one thing dick bove highlighted financial sectors the biggest buyers of tech.we can have the negative headwind of financials, it will come back. apart from that, you have very important product cycles, microsoft coming out with windows 7 in october of this year and office 14 the first half of next year. record high level of 4-year-old computers out there. consumers may not be spending but businesses coming back with higher interest rates and profits. earnings growth in tech sector arguably is faster than other sectors. >> dick bove, we just heard and interesting symbiosis there. if your financial sector is recovering, it helps tech and can do more business taking tech stocks public or something, i don't know. >> financials are certainly coming back. let me give you same example. bank of america a stock i think will triple from the current level over the next couple of years, they had this year or think they had $55 billion in loan losses. on a normal year, with the economy expanding, it's 6 to $8 billion. if you subtract that, you have $47 billion in loan losse

dick bove, what about the role of ben bernanke in all of this? we could potential have a change of who is running the fed at the beginning of the year, and you think that could be disruptive? >> i think it could be disastrous. he's shown himself as a dynamic leader, willing to make hard decisions, flexible in reacting to events that have occurred. in terms of that minutes that just came out, if you look at the balance sheet over the last couple weeks, the fed is already moving in that direction. it's shrinking its balance sheet, and increasing treasuries, so i think this guy, you know is really atuned to the market. by that, enmy the overall economy, and he's operating in the exactly the right fashion in those markets. >> your view would be if he ways possibly replaced by larry summers, that would be the worst? >> it's not that summers is a political appointee, it's that he's bringing a program with h him, a program which the administration has brought to congress, which is to regulate all aspects of the financial industry, so any person who woul

do i have a question for dick bove. my clients are looking more at bank of america as the barometer for the market. is that flawed concept? >> no. i think bank of america is one of the best banks in the united states. >> what a statement. >> they would be growth right now. >> you don't think that shows enormous economic power? they were dumb enough to buy merrill and countrywide, how smart can they be? >> every $8 in united states deposits are sitting inside the bank of america. do you understand the amount of power necessary to gather that much in deposits? merrill lynch will be a significant positive to this company. it has 16,000 reps selling financial products, it takes the bank out of the united states to places like india, china, japan, where it needs to be. >> they could have let them go bankrupt and bought up those reps a lot cheaper. >> i don't think so. i think if you want to get into an industry where you're not participant you have to pay to do so. >> two names you think are the very best. >> i think jpmorga

dick bove upgrading, and basic of america merrill lynch upgrading july 9th. . >> that's not fair. i work with mer di, frankly, but when she started her own shop, it takes a long time to roll out coverage. she started a new shop, she did her homework, had people working for her. so to say she's late is just not fair. there's a lot of reason to criticize her. that's not one of them, though. >> $20 in earnings for the year, if that's really the number, which is about $4 or $5 than anybody else on the street, she's not late, probably early. at ten times a $200 stock, just like difficult bove said day, maybe she's late later, but au guy said, she's on board and plenty of up side. >> spot on. >> but we're just raising the charts, because if you are a listener to this show, and we highlight dick bove's called in april, if she's not late to the game, he was right on the money. >> are we talking about whitney being right on you goldman being a great stock? and they're figuring out how to make more money. >> would you commit new money at 149-66? >> i think technically i don't love it, but y

dick bove, rochdale securities. you are a holgd of bankamerica, jpmorgan comes out strong, bank of america moves higher? >> i think so. they move higher and the other financials move higher. >> when you look inside the numbers tomorrow, it's all about what the investment banking revenue is. and key one was $8.3 billion. >> the consumer side will not be as key? >> the investment banking side, the revenues, i think, will be strong enough to offset the credit losses. >> i think the thing, and dick's brought this up even with goldman, the normalization of earnings with jpmorgan we may start to see that a little bit in this quarter. i also think that jpmorgan has stolen market share from goldman on the prime brokerage side where goldman had a big falloff. they took on bear stearns business, it was a moneymaker for bear stearns. >> the biggest negative was that goldman put up such an extraordinary number that now the bar is set so much higher, you think about that number just blew by everything by such a wide margin that

we talked with dick bove who said you could see a stock that sees $200 -- >> or $250. >> jeff says ifsh on the economy you could talk about a stock around $145 a share. steve, you watched these markets very closely. does this come as a surprise to you? >> on goldman sachs? >> on goldman sachs being able to move and maneuver. >> no. they're ripe with a tom wolf novel with what they're doing and their competitors have gone down, lehman, bear stearns and the credit markets have been revived. rite aid has again able to get junk bonds on tlut. the credit markets are reviving. i just don't think it's as thorough as it should be. the fact government could issue more debt, getting their balance sheets back in order, no surprise at all. >> we've been watching the future this morning, which are well above fair value. earlier through the course of the morning we've seen goldman sachs number, right in line. johnson & johnson indicated sharply higher after it came in with earnings better than expected, too. take a look at the dow futures.. you'll see right now up by 51 points. the breaking news do

you know, it's interesting, patty, because dick bove came out with a research note saying that goldmanapital market business, that bodes well for jpmorgan. do you feel the same way? >> jpmorgan is one of the only big things left. they also have the ben fis of taking over wamu, there's going to be a lot of up side, because they paid a bargain price. the question is how much is already baked in. if you're looking for the long term, i would buy, but for the short term, not so much. >> john kosar, what is the char saying about the xlf. >> they've had a pretty nice move here, but i think it's a bit long in the tooth. we might have another week or two of up side, but i wouldn't be starting to press it at this point. i think there will be a pullback later on this quarter. >> and the options mark, how are they positioning themselves?? is there protection buying out there? >> there remains a bit of protection buys, as the stock rallies.s. not a whole lot based on goldman sachs' blowout. >>> do you buy yum? tim? >> i think you do. people expected so much, but the margins are getting better. the