craig, welcome back to nbr. >> the markets welcomed today's bernanke bernank, but you say ps shouldn't matter to investors. what do you think? >> people focused on washington, worried about things, debates and uncertainty, and they're missing the stock market. in terms of the fed chairman, he will inherited quite a crisis a year ago, and i thought he handled it very well. so i think th market likes stability and we're fine with this reappointment. >> paul: politics is fine with investing? >> yes. people are debating issues that might have consequences three, four years from now. the market doesn't look out that far. >> paul: six months or so. >> definitely. >> paul: what are you seeing in the markets right now? >> broad market's up 53% from its low in march. we think it's a sensible rally. a very typical economic recovery anticipation rally. >> paul: but overdone? >> no. when it started, we saw stocks as 45% below fair value. we still see them as 10% below fair value. we think this can continue. >> paul: other bullish factors? >> corporate bond yields are dropping. that's n talked abou

bernanke has earned it. his fearless and unflappable tenure by having to navigate the worst economic crisis in modern history. a "wall street journal" survey of economists finds broad support for letting bernanke keep his job. wall street hates uncertainty and wall street backs bernanke. so what's the problem? the problem is bernanke was appointed by president george w. bush and president obama might instead appoint a political pal to replace bernanke as chairman of the federal reserve. that pal is lawrence summers, a key white house adviser and the abrasive and high-handed former president of harvard university. now reports are that summers has sparked the ire of white house colleagues for grandstanding in self-interests. i heard summers speak at an economic conference in washington some months ago and this gentleman sounds more like an enemy of capitalism. not a hero of it. message to president obama. spark a fall rally in the stock market by declaring it now. ben is in. bernanke gets a second term as fed chairman. so how would wall street react it if obama reappointed bernanke now? let's ask our real deal bulls and bears. our bulls, joe miller, chief strategist at wall street capital, bill smeade, ceo, and jay of alcott capital, and our lone bear, al, assistant la

bernanke term. ben bernanke thinks economic growth causes inflation. the reagan '80s and clinton '90s discredited it. bernanke thinks if too many people are working that will cause inflation. this will be problematic for the obama administration and average american worker. if the economy does eventually take off, the bernanke fed will get in the way and try to use rate machinations and try to slow it down. that is the policy ben bernanke follows. >>> and at jackson hole, at the fed's meeting, there is a lot of talk about fed's mistake in what, 1937, 1938 recession, the fed raised reserve requirements effectively draining reserves and money from the xhicheconomy. that caused a recovery turning into another recession during the terrible 1930s. do you think bernanke is focused on that. he is a great depression historian. do you think that will slow him down towards any snugging up or withdrawal of money in reserves? >> i think that knowing the fed can easily make a big mistake is going to have him proceed with caution and working with markets by communicating with them on exactly what his intentions are. i woul

that is very hard to do, so bernanke is in a good position to take on congress when they want to spend and bernanke says deface blow up." the point that he appointed bernanke-- ben bernanke says "slow up." neil: ben bernanke is looking to be reappointed, and that was then and this is now. thank you very much. meanwhile, these massive deficit numbers are the reason we need a $1 trillion cut-care plan, maybe more? we will debate that -- why we need a $1 trillion health-care plan, maybe more? reasons why ken is on a crusade. the co-founder of home depot and corporate legends here and on the year. -- and corporate legend. if you're like a lot of people, you have high blood pressure... and you have high cholesterol. you've taken steps to try and lower both your numbers. but how close are you to your goals? there may be more you can do. only caduet combines two proven medicines... in a single pill to significantly lower... high blood pressure and high cholesterol. in a clinical study of patients... with slightly elevated blood pressure and cholesterol caduet helped 48% reach both goals in just 4 weeks. caduet is one of many treatment options, in addition to diet

bernanke 12 russia' shauna services his first year at harvard and actually took him to brooklyn for a rosh hashan dinner. bernanke told ms. parents avoids been upset that ken manning found more meaning in judaism then he did. but it turn. alrightor both of them, so bernanke goes to harvard, gets a ph.d. in economics at mit. he is a shy introverted guy, a fan of basebal statistics which seems to be a habit of central bankers. alan greenspan has the same fascination, and he becomes the economic equivalent of a paleontologist because he spends his academic career trying to figure out how wast that otherwise smart people at the federal reserve in the 20's and 30's did such a lousy job and let this to the great depression? and, it was a fascinating, intellectual steady which he thought not much relevance to today. fastforward a little bit into february of 2006, bernanke succeeds alan greenspan that the federal reserve, when he is sworn in. george bush comes to the fed for thswearing in in describes ellen greenspan que accurately as a rock star, which he was at the time. sort of amazing how quickly things have changed. and ben bernanke comes to the fed convinced that his mission is t follkw alanreenspan's policies but to have a somewhat different style. he wan

bernanke. let's talk about bernanke. bernanke supervised -- people blame greenspan. e not seen what bernanke did with his great moderation. he supervised the build up of hidden risk in the system. financial derivatives, all that, he supervised. he completely ignored it, okay, when some people, including nouriel were warning him. he completely ignored it, doesn't understand the mechanism. bernanke belongs to a school of economics that's not in sync -- probably never in sync with anything but not in sync with a complex system. so he did that. the problem with the current administration warning the feds who got us here, giving more power to the fed and increasing dependence on the fed, to me is a huge mistake. you're like rewarding failure. we are -- by having bernanke there, you're rewarding-e ½010, okay, you have a bigger tax break for those who make mistakes are rewarded, those who did okay are penalized. is this capitalism or not? finally they are rewarding the bankers. the bankers are playing a larger role than they did before, the bangers are playing a bigger role

bernanke supported risky asset purchases. >> he shouldn't have done that. >> if he didn't, where we would be? >> look, we would be trillions of dollars less in debt. we've dug ourselves into a deerp hole under ben bernanke. ben bernanke's policies have helped prevent the economy from correcting the imbalances that led to the problem. we need less consumer spending dramatically. we need less borrowing. we need to make more things, save our money. the government is undermining that progress. we need to allow the government to shrink. by buying all this government debt, by keeping interest rates low he's let congress off the hook. instead of contracting government spending, he's monetized it all. he's made it possible for the government to expand. he should be reining in the government. he should be taken away their punch bowl, he should be aggressively maintaining sound money and higher interest rates and forcing the government to cut spending and reining in all these excesses. >> peter, always good to have your insight. of europa civcific capital. what do you think? >> i agree something had to be done. we were on the precipice of an absolute financial crash. think a lot of what bernanke did made sense to me. i do think

bernanke as fed chief. stocks climbed on the news with investors praising bernanke for unlocking credit and stabilizing the financial market. >> i give him an a because he did save the country. we'll never know where we would be if it wasn't for bernanke. >> reporter: bernanke wasn't exactly a hero here on wall street. at the height of the meltdown, he took heat for letting layman brothers fail and for some of his most unconventional lending programs. >> we have involved as circumstances demands, but our objective is constant. >> some of bernanke's critics on capitol hill say he may have saved wall street, but not the millions who lost their homes to foreclosure. economists say his second term could be just as rocky as the first. >> as mr. bernanke looks to withdraw the liquidity, we are going to see mortgage rates rise, rates on credit cards rise and this will not sit well with the public or the white house. >> bernanke is expected to face a grueling hearing before the senate likely signs off on another four years. alexis, cbs news, wall street. >>> the housing market has turned another corner. for the first time in three years, home prices are rising. a closely watched home price index rose nearly 3% from the first quarter of this y

bernanke will be at the president's side this morning as the president makes the announcement from martha's vineyard. the president is expected to say, with bold action and outside-the-box thinking, bernanke put the brakes on the financial free-fall. bernanke's term doesn't expire for another five months. there was no need for immediate action. but a white house source says the president believes that consistency is crucial. bernanke's a republican that was appointed by president bush. but he's earned widespread respect on both sides of the aisle. bernanke is expected to win easy approval in the senate. jeremy and vinita? >> we mentioned the long-term impact of this announcement. do we know how the stock markets are likely to react on this news? >> reporter: i wouldn't expect a market rally on this news. wall street has been pushing for bernanke's term. they like consisty, too. in a recent poll, 70% of market professionals said they expected bernanke to be reappointed. >>> there could be criminal charges in the death of michael jackson. court records saw the singer died from a lethal amount of the powerful anesthetic, propofol. that was only one of the many doctorings given to jackson in his final hours. here's mike von fremd. >> reporter: j

bernanke. >> ben bernanke sent that one in. >> said he should be played by sean conry. >> don't get me wrong, mr. bernankehe's handsome but george clooney is another -- >> we'll show you more of these thoughts and our staff's thoughts at the end of the hour on power lunch. the september issues of the fashion magazines, this was vogue, the glossy glam imagines this year are skinnier. what does it say about the economy and the magazine business? we'll tell you coming up. >>> we are up 91 points on the dow at 9309.24. the s&p is at 998 and change. so a significant move to the upside, almost a full percentage movement. merck is the biggest, up 3 1/3%. what are the september fashion magazines telling us about the state of the economy? this year it looks like the unfashionably skinny issues sum up the recession. the key thing to look at is that. a couple of years ago it was this it thick. how can they keep luxury retailers from adding up the digital ad spending. peter is strategic consultant for the magazine industry. good to see you, milton, i'll start with you. vogue is thinner this year. is that because of t

bernanks ithere. bernanke is speaking this conference, and investors will be keeping tabs on how bernanke and the fed plan to mop up excess liquidity when necessary after fighting the world's financial system with trillions of dollars to save the banks from disaster last fall. and ahead of his remarks, let's take a look at stocks index futures right now, little changed this friday morning. and that's business news. live in new york, i'm linda bell reporting for abc 7 news. doug and greta, back to you. >> linda, thank you very much. it's now 5:26. we've got a very toasty and humid 78 degrees here in rosslyn. the news continues with "good morning washington" at 5:30. >> still ahead in our next half-hour, big headaches for local drivers, why a shortage at the d.m.v. is turning into long lines and short tempers. >> and today we are talking about a cold front coming down the pike, some strong storms could usher in cooler weather, but when does it arrive? "good morning washington" continues in a moment. hey smart, how? well, funny you should ask. you see, after i book 10 nights, i get a free one. say i spe

bernanke to a second term. bernanke, we think, will, in fact, join him for the event. according to the text of his remarks, he'll say the man next to me, ben bernanke, has led the fed through one of the worst financial crisis that this world has ever faced. bernanke dealt with the crisis in his words with full action and outside the box thinking that has helped put the breaks on an economic free fall. the president will defend bernanke's actions as steps of necessity, not choice, taking together all of these steps that brought our economy back from the brink. they are working. we have steve leisman, i believe, calling in from his vacation, steve. how much of a surprise is it to you, especially from the fact that it comes earlier than we expected sdmrp good morning, carl. i don't know how much of a surprise we're in. he said, you know what? it's august. there's no new information of real substance that's going to come between now and january when bernanke's term is up. remove the uncertainty and do it now, jacob franco called for as well as several other people who said, let's just remove the uncertainty. so i think one of the things oh bam in gets

bernanke. the president and bernanke appeared at a school this morning. he said he was reappointed bernanke when the fed chair's term is skecheduled to end at t end of the year. >> as an expert on the causes of the great depression, i'm sure ben never imagined he would be part of a team responsible for preventing another. because of his background, his temperament, his courage, and his creativity, that's exactly what he's helped to achieve. that's why i'm reappointing him to another term as chairman of the federal reserve. ben approached the financial system on the verge of collapse with calm and wisdom, with bold action and out of the box thinking that has helped put the brakes on our economic freefall. >> for his part bernanke also noted the historic economic challenges that he and the obama administration have been dealing with this year. >> i'd like to express my gratitude to president obama for the confidence he's shown in me with this nomination and for his unwavering support for a strong and independent federal reserve. our objective remains constant, to restore a more stable financi

bernanke to a second turn. >> as circumsnces demanded, but our objective remains constant. to sustain an economic environment. >> president obama interrupted his summer vacation to name and bernanke as the financial officer. he credits bernanke with helping ease the financial crisis. they estimate unemployment is heading for 10% before easing up sometime next year. >>> president obama is hoping a vote of confidence and then bernanke will drop troubling financial news. he interrupted at his vacation to name an bernanke to his second term, as we said. but cuts include a 250 layoffs of state employees and a massive and furlough program. but gov.'s plan gives workers unpaid paydays off -- unpaid days off. >>> there is state funding for road and aid to police and community colleges. that is being cut. >>> consumers to buy new refrigerators, dishwashers, washing machines, and other energy efficient appliances could receive up to $200 in rebates. the program is expected to kick off at october. you do not have the trade in anything to save money. >>> coming up, another setback for the shuttle discovery. and chris brown learned his fate for the attack of his girlfriend, singer rihanna. and video from iraq where a truck bombing is cau

bernanke, our lender of last resort. >> over the past year, the federal reserve has actively used all its powers and authorities to try to help this economy through this difficult time. >> reporter: bernanke even vowed to fight deflation by threatening to drop money from a helicopter if need be. to historian harold james, it was bernanke's of saying: >> we know what we can do to stop deflation, there is something that can be done. we don't need to see those monetary contractions. if the worst comes to the worst you can get into the helicopter and spread the money. >> reporter: just drop it on people? >> right. that's right. >> reporter: the fed never went that far. but it sure began relieving sickly banks of their toxic debts fast, quickly tranfusing vast amounts of money it created - electronic federal reserves - to reflate the financial system, prevent bank runs and bankruptcies. former fed vice-chair alan blinder. >> the fed has had to put hundreds of billions of dollars of excess reserves into the system which in normal times it would not have to do. >> reporter: most abnormal of all, those hundreds of billions, while plausibly shoring up the banks and thus saving them from collapse, didn't actually make it back out into the economy. >> what normally happens, banks get money, but they don't want to sit on the money.

bernanke. bernanke was considered to be a place holder for larry summers by a lot of people inside washington. six months ago we were hearing the politically bernankeou surprised bernanke got the appointment? >> no, i'm not now. i would have been six months ago but the perception is that i don't know if it is the reality that the financial crisis the end of a world scenario we were going to see was prevented because bernanke shoveled all this money into the bank and shoveled all this money into the economy. and, frankly, when the market is 50u7%, and about three, four months, the guy that's perceived to be responsible for it, you don't throw him over the side. >> buchanan, your stocks, mine, my god, they plummeted so much. but now back up -- you are still working here. we are -- one of the positive effects of the crash. we still get you every morning. pat, you can almost go on vacation now because a lot of those bank stocks you kept holding on to have gone up. >> they have come surging back except for the ones that will never come back, joe. >> yeah. >> gone forever. >> yeah. sorry about gm there, pat. >> that's exactly -- gm and a number of others

bernanke's reappointment. bernanke's reappointment was good news but no surprise. let's get your cnbc edge. steve loft, sceo of global investments at federated investors and ben gert at highmark. first reaction to the bernanke thing? >> this is good news. it takes a concern of independence that's a concern of ours for highmark clients off the table t is important that the u.s. federal reserve appear to be independent and is independent i think that takes the issue off the table ands fed can start looking forward to a more critical issue, which will be their exit strategy. >> steve? >> it's a positive i6789 i think it was pretty well flagged, but certainly takes that uncertainty off the table. i agree, it's positive for the markets. >> we got good news for case-shiller. unless you talk to bob schiller, trying to pull the plug on his own good news. what's your view of where we are in this economy? >> we think we're in the middle of a v-shaped recovery. we're looking at housing, jobs, and gdp numbers itself. housing numbers confirms for us that the housing markets is bottoming, that's a pretty important thing. actually the month over month which no one is focusing on. the month over month change in houses pric

bernanke to remain as the chairman of the federal reserve. less than an hour ago, the president announced bernanke's nomination for a second four-year term. bernanke credited with a largely successful response to the nation's financial crisis and the worst recession since the 1930s. >>> google revealed her identity to the world. now blogger rosemary port plans to sue for $15 million over it. port on the right says google did not do enough to protect her identity. she was talking trash about the other woman you see there, model cohen on her anonymous blog "skanks of new york." cohen sued google. >>> dire predictions on the scope of the swine flu. a new government report says as many as 90,000 people could die from the h1n1 flu this fall. that is the worst-case scenario. officials say the vaccine is on track for mid-october, but there will only be around 50 million initial doses available. >>> health care overseas, we will take a look at how it is handled in ireland. dr. sanjay gupta checks out what went right and what went wrong for them. for arthritis pain... in your hands... knees... and back. for little bodies with fevers.. and big bodies on hig

bernanke. as word spread, stocks climbed. investors praised bernanke for unlocking credit and stabilizing the financial market. some of bernanke's critics say he may have saved wall street, but not the millions who lost their homes to foreclosure. the second term could be just as rocky as the first. >> mr. bernanke moves to withdraw the liquidity and the support from financial markets, we are going to see mortgage rates rise. this will not sit well with the public or the white house. >> bernanke is expected to face a grueling hearing before the senate likely signs off on another four years. >>> alexandria named earl cook as his new police chief. he became acting chief last month when the former chief was charged with drunken driving. baker later resigned. cooke is the first african american to hold the top police job in alexandria's history. he has been a member of the city's police department for the past 30 years. >>> work could begin by next month on a wal-mart supercenter near an historic civil war battlefield. the orange county virginia board of supervisors agreed rly this morning. the vote was 4-1. the wal-mart will go up

the news in the past year because they would know who bernanke was. >> it was a crime of opportunity. i don't think they're stalking bernank bernankes watch the replay on conan o'brien's joke about this. hoethy picked it up when they noticed someone was trying to purchase a few companies. >>> i want to talk about a story that shows the signs of the times here. ford has got a little fiesta, very popular in australia, it's going to be launched in the united states next year. and instead of spending thousands and thousands of dollars on a big ad blitz, it's actually tapped 100 bloggers and has given them a ford fiesta for six months. during those six months they have to upload themselves driving the car on youtube and use as many social networking sites as facebook and linked in as possible to spread the word. i think it's going to catch on. >> another way of marketing. >> yes. >> to use as many means of communication as possible. >> the wheel is on the left side. if they bring it here -- >> they there-v to move it. >> to australi tratralians driv- >> we drive on the left. we're opposite of you guys. >> that's interesting. i've spent a

bernanke also warned of "critical challenges". specifically, bernanke said financial firms face "significant losses," businesses and consumers are experiencing difficulty in getting credit, the economic recovery will be "relatively slow," and he expects a gradual recovery in unemployment. bernanke defended the actions taken by the fed during the financial crisis, saying they averted an "imminent collapse" of the financial system. joining us now with more analysis, robert mcteer, former president of the federal reserve bank of dallas and currently distinguished fellow at the national center for policy analysis. nice to see you on the program again. >> thank you, susie, good to be with you. >> susie: is ben bernanke right about the economic outlook? >> well, i hope so. and probably. i think there's a good chance we'll get a positive g.d.p. number for the current quarter, primarily, though, because of inventory rebounds and the cash for clunkers. i'm not real confident that that can be sustained. i think the consumer has real headwinds that he's facing, and if he's going to be doing any saving in the future, consumption's going to be weak for? time. so if we start a recovery, i think it's going to be a weak recovery, and it could be a false start. >> susie: are you saying that you

bernanke, chairman bernanke, excuse me, was a strong, bold decision, bipartisan, and i think it's certainly, by doing it early, took uncertainty out of the market, and i think it was absolutely the right choice. i think he's the right man for the job. i think from -- you know, what's the change with president obama? the one that strikes me, both from a business point of view of running global businesses but also from a personal point of view where most of the last 20 years i've lived outside of the united states, is he has made a material impact on the perception of america and americans by the way he deals with people in other countries around the world. so i think it's been a very, very positive impact he's had on the perception of america and americans abroad. >> we've got paul jacobs the ceo of qualcomm here today. we were talking about western europe and we're seeing somewhat of a slow environment there even if asia looks good and the u.s. is sort of stabilizing. you're also all over the world. what can you tell us about europe? should we be reading into the positive gdp we saw oust france and germany? some people are skeptical about that. what is your view right now? >> i think it's probably surprised most of us. i think the positive industrial production as early as may in both france and germany and then what looks like is gdp growth around 3% going into the third quarter, these numbers are stronger than we were expecting. you know, i do think most of us are pleasantly surprised by that, and we'll have to see how it goes. but you know, on the back of a much stronger recovery in china than probably any of us would have expected in the first half of this year, the way that that's helped the recovery of the stronger asian nations, now continental europe recovering probably a bit more strongly than we would have thought, i think when we look back in the u.s. we'll see sometime around june or july we move to positive growth in the u.s. economy as well. we won't know for sure until we see third quarter figures. but that would be our expectation. >> all right. great to talk with you both. and i know you're getting ready for the tournament. you're looking good on the course. final question here for phil. phil, we talked all the time about business. how would you characterize his golf game? >> he's got a lot of game. he had some good shots, maria. he hit some net birdies for us, and we only lost by two shots, which is a very close margin. it's not like our partners gave us much help, huh? but we had a good day. now, maria, let me ask you this. are you going to be out here this weekend? because we'd like to host you here. >> oh. well, i'm hoping to get there. we'll see about that. i will let you know. but thank you very much. that's a great honor for me. i appreciate that. >> that is a nice way of saying she's busy. thank you, maria. >> believe me, it would be my honor. first time you've caught me off guard. i would love to. thank you very much, both of you gentlemen. have a great tournament. we appreciate you spending the time with us today. >> thanks, maria. >> we'll see you soon. bob diamond, phil mickelson joining us. meantime, qualcomm taking aim at the computer market, taking on intel in the process. ceo paul jacobs is with us, telling us his growth strategy. we'll be right back. some people buy a car based on the deal they get. others by the car of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available on the 2009 is 250. >>> for those people who don't really know exactly how more -- how much more advanced 3g is than 2g, give me a sense of what that means, 3g. >> so it's like going from a slow speed dial-up modem to a high-speed cable modem. you're getting a megabit per second or more on a 3g network, which means the internet comes up much faster, multimedia comes down to your device much faster and all those kinds of things. >> and the big thing is emerging markets in terms of the penetration, right? give me the penetration of smart phones right now. >> so we think in about two years we're going to see 25% of the market be smartphones in terms of shipments. and we're talking right now it's over a billion units a year. so that's a lot of smartphones. >> now, this is largely a consumer product, right? so what can you tell us as far as what the consumer is doing right now? because even though, yeah, i agree this is a huge trend and you've got smartphones in terms of penetration around the world, people aren't spending a lot of money right now, right? >> no, actually we are seeing people buy up. so the trend is you either have developed markets where the smartphones are being purchased or you have emerging markets where very, very inexpensive phones are being purchased for, say, rural china and so you see actually both things happening in the world. what are people doing with it? they're doing things like watching youtube videos, which is actually swamping the carriers' networks with that much data. >> that's the thing. some people feel like there's so much sort of demand and pressure on the network that they're not able to access things like that. i mean, youtube is a big contributor, isn't it? >> yeah, it is. so one of the things we've done is actually build a mobile tv service which uses a different spectrum, it uses broadcasting to get cnbc, for example, down to your cell phone. and that's actually been launched around the united states. >> you've got other uses as well which i find fascinating for the very smart and fast chips. it's not just technology. >> that's right. so we're putting it into all sorts of things. we're putting it into health care. we're putting it into smart grid. phones are going into thermostats. they're going into electric vehicles. so a whole bunch of different applications. because these things need to be networked. >> so does this change your customer base? >> it adds to our customer base. we're working with traditional telecom manufacturers but now we're also working with laptop manufacturers, working with industrial equipment manufacturers, working with car manufacturers. >> so the biggest two trends right now for your company and for the industry, mobility and emerging markets. >> yeah. and i say also this very high-end move to smartphones. >> and we didn't get in the other uses whether it's health care and energy grids. really fascinating. we're going to talk more about that and we're going to bring on the program todd bradley from hewlett-packard to talk a little about that as well. we're going to look within technology as well as health care coming up on the program. up next here on "the closing bell" the telecom sector has greatly underperformed the s&p 500, actually. find out if telecom can dial up a comeback when we come right back. take a look at the year-to-date charts. back in a moment. room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t. >>> time for the "fast money" final call. telecom sector has been underperforming the s&p. is it s. there room for a comeback? is this the time for investors to get in on the group? here with some answers carter worth chief market technician at oppenheimer asset management inc. always great to see you, carter. what are you looking at today? >> sure. obviously, the big debate is the market overall. a very substantial move. and to some extent as we all well know, small cap has outperformed mid-cap and mid-cap has outperformed large. at what point are the laggards, or so-called defensive stocks likely to have some participation? in a very defensive group, telecom, we like it here. one, it's starting to show the early signs of catching up with the market bottoming out formations. but most importantly its underperformance is fairly extreme. s&p up 13%, 14% year to date. the sector down 5% or 6%. you're talking about 2,000 base points of underperformance. and then of course the kicker, these are nice yield instruments in the con tx of fairly low yield environment, which is specifically this. you for the first time in almost 15 years, you have a yield differential of three times that of the s&p 37. >> that's what i was going to say next, you've got a nice dividend yield, not just s&p but treasury when you look at the return. >> just from comparable instruments you're talking about a 6% yield on the sector versus a 2% dividend yield for the s&p. again, charts that are starting to show the signs of bottoming out and a period of such relative underperformance to suggest that this is the time to capture some gains and high beta trades and redeploy back into this part of the market. >> all right. well, we'll look for that. carter, we'll see you on "fast money." thanks so much. we'll see you soon. coming up on "fast money" tonight, rick santelli on the beat going to head to head with bill fleckenstein on how to trade the new bernanke era. plus so, bad they're good. is the rally of low quality stocks a bad sign for the market? rick and the traders are live 5:00 right after "the closing bell." meanwhile, we've got about 20 minutes before the closing bell sounds for the day, the dow jones industrial average down just about ten points. we've got really big moves in a handful of home builders today, off 10% on half nainia, big moves on lennar. also dollar tree. that stock is higher by about 5% right now. nasdaq right now is down by a fraction. we're talking about smartphones and netbooks. the netbook market, smartphone market's red hot right now. what's next in the wireless world? hp executive vice president todd bradley will be with us, joining paul jacobs and myself with more on that. after the bell high yield bonds are up more than 30% on the year. sweet returns. can they keep the outperformance going? we've got some answers. 4:00 p.m. eastern on "closing bell." what do you think? hey, why don't we use our points fr

bernanke to another four-year term. the president is hailing bernanke's actions in this economic crisis. mane while, the latest economic news on our nation's budget deficit is not encouraging. steve handelsman has more from capitol hill. >> reporter: president obama said he's keeping ben bernanke on as federal reserve chairman because bernanke averted disaster. >> been approached the financial system on collapse with calm and wisdom. with bold action and out-of-the-box thinking. >> reporter: some economists agree. >> there's little debate bernanke has done an excellent job of getting us through it. >> reporter: others complain bernanke's bold moves like dropping interest rates to zweer zero came after he let the housing market bubble. >> the captain of the titanic arguing for another command based on how effective he was in getting people into lifeboats. >> reporter: bernanke's current term runs until february. why did president obama interruphis vacation and bring the fed chair to martha's vineyard today? the new ten-year deficit projections are terrible. $9 trillion, according to the white house, that blames not all the new government spending but instead a slow recovery. >> basis of the long-term forecast get worse is that the economic growth assumptions have been worse tha

bernanke has a little bit more freedom to maybe oppose obama? >> i'm not sure he has freedom to oppose obama, but he is going to have to show us that the precrisis ben bernanke doesn't come back. i kind of see it as two bernankes, one where he department with the crisis successfully. arguably, that's where the president has renominated him. but i think the pre-crisis bernanke was a bit of of a failure. now it's his opportunity to show us that he can help stop speculative bubbles. and he is going to have to make some decisions like raising rates, perhaps, before the political environment is ready for it. >> exactly. i mean, dean, doesn't he isn't that what it comes down to is that possibly he could step on the brakes a little bit sooner than maybe the president and the administration want him to, because he's already back in office. >> i don't know if i'm worried iffy going to step on the breaks -- i'm not worried, i'm hoping. >> i think it's an understatement. i think you have the case where the captain of the titanic arguing he should get another command based on how effective he was in getting people into the life boats. ben bernanke got us into this mess in a big way, he's not as responsible as allen greens

bernanke has tried several strategies to keep the financial system operating. we have to go back and look at the historical situation that bernanke found himself in a year or so ago and pumping up the balance sheet this way was actually a wonderful thing. in may, 2007, bernanke said - quote - we see no serious broader spillover to banks or thift institutions from the problems in the subprime market. but just three months later, the fed and bernanke took their first action to try to ease the credit crunch... eventually lowering rates to almost zero and launching a variety of programs with the hope of thawing the frozen financial system. if ben bernanke returns next year as federal reserve chairman in addition to trying to re- ignite the economy he'll be in a leading role to fulfill white house plans to redraw financial regulations. president obama's efforts to bring new rules to finance and help protect consumers would expand the role of the federal reserve. we cannot go back to an economy based on overleveraged banks, inflated profits, and maxed out credit cards. for even as we've taken steps to rescue our financial system and our economy we must now work to rebuild a new foundation for growth and prosperity among the president's proposals that would likely

bernanke for a second term. >> ben bernanke may get another four years to pull the economy back. >> the pace of decline appears to have slowed significantly, economic recovery, president obama will nominate him for a second term this morning, and praise him for his quote bold action and outside the box thinking. the fed chairman pushed u.s. interest rates for to near o 0, but perhaps one of the most memorable was flooding with hundreds of billions in bailout funds. it helped unlock credit and turn back the recession. but for many americans it was a tough pill to swallow. >> state of affairs when we bail bank of america out and they turn around and try to make more money off of us. >> still, he found the nation will likely be comfortable news for many on wall street who worry about who would lead the fed as the economy bounces back. >> bar unanimous bernanke may be a darling on wall vet. congress will have to approve his nomination and they promise some tough questions. chris believes bernanke is the right man for the job but insists he was too slow to act during the early stages of the financial crisis. despite some criticism on capitol hill, bernanke is almost certain to win confirmation but his job won't get any easier, suspect the sluggish economic recovery and some worry it can slip back into recession. cbs news washington. >> speakingover things financial the overseas do not look good. japan -- down more than 83 points, the 1 # 1 french and german are also all down at this hour. >> nasa is playing a waiting game after bad weather scrubs the launch of discovery overnight. nasa is preparing to launch the shuttle i recall tomorrow morning, to bring new equipment to the international space station including the colbert treadmill and turning to sports it was a night for bird watching here and in another state. we spied or yowl fans in th

bernanke. a thief nabbed bernanke's wife's purse at starbucks. what, no lifelock, mr. bernanke?rotect your identity. i love those commercials. >>> don't move. guess what. there's lots more "fast money" coming right up. new anti-aging eye roller. reduces puffiness immediately -- and also helps with lines and wrinkles. not surgery. this is our way to do your eyes. new regenerist anti-aging eye roller. i just gave you some at the restaurant. yea i know. i threw them out. they were old so... old! they are rollover minutes. they are as good as new. ya know not everyone gets to keep their unused minutes. and these days we can't afford to be wasteful. saving minutes... ...saves money. yea. (announcer) only at&t's family talk with rollover saves your family's unused minutes. and saving minutes saves money. for back to school, get the lg neon for $29.99 after mail-in rebate. announcer: you could buy 300 bottles of water. or just one brita filter. ( drop plinks ) brita-- better for the environment >>> on tonight's "trader radar," we look at the stock lighting up screens across wall street

bernanke was met as counterbalance to put good news out there, good economic news because i think that's how the reappointment of bernanke is going to be perceived certainly by the financial markets and, for the most part through congress and for the most part through the economic community. as you said, he credited bernankemy back from the brink. he also said that bernanke helped prevent a second great depression. here is some of what the president had to say. >> an expert on the causes of the great depression, i'm sure ben never imagined that he would be part of a team responsible for preventing another, but because of his background, his temperament, his courage and his creativity, that is exactly what he has helped to achieve. >> another reason the white house did this is to keep continuity with the economic team. that's important and it seems to be sending a positive signal to the markets which another thing the white house wants to do today especially because there are such dim, i guess is the best word to describe it, economic numbers coming poup dylan? >> all right. thank you, ron. >>> is the economy coming out of the woods? at what risk? let's bring in our panel. neil irwin of the "the washington post" and karen finney, a democratic strategist spent plenty of time in the white house, communicatio

bernanke. a thief nabbed bernanke's wife's purse at starbucks. what, no wife lock, mr. bernanke?e commercials. >>> don't move. guess what. there's lots more "fast money" coming right up. >>> on tonight's trader radar, we look at the stock lighting up screens across wall street today. this company's stonewashed jeans were in "back to the future" since then, the company's ads have launched the careers of models like claudia shiffer. i'm peter jacobsen, and i've lost 31 pounds on nutrisystem. dan marino influenced me and he really pushed me to get on nutrisystem. yeah, i'll take credit for peter jacobsen. introducing the all-new nutrisystem for men, flexible new programs personalized to meet your goals. get on the program, eat properly, you're going to lose weight. it's actually easier than you think it might be. that was really good. thanks. i had awesome results and i've kept it off for three years. for a limited time, get an extra three weeks of meals free. that's right, you can get an extra 21 breakfasts, lunches, dinners, desserts, and snacks. that's 105 meals free. that's what

bernanke federal reserve chairman to a serve a second four-year term. this move was expected. the president is taking care of this business while he's on vacation at martha's vineyard. bernanke he says has done a great job leading the fed during one of the worst financial crises ever. he said bernanke'stemperament, courage, and creativity helped prevent another great depression. bernanke's nomination still has to be confirmed by the senate. >>> a prominent anti-war activist wants to make sure president obama doesn't ignore iraq while he's on vacation. cindy sheehan is headed to martha's vineyard to hold a press conference. in 2005 she camped out near the crawford, texas, ranch where president bush spent his summer vacation a long time critic of the bush administration policy, she's begun to criticize president obama saying he doesn't represent real change. she says she will not rest until all u.s. troops leave the country. >>> former vice president dick cheney is criticizing the justice department's decision to investigate the interrogations of terrorism suspects during the bush years. cheney says the interrogators deserve our gratitude. he claims the questioning of suspects led to arrests, prevented more terrorist attacks. basically saved lives. the attorney general launched the pro

bernanke to another four-year term. good evening. i'm jim vance. >> i'm wendy rieger. president obama hailed bernanke's action during the economic crisis and said he is the man for the job. steve handelsman has our report. >> reporter: president obama said he is keeping ben bernanke on as federal reserve chairman because bernanke averted disaster. >> approached financial system on the verge of collapse with calm and wisdom. with bold action and out-of-the-box thinking that helped put the brakes on o economic freefall. >> reporter: some economists axwreed. >> i think there's little debate that bernanke has done an excellent job of getting us threw it. >> reporter: others complain bernanke's bold moves dropping interest rates to zero came after he let the housing bubble burst and wrecked the economy. >> very similar to the captain of titanic arguing for another command based on how effective he was in getting people into lifeboats. >> reporter: bernanke's current term runs until february. why did president obama interrupt his vacation and bring the fed chair to virginia today? the projections are terrible. $9 trillion according to the white house that blames not all the new government spending but instead a slow recovery. >> basis of the long-term forecast getting

bernanke, president obama said renom gateing bernanke helps maintain market stability. he helped to guide the country through one of the most difficult economic times. >> he is an expert on the causes of the great depression. i am sure ben never imagined that he would be part of a team responsible for preventing another. >> bernanke said he will pursue a foundation for growth and stability. analysts say picking bernanke is a safe choice and defense of his economic policies. he was first appointed by george w. bush. >> when it comes to fiscal restraint could congress be playing by a set of different rules. tomorrow's big story tonight. executives in the private sector were secured by u.s. congress for taking bonuses in tough economic times. >> the washington times has a story running tomorrow that cites u.s. congressmen however are handing out perks to a lot of staff. >> the house passed quietly, in may, a change in its own rules, that will allow its top staffers, that make a little over $168,000 a year, to get additional money to pay off their student loans. which amounts to a kind of bonus for them. >> also in the times tomorrow. why the fdic chairman said wall street is in danger of making the same mistake that caused the housing collapse in the first place. >> the industry that can see a boom if this climate c

tony shaking his head. >> i also agree with reappoint ing ben bernanke, larry. >> we shouldn't have all these agreements. although the bernanke -- i don't know, i'm back and forth on that. let me once again put a tout in the private enterprise private person in business who has to make tough decision in jobs to gain profits, profits produce jobs and those produce the consumer income robert reich wants, somebody has to give that business person man or woman, entrepreneur, a little bit of c. robert reich, thank you sew eev much and tony, thank you so much. >>> coming up, the new bull market and talk with chief investment strategist, and want to see if they've changed a view from a somewhat pessimist stick presentation a few weeks back. we will be right back. my name is blake, and i am the chief shoe giver at toms shoes. i operate my entire business from my phone. i need a network with great coverage, because for every pair of shoes that we sell, we give a pair away to a child in need. it would be impossible for me to do this without a network that works around the world. (announcer) more bars in more places. at&t. the best cove

bernanke. if anyone brought us back from the abyss, it was the actions of ben bernanke and the federal reserve. you would like to see obama endorsing better bernanke. in terms of obama, what does he control? he controls the recovery. what letter? what alphabet letter is it going to be? l, u, v, or a w considering -- >> a little "love" from obama. >> obama controls the her of the recovery. >> wow. i mean -- yeah. >> too much -- >> because there's too much dollars being printed. the long and short of this, after we run through the stimulus, i think we have to pay the piper. >> and people don't like change. wall street hates change. all these ideas have been shot down, and as they've being mob centralist, that's why the market is starting to move to the up side. people like the way things are, and the market is moving to the up side. >> you've got to wonder, if this is a sugar high, as john harwood eloquently put it, continues and is a lasting high sustained by something other than sugar, then wall street has to be concerned. that gives him more power and standing to pass policy that is wall street doesn't necessarily like. not to be partisan at all,

ten list, signs you're dealing with a fake ben bernanke. >> he's handsome, but he's not bernanke handsome. am i right, girls? number one sign ben bernanken't change a thing. >> i love the screaming girls. seriously, though, bernanke was one of hundreds of victims of an elaborate fraud ring. they stole nearly $2 million, according to police, and they did it the old-fashioned way in this case. it was ben bernanke's wife. she put her purse on the back of the chair at starbuck's. somebody came and stole it. they used her checkbook, because some people not only have an address but sometimes a phone number. if you can, limit the kind of information you have on your checkbook, and if something like this happens to you, time is what's really important here. call your bank and credit card companies immediately, because i'm sure you've seen some of the stories, natasha. the headaches of trying to deal way theft and your identity -- they can go months or even years trying to fix it. >> trying to buy a house and perfectly great credit and everything, and it was just ruined. thanks, jen. >>> we want to update you on this. firefighters in california

bernanke, to a second term today. the bernanke vote of confidence happened at the same time two government reports projected much higher budget deficits over the next ten years. judy woodruff has our lead story report. >> the man next to me, ben bernanke, has led the fed through one of the worst financial crises that this nation and the world has ever faced. >> reporter: the president picked the middle of his family vacation on martha's vineyard to break the news. >> he's an expert on the causes of the great depression. i'm sure ben never imagined that he would be part of a team responsible for preventing another. but because of his background, his temperament, his courage and creativity, that's exactly what he has helped to achieve. >> i'd like to express my gratitude to president obama for the confidence she's shown in me with this nomination. and for his unwavering support for a strong and independent federal reserve. >> reporter: the white house timing of the announcement deluded the sting from some bad news released today. the president's budget director projected record high deficits for the next decade. of $9 trillion. 2 trillion higher than earlier estimates. meanwhile the congressional budget office projected 7.4 trillion dol

bernanke? -- about the reappointment of ben bernanke? caller: i think the government is taking us on a downhill spiral for this economy and trying to ruin our health care as it stands. i feel that if ben bernankes part of obama's decision-making on his economics platform then it should be rebuked and someone else should come in. we need a turnover of people as much as possible to try to save the economy. host: another story in the business section of ""the new york times." new rules in wiki world will set a hierarchy to edit approval of some of the material on the website. the reporter says that one of the mos10 most popular sites one web -- pat is joining us from long island, good morning. caller: good morning, as far as ben bernanke, let's face it, the best of the worst choices. we are doing what we can with what we have. personally, the person who had the position before him road of book and admitted how the senior bush administration twisted his arm in controlling interest rates despite economic conditions. lowering them in the face of inflation. we do not follow economic rules. we support the chamber of commerce and do with the big industries want us to do despite conditions. so, how can

bernanke and his wife, among hundreds of victims of an elaborate identity fraud ring. it stole $2.1 million from consumers and at least ten financial institutions across the country. for the bernankes it started when anna bernanke's purse was stolen. it contained their joint checking account book. >>> apple is launching a version for mac computers tomorrow. it is a faster version of the processor. it costs $29 for people who have the previous operating system. a family pack will cost you $49. >>> mini cooper is rolling out what could be the cutest car yet. it is a two-seater coup. it will be shown at the tor show next month in frankfurt. >> i like it. >> it we had one that color and it go took premium gas. got rid of that. >>> checking bags will cost you more on u.s. airways. it will cost you $25 to check it at the airport and $20 if you check in on-line. both are hiked up $5 one bag is still free on transatlantic flights and for frequent flyers. u.s. airways operates the most flights out of national airport. >>> new wildfires flair up in california and in virginia that fight over new wal-mart isn't over yet. learn the new strategy by opponents. >>> right now we focus on maryland's weather and traffic. here's how

bernanke cautioned the recovery here in the u.s. will be slow at first, with unemployment falling gradually from its current high levels. the recovery's slow pace due to strains bernanke sees in the financial system, where he says financial institutions face significant additional losses and many businesses and households continue to experience considerable difficulty gaining access to credit. most of bernanke's speech retraced key events of the last year's financial crisis along with the fed, the treasury and other efforts to contain them. efforts have included cutting interest rates and injecting capital into banks. the result, bernanke says-s fears of a financial collapse have receded substantially. in his speech bernanke urging regulatory reform as well. this to avoid repeating the past, saying we must urgently address structural weaknesses in the financial system-n particular in the regulatory framework to ensure that the enormous cost of the past two years will not be borne again. in particular, bernanke says regulatory reform needs to take into account how a single firm or market has the potential to undermine the whole financial system through their role in short-term funding and counterparty relationships. maria, back to you. >> all right, mary, thanks very much. we break down the market action right now with emmanuelle ferrera. portfolio manager at oppenheimer funds. along with barb

. >>> the nation's top money man, fed chairman, ben bernanke, is the victim of identity theft. bernanke's purse was stolen last august. among the items lost, was a joint checkbook the couple used. some responsible have already pleaded guilty in the case. >>> and what would you do if you had a $26 billion budget deficit? well, california's solution to that gigantic fiscal problem is a garage sale. today and tomorrow, it is selling laptops, office chairs, highway patrol cars. even an antique piano. the sale is expected to clear about $1 million. but the government's closets will be less cluttered. >> and a lot more bicycles. >>> of course, you can read more about these stories online at abcnews.com. >>> up next on this friday, lling a void on capitol hill. another kennedy may make a run for senator kennedy's seat. >>> and family stories. ted kennedy's unique bond with those who suffered huge losses >>> welcome back. these are the latest headlines from abc news. authorities in california say convicted sex offender, phillip garrido, admits he kidnapped 11-year-old jaycee lee dugard and held h

bernanke to head the federal reserve for another four years because he, more than anyone else, pulled the economy back from the brink of depression. >> ben bernanke has led the fed through one of the worst financial crises that this nation and the world has ever faced. >> reporter: bernanke's term, though, doesn't end until january. so why, then, did the president suddenly interrupt his vacation to make an early morning announcement? it's all about timing. the president spoke at about 9:00 a.m. half an hour before the markets opened, bernanke's popular on wall street and, as expected, the markets ticked up on the news. but even more important, the president wanted to get out in front of bad economic news also due at 9:0, that's when the white house budget office announced the deficit over the next ten years will be a staggering $9 trillion, up from a previous estimate of $7 trillion. >> unbridled spending, billions upon billions of new programs, a new trillion-dollar health care program. how does this help us become more competitive in a global economy? >> reporter: with the president's approval rating at its lowest level yet, the last thing he needs now is news of skyrocketing deficits on one side of the screen while he plays a relaxing game of golf on the other. so the w

in a move that surprised some, president obama nominated ben bernanke for another four-year term the president hailed bernanke's actions through the downturn, saying he prevented the worst richard he saw the worst crisis since the depression. others argue that was only after he wrecked the economy. >> approached a financial system on the verge of collapse with wisdom, bold action, and out of the box thinking, that has helped put the brakes on our economic freefall. >> the senate still has to confirm the fed share to a second term. tonight, the launch of space shuttle discovery was delayed. >> engineers were in the middle of filling the huge external fuel tank when the countdown stopped. the valve that controls the flow of fuel was something nasa wanted to take no chances on triggered cries you do not want it to get stuck in a position where it is close to those who cannot train the tank that way. >> of 6 could take more time, so nasa will stand down until friday to see if discovery will be safe to fly. >> we will talk about launching thursday night, but the launch attempt is friday morning. >> ironically, on th

. >>> president obama expected to announce he's nominating ben bernanke to a second term as federal reserve chairman. bernanke is expected to be with the president when that announcement is made. >>> auto dealers have stacks of paperwork for the cash for clunkers program. the department's website crashed. the government extended the deadline for paperwork today but warned it could be extended furthe because its website still was having some problems. >>> finally, factory workers in france are stripping down to save their jobs. at least that's their hope anyway. more than 200 will bare it all in hopes of selling enough of these calendars to send the whole crew to their cpany hurricanes in italy. also, they can protest plans to close their plant. they're not totally naked. they are wearing helmets and masks, after all. so disclaimer. >>> the phillies keep winning while the mets keep losing and suffering. plus, new york jets' first rounder mark sanchez gets a warm welcome to the nfl from the baltimore ravens' defense. >> another summer day, another record high in south texas. we'll do it again today. 101 in san

. >>> federal reserve chairman ben bernanke says the american economy is on the verge of recovery. bernanke says economic activity in the united states and around the world seems to be leveling out. the prospects for growth in the near term are good. and there are signs the u.s. housing market may be rebounding quicker than expected. home sales climbed more than 7% in july, the fourth straight monthly increase. foreclosures and other distressed properties are about a third of all transactions last month. >>> i knew abc news polls show half of americans now disapprove of the president's handling of health care. 46% approve. the health and human services secretary was at ohio trying to win support for the plan. she is confident that congress will try to come up with a workable bill after its august recess. >>> official election results will not be released until next week in afghanistan, but the leading campaign is already declaring victory. millions voted in the second presidential election, and despite violence and fear reducing the turnout, the presidential candidate accused incumbent pres

bernanke's taken it upon himself to try to explain that in a clear fashion. the fed's also under assault to some degree by the congress and ben bernanke's not going to go down without a fight in terms of wanting to preserve the fed's independence. so it makes sense in that respect. >> david, do you agree with that? and is there anyone out there that seems like he's even close for the job? for a while everybody was talking about larry summers but since then it seems like ben bernanke has charged out in front. >> well, i think bernanke is out there because he thinks the fed needs some explaining if it's going to preserve its powers and independence to fight inflation in the future. and a side bechbnefit of that it makes it a little easier for the president to reappoint him. he'll never admit that's part of his strategy, but it certainly has that effect. there are alternatives. i agree with mike about the odds. but larry summers is still an alternative. there's also janet yellin, the president of the san francisco fed. i'm sure the president wouldn't mind being the first president to appoint a woman to the job. she's quite competent. roger ferguson, a former fed vice chairman under alan greenspan now with tiaa-cref. alan blinder, another princeton professor, a former fed vice chairman. there are alternatives out there, and i think mike has it exactly right, that if the president had to make a decision right now the upset to the markets of replacing bernanke would ex

he wants ben bernanke to remain as chairman of the federal reserve. bernankehuge role in the auto bailout and $700 billion economic stimulus package. but chairman said his work is not done. >> a student is under arrest after two explosions rock a california high school. it happened yesterday in san mateo. police called to the scene for reports of a student with a gun. when they got there, two pipe bombs had exploded near the library. and eight others were scattered around the school. along with a sword and a chain saw. >> this is the most egregious thing i have seen in my 16 years of being on the bench. >> test drive in kentucky, ends in a deadly crash. police say the driver hit speeds of more than 100 miles an hour. before crashing into another vehicle. killing a woman and her stepfather. the driver is charged two counts of manslaughter in the first degree. now there are questions about whether the salesman, encouraged the driver to drive that fast. >> very pleasant day out there today. but i understand it will change soon. >> chief meteorologist vytas reid j