any money next year in 2010. that's very important. >> hold on, tim. we want to go to tyler mathieson who is at the breaking news desk. >> thank you very much. as you probably know, the long-time bear analyst was given credit today for helping the market on what some interpreted as an improved economic forecast from dr. roubini. but he has just in the past few minutes issued a statement saying that, no, wait a minute, not so fast, folks. it's been widely reported today, he says, that i've stated the recession will be over "this year" and that i have improved my economic outlook despite those reports my views expressed today are no different than the

everyone thought goldman sachs, the sun is rising and setting by goldman sachs. the timing is a little bit critical here, don't you think? so as goldman sachs goes, so goes the economy. i think that's what we're looking at. >> and you're also operating in an environment where everyone is very, very cautious about showing optimism. and what does that mean? that tells you the hand of what the market has right now. the hands right now that they're playing with is very, very underinvested. that is important as you move forward. again, at some point you got to chase the benchmark and move in and try and show performance. >> right. let's move on to the next trade. we want to talk about a sector that was -- that is technology. they had a big earnings report from apple, yahoo, amazon and ebay. traders buying. nasdaq just came off the best year in a decade. and certainly that call on cisco was very interesting. >> what's interesting about it, first of all, they're pointing to a recovery in the u.s. business and not in the overseas part of the business. that is making up f

it was goldman sachs and jpmorgan. and we've gotten good numbers from cat and all the rest of them, but as you get to the next level of earnings, i think you will have concerns out there. that's why you are seeing the kind of activity that you are seeing in the options pits, where you are seeing the puts. they are trying to get closer to the marketplace and buying the puts and getting the protection at the cheap volatility levels. we start to get to a pullback and you start to accelerate to the downside, steve, you will have guys selling, selling, selling. and that's the kind of market we could face over the next couple of weeks, so let's be careful of the consumers buying. >> pete is right, it's not only about the consumer. what would take us higher is the corporate balance sheet. they are strong. go back to microsoft, i told you last night, you know my feelings on microsoft. you have to reduce your position. >> how do you define strong? >> the goal was to reduce the position in microsoft. when you look at microsoft t

like goldman sachs. you can only compare them insomuch as both firms trade but goldman is clearly head and shoulders above everyone else. but jefferies. go back to that stock. traded up to $22. they raised estimates. we said get out. stock trade is down to $17.50. we told you it would trade down to the high teens. now back to 23. stock's going to have trouble here. no reason to chase it. this is the real story, jef, to watch. you don't want to own it here. gets down to $18.50, $19, jump in. >> you look at bank of america stock, this has been going up, up, up while the rest of the big names are starting to pull back. you see goldman sachs, morgan stanley. interesting thing about bank of america they'll write off about $40 billion. right now they presently -- normally they trade around 11 times earnings. they're trading about five times next year's earnings if this analyst is right. by the way, this analyst, just like meredith whitney, a year ago went cautionary on the financials. she said they went to an

and falling behind on fixed income business that goldman sachs has hit out of the park. totally different reaction. had a narrow quarter second loss but building up cash reserves to cover bad loans for key corp. set aside $50 million for losses and raised $1 billion in common equity. i'll erase the circle so you can actually see what they did on the day, up 6.6% also in that grurngs suntrust, they, too, adding to the stress trust needs, adding to the caddie so they can cover future problems. other big focus groups, drug makers, ely, pfizer, raised their profit guidance, eli lilly's profit up 21%. investors want to know what will happen in the revenue in years to come. obviously, what this administration chooses to do in terms of its health care plan will play into that. drug giant, pfizer, down 19%, sales hurt by higher costs for a purchase but also hurt by the dollar, by the revenue line, stock was up a percent. this was an interesting point and jim cramer talking about it. a lot of companies saying, maybe it's the strong dollar that hit our revenue line. perhaps if the

goldman sachs has paid back the t.a.r.p. money so in some ways they are now outside of the microscope. do they have a right, do they have the right to pay their employees anything they want to pay them? >> here's where goldman sachs runs into trouble. the united states taxpayer bailed out aig with $180 billion. goldman sachs is collecting 100 cents on the dollar from aig to the tune of $13.9 billion. basically taxpayer money going through aig, to goldman sachs. now i want you to think about how we treated general motors and we bankrupted general motors, and we're telling people nobody's getting 100 cents on the dollar, i don't care if you're a shareholder, bondholder -- >> -- we could rewrite the rules. >> that's why you do it. if you're bankrupt i can rewrite the contract law and say no, no, matt. >> by not bankrupting a company like goldman sachs or aig, we have -- do not have the power to rewrite those rules? >> the real question is why is the president, why is our congress, why is our treasury secretary allowing the fina

goldman sachs has been best of breed, been bled out. goldman sachs, j.p. morgan.heck with best of breed until the market has proved itself. >> a lot of people may feel these names are toppy, how do you approach it as an investor? >> if you take a longer look back to 2000, you'll see something very different. what we're focused on is not only best of breed but tech is clearly that. throw health care in that as well. reduce free cash flow that can support dividends and capital spending and all of those things can be found in sectors like technology. we own apple and ibm, those are companies we like. >> best of the breed idea, your idea suggests there's some inefficiency in the market. if i own the lesser company, that is a stock price is overvalued, i won't be competented for the risk i'm taking. is that what you're saying? where does that come from? >> let's make it in easier terms. what you've seen is portfolio managers have had a risk aversion trade on. they don't want to stand up and don't want to place any bets. what they've done is seen the market perform a li

the star of the day here is goldman sachs. earnings report.ll give you all the details in a moment. it's simple right now. goldman sachs closing at the highest levels since september. record fixed income was the key there. record top line overall for them. there's goldman sachs. had to get above 148.36 and they did. highest since.september. jpmorg jpmorgan, bank of america citigroup all reporting later this week. on the earnings front, we see companies beating in the last few days but big cost cutting helping them out. sales and volumes have been anemic. csx is my poster child. most of the big names trading close to the top end of the  trading range. don't kid yours. csx came out and said their volumes were down 21% in the second quarter. the stock is up because the company came out and said that will improve in the third quarter. it will still be down volumes for them still will be down in the double digit area here. mixed messages number two, the retail sales numbers, up. x autos. comps have been very tough because of the rebate checks last

in frankfurt, golan sachs is up another .75%. meantime, johnn & johnsonon rereports cond quarteresults fore the opening b bell today. revenu are expected to op for a thihird straight quartrte j&jrops due to generic competition for two of its drug intel repor results afterr the closing bellll. analysts belelieve the tech bellwether willignal the mand demand fofor i chips is stabilizg. ahead ofof j&j and intel's results, t take look at e stock hehereetting a ce boost for e earnin. meanwhwhile, dl expects pect quarter reresults the rise from the previous arter.r. this is the ory i i was mentioning earlie however, thehe compa sasays prot margins are e likelyue to drop.. dellll says siness c customersre still pututting ourchases of new technology. dell holds its annl analy meetining later today. shares fell more than 3% in after hours day. frankfururt, take look a at shs unr pressure, down by ababout 2%. >>> anand you can getore newsws videos and blologson toy's market-moving nenews at cn.com. >>> ott, still to come on today'program,

goldman sachs is in business to make money. they see ways that they can make more, including taxpayer dollars, of course they're going to do it. i mean, we let them exploit us. if they did. and so -- but the good thing is, hey, they're paying the money back, trying to get out of it, because they realize, holy cow, look at the strings attached and the government is trying to get us to do things we don't want to do. i'm glad they're getting out of it. >> bernard, wouldn't you like to be a shareholder in a company that maximizes profit to the you will mat extent it can? >> absolutely. and the american people don't really understand what goldman is, what it does, and what it represents. and i think that the down side risk going forward is much greater for a company like citigroup than it is for goldman, because much of main street doesn't really understand what goldman does. but they absolutely do understand what citi does, because tens of millions of americans have retail banking relationships with them, credit cards with them, an

goldman sachs doing really well. then you've got a company like cit, teetering, wanting access to some of the federal programs, certainly the fdic programs, the middle market lender unable to access those programs. is there something that doesn't look right here? should cit be saved? the stock was halted going into the close. you know, cit will tell you this is the one lender to the middle market, small and miz cap business. that's the businesses that create jobs. >> cit is a great company but this is not about cit. this is about the tens of thousands of small business borrowers that can't be banked anywhere sxels it's about liquidity to provide credit for those borrowers. so i think there's a systemic issue here. we've expressed that opinion to the administration that look at the systemic risk to those tens of thousands of borrowers. and i think some liquidity is needed here and i think that the government ought to provide it. >> maria, i differ. maria, let's not forget the 8,000 community banks on main street, usa

goldman sachs. >> unbelievable. this web of corruption and who is really running our country. gretchen: sounds like a full circle. people want to tune in tonight at 5:00. thank you very much. gretchen: get the pink socks. a story you will hear here meeting about islamic school with expected terror ties. it wants to expand and officials may give it the go ahead. we will tell you all about it next. >> we told but those campers kicked out of the swim club. the club had a change of heart and asked them back. did the kids accept the invitation? that's next. karl, don't you have friends coming over? yeah, so? it stinks in here! have you smelled this chair? or these curtains? you've gotta wash this whole room! are you kidding? wash it?! let's wash it with febreze! whoa! [ sniffs ] hey mrs. weber. [ sniffs ] hey, it smells nice in here. you know, i like to keep things fresh. helps me concentrate. [ male announcer ] for all the things that you can't wash, wash it with febreze. right now, all over the country, discover card c

yes goldman sachs did go up another 2% or 3%. yes intel did improve and, yes, you started to see more and more of that take place. but the run going into the earnings was so extreme you have to take what the market gives you. the market gave you great runs all week. you got to take some profits.s. wait for the next opportunity. this market, we could be at 900 in the next four days or we could be at 960. the market's giving you a trading opportunity. >> here's the problem. i got to respond. here's the problem with taking profits in this environment. it is the new normal and there is a tremendous amount of capital sitting on the sidelines. asset allocation.n. doing exactly what you're suggesting. wait for the pullback. >> this is not your last chance. there is thinking out there that this is not a new bull market because for a bull market to happen historically you need a change in leadership. who have been our leaders up to now? technology as well as financials the same old leadership group. >> energy, though. >> yeah. >> listen,