chevron. intel. supporting math and scnce education f tomorrow's innators. the national scnce foundation. pporting education and research across all fiel of science andngineering. and witthe ongoing support of these institutions and foundations.

thursday, exxon mobil, friday, chevron, chevron is the name in terms of the play. what is the trade, mike? >> one of the things, when we spoke about the integrated oil space, a good way to make a play on oil in the past and i typically mentioned conocophillips. i've said that a lot. it has proven to be a little bit of a value trap for me because it trades at five times earnings, 15 times forward earnings estimates and depends on what you think the future price of crude is going to be. reason for that, more exposure to refining, they invested heavily when crude prices were very high. they have more leverage, there's a lot of things that actually have sort of worked against it. despite the fact that i still think that maybe that's going to make a move, i'm looking at chevron with less exposure on the refinding end, less exposure on the natural gas end, and discounts on a multiple basis to exxon, which is the market leader. what i'm looking to do here is january 10, 60-75 reversal, looking to sell for $2.40 and buy the 75 call for $2.35. i'll collect 30 cents to do th

right now i think the best buy is chevron. which is why my charitable trust owns it, and why it's my largest energy position and bought it into the weakness last week. it lowered guidance at the mid-quarter meeting. it's an industrywide problem and hey, johnson & johnson said the same thing. i likes it at the current prices. chevron has the highest production growth, should come in at 5%. ironclad balance sheet, the fund future growth increased dividends. i'm surprised it didn't raise the different this year. i like the focus on the production growth. meaning the street value's production growth more than any other aspect of the business, so the more production growth chevron has, the higher the multiple money managers are willing to pay. compound annual production growth was 4%, that is very big compared to other oils. exxon is the only one that comes close. now that it's lowered the guidance, the bar has been set low. plus the guidance shouldn't have come as any surprise. it wasn't some shocker, which is why, by the way, the

exxon and chevron, two dow components. we did of course begin the second quarter earnings reporting season, and alcoa, while it did lose money, did beat analyst expectations earlier in the week. that set a positive tone. next week is going to be a very, very busy week with the likes of general electric, google, as well as goldman sachs, all reporting as well as some inflation data out next week. in the meantime let's get to all the action on the street today and what to look for next week. bertha coombs our eye on the floor of the nyse inside the big board. bertha. >> thanks very much. this has been a week where we saw a march toward nervousness and uncertainty. we didn't have huge data but we had a big auction of treasuries. they went fairly well. and we started the week with the biggest uncertainty of all with talk in washington about a second stimulus. that really sent the markets tumbling during the week and questioning, people questioning about the economic recovery. the energy meltdown exacerbated the sell-off. you h

that is certainly a good point we are looking forward to a second quarter earnings seizing chevron to get off earning season and that could be a big test for the market. it sure could be lucky said chevron this week and even moving out you have coming over the next couple of weeks have the earnings season were kicking it off in the market is teetering now i don't like the fact that the s&p 500 closed below 900 last week. technically dead does not look good so we'll see but there is some pressure in the market right now. thank you so much and we'll see you later in chart talk. thanks. a handful of states are going down to the wire facing immense pressure to pass 2010 budgets ... but the massive budget gaps have been difficult to iron out resulting in political log jams that threaten to shut down state governments. going into this year... all 50 states had to deal with budget shortfalls totaling 121 billion dollars.... because of a dramatic drop in revenues.. including sales.. personal income.. and corporate taxes. to close budget gaps - the debate has centered around tax hikes... and s

mary thompson is on earnings central for us, listening in on chevron's conference call. what are you hearing? >> here are the headlines from the call. chevron raising its production forecast by 5% or 30,000 barrels a day. 2009 should be 2.66 million barrels per day, based on a $50 price for a barrel of oil. the higher forecast comes as new projects are running on or ahead of schedule. chevron also says the cost-cutting program to eliminate $2.5 billion in costs for the year is running ahead of schedule through the first half of 2009. and the company isn't going to be reinstituting its stock buyback program. instead using any excess cash to fund its capital program and to keep its balance sheet healthy. in the u.s., it's going to be focusing on oil production rather than natural gas production, and says by year-end u won't be any new natural gas production in the u.s. because of the steep decline in price we have seen in natural gas. second quarter profits declining by 71%, earnings of 87 cents a share, we're 8 cents shy of estimates.s. this reflecting lower prices for ga

chevron was hurt by weak demand. revenue was down like $40 billion from over 80. >> also the average selling price. >> right. >> $50 a barrel from $109. >> chairman and chief executive david o'reilly saying, in his words, although our downstream results were better than a year ago, the demand for refined products remain generally weak. i think they actually had a loss in domestic downstream operations. >> the analyst we spoke to said it was the headline number. he was stressed on that. this is a day where everybody is talking about the cash for clunkers program. this morning we heard from auto nations. coming in five cents better than expected. this is the largest u.s. car dealership in america. the chain says it expects gradual improvement in vehicle sales in 2009. auto nation's ceo was on "squawk box" earlier this morning and he talked a little bit about the economy. here's what he had to say for the economy and the cash for the economy and the cash for clunkers program. >> there's no question that the stimulus pro

which, at today's price, brings chevron $1.5 billion a year from this one rig alone.ten years ago, we never thought we'd be in this deep of water, 7,000 feet, but we are. >> reporter: do you have any sense, given the progress that's been made, how much further out we'll be able to go? >> next ten years, we could be in 14,000 feet of water. >> reporter: but experts caution that no amount of drilling will be enough to make us independent of foreign oil. current fields are drying up, and they say new finds are a drop in the barrel. as we said, just one of the many issues we explore tonight "over the barrel, the truth about oil" is on at 10:00 eastern, 9:00 chen tral. >>> coming up, the fun loving wedding party that danced its way to the altar. " of lightning." whatever i did my digestive #upsets came back., but then came align withbifantis. the only probiotic clinically proven to provide ongoing protection against episodes of costipation, diarrhea,, urgency, gas & bloating. align brings peace to mydigestive system and to me. try align and discover a world of digestive pe

. >> chevron, best production growth, reports next week. >> joe? >> on thursday kroger found a bottom, that's what you use of your point of reference, go in, buy kroger. >> these integrated names, one of them total, i love vp, 7%, trading at 9-p. >> give me a giddy-up. >> giddy-up. >> thanks so much for watching. coming up next "options actions." undefeated professional boxer floyd "money" mayweather has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free. >>> welcome to "options action." i'm melissa lee. here's where the action is tonight. >> the real techs, techs check, energy, not so fast. we'll tell you why the smart money sees fear at the bottom of the barrel when oil stocks report next week. tragic kingdom, wh

when you compare chevron or exxonmobil, what do you like better? >> i like chevron better.s from a production stand point were very strong and look to be sustaining a pretty strong growth pattern in the case of exxon the miss was in large part due because their production volumes were disappointing and they look to be flat to perhaps even declining a little bit on a production standpoint. >> thank you for joining us. we appreciate it. >> coming up, earning season coming to a close. yeah. and that means earnings central, we'll say good-bye to that. we're getting bittersweet mail. we are getting ready for a flood of -- work with me, will you? we're getting ready for a flood of economic data next week. we'll ask gabelli how he's playing his portfolio. one four star hotel. two identical rooms. so why does this one cost so much less on hotwire.com? because when four star hotels have unsold rooms, they use hotwire to fill them, so you get them at prices lower than any other travel site. guaranteed. like four stars in san francisco, travelocity price $195. on hotwire just $98. the

the company cvx chevron? >> now you're talking.ere is a company that preannounced when everybody thought it was a big quarter, the stock goes down to 6162, all my e-mail saying this. why? because everyone knew chevron was having a bad quarter. now with the futures ahead of us a 4% yield and i want to tell you to buy, buy, buy. buy chevron. and "the lightning round" is over. [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting? are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up, or visit a td ameritrade branch. has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopco

with respect to deference to administrative bodies in case after case where chevron deference required deference i have voted in favor of opposing administrative -- in upholding executive and administrative decisions. >> this will probably have to be my last question. since 2005, you have been presiding judge on a panel of an appeal filed by eight states and environmental groups arguing that greenhouse gases are a public nuisance that warrant a court-imposed injunction to reduce emissions. your panel in connecticut versus american electric power has sat on that case for 45 months or nearly three times the average of the second circuit. why after four years have you failed to issue a decision in this case? >> the american bar association rule on code of conduct does not permit me to talk about a pending case. i can talk to you about one of the delays for a substantial period of time in that decision, and it was that the supreme court was considering a case, a massachusetts case that had some relevancy or at least had relevancy to the extent that the panel asked the parties to brief furt

in this case, it appears that you also fairly narrowly interpreted chevron deference when striking downgulations. if you are elevated to supreme court, do you intend to replace an agency's policy decision with your own personal policy opinions as it appears you did in both the abraham case? >> no, sir. in that case, we were talking about, in deciding an issue, whether the agency had followed its own procedures. in changing policy. we weren't substituting our judgment for that of the agency. we were looking at the agency's own regulations as to the procedure that it had to follow in order to change an approach by the agency. so that was a completely different question. with respect to deference to administrative bodies in case after case, where chevron deference required deference, i have voted in favor of upholding administrative -- executive and administrative decisions. >> this will probably have to be my last question. since 2005 you have been presiding judge on a panel of an appeal filed by eight states and environmental groups arguing that greenhouse gases are an environmental nuis

my husband and i own chevron and conoco, but with the political wins being what they are today, is it time for this western family to go with a green energy play like broad wind energy? >> i like broad wind very much, of course that's the pure play on wind. however, i think the country's not set up for wind, we need many more conduits, that's why i like quanta, pwr. it's totally specktive. chevron on the other hand and conoco, i once owned conoco for my trust, i think both of those are inexpensive stocks that are about to have a major run. now, they have refining capabilities and refinings doing badly, a lot of articles about how expensive it is to refine so-called dirty oil, the heavy oil, but i think chevron and conoco, you should buy more of those when they report, please don't be overweighted in energy, but broadwind is strictly a speck. let's go to hal in california, hal? >> caller: hey, jim. >> what's up? >> caller: a sunny boo-yah from the beaches in delmar. >> i don't know why you're calling me, maybe you're in your cell, what's up? >>. >> caller: i love your show and you're m

chevron. intel. supporting math and scnce education f tomorrow's innators. the national scnce foundation. pporting education and research across all fiel of science andngineering. and witthe ongoing support of these institutions and foundations. and... this progr was made possible by the corporion for public broadcasting and by contbutions to your pbs station from vwers like you. thank you. >> lehrer: health ca egislation crept forward in congress tay. the house energy d commerce committee rked on a bill a day afteleaders struck a deal with conservative "blue g" democrats. they said it would cut t cost of the bill by100 billion. itould also move away from using medicare as the del for a goverent insurance option. and it would exemptore businessefrom a mandate to pride coverage. house minority leader boner insisted theemocrats' bill still means ting small business, cuttinmedica and giving governmentoo much control. >> clearly, they ven't learned. the american pple don't want the government invoed in delivering their health re. they want re reforms that dre do

chevron, exxon, bp reporting today. you know, look at some of the positive numbers that came out of there, production is up, the refineries in texas are functioning better now. sure, e were down, but everybody expected that and earnings were higher than expected. so we have to look at this as an opportunity. >> you would buy those stocks today. >> i would, absolutely. >> dan, you like chesapeake and an adarko. >> yeah. >> tell us why. >> right now, if you want impact into the commodities sector with the stocks, you've got to look at the e and p stocks and natural gas. and they're all going to report this week they're getting hammered on the back of the integrated reports coming out that will be bad. i think the natural gas reports coming from chesapeake, annadarko and apache, it's going up 50% over the next four months. that's not a prediction. it's trading there on the curve now. >> dan, i thought there was a massive glut of natural gas. explain to me. and, you know some of this is because of the expectations that have

chevron, human energy.nd thwilliam and flora hewlett foundation, working solve social andnvironmental probms at home and around the world. and with the ongoing suprt of these institutions and undations. d... his program was made possle bythe corporation for public broadcaing. and by contributions tyour pbs station from viewers like u. thank you. >> lehre major hospital oranizations joined the effort today to cut medical costs. itas the latest move to help pay for sweeping reform of the health care system. betty ann bowser haour lead story report. >> reporter: vice presidentoe bideannounced the deal in washington todawith admistration officials and leers of the nation's three largestospital groups by his side. >> those o don't have insurance because they' lost their jobs or havbeen denied coverage becaussomeone in the family has a preexistg condition are throwin themselves at the mercy the peopleho represent the major hospitals in this-- inhe united states of america tay. and, as a result, ouhospitals are cr

. >>> first exxonmobil and now chevron follows suit falling short of expectations. we'll hear the conference call. >>> and the outlook for oil. the long and short-term calls on this one. we'll be right back. >>> i'm bob pisani with this week's etf 101. etfs allow investors to trade currency as easily as stocks.. with etfs, investors can bet on dollar strength or weakness by buying short on the dollar. diversifying into currencies not only broadens an investment portfolio, but also provides greater global exposure. keep in mind that currencies are volatile, and they do have unique risks. and their performance heavily depends on macro economic factors. for example, lower interest rates, higher inflation or a weaker economy may cause the currency to fall. as the same time as the currency weakenses, it may take years for them to recoup their losses. and that is this week's etfs 101. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g a

chevron.nd the willi and flora hewletfoundation, working to solve social and environntal problems at me and around the world. d with the ongoing support these institutio and foundations. nd... this program was de possible by e corporation for public broadcaing. and by coributions to your pbs station from viewers likyou. thank you. >> lehrer: presidt obama set hisights today on education reform. he announced aajor injection of federal aid to the naton's schools iexchange for results. judy woodruff has oulead story repor >> woodru: dubbed "race to the top", the program callsor schos across the country to compete for more than4.3 billion in gnts.ç >> the presidt laid out how sates and school districtsan win a pce of the pie. >> if >> ifou set and enforce rigorous and challenging, pu outsnding teachers at front of classroom, your statcan win a grant that will n only help out compete but t them fulfill thr god given potential. >>to quality few school systems have make changes th include conforming

chevron. the atlantic philanthropies.nd with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> ifill: house democrats scored a partial breakthrough today in the battle over health care reform. at the same time, senators reported their own progress toward compromise, as the president hit the road again to sell his plan. newshour health correspondent betty ann bowser has our lead story. >> reporter: they'd been at loggerheads for days with the leadership of their own party, but members of the blue dogs the fiscally conservative house democrats worked out a deal to move a bill forward in the energy and commerce committee. arkansas congressman mike ross said it would cut the cost of the house bill by $100 billion dollars and still include a possible "public option" plan run by the government. >> we protected small businesses and we insured thaté the public op

chevron. the atlantic philanthropies. ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. captioning sponsored by macneil/lehrer productions captioned by media access group at wgbh access.wgbh.org

if we get rid of the contango, chevron would be the one to buy. when oil is scarce and it's going higher, they are growing the reserve. that's what they are rewarding. >> let's move on here to the next trade. this is the trade i've been waiting to announce. >> ooh. >> because i miss that expression. i wish you could have a split screen and run the animation and show on the other side guy's reaction to that. >> love it. it's great. >> cringing. cringing. >> the obama trade. >> the obama trade, of course, cash for clunkers program was still alive despite the $1 billion that congress aiated for it, despite it drying up. the potential $2 billion injection. how will it help the automakers? ford shares were up 7%. >> this is the one we've called. >> absolutely. >> look at the stock action in ford. we've been talking about this thing since it was five bucks saying it would go to $7 and $7.50. it's way too late. bank of america put an $.50 target on it. alan mulally said he will stay at ceo until they have sustained profitability. i love that. but you kno

chevron. intel. supporting math and science education for tomorrow's innovators. and the william and flora hewlett foundation, working to solve social and environmental problems at home and around the world. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: the wrangling over health care reform resumed in earnest today in congress. there was talk of possible progress on the senate side while house democrats labored again to round up votes on their side. newshour health correspondent betty ann bowser has our lead story report. >> reporter: the focus in the senate remained on a bipartisan group of finance committee members, who've worked in secret for weeks. it was widely reported they're nearing a compromise that discards key white house priorities. a government-run public-option plan to compete with private insurance companies and a mandate for large businesses to provide coverage

chevron. and by the alfred p. sloan foundation.upporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. captioning sponsored by macneil/lehrer productions captioned by media access group at wgbh access.wgbh.org captioning sponsored by wpbt

chevron, which also trades here at the moment looking at 61.73. chevron was out offering any specific members warns the down screen operation really not hurt by apparently translations in the second quarter. also they said that the high prices really were not very good for them. the benefits of the weaker dollar really offset what happened to them as far as margins. watch the downstream players likely to suffer today. exxon late yesterday, moved higher on major find in canada with record to a well with natural gas. shah group a big loser this morning, missing on the third quarter. even as it upped its cash flow guidance. they do expect to see more money but higher expenses beat them up. citi this morning is outlining what is going on wits two units as it prepares to focus on citi corp. versus citi holdings. >> good morning, bertha. we are off to a slightly lower open here, down .3 of a percent or 4 1/3 points here, despite the fact that we've got a whole bunch of relatively bullish analyst calls coming out in tech. i mean b across the board. i kno

we are going to get earnings from chevron. it's been a big week. 50% of the s&p will have been completed by the end of the day. we will have seen recovery in the bond market. we're getting data out of the euro zone momentarily. we've seen what was a much better bond auction yesterday here in the u.s. that seven-year went off very well with about 67% foreign participation, high contrast to what we saw with the five and the two-year. we've got the ten-year yield to 3.63%. second quarter gdp is the big headline of the day. president obama, in fact, says second quarter gdp figures are likely to show the economy once again contracted, although at a slower pace. forecasts are calling for a contraction of 1.5%, comparing to a decline of 0.5% in the first quarter.r. the chain weighted index is expected to have risen. the president says improvements in the recent months in the banking system, financial and credit markets have quieted some fears about the world's largest economy. >> we have stepped away from the precipice, you know, as

chevron.nd the william and flora hewlett foundation, working to solve social and environmental problems at home and around the world. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: president obama set his sights today on education reform. he announced a major injection of federal aid to the nation's schools in exchange for results. judy woodruff has our lead story report. >> woodruff: dubbed "race to the top", the program calls for schools across the country to compete for more than $4.3 billion in grants.ç >> the president laid out how states and school districts can win a piece of the pie. >> if >> if you set and enforce rigorous and challenging, put outstanding teachers at front of classroom, your state can win a grant that will not only help out compete but let them fulfill their god given potential. >>

>> are you saying you are not bound by chevron then? to let no, absolutely not. chevron space to agency action or interpretation, but ultimately the task of a court is to give deference to what congress wants. benefit analysis in other statutes in this area, and determine what congress intended. and so we looked at the language and it said just what it said, best technology available to minimize adverse environmental impact. we looked at how congress used cost benefit in similar statutes and similar provisions or i shouldn't say similar. in other provisions. we noted that under the statutes at issue, when congress wanted the agency to use cost benefit analysis, it said so. in this provision, congress was silent but the language in the panel's judgment was the language. and so in trying to discern what congress' intent was, we came to the conclusion not that cost had no role in the agency's evaluation, but that congress had specified a more limited role than cost benefit. we described it as cost effectiveness. and in fact, we voted past our decision, asked and sen

today led by chevron leading energy stocks lower. chevron warning the second quarter that its refining margins have been hit hard by the high oil prices and the dollar weakness. ibm getting a downgrade at goman sachs even as it upgrades the hardwaresector for the weak all ten s&p sectors are down. as we take a look, housing sector has been the worse performer for the week. energy and materials, big drag. you know what's been doing well surprisingly? the hmo. those are the managed care stocks you think would be under such pressure as we talk about house reforms in washington. >> this intraday chart of the nasdaq tells the story. if this does not get better, the nasdaq could be on pace to finish its worse week in two months despite a whole bunch of analyst bullish calls. goldman sachs raising its price target on apple, credit suisse. goldman put dell on its conviction buy list. it goes down. two calls out of thomas weisel. cisco is unchanged after the analyst said the cost cuts could go deeper than the company first forecast. finally,

one that is interesting is chevron. it's a warning and not with numbers about earnings, but saying look, second quarter our refining margins were hit hard and the currency went against us and that's going to impact us. the first quarter earnings season and wells fargo moved to the upside and got everybody boy ant with the warn for example chevron might set the tone negati negatively. >> the rifing force has been a jobless recovery that of course was renewed after the last support. it's really affected the markets and really jumps out at you. in 10-year rates, it was fairly choppy until we started to slight in and you could see the look of this chart and all this while there is a lot supply and it's interesting. remember that pattern. look at the next one. you talk about a crazy chart. a month ago it was exactly where it is right now. last week for the week it's unchanged, but what a wild ride it's been. lots of volatility and the public doesn't like it, but the traders do. remember that pattern i told you about? how sim

i think we had chevron earlier in the week. conoco phillips, excuse me, and those were a disaster as well. it shouldn't come as any surprise integrated oil means a certain thing. the crash kills these guys, and it will continue to kill them, but exxon is probably cheap at 68, expensive at 74. >> if you're looking long term, their production is not growing. at least conoco is growing production by being invested in russia, chevron is invested down in latin america. exxon is invested around the world, but they had negative numbers. when the numbers came out and the stock was down at 69.60, sold it before the close. these numbers shouldn't be shocking. >> but if it's the production part you want, why not get a cleaner way to play it which would be in the services only production related? >> i don't disagree, although if you look at the oil services, a lot of people have been critical. that, in fact, demand is so low, you're seeing refining margins so low, those guys are not out drilling for more oil. i don't have a problem with th

cvx, chevron. >> now you're talking.e's a company that announced that -- preannounced what everyone thought was a really big quarter. the stock goes down to 61, 62. i immediately pull the trigger and say you have to buy this for actionalertsplus.com. now with the futures ahead of us wet get a 4% yield. buy chevron to the power of 9, and the "lightning round" is on over. fair, straight-forward pricing. that's what td ameritrade stands for. think about it. why pay investing fees you shouldn't have to? or account fees that aren't clear? like inactivity fees? or maintenance fees? it's not right. and you know it. and the thing is, the other investment firms know it. but they do it anyway. and that's just not fair or straight-forward. td ameritrade. independence is the spirit that drives america's most successful investors. has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email bu

exxonmobil, conoco phillips, chevron. >> what about the servicing companies? >> absolutely. halliburton, chamberge, they all stand to benefit. >> the reason the energy secretary was supposed to travel in the russian energy minister, the problem i just came back from russia is that there is not clear what an energy dialog would be, what the framework would be. but i want to say one thing, larry. and the russians, i can see the difference now from when i was there a year ago. the russians learned they are part of the global economy and they thought that they were decoupled from what happened in the u.s. and they realized they are in the boat of the global economy. that's a different perspective. >> how much -- what kind of oil prices does russia need to stay out of bankruptcy? >> they would probably like to see anything above $60, $70. in that range. the great mention or the great consensus has kind of settled on oil prices. >> is it fair to say they are in cahoots from opec. i hear the same kind of thing from opec, $75? >> that's a number floating around. the russians send la

first up are alcoa, pepsi bottling, family dollar and chevron this week. according to zacks research, analysts estimate a 21% drop in median s&p 500 earnings... compared to a year ago. experts say it will be a matter of some sectors reporting really bad earnings... and others reporting slightly bad earnings. morningstar analysts believe the material sector will take the biggest hit for 2nd quarter earnings....that includes companies invovled in fertilizers, chemicals, and commodities... the big drop in earnings in the materials sector is due to falling prices and volumes... because of the recession. "this area saw commodity prices down significantly.. more than 50% when those price declines flow through earnings.. we'll see those earnings down 40% in thsi sector." paul larson says of morningstar says there are some traditional defensive sectors that continue to hold up better. areas like consumer staples.. health, utlities are not falling nearly to the same degree.. still showing year over year declines... but they wll be down single digits range far bette

among them, drop in world maets, an earnings warning from chevron, a decle in june consumer sentimentwing uncertainty over thepcoming slew of rporate earnings ports. the dow decled steadily to post an 84 point loss atid-day with the ndaq off 12 points. but the rket stabilized in slow afternoon trading a turned mixed by e final bell. >> susie: they say you would never eat sausage agaiif you saw how itas made. now ply that principle to capitol hill and the wraling that goes on behind e scenes to get lislation passed. in this case, the sausagis regulatory reform, a huge fort thatill have a huge impact on our financial system as stephanie dhue ports, day's hearings focused on reforming hoderivatives are ndled. >> reporter: today'searing was mostlybout process. and it promises to be long one. policynalyst andy laperriere expects regulatory reforto take at least year, maybe two. >> what you ha here is, you have series of bills that in and themselves would be pretty major legislati, and to try to put iall together in one rge bill, re-regulating the financiasystem is a hercean task. >> report

among th, a drop in world markets, an earnings warning from chevron, a cline in june consumer sentimentndng unrtainty overhe upcoming slewf corporate earnings reports. the dow clined steadily to post an 84 point losat mid-day with t nasdaq off 12 points. but e market stabilized in slow afternoon tradi and turned mixedy the final bell. >> susie: they say you wld never eat sausage ain if you saw hoit was made. w apply that principle to capitol hill and therangling that goes on behd the scenes to g legislation passed. in this case, the saage is regulatory reform, a he effort at will have a huge impact o our financial syem. as stephanie de reports, today's hearings focused on reforminhow derivatives are handled. >> reporter: tod's hearing was moly about process. and it promises toe a long one. pocy analyst andy laperriere expects regulatory rorm to take at let a year, maybe two. >> what yohave here is, you ve a series of bills that in d of themselves would be pretty major legistion, and to try to p it all together in e large bill, re-regulating the financial stem is a herculn task. >> reporte

chevron, humaenergy. the nationalcience foundation. supporting education and research across all flds of science anengineering. and with thongoing support of these institutions and foundations. and... this program was made posble by the corpation for publibroadcasting. and by contributions to ur pbs station fr viewers like you. thank you. >> lehrer: president oma moved to "re-set" u.s relations with ssia today. he journeyeto moscow to push for progress on nuclear weans and missile dense. judy woodruff has our leastory report. >> woodruff: mr. obama's vit to moscow mark the first u.s.- ssia summit in seven years. he began by laying a eath at russia'somb of the unknown soldier. ♪ then, it was on to the kremn to meet with russian president dmitri medvedev. the pair emergelater to report they're trying for a new ra of good will aft recent years of cky relatis. >> the president and agreed that the rationship between russia and the united statesas suffered from sense of drift. we resoed to reset u.s.- russian relations so that can cooperate

chevron. and with the ongoinsupport of these stitutions and fodations. and...hisrogram was made possible by the corporation f pubc broadcasting. an by contributions to your p station fromiewers like you. thnk you. >> ifl: our lead story tonight is the statof the economy and what the federal reserve banis trying to do about it. it takethe form of an unprecedented cversation, featuring thchairman of the federal reserve bank, b bernankeand citizens from and around kansas city, ssouri. our invitation, they joined moderator jim lehrer lt night for a speci newshour forum. 's another in our spotlight cities sies designed to highlight issues that aron the minds of people around the country. we'll bshowing you the entire rum over the next three nights. we start tonight with newour economics corrpondent paul solman, who gives us so backound on the economic situation inansas city, beginning aits federal reserve ban where our discussion was recorded. >> one of 1ecognize nal federal reserve banks, congress's efforto spread the wealth anddecentralize he fed, the kansas city