barry knapp, thank you. next up, record drought leading to the worst crop conditions in nearly a quarter of a century. now official figures showing it could hit your own investments and your pocket at the grocery store. that plus other break in headlines coming into the cnbc newsroom. i'm kudlow in washington. please stay with us. [ feedback ] attention, well, everyone. you can now try snapshot from progressive free for 30 days. just plug this into your car, and your good driving can save you up to 30%. you could even try it without switching your insurance. why not give it a shot? carry on. now you can test-drive snapshot before you switch. visit progressive.com today. i don't spend money on gasoline. i don't have to use gas. i am probably going to the gas station about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i we

as we get set for alcoa tonight after the bell, barry knapp is head of u.s. and he joins us now. barry frshgs your target at least of 1,330 at the end of this year, you're not looking for too much, are you? >> we're looking for a retest of that earlier early june low through the course of the summer and a rally back through the elections. no, we don't think the net effect will be all that much. but it could be pretty interesting between now and the end of the year. >> any particular area, then, that i might benefit from focusing on in the current period or as far as the rally that you're expecting prior to the election? >> well, the primary catalyst for expecting the correction going all the way back to early march was a deterioration in the growth outlook. another one of those summer recession scares seems reasonably probable. we've been underweight defensives through the entire -- this entire period. if we were to take the numbers and the stocks, not just the numbers down, through the back half of earnings season and the growth numbers will start to stabili

joining us to talk markets is barry knapp, barclay's head of u.s. equity strategy. go with this? we could talk about the u.s. but let's talk about spain and maybe the impact on the u.s., barry. >> sure. first of all, i think that the biggest problem with spain is, as i see it anyway is that the solution that they came up with from a sovereign perspective for spain's budget deficit is that they hiked the vat tax by 3%. clearly looks like an imf type solution but if you think about increasing consumption taxes on the mainstream public in an environment where you have 25% unemployment and 125% debt-to-personal income ratio there's just no way that's going to work and they're going to collect any revenues. the link has not been broken between the sovereign and the banks and spain is in an economic bit of a spiral. now this sort of brings you to the broader question about growth and the impact on the u.s., because really the vortex of this global growth slowdown is obviously spain and italy and until that stabilizes, the net export channel through china is weak. >> barry

listen to what barry knapp had to said yesterday morning. >> at 1301350 there's nothing to do other thanidend paying, you know, defensive sectors, and quite frankly, i think buying puts in front of the next few weeks is probably not a bad idea. >> now, i'm not trying to single out barry, every strategist, even the strategists on wall street who have negative views on the s&p, lower price targets, have been telling people for the last two years to buy high dividend paying stocks. obviously you know what i think about interest rates, carl, and where i think the ten-year is going. high dividend paying stocks has been a great place to be. 50% of the return, i've said this for years, historically in the equity markets has been dividends and distributions reinvested. when i told people that five years ago, nobody cared. when i told people that in 2000, nobody cared. the fact is this, i want to do a little role play. i want to do a little role play, this was a conversation i had last week with a friend of a friend who recently sold a very significant part of his business to private equity. what

to accept what they have lost barry pederson cbs news >>> 2 san rafael teens in aurora with their mother went to one of the midnight screenings at the multiplex. don knapp spoke with the girl's mother tonight about their ordeal. >>> melanie hatchett and of san rafael scene with her daughter's had concerns about going to the midnight showing of the dark night rises but not which you would think >>> i'm sure of the parents would laugh but i was worried about how girls driving in a strange city with a kid driver she couldn't know that they would be at the gas 16 complex number eight next to no. 9 and clause can through the wall. >>> there is a lot of confusion and my girls and our group of 12 kids specifically were convinced there were two shooters because it never occurred to any of us that blahs would come through walls >>> the girls ran added the theater with a wounded young man who performed a selfless act >>> and he waved paramedics and tow them to treat the injured victims he waited a while for an ambulance then the rest of the kids got in their cars and got out of their before the police cordoned off. they got back to the hotel by 1245 he waited in

barry pederson cbs news. >>> san rafael teens in aurora with their mother went to one of the screenings at the same theater, don knapp spoke with the girl's mother. >>> she says the chance zephyr daughters being in that aurora colorado theater at the same time the gunman mounted the assault or smaller than winning the lottery. just one of the many random things that parents cannot protect their children from carrying she had concerns about the girls going to the midnight showing of the movie but not what you might think. >>> i was worried about my girls were driving in a strange city in a car with a kid driver >>> she could not know they would be at the aurora century 16 theater no. 8 and clause would come through the wall. there is speculation there were terrorists and a lot of confusion, our group of 12 kids specifically were convinced there were two shooters because he had never occurred to any of us bulls would come through the walls. >>> the girls ran out of the theater with a load again man who performed a selfless act >>> and he waved the paramedics down and told them to treat the more injured victims so he wa