csx is the best run railroad.le coal carloads which everybody is worried about were down 14% from the year before export coal was up year over year. meanwhile excluding coal csx carloads were up 4% with terrific strength in industrial including phenomenal automobile lovers. csx had an optimistic outlook. to get a better sense of how they are doing and a broader read on the u.s. economy i'm thrilled to have michael ward, chairman and ceo of csx here tonight. welcome back to "mad money." >> glad to be here, jim. >> everyone wants to dwell on coal. i want to dwell on the u.s. economy. from what i heard a lot of things are going right, not wrong. >> you're right. if we take away the utility coal that's way down the carloads were up 6% in the second quarter as they were in the first quarter. nothing spectacular, but just solid, steady growth. you alluded to automotive. that's gone gangbusters, up 27% in the quarter year over year. >> that's a big part of the u.s. economy. >> absolutely. >> you have to buy them, build,

and thirdly, it is blocked by the overgrowth and the building so you can't see the train coming. >> csx says it is investigating the accident. but it turns out traffic signals and crossing gates may not be their responsibility. >> you see, local and state public works agencies often play a big role in those railroad crossings. >>> meanwhile, 911 is supposed to be here when you need help. but coming up next, some people here in our area say they could for the get new during last month's storms. we'll have the latest on that investigation coming up. stay with us. over the next four months, you have a choice to make. not just between two political parties, or even two people. it's a choice between two very different plans for our country. governor romney's plan would cut taxes for the folks at the very top. roll back regulations on big banks. and he says that if we do, our economy will grow and everyone will benefit. but you know what? we tried t that top down approa. it's what caused the mess in the first place. i believe the only way to create an economy built to last is to strengthen th

it's a csx train, a freight train and for whatever reason this suv got on to the tracks. the train, fortunately, was going rather slowly, tried to stop. it did impact, it did strike the suv and we're told that it dragged the vehicle about 30 feet up the tracks until it came to a complete stop. now, there was a woman behind the wheel, she's in her 30s. that's all we know about her identity. we're told that she has serious injuries, but that she is expected to live. now, exactly what was going on at the time this all happened. you can see that the lights here are flashing at this crossing here. exactly how this, the two came into this path of collision, that's still part of the investigation. but, there is a construction crew that's here on the scene. you could perhaps see a flag sign indicating that there's a person with a flag and down to one lane in this section. whether or not that played a role in any confusion that may or may not have happened is all part of the investigation. what we can tell you, though, is an suv was attempting to cross the tracks here in the area

and csx is posting better than expected earnings after the close. revenues in line. the company says increases in consumer goods segment helped to offset a drop in utility, coal, shipping and we'll have this ceo, ceo michael ward, who will yoin us live at 6:40 eastern. >>> bank of america, in addition to reporting today, is agreeing to pay $375 million to settle a mortgage fraud case which was brought by bond insurer syncora guarantee saying it was duped into insuring mortgage-backed home loans made by infamous countrywide. >> wears mozilla right now? >> somewhere nice and very nice? >> lewis? >> somewhere nice, not as tan, probably. do you remember angelo? he looked like a million bucks of time he came on. >> didn't even need makeup. >> we all got caught up in the hysteria. he was a butcher's son from queens or something. >> built up a great company -- >> i know. >> -- but if you see what happens -- and you have to see if bank of america is still glad it made that purchase. >> because i remember, the total number for bank of america makes the whale's trading losses

csx said the same thing earlier.know this spaebl with the possibility they could build 14 million cars in 2012? this is obscure because gm and ford are so international. the international businesses are disasters. you can't see the strength through those markets. we don't want ford or gm to pull back from europe or latin america. that would be stupd. u.s. ford, 15 bucks by now. gm, just u.s., 25. what can i tell you? domestic security. second housing. how strong is it? even the most wildly consistent housing plays are working. witness whirlpool. remarkable. it's tough to recommend standard pacific after these runs. that doesn't mean you can't pounce at the right moment. listen, toll dropped from 28 to 23. pulte sold off. you have to -- yeah, that's right, pull the trigger. we have a developing housing shortage. i can't believe i have to say it. but it's true. these are the guys with the homes. finally aerospace. it is so easy to miss the stocks because of worries about air a lines, slow downs in china. look at textro

as the csx freight train passing through this industrial and residential part of prince georges county. the crossing at decatur street sits at a curve on the tracks, right on the border of edmondston and hyattsville r the suv could be seen flipped on its side, partially hidden in the trees beside the tracks, dragged 30 feet from the crossing. >> the lady was coming up this steep hill right here around the train was coming too fast. she didn't have no time to stop. >> reporter: edison deleon saw the train slam into the suv and he went to help woman, who was conscious and talking to be taken to a weight ambulance. she told him she had just left her children at day care right before the accident. >> she had just dropped her children off. she had three car seats in the back. so i'm glad they are all right and she is all right. >> reporter: the crossing warning lights and bell were on after the collision but this crossing has no gate that drops as a train approaches. this stretch of decatur was also down to one lane with a construction project under way in the area. it is not clear if that

the suv makes it up the hill and just as it begins to cross the tracks a csx freight train slams into the suv. amateur video and photos show the aftermath. the suv a mangled mess and the mother driving it seriously hurt. we spoke with two men who say they watched it happen. did you see the lights and the bells going off? >> we not really see it. that's the problem. we not really see if the light comes on. that's the problem, sometimes works, sometimes not. >> sometimes working, sometimes off, sometimes on. it's not good. >> reporter: was it not working? >> yes, not working. >> reporter: just as we wrapped up our interviews with the witnesses who were raising questions about the signal lights, the lights started flashing. cars stopped waiting for the train. about 20 seconds later those crossing lights shut off and cars began to pass over the tracks. then just seconds later the signal lights activate once again and the freight train passes by. we showed our video to aaa motor vehicle safety expert john townsend. >> it's very confusing. when you stop here and then the lights come on and

i'm long csx here. i think you can take it one step further.t's tough to make money in the airlines, but if you look -- like the rails which i do, you can look at the rail car names. we have been in green braer, gbx. some good trades there, bad trades. the stock has come down from the mid 20s. but these guys when you see sustained momentum in the economy, i think green braer and the rails can cogo higher. >> can disney be the darling? they have been climbing all year, thanks in part to recent box officer hits like "the avengers." and wells fargo thinks there's more behind the magic. they were upgraded to outperform this morning. why today? >> well, we have been doing a lot of work on the company. as we started to look at our models, looking at the growth drivers, a couple of things occurred to us. number one, out of our entire coverage group, disney probably has the most upside to not just this quarter. but i think most importantly, to the next couple of quarters and next couple of years. >> why? >> well, a couple of reasons. for one, the park

whether it is general electric, they have a downgrade today, cat peller, csx or deere.it outer loop citi is ticking to the upside. mixed picture. jp and bank of america, downside. goldman reports earnings tomorrow. keep a close eye on that. facebook also one to watch today. stock was down 8%. 28-27 is where the stock sits. no real news. didn't need it. stock down. 8%. let's walk over to arthur cashin jr. senior executive privilege governor on the floor of the floyng. tomorrow bernanke's big. what else will you be watching? >> primarily bernanke. today the dow is pulled around like a puppy on a tether by the dollar. the dxy index every tick was reflected in the dow. europe is still driving the bus. >> that's what we will be watching. keep an eye on the euro and dollar. >> we are ready to -- extra cash. with our cash, we ar

i was looking at csx.s actually the sixth largest creditor named in the patriot coal bankruptcy filing. jeffries came out with a defense this morning saying it's not concerned. it's of minimal impact. we are seeing the rails trade as if nothing happened. >> this union pacific is having a remarkable year. remember, the rails do matter. ups has been doing very well. fedex, remember the big disappoint with fedex? the stock is higher. i'm pointing these out because to stay negative has not been a great bet. not been a great bet. >> short coal stocks has probably been a good bet. >> it has been. >> if it continues, i don't know what the coal situations look like in china. i bet they've got plenty of it. >> one of the great ironies this year, we try to shut down coal plants which then causes too expensive maybe to continue to build some things in our country. so then the chinese threw globalization, they pick up these jobs. they can pollute. whatever they want. that's okay. we're worrying about greenhouse g gase