. >> yeah, maria, a big reorg with ceo steve ballmer announcing restructuring that he hopes will haveny behaving less than a collection of warring thieftons and more like he calls one microsoft. the new structure will have four main engineering divisions. operating systems, app, devices and clouds. but they wouldn't have their own finance departments and p & ls. terry meyerson gets all of windows operating system and key lou who had on-line systems now has microsoft office too. that's a big job. it's been 11 years since microsoft had a restructuring this deep. that's when they went from flat to this system. that system of business units that were vertical. more than a year before we really get a good look into whether this structure is working. two tell-tale signs are the best executives staying and are the new products winning in the marketplace. bill? >> thanks, john. so with the stock near ten-year highs, is it too late to buy into microsoft right now? let's talk about it. talking on the technical side, with rich ross, and on the fundamental side, pat dorcy from investment advisors

microsoft's pc business prompted a reorg last week. more important than this week's results, what companies say about the outlook for the second half, between ebay, ibm and more, investors should get a broad look. for nightly business report, i'm john fort. >>> another twist in the dell saga, t. rowe price said it will not support the proposed buyout by michael dell, saying the deal doesn't reflect the true value of the company. shareholders will vote this thursday on the proposal to take dell private. the stock fell to 13.15 many. >>> tiffany glittering today. the stock will hit $92 a sharks suggesting business will improve as consumers start to feel wealthier. he also said gross margins will get a boost from the falling price of precious metals. shares of tiffany rose more than 3% to $79 and change so far this year, the stock is up 39%. >>> another bright spot today were the solar stocks. china wants to more than quadruple solar powered generating capacity over the next two years. that is designed to ease the glut in solar panel indu

microsoft unveils the big reorg, so i don't think what they have to say as far as the numbers is going think q2 earnings is baked in the cake as far as the numbers are concerned. i think it's all about the commentary for the second half. and when you think about the bernanke dialed back some optimism from a few weeks ago about the u.s. economy here, i think you have to be careful and look at corporate guidance. >> and you're looking at ebay specifically. >> yeah, i think it's been a laggard like ibm has. it's rallied 6.5%. and just like the trade, i think you can look to option trade around earnings to take advantage of the high, implied volatility. i think ebay settles into the mid-55 range or so and probably hangs out there a little bit because i don't think you're going to see a big beat in raise. i think the stock around 56.90, i looked at the july/august 55 put spread cost 50 cents, so i was selling one of the july 55 puts at 70 cents and buying one of the august 55 puts for $1.20. and the stock could consolidate after that earnings event and then maybe you own those august puts f

>> they have the reorg they announced.will stimulate new product demand, but we don't see that in the near term, tablet cannibalization continues to be the issue, away from the pc. surface was going to be their answer. so far it is not come out of the gates, you know, as strong as anyone was expecting, especially the bulls. so i think now it is really about they made their bets on windows 8, made their bets on surface, they have some new products coming out, but in the near term, and it speaks to shares being down today, you don't have the optimism around new products that are going to turn growth around. at least in the next three to six months. >> daniel, thank you very much. daniel ives at fbr capital markets. >>> coming up next, we're staying in the u.s. detroit in dire straits. we examine the fallout from the city filing for the largest municipal bankruptcy in u.s. history. what will it mean for bond holders especially? see you in a second. [ male announcer ] come to the lexus golden opportunity sales event and choose

which is to say, we understand the logic of the reorg they announced last week. that makes sense. it will take time to play out. there will be multiple trains, so to say, that will leave the station. that will drive the business. i don't think they need to grow further inor beganganically. they have done that. we have ascertained, for example, that they will not in all likelihood work on house brand windows phone. relying on partners like nokia and others. >> all right. we will get back to julia. she has more information on microsoft. >> just looking at different divisions here, the windows division, which is crucial for microsoft, we saw a decline significantly from a year ago. ier ago 2.4 billion. this quarter 1.1 billion. operating in windows division did go down. looking at other divisions, servers and tools slightly different in revenue. microsoft business division instead of coming in at 7.4 billion came in at 7.2 billion in revenue. short disappointments in terms of revenue and in terms of operating income there is some segments that did see improvement such as server and t

if they got that, they're going to win a reorg. good to see you, john. >> good to be in the house. >>> the nation's top retailers are out with their latest sales figures and courtney ragan is on the retail beat. hey, court. >> the 5% gain slightly higher than expected, painting a picture of showing at least the beginning of improving consumer spending in the second half of the year. costco slightly outperforming analysts' forecasts with sales at 6 par%, and inflated gasolin prices helped bump up sales. costco's prices, 3.69 a gallon over last year's 3.56. shares are up 2.3%. the retailer had a decent sell-through product at its semi-annual victoria's secret sale which has a positive impact on margins. investors are also falling into gap today. same-store sales after the bell now. experts are a gain of. those chairs are already up ahead of that report. sue? >> let's take a look at shares in today's if, nevertheless, the market on walmart is up better than 1%. thetsd they are not going to build three stores it had planned after the d

i expect there are going to be questions about whether the sales force reorg that yahoo!e having a negative effect. they're trying to move to a category model where someone is in charge of automotive and sells that throughout yahoo! and away from a regional model. some motion thought this could lead to short term pain, maybe some long term gain but questions about whether that might be gumming things up now as all these other changes from desktop to mobile and now from u.s. to international, from premium to nonguaranteed are also happening. >> thanks for the update. still to come they are proving once again they are the best traders in the world. how does goldman sachs stay at the top of its game. a look behind the ceo's doors. gas prices spiking once again. with back to school around the corner, which retailers may get hit the hardest. more fast straight ahead. here at fidelity, we give you the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. i

we've been waiting on a reorg there. we haven't gotten it. we see a tick-up after hours, as well. we'll keep watching both of the companies. back to the market discussion. rick santelli, what's your expectation for the second half? >> i think as the one guest said, i think the interest rates will set the stage, and i think the last couple of hours really shows us that. if you look at an intraday chart of 10s, we've been several basis points in a nonchoppy session for the last several hours. meantime, the stocks lost a lot of their vinegar in that time. so remaining close to 2.5% may be something that will -- investors will have to get used to, as many investors get that sticker shock we've been talking about all day regarding the huge outflows on a month basis with regard to fixed income and fast approaching the size of one month's quantitative easing which is, what, about 85 billion, although that includes 40 billion in mortgages. today, a lot of the data, i didn't think, was particularly good, but the bar's low. they call it goldilocks. hope they haven't forgotten that goldilock

and a little bit because we reorged. and we had to do.that mystifies me. i'm a private client of the bank. i think the single best strategist on wall street, he was recommending impactly the opposite of what the whale did. why not just say, listen, what the heck? we've got the best strategists on the street. why don't you get with the program? >> first of all, i agree with you on michael sambolis. that's number one. the whale was meant to be a risk-reducing thing. it morphed into something which i don't even know what it was. and we already said it was bad strategy, badly done, unjustifiable, we admitted it, we confessed to the whole world. we've gotten rid of most of the risk. we changed it. we don't do it anymore. that's live. >> would you have quit if they separated the chairmanship from the ceo? >> no. i was very clear, i would never leave my company high and dry. i wouldn't have liked it, but i would never would have left the company high and dry. that decision about the chairman and ceo is the board's decision. >> but you care about

>> my gut tells me there is some sort of reorg coming possibly today.or reorganization was about 11 years ago. it got to be a less flat organization, more run by business units, windows, and office, the two primary drivers. that's back when the pc was growing gang busters. broadband stagt to take off. on friday, as a matter of fact, talking with intel's new ceo, he was telling me and a small group of reporters about how he just flattened out their organization trying to get into the loop faster in the age of all the divisions that have no longer reporting into the intel group. it makes sense. here's the other half of the wintel sort of dynamic duo. why not go ahead and buy nokia, effectively working with them so closely together as they have. >> bob runs the xbox division, which is probably the closest thing we have to a preview of what the rest of microsoft might look like because it makes hardware and publishes the games, and it runs the services and it's extremely successful, and windows is not like that. it's still small potatoes. microsoft really d

the whole reorg is around getting them aligned to where the market is going which is clearly away from you get to september analyst day, they will give you more financial guidance and more catalyst for the stock, and fast money left this morning obviously, because of the qe4 disap poi disappointment, but we believe that they are aligning the company, but it is going to take time. they can't flip the switch and be where they want to be. we have always said that the biggest issue is mobility, and they have completely missed the boat. >> brent, now the amount of cash they have approaches the levels in 2003 where there was a special dividend announced. can that theme carry the company through to the stage where they do solve some of the consumer mobile issues? >> yes, you have over 70-plus billion in cash, and we think that the dividend is higher in september. we think that the company is capable of buying a lot more stock back. in addition, we think that they should be using it to fuel more investments in mobile. that is clearly a lot of the activists have been all over ballmer, because o