you look at their guidance. i think it's cheap on a valuation basis. >> if the aspect of that that makes them so interesting -- everybody talks about how do you make coal cleaner? it's the gasification process. that's where eastman chemical say their real numbers -- >> if you really want to make the -- >> a long view of resources, water is a much better play than anything else physical we're talking about. if you're looking for a long-term, cyclical-type play that can last for years. >> looking at the resource names, getting a trade off, what you're thinking, when you look at the underlying commodities during the course of the day, you can tee off what the next trade is going to be. look at preport today. look at actual pricing of copper. the copper futures were under pressure. they appeared to be bottoming out. they led freport higher. you actually were able to buy it around $61.80 early in the day. on the copper reversal and it carried through the rest of the day. >> now the dollar led in two different areas. n

they're telling you they fixed it. >> looking back doesn't make you money. looking forward does.. tomorrow the fomc. their biggest concern is going to be commercial real estate. that's what they'll talk about. they'll probably talk about how to support that sector. when you look at going forward the expectations for growth in the second half of 2009 have been elevated higher, 3%. but if you look in 2010, the trend for growth will actually go down. why is that? because now what you're seeing is growth based on inventory, restocking in the absence of consumer participation. there's no consumer participation right now. as you move into 2010 the question becomes, when do consumers spend again? there's no confidence they will do it. this will peter out as you move forward in 2010. >> a little conservative move today i thought by goldman sachs when they put merk on their conviction buy list and lilly i think is a little in front of themselves and they are also very nervous about the patten issues over lilly. i like what goldman sachs is doing moving into some of the pharmaceutical names

you look for big short. those name are making those incredible runs to the upside so be careful. >> all right. we'll touch back with you later on for the trade ahead of the job support tomorrow. so you stay cool there. >> no promises. somebody left me a big pot of tea here. >> all right. we'll check back with you later on. moving on now. the power trade. foster wheeler earnings, top estimates, what do you do here with these runoffs? >> it is scary but i think i look at somebody like foster wheeler, we liked them yesterday going in. >> you flag us on the halftime. >> whatever. i've left the engineering name for a long time. when you look at these name and the potential they've got, they had a great backlog they put in. when you look at the poe tech interesting valuation levels now, and this is with no stimulus. virtually no stimulus spending out there. is and yet these stocks continue to move to the upside. there's strength there. they're probably still cheaper than where they're really traiting. i know they'v

you look at health -- you look at health care, as i talked about. you look at entitlements. you look at the presence of substantial loopholes that, for example, enable some companies to hide income overseas and not pay taxes on it to the united states and actually get an economic incentive to move some of their production abroad. you look at those kinds of fundamental issues. and that's what we already started doing with great emphasis in health care. that's why, as we move towards the president's 2011 budget, we're going to be doing, you know, in a more systematic way. but we are going to recognize that the budget deficit is absolutely crucial. but so is the deficit in what this country's done in education. so is deficit in what this country's done in infrastructure. there are a number of deficits that we have to address if p we are going to compete going forward, and the president is committed to doing -- to addressing all of those deficits. >> you said in a speech recently that there's a danger -- this is what you said july 17th. it's difficult, because there's a lot of o

what are the main catalysts that you look at? eens in terms of investing right now. >> well, right now i guess probably what i'm looking at is we're seeing also the momentum, the so-called meltup trade. but the other thing i'm going to be really looking at is sustainability. this is going to become an increasing battle of earnings versus economic. so right now the key things underlying that is really employment, retail sales, the consumer, and also a little bit of the foreclosure issue. right now you have to realize our economy, i mean, everything is based 70% on the consumer. and if he continues to lock up and draw down, then you're going to have some problems, or at least a hiccup in the near term. and that's going to be something -- >> you're a bear looking to get out of your bull suit, it sounds like. >> no, right now i'm short-term bullish because i recognize the momentum in the market. >> don't get in front of that trade. >> as john maynard keynes said, the market can remain irrational as long as you can remain solvent. you

you get? probably a more realistic look. i'm not saying i believe the cpi data, but let's be real here, as long as they auctions keep going like a hot knife through butter, you know there's a lot of auctions ahead. >> you talk about that indecent, the guise was on the tv, he said, yeah, it's my index, but we could have another leg down. nobody wants to listen to him, but some interesting comments out of him. again, i think people are getting too complacent, exuberant, but i think we're ahead of ourselves. >> the minister of china said the same thing today. >> i think it translates into a wealth effect. consumers can see housing prices, their existing housing prices have bottomed, that wealth effect carries through. look today at the consumer sector. take a look at bed, bath and beyond, best buy, targets, those were the names today, williams sono sonoma, sears was strong as well. pedro and john got into it last night, but it's the cause of this wealth effect that consumers are feelings and it translates into consumer confidenc

you talked about it earlier. look at the slew of retail stocks that are rallying and in particular you mentioned it earlier. crocks at a new interday high and the company saying they will return to profitability. hanson's shares of juice. the share gains for this stuff. this is the monster energy drink and way too much caffeine for me. i will stick with my iced grandee skim one splenda no whip mocha for starbucks which is getting a 4% jolt. >> so much energy he doesn't need to get one of those. thanks to all three of you. let's talk about this from a more specific trading perspective. traders are looking at the rally. do they believe or not. in the service, services and bob dasani is with us.  history dictates that they lure everybody in. given the euphoria that i am seeing, i am starting to get concerned. there is a few flags. over the last week, insiders have sold over the last week. that's not a short interest. it declined 72% led by 90% in  energy, materials and  financials. that's a contrarian indicator

you get? probably a more realistic look. i'm not saying i believe the cpi data, but that does address it so some extent. as long as these auctions keep going like a hot knife through butter, you know how quick that readjustment can be and there's a lot of auctions ahead. >> we could have another leg down in this whole thing. some interesting comments out of him. again, i think people are getting a little too complacent here and xub rant. i think we're really ahead of ourselves. >> mr. china said the same thing today. >> i think it translates into a wealth effect for the consumer. they see housing prices, which have now bottomed. that wealth effect carries through to the consumer shares. take a look at bed, bath and beyond, best buy, target, sears was strong as well. pedro and john got into it last night a little. but those are the names and it's because of this wealth effect that consumers are feeling it and it translates into consumer confidence. >> i'll tell you what, joe, i like a lot of the transition we're seeing in many

. >> you look so good. >> do you love it? >> i love it. >> she loved it. >> i love it. >> tell us what you think. hold that mike up. >> you look gorgeous. >> thank you. >> you look so -- >> oh, beautiful. beautiful. tell us about the hair. >> maria has sallow skin. she has yellow highlights in her hair.

so anyone looking at exactly this quarter earnings or even next, what you really have to look at, the psychology of the market, and basically nobody is long-term bullish in talking about a bear market rally, talking about the economy rolling over. you know, one thing you have to do also is that i'm not going out to buy all companies. you have to be selective. when you look at valuation based on cash flow, the market is trading at one of the lowest best ratios of all-time. if you go to the tip of the bell curve and you use stock selection, they threw the baby out with the bath water. the public is scared to death. the psychology is terrible. that's how you make money in the stock market. >> craig, you know, leading indicators in the u.s. are pointing to recovery. storks being one of them. you also saw the story in the paper today, france and germany in recovery in the second quarter. we know china. we know india. i mean, aren't these favorable conditions, mohammed may be right about a short-term pull back. but you look at the global scene, you look at the u.s. scene, really isn't this

when you look at -- and not even just with the economic point of view -- you look at the legal system and how it's set up and how it's put together to keep us in that system. because you go to jail to get rehabilitated, you come out, you have a felony, you can't get a job. you can't even get financial aid if it's a drug felony to go back to school to educate yourself. so, when you look at everything going on in this country, black america is probably 100 steps further back than what we were in the late '60s. >> professor, interestingly enough, i watched you as marc was talking about this, and we should note that much of what he is talking about you talk about in your book, "more than just race: being black and poor in the inner city." this is really not only the crux of the biggest issue the president faces, this economic tsunami, as some call it, but it really is the biggest issue that african-americans face today. >> absolutely. african-american unemployment rates are reaching record levels right now. we don't have the latest figures, but once they come out, it will be quite clear t

it was 80, and it has a look back. you have bank of america going from 4 up to around 18. the amount of profits in the last five months have been absolutely outstanding. what i say about goldman, same type of look in the chart. the positive moving average line, price action looks different, decent, a little bit of a high or topping pattern here. but protect your profits at this point. goldman got above 160, put a stop in at 157, doesn't mean you have to liquidate your whole position, but if the market starts to come off and people start to become skiddish, we'll have a downdraft in a big way, why leave profits on the table? take 30% of that and put a protective spot on it, only if it closes below, take some profits off the table. that will never hurt you. we look at another recommendation that i put out on july 8th. and that was general electric. i recommended buying it at 10.75, i said it would go to 16, it's gotten up to 14.90. stopped short a little bit of my objective, backing and filling, i would put a stop under 13.

you look at the graphic.or all-time earned run average at home all the way back in 1985. lannan right there at 1.91. if he had a great night tonight, he could press mr. gullic sorn. >> looking for win number eight our own john lannan. debbi taylor had a chance to talk with lannan before he gets ready for tonight's start. >> thank you very much. john, the first thing i want to ask you is what is going to begoing through your mind as nick johnson steps to the plate? >> you know, it's going to be a little weird, but i know what i have to do against him. he's a great hitter. going to mix it up a little bit. it will be a challenge. >> he's such a patient hitter and his on-base percentage is incredible. do you enjoy that challenge of facing somebody like that? >> yeah, guys who make contact are guys i like facing because that's what i look for contact. he's very patient and i'm going to run the zone, so i'm going to give him pitches to hit. >> this is such an exclusive lineup. what's the key to containing the flori

take a look at citigroup. you can see citigroup moving forward here throughout the day, over 1 billion shares there as well. finally, second leg of this whole rally occurred when the dollar dropped around 1:30 eastern time. that had a dramatic effect on some of the big commodity names. that helped more everybody forward as well. there's a big drop in the dollar. murphy, you can see a move up in some of the oil names. they have been lagging throughout this week. finally the aerospace maria bengsed boeing they're xpth first flight of the 787 dreamliner by the end of 2009. as a result not only all the aerospace names but the sparts suppliers that are influenced by boeing like goodrich and precision casting had a very nice day. i want to emphasize what good numbers dell had. they have been under pressure but margins have been under pressure for some of these big box makers because the netbooks, the margins are very poor from netbooks. here they are doing very well. great cost control, great execution. >> thank you ver

you. she looked okay in 2-d. we had one week and -- >> only one week? >> and there were four more weeks after that. >> richard, a pleasure to have you. hope you'll come back. >> thanks very much. >> the ceo of imax. >>> coming up next, one of today's most popular trades. why traders are getting defensive in the pits when we go "trading after dark." ♪ ♪ (tucci) only at&t has the best selection of full keyboard phones. like the lg neon, just $29.99 after mail-in rebate. i just want fewer pills and relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!? taking 8 pills a day... and if i take it for 10 days -- that's 80 pills. just 2 aleve can last all day. perfect. choose aleve and you can be taking four times... fewer pills than extra strength tylenol. just 2 aleve have the strength to relieve arthritis pain all day. >>> welcome back to "fast money." we're live in new york city's times square. want to check a check of nvidia. it is rising after hours. it beat the street in turps of its earnings. it raises forecasts for the years. it i

you. she looked okay in 2d. we had one week and -- >> only one week? >> and there were four more weeks after that. >> richard, a pleasure to have you. hope you'll come back. >> thanks very much. >> the ceo of imax. >>> coming up next, one of today's most popular trades. why traders are getting defensive in the pits when we go "trading after dark." oof! i hope he has that insurance. aflac! you really need it these days. how come? well if you're hurt and can't work it pays you cash... yeah to help with everyday bills like gas, the mortgage... ...and groceries. it's like insurance for daily living. so...what's it called? uhhhhh aflaaac!!!! oh yeah! that's it! aflac. we've got you under our wing. a-a-a-aflaaac! most people try to get rid of algae, and we're trying to grow it. the algae are very beautiful. they come in blue or red, golden, green. algae could be converted into biofuels... that we could someday run our cars on. in using algae to form biofuels, we're not competing with the food supply. and they absorb co2, so they help solve the greenhouse prob

you look at this private equity space, what do you see? an improving market market, also some increased m & a activity activity. they're getting actively involved in the advisory role and that lines up well. assets under management, assets are coming back in, these guys have a lot of cash to deploy for deals that are well overdone, but i would say these guys bought a lot of deals and they're still saddled with billions. kkr, silver lake, all these guys also in the news today for tremendous both field flow, kkr and silver lake, a great sale, but still a play i would be careful, even though they have turned the corner. >> there he goes, the killjoy again. >> this started if february, the stock went higher, then started again in front of the earnings, and big man over there was all over that trade. >> we talked about -- why would you bet against them? they basically had the dry powder. they've got $29 billion ready to go into the market. >> and they're looking at financials. >> and they'll be allowed to buy more than they ever have. he also s

when you look at the effectiveness, that's important. you have to make sure that that doesn't limit choice for the health care provider. you and i may respond differently. the provider needs to know the best medications and devices and the best way of treating patients, but they have to be able to make choice for what's best for you or me. the one thing that's important that we have to always remember is that if we want our arms around seattle care, we have to look at wellness and prevention. we have to start going further back in keeping people healthy. >> rather than letting them get sick and treating them. >> the company has done a couple of deals and you bought one out right and you bought a sizable stake in the drugmaker. as we stand here, how much cash do you have and are you going to do more similar deals or get caught up with pfizer and merck? >> there is not a deal that goes down that we are not consulted with or looked at. our way of doing things is to get into an opportunity and something has a lot of headway as opposed to payi

you, captain... ahab. well, it looksyou haven't had a claim in over four years, so you don't have to pay a deductible. that means you saved $500! $500? i could get an electronic fish-finder. that's the spirit. saving you money on boat insurance. now that's progressive. call or click today. >>> welcome back to "fast money." we're live at nasdaq market site in new york city's times square. want to keep you up to date on electronic arts, actually rolling over. we got more commentary from that conference call, the ceo saying he expects profit margins to be down year over year. so there are concerns over margins and he's cautious in that. we'll keep you posted as developments warrant. after july's market rally, certain stocks climbed by double digits. after such big run--up, which green shoots may be weeds in your garden? a portfolio ripe for a pull back here. joining us for "trading after dark" senior options analyst brian overby. brian, great to have you with us. which stocks are you keeping watch on? >> the two stocks i'd

if you look at the side, you can see we are covering at 350. many will see if we get down to those levels. i can't imagine that many traders will be look for reversal. >> i don't think so and part of the problem is that we just -- when you are down at the open, it's hard for the shorts to come in and short immediately. there is not a lot of room to make money. there is less room here today. we were chuckling over this line from the surveys saying the decline in lending stems from falling demand in credit and we are not lending and the people are not qualifying. speaking of delinquencies. that looks at the rate for the receivables and has been improvement. jpmorgan, the great losses and delinquencies showed improvement. the bucket is stabilized and similar situation at american express. delinquencies declined at american express for the 5th straight month. all the talks are down. talking about that on the trading floor. matt at the nasdaq? not catching up with the rest of the market. >> not at all. if you look at the new york stock exchange, it's

you look at who has the longest road to recovery right now? you have to look at the reit space and the home builders, and then you have to break that down even further. i got short this week avalon bay. you get exposure there to apartments in terms of real estate, the reits and then if you look at kbh they have a california tax credit that has basically been exhausted, so the valuations that these names are trading at right now and the challenges moving forward in terms of them needing credit and the availability of credit right now, i think when you look at home builders and you look at reits, you actually want on go short here. >> i agree with joe on that and i would maybe think about the guys that actually do take out the trash. we talk about the rails and the guys that ship stuff. if we believe that this is not a sustainable rally and that the transportation stocks, which usually lead us out and have gone 40% in the last couple of months with rail volume down 18 to 20%, you want to get out of these trades. they are cyclical trades if you th

when you look at those numbers, we have to see those turn. and the market is truly in a turn. >> have you to have a job to buy toasters. you need to have a job to buy cars. i think some people out there might disagree with that nowadays. >> we talked about some of the ideas on the death car sales. but there are ways we can maybe use that in job creation and that's sort of where we need to go for the next level. we have stimulated the economy. now we're at this level. now the next thing is, we've got to see these jobs come back. >> speaking of house and mortgages, new home sales jump 10%. guy? the new number is the lowest number since april of '93 or something ridiculous like that. and split of homes was about 6 1/2 or 7 months, and i think it was 10 months in january. >> right. >> and that's good news. something steve was talking about last night, we talked about on this show, the savings rate continues to go higher in this country. i think that's its own stimulus package. people will wake up and feel better about things. they will buy but don

you look at bank of america, for example. it too started weakening oh, about 2:00, a little after 2:00. and there you go, bank of america ended the day in negative territory. i'm not going to show you all the financial charts. but citigroup, which also 4 h. a mons strous week, also had a very similar chart toward the end of the day. how about the big movers here? stick with the transports because they never really saw the big -- or even a correction in the middle of the day. they stayed strong throughout the day. csx 2% to 8% gains here. transports were the major sector leader this week, whether you were looking at some of the railroads or the truckers like ryder. continental reports did have a secondary. it was weak early on but ended quite strong. for the week another good week here. dow jones industrial average still settling out but up a little more than 2%. 2.3% by my back of the envelope. s&p. nasdaq up 1.1. a lot of strength in those small caps. you see the russell 2000 doing very well. >> in the transports. bob pisani,

regis, i'm not feeling too good right now on your final trade, but if you look at the commodities, if you look at the materials sector, when they are going to continue with an easy monetary policy, it's a

you look at these kind of images and they make you think of everything that came before. it is impossible to look at the casket -- it is impossible not to look at the casket of ted kennedy and not think of everything. think of jfk. think of it joe, sr. and his casket coming over the bridge. and you think of john, jr.. and you think of all of those things at every tragedy the family has been through. and you also think of the man ted became and how it seems appropriate now. it did not always seem that it would end this way, that he would be so distinguished, and have so many people turn out for these events. there is a deep well in of the motion when you see those kind of images. every image you see of the kennedy family evokes something different and something powerful. martha: we were just watching when they put the casket into the hearse. it strikes me. you grow up having this one last kennedy in your life, and it really is the end of an era. now that teddy is gone, it is the end of much of that and what we all grew up with. >> as many times as it has been said, i think

also, if you look at what benmosce was making at his lost job, this is a company in distress. you need a really good guy to come in and turn this company around. we going to come in and pay him way below industry standards and think you're going to get somebody qualified to do this, it's just not going to happen, whether it's fair or not. >> you're exactly right. that's the difficulty. we've got to focus on a situation where taxpayers have essentially taken over an insurance company in aig. and now you've got the policy goals, he wanted not to put a lot of taxpayer money in someone's pocket, be frugal with taxpayer dollars, however, want to get top flight talent that can turn around and get some of that money returned to taxpayers in the long-term. the reality is, there are no good choices as long as the government is in the bailout. in the company. >> yeah. the key is getting the government out. >> are you telling me you can't find a qualified version for $7 million to republican run this company? that's half the industry standard as it is. you're saying basically you have to

keep in mind when you look at where those inventories are. you have to raise the question, really, who needs crude at least right now. we know the international energy agency says demand's going to come back in 2010. but for right now they said for this year it's going to be down. so refiners cutting their runs sharply and earlier than they do. usually this time of year we have more oil and distillate fuel supplies than were expected. that increased this week. and the decline we saw in gasoline supplies wasn't that great, and in fact, it was a lot less than what we saw a year ago. so what has happened to cause this rally in light of this bearish data? really, it is the s&p 500. take a look at that and the chart of oil for today and you can see how they've been trading in tandem. meanwhile, we're also continuing to watch as many traders here on the floor are this hurricane -- not a hurricane yet but the national hurricane center is talking about tropical depression 2, which could become the first named storm of the season. they actually don't e

look here in the u.s. it's amazing how cheap water is when you just look at your own home, compared to heating your homes? do you think that water will start to have a much higher price? >> no, i think it's the company's profitability in the long run are l. be effected by the bigger factor. so given the kind of investment horizon we have 30 years plus and given the broad exposure we have in the market, more than 8,000 holdings we certainly look into that as an issue with that will affect companies revenue stream and operation the way we work if the future. that's why i put more for focus on it now. >> thank you very much. always good to talk to you. lovely got to see your lovely city earlier this summer.r. best to the end of augusto you. the manager of the norwegian sovereign. you heard what he said, not buying u.s. treasuries. >>> just ahead, more on this monday morning market pullback and home ownership turning into a nightmare for millions. is renting really the new american dream? this is "squawk on the street." we're down 175 off the low. still continuing to see down volumes exponentially outpacing up

you, captain... ahab. well, it looksike you haven't had a claim in over four years, so you don't have to pay a deductible. that means you saved $500! $500? i could get an electronic fish-finder. that's the spirit. saving you money on boat insurance. now that's progressive. call or click today. my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. i know when it's the perfect time to change my tires. when it comes to shaving i know when to change my blade. (announcer) gillette fusion's indicator strip fades to white when it may be time to change. fresh blade. better shave. >>> welcome back. we're live at the nasdaq market site in new york city's times square where the market edged away today can the summer rally last through the dog days of august? for the answer we go to our chart center back at cnbc headquarters for some chartology work. greg troccoli

>> why are you looking at me? (announcer) introducing new tums dual action. this tums goes to work in seconds and lasts for hours. all day or night. new tums dual action. bring it on. >>> whatever you think about china, it's america's banker. it sent 150 of its top diplomats to washington this week to check up on its investments and talk about the way forward in the u.s./chinese relationship, outside of this global economic crisis. >> the actions taken by the united states and china have made a very substantial contribution to our collective success so far in blunting the force of this economic recession and beginning to restore confidence. >> but our next guest isn't so confident anything was accomplished. in fact, he's called these meetings one big debutante ball. scott paul is the executive director of the alliance for american manufacturing. welcome to the program. you know, the white house was billing this as the first strategic and economic dialog between the two countries. as we all know, a strategic and economic dialog began under the bush administrati

i think when you look at the hiring cycle, you know, to hire a new federal employee is a much longer cycle than hiring a government contractor on that side. so when you look at maybe a 6-month time frame versus a two-week time frame, a lot of people, that is something that will turn them off right off the bat. in terms of retaining that type of talent it has to do more with someone's preference. salaries are important but when you look at the differences between federal workers and contractors it boils down to things like the type of employer they want, the job security is very important. sal lowers aren't everything. benefits are important. job security and having a feeling of responsible is what people that work for government like. they like that type of thing. they're not necessarily looking for a lot of change. >> let us go to the question of outsourcing, for more than a decade the government has been aggressively outsourcing a lot of intelligence jobs. these are jobs that the government wants to pull back into government service. how are -- how is this going to work out? are th

but you look at fluor, you look at foster wheeler, you look at the shaw group, all of these various names both infrastructure and energy plays, power grid, all of that. you got to like that if you believe anything about some of the numbers out of china. >> rick, would it surprise you in the next couple weeks to see china down 8% to 10% overnight? it wouldn't surprise me at all. what happens if that happens to our stock market, can't be good. what happens to the commodity market? condition the be good. i think that day is coming. i just don't think people are talking about it. >> i think you're right. >> the china tie-in, too, which we were talking about, oil. one reason i don't believe in oil is that the shippers have not been moving at all. these have been boring for weeks and weeks. i don't believe they are consuming it at the rate the market was previously. >> i totally think the difference here that we're talking about is when you look at china, we're not talking about market performance. we are talking about economy and china will grow a double digit going forward. forget the market

you. i think if one group looks stronger it is technology. we're going to go sideways for a couple months here. >> so again, what do you do? you go to cash for sideways in you need up or down to really make money. >> i agree with pete. i think you're going to be in a trading range. in the dow you might be from 9,000 up to like 9,500. but you can make money, start trading. a lot of guys have made a lot of money trading in and out here. >> in this market, and i'm going to throw this out there for the first time, i think we're in a tweener market. >> tweener. >> a tweener. >> let me mark the day and time. >> tweener market. in a tweener market a lot of what you see happen is there are a lot of acquisitions because there are firms that still have money, they're looking at companies that may be in there are group that they can probably get a little cheap because the market -- a lot of guys still have a very positive outlook looking three years out. looking three years out where do i want to be? i want to build up my business, and if i can do that b

you have to look after the consumer. you have to do it on a sensible basis.d of course in the u.k. we've had this new constellation between the treasury, the bank of england and the ssa. and for whatever reason it hasn't worked well and that needs to be changed. and there's a lot of work being put in now and a lot of people have different viewss too which way to fix it. we have to get it right. >> take me and just inside of, when are you sitting at your office in london and are you on the phone with people around the world and are you sitting there with your principal advisors and you look out and say, okay, what is our assessment of where the world is going. >> well, for us, and i'm talking narrowly about our own business, number one market in the world is the united states. our number two market is the u.k. and our number three market interestingly enough is canada. and i don't see --. >> rose: where is china. >> well, china is a long way down the line. but you know, in 5 years. >> rose: if you look at wealthy individuals and wealthy corporations as -- >> n

if you want to dig a little deeper, look at some companies you think might do well if we have some inflation when we look out two, three years from now. probably not consumer durables and consumer cyclicals. you might look at things that will hold up better in an inflationary environment. >>> coming up next, madoff's right-hand man, and how many other people helped pull off the crime of the century? >>> and the place where wall street suspects another madoff might be hiding. or just one brita filter. ( drop plinks ) brita-- better for the environment and your wallet. the $100 cream. flabbergasted when we creamed the $700 cream! for under $30 regenerist micro-sculpting cream hydrates better than 32 of the world's most expensive creams. fantastic. phenomenal. regenerist. >>> welcome back to "fast money." we're live at the nasdaq marketsite in times square. i want you to alert you to a fast flash. the stock has had some pretty unbelievable move lately. 20% in the last week, 85% gain in just the last month. the options market certainly has been pricing this one. >> they just started buying all o

because you look at that and say that is going to taste good, i want that. d it is going to taste good in the short run but you want they have to want something more. >> i am a general internist and i've been laid to ask this question for a long time. i face this every day. diet and exercise. and i figure that we are hardwired to like sugar, fat and salt. sugar in the fourth, when we evolve, there wasn't very much food. we had to live in a situation of semi- starvation. sugar was the fastest form of energy. that was the most efficient form of energy and salt was essential to life. and that is where it comes from and that is why it is so fixed. >> the very stimuli that trigger receptors in the oral centuries in the mouth, and they are linked directly to the thalamus to the reward centers of the brain. that is why they are so powerful. drugs, the kind of drugs where talking about, they go through the bloodstream, and they go to the specific receptors. but the real pathways that we are talking about, the learning memory, motivation and habit circuits of the brai

you. how are the futures looking sfp. >> good to see you, too, christine. yesterday all of the major indices closed at highs not seen since last fall. right now, we've got dow futures about 33 points or so below fair value. we're going to be hearing from dow component this afternoon proctor & gamble, i believe. kraft foods is the one reporting this afternoon after the close. ahead of the open, we'll be hearing from archer daniels so we'll get a little bit of a situation of what's going auto in the food sector. taking a look at the bund yields, we had all that great data yesterday. we've got the ten-year bund pretty much where it's been the last 24 hours or so at 3.33%. u.s. yields here moved fairly high yesterday as we saw a bigger appetite for risk and a lot of folks moved out of the bond fixed income market. we've got the ten-year notoriety now at 3.63% and gold at the moment not attracting too much of a bid, either, with a lot of folks continuing to have that appetite for risk. credit teen. >> bertha, joining us now for market strategy, we have christian

and if you take a look at the breadth in the group, 26 of 28 members were higher. d even if you back it back to the trough of the market in march, they're the second best performers with a 68% gain second only to the financials, up more than 100% during that period of time. the problem is they just can't move the markets. but that only matters on the big picture, but it does matter. materials as a leadership group is a loser of a proposition because they just can't move the market. they account for 3 1/2% of the s&p 500. their weighting in terms of a sector ranks them ninth out of ten. alcoa, for example, in the dow, the second best performer today only 1%, has the smallest market cap and the lowest share price. there you have it. there's the commod squad. other stuff we can tell you about on a day when -- >> you are so good at all those. i love that. the commod squad. >> i'm on commission. >> commodity prices taking another run at record levels. speaking of the commod squad. sugar is trading near a 28-year peak. copper's at a ten-month high, nickel touched its high

yet you have the financials now all climbing. everything that looked bad that you didn't want to own is all going through the roof. it looks like the banking index and financials are going to pull this market up once again today. >> the big question is, is it too late to get on board? >> i'll tell you, every day you go up a little farther you get more and more dangerous to jump in here. i've been expecting a pullback but i've been run over the last week and a half waiting for that to happen. you can't fight the momentum. you have to wait and see the clear indication that things are going to level out and roll over before you jump in. might be a tiny bit of upside left here. >> tiny bit? >> tiny bit. >> fair -- >> look how far we've come in such a short period of time. >> i agree. up -- >> the industry is 40%, 50%. >> 2800 dow points? >> yeah. >> all right. thank you very much, warren. >> my pleasure. >> back up stairs to erin. >> thank you. >>> up next, cisco systems, chairman and ceo john chambers is going to join us to talk about revenue this quarter

you look at this private equity space, what do you see? improving market, you also see some increased m & a activity and if you look specifically at blackstone, they're figuring out what it is they want to do in terms of modelling their business. they're getting actively involved in the advisory role and that lines up well for the entire space going forward. >> the whole space looks forward, hedge funds are up 12% this year, assets are coming back in, these guys have a lot of cash to deploy to deals well overdone. but i will say, these guys bought a lot of deals and still saddled with billions of dollars. not just blackstone, all of these guys also in the news today for tremendous both deal flow, kkr and silver lake, a great sale, you know, of the semiconductor designer, but it's still a place i'd be careful even though they have turned the corner. >> there he goes the kill-joy again. >> blackstone has been signalling this, this started back in february, the stock went higher. >> and the big man down there was all over that trade, buddy. >

if you want to dig a little deeper, look at some companies you think might do well if we have some inflation when we look out two, three years from now. consumer cyclicals, you might look at things that hold up better in an inflationary environment. >>> coming up next, madoff's right-hand man, and how many other people helped pull off the crime of the century? >>> welcome back to "fast money." we're live at the nasdaq marketsite in times square. >>> hartford financial hitting a nine-month high today. the stock's had proet pretty unbelievable gains in just the last month. the options market certainly has been pricing. >> just a couple of days ago last week they came in buying the august 0 call. stock went from $14 to $16. now it is $20. these guys have didn't dead-on. no one's chased any higher. >> hartford financial? we've been all over this stock. we talk about next year they'll be earning about $4 a share. you go back to april when they took guidance from $6 a share down to zero, one has to believe that pass probably the trough for these guys. don't think it is going to $33. i think it is

you look at all the brands they love. cadillac. the iphone is that in japan. tatus item that many folks can't afford. they buy their minutes, you know, rather than all they can eat like in the united states. they buy packages. i think they'll afford it. i think it's another chance for that app store to grow dramatically, which is already a $2.5 billion business annually. >> it's a better way to play than a dell or -- >> jacobs' comments, i think he was on with maria, out of qualcomm.. that's a tangential way to play things as well. if you think this tape -- listen, if you're bearish and you think this tape is going down, apple will go down faster than the overall tape. if you're bullish than the apple stock you want to own here. that's what it comes down to to me. now no man's land here, that's the way the trade sets up for me. >> talking the tape today, bank shares the sector closing out a choppy week, citigroup higher by 11%. interesting considering that analyst note by got saying essentially that citigroup, aig, fanny mac, freddie mac, headed to zero. >> you

angie, are you finding the same thing? >> we looked into the abortion issue and a committee in congress took up the toish try and craft a compromise that they called abortion neutral. and the idea here is that if you would like abortion services covered, you would selects that plan, but you would also, if you didn't like abortion, you would have plans without that option and you could select that one. now, does that satisfy everybody? i don't think so. but their goal is abortion neutral. >> i want to get to at lot of you, your viewer question, we'll post links to everything we're talking about here after the show, 5:00, so you'll be able to see the fact checks on these issues. a question from jean, we gut a similar question from a lot of people. will the current health care infrastructure be overwhelmed. a lot of people are hearing that millions of people will be uninsured. as it is, you wait in the doctor's office sometimes for an hour. when you looked at this in politifact, is there any the infrastructure to handle all these people s