c o m at the cme group. have a great day. still to come why a pay raise may not be in your immediate future...what average americans have to say about employers cutting back. but first...insight from two market pros on everything from the stock market to the federal reserve...that's next. the economy may be leveling out, according to the federal reserve, but it still plans on spending hundreds of billions of dollars in government and housing bonds. todd colvin is with mf global at the cme group and dan deming is with stutland equities at the chicago board options exchange. guys welcome to the program taught the federal reserve trying to signal trying to play down any fear about the economy taking of the legwork? i don't think so. i think there will be done to give us a positive statement and if you go back to in 2006 when chairman was taking the reins the word they use less transparency at this last eight men with they didn't do was give us a transparent look of what they're rethinking because they want to show positive about

c o m at the cme. a06 a07 a99 still to come medicare part d, the prescription drug benefit....the role it's playing in the healthcare debate. but first...kevin kerr of kerr trading joins us from the c-m- e....kevin. b01 the dollar has driven market certainly there is one in the commodity taking a look at the global economy cabin of perpetrating international knows that he's with us at the cme group. he mentioned ahead of the break they you think a commodity rather the oil and some of the commodities copper include an air all dollar driven not expectation of a recovering economy? is a heavy submit to the dollar. who is probably and 90 to 10 percent demand. if the body is focused on the dollar as we see the dollar we can see the commodities rallies and vice versa for pc the dollar falling on the dollar rally the commodity solve this is pretty much what has been driving the market lately not typically demand. if we are seeing not only in china but in some parishes bullish inventory of oil have recently so

c o m at the cme group. still to come from gold to silver, how metals are faring this recession. get out your pick axe..... but first....is the worst of the mortgage mess behind us...and how soon before we go back to normal....we'll talk to two market pros....after the break. at the center of the credit crunch and financial meltdown over the past year are home mortgages. one of the contributing factors to the housing boom was the ability of banks and other lenders to sell their loans off, freeing up cash to make more loans. once that dried up, so did the mortgage money.cascading into the foreclosure crisis of today. umrai gill of performance trust capital and walt schmidt of ftn financial deal in the so-called mortgage backed securities market, bonds that are backed by home mortgages. any sense of normalcy returning to the market? if we define it as a new issue market where a bank can do what he does that we are a ways away from that. " we haven't put almost a floor and is declining prices and the distress selling we've seen in the market will for the depleted bank capital. this

since then, shares of the cme group have declined more than 9%. somewhat of a concern as increased regulation could drive trades overspaepz we get the reaction from terry duffy, executive chairman of the cme group. >> i appreciate being here your. >> reaction to the commissioner's, the chairman's comments earlier. >> i was surprised when i saw the chairman here. i was going to say the only thing we have in common is red ties today. maybe we have a little difference of opinion. chairman againstler has done a really good job and we may have a lot more in common than one would think. we're looking forward to working with him and the rest of the commissioners to bring results to the market that the public deserves. >> what would you like to see different than what's on the table right now? >> i think it's important to know, maria, when we're talking about position limits especially as the energy complex, we have not seen excessive speculation have one impact on the price of crude oil products. not a government or academic study or any evidence to sugg

the liechtenstein with the set the cme. both houses of congress will be on august break starting next week and lawmakers will be spending much of their time on health care reform.. and taking their message to the people with democrats pushing for more support from their constituents by holding town hall meetings and rallies while republicans continue to voice their opposition... calling it an expensive government takeover. president obama's plan calls for a government run insurance plan to compete against private insurance companies. the congressional budget office - says it would cost 1 trillion over the next 10 years. and now - the president's closest advisors are *not ruling out higher taxes on the middle class to pay for health care.... initially, the debate focused on taxing wealthy individuals to pay for the plan. we talked to taxpayers - and found many who are against raising taxes on any income group. after i retired my ins. 800 / month.. i am paying fair share - don't support that me: what if it meant lowering your

taught colvin enough global over at the cme group. thank you tom. still to come the popularity of the cash for clunkers program has ignited lots of internet scams... what you should do to keep from falling prey to them. but first, why one author believes the price of oil will only go up from here and why it may not be such a bad thing. though oil prices have pulled back since reaching record highs over 140 dollars a barrel, some oil analysts believe there is only one direction for black gold to head in the long term: straight up. christopher steiner agrees and writes about a world of rising energy prices in the new book, $20 per gallon: how the inevitable rise in the price of gasoline will change our lives for the better." we trailed him around chicago to get his insights on a world when a gallon of gasoline costs more than 10 bucks a gallon. steiner's book is built on the premise that the rising middle class in places like india and china will want to drive around in cars like we do here in the u-s. that will drive up the demand for at a time when

c o m over at the cme group. thank you.faugh still to come chatter continues over healthcare co-ops...why one small co-op bookstore * *works * ...but is it a good idea when it comes to healthcare? but first...how healthy is the banking system...why some aren't convinced we're out the woods just yet. relatively slow but beginning to emerge.that's how federal reserve chairman ben bernanke is describing the return to economic growth. still, worries continue about the health of the bank industry, considering it continues to sit on so much toxic debt. the tarp watchdog warned this month that 10 months after the bailouts began, - quote - substantial troubled assets remain on bank'' balance sheets. michael iannaccone is an independent banking consultant with mdi investments. is always nice to see you. thank you very much. we can position has been focused almost a year now how have banks been using their capital where there belau capital? that pretty much have been using them to shore up their balance sheet. there is not enough cap

david bahoric of the tradethenews.com with us over at the cme group. dave i have an email i want to read you in a minute here. what do you make of this volatility and energy? well energy is being applied to equity. and the currencies. and you're seeing some gyration they're. the upside on wednesday was about the deo numbers. the department of energy. yes sir. we are looking for a gain in crude-oil over a million barrels and they had a drawdown of over 6 million barrels. and talk about missing the mark. that was some fuel to the upside for the oil sector. and the equities jumped on board and that it became a volley of all day long, you become stronger and and i'll follow you, now you become stronger and i follow you. it could be worrisome here because there is no real hurricane threat at this point other than those hurricanes still to come in october and november. no that is correct. it's been worrisome for me for a while. i was asked in the beginning of the year what was one of my concerns for '09 and it was oil. it was somewhere in the high forties at

messina lasalle futures group over at the cme group. still to come an a-list actress takes on a well-known soldier at the box- office...and what impact dvd's are having on studio profits. plus, the implication of 20- dollar a gallon gasoline...we take a ride with one author who thinks it could be good thing. gas prices are well off there highs over $4 a gallon, but drivers are still complaining more and driving less. but what if gas climbed to 6 dollars a gallon, 16 dollars a gallon or even 20 dollars a gallon? what changes would come then? christoper steiner offers his answers in the new book, $20 per gallon: how the inevitable rise in the price of gasoline will change our lives for the better." we followed him around chicago to profile his insights. "as we go from $4 a gallon to $6 a gallon to $8 dollars a gallon each one of those price points will bring a different change. and that's how $20 a gallon the book, is arranged." the world at $4 a gallon is easiest to recognize because well, we've already been there. and as steiner points

umrai gill with us with performance trust's capital over at the cme group. small businesses across the country are still waiting to see their share of federal stimulus money which has just started to trickle down slowly. advisors to small companies say there are many opportunities waiting in the pipeline - but won't be available until next year. however, many small businesses are skeptical about seeing much of the economic stimulus money. in a recent survey, only 3% of small business owners said the stimulus money would help their companies. more than 70% see no impact and 24% think it will hurt their business... because of higher taxes. stimulus money not hit completely about 5% has hit the streets.. where actual people take advantage.. in construction seeing it.. also woman owned firm.. construction gs and civil engineer.. there are some military contracts becoming available in september. but there's real concern that many contracts are going to larger firms... leaving small businesses hard pressed to compete... for example.. large information technology f

jason of charm that along with us at the cme group. still to come competition for your entertainment dollar. no fewer than five films open this weekend as the summer movie season winds down. but first, as the debate around healthcare reform mounts...the role technology could play in costs and care. as the volume of the health care debate continues to get louder, what may be lost in the shouting is that while technology is helping drive the cost of healthcare higher, it also could help limit the price hikes. janet marchibroda is the chief healthcarer office at ibm. gen welcome to the program nice to see you. the health-care industry is a user of technology can be more efficient and hell uses current technology? absolutely. smarter health care is going to change our experiences when we go to the doctor's office. given that advancements of smart technology will see improvements in patient care which will translate to library and healthier lives and better coordinated care and efficient care ibm is playing a critical role in this transform

we appreciated evan along with us he's with p f g best over at the cme group. still to come kids and money....why the recession sets the stage for parents to start the conversation. but first... healthcare reform remains a hot topic...from healthcare exchanges to co- ops......will they really mean saving money and more coverage? health care exchanges, a public option or health insurance co- ops. those are some of the ideas congress and white house continue debating over health care reform. the challenge for supporters has been to get those happy with their current insurance on board the reform effort while accomplishing president obama's twin goals of holding down cost increasesand providing coverage for those without. you should be able to get some help going into the private insurance market place, and buying health insurance. so we would give you a tax credit, a subsidy of some sort, to help you obtain insurance. now the problem is if you're going out there on your own, then it's much more expensive than if you go in a big group. so we would allow you to buy

peter along with us at the cme group. thank you. into town. still to come from jumbo mortgages to consumer blame...we're tackling viewer mail later on in the show but first why the united states may need to take notes from germany and france when it comes to turning around this troubled economy. the first two major economies to get back into positive territory are germany and france. both actually saw their economies growing in the second quarter while most of the rest of the world, including the u-s continued to see shrinking economies. dan cook is senior markets analyst at i-g markets. nice to see welcome back. good to be here. when determining friend doing right that the rest of the world is an? there's been less plans were because of the sized one thing they had a cash for clunkers program which is successful to help the overall economy. in germany particularly the way they handle their unemployment it but we have here they subsidize factories and companies to keep their workers on short-time bell will make up the difference ecologically-a

m f global at the cme group. thank you. still to come turning around small business...a look at how one company is weathering the economic storm. but first...some market strategy...how one pro is preparing for the rest of the year. that's next. august is poised to continue the stock rally that continued in march. despite an uncertain consumer, a weak housing market and a bruised banking industry, stocks are up 40 percent since the spring. john nowicki helps run lcm capital. always nice to see you. nice to see you as well. with a unit of the environment as we enter into the toughest one of the year which is september. that is absolutely correct. will we make of the six witch in this now a little too early argali move into markets we've gone ahead of ourselves. we are acting in the we are due for a pullback is based upon the consumer really. thing to have bottomed believe in terms of the economy but there's a lot of expectations right now on the things are continue to get better. i know since july we have been hearing expecta

he's with r m b over at the cme group. still to come the power of marketing...how some companies are using the tool to help boost business. but first....where parents are looking to save this back to school season....that's coming up after the break. it's a big week for retailers and their investors. over the next two days, stores like wal- mart, kohl's and j-c penneys will report second quarter earnings, we'll see the july retail sales figures and we're in the thick of back to school season, second only in importance to the holidays for retailers. and they're even more important this year as stores have been discounting early and consumers have been more frugal. stacy debroff runs momcentral.com. cadenzas the welcome to the program hell are parents responding to this day job market because of back-to-school spending? dark but we as parents are finding that we really need to set budgets with the national retail federation showing that we are going to spend five and $600 for each of our kids we are faced the challenge of re

traders audio doubt, at the cme group. after colonial bank becomes the largest failure of this year... experts say the closures are now picking up pace and they will happen at a much faster rate from now on.. so far in 2009, the fdic has closed a total of 77 banks... last year... 25 banks were closed.. during this crisis - bank failures cost the fdic more than 18 billion dollars this year.. and about the same amount last year... that money is depleted from the fdic's insurance deposit fund.. which consists of premiums that banks pay into. we spoke to jim cahn.. of vestian.. about which types of banks are most likely to fail. "banks most at risk.. have the most real estate loans.. specialize in lending to real estate developers.. builders of single family homes.. most at risk.. with large commercial real estate portfolios." the number of failed banks is still historically low - and these failures are more of a burden to local communities...and probably do not pose a risk to the overall financial system. the ripple effect th

there are modules that you could take in your next cme about pain management and other issues. it is not enough to talk only about more money and only reaching out to the medical students. that is just not going to get it done. >> you could not be more right. we do talk a lot about the pipeline, but every physician is expected to learn new stuff throughout the course of our careers. we all do that. all 24 specialties within the abms boards require periodic recertification to show that you have been keeping up with your knowledge. we have a tool now where we could begin to offer that kind of education and also measure it and hold positions accountable and recognize them and actually recognize them when they achieve it. so i think that your point is very well taken. you should be aware that some good news on the horizon, we've been talking about all the problems out there, is that 10 different specialties got together to create a subspecialty certificate. diane was very involved in this, in hospice and palliative medicine. medicine. so there now are board-certified specialist in

many different classes of commodities and other assets we have met the man from south to group at the cme. reebok bibs still to come some signs home prices are starting to inch up. plus... a-t-and-t accused of age discrimination...a look at how the recession is impacting older workers...that's coming up after the break. ma bell is accused of age discrimination. the equal employment opportunity commission has filed a lawsuit against at&t claiming the company has a policy of not rehiring workers who have retired. at&t says discrimination of any sort is not tolerated but the lawsuit argues some of the 50-thousand at&t workers who have retired in recent years have not be eligible to be hired back. jack heyden runs gray hair management and john challenger is with challenger gray and christmas, two job placement pros. nice to see both of you here. it will star when he was an ira and the job market for old derrick guessed? increase the level of preparation as the economy worsens. people filled and that there certainly is age discrimination now there of the survey in the fourth quarter of last ye

also rick santelli at the cme group in chicago. wonderful to see both of you guys. steve, what are you looking for tomorrow? >> i think the adp number -- >> 9.6, 275? >> can you hear me? >> as long as we are 9.7 and lower than 350 is the number we're looking for. adp allowed for us to widen that number. i think before that we are looking substantial lawyer than that. but i think adp widened the scope a little for us. >> a lot of times we have seen most recently that these numbers are coming in a lot worse than expected. what will that do to the bond market tomorrow, rick santelli? >> before we get to that. i think i have a big bit of news here. i started asking trader what's they thought but i ended up on the phone with charles biedermann from trim taps. there's something unusual going on. larry, listen to this. there could be a benchmark revision from job loss from january through the end of may to the tune of 500,000 to a million more job losses because -- larry was talking about how income has been falling. well, it's interesting. the bureau of economic analysis,

for that instead of looking for stabilization at best we have lincoln ellis he's with us over at the cme group. still to come big bucks, big risks...and the big screen. an independent movie distributor looks to stay afloat with a big release this weekend. but first....paying for college...tips for struggling parents and kids hit by the recession..what they can do to help ease the burden of tuition. as a new school year is about to begin, how about this math lesson: for every $100 you borrow from uncle sam to pay for college, it will cost you about $6 bucks. with college tuition continuing to rise, odds are better than half of new college graduates next spring will leave school owing money. farnoosh torabi wrote "you're so money" and hosts "bank of mom and dad" on soapnet this fall. as the new school year is about to begin how about this math lesson for everyone hundred dollars he borrowed to pay for college it will cost you about six bucks for college school tuition rising. new college graduates will leave school calling money thousands of dollars and i'll use she wrote you're so money a

rick santelli, aka, the big sur, live at the cme. rick, how are you doing? >> hi, melissa. indeed, this is a hot topic and i'm curious how the gang feels about it, because if you like commodities and you think things like copper are a good deal, not to mention some of the bounces of perception of a firming housing market, the wild card is the dollar. and with the good news in equity pricing, well, hey, we're going to see higher interest rates and a lower dollar because the flight to safety is reversing, and that's not even including all the issues that affect the dollar and interest rates due to deficits, and of course, the new issuance market. so, this is going to be a conundrum for the stock market. and finally, i get to ship off that word conundrum from the fixed income markets from '03 on to greenspan, now it's back to the stock side. >> rick, i totally agree on the dollar. do you see the dollar becoming a funding currency in the carry trade? >> oh, absolutely. and not to mention that as, you know, we had the most beautiful bomb shelter. when all of the credit crisis wa

won't be ailable when the flu season starts a one big test to g orgazed for and second, wh too when it cmes toschool? the mos vunerable people, st flus,people oer 50, nior citizens, this reay disproportionely impacts young people people who don't kno very much about hygie and aren't very od at it. and ere they hang out, especily in the fall, in t school, and last year, ithe springhen this hit, the school diricts shut down fo a week, 10 days. governme has said in the last week we don want you to close but we want si people to stay home. if they art coming to school we want you to parate them out and get em home. we may have to s up screening stations in your schoo. and of course they're aut to put out guidance next wk in the next cple of days for colleges because tse kids mostly don go home. so this is a massiveoperation on the school level. and we don' know how that's going to work a the government said we might chae our guidancet any time. and guess that leads to the third test that ty're facing. ani'll be quick. that i the eduational formational challenge. it's one thing to have a nationw

the nyse, the nasdaq, nymex, and the floor of the cme group in chicago. we start with bob pisani who's the eye on the floor of the nyse. >> basically, traders wanted the status quo, and by and large that's what they got. they got a little more positive comment on the economic situation. so here's why we're moving here. number one, basically unchanged from the fed statement, but more importantly, economic activity leveling out. a little bit of an upgrade from the prior statement. more finality on quantitative easing. you heard from steve, full amount purchased bit end of october. pretty much status quo for everything else. inflation remains subdued for some time and interest rates low for an extended period. look what happened. watch what the professionals are doing. the xlf, the big etf for the financials here. they moved up on very heavy volume right after the fed meeting. a little bit on the down side. then moved up again here, indicating people were pretty happy with the statement overall. same with the tech situation. here was again your market leader

let's get to the cme right now. evan horter is standing by at the cme.van, you hear this warning from warren buffett who talks about the risk of inflation coming even though we haven't seen it showing up in any of the numbers recently. how big of a concern is that in the pits? >> right now, i think we're far away from the rebound in the consumer. i think that's going to be the moving in forward momentum in the inflation argument. we're seeing a big tug of war now between the investor and consumer sentiment that moved the markets forward in the first half of the year and back into the focus of what's going to happen on a fundamental side. so i think that argument more so comes into 2010 or at least the end of the fourth quarter this year and not just right now. >> this morning, the wires are attributing this sell-off we've seen around the globe this morning to concerns about this rally we've been watching over the last six months. is that what you think is happening this morning? >> i think right now what you're looking at is there's been a massive amount

i was both angry d i was repulsed by the eception that a convicd bomber guilty of a huge terrorist cme turned a return to libya. and that brings tous tonights "lead foc." our britishpartner, itn's been looking britain's relatiship with libbia, it business intert there, leading up to last wee's decision to release the lockerb bomber. as you'll see in johnsparks' report, one isleft with the impression tt at the very least, al megrahi release can't hurt the retionship. >> repter: the analysts call it real polit eke,oing practical deals the t of give and take. the uk a libya have been doing this for abo a decade. t how influential a commercial considerations where it is business fit in this complex mi libya is an exciting new stination for british business but did that extement influenc the decision to releeabdelbaset al. megrahi, the man convicted of the lockerbie bombing. scottish and british government say, absolutely not. but al megrahi's f and new business oppornities have alwa been part of lateral negotiations. 2007, lonel gadhafi'segime sought to re-enterhe inteational community aft

alof this cmes as aew poll americans shows a slight jority, 51%, now say the war in afghanist is not worth fighting. anand gopal is a reporter for "t wall street journal" based in kabul. >> reporter: the mood i kabul was very tense. ere's been a lot o attacks in cent weeks and even today in kabul,here were a numr of attacks across the city. and the streets are mostly deserted. there's a lot of police eckpoints. storesere closed. and, therefe, we saw low mbersoing to the pollshan we would seeotherwise. the primary reaso for theow turnt is because of the security situation. basically, half the country the governme has very little contls, extremely violen the taliban has a lot of sway. they artargeted a numb of pollg places, foexample, a province in neighboring kabul lastight, they burnedown polling cents. today they rocted a bunch of lling centers. toy in kabul they dispatched suicide bombers to aack the centers. so people mostly wted to avoid thatnd they wand to stay away onlection day. because lowturnout isll in the areas which would normally support karzai, because they are all post

more tributes cme onhe irish front pes, inuding this one in theirish independent saying, "farewell to the last ince of camelo" for more on alof this, we are joined by ll-known author, play wri and radio talk show host malachy mcourt. he wasaised in limerick, ireld. thank you veryuch for being on e program. >> i very glad to be ive. glad to be here. >> ande're glad you're amongst the living a with u thks. you know, weere thinking about this, ha to believe it's been 50 years since jo f. kenne was elected prident of the united states. all these yearslater, how had the irish regard the kennedys? they've always thought of them as speal. >> in the irish households, there were most all mtelpieces ha two phographs, one was john 23, and the other was j. and they werethe most proinent pies of-- of art in any irh house. there's terrif pride in the acmplishments of the kennedys. th came from -- poverty class. and it's interting how they -- they never fort where they ca from. d that was the irish preach. >> i was going task. it's widely own that the keedy family went onto great wealth. ted kennedy

committee, they're tryg to figure out toget that nder contl, how to reward doctors for better jot cmes rather than ordering ny tests as possible. gwen: yu mentioned he gang of six, republicans, democra trying to come up th a midle ground i have a questionfor you, jeanne, from bobn california. he says arica elected a democrat majity to congress and the ite house. how in blas, he writes, did he end up with asubcommittee of equal representation by the minority? >> well, i thinkthat in the senate, th have 60 votes, but it's an ilusion nature nuber. en the democrs are not ited around one pan. so that's part of it. ey had to come up wiha compromise at was going to appeal to the broadestumber of democrats and hopully some republicans asell. and those moderate republicans who are in the egotiations in many ways reprent the oices of the conseative democrats who are not in he roo in aition, the white house from the begning said they did want bipartisan pla. if possibl they wantd to ee that creaed. and so it was a goal to try to work with therepublicans. three stepped forward, and i don't think m

rick santelli's at the cme group in chicago. rick, consensus is 550,000.ong. 576,000. this is up from a revised 561,000. so up 15k. you know, it's definitely not the direction many were looking and it all lends to that argument that maybe the stabilization is because of end of benefit cycles. if you look at continuing claims, 6.241 million. that is up just a smidge from a revised 6.239 million. remember, that revision is actually pretty large. originally reported at 6.2, so we move from 6.2, 6.24. this move just a smidge higher than that. these numbers are showing a bit of a run up in price and drop in yield on the treasuries. and they've taken away all the early morning gains in the dow futures. so one would think on the surface the markets have it right. they don't like to see these numbers increase. at the end of the day, it always seems to be about garnering an income through a job to continue to consume. back to you guys. >> rick, stay right there. chief economist stu hoffman is with us, also on set. joe kenahan and don m aarron. joe, you were talking

as long as they do not commit any terrorist cmes, i don't care. charl: you don'tare. >> history ithere toread. >> charlie: the history egypt r the last 28 years is the htory of one man, hos mubarak. th's the htory of egypt. wh is your legacy. what are you proud of. what will they y aut you when you leave >> is that i haveeen working in public service for 60 years. i took part, i saw tion. i ruilt the cntry after milita action. revamped the entire infrastructure of egypt. we aremproving education, we e expanding educaon. we are buiing and doing many other things. >> charlie: wou egypt b fe if you lef >> very safe. egypt is a large cotry. egypt has a constitution and the constituti sets clear the role each and everybody and nodyu can viole the constution. but if egypt wereone manas you say or as it i said, iouldn't have done anything. i workith the head of institutions, withhe help of th parliament much -- the parliament. it is strong now. it c bring down vernment losing the vote o confidence. it can change the budgethe way they decide, the way t pa

rick santelli is at the cme group in chicago. steve is in the studio. 7 with the consensus right around 5.5. what's most important to keep in mind as we await this number, rick? >> well, i think the most important thing to keep in mind is to thank those three guys left on the assembly lines that are sweating and doing all the work, pushing this productivity number way up. you know, it's normal, as the journal pointed out, to see this behavior toward the end of a recycle of recession. is this a normal recession? are we going to have the same number? this is an important number but productivity isn't going to aid those needing jobs. we're not making more thing, we're paring back. two seconds and the number is out. boy, it is on the high side. 6.4%. there's your nonfarm productivity. last time revised from 1.6 but only up 0.3 but in the context it doesn't matter. they're down 5.8%. last month only slightly revised. well, actually revised big, from 3% to down 2.7%. so no matter how you slice it, if you're a productivity fan, you're going to be happy. if you

. >> now to the cme, dave bahoric is standing by.ve, these auctions, how would you grade the ones that we've seen in the last month? better than people thought? worse than people thought? i mean, the market has been able to go up in the face of these, so they haven't been that bad, i guess. >> luke warm at best, i would say, joe. and the market understands that there will be a lot more auctions forthcoming. for example, yesterday you had the ten-year that was out ahead of the federal budget and then the fed announcement. i don't know how -- what kind of appetite that you would have stepping into that auction in this environment knowing those two announcements are right after you've done your business. luke warm at best, joe. >> but the markets, dave, i made the point yesterday that the equity markets, i would hope that traders, when they finally decide that the fed is going to end some of this stuff, which we got an indication of yesterday, and when they finally decide rates will go up, i was hoping the knee jerk reaction won't be, u

jim is at the cme. what do we have?oing to get 570 in the jobless claims, not enough to give us any clarity, right? unfortunately, it's not the six, it's not the four we were looking for so just back -- this number's important because remember last woke it was the one that didn't follow the script. it's the one that broke trend and came in disappointing. a lot of people were looking at today. unfortunately, not that big of a deal. continuous claims 6133, better than expected. i think the market should like that a little bit. kind of ignoring it. gdp down one, a little better. kind of a mixed bag a little bit but nothing huge. what we're going to look at today, the big thing is remember tuesday the dollar had a key reverse sal day against the aussie dollar, euro and canada. the weak dollar has been fueling this move up. unless those currencies can get up from that and recover from that blow, we'll be okay. the curious thing is there haven't been very big moves in the euro/dollar, so maybe we're seeing the dollar stabiliz

jack bouroudjian is stanning by at the cme to give us a preview of the day ahead.ox" is going to have the three horsemen of the apocalypse, as our producer calls it. what's the best stigz of the fed? should they say they're going to end it? should they say they're going to continue? which is the best thing? >> bertha, i think they have to say they're going to end it eventually. everyone is looking for a strategy. the question is how are they going to word it? that is one of the few things that we're looking for out of the statement and will be looked on favorably by the market. >> the other thing that will be critical to watch, we're going to have ta ten-year auction. do you kind of write off that auction if demand is week? >> either way we're going to have to pay attention to the 10 and the 30. we were the old all that interesting is going to streak ahead to the curve. let's see if we're surprised now. it seems different this time. we saw what happened in asia last night. we're starting to feel the market turning just a touch. there might be more knew jans playing

about that, theoots or the role othat and the roots of some of the kinds of horrific and unimaginable cmes. u tal about the women who had her lover in a cage for 13 years in the attic and find the letter out so he could kill her husband. >> that is only in l.a. kind of event. >> she was not the tiger. >> no, that is a different one, tiger phillips, the one to beat to death her, the rival for her lover with alaw hammer. bu kerry mcwilliams who wrote i think the greatkbout the early history of los angeles, said proudly wrote proudly, los angeles has the bt murders ever. [laughter] and, i think we still do and in the 20's there was this parade of them, so-- the lover locked away upstairs until he was allod to come down and kill her husband, clearly this is feeding into a james king kaine scenario. phillips, who is-kied the woman with a clawammer, escapes from jail, goes down to one the is, is tracke down by this wonderful sigir the reports to the examiner called morris lapine, who gets to her hotel in honduras and says his rationale for making her come back here so he can get a story is, who

let's get to rick santelli now at cme. >> thanks, nesto we're looking at supply today. one month bill, $35 billion. interest rates moving a bit lower. have we reached point where investors are going to buy back in the treasuries if prices move down enough? enough of a concession? that's probably part of it. i think also think there's a darker side to the increased product tifrty. many looked at that labor report as a big positive last week, but maybe having second thoughts. traders not only talking supply but housing again. you notice how it's bubbling up. moving down aggressively in different parts of the country, same parts we all know about. articles about the ginny, the new freddie and fannie. the dollar down a bit but holding pretty well all things considered, mark haines, back to you. >> rick santelli, back to you. gains in asia overnight. let's take a look. j japan's nikkei up 0.6 of a 1%. hang seng closing above 21,000 for the first time in about a year. shanghai composite up 0. 5% after four straight losing sessions. what's happening in europe? i believe guy jo

let's see how the housing data is playing out in the pit of the cme.van warner is a portfolio strategist at pfg best.com. he is standing by. what did you think of that data sfl. >> amazing numbers. came over several tens of thousands above what the analysts were looking at. especially interesting is how the market reacted. stocks initially popped. we would come back down a bit. if you look at the bonds, bonds have gained. yields have fallen. it's interesting trend where you're looking at it's great info but the market is still discounting it. yesterday when we had great numbers, the market still didn't pop as we should see. >> why do you think that is? >> i'm not sure if people are think that we're at the top of the rally or there aren't that many people participating due to the fact that we're at the end of the summer. >> what do we need here? what will get us going? >> i think what we need here again, is we need some of this cash to come back into the market. we need people to begin to realize, all right, move past the concerns that we've had earlier

let's get a check of what's going on with the markets at the cme group.on't know if we've seen you, ben -- i took my glasses off. that was pretty cool. have we seen you since we made this assault on 1,000? >> no. i was on vacation last week. what we've seen yesterday was extraordinary in many ways. for one thing, i was really impressed by the fact that the market was able to hit that 1,000 level and hold there. one thing, there's a little concern in my opinion, most of this rally we've been seeing through the 900s into 1,000 has been tech-driven, nasdaq-driven and s&ps following. yesterday i think the s&ps got ahead of themselves and the nasdaqs was lagging, which was a turn of events from what we've been seeing. right now, futures have pulled back a little bit. in my opinion, we're at extraordinary levels here. the dow hasn't hit these key levels that we're looking at around 9200, 9300, not quite as impressive as that flat figure in the s&ps as we're seeing over 1,000. we're overextended by far at this point. similar to the way we were overextended back

and at the nasdaq, the cme group, ticker cme. interactive brokers group. >> that is one of those things where, you know, you don't always realize what an acronym stand for. i'm sure we do it in other countries all the time. to the market reporters, we are open just about 120 points. bob pisani. >> and futures were lower earlier in the morning, believe it or not. important thing here is gdp in japan, was up for the first time in five quarters. japan was weak, china also down nearly 60 cents. we're down 15% in china. here's the crowd for lowe's. opened down 10%. down $2.75 right now. more important, store growth in 2010 will not be as strong as s some people anticipated. also, comparable store sales for 2009 as a whole, now expected to be down 7% to 9%. that's that important where are you going to get the top line growth from. can't keep cost cutting all the type. comp store sales 7% to 9%. previous guidance was 4% to 9%. capital one is down a little bit here. they came out with a credit card numbers for the month of july here. seq

matt of the south futures group at the cme group in chicago this morning.he equities market but the vix jumping by 15%. what was the feeling there as you saw things going through the day? >> we saw a lot of big bets, placed on the vix for a big pop in vool tillty. it's been a one-sided market over the last several weeks. you were talking early about the all-elusive pullback. i think people were looking at yesterday, is this the beginning of the big correction we'll see? obviously, today, we're seeing that's not the case. you know, so i do think we will see a pop in the volatility. it might be september, historically a very lousy month. i think there's some continuing headwind. we have most of the shorts have already been squeezed out of the market so that will be gasoline off the fire and insiders selling at high levels now. i think now or in the coming weeks in september we'll see a decent size pullback and i expect to see the market going higher after that. >> are you talking about 5%, 10%, 15%? >> i think 5% to 10% is probably in order. you know, but, ag

they said dna found at several of the cme scenes was the key piece of evidence. garcia maintains his innocence. he is a thief, not a murder. he says he will appeal. sarah. >>> now to breaking news in northwest, where nearly two dozen kids are being treated for bee stings. after two separate attacks in rock creek park today. fox 5 is live with the latest for us. tell us what's going on out there. >> reporter: at 3:00 today, a group of kids from a boys and girls club in washington, d.c. were here. they were walking on a trail when we are told that they upset some kind of nest of bees. 14 kids ended up getting stung. they were taken by what's called a mass casualty bus at a hospital just as a safety precaution. we are telling you now that there's no indication that any of the kids are allergic or have serious injuries. that was the second incident of the day. the first happened around noon when eight school kids from a private school upset that same nest on the trail, an eight- year-old and a nine-year-old were stung. they were taken to e hospital as well. here's wh

. >> the nyse, the nymex and on the floor of the cme group in chicago, we start with bob pisani, our eye on the floor. everything that was down yesterday is up today. >> i'm chuckling because we were primed for another move to the downside. they tried it right at the open and it didn't work other than ten minutes down, we have been moving up essentially throughout the day. here's what's going on here. they tried to drop the markets earlier on but it didn't happen. the street had been expecting some kind of pullback. 10% would bring it to 900. we're only 10% from the august 13th highs. i hardly call it a pullback. the bears are insisting there's no sign of consumer spending, uptick in 2009. that's going to drop the market in september and october. the bulls say we know that already. they keep bringing out home depot today. the bulls bringing out home depot ace defense. comp store sales are not positive till the second half of 2010. but the stock's up because they raised guidance. rebecca is going to have more. very important with bb&t because they came out with a secondary increasing

. >> rick santelli on the floor of the cme group. tune in tomorrow for june factory orders.actory orders need to be positive, but they're looking for a negative number. tune in, 10:00 eastern. >>> i'm steve liesman at cnbc global headquarters, where tomorrow we're watching for the adp unemployment report. economists look for a decline of 350,000, a marked improvement from the decline of 470,000 in the prior month, and the hope is that this continues into friday's overall payroll number. >>> i'm matt nesto. be watching for a busy day in earnings central. tomorrow, proctor and gamble, devon energy, transocean and baker huge. a wild card to watch will be orbit th orbit. then after the close, cisco, prudential and news corp. >> we're going to end the show with some empty calories here. the playmates at the playboy mansion are getting a new neighbor. founder hugh hefner has sold his private residence next door to the iconic playboy mansion for $18 million. of course, in this tough housing market that was $10 million below the original asking price. according to reports, the lucky

rick joins us live from the cme. rick, you heard here talking about short interest, whether or not this market is really fueled by a short squeeze out there versus fundamentals. what is your take? >> i think not only does the emperor not have any clothes y think he's surrounded by a room full of tailors. that's my read on it. who mentioned the difference between mucheral funds and hedge funds? >> that's me, rick. >> okay. i'll tell you what. you nailed it. you know, mucheral funds, the average guy, my parents, most people on this floor have a lot of money with mutual funds. how do you think they would have behaved if the mutual funds didn't get involved in this bounce? >> they would have stayed sidelined because they were waiting for the dumb money to come back on board. >> there you go. hedge funds, a different animal. i think you nailed it here. the hedge funds are looking at this in a much more cerebral way. it's very tough to think that the pricing we're seeing now is going to show up in three quarters as a panac

we state to the world that those wh atck civilian populations using systematic rape are guilty of cmes again humanity. >> lehre for more on the conflic we talked to zainab salbi, the founder andc.e.o. of women for wen interntional, an organization that aids women confct zones. s's a frequent visitor to ngo. miss salbi, welcome. the united nations hasalled theastern congo the rape capital of the wld. expln what that means. >> con has one of th worst cases in term of rape since world war ii where 900,000 german women were raped and since the genocide of rwanda where more than ha a milli women we raped. in congo, we have hdreds of thousands of women who ar taken as sexual slaves, where they are raped asrequently as possibl by rel and soldiers and where they are forced to clean and cook andarry their ammunition and food for free -- or as a slave. rape isappening on a public leveln front of husbds, in front of fathers, where they are forc to see the rape of their mothers andheir daughters, and it's happening in publicevel front of the whole community, paticularly vis-a-vis respected members

he joins us from the cme. what are you doing to hedge yourself? >> just setting the mood. melissa, what's going on? as we move higher here, the thing that most investors do is buy puts. as you progress higher, you buy the puts because that provides absolute protection. one thing traders need to be looking at where we've seen a lot of bullish action is in the slv. that's the silver atf. it's trading around $14.34 a share. it's highly correlated to gold. if you're a gold fan, you can use silver as a proxy. it's cheaper, it's slightly more volatile, and believe it or not, it's performed better this year than gold. the other effect silver seems to have is an adverse effect to the dollar. if you think the dollar will weaken, silver is a good investment for that. obviously with the bank of england making its move this morning, that puts pressure on our dollar, sending silver lower. that might provide a good buying opportunity. >> jared, got to leave it there. thanks so much. >>> "final trade" right after this. >>> all right. you see there sonia sotomayor leaving the new york cou

>> well, certainly if our al is to cover the 47 million uninsure, the money has got to cme from someplace. so we're definite going to raise money by imposing some kind of tax. you know t a qution of irness. do you wnt to simply tax the cadillac ans or do you also want to start by including people tat are older, onverage, thatave igher health-care expense on avage as well. are you talking about people withdiabetes, health disease, various cancers, he people that use the most alth care. they a using the st healtcare and cost the most cause they are sick. >> woodruff: there is tt question, isn't there, jon gruber? >> yeah, i think what yo have toemember is can adjust this p for the age of theworkers. employers know their works' ages. and insurers know e age of the people enrolled in the plan. so theax that is iosed on insurersould vary by the age of workersin the plan. yocould have a higher cap f plans with older workers. now you can vary it for the illness of workers. but member, in this new rld we're moving towards with rerm, most frmwill no longer pay bsed on t illss of their workersut ra

a larry summers cme out and saidessage received they turned it over nancy pelosi and --. >> rose: part othat also was reaction, perhapsn overreaction twhat clinton had done onhealth care. >> right. you got to becareful also speaking of jimmyarter and tip o'neill. one ofhe reasons why tip o'neill didn't like jimmy caer is because he didn't believe the new preside, this fre face from plains, georgia,as shing him proper respect. >> rose: smany presidents come twashington, especially if they haveeen gernors, somehow they want to be perceived as an outsider. >> uh-huh. >> rose: and at someoint someone help them understand in order get bills passed, in order to be an effective force, you have to havesome relationshiif not accommation to the way washingn works. >> exactly. dow have to. >> ros you understand at. >> you do ha to accommodate. the president has to deal wh congress, no doubt about it. t you start with the timulus package and i think anothe mistake cap and trade. nancy pelosi pulled barack obamanto the p and trade debate. a debate he shouldn't have been pled in to if health care re

and from the cme group in chicago, our own rick santelli. rick, what was the reaction to the number, and what do you think the guys around you say is going to happen now? >> it was huge news, and we're not sure what the outcome is going to be. today we saw the dollar respond like stock in the country on better data and improved. this is a far cry from what has been the model. >> rick, who told you that last night? rick, who mentioned that? >> we're also talking about what the dollar will do with the 150,000 number, that's not important. >> we talked last night. i said, if the number beats the street, the dollar is going to go up, not down. >> you were ahead of your time, larry, because it has been a flight to safety trait. that is important to watch mainly because the ecb and the bank of england were pessimistic. we need to pay attention. where do you think the three-year lows closed last week, they're at $3.86. >> $3.50. >> so it's twofold. dollar not flight to safety related. but exit to flight to safety, big selloff. >> can i stay with th