on wall street, investors were encouraged by reports from caterpillar, ups, to name a few. and on theurrey markets, the euro going for $1.2888. >>> corporate results, shares of credit suisse fell 2% thursday on a poor second quarter earnings report. the banks all their profit fall 22% from the first three months of the year. investment banking took a hit as revenue dropped -- revenue dropped sharply amid weaker demands. the bank says the u.k. bonus tax also created onetime drag on e bottomine. >>> tomorrow is the day of reckoning for european banks, when the results of stress tests for 91 financial institutions will be released.

at&t was up 2%, and caterpillar was up more than 1% after much better than predicted profits.cat also raised its yearly guidance. pardon the pun, but transportation was moving with earnings from airlines, a railroad and u.p.s. a higher volume of packages at u.p.s. helped it easily beat estimates. strength in asia helped. union pacific saw shipped volumes grow and freight revenue was up across all divisions. that added up to better the expected results. and airline jetblue, it saw record revenue as demand picked up and profits were two cents better than expected. jetblue led the way for the sector, up 8.5%. we'll have more on the airline sector coming up in a moment. union pacific and u.p.s. were up by about 5% each. finally, a couple of stand-outs to the downside. pharmacy benefits manager medco fell to a new 52-week low. strong earnings were overshadowed by worries that fewer drugs losing patents next year means fewer new generic drugs, which come with higher margins. mellanox makes connections between semiconductors. shares lost a third of their value on a weaker revenue out

. >> reporter: take caterpillar. profits of 91% over last year, earning $707 million just this last quarter. dupont, up 277%, earning more than $1 billion. and microsoft, up 49%, nearly $6 billion in earnings. and between the three, they're sitting on more than $40 billion in cash. will they use it to hire? we called them. >> thank you for calling dupont. >> thank you for calling microsoft. >> reporter: only caterpillar today offered hard numbers. do you plan to hire any time soon? >> yes, we've hired about 3,000 employees to date. >> reporter: a number they say could reach 9,000 this year. of those 9,000, how many are right here in the u.s.? >> about 3,000. >> reporter: and why so many jobs overseas? >> that's where the need -- excuse me, that's where the customer is. >> reporter: that's where the customer is. a third of the new jobs here in the u.s. economists told me there's only so far you can push the work force, making their work harder, longer hours, to make the companies leaner and meaner. they said eventuall

caterpillar and at&t are both part of the dow jones inconclusive. at&t increased its quarter, and eli lilly and ups also with good reports. general motors announced it will buy out a finance company and will increase leasing and make more loans to buyers with lower credit scores. the deal is expected to close before the end of the year. . >>> a piece of san francisco history now back with its rightful owner. up next, they'll tell you about it. >>> find out how far giant's fans will have to travel next year to catch the season opener. >>> good morning, westbound 24, traffic looking okay as you drive through the tunnel, but we already have some difficulties for your thursday- morning commute. they used to spend hours on the couch, watching t.v., playing video games. and with all you hear about childhood obesity, i was concerned. now i take a more active role in their health like insisting on lots of play time and making sure they eat right. like when i make burgers i use lean jennie-o ground turkey. i'm proud i got them off the couch. well, sort of. a

with the economic recovery, those companies with a 3 am, caterpillar, at&t and ups. over 10,000.he nasdaq is also up at over 200246. the numbers were not so good at the safeway. the national grocers restore the rep profi. and the income also fell to 37¢ per share. and it did not match the analysts perception. and the topped analysts' expectations, and with stiff competition, declining retail. they say they did not expect prices to rebound into the act of the year. >> and after a quick break, a live look at the golden gate with quick fog, and traffic backing up as you make your way towards the toll plaza. , new the details on the shootout on interstate 580 early sunday in oakland. . this white binder, with a california written over this come with a bomb squad androbot with names come organizations within the san francisco bay area. >> there were locations that he had identified and certain spots that he had written down and still we need to keep that close to was during the investigation. >> and during this riots and ramblings that he had taken place. >> he was involved with the f

so you want a look for what works for you what it saw good indicator for the economy ups, caterpillartrial equipment is a big-ticket company microsoft spending corp. is great. and please with the earnings. >> now you're up to and the stress tests on the european banks talk about that and the stress tests we did and is a good idea? when >> we did our stress test in 2009 it started this dart stock market going up the moon because the credit crisis was over we were able to quantify what happened. three things during the market asia, europe how much debt to they have and credit and the at state's jobs. europe is off the sheets today they naps seven out of 91 banks are in trouble that's not that that's pretty good. $4 billion problem that's very easy stock markets skyrocketed whatever three evils up off the board. >> at the stress test they do a worse case scenario for banks? >> think of it this way if i give you when dollars deposit they're allowed to lend 30 times. if that fails because grease fails are the dollar feels they have to cut back $30 of lending. thus the stress test shows the

heavy machinery manufacturer caterpillar was up almost 2% after reporting strong sales of equipment for a wide range of industries. 3m, also considered a bellwether because of its broad base of products jumped more than 3% after delivering an upbeat future forecast and a jump in net income. good numbers from big names after the bell. as well, microsoft already up 3% in regular trade reported a rise in quarterly profit after hours. also late, american express beat street expectations, tripling its second quarter profit, helping amex bring its business back to pre-recession levels. >>> one big after-hours loser, amazon.com's earnings fell way short of wall street's estimates, sending its shares plummeting. >>> elsewhere, general motors getting back into the credit business, agreeing to buy subprime auto lender americredit for $3.5 billion. reports say later today kenneth feinberg, the obama administration's executive compensation czar, will name 17 financial companies that doled out excessive bonuses to the tune of $1.6 billion after accepting billions of dollars of taxpayer aid. >>> cons

on wall street, investors were encouraged by reports from caterpillar, ups, to name a few. and on theurrey markets, the euro going for $1.2888. >>> corporate results, shares of credit suisse fell 2% thursday on a poor second quarter earnings report. the banks all their profit fall 22% from the first three months of the year. investment banking took a hit as revenue dropped -- revenue dropped sharply amid weaker demands. the bank says the u.k. bonus tax also created onetime drag on e bottomine. >>> tomorrow is the day of reckoning for european banks, when the results of stress tests for 91 financial institutions will be released. the sentiment is so good at head of the release that bank stocks held a rally. >> these tourists are taking in the view from the heart of frankfurt's banking district. there may not be much to see on the outsidebut inside, and until regulators have been putting the banks through their paces -- financial regulators have been putting the banks through their paces. 91 banks have undergone stress tests. they will show if banks have the capacity to survi

caterpillar, 3m, u.p.s. and a.t&t all did better than expected. that helped push the dow jones industrial average up by 201 points to close at 10,322. the nasdaq rose 58 points to close near 2246. those broad-based gains more than made up for losses on wednesday. the stock market's surge came as other parts of the economy were headed in the opposite direction. the economy's leading indicators fell in june, the second decline in three months. at the same time, sales of existing homes slid more than 5%. and the inventory of vacant homes was the largest in a year. on the jobs front, new claims for unemployment insurance were well above expectations last week. with that in mind, the house of representatives today gave final approval to extending benefits for the long-term unemployed through the end of the year at a cost of $34 billion. house speaker nancy pelosi said it shouldn't have taken so long. >> imagine that today we're finally taking up unemployment insurance. republicans in the senate have stood in the way of so many initiatives including une

as did 3m, caterpillar, at&t, american express, microsoft, all dow components, by the way. meanwhile, federal reserve chairman ben bernanke spooked the marks with the semiannual testimony before the senate banking committee. bernanke said we are seeing, quote, an unusually uncertain economy. he did say though, that he did expect a moderate economy. about bernanke said the federal reserve was prepared to take steps, any steps needed, if the economy did take another leg down. he did not say what those steps would be. chairman bernanke may be concerned about an unusually uncertain economic outlook, but nigh next guest says he feels like the last optimist standing. he isser is me segal, professor of finance at the wharton school and uthor of "stocks for the long run." always great to have you on the program. welcome back. >> thank you very much, maria. >> so the markets have been so mixed these last few weeks, but you think it's a great time for investors. what makes youo so optimistic? >> they're allowed shrm uncertainties, but i look at valuation. i look at earnings and i loo

caterpillar posted better than expected numbers.ut as the day went on, amazon dropped 11%. >>> the colony became a gas chamber and all if bees died. >>> beekeepers say their bees were deliberately killed. >>> a major campaign milestone for megawhitman, what else $100 million could buy. >>> downtown san jose on your friday. it's going to start off with a few clouds then mostly sunny at lunchtime. 70degrees downtown. that's your friday. and then about 3:00 it'll get up into the low 80s. a warmer day for your friday. i'll see you back here with the five day forecast. >>> the next round of campaign finance reports of the california governor's race isn't due out for a couple of weeks. any day now, if it hasn't already happened, republican meg whitman will invest $100 million in her campaign. randy shandobil puts that number in perspective. >>> the election is still almost four months away. but already republican meg whitman has shattered california's spending report. just four years ago, governor arnold schwarzenegger spent about $50 mil

investors cheered positive results from 3m and caterpillar and at&t. asian markets were higher overnight. europe mostly positive right now and there's no economic data out tonight but traders will be keeping an eye on europe because the result of the banks' stress tests come out at noon. similar to here, but in europe. more earnings this morning from mcdonald's and verizon and ford. the earnings parade mar. on and hopefully they're good and push us up further. the dow jumped 201 points on thursday. and the nasdaq was up 58 points to 2245. >>> well, the department of education is proposing new rules today that would cut off federal aid for -- cut off federal aid to for-profit colleges if too many of their students default on loans or don't earn enough after graduation to repay them. to qualify for student aid, colleges will have to prepare students for, quote, gainful employment. republican lawmakers said the rules will make college less accessible. back to you. >> thanks a lot. >>> if wedding bells are in the future for you, a simple change to your pla

caterpillar posted better than expected numbers.s the day went on, amazon dropped 11%. >>> the colony became a gas chamber and all if bees died. >>> beekeepers say their bees >>> downtown san jose on your friday. it's going to start off with a few clouds then mostly sunny at lunchtime. 70degrees downtown. that's your friday. and then about 3:00 it'll get up into the low 80s. a warmer day for your friday. i'll see you back here with the five day forecast. >>> the next round of campaign finance reports of the california governor's race isn't due out for a couple of weeks. any day now, if it hasn't already happened, republican meg whitman will invest $100 million in her campaign. randy shandobil puts that number in perspective. >>> the election is still almost four months away. but already republican meg whitman has shattered california's spending report. just four years ago, governor arnold schwarzenegger spent about $50 million defeat san angelitas. total spent by the two, about 97 million, very little of it their money. republican s

at&t, 3m and caterpillar. already all reporting earnings beating wall street expectation. that's just the start of it. the dow fell 109 points wednesday to start at 10,120. the nasdaq off 25 to 2187. well yoourks going to want to brace yourself for more lousy news on the housing market. we'll get numbers on existing home sales. sales are forecast to drop for the second straight month as the effect of the government's tax credit begins to fade. buyers are also kind of staying on the sidelines as foreclosures are swelling the numbers of unsold homes on the market keeping pressure on prices. back to you. >> not good news exactly there. thanks a lot, courtney. >>> the next three months are going to be critical in stopping the whooping cough epidemnick california. july, august and september are typically peak months for that virus. six infants have died from whooping cough in california already this year. 1500 cases have been reported this year, which is five times more than last year. as nbc bay area's tom sinkovitz shows us. >> reporter: ten-month-old caden and 2- 1/2-year-ol

. >>> a trading surge on word of strong earnings from both caterpillar as well as other companies. here are today's closing numbers, the dow jumped almost 202 points. the nasdaq rose 58 points to close at 2,245. for more financial and consumers news any time be sure to visit our website ktvu.com and click on our business tab. >>> new york representative charles rangel has been charged with multiple ethics violations. there has been allegations of improper gifts, failure to report assets and possible conflicts of interest. now an official speaking on condition of anonymity said the two sides tried unsuccessfully to negotiate a settlement and an eight member panel will now hear the case. >>> president obama signed a bill this morning that required government agencies to conduct annual audits. the law targets instances where agency paid the wrong amount or give money to the wrong recipients. the goal is to reduce those improper payments by $60 million within the next two years. >> when we fail to spend people's tax dollars wisely, that's money we are not investing in better services f

caterpillar and deere, they said there was unexpected drop of durable goods orders, biggest was amongircraft. we are just slightly lower across the board. google reportedly working on a new networking site. it could be designed to compete with facebook. amazon looking at facebook friends and products they like. market ago new service that captures facebook friends for product recommendations and allows them to local on to their priolts and get information on friends and products that they like. >>> all right. thanks a lot. >>> they are being asked about a decision by police to shoot a cow that broke free. it escaped and stampede tluid the fairgrounds where concessionaires were in the property process of setting up. they tried to tranquilize the cow but the dart gun did not fire properly. >> it charged a police officer and again we had no choice but to kill the cow. >> why don't you get a rope, walk up to it nicely, get a rope on it and take it back to the barn. >>> police ended up shooting the cow 11 times before the gates had officially opened. no one was injured. >> by the way, ever

the world's biggest ground shipmenter and caterpillar the world's largest construction equipment makerly did they beat expectations but they have bulgish forecasts for the rest of the year. a very good sign, that's helping prop up the market now. the dow up by 136. nasdaq up 37. s&p up by 16. also another slew of local earning reports. safeway came out hit their target for their earnings and revenue was a little better showing what the grocery industry has gone through. safeway's earnings are 40% than a year ago. they have had to do with heavy discounting to keep up with companies like wal-mart and costco and they probably won't be seeing any rebound in price until the 4th quarter. that's good news for consumers but it's tough for businesses and threat of deflation. that's the word out there that continues to cause fear in the market if that does continue further. safeway shares are down a little on that news. >> you know, i was at target the other day, they have the same type of deal, too. i never thought of that, the grocery stores having to compete. i always thought trader joe's --

caterpillar, u.p.s., microsoft, all beat expectations and that helped the dow jones pick up 201 points to close at 10, 322. the nasdaq surged 58 to close at 2245. but after the bell, investors quickly dumped stock in amazon.com. earnings well below estimates. amazon is down more than 12% in after hours trading. >>> well, there is more trouble for the housing martin baccardax ket. sales of previously occupied homes fell more than 5% in june. they're expected to keep sliding. a federal tax credit had booed sales earlier this year and the number of people buying homes has dropped now along with its expiration. although it was not as big a drop as many analysts had expected. at the same time, mortgage rates are near record lows. 30 year fixed rate mortgages averaging 4.56%. that's down from a year ago's level of 5.2%. 15 year mortgages are also down from a year ago, both at their lowest points since freddie mac began tracking those rates in 1971. >>> verizon wireless may be rolling out its network sooner than expected. verizon could debut its 4 g service during the upcoming holiday season.

caterpillars. world that are selling construction equipment to china. so just remember, if you buy local, other foreign countries can say the same thing, and then it will hurt other companies. so that's usually a short-term strategy that ends up not working. in terms of manufacturing, manufacturing is really greatly affected by productivity increases. and productivity increases by and large are a good thing. even in 1900, 40% of people were farmers. today, only 2% are farmers. so what does that do to productivity advances? in manufacturing, it makes most sense to think that economy is about producing things. well, today it requires one-quarter of workers to produce the same amount of steel that we did in 1965. one-quarter of the workers in coal mining produces twice of amount of coal that we did before. it's just the nature of the beast that we have high productivity in manufacturing, and it's just not going to go away. that is, we aren't going to grow ourselves by a manufacturing economy. and in a study i'm doing now on what label it takes to produce v

caterpillars. world that are selling construction equipment to china. so just remember, if you buy local, other foreign countries can say the same thing, and then it will hurt other companies. so that's usually a short-term strategy that ends up not working. in terms of manufacturing, manufacturing is really greatly affected by productivity increases. and productivity increases by and large are a good thing. even in 1900, 40% of people were farmers. today, only 2% are farmers. so what does that do to productivity advances? in manufacturing, it makes most sense to think that economy is about producing things. well, today it requires one-quarter of workers to produce the same amount of steel that we did in 1965. one-quarter of the workers in coal mining produces twice of amount of coal that we did before. it's just the nature of the beast that we have high productivity in manufacturing, and it's just not going to go away. that is, we aren't going to grow ourselves by a manufacturing economy. and in a study i'm doing now on what label it takes to produce v

caterpillar would like to export more to panama. caterpillar is a great illinois company. big earth moving equipment. if there is a talk of a new panama canal being built, we would like cat billar equipment building that. what prohibits that? a high import tax. that's why we have trade negotiations. of course my pork producers, my peef producers would like to be in those markets. so this is an important bill to talk about, quote, green industry and environment i want to remind my folks that according to industry observers, lack of market expertise is not among the primary trade barriers. the three primary barriers are access to raw materials, labor rate comparisons, and access to foreign markets. this does nothing to address serious market barriers. it also creates a risk of stifling future generation of government. the market will direct innovation and development once the government takes winners and losers. they will -- china will cut earth rare exports by 72%. rare earth exports are the minerals needed in the green economy. they are going to control it. they are going

the dow up significantly, mainly because of another batch of strong earnings, specifically caterpillar, u.p.s. and at&t, all beating analysts' expectations, encouraging signs of europe that's offsetting disappointing news on home sales and a weak jobless report. so right now, the dow is currently up 205. the nasdaq is up 57. s&p, up 25. >>> it's 7:44. shirley sherrod said she is considering whether or not to accept a new job at the department of agriculture after being forced to resign earlier this week. sandra endo is in washington, d.c. request the latest on -- with the latest on this developing story. good morning, sandra. >> reporter: good morning. all of this could have been prevented if someone just listened to shirley sherrod, her story, her explanation, and listened to the videotape where her comments were recorded. well, now that everybody has heard exactly what's on the tape and her story, the tables have turned. the ball is now in sherrod's court. her former boss, tom vilsack, apologized to her wednesday for forcing her to resign earlier this week. then he offered her anothe

in colombia alone, 40 million consumers, american jobs that could be created for caterpillar, john deere, whirlpool, other great u.s. companies could create u.s. jobs and i hope very much, mr. speaker, we are able to put those kinds of pro-growth policies into place so we don't have to face what we are facing today. the speaker pro tempore: the gentleman's time has expired. the gentlelady from north carolina reserves the balance of her time. the gentleman from california. mr. cardoza: mr. speaker, i would like to inquire how much time each side has remaining. the speaker pro tempore: the gentleman from california has 16 minutes remaining. the gentlelady from north carolina has 14 1/4 minutes remaining. the gentleman from california. mr. cardoza: thank you, mr. speaker. i would just like to respond to my colleague from california by saying that the gentleman is once again talking about the long-term questions. whether we need tax cuts or whether we need to have more stimulus. all those things are open to debate. what's not open to debate is the fact that 1.7 million americans today will -

caterpillars. world that are selling construction equipment to china.buy local, other foreign countries can say the same thing, and then it will hurt other companies. so that's usually a short-term strategy that ends up not working. in terms of manufacturing, manufacturing is really greatly affected by productivity increases. and productivity increases by and large are a good thing. even in 1900, 40% of people were farmers. today, only 2% are farmers. so what does that do to productivity advances? in manufacturing, it makes most sense to think that economy is out producing things. well, today it requires one-quarter of workers to produce the same amount of steel that we did in 1965. one-quarter of the workers in coal mining produces twice of amount of coal that we did before. it's just the nature of the beast that we have high productivity in manufacturing, and it's just not going to go away. that is, we aren't going to grow ourselves by a manufacturing economy. and in a study i'm doing now on what lel it takes to produce various things, the thing about