another sign that troubles are getting worse - this week - shares of comerica and regions financial - were down more than 10% after they reported 2nd quarter earnings. dow jones industrial average this year some historic companies get kicked out of the doubt in the dow has seen its worst performance in decades. joining us is john he is the executive director of the dow jones indexes. he is also the man pulled up beside what is in the dow. welcome. my pleasure to be here. the talk about the newcomers cisco replacing a ig city group in gm why do you feel these companies along with the rest of the doubt components are the best mix of companies to reflect the future economy? because they represent the various industries that make up the economy. cisco is very prominent in the technology area kraft foods is a consumer goods company like general motors obviously a different kind of consumer goods but nonetheless represents consumer buying beans that they need and want. travelers is a financial company finances has become a big part of the american economy is has some trouble lately having s

another regional, comerica, also hurt by loans to resident real estate develop, however loss was less than expect. still down 7%. among the airlines continental lost 36 excludeing items, that was less than last year with stock up 4%. lastly, the low cost carrier southwest earned 8 credibilities a share once you take out items. rils were a penny ahead of estimates even as revenues fell just about 4%. rebecca, of course, you have jamie baker of jpmorgan standing by for more on southwest. back to you. >> thanks, mary. southwest as mary just told you was able to make a small profit despite the downturn in travel. it lured travelers with lower fares. joining us to go inside the number is jamie bake, eastern airline analyst at jpmorgan. >> hi, rebecca. >> the airline here luring travelers by lowering fares. can they do more cuts and still be profitable going forward or is this company going to are to find a new we to make money? >> it's not all that unusual that they were able to post a profit in the second quarter. this is the seasonally strongest period for air travel demand going into th

the city nationals, comericas. those are names you don't want to own. >> we have some reporting next week, u.s. bancorp, suntrust. karen, do you like joe's idea to go long to capital markets, go short the regional banks? >> i do, i do, because that commercial -- both commercial loans and commercial real estate, both of which the regionals like a bb&t have, you look at it today. the shopping mall reit, bad numbers, the stock was down 15%. what does that tell you?u? who lends to them? i don't know -- >> these are cumbersome transactions. a commercial transaction is not as easy to modify as a quick retail-type transaction. keep it in mind. this is going to be a big shift and is probably going to move lower and will be a lot more difficult to turn around in my opinion. >> within that space, fifth thirds and regions, i don't want to lump them in because their balance sheet has less of that exposure. >> quickly, karen, you recently took off your short on commercial real estate. >> yeah, go ahead. >> if you're a believer

others are permanently debilitat debilitated, comerica, suntrust, even though it was up, and, of course, citigroup. others are day to day, bank of america, all of these banks are priced exactly for the conditions. we don't have cures for them yet, and their immune systems are still weakened. dr. geithner and bernanke tell us not to worry. tell that to shareholders. there's one final class of stocks out there. these are the ones poisoned. i know this sounds self-inflicted but it's true by the u.s. government. not by the economy. and these stocks seem to get stronger as president obama and speaker pelosi's positions are weaker. her false from grace serves as antidote for big pharma. wellpoint, medco, express scripts, when obama's poll numbers stink, the buyers are more willing to pay up to the earnings of stocks kept down by the entire agenda. the victims of cap and trade. card check, health care reform. that's where we are right now. when you consider that every company had seemed to be teetering on the brink of life and death, it's no wonder their stocks go up repeatedly once we get the