there is, look what is happening with caterpillar today. 30% of the caterpillar's revenues come fromolympics that will continue to fuel japanese growth. there will be a lot of great opportunities worldwide, particularly buying american companies that have exposure to the foreign markets. i think it's a great opportunity for them. tracy: before we get to the picks, you note interest rates will continue to keep going up ion though fed tapering will not affect the market. it has got to effect the economy. that is bigger interest payment to make on any loan you take out over the next few months. >> not really that much bigger in the historic sense. people are moaning and growning that interest rates on 30-year mortgages have got len to 4.75. i remember my first mortgage at 10 i was lucky to get such a low rate. >> that means -- >> bond rates -- tracy: you're as old as i am. mine was nine. we're in the history books. >> weren't you shape to get that, weren't you happy to get that mortgage. tracy: that anybody would give me money. >> absolutely. tracy: emc, data storage, i love that. >> fa

i think you can short caterpillar caterpillar. caterpillar gets this. that's not right in this case. >> what do the industrial names look like? that got a huge bid. >> i wouldn't be short industrials or materials. i think you will be short the united states. i think you probably want to stick with financials and things like that. the market was flying all day. regional banks were down not flat. i think it's speaking volumes. >> you wonder if the regional banks were down because of what was set about mortgage originations. wells fargo saying 30% fewer originations in this quarter. j.p. morgan saying that the decline has been dramatic. that i think is rear view mirror news. the refi business is going to slow. i think we will see a rebound in transactions, not refinancing. i'm long. i like bank of america, citi. >> both of the conference calls they both said if there was a dramatic slowing even in the refis it would have a dramatic effect on earnings. you think that other business is going to make up that much of it? >> i think the stocks are discounting a

the trade into that was to get short caterpillar somewhere between 88 and 90. that's played out. think the market will test. it needs to hold i think if we close below 1670 we are in a whole different trading range, that could take us down to test a june low. be careful. trade the ranges. >> how do you interpret the markets move here? there is not a clear reach for safety. >> there is not. i think there is better opportunities than actually being in the market. guy mentioned 1670. i think that's probably a place, where you want to start looking to getting back in. the reason i say that i think you're going to have continued quantitative easing you saw it happen in the gold market. the rhetoric is shifting here from the fed to reserve. they are starting to focus more on inflation. we saw the pce this morning came in well below their expectations, charles evans spoke this morning, early this morning about 7:30 talked about the dual mandate, talked about inflation targeting. you saw gold spike. i think going into the fourth quarter, the best play here is gold. >> there is no inflati

facebook, ebay, some of the -- apple, soon to be one of the largest employers in the city of austin, caterpillar, every engine manufacturer in the united states is now in the state of texas. when you see toyota decided to build every pick-up truck in america in the state of texas, they didn't come there if they were worried about whether or not there was not going to be a skilled workforce and the people were going to have health care. 95% of all the wages in texas are above minimum wage, 95%. >> one out of ten minimum wage workers in the country live in texas. and when you talk about -- >> i think the issue is this -- i also want to talk about opportunity. for the uninsured, where is their opportunity to afford health insurance if you're not providing them the opportunity to get health insurance. >> the real issue is give people the freedom of whether or not they want to have a good job to be able to take care of their family first. if you don't have that first, then their only alternative is some government assistance program. >> but those on minimum wage can't afford health insurance. and the

this is really what we did around the caterpillar deal last year, as well. we went and funded that so we could pursue that opportunity, which we think is huge. but at the same time, we're confident that we've got a business plan that can get us to cash flow. you can see us making big investments in things like the 12-liter engine with cummins we launched this year. we think what's going to happen over the next twelve months is that cash drain will drop substantially and that says we don't need to raise money if we're going to continue with our current business. will we raise more money for future opportunities? that depends on the opportunity and the timing. but no immediate plans. >> fair enough. thank you so much, david demers of westport innovations which is the natural gas engine company. thank you so much for coming on the show. >> thanks, jim. good talking to you. >> guys, this is -- i know some probably say, it's always going to come, what's the deal. but we all know that the adoption has taken far longer than we would like, but in the world of trucks

. >> smoking like a striped tail, right, trippy caterpillar? he has emphysema now. but back to durant who was later spotted on a segway? that's weird. >> segway, part two, in barcelona. view.t that >> weeee! >> that's driving under the influence. >> no, it's not. >> hookah! it's tobacco. >> oh. >> we don't know that for sure but it's probably tobacco. after all, durant is a big fan at hookah lounges. >> he's been spotted at hookah shops in chicago, minnesota, hong kong and other places, too. it seems like where he goes on vacation, he finds a hookah shop up.sets >> wasn't he hanging around with bieber the other day and couldn't figure out what he was doing with bieber. >> right. durant was kicking it with the biebs in calabasas but biebs doesn't smoke hookah. biebs smokes ganja allegedly. not really allegedly. but the only thing that counts -- kevin's high on is fun, right? thanks, middle east, you keep us on our toes. >> we got jamie alexander, she's in "thor." there's rumors she's going to play wonder woman. guy thinks she already has. >> any chance you could repr

i don't care how hungry that caterpillar is. it's not getting food stamps. and my guest chris fisher is a conservationist who tracks great white sharks. a flight was grounded because there was a snake on the plane. it's just like the samuel l. jackson movie, django unchained. captioning sponsored by comedy central ( theme song playing ) ( cheers and applause ) ( cheers and applause ) >> stephen: welcome to the report. thank you for joining us, ladies and gentlemen. >> stephen! stephen! stephen! stephen! stephen! stephen! stephen! stephen! stephen. >> stephen: thank you, ladies and gentlemen. thank you, so much. thank you in there, out there, all around the world. thank you for joining us. and by "us" of course i mean us. ( cheers and applause ) we're a family now because i've adopted them. ( laughter ) come tax time i will be claiming them as dependents. in addition to being honored on the emmys, i was promptly featured on a television show people actually watch. >> you wea awake? >> yeah. >> we have ben & jerry's, wenut butter cup, and americone dream. >> s

. >> smoking like a striped tail, right, trippy caterpillar? he has emphysema now.k to durant who was later spotted on a segway? that's weird. >> segway, part two, in barcelona. view.t that >> weeee! >> that's driving under the influence. >> no, it's not. >> hookah! it's tobacco. >> oh. >> we don't know that for sure but it's probably tobacco. after all, durant is a big fan at hookah lounges. >> he's been spotted at hookah shops in chicago, minnesota, hong kong and other places, too. it seems like where he goes on vacation, he finds a hookah shop up.sets >> wasn't he hanging around with bieber the other day and couldn't figure out what he was doing with bieber. >> right. durant was kicking it with the biebs in calabasas but biebs doesn't smoke hookah. biebs smokes ganja allegedly. not really allegedly. but the only thing that counts -- kevin's high on is fun, right? thanks, middle east, you keep us on our toes. >> we got jamie alexander, she's in "thor." there's rumors she's going to play wonder woman. guy thinks she already has. >> any chance you could reprise your

herbalife, caterpillar and other companies tied to the growth in china. jim chanos is with us. a unique event called youth. we'll speak about this great cause in a few moments but thanks for being back on the program. >> good to be back. i might be one of the last short-sellers left. >> what is your reaction to the federal reserve keeping stimulus status quo, not tapering back any of the bond buying? >> well, maria, i joined wall street in 1980, so for roughly two-thirds of the time i've been on the street, the fed has been easing. i assume two things going forward. the fed and western central banks will ease and that the chinese will stimulate. those are my two givens looking forward in the world financial market. >> you weren't very surprised then? >> well, look, i'm not a fed watcher. i think that -- as i recall, though, back in may or june when the first taper talk got out there, as i recall, a number of fed governors a week later, within a week, basically said, you're misinterpreting us. that gave me a good sense that nothing was going to happen near term. >> let me ask yo

you have stocks with exposure to china getting a boost like caterpillar. up 2 2/3%.e of what the like was today, good news from overseas before syria? >> syria was a little distraction. biggest news was out of china and japan, showing the world that the global economy is in a much improved situation and a great lesson to short sell. you never short a dull market. last of august was so dull. now you're getting the pay back. >> i was asking a gentleman a few minutes ago if you think we'll get a september surprise, an upside surprise. everybody was expecting the market to continue this pull back. we're already 65% -- we've gotten 65% of losses in august back now. >> that's a little scary. that's a little overdone to me. i'm one of those people looking for a correction, probably back in may. i'm willing to say i've been wrong but i think the fact of the matter is, this kind of trajectory to the upside is scary from a trader -- i may not be wrong but the fact we stayed at these levels for so long without a correction is what, again, the move away from 200-day moving avera

i don't care how hungry that caterpillar is. it's not getting food stamps.and my guest chris fisher is a conservationist who tracks great white sharks. a flight was grounded because there was a snake on the plane. it's just like the samuel l. jackson movie, django unchained. captioning sponsored by comedy central ( theme song playing ) ( cheers and applause ) ( cheers and applause ) >> stephen: welcome to the report. thank you for joining us, ladies and gentlemen. >> stephen! stephen! stephen! stephen! stephen! stephen! stephen! stephen! stephen. >> stephen: thank you, ladies and gentlemen. thank you, so much. thank you in there, out there, all around the world. thank you for joining us. and by "us" of course i mean us. ( cheers and applause ) we're a family now because i've adopted them. ( laughter ) come tax time i will be claiming them as dependents. in addition to being honored on the emmys, i was promptly featured on a television show people actually watch. >> you wea awake? >> yeah. >> we have ben &

. >> for sure. 300 companies have already done it ibm is joining caterpillar, they're joining all sorts of other companies, dupont, again time warner just made the announcement. i think we're going to see more and more of this. the dom foes have started to fall. >> jeff: the question a lot of people might ask is does this mean my insurance rates are going to go up? >> so here's the unknown are young people. so the estimate is for 7 million people to sign up for this new kind of health coverage in the next year. two to two and a half million of those people need to be healthy, 18 to 35-year-olds. because basically what they will do is subsidize the cost of the older retiree. if they don't go in, if they don't enroll, the math will not work. >> jeff: mellody hobson, thank you very much. he is one of the original olympic sports but earlier this year wrestling was dropped from the game, a move that surprised many. today the international olympic committee changed its mind voting to put wrestling back in 20920 games. as don dahler explains many believe this not only restores the sport's repu

if china coming back, then caterpillar is coming along for the ride.llar is going to be a headwind for cat. but it's very cheap, less than 10 p/e. and it's tough to say that's not cheap on my level. >> would you buy or sell the dollar right now? >> you know, i think what you want the start thinking about is what the dollar is going to do for you from an asset allocation standpoint. if you're a currency trader, it's a different discussion. if you're someone who's got a portfolio, the way you want to go into, what's to come on the fiscal side, larry, you want to maintain your bond allocation that will offset some of the volatility in stocks if we don't get positive headlines. it will also give you the dry powder to come back in if you have missed a lot of this rally which most people have. >> a rising dollar pushes down commodity prices, pushes down, let's take oil for example. >> sure. >> oil is awfully high it seems to me. other commodities haven't performed nearly as well. a strong dollar would get oil down. lower oil prices would sure help consumers.

caterpillar moving on the back of the surge of chinese exports in august.ove that happened some yesterday. happening again today. >> yes. i am very happy about that move. . >> 87.56 where the day movie ii average is. look at technicals may see buying momentum come in there. i talk about joy global, 200 day moving average approaching quickly there and i think there's more potential upside in joy global than caterpillar. >> even a resident china naysayer steve wise bought stocks with china exposure. >> yeah. >> don't believe in numbers but don't care at this point. >> as long as i have guys like murphy believing them, i'm in. >> even though the credit bubble is exploding there, it doesn't matter, momentum will continue a little longer. not going to be there forever. it's been a great trade. >> netflix, all-time high. doc, carl icahn told us yesterday he hasn't sold any. >> that's been a very wise move by carl, of course. new all-time high, 308 and change. virtually up against that here. tivo and the -- i'm sorry, virgin media and the fact that this will be av

i don't care how hungry that caterpillar is. it's not getting food stamps.est chris fisher is a conservationist who tracks great white sharks. a flight was grounded because there was a snake on the plane. it's just like the samuel l. jackson movie, django unchained. captioning sponsored by comedy central

that could bring up caterpillar which has underperformed for the last 24 months. i understand what he is saying and you always have to have. >> what do you make of this move of the more speculative names? >> they are being driven by liquidity so i think the market is going a little faster than people expected because i don't think the fed is going to taper as quickly as people suggest. a 10 million dollar tape ser not much of a taper. i think that is what is affecting the markets right now. you look at the ma crow economic environment. you don't see the growth there. that has got to be driving some people to be getting to the sidelines. >> just to touch on that, eem was unfairly sold off. i shouldn't say unfairly. it wasover sold. most recent highs i get we're looking back to may. but to touch on the other, people are looking for performance. 90% of all funds are probably trailing the index. so where are they going to get it from? not from disney or the generals. they will get it from wimpy stocks. >> ralph mentioned speculation. alpha could mean speculation, chan

. >> why caterpillar? is this on a broader market pull back? it's starting to try to play catch up like it has done a number of times. a number of times but each high is a lower high and that's what i think is going to happen. >> china's fixed domestic investment was lower than expected and came in flat as opposed to up 12%. china pumping along and building new roads and buildings. >> this is is a nice little trade that has gone up for about a month now. karen and i have -- >> ten to 15. what kind of market reaction will we get if we get? but i would have to be right on what do they do. i still want to own what i want to own. >> and then there is another monkey wrench. that is the news conference that ben bernanke will hold afterwards. we don't know what language he will use in order to characterize whatever action or non-action they take tomorrow. >> and it's a real high wire act that he will do tomorrow because here is what he is trying to attempt. he is trying to attempt forward guidance which means you have to believe him. and that the fede

fruit-trees all upturned, her hedges ruined, her knots disorder'd and her wholesome herbs swarming with caterpillars? gardener: hold thy peace: he that hath suffered this disordered spring hath now himself met with the fall of leaf: the weeds which his broad spreading leaves did shelter, that seemed in eating him to hold him up, are plucked up root and all by bolingbroke, i mean the favourites of the king, bushy and green. -what, are they dead? -they are; and bolingbroke hath seized the wasteful king. o, what pity is it that he had not so trimmed and dressed his land as we this garden! we at time of year do wound the bark, lest, being over-proud in sap and blood, it confound itself: had he done so to great and growing men, they might have lived to bear and he to taste their fruits of duty. assistant: what, think you then the king shall be deposed? gardener: depressed he is already, and deposed he will be. thou! how dares thy harsh rude tongue sound this unpleasing news? what eve, what serpent, hath suggested thee to make a second fall of cursed man? why dost thou say king richard is deposed? darest,

caterpillar has also made a similar move. toyota recalling 780,000 vehicles for the second time for the failure of a rear tie rod on a suspension that could cause get this a loss of vehicle control. affected vehicles include the 2010 lexus 250 hybrid and toyota rav-4 suv from the 2006 to 2011 mol years. facebook is working to make friends and not alienate people. the social giant pausing the effort to put video advertisements. it would be short in an auto play without sound when the users pull over them. two many users would be turned off by that experience. >> i am one of them, too. >> coming up next you expect your smart phone to be secure. nsa might be able to access some of the most popular models including iphones and androids. >> drew peterson breaking his silence from behind bars. the convicted killer scared something terrible is about to happen. we've completely redone the house. it's hard to find contractors with the passion and the skill, and that's why we use angie's list. online or on the phone, we help you hire r

you name it, but also caterpillar, sears, do. -- dupont, darden restaurants.s this a precursor of what could be happening for employees , people are currently not working, not retirees? >> absolutely. you will see more and more effort for companies to go to a defined contribution rather than defined benefit. just like with pensions, you don't just give them a pension. you give them the dollars and they invest. gerri: some. >> but it is the same idea with health care. that way you can budget. i'm going to give my employees 3,000. grows that with inflation as opposed to having to say we will give you a health benefit, whenever it costs. that is a much less stable situation for companies. gerri: not unlimited and we have been moving toward this for a long time. it's always great to see you. don't touch that night. processed chicken for china that cannot snaked its way into its happy males without even knowing it. thanks to new rules by the usda. the processed poultry will not have a label saying where it is from. joining me now, assistant director of consumer adv

companies like caterpillar are struggling to find heavy equipment mechanics. >> what do they pay? >> start at mid-40s and with a couple of years of experience, 120, 130 a year. >> you have an application with you? >> but it's simply a question of what do we value and what do we celebrate? it's like manufacturing. if you look at detroit and consider all the things that went wrong, for me it starts with our relationship with that which we make, our relationship with making things. you know, and we're just missing the headline in the conversation over and over. >> if you had a piece of advice to give to the president and congress, what would you tell them? >> look, first of all i'm not an expert but i would say that the reality of the situation right now vis-a-vis alternative education we have to make a case for the trades. we have to start with an wareness campaign, a public relation campaign to challenge perceptions and stigma. 3 million shovel-ready jobs is a great idea. but i had a dirty jobber tell me, that's going to be a tough sell. you are talking to a country that no longer

don't know if he covered or was long, but the stock did subsequently drop and a turn in china where caterpillaras dramatically overinventoried could be huge for cat and any better orders out of china will take the worst-performing dow stock higher, 10%, perhaps more. how about cummins, cmi. and cummins is relying on china for the upside. all right. let's talk about the elephant in the room. tomorrow's big launch is all about a new, cheaper iphone. it dovetails nicely the next day with china mobile, a gigantic chinese carrier that has not been a friend of apple's. talk about a reason for these naysayer analysts to upgrade and raise targets and oh, boy, are you ever going to hear that, and maybe you don't recall, the analysts gave the company a real beatdown over a lack of chinese customers. this less expensive phone is the answer to the naysayers for apple. best of all, it could be joy global. it gave hideous guidance. mike sutherland here today and then you can see the numbers. oh, man, that was awful. and what has joy global done after that miss, as well as multiple downgrades? how about being

. >> caterpillar saying the worldwide sales weakened the past three months because of slowing demand for commodities from countries such as china. david: darden restaurant, parent of chains like olive garden, red lobster. it is getting crushed because of a dismal quarterly earnings report and forecast. >> house republicans led by speaker john boehner passed legislation to fund the government through december 15th. it include measures to derail obamacare. those measures make it means the initiative will be killed by senate democrats. "after the bell" starts right now david: what a seesaw week. with number one thing that could move the market. and tim mulholland in the pits of the cme. estimate, start with you. i know we've been going every it every day this week but a $3.7 trillion balance. that is how much money, well the fed printed three trillion of that over the past five years. are traders at all concerned that the fed simply won't be able to unwiped? >> yeah, i mean it is warren buffett even said, much easier to buy than it is to sell especially at the end of the month. face it,

despite the talk about how the emerging markets will lift all boats caterpillar which makes its livingff emerging markets is the worst performer on the dow down 2.74. >> my mind about to explode at all those numbers. the republican house passed a bill to keep the federal government from shugt down. the democratic senate wilkl kil it. income holders for members of the military and most government workers. in tourism, national parks and monuments would be locked. business travel, passports and visa applications stalled. student loans stopped. by the way, members of congress would still be paid. >> meantime looking at president obama throwing sharp jabs at congress at a kansas city area ford plant saying if the u.s. does not raise the debt ceiling we're, quote, deadbeats. let's get down to john harwood in washington. another dig at congressional republicans. this debt ceiling fight feels similar to the last ones but also in some ways feels different because the republicans are now fighting amongst themselves. >> theyp are this thing is just beginning to heat up. the president on the road

so he had just little stumps, caterpillar-like stumps for eyebrows.our eyebrows? >> everything has a meaning to it, you know, and it means i'm a homosexual. >> okay. what does? >> it's to let everybody know that i just -- >> i didn't know that. >> i told you that. >> but i didn't know that it had a meaning. >> oh. for me it does. >> for you it has a meaning. so you classify yourself as a gbg? a gay boy? >> all day. >> all day. >> i can't deny it. >> then we got this really interesting candid moment where wicked was trying to explain the tv thing to angel. >> they're going to follow us, for a little bit. our lives together. >> why? >> yeah. >> hopefully we'll sell. i mean, that's what i got to say. >> it will. >> why wouldn't it? >> i'm just saying. >> tomorrow hopefully -- i know for sure you're going to move in. and so we'll be cellies and then we'll go from there. >> this is when things started to get a little strange. it was odd enough to learn about the gay boy gangsters, but now we're following this love relationship between these two gay boy gan

companies like caterpillar struggling to find heavy equipment mechanics. these are good jobs, okay?y. >> you can start there mid-40s, and with a couple years' experience, 120, 130 a year. >> do you have an application with you? >> but it is simply a question of what do we value, what do we celebrate. it is like manufacturing. if you look at detroit and consider all of the things that went wrong, for me it just starts with our relationship with that which we make, our relationship with making things, you know. we're just missing the headline in the conversation over and over and over. >> if you had a piece of advice that you could give to the president and to congress, what would you tell them? >> look, first of all, i'm not an expert, never want to put myself out there as one. i would say the reality of the situation right now, vis-a-vis alternative education, we have to make a case for the trades. we have to start with an awareness campaign, a public relations campaign that challenges perceptions and stigmas. 3 million shovel-ready jobs from four or five years ago is great idea, i

you think blue chip names, multinationals like ibm, maybe a caterpillar and qualcomm on the tech side to play in on the smartphone revolution. again, sue, some names to consider if you're looking for what's going to happen when the fed makes any kind of announcement with regard to rates. back over to you. >> thank you, dom, very much. stock market session highs up 56 highs. kenny of o'neill securities is with us and a cnbc market analyst and dear friend gary is back. >> great to see you. took us a long time to do this together but i'm excited. >> i am too. great to have you here. you think the taper is a nonevent if it occurs. why? >> i think it's a nonevent in the sense that as a traditionalist investor, interest rates going up, rising interest rates is one thing, when the fed is moving to raise interest rates. the taper is more about a symbolic gesture and that's been priced into the markets the way i see it. i don't expect any major market reaction whether we taper, don't taper, whatever that amount is. it's about rising interest rates and that's not anywhere near anything on the h

the reason we've seen gains in shares of caterpillar, ibm, and intel in the last 40 minutes or so ofless, these are the themes that have been playing out throughout the session. of course, there was a lot of buzz coming in to today's session. there were some big deals, vodafone and verizon, of course, with verizon buying the remaining stake of their joint wireless network. both of those stocks lower on that news. and then, microsoft, of course, paying $7.2 billion for nokia's handset business. of course, it's benefitting nokia, but everyone is asking about microsoft's move. why? it's kept pressure on the stock, which in turn has kept pressure on the dow jones industrials. another thing is concerns about syria. the dow came off a 100-point gain, when john boehner said he would support president obama in the event he did decide to go ahead with military strikes. that's given a lift to defense stocks which have been stronger throughout the day. and a third theme is we did have strong manufacturing data here in the u.s. on the heels of strong data that came out of china as well as euro z

. >>> is the next trade going to be about moving into a caterpillar as opposed to general mills?hose staples and utilities. is that trade over for good? >> i don't think it's over for good. you'll have to be nimble and quick. if we get good economic development coming out of not only the u.s. policy, the emerging sectors, yes, those big construction, industrial and basic material names, they should rally in here in this market. >> one thing we haven't mentioned this afternoon is syria. we're in for a few more days here of essentially vote counting even though we think we may know what the house or smat is going to do. >> i think the way they've telegraphed anything they'll do, i think it will be a non-event for the equities market. they've signaled a lot of spanking if you will. we won't go in there in a great way. i don't think the u.s. getting dragged into a quagmire. famous last words. if that's the case, i suspect we won't see equity markets react all that worse. >> some historians have tried to argue post kosovo, post libya, post somalia, bosnia, the market tended to be high

caterpillar put its workers on notice. the company is cautioning short-term incentive plans will be making its smallest payout since the recession when the payments go out next march. caterpillar is one of many companies that adopted the pay it risk compensation system. it ties a percentage of nearly every non-union employee's income to the company's financial performance. advocates of the plans say they do allow employees to participate in the prosperity of their employers. critics counter the plans are part of a broader transfer of risk from the employer to the employee. this is no different, the ceo tied into the same package and a program that paid out $1.2 billion a few years ago. >> this is a pay for performance issue. the only thing that is different here is that the ceo is making obviously millions of dollars, the employees in some cases according to this piece actually are making a lot less than that, potentially 20, 30, 40, $50,000 in certain cases and so therefore is there a disconnect and should there be minimu

smoking like a striped cat, right, trippy caterpillar?r spotted on a segway? weird. >> segway, part two, in barcelona. weeee! >> that's driving under the influence. >> no, it's not. >> hookah! it's tobacco. >> oh. >> we don't know that for sure but it's probably tobacco. after all, durant is a big fan at hookah lounges. been spotted at hookah shops in chicago, minnesota, and other places, too. it seems like where he goes on vacation, he sets up. he hanging around with bieber the other day and couldn't figure out what he was doing with bieber. right. durant was kicking it with the but biebsalabasas doesn't smoke hookah. allegedly.s ganja not really allegedly. but the only thing that counts right, durant? thanks, middle east, you keep us toes. she'sgot jamie alexander, in "thor." there's rumors she's going to woman.nder >> any chance you could reprise your wonder woman role in the new justice league movie coming ?ut in 2013 >> i've never played wonder woman? no, that wasn't me. she's not a very well endowed woman. wonder woman has a giant r

and we have caterpillar, and j.p. morgan and sending the dow jones, higher. also, the nasdaq is hitting levels that it has not seen in several years even sense the '.com' bust. >> we also want to keep you updates on the fire officials sang about the fire on mt. diablo. terisa estacio. >> reporter: on this monday i am at the evacuation center that has been set up at the clayton community libraries. 100 homes have been impacted. this is what it looks like in the air from the evacuation center. you can see this big plume of smoke. oak hill lane and trail ride the latest evacuation is that at least 50-75 homes are directly threatened. so far, no homes have been damaged. the red cross is out here to help with anybody and need. they are expecting people to stop by and get supplies. terisa estacio, kron 4 news. >> this is a aliv this is a live estacio, kron 4 news. >> this is a aliv this is a live shot unbelievable. shhhhh! in our day, we didn't have u-verse high speed internet. yeah, our babysitter didn't have a million ways to serve mom up on a silver platter. we

we're talking about other companies doing this, including dupont and caterpillar? >> yeah. we talked in terms of people that are already retired. this is current. i read everyone in the journal regarding this. it's funny to see people, if it's a good thing, they attribute it to obama care. but since it's viewed negatively, you see this has nothing to do with obama care, the companies were going to do this, anyway. but to me, it's as simple as what happened in retirement plans 20 years ago where they went from a defined benefit where you had no idea how much it was going to cost you based on return to a defined contribution. this is the same thing. you have this much money. you have this much money to spend on health care. manage it. it could mean that, you know, you may need to spend more. and also you would be much more selective about going to a doctor and which doctor you go see. so it's personal responsibility, which is, i think, helping. >> andrew? >> so the good news, i agree, is personal responsibility. the bad news is, they've giving a lot of cash now, but the quest

♪ ♪ it's a caterpillar that's turned into a butterfly ♪ ♪ the creatures are neat, they might be undergs out is fun. "curious george." announcer: watch "curious george" weekdays on pbs kids or anytime on pbskids.org. viewers like you, and you, and you, and you... ha, ha! thanks so much you're very kind. the cat in the hat knows a lot about nature. do you? rainbows are a very special thing found in nature, and the colors of the rainbow always line up in the very same way-- red, orange, yellow. what's next? green! green. blue, indigo, violet. i love rainbows. you can learn more about nature with the cat in the hat at pbskids.org. and now calling all super readers! "super why!" is next. hi. it's me, hooper. can you guess where i am today? ♪ where is he going? what will he do? ♪ ♪ where in the world is hooper? ♪ here's a clue to where i am. there are lots of seats here, but no tables. here's another hint: you can laugh here, but you're not supposed to talk. ha ha ha ha! laughing's ok, but talking isn't, so i'd better shh. ok. now here's a final clue from "curious george." [dinosaur roars]

caterpillar, sorry, it soars higher, even though they've made many miscues in china. a rising tied lifts all boats. >> as far as capital, apple, looking at at 4 the came, down, the 3, down 4%, the 2.2, down. >> maybe drama doesn't play. >> one guy who loves drama is carl icahn. it's still a cheap stock. >> it is a cheap stock. >> any way you want to mention it it continues to be. we'll see what his dinner with mr. cook brings. >> where are they going? >> i don't know it. >> do you think it will be wendy's? >> i don't think so. >> a lot of analysts are below of price targets. that gives them something to say. i don't want to go out there and say i was wrong. china, i'm going to raise numbers and the stock goes to 650 and that's how you get these ping-pong moves. >> a lot to talk about today. when we come back a warning for the financial sector. former chairman of citigroup, sandy weill, says things are worse today than they were. that's next. and senator johnson will be with us when we come back. a look at futures here. pretty good action and they've been steady all al

they don't want to be caterpillar. >> if you have commercial construction coming back, they will do terrifically goebbels company. david, relational managed convinced the board at timkin that the management was wrong in not wanting to split the company up. the board was won over. what are these guys like? do they come in with just fabulous work? >> i think they come in with good work. >> nell san, too. >> everybody's got their on approach. it's interesting in terms of the more aggressive activists, those who will get very aggressive but will try to be construct of and then you've got the ackmans, the icahns. it not an all for one. and they will choose different menus. look to see if anything happens here. >> i thank you because some guys who do activism are really trying to help everybody. i think pelts has, i think relational's done high-quality work. >> all right. we have a lot more to cover this morning. the big question, is this week's rally going to continue? you know what, the best way to find out, stick around. the opening bell after this. >>> tomorrow, back from the brink. former treasur

dividend names even with the rising tenure or do what apparently some are doing today, take a flyer on caterpillars not slowing as much as you fear? >> we're modestly overweight the cyclical stocks, in particular, consumer discretionary. we are caution yash about what we're thinking in terms of volatility for the quarter. we're off setting that with fairly overweight health care. i would not be defensive. >> getting out of september is going to be a challenge. either way. thank you so much for your time. we'll see you later. >> thank you. >>> let's send it over to dominick chu. >>> s&p dow jones indices said it would include delta in the s&p 500 index. here are how some of the other big s&p 500 additions have fared in trading so far this year, both immediately after the announcement and a month later. back on july 1st we found out that info and ratings company nielsen was going to replace sprint nextel in the s&p. sessions were down a percent a month later. same thing happened with general motors on june 3rd we found it would replace heinz. shares went up but down about a percent a month later. a

then the work of caterpillar and general electric.and see if we'll have a positive impact on our economy. mrs. mccarthy, does epa consider natural gas abundance? >> epa views it as a positive for air quality, as an opportunity for us domestically. to be safe and secure in our energy supplies. our responsibility is doing it as safely as we can working within the industry. >> i talk to the railroad folks and we talked about the potential change conversion to natural gas. is it that the regulations may change impacting the, quote, payback period as it relates to the epa considering new regulations to do that? >> any regulation that epa would consider are going to be thoughtfully considered. epa is investing heavily in the opportunities to gather the data, to work with the industry in a collaborative way. we see this as a very positive collaboration moving forward. we see this as a significant opportunity to reduce air pollute tants and to move forward in a safe and effective domestic supply. i see no reason for concern that that situatio

looking at perhaps a very positive transition from diesel to natural gas, and then the work of caterpillarand general electric, producing those and then seeing if in fact it will have a very positive impact on our economy. and to the real change. ms. mccarthy, does the epa considered natural gas abundant? as a bridge fuel? >> epa views natural gas abundance as a positive for aerts quality as an opportunity for us domestically to be safe and secure in our energy supplies. our responsibility is to ensure that is done as safe and responsibly as we can working with the industry. >> one of the concerns i hear particularly as i talk to the railroad folks in that they are looking at this potential change conversion to natural gas is that they are concerned if they look at purchasing navies in fact they work that the regulations may change, thus impacting the payback period as it relates. is the epa considering new regulations to do that? >> any regulations at the epa but consider going to be thoughtfully proposed and commented on. right now i think it's safe to say that the epa is investing very