. >> bertha coombs covering the gupta trial. rajat gupta, forger head of mckinsey found guilty of four counts of conspiracy and securities fraud. that does it for us on "squawk on the street." we'll see you monday. right now time for the fast money halftime report. >>> oh, yeah four hours to go on the trading day. a sea of green on wall street despite the greek re-election. the dow up 64, s&p up 7 points, arguably at a critical level. is it short covering or something more profound. we'll check on oil or gold as well. $83.71 on wti and gold up 6% for the week still making gains. no excuses. the aim of this show over the next hour is to make you money and this is what we're following. greek tragedy number one, we're trading possible outcomes from the big election sunday night and how you should position ahead of the big event. you could get 10% upside on the s&p, coal implosion, has it bottomed yet. a top ten analyst will give us his take on what you should buy now. starbucks cools down. is the momentum coming out of this coffee

for that store and the rest of the news we go to bertha live at cnbc world headquarters. good morning, bertha. >> good morning. we have a number out so far. there's a mixed bag. there are a number of outperformed, capital vo gives an underperform and three neutrals so far this morning, but i'm sure they will come out. google holding its developers today expected to unveil a tablet. that tablet area is an area of convention. a judge issued a temporary injunction banning sales of galaxy's tablet 10.1. apple sought that ban saying they infringed on the design of ipad. they sell a variety of tablets and phones but lags behind apple when it comes to the smartphone market. futures are a little higher. stocks yesterday, it was a roller coaster session. we're up at the end of the day, but started down early on the day. comments from german chancellor angela merkel throwing cold water on the eu new proposed fiscal plan. markets recovered a bit after we got strong home price data. home prices rising in april. in fact, san francisco was biggest areas that saw the biggest increase in

for a check of the markets, we turn to bertha coombs. good morning, bertha. >> hey, good morning. yeah, the futures are pointed to a lower start again this morning. we had a choppy session on monday. the dow extended the losing streak to four straight days on continued worries that the u.s. economy has hit a soft patch. and if it's tuesday, we must be worried about something in europe. the debt crisis in focus today as finance ministers from the world's seven largest economies and the g-7 are holding an emergency conference call on the issue. reports say the biggest worry right now is there could be a run on the banks in spain. we saw something similar already in greece. and european markets are mixed at this hour. asia was higher overnight. this morning we're going to get data on the u.s. services. the dow will start the day at 12,101, the nasdaq did manage to close higher by 12. and starbucks is breaking bread. buying bay bread. you know it well. the chain owns a bakery in san francisco, starbucks is snapping them up for about $100 million. the biggest move outside of coffee. th

bertha combs has been look into the numbers and joins us now. it's evening, have i got that right? >> it is, evening, joe. uh you're wide awake. normally you're sleeping at this time. harry truman may have been the one that coined the phrase do-nothing congress, but the current congress, the 112th has that group beat by a mile. after republicans swept the house with a promise of snauler government, well, congress has delivered on that promise at least when it comes to legislation last year. now, according to the congressional record, the senate and house were in session for about 170 days a piece in the first session of the 112th congress. and they passed 90 laws. compare that to the 110th congress. that was during the second half of the bush administration. they were in for a little bit longer. the house was actually in quite a bit less. about 120 days. they passed 280 laws. in fact, that session of congress was even more productive than the 100th at the end of the reagan administration. they passed about 240 bills into law after being in about 170 days or so. and the first -- the

bertha?rter: now brings the number well over 60 and the biggest conviction yet in terms of a major executive convicted of insider trading of wall street five year tipping. a jury found 63-year-old gupta former board member of goldman sachs guilty of tipping off his colleague, the convicted chief of key information and events in the crisis with goldman sachs. one count of conspiracy which carries five years and three counts of securities fraud. each of two years. two with dp the $5 billion invest omt warren buffett. one count of goldman posting a loss, one month later. what's interesting is jurors never heard a tape of gupta tipping off raj rajaratnam but heard raj rajaratnam on tape talking about having been tipped off. that the defense had fought hard to keep out of this case. the jurors said while it wasn't the key evidence, it was strong corroborating evidence. they believe that the prosecution really laid out the details very well but the defense attorney says he will be appealing on that

bertha? >> hey, melissa.ar smell today, thanks to a note out from goldman, raising the price target from about $36 to $50, saying the new sedans are likely to attract more attention, also the fact there's a big short position in the stock. they say it does make it attractive for more up side from here. they also think $35 calls are attractive, but with today's move, maybe up to pick a price higher than that. david, back over to you. >> we want to zero in on the bank stocks. at the kbw bank index has risen to a one-month high. david katz is at matrix assets advisers, and david, would love to start with you. largely positive on the long term on the banks actually would will be your reaction on the news to getting close to at least the losing trade out of london. an opportunity to buy the stock in. >> if it's true, it's a nice positive surprise, you've had a few better thing, jamie dimon's body language in congress was more and more confident, the fact they're going to size the loss or update on the quarterly re

we'll have another update coming up. >> thank you, bertha. have a good friday. >> it is 4:47 now. i'm sure she'll have a great friday. won't we all. >> of course. >> great weather. >> you didn't hear but she was celebrating. she did a big arsenio hall. he has been feeling it. i don't know if you've been watching the extra show. temperatures today, looking really good. and the reason why is because our natural coolant has been turned back on. jon calls it the fog machine. i call it the the natural air conditioner for the bay area. that's the only caveat today. we're going to see more cloud cover than we did yesterday. a lot more for the first part of the day. overall socked in with fog. you want to keep that in mind. 58 degrees in livermore. 59 in sunnyvale, but the good news is those clouds are serving as a blanket. that's why temperatures are mild to start and why with the full deck of clouds you'll be able to break into up thor 70s and low 80s. at 9:00 you can see the marine lay ser going to move inland from livermore to antioch, mostly cloudy, even drizzle expected. you might u

bertha coombs joins us in manhattan and jones us now., bertha. >> reporter: they did. they got deliberations a little before 10:00 in the morning. yesterday afternoon just after lunch the jury sent back among the substantive notes, they wanted to hear -- see the testimony on a trade on procter & gamble, which is the sixth count in here, a trade that occurred in january of 2009. after that they asked for a clarification on what was the last count that was listed on the verdict sheet on the conspiracy charge. in all mr. gupta faces six counts, one count of conspiracy, one count of fraud. two of those involved trades involving that september 23rd warren buffett $5 billion investment back in 2008 in goldman sachs. one of the things that the prosecutors had told the jurors, that if they believed the testimony of karen eisenberg, the secretary for raj rajarat m rajaratnam, after the goldman sachs board meeting and trades that happened at galleon at the time, then it was over. the fact the jurors went to the last two items on the list seemed to

>> bertha, thank you very much.o you do about health care stocks based on what bertha talked about? do you sell them if you own them? buy new ones? hold the ones you've got? who knows? our two guests. . also joining us. all right. alex, if you don't own health care stocks, are there any you should go out and buy if you believe the individual mandate will be ruled unconstitutional? >> well, if the mandate is unconstitutional, actually it depends on the rest of the provision are allowed to stands. you nailed it on the head when you said the other provision are the big, big uncertainties as well. some folks say there's about 50% chance that the supreme court will essentially decide which provisions think allow to stand and which ones they toss out. if the mandate is tossed out, but the rest of the rules such as guaranteed issue are allowed to stand, then the mcos are definitely losers. >> dave, does it even matter the deliberations of the court are? >> we don't feel it's that important. it seems to us whatever the cour

thank you very much, bertha. let's move to seema moody covering the ruling. >> they're drug firms and agreed to significant price cuts and hope it's offset of individuals of mandate passedment they got that. that's good news for pharma. more americans will more likely take drugs now that they have insurance. however, drug firms continue to pay the 2% fee. if the health care law was overturned analysts were expecting a 1% to 10% increase to earnings as the fee would have been eliminated. analysts at jp morgan writing that since the aspects of the law impacting the group of an expense side already in place which includes the doughnut hole fill and medicaid changes, today's decision doesn't have an impact or near term estimates for pharma. that gives you an idea of why we're not seeing a huge move in the large cap players. not as dramatic as other sectors. most of the large cap drug firms trading lower. >> basically lower the market lower overall. >> exactly. >> thank you very much. and bertha, thanks to you. democr

>> that's my name. >> bertha, right?ah. >> well, we talked to a lot of people today, and one thing's for sure. none of them know what the word birther means. oh, look who's back. >> idiot! [ cheers and applause ] >> jimmy: i want to say congratulations to miley cyrus. miley cyrus, she's only 19 years old, but she just got engaged to actor liam hemsworth, which -- [ applause ] i tell you. isn't that great? i would love to be at the wedding just soik hear the minister say "do you, hannah montana, take thor's brother to be your lawfully wedded husband?" [ laughter ] according to cyrus's insider, she will not wear a veil at the wedding. instead she will wear the traditional family mullet. [ laughter ] here's another tale about some happily married young people. it's newlyweds week on "wheel of fortune." last night there was a couple named mike and sarah. they just got married. they were competing for money and fabulous prizes. and here's what they will be fighting about for the next 50 years. >> i think it will be all right

cnbc's bertha coombs has that story this morning. bertha, good morning. >> hey, good morning.know, the big event today is definitely going to be the supreme court ruling on the affordable care act. that's at 10:00 a.m. markets likely to be a little hesitant before that to see what comes down from the high court, but that's the main event we'll all be watching. we'll be able to see that, obviously, live everywhere. meantime, some competition in the wings for boeing. airbus, the european planemaker, plans to build its first assembly line in the united states on boeing's turf in mobile, alabama. the plan calls for an investment of several million in a plant that could eventually assemble dozens of airbus's popular jets each year. >>> and news corp.'s board of directors unanimously approving to split the company in two. the media conglomerate will be separating from the profitable entertainment operations from its publishing business. the entire process is expected to take about a year, and the board must give final approval to the detailed plan. and guys, a lot of folks say, you

. >>> bertha antunez la rmana deopositor, dijoque el arresto deldisidente, es una manistación de venganza cárcele >>> crimen es qu regaló su bandeja deoma, y el capitán lo asesinó hacedías le habían dado una golpiza. >> también iticó lpostura del gobierno de castroro y a ileana ross lethinen. >>>@ bob menéndez sabeué está pasand porquerl teimonio d antúnez p der la verdad, él le dieron gpes, está en la cárcel. otros cgresistas cubano american dur de la florida, hanicado humanos e liberen al oposor, en miami, florida, mri vallejos, univisión. > oros problemase onomía han tocado losnobel, porque la dación de los 6 premios bajará a 1 millón 100 mil res, es quelos ingresos mensualespor la fortuna de fred nobel sehan redudo por la cris. >>> menos platica. >>> claro. >>> momento de nuestra úim pausa, y al regresar un conductor puso en peligro la vida deuchas otras peonas. >>> estos son rtde s comeario en febook y itter, no se v ya regresamos ♪. >> mire muy bien estas imágenes, peligroso acto,no está des, un hombre con con una sla ma, mientras ahí lo ven, ten suuerpo fra l aut colnd la puerta. >

i'm bertha coombs at the market desk.ng hit this morning on comments from analysts at itg research. they are cutting their forecast for a revenue growth at chipotle. they think these days it's more driven by price increases rather than organic growth and they now see for second quarter, which they will report next month, that same-store sales will be up 7 or 8%. the consensus is for 10% increase. melissa. panera is also hurting on the same type of observation. back to you. >> bertha coombs, thanks so much. let's head to rick santelli in chicago. let's take a look at energy and commodities. rick. >> i'll tell you what, melissa lee, wasn't that long ago in april, we did that natural gas conversion of a ford f-150 truck. so i like nat gas. porter, he's really come around, my guest, and he read an article on monday that helped convert him. we don't agree on everything, you'll hereby the end. porter, what was it about the article, who wrote the article, and how has it brought you into not dark side by the light side, the bette

good morning, bertha. >> hey, good morning, scott. yeah, that $27 is below that initial range they had talked about in terms of their offering stocks at about 3% yesterday and there may be more worries ahead for the social networking giant. the new poll finds that 87% of users have never bought a product or service on ad on facebook. a third say they're spending less time on the site than they did six months ago while only 20% say they're spending more. investors have questioned how facebook will be able to generate revenue from the more than 900 million users, especially on the mobile platform. >>> and think you've seen the end of airline fees? come on, they're never going to let go of those again. the "new york times" says reports now that some u.s. carriers are considering a $25 charge at the gate for carry-on bags that exceed the posted size limit. you know who you are carrying on those big giant bags. alaska airlines is already quietly doing that. passengers from lugging oversized bags on to planes, cutting space from cramped ove

. >>> going to get to bertha coombs. she has breaking news on mr.upta. >> >> reporter: mere yeah, after finishing up with lloyd blankfein's testimony, a they intend to put the defendant on the stand. he says it's highly likely that rajat gupta will take the stand next week. of course, he reserves the right to change his mind. >> bertha coombs, thank you. >>> if regulators were better funded, would they have caught bernie madoff before his ponzi scheme did so much damage to so many people? we're going to do a reality check. stay with us. at u.s. trust, our expertise extends well beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their own legacies. if you made a list of countries from around the world... ...with the best math scores. ...

hi, bertha. >> hi, barbara. if you're planning a stacation your property might rake a little higher. rose in april, according to the latest case schiller index. the two best metro areas san francisco where prices were up from march and washington where prices rose nearly 3%, 2.8%. nationally prices are down about 2% on average from a year ago, but in the washington metro area, prices are up actually more than 1.5% from 2011. and more vacations are feeling better about taking vacation this year, but there is bag split between managers and employees. according to a new survey from career builder, 81% of managers have taken a vacation or planned one this year, that compares to just 25% of nonmanagerial employees. big reason is financial 20% of employees say they just can't afford it. part of the problem is that those workers are searching for vacation deals on a mac. orbitz found that mac uses pay 30% higher rates on hotels than pc users. they tend to steer mac users to pricier hotel deals and according to wall str

let's check in with cnbc's bertha coombs. she joins us live with morn that and the rest of the day's business headlines. high, b hi, bertha. >> now likely thursday. health stocks are down but so is the overall market. under pressure again on european debt worries. the focus today is spain which formally requested a bailout to support its banks which are saddled with massive losses on real estate loan. the big news is that world troubles will hurt or economy. weather congress will find a fix for student loan interest rates by this friday. rates on popular stafford loans are set to doublen about 7% on july 1st. that change will impact some 7 million college and graduate students. lawmakers on both sides of both side of the aisle are anxious to spreenlt the increase. the problem is not being able to come to a budgetary fix. >>> and facebook's ipo six weeks ago was supposed to be the nasdaq's big coup but the ceo admits the arrogance and confidence led to the debacle when they were overwhelmedpy the record volume in the initial p

good morning, bertha. >> the tablet wars continue to heat up. microsoft recently unveiled one of its own. google holding it's annual developers forum in san francisco today, and it's expected to show off a google tablet device. reports say it will be one of the 7-inch screen ones and compete more directly with the amazon kindle than the ipad. it runs on mobile software called jelly bean. i love the name of their software. features include a voice activated assistant similar to apple. yahoo! is adding the popular music streaming service to its site filling the void after it shut down yahoo! music in 2008. spodi p fy has 3 million active users. yahoo! will add an app on spod fi's site. >>> the futures are a touch higher after stocks ended up yesterday. it was a roller coaster session. early on we were down on negative comments through germany, angela merkel threw some cold water on the fiscal plan. markets recoveried after we got data the home prices rose in april. it was up over 3% in terms of prices from march to april. that was the first monthl

. >> for that and the rest of the news before the bell we turn over to bertha coombs. good morning. >> good morning, guys. futures are now pointed to slightly higher open after a down monday on wall street stocks dropping yesterday on continuing worries about the debt crisis in europe. this morning greece has named a new finance minister after the old finance chief resigned due to health reasons just four months into the job. after spain requested a bailout for its banks, now cyprus is the fifth country to ask for more aid. plenty of drama in europe. the dow will start today, the nasdaq at 2836 after falling 56. later today in the u.s. we're going to get home price data. home builder lanar is reportedly in talks with a chinese bank to secure $1.7 billion in capital. the "wall street journal" reporting it would use that money to jump start two projects in the bay area, treasure island and hunters point shipyard. it wants to transform the former naval bases into large scale developments with up to 20,000 homes, retail and office space and a sports arena. if the you are a

michael, david, javier, wolfgang, bertha, and gloria. >> thank you. san francisco tomorrow, which i represent, supports the appeal and the benefits advocated by the proponents. however, we find the proposal short with regard particularly to legal and professional needs that require, as we know in our submission, a cumulative impacts the everything that occurs -- supervisor mar: we're focused on jobs today, and the appeal has not been made yet. >> but the point i am making is the cumulative impact analysis with regard to job creation and preservation, and preservation is essential to a seat or the responsibilities lie with regard to mitigations. this is a complex job. we are a central city, 8 million. these are interrelated job components necessary for sustaining the entire region. while we are dealing with a major employer, all of us are regarding our employment needs. this analysis does not relate to that. the analysis is, in fact, very primitive. second, the law requires that all feasible means be used to analyze the mitigation for job creation and

barry gillson and bertha are charged with shooting and killing 22-year-old calvin snead on june 4th. prosecutors allege that they not only killed snead, but also attempted to do so eight days earlier in north hollywood. they are each being held on $2 million bail. they are scheduled to return to court on monday to set a date for their preliminary hearing. >>> the two men charged in the beating of san francisco giants fan bryan stow pleaded not guilty today. louie sanchez and marvin norwood were arraigned in a courtroom. stow suffered severe brain damage and is permanently disabled. they both face assault and mayhem charges. >>> the city of san jose is rolling out an unusual new program in hopes of curbing gang activity. the announcement comes after a significant increase in gang related violence. of the city's 19 homicides this year, police say 9 have been gang related. now the mayor's gang prevention task force plans to send a team of gang experts to hospitals within 48 hours of any assault that may be gang related. the goal is to convince the injured gang member not to retaliate. >

[unintelligible] practicing circles of frauds and treats so the protest remains the processor for berthaess federal $1 portrait george washington african negro slave owner, racist, chauvinist, inflect 7076 to 2012. this reading has been two minutes. president chiu: next speaker. >> swahili. [speaking swahili] president chiu: thank you. next speaker. >> hello, board of supervisors. i live on scott street and unfortunately, a supervisor is not here right now. i do want to thank the board for some good things i heard today regarding banks and foreclosures. i am current on my home alone, however yesterday, i sent each of you an e-mail at about 5:00 at outlining more information about why i am here and it has the subject line -- public comment, personal, second tuesday, june 5, 2012. i have been denied three times mortgage assistance from bank of america since i lost my job in 2009. i'm currently unemployed and on state disability. i have followed all the steps outlined of the office of housing web page regarding for closures. currently, i'm appealing the last decision made by bank of america

i'm bertha coombs and watching chip stocks, strong in a flat market all day.e are seeing some moves higher there, extending the gains here this afternoon. applied materials among the best performers. hiring a new president, gary dickerson, the former coo over at kla and reporting to chairman and ceo and an upgrade of barclays and good reviews on that hire. brian, back over to you. >> thank you very much. >>> brand new information out on the quality of the new car s of the lines and good news for manufacturers and consumers. phil lebeau is live in chicago with the details. >> we have never seen the quality of vehicles sold in the u.s. at a better level. this really shows what we are talking about. j.d. power tracks the problems. problems down 5% year over year. the bad news, let's get to that first. the biggest problem remains in-car entertainment, communication systems. report shows that has spiked about 45% in the last 6 years, up 8% in the last year. the good news, however, reporting new cars have fewer mechanical problems and japanese models in particular i

for more on that and the rest of the news before the bell we turn to bertha coombs. good morning. >> good morning. hard to believe that it took this long for them to get a woman on the board especially cheryl chambers. futures higher, wall street suffering from a case of the mondays. the dow has been down the last eight of nine mondays. so if you're looking to invest long term maybe that's the day you want to buy. stocks dropped yesterday as investors were worried about europe and the possible outcome of the meeting later this week with european leaders. spain has requested a bailout for its banks and cyprus makes the fifth eurozone member country to ask for aid. greece's finance minister is resigning four days after being named to the job. europe slightly lower, asia mixed overnight. here in the states we're going to look for home price data and consumer confidence later this morning. the dow starts at 12,502 after losing 138 on one of those blue mondays. the nasdaq falling to 2636. facebook named cheryl sandberg to the board. she is the first female director at the

time for a check on business news before the bell and for all of the insights we turn it over to bertha coombs. good morning. >> reporter: good morning, jon. we've got a big settlement this morning. barclay's capital, $453 million in fines to regulators after admitting that traders and executives tried to manipulate interest rates tied to loans and financial contracts around the world during the financial crisis, in response to the admission barclay's ceo and top executives are going to forego their bonuses. it pledged to cooperate with investigations into individuals and rival firms. we could see more. the futures point to a lower start but the main event today is going to be the supreme court decision on president obama's health care overhaul that's expected mid morning. there also is that summit that has invest gers wondering what is going to happen in europe. european markets have been in the red for most of the day so far, wednesday was the best day for the dow and the s&p here in the u.s. in a week, the dow closing 92 points to 12,627 t s&p up 11 to 1331 and the nasdaq racking up

back to you. >> all right, thank i very much, bertha coombs.housing recovery continues to gain some traction, building material companies are getting a boost. usg, makers of sheetrock, have seen their profits boost 60%. warren buffett serves on their board of directors and as of march 31 stth owns 17 million shares of the company. joining us now is ceo jim metcalf. pleasure to have you here in chicago. >> great to be here and great to be right here down the street with our worldwide headquarters so it was a great commute here. >> try to make it easy for our guests. jim, got to ask you about the relationship between your stock and the housing recovery because when you say housing recovery, you think of a usg. at the same time, one analyst writes, rbc writes, don't buy the stock because you're excited about better housing trends. you buy it because you think the company can recognize higher wall board prices. are we at a different phase in the recovery where you're more dependant on price increases as opposed to the overall market? >> no, actuall

bertha, thank you so much. bertha coombs in manhattan.nge talking a little regulation this tuesday morning. good morning, rick. >> yes. we're not only talking regulation. we're going to put some things in alphabetical order. we're going to talk about not only regulatory rupture but also talk about a bit of a hidden agenda. now, all of this starts, of course, with the notion of out of order. out of order can mean broke and it does in this instance. it also means this certainly isn't in alphabetical order but it is in some kind of order. let's start with jpm, jpmorgan. in terms of jpmorgan i was welcomed this morning with jpmorgan new of risks in "the wall street journal." of course they did because it's trading. last i heard other than when they try to blame speculators for everything, there is risk in the market. i understand they need to investigate certain issues. why? we're down that rabbit hole. we bailed out the banks, now we have to protect the taxpayers. in the old days it's not really -- it wouldn't have been looked at as a 2 or 3

get their next comment comes from samantha spade who commented on our mainstream it which we called bertha risen from yemen kill list to seven and kill is now on hulu that's where she commented she said in reference to the kill list please shut up no really please just shut the hell up thank you in advance samantha spade and you know what all i can say is this has become a very typical response amongst americans these days which if you ask me is why we have a kill list people would rather not hear about it out of sight out of mind i don't want to know and i think that's part of what's kept our war in afghanistan going for ten years that's was allowed the president to kill american citizens without any due process because people who are lazy and impressionable they believe our officials say don't do any research on their own to see how often those statements by our officials contradict reality and that's what breeds this kind of attitude so if one day you wake up your civil liberties or god half the world has turned against us because of what people like myself been warning about and it's f

bertha?rl, yes, the americas health insurance plans, they represent insurers, karen saying that as the reform law is i were memented, health plans will continue to focus on promoting affordability and peace of mind for their beneficiariebeneficia. the law expands coverage to millions of americans, a goal health plans have long supported but major provisions such as the premium tax will have the unintended consequences of raising cost. essentially, if the mandate is upheld the laws that help the mandate should be upheld. they were behind that. none the less, you can you bet that a lot of folks will still to try renoeg eight the deals when it comes to the excise taxes. not just the health irn surers. most likely also the medical device makers because they did not get as good a deal, if you will, in the lead-up to the health care law as some of the other groups negotiated. so even though the supreme court has spoken, this is by far not the end of the story, quite likely. >> thank you very much,

. >>> welcome back, after hours action, let's check in with bertha coons. >> bed bath and beyond topped earnings estimates, but they were looking for 2.25 billion. and the big problem is earnings for next quarter, it's looking at earnings at 97 cents and they were looking for $1.08. >>> don't look now. but a knew way to bet on the housing market. >> that's right, this builds on the incredible demand we're seeing in the rental market. investors have been buying up properties and banks have so many on their books they're renting some. their called reos, so how do you turn that into a higher yield asset? investors are looking to turn it into a security. it would be rental streams lather than mortgage payments. so if you own a bunch of foreclosed homes you're not renting out, you pool the rental income of these homes into a tradeable security. you sell that to investors. if the homes themselves are eventually sold, the investor could get a cut of that as well. folks at standard and poors say they have been approached about rating this potential new class. >> whether the investors get paid b

. >> all right, bertha, thank you.ther stock we're focussing on is under armour, they have been a high flier this year. now their taking a big step on to nike and addias's turf. >> we want to get into this competition, but let me get your take, first off, on what's going on in the economy here today in terms of demand out there. we're trying to figure out what this demand looks like. it has been slower than some expected. how would you characterize demand out there? >> we have always lived in a little bit of a bubble. we grew 38% last year. we have been a constant grower from, you know, five years to the first 5 million, and closing a billion dollars. so growth is on our side because we have been speaking to the consumer and in this bubble of sports because they like we what offer and bringing them great products has kept us safe frer the economy that other people are feeling. >> it's so bifurcated. a specific tomb of apparel like yours, but they're looking for value. >> there is a bit of a barbell effect taking place.

here's cnbc's bertha coombs with the latest. >> reporter: good morning.tarbucks is breaking bread. not breaking bad, breaking bread, buying bay bread. a chain that owns a bakery in san francisco. they're buying if t for about $100. bucks' biggest move outside of coffee. they will roll out croissants, pastries, muffins and other foods in its stores and expand it into a national chain. the move could well put starbucks in direct competition now with panera bread. >>> and disney expected to announce that it is cutting back on the number of junk food ads on tv and radio ads aimed at children. ceo bob iegory will make the announcement with first lady michelle obama. disney, which owns abc as well as espn and the disney channel, launched an initiative in tweaks phase out promoting junk food to kids at theme porks. the program stopped short of impacting its advertising. i bet a lot of parents will be relieved for that. >> absolutely. >> you don't want to hear one more thing like, really, i want that. >> i agree. you think the starbucks move is for us to stretch

. >> for more on that let's turn it over to bertha coombs live at cnbc world headquarters. good morning. >> good morning, guys. facebook went public six weeks ago i guess it is. and the fall out continues. they went public on nasdaq, that's the exchange where they listed. we know what happened. all of this, now security regulators are looking at nasdaq to maybe update its trading system. that's clearly where the glitch happened. investigating what caused the mishap during the debut on the exchange. it had a big impact on brokers and investors who are suing the nasdaq over it. u.s. markets are looking to rally, futures are a lot higher after positive headlines out of the european summit in brussels, angela merkel may have been upset with the euro cup but she didn't let it stand in the way to stabilize the debt markets and recapitalize banks in europe. overall we've seen rallies in europe t euro is higher, we're coming off of a down day in the u.s., we were in the red t dow down as much as 176 points but ended up down just 24 points at 12,602. s&p almost made it back to the e

cnbc's bertha joins us now with more on that story.ere. >> it's really one of those things that, you know, you can't say anything positive about, the city of stockton, california, set to file for bankruptcy possibly as early as today. it could be the largest city to file for chapter 9 protection in u.s. history. stock son city council voted tuesday night to approve a budget to allow them to pay for day-to-day operations. the city failed to reach a deal with creditors to restructure the more than $700 million in debt. stockton has been hurt by high retiree cost and downtown revitalization project that they couldn't pay for and lower property tax revenue stemming from the housing market slump. >>> google holding a forum in san francisco today. it's expected to show off its own new tablet device. it will compete more directly with the kindle fire than apple ipad. it will run on android mobile software called jelly bean. features include a voice activated assistant similar to apple's suri. google and apple justed to be like this and now th

. >> for the rest let's turn it over to bertha coombs live at cnbc. good morning. >> i feel like i can do like a gymnast when i'm done. >> big finish. >> i landed the finish. i'm going to work on that. as you were saying, bernie madoff's brother is going to plead guilty to criminal charges of conspiracy and falsifying records while he was chief compliance officer of his brother's firm. he as agreed to forfeit a symbolic amount, he doesn't have that but that's the fine based on funds passed to madoff during his time with the company. news corp. is getting a green light. it's moving forward to split into two parts. they are going to separate the more profitable entertainment operations from the nonso thriving publishing business. rupert murdoch will be the chairman of both companies. futures are a bit lower, the main event for investors is that supreme court decision on president obama's health care overhaul that's going to have people on the sidelines until mid morning. as far as trading this morning in europe we've got stocks are a little in the red.

cnbc's bertha coombs is live with that story. >> are you a mac or a pc?m a pc guy. >> well, i'm a mac at home and pc at work. i've got a feeling that maybe i should be searching for flights now at work. reports say orbitz has found that mac users tend to pay 30% more per night for their hotels. so it's starting to show them different and sometimes pricier search results than pc users. the online travel site says it's experimenting with showing different hotel officers on mac and pc users. you can still choose to rent search results by price. meantime, breaking up, well, may not be so hard to do after all. the "wall street journal" reports news corp is considering a plan to break the company in two. the media giant can split its publishing business, which includes the "wall street journal," new york post, and random house, from the entertainment division which includes fox, "american idol," and various cable channels and 20th century fox, the movie studio. rupert murdoch hasn't previously liked that idea but is warming to it now. the move could be similar

cnbc's bertha coons has more on this story. >> the clock is ticking for congress now to reach a deal student loan rates right where they are. on july 1st, rates on federal loans such as the popular stafford loan are set to double to nearly 7%. 7 million college students, grads, will be effected. senate aides say democrats and republicans are moving close to a deal on how to pay for the $6 billion measure. the aim is to push through legislation this week to preserve stafford loan rates at 3.4% for yet another year. boy, we're going to be on pins and needles this week waiting for that and for the supreme court. see you later. >> you're right. a lot of folks will be. thank you. >>> there is a group that supports a casino at national harbor and they're hoping a new survey will convince state lums to expand gambling in maryland, too. the poll shows that 55% of maryland voters support a plan to expand gaming. 36% oppose the plan. survey also found 56% of voters would support mgm's proposed casino and national harbor. that poll conducted on behalf of the building trades for national harb ha

bertha coombs with a look at why the provider is doing that and what it could mean. >> most are expecting court ruling will come down on the last monday in june as one put it, this is a landmark december when the justices will want to take their time writing it. united health says no matter what it will keep some of the most popular provisions of the affordable care act. a smart move and one that the rest of the insurers are likely to follow. united says it is going to continue to offer no co-pays on preventative care and maintain coverage for dependents to age 26. no life-time dollar limits and option to appeal to an outside party on coverage denial. this is something industry officials saw is extremely popular. about the law. now, analysts say -- if you take a look at the shares. not much reaction. the move is not likely to impact earnings because these are less expensive to underwrite as opposed to the laws provision for guaranteed issuance insurance regardless of pre-existing conditions. that's a big issue that you need the mandate for. that's a key issue that would be difficult for i

we'll check in with cnbc's bertha coombs with more. >> in terms of stock movement, it's a social day,of positive territory in terms of investments, the dow is watching europe, spain is the new point of pain. the g-7 finance ministers, the finance ministers say they're monitoring the crisis. spain's debt costs are rising and the credit crunch loom there is. but stocks modsestly higher at the start. a little loafer after better-than-expected services data. on the corporate front, they used to be friends, but when it comes to mobile, apple and google are more like frenemies. apple may be getting ready to boot google maps from the iphone. apple is expected to unveil its own mapping system next week at a conference in san francisco. with the new system expected to come preloaded on the iphone 5, which is likely do launch late they are year. >>> and if the facebook ipo had its own fb page, it's time that it would have read shares turned higher this morning. a new poll finds that 80% of users have never bought a product or service based on an ad on facebook and a third say they're spending l

cnbc's bertha coombs joins us live now.talking about going into the weekend, what would happen in greece, and the way that the world really wanted it but now the bouncing ball of stress and worry has gone to spain and italy. >> yeah. for investors a lot of it is very much what have you done for me lately. certainly the markets relieved that greece's pro bailout new democracy party came out on top in the election there. the leftist party had vowed to undo the austerity measures that had been demanded by the european commission, european central bank, and the international monetary fund as part of that big $170 billion euro bailout package. but that new greek government still has to form a coalition to get a majority in parliament and they're going to face a lot of big issues ahead. so it's not going to be an easy fix. germany, which is a big part of the european commission, the biggest economy, angela merkel the chancellor, says there aren't going to be any changes in the understanding, the new government is going to have to

let's get to bertha coombs with breaking news. >> hey, mandy.n sachs is on the stand right now in the trial, insider trading case, of former board member gupta. gupta is accused of having tipped off the convicted hedge fund manager to a key event when warren buffett invested in goldman back during the financial crises. he is accused of getting off of the goldman call and turning around and offering that tip to roger rotman. well talk about how important that investment was. we will have more on his test as events warrant. now back to you. >> thank you very much for the latest update on that. >>> coming up next on street signs, why it down to the wire for your money. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need