david faber takes a look. will come to the rescue of that 20% stake floating in the wind, nbc universal. anyway, you're watching cnbc "squawk on the street." don't go away. >>> let's take a look at the market and the internals. we have gotten back in the positive territory. the little market that could, i guess. dow doing investment in the major average is up 15. let's look at the internals. remember yesterday, even though we were very modestly higher, the internals were very strong. today, not so strong. modestly higher, modest internals. same story on the nasdaq. only 300 more, up and down. >>> and now let's get back to the fabled one. how are you? >> i'm all right. how are you? >> doing all right. >> yeah? >> a little chilly here. mark came in early from his break because it was a little too cold. it's first day we've felt that. >> we had the windows open at home, too, this morning. it was chilly. talk about eastman kodak. mentioned private equity m coming to the rescue. kodak stock price not showing much o

david faber goes inside the retailer., only here on cnbc. >>> coming up on the half hour. we head dunn to the big floor with steven grasso. >>> and darren rovell on the roof. >> we'll talk about my power lunch. that's coming up. before i started this job, i admit, i had some doubts. probably a lot like you. but i like what i found. i think you will too. car for car, when compared to the competition, we win. simple as that. i just know if you get into one of our cars, you're gonna like what you see. so we're putting our money where our mouth is. buy a new chevy, buick, gmc or cadillac and if you are not 100% happy, return it. we'll take it back. that's our new 60-day satisfaction guarantee. and as always you'll get our 100,000-mile, 5-year powertrain warranty on every vehicle. that's how strongly we feel about our cars. and how committed we are to you. so put us to the test-- put us up against anyone and may the best car win. [ thunder rumbles ] what is the sign of a good decision? in the world of personal finance, it's ma

so the new age of walmart with david faber, that airs tonight at 9:00 eastern here on cnbc. >> i lovevid really kind of gave him a little dab there. his answer didn't change at all, but -- >> you know, trish, when they open up these new walmarts, thousands of people line up to get jobs. >> including larry. he's like in that line. he wants those discount goods. >> he's a man of the masses. >> i go to the gardening area because of my interest in gold and commodities. >> it's a fascinating suggest. and i'm looking forward to seeing larry at the check-out counter. >> thanks for watching. >> i'll see you tonight on the kudlow report and "power lunch" is up next. >>> we welcome you to our little family that we call "power lunch." to say the least, stocks have been steady today. it's ahead of the fed's latest interest rate decision announcement out in a couple of hours. intel and at&t have been leading the dow today. we also have a $40 billion, five-year note auction. the results out next hour. >>> i'm sue herera. a special tonight, your first look at the new age of walmart. david faber goes

let's bring in david faber. thanks so much for coming out here and joining us. how do you think history will judge john mac. >> he's been around for a long time. i remember him as a lieutenant at morgan stanley, well regarded in the investment basicing world, but you have to say it's a mixed record, given the stresses that morgan stanley has gone through in the last few years. could he have done a better job in terms of mitigating the risk when it plunged headlong into the mortgage market like so many competent torts. but not nearly less enough. and, of course, took significant logging as a result. that being said, the firm is still here. when many thought a little less than a year ago that might not be the case. so, you know, mixed picture is what i would have to say certainly in terms of the last four years. >> david faber, is this a back to basics retail system, we call it wealth management now, and when the investment bankers do a deal, they don't do structured products, they do a deal and sell it through a retail system. is this a back to the old-time relig

let's go to hq, david faber has this hour's faber report. david? >> thank you. you know we've been following this kraft/kat ccadbury saga. people take over, fight it out, the bankers fight. at the end of the day we sit and wait when kraft comes with the higher bid and formal offer. that being said, can't let this week go by without pointing out a couple of things. cadbu cadbury's ceo todd spitzer got himself in a little bit of hot water. he spoke apparently perhaps too forthcomingly. although now cadbury's said he was misconstrued at a bank of america conference earlier this week. it took place in the uk. now, you know, if you're the ceo of a company that's under siege, you very well may benefit from having off the record or background conversations with reporters like myself and with investors. why you then are going to go on the record with an analyst is not completely clear to me why that was allowed to happen. but that caused the whole brouhaha. cadbury stock, though, hasn't given up much. they come out with a clarification on all of this from mr. spitzer wh

back to you. >> all right, thank you very much, david faber. a saga that so many people have been watching for so long. it really began right when the entire crisis began. we have a new report today on the state of that. nearly 12% of american loans were past due in the second quarter. now this came as actions by some of the services to keep people in their homes improved but didn't keep up. more than half of the homeowners modified last year missed two months of payments. we have details. that's a frightening situation. >> it only gets worse. report shows how poor underwriting really -- poor underwriting and dismal regulation of the mortgage market is continuing to plague housing's recovery. look at one product that the report highlights. this is the pay option a.r.m. where you can choose what you want to pay for a while. 25% of those are either seriously delinquent or in foreclosure. starting tomorrow though, new federal regulations will aim to put an end to this kind of risky lending. >> it used to be that someone would get a subprime mortga

let's go to david faber. i thought this was bihourly. >> twice an hour? >> yes, meaning twice an hour. >> i don't think we've gotten to that yet. once an hour and then a couple of other things we do. >> if haines were here, he would be very upset, he thinks it's twice an hour. >> okay. he's usually -- let's not go there. all right. thanks, erin. joe and i, less than hour ago were discussing a nice move up in gannett. interesting when you see those kinds of move, of course, that stock had been below $2 a share back during those darkest days in march when so many other stocks also made their yearly low, if not all-time lows. from the newspaper industry, it's about a lot more than simple economic downturn and some recovery we've seen. it's about seminal changes in the business, huge questions about their ability to continue to make money. but that being said, perhaps the analysts and even the investors that followed that didn't properly model where margins would be for the third quarter. things have gotten a bit better than they were for the second quarter a

david would know. he's back just in time to tack that will in the next faber report. you are watching "squawk on the street" right near the high, up 45. the futures did not foretell the trade, at least not yet. we'll be right back. eseseseseses >>> and welcome back. in the headlines at this hour, small business owners are more optimistic in a glass half full way of looking at. the national federated index rose to 88.6, up 7.6 points from its recent low which coincided with the market low in march. greenlight capital's david einhorn said he's shorting mcgraw-hill, parent company of s&p after a federal judge handed down a resulting that would allow investor lawsuits to proceed. they were trying to use a free speech sort of defense which se seemed rather feeble, but we'll see. there's always appeals. oil rising above $70 a barrel as the dollar continues to take a drop. mark? >> in fact, terry mcgraw from mcgraw-hill is down on the floor talking to people, saying -- >> he's exercising his free speech. >> saying don't worry about us. the markets and internals down 0.5 of 1

david faber is going to be in this conversation as well. i guess i just want to start off with, do you think that we're done? i mean, i know we have massive issues for the economy. in terms of the crisis, the abyss, is it really as easys a we're okay now? >> pumping $12 billion into the economy and saying we're okay? i think that the crisis of confidence has been reduced. we pulled back. as bernanke said out of jackson hole a few weeks ago that it was really a crisis of confidence that got us into this.s. i think that's true. people are feeling a lot better about that. but there are huge looming issues, as you guys talk about all the time. whether it's commercial real estate or the inability of small businesses to getting a cess to loans, to looming mbo debt out there put on during 2006, 2007. there are real issues. but i think we're doing better than we were, which is probably positive. >> lehman landed most of them on their feet, would you say? >> i would say it's about 50/50 right now. at first, it was much less. i would address that, yo

david faber talking housing. and we have the major of pittsburgh, how his city has turned around, economists ranked it as the best city in the u.s., mark, which made it good for the 29th best city in the world. we'll be right back. >>> tis almost the season. 91 days until christmas. although i've got to tell you i walked into my local lowe's store yesterday and there was the christmas display. but the shopping season is here. we're kicking off the official "squawk on the street" christmas countdown this morning. >> oh. >> yes, even we can't resist getting way out ahead of the curve and annoying everybody. nintendo slashing the price of the wi,by $50 a top to $199. the first on "squawk on the street" interview we have anyone ne nintendo's chief operating officer in the u.s., thank you very much. >> good morning, mark. >> all right. is this an attempt to get, you know, the christmas shopping season off to a good start, or what? are you just desperate? >> well, it's certainly not the latter. for us, it really is all

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david faber will have more on that. the dow up, 9502. the s&p 500 also pushing higher. the nasdaq and the vix enjoying time in the sun as well. we have matt nesto at the nyc and scott wapner. let's begin with matt. >> let's talk about that 60-point move. i like to see 100 plus percent moves in this marketplace. we have two big upgrades today. the best performer is general electric. it's up about 5%. the single best day since the beginning of july. that's up almost 120% from the march lows. they raised the price from 17 to 12 at jpmorgan. ubs raised the price target from 70. and on a downgrade is ibm. morgan stanley is hurting because ibm is still inching higher. 22 of 30 stocks in the dow are trading up. the energy stocks, materials, industrials clearly the leaders. stocks like allegheny and harley. aig a loser, the price target down to $15 per share. that is the huge getback from the stocks closing at 40 on friday. now to scott wapner. >> thanks so much. a pretty good morning for nasdaq. take a look at the names. oracle, intel, google, cisco and ebay. morgan stanley up

david faber says it is unlikely that general electric will buy the 20% stake in nbc universal. the dow tops 9800. a close above that would be the first time since last october. >>> good morning, everyone and welcome to "the call." stocks moving higher. we're up 30 points on the dow. as investors digest positive economic data. what is this about your investing now? does this mean that blue chips are back in style? we're going to talk about that coming up. >>> i'm melissa francis. we'll have an interview with jeffrey katzenberg. >>> and president obama to hold a health care rally at the university of maryland. plus, we'll discuss if the president can regain the initiative on health care reform. this is "the call." we are cnbc. >>> whatever happened to the june swoon? stocks continue to move higher. some positive economic news on housing starts and jobless claims. right now, the dow's up 29 points. the s&p is also up 2.5 points. and the nasdaq is obediently rising 3.5 points. the september swoon never happened, trish. what does it mean? >> i think you must be feeling pretty good t

david faber joins us with more.eard you talking to joe this morning saying at this point, cadbury's days at a single entity may be numbered. >> for them, the profits they need to go through, cadbury is convincing shareholders they are better off as a stand alone entity. on the uk rules, it's different than here in the u.s. they've made a possible offer. they would need to follow that up and it would be put to shareholders. that's what cadbury's facing. i think it's tough. based on at least spoken to a number of people around, you can never rule anything out. nestle certainly has the where with all to do it, but certainly they might take a look. trust for nestle would be tough. it's just unclear whether they want to play here for what would be the chewing gum franchise. >> chocolate has a lot of people saying why didn't hershey and nestle get together. >> you're right, it is a possibility. doing something on its own seems to be a nonstarter. does it try to go to private equity? hershey would probably want to play if

age of walmart david faber 9:00. love it, love, it love it, david, he is our best.e is our best, actually. and he's a good friend. walmart is not our fave here because i want a little more jurks a little more action. lowe's is cutting back getting better i like home depot better than all those. that'sy own it for actionalertsplus.com. but for walmart don't buy. it maybe the age of walmart part 2 but it's not the age of walmart part stock. and that's an important distinction. oh, man. we haven't had someone from this state in ages and they've got a great football team. sharon in north dakota. sharon. >> caller: hi, jim. a big north dakota. >> i misspoke. i remember it was your basketball team that got into march madness. i'm too focused because of all the espn college zone stuff on the air right now. go ahead, sharon. >> caller: i'd like to know about wab. >> the railroad company. this is the old westinghouse air brake. a.b. the rail industry is starting to get its mojo back but it hasn't -- the capital equipment company like rail car or trinity or lab tech. i'd much

more from rob cox now of breaking views and our own david faber. nice to have you here, gentlemen.avid, i will start with you. it does seem like it's a difficult position for mr. blankfein to be in however, although he's tried to address issues in the past about how to handle the bonus issue with employees, but can he really escape any pr backlash? >> i think it will be difficult. certainly there was a great deal of it after the second quarter and those record numbers from goldman and when people got a look at just how much they're accruing for compensation. the percentage of which, by the way, has not really changed over time, but the amount of which has given they made so much money in the second quarter. that being said, there's been a story going around, sue, that i have been trying to sort of track down, but right now it really is just theory and only theory that says that in response to that potential criticism and to try to take goldman out of the spotlight, the company in the second half of the year will accrue its compensation at a much smaller rate as a percentage of reve

in tonight's debut of the new age of walmart, david faber sat down with the ceo to find out why he's continuing that legacy. >> the company is known for strongly opposing unionization. why is that? >> actually, what we really do is we just love our relationship with our associates. the direct relationship we have. where we're a family. we don't want to see the family broken up. >> you really believe you're a family? 2 million strong? you can have a family of four and there's people squabbling. 2 million people, you're a family? >> i'll tell you, every visit i go to the stores, i feel it even more. every trip i make, i come back saying, this is the largest family in the world. and it really is that way. >> don't miss the debut of the new age of walmart tonight on cnbc 9:00 p.m. eastern. join us for this special broadcast. >>> deeply divided over the white house's financial regulatory reform proposals. we'll get into it. up next, tim think geithner makes a push for the consumer financial protection agency. >>> welcome back. treasury secretary timothy geithner testified op the white hou

over the past year and it's interesting, david faber has talked a lot about this, a lot of things were linked. it was in response to september 11th that interest rates went to 0 and americans were told to buy cars and that sparked the credit binge. over the past year when this entire crisis really began with the catalyst of a lehman brothers filing, the dow is still down about 16%. that's just since september 14th of 2008. biggest gainer, travelers. it's only up 8%. that's good for the best gainer on the dow the past year. the biggest loser, yet again alcoa. ge managed to get off that list. bank of america is second worst. in the past year we had the biggest one-day point drop and biggest one-day point gain for the dow in its history. we'll take a brief break and be right back. >>> i'm sharon epperson. we're looking at a big sell-off for oil. down over 3%. nearly $2.50 here. we dropped below $69 a barrel. part of what is pressuring oil prices here are the products part of the market. the fact we got some bills there this week. that has folks concerned about crude demand. we're looking

david faber revisits walmart in an all-new documentary on the retailer.hether leadership is implementing real change at the company. here is a sneak peek. >> how many supermarkets, in total, are there? >> there are three regional and national. housing in the area is reflective, 70,000. >> definitely people that would be potential customer. >> probably 50% art, 50% science in what we do. a lot of understanding of demographic barriers, physical barriers, drive time distances where people currently shop and what their shopping patterns are. >> what did you think of the site? >> a few things to figure out, but i think it's something that has a real high likelihood of making it to our real estate committee and potentially becoming a store. >> when you talk about a lot of potential, give me some sense as to what you mean by that. >> potential in terms of the ability to get the project done. that's one of the things we look at, how much risk we have to take and whether or not at the end of the day through the different hurdles you face whether you can actually g

david faber with more on cadbury and kraft. >> thanks, mark. one of the more interesting takeover dramas unfolding. we are now starting to at least get a sense as to how long or how much longer it has to unfold. that's because we've learned that yesterday the uk takeover panel was approached by cadbury saying, let's get a put up or shut up ruling from you, the uk takeover panel. what does that mean? it means because remember things are quite different in terms of way they are done in the uk than here in the u.s., the process by which takeovers take place. the takeover panel will now talk to both sides or get a submission from cadbury and kraft as to deciding when when a deadline should be set as to when kraft either needs to come with a formal proposal to acquire cadbury or step aside. the decision from takeover panel on that deadline probably will come quite soon. perhaps in a matter of days. certainly within a week of yesterday. so by next monday at the latest we will learn at least how long kraft has before it has to come with what is called

david has more on dell's $3.9 billion bill in this morning's " "faber report." bbbbbbbbbbbbbbbbb >>> a bit of news from legal world to bring you, could g-mail lead to jail? former bear stearns fund manager apparently deleted his entire g-mail account the day he received an s.e.c. subpoena calling for materials related to that e-mail account. the folks at google sent this information to prosecutors in the case who plan to use it in the trial against t tannin and his colleague ralph shoppy. obviously we all know who ralph was. the trial starts next month. >>> the president is starring in an unprecedented five zn morning talk shows and followed by a stint on letterman this evening. it's part of the white house's wha wall-to-wall literally to push the health care reform to the people. john? >> erin, this is really crunch time for the president. the senate finance committee is going to take up this bill later this week. mark it up and move it to the senate floor. the president is trying to provide air cover to the members of congress and democratic caucus and the sma

now, let's go back to the fabled one, david faber. good morning. >> good morning, erin. well-done last night. following up on mary briefly and then getting to fedex as well because that's a developing story this morning. it will be interesting to see, of course, what morgan stanley looks like in the future. you know b, as mary said in that report, it has not performed as well as some of its rivals. chief amongst them, goldman sachs because of taking risk down. but ultimately time will tell. here we are one year after lehman brothers went bankrupt and the -- well, just the huge tomult in the market after that and goldman and morgan amongst so many others, key amongst them became bank holding companies. it's early to say what the true motto will ultimately be what we still call the world global investment banks. even though as i said they are regulated as commercial banks at this point. interesting to note an earlier report from this earlier this week from jpmorgan in which they talked about roes declining by as much as 3 to 17% for many of these banks as they deal with th

david faber here. on this idea of mom and pop investors on investing in the long term.e s&p is down over the last more than ten kraeryears, i wonf the focus on the short term makes it difficult to invest in the long term. and so really it's a self fulfilling prophecy. >> what we're trying to do is make it possible for companies to stay the course. we're trying to make it possible for them to both be looking for those kinds of risks that are appropriate long, appropriate short, and to respond effectively amid all of this noise of short-term versus long-term. >> i think it's a great goal. i've been doing this now for 23 years. i remember following a hedge fund manager 15 years ago, check on their performance every month. then it became every week. then it became every day. now it's minute by minute. that's the world we live in. we've got all these performance based managers out there measure that performance on a second-by-second basis. i simply think it's almost impossible to imagine that we could get back to long termism. the average mu chund fund holds the stock for le

tonight at 9:00 on cnbc, david faber is going behind the scenes at the retailing giant again. it's "the new age of walmart." >> you're right. while other businesses are downsizing, though, walmart continues to expand. despite that 9% drop in its stock price. it is scheduled to open as many as 170 new stores in the u.s. this year. we got an inside look at the task of getting a 36 million square foot super center up and running. when we spent a few months watching the preparations in weaverville, north carolina. >> our associates are the front line strategists. what are we going to attack our customers with weaverville with? >> customer service. >> customer service. to xed whexceed what? >> expectations. >> you're right. >> reporter: before the customers come, there are 125,000 items to move into the store. on this day alone, over 12,000 boxes will be unloaded. their contents stacked on the shelves. in less than 24 hours before the grand opening, the curtain is finally about to rise. >> everybody excites? >> yeah! >> we're down to what we call the nitty-gritty, the details. a lo

back if 2004 you might recall cnbc's david faber took you inside walmart for an exclusive look at how the world's biggest retailers does business. now five years later he went back and he will take you back inside to see how walmart has transformed his business in this challenging global economy. the new age of walmart airs at 9:00 p.m. eastern time right here on cnbc. we're coming up on the half hour, so we'll head down to the floor of the big board and get steve grasso's take on where the markets might be heading. >>> plus, big stakes for big kms. the administration wants to bar energy service providers from potentially blocking or limiting online services and content. it says web access should be open and fair. but is it fair to the company who is paid to build those broadband lines? >>> and didn't we settle this five years ago i thought? what happened? why are we revisiting this again? we'll dive in on the other side of the break coming up. xwxwxwxww >>> welcome back to "power lunch." here are some of the stories we're following this hour. dell, the big headline, paying almost $4

i've got david faber there in washington. john harwood is listening in. michelle caruso-cabrera is down on wall street as well. john, we were struck by the number of times that he got applause. once. the only time when he mentioned the creation of the consumer financial protection agency. other than that it was a very, very quiet hall, john harwood. >> well, look. he had a chasening message for wall street. he was saying you cannot fall back into old habits. we're going to prevent the same situation from arising. and, in particular, try to make wall street through the new regulation that he's pushing for congress to enact safe for the failure of individual firms. he said the taxpayer stepped in to break the fall of some of those firms a year ago. but the goal of his regulatory reform is not to have that happen again, to make it okay systemically for individual firms to fail. >> michelle, you heard groans on the floor of the new york stock exchange during this speech. >> there was one particular r line, bill, when he said i've always been a strong believer

david faber is joining us on set. david, a lot of people look back and say, okay, in hindsight this is not all that surprising. john mack is reaching 65, the company clearly needs to lay out some sort of succession but how do you read this? >> i do read it largely that way. what i've understood for sometime, this has been around for a while he's stepping down. there was an expectation he would be stepping aside at the end of this year. that certainly built during the course of this tumultuous year. not a huge surprise in that. but in some ways you wonder whether he didn't want to try and stick around to sort of resuscitate his reputation to a certain extent and try to also see the firm on even firmer ground if i can use that analogy because it's been a difficult year certainly for morgan stanley. while it has survived and that is the key, nonetheless it's hard to argue. >> is he single-handedly responsible for his firm's survival if you look back at the firm unfolding. >> i don't know. the government. >> and goldman sa

cnbc's david faber takes a look. you did a special on walmart in 2004. at that point, they had image problems, were being criticized for wages, health insurance, environmental record. now you go back five years later. how has it changed? >> you know, the company has done a good job answering many of its critics. as you say, five years ago, we took a look at this company, then the most powerful company in the world, and it's only become more powerful, but it went through a critical period. critics took it on its low wages, lack of health care benefits for employees, on its environmental record. the company has tried to change in a variety of ways. what we do tonight is look at whether it's changed in terms of the image or whether it has really changed in terms of actual specifics. >> you know, at one point in this report, you ride along with a team that's secretly traveling around the country in this unmarked van to find places to set up walmarts. what are they looking for? >> they are looking for an opportunity for t

. >>> up next, the faber report. david takes a look at takeover talk surrounding a soft drinks marker. >>> the s&p coming off the highest lows of the year. the big question, can that momentum hold? word on street, buzz beyond as we count you down to the opening bell. and democratic senator tom carer, he's going to react to the president's speech, the public options and whether health care reform will bust a budget. they are going no n. front of his committee right now. >>> we're back if just minutes ago banking analyst meredith whitney offering a rather bleak outlook on housing. she told cnbc this morning that home prices in the u.s. could fall another 25%. >> there's no doubt that home prices go down dramatically from here or decrease from here. it's just a question of when. >> whitney also expressed pessimism about the stock market. like getting a day off on a sunny start. she said another leg down is coming. erin? >> okay. well, mark, here in washington and across the nation, health care reform still front and center. t