>> the only thing that i would hold for the long run might be a precious metals etf, a gold etf or a silver etf, only because everyone knows that if the government continues to print money to get us out of the mess we're currently in, eventually, inflation's going to rear its ugly head, and these are absolute responders to inflation. whereas other commodities have demand and supply issues, you could have inflation and soybeans could come down because there's a bumper crop. but gold and silver reflects -- >> gold and silver is safe. >> -- reflects this monetary reality. >> it's a pleasure having you both today. thank you for your insight. >> thank you. >>> g-8 leaders stressing the economic situation remains uncertain. we're heading live to italy for details, next. >>> plus, america's call to arm the u.s. air force with a new tanker fleet could resume next month. we'll hear exclusively from eads north america's ceo. this is a controversial debate against boeing, all coming up here on "the call." (groans) a lot of people are gonna kicking themselves for not buying in this market. a lot

plus, toxic etf still poison the market, but is change in the air? cramer gives you a sign of hope on the eureka moment. and later the wizard of wall street kicks it into high gear to give your stocks their final judgment on "the lightning round." all coming up on "mad money." [ queen ] want your longwear to give you more? well, get on out of that department store. and into covergirl outlast. no department store longwear gives you so many different ways to last through breakfast lunch and dinner. more choices, more shades, more outlast. ♪ covergirl diarrhea, constipation, gas, bloating. that's me! can i tell you what a difference phillips' colon health has made? it's the probiotics. the good bacteria. that gets your colon back in balance. i'm good to go! phillips' colon health. >>> by now you're used to hearing about all the negative aspects of president obama's agenda and pelosi's agenda that could, of course, lose you money, but i have found something, i have found a stock that should actually benefit from what the democrats in washington are plann

by deeming these etfs not suitable for their own clients.nd they decided to no longer sell the darned things. that's right. this wonderful investment firm made the responsible decision to drop these leverage etfs. even if it will hurt their commissions business. it will hurt their bottom line. because these are incredibly actively traded. if only every company in the financial services business had that level of integrity, edward jones & company should be the model for all the other firms because they're doing what's best for the clients. but instead it's the exception in a world where all these companies care about -- commission. this is a total eureka moment i believe. everybody in the industry should follow the example of edward jones. if the sec won't ban leverage etfs the purveyors wonhave to decide to stop selling them. i try to make viewers aware of the inherent dangers of these products but i'm also going to encourage every brokerage house to adopt the edward jones position and protect their clients from these, selling these pumped u

we try that to a sector that has a correlating etf and purchase that etf. we see if it correlates to the other parts of the portfolio. >> i want to just say to the viewers the ad touch 2000 at the beginning of the year, something some people are watching. in terms of what you're watch for trends going forward, where do you think shake out here, when do we start to see growth in the labor market? >> i don't think we'll see that until much later in the year, maybe the beginning of next year. i think it will be sort of a tepid and slow growth. i believe we'll be in a recession 18 months after this one has been finalized. be careful of the double dip. >> you're a little bearish there. >> 18 months. we've got a long way to go from a valuation standpoint. >> thank you, robert stein, for being with us. appreciate it. >> this one snuck up on us. we were up 10, we were up 20. housing numbers came up. >> exactly. >> had a big jump. up 70. now we're over 9,000. coming up, a cnbc adviser network, keeping an eye on real estate investment. >> but first, scott cohn is in.

>> there is a handful of health care etfs, but what i would look at is biotech etfs that have been on ticker symbol ibb, you might want to look at those. the tough thing is taking individual health care stocks is dfl for the average investor. you go and buy an etf, you get the diversification and get solid representation in had that sector. >> okay. and james, you're a bullish guy. you look at anything in health care or are you liking tech better? >> i'm not much for health care. i think the uncertainty created by what the government health policy and what's going to come out of that, some of that is ultimately going to be a burden on all parts of the health care industry. also the greater profit leverage elsewhere. >> give us an elsewhere. >> well, i like the industrials and the materials, dennis, the best. i like the manufacturing sector. i think that we've got the world we're going to restart with a lot of stimulus. we're going to do it with lean and mean manufacturing in this country. we've got a weaker dollar, which is increasing their competitive position. we've got low labor co

the financial etf using more than 3%. when you look at the calendar, which financials will set the tone. yes, goldman sachs is expected to do well. we have that upgrade earlier this week that saying the revenues could exceed 2007. but at the same time, they're best in class. that have ear a separate kind of breed. they used their capital differently than other financials. they set the tone from the rest of the group. another. >> jp morgan is more of a bellwether. >> okay. >> hello, mr. diamond. >> aside from that, the training revenue, i think it's a one off quarter. look amount jpmorgan. some of the aspects. a huge recurring stream and bank of america and stuff like that. but to me, jp morgan is the bellwether. >> as a matter of fact, the training revenues are too good, all of the analysts come out and say there's no way to replicate. and they said it many times. listen, we like goldman but we don't like it at the levels it currently trades at. 134, 135 gets interesting. we saw this this week. it can easily get back down

you can get an etf that wants to invest in the chinese you want or an etf that's looking at earnings coming out of brazil. so that's one way to play the emerging markets. >> we'd probably be a little broader than that, though. that's almost like buying a stock. >> very select. >> bringing it back to the broader point-f oil does go up, that does disproportionately benefit emerging markets. about a third of that asset class is -- >> we would underweight utilities and consumer staples. kind of the flip side of the risk trade. those are the defensive sectors. so you want to lighten up there. >> those people who say we're overbought, we're overbought, but yet the market keeps going higher, do you think there's going to be a pullback of some sort? and by how much? >> i don't think you'll see anything meaningful until the fall. it will be fundamentally driven, maybe some seasonals too, but i'm more of a fundamental guy. i think it's going to be a matter of the expectations for the economy and corporate america being much higher and maybe companies have a tougher time meeting those expectati

those are your two etfs is volatility buying. now a couple of sectors mike and dan referenced earlier, the tech sector, your tech etf, put buyers and protection in this rally, go to the xlf, put buyers, some protection there. where is again? energy, are we going to have a breakout here? individual stocks, there's nothing too crazy going on, that's okay. that could be a great opportunity. when things are quiet in the options, sometimes it's better to get involved. what is most fascinating this week, ets became much more popular again. people were using them to hedge to really look for different ways to position themselves. you could look at the agriculture etfs, as i mentioned the energy, the financials, the tech, pretty much across the board. >> scott, does it matter. i'm going to take the other side. does it matter it's energy in particular? we're putting emphasis on this. you want to see leadership, but can it be health care, another name outside of technology at this point? >> it could be. but as we pointed out, oil is such a

ets securities celebrating recent listing of theest etfs si silver trust. >> etfs? >> we'll find out more about the volatile exchange funds with the founder of the etf securities. at the nasdaq, network equipment technologies. nwk celebrating its recent listing on the nas. >> we're going to get to market reporter, but first your gifts from norway. >> from norway. wait a minute. what are you pulling it out of here? >> this is mark's first gift, which our viewer know is right up your alley. it's reindeer jerksy. >> what's? >> reindeer jerky. i don't know if there's any whale in it or anything like that. so i wanted to make sure you got that now. so you had the rest of the show. >> where is the camera? >> the other thing in norway, they're famous for two things, vikings and trolls. you are the epitome of a viking mixed with a troll. what percentage viking and what percentage troll? nonetheless, but this is for your refrigerator, that a stroll. >> oh, great, a stroll viking. outstanding. it looks just like you. >> oh yeah, that goes right up there on the fridge that wil

juju general etfs are excellenn way to get into t the maet.. thth'r're ry easy tpricic thehey price rereal titi. th have very high liquididyy for the mosost part. some of them tradeoptions,ndnd ththes gs are interested in that, so the diversifificaonon great, b you have some of viviually no chancecehahat an ee stock willgo to zero, whereas an individiduastock, some of those csisided bellwethers from fallen o on very hardtime. etf, b bauauset's diversifieieda basket, it's s ve unlikeke something likehaha will happen. stick arounundith u anandy we'll bringg i i an investor an fixed-income satategt to didiscs if the mkets have turur out. ininin us president a cnbcc coriribur, and seinene owow lord abbott fixed income strategists. michael, 81% these 260 investstorarareaying essentially things are looking tesss positie to better going foforwd.d. are you on t the t tea am i on thehe tm?m? cecertnly feel bbetr, rebecca now that the market is up see 40% off the lolows but i i think i'm a good deal more cautious. think this is a terrifif survey, and i t

there are etfs for that now. want to have globalized real estate investment trusts, maria, not just reits here. >> not just domestic. >> yes. >> but also in terms of that global portfolio what we -- i remember being in hong kong in september 2006 giving a very unpopular perspective. i thought decoupling was at best over blown. i thought it was a myth. there's no way you could explain to me how if your best customer goes into recession it has to affect your sales. and the canaries in the coalmine of the global economy have been the asian markets. and they really rolled over in the fourth quarter -- excuse me, first quarter and fourth quarter. so we need to put it in the context of those economies are going to do well to the extent the developed world can stabilize their economies. so i wouldn't be so quick to disaggregate the two from each other. it's a little more complex than that. >> china is export driven. 30% of their economy is exports. 30% is foreign direct investment. and only 40% is consumption. whereas w

something like the etf that trades under the ticker symbol itb. it's a home construction index fund. those are things that might be worth a look these days. >> all right, gentlemen, great conversation. thank you very much. we appreciate it, mike, ron, we'll see you soon. >> thanks. >> president obama making some comments on the economy today. find out what he's saying when we come right back. it will be about the gdp, which is out tomorrow. stay with us. undefeated professional boxer floyd "money" mayweather has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free. >>> welcome back. president obama speaks about the state of the economy just a few moments ago and previews tomorrow's gdp report. let's listen in. >> on

. >> paul: etf,ight? etf? >> that's coect. i think iould hold onto this one. over the course the next 1 months or so ihink oilill he a lot hier, simply based on supply, not necsarily demand. >> paul: so the price of uso is rectly linked to the price o oil? that's correct. which i think overhe course of the next 1 months is going a lot higher. >> paul: doou personally own the securitientionedr have disclosus to make, frank? i don't currently own them. i trade thefrom timeo time >> paul: tnk you for being with us once agn. >> thankou very much, paul, great the to seeou. >> suzanne: the federal minim wage went 70 cents today to $7.25 an hour. the increase mea a raise for workers in 30 stat that have lower minimums, but so economists believe it could prolong the recessn. e concern is employers like restaunts and retailers will nobe able to shoulder the extra cost and will beorced to t staff. the wage irease got us thinking--s there anything you can get in the b apple these days for two quarters and tw dimes? weent our summer interns to find out. >> what can we get

and that is this week's etfs 101. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". >>> welcome back to "the call" i'm mary thompson and listening in on chevron's second quarter conference call. the company is raising its full year production forecast by 5% or 30,000 barrels a day. for 2009, expected to be 2.66 million barrels per day, based on a $50 barrel price for a barrel of oil. new projects basically, the reason for the increase in production forecast, are because a number of new projects are running ahead of schedule. one -- including one in the gulf of mexico and another in cast i can stan. the company also

. >> paul: etf, right? etf? >> that's correct. i think i would hold onto this one. over the course of the next 18 months or so i think oil will head a lot higher, simply based on supply, not necessarily demand. >> paul: so the price of uso is directly linked to the price of oil? >> that's correct. which i think over the course of the next 18 months is going a lot higher. >> paul: do you personally own the securities mentioned or have disclosures to make, frank? >> i don't currently own them. i trade them from time to time. >> paul: thank you for being with us once again. >> thank you very much, paul, great the to see you. >> suzanne: the federal minimum wage went up 70 cents today to $7.25 an hour. the increase means a raise for workers in 30 states that have lower minimums, but some economists believe it could prolong the recession. the concern is employers like restaurants and retailers will not be able to shoulder the extra cost and will be forced to cut staff. the wage increase got us thinking-- is there anything you can get in the big apple these days for two q

>> we certainly looked at the etfs. power shares, water efrnl tf, if you look at the top ten stocks in that etf, a lot of the companies have only a fairly small percent of their business in water. trying to invest in water stocks really puts you into -- because it is a government-dominated industry, puts you into smaller companies, utilities, pipes, repair companies, engineering companies, pipes and valves like michael mentioned. you kind of, i think, to benefit you have to pick your stocks. the etfs are one way to play. they are not exactly a pure play. >> michael, do you have a favorite? >> we like american water works right now. it trades at a discount to its peer group in the u.s. utility space. they are going to benefit from increased rates. we like that one. pretty much best within our utility group. >> we've got to leave it there. thanks for joining us. >>> it wouldn't be a g-8 meeting without some attack on the dollar, right? we'll try to play how to play the greenback next. >> round two of aig bonusgate. seekin

this is an industry that's really showing absolutely unending growth. >> i'm glad they named their etfs that are understandable. some can be absolutely ridiculous. your next trade, jim? >> my next is to buy canada. if the canadian dollar, etf, ten days ago we saw the unemployment number, there was a risk aversion kind of thing, and basically sold everything else to hide out. as time's worn on, we've seen some earnings that aren't as scary as we thought they were. canadian dollar has had the most decisive and dram tick move of all of them, and then a follow-through as well. canada is a young exporter, raw materials nation, and it looks like the place to be. so that's mine. >> thank you very much. jim peter and don't forget to catch it fridays at 11:30 eastern. >>> just ahead on today, something special, nfl legend steve young raised more than a billion to photoequity deal. there's another crock cuss. we're going to find where he's looking for deals and there's an interesting roster on this particular fund. >>> and the president can save 4 $4 billion with the stroke of his pen pen, and by

etf holding collecting a cool $31.7 million this week alone.although it has had a rough go of it. >> still need to make up the $13 billion hole. >> all right. >> i talk frequently on the show about getting liquidated. i got liquidated in natural gas a week ago. since then it has gone nothing but up. karen talked about owning natural gas. i think you should own something related to natural gas. that would be the coal names.s. take a look. >> jared, final trade? >> aig. it's way high. you can't short the stocks. it's hard to borrow. look at the february 23 for about $12. they have a lot of debt. i have no idea how they'll service it. >> karen? >> furthering joe's point about natural gas i like the oil and gas exposure but more gas and i do think we have seen a bottom. you know, we get a hurricane -- i'm going with that. >> two things.. i did not know how low nokia got. now to hear $13 i tend to like nokia a little more and i'll tell you why. keep an eye on fun corp, oil fans.. got to keep an eye on it. >> thanks so much for watching. see you back

if you want to play tech but don't want just one individual stock, look at an etf. we have the best i can picks for you. >>> in addition that what about playing the options market ahead of some of these earnings? the options action you need to know about. >>> the president is going to speak out on the health care plan. that is on our watch as well. trish, back to you. >> okay, sue, looking forward to t thank you so much. >>> going to take a quick break and then business competitions, out of this world. jane wells has the story on this one. hi, jane. >> hey, trish. we used to have these things called slide rules. where were you 40 years ago i was in front of my tv with my 80 family, jawsed. 50 and now, trying to get back to the moon without nasa, when we come back. tdd#: 1-800-345-2550 "the dust might be settling... tdd#: 1-800-345-2550 that's great, but i'm not." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with doing nothing, you know?" tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking about moving my money. tdd#: 1-800-345-2550 i

the etf that contains the oil stocks, xle, his's looking at it versus this, and this gives you exposure, by the way, to the s&p 500, this is the chart that compared the stocks, and it's approaches what risk calls the 200-week moving average. that's a technical measure of the long-term trajectory, to rick, this chart is screaming energy is going to start bouncing back relative to the s&p right here. he thinks you should -- that it should become a bigger part of your portfolio. he thinks you should overweight energy. when the line hits here, he wants you to pick up more energy stocks than you might have had otherwise. normally we use technical analysis as a tool to figure out what the big boys are doing based on the clues they leave. i want you to understand the nature of rick's call to tell you how the big voices think. energy is 12.4% of the s&p. if you think that rick's energy call is right, you would want to overweight the group, to have centering stocks make up more than 12.4% of your portfolio. that way you would have more energy exposure than the s&p 500 does, and ricket is rig. nr

>> the transport via the iyt-etf. it plays off of tim's idea that oil is weak. i think oil could be weaker. >> i do too. >> diesel demand is at lows we haven't seen in a year. you have seen trucks down and rail car loadings down. this week you saw sales are dismal. retail sales with the weak number. i don't see much going on. >> yeah. thanks so much for joining us. interesting ideas there. have a great weekend. >> you too. >> just ahead on "street signs," finally a way to make money on switer and investing either. not by advertising and the money managers have found another way to make money. the negotiations on the hill are starting to get ugly. will the o bam on plan hold on to the middle class. "street signs" are back after the break. >>> the television ads help to defeat hillary clinton and convince middle class americans that health care reform would be bad for them. >> things are changing and not all for the better. the government may force us to pick from a few health care plans designed by bureaucrats. >> having choice wees don't like is not a choice at

in fac the ung, i was talking with donion, he owns this etf space. he's been saying over and over again the money intong has moved tural gas higher than it should be. think natural gas should be at three. do notant to lump in the natural gas stocks with e oil stocks, but thmaet will. they're all going downpete, i don't want to outthink this. we have anothelevel of decline inhe oils cause we know that oil belongs beeen $45 and $50. that when the stocks were at levels lashat's where oil wa i think that we e that kind of decline. we're t done going down. i am not recommeing speculatg the oil patch or the natural gas patch st yet. schlumberg may be 46, 47, i said yesterday i thought it could go into the 50s. i think when some of t oils yid huge we'll get back in. but right now wee holding off. boo ya, mike. city of winners. for the most part. for the mostart. cubs? >> cler: you know, jim, i ally appreciate your educaon and last week you were talki about pe ratio and how they relate t growth. >>es. >> caller: and i've been following the stock, rarian medi

ung,hehe etf that tracks e naral gas commomodi w wasalted forrewew pending, that thth have decided d th'r'reot g gngng to issue any more ares bececau they've alreadad i issd d l the shararesututstding. therers s be a lot of ntntversy about theeimited number off srere and the impact that has had on theommodity itlflf. a huge dececli in natural gas prices, down over 7ear toto date. ckck, you i in chchico.o. >> boy, shonon it brings up so many questionon etmaybe having pititns as g g as s seef these commodities. far as the ten-yeaear, look iraday chart. we're atat the lowest yields of the day right now. another thining inin onon, we j mamadeewew lows i in e equity markets. even though there are a a lo of stories rererdrdin supply, and wel have $19 billion r reoned tens tomorrorow, the akakne in eqtitiesthe nototnn that grereen shoots weren't'terery green, that's t takg i totoll akak economies td to s sower intererestatates if you looooatat that muimimth tenurerewewe cld close att the lowest yieie in aboutixix weeks on a ten-year note daday. whwhisis that important?t? tomorrow it's goini

. >> the lef regged etfs are a whole different world.hem safely for about five minutes and after that -- >> did you read this letter from cerbrus. it kills us we are lost money and been part of the problem for you. we feel an obligation to you to turn it around but we don't know when or how much -- >> we're normally a bright spot in these times and bad markets but in this case we were part of the problem. >> can i jump in? you didn't upset me but we have to talk after the commercial about your comment. >> okay. >> no, i'm kidding. last year -- >> you're doing okay. i mean -- >> you know he's doing okay. >> life's not that bad. >> you do have clothes on. >> there's a correlation with who you invite on here, you know that, right? but if you look at hedge fund investing, last year was -- this is going to put it mildly, but was not a bright spot. we've been writing for years, and we're not the only ones, that hedge fund were more net low on the markets in general than had been let on. they are partially about extra return, partially about ar

do i want to do that through etfs, be buying companies out and out in china?a? do i participate in the growth happening in emerging markets. >> for most individual investors it's very easy to participate in atfs or mutual funds. a lot of our clients are invested in their 401(k) accounts and retirement accounts and there are open and mutual funds that it's easy to get diversified exposure to emerging markets and etfs in that region. >> we've got a profit out of intel of 18 cents a share. the estimate was eight cents a share. the stock is halted right now as news is pending. $7.28 billion was the stimtd on revenue. again, profit estimate of eight cents a share and the earnings just coming out at 18 cents a share.e. just from the looks of it, this looks better than expected. we don't want to rush to judgment here because the revenue number was $7.28 billion in terms of estimates. we're waiting on more information and again, the stock is halted as we receive this information that is just coming across. let me get you a quote. $16.83 a share is where the stock closed

product so they have to roll those futures for the uso, they have to roll for the ung, the natura gas etf and that's creating this disconnect and unwaiting of the supply and demand. otherwise, you reach equilibrium and you have a market. when you get it out of whack. >> don't you think natural gas being a cash settlement contract has a bit of a different dynamic than the physical delivery that brings your religion every delivery cycle like crude oil? weigh in on this, gang. >> well, i think the difference in natural gas is more players gravitate to the cash than they do to the physical. natural gas cash happens to be a very, very large market, so i agree with you. financially settled is much different than physically settled. physically settled, you have a little bit of concern once exploration comes around. >> the bottom -- two points on this real quick, number one, we should look at the treasury who has not defended the value of our currency over the last three or four or five years. >> crying in an empty room and empty house. >> john, i know the answer i get on this desk, but i want to

a new silver etf introduced today. some analysts attributing that to part of the gain we got in the silver market. rick santelli, to you in chicago. >> well, thank you, sharon. it's no surprise that we're seeing what is turning out to be a huge day in equities. turned treasuries into a huge day. and catching many big traders flat-footed that are going the wrong way on being long treasuries. now, if you look at a five-year or especially a ten-year on these intraday charts you can see that they've both caught up. the five-year was leading the way. it's up close to 20 basis points. 10-year's up close to 20 basis points. if you look at a multimonth for the ten-year, these are the highest yields. we haven't closed above a 3.70 yield since the 19th of june. but what's interesting is the close is always what traders look at. but intraday we were about at this level on monday before everything reversed going into mr. bernanke's two days of testimony. some things i'm hearing on this floor, very unusual. some of my buddies on th

business and i would guess that etf trading might be the kind of thing that would get in the way of that luxurious trading he also talked about. >> i think you're smack on and it's also a good time to be politically correct with what you say or what you do which is what goldman sachs did today by paying back t.a.r.p. and essentially hitting the government's bid on warrants that jp morgan and morgan stanley said they wouldn't do. it's time to say and do the right thing. as much as goldman sachs is under fire for the enormous profitability they have that's the right thing to do so i think what blackrock is doing is verbally piling on. >> it's highlighting what steve and i have known for 20 years. you never take off holidays on the trading floor. why? because holidays are the best trading days to be on the floor because no one else is there. you're the liquidity. right now that's what goldman sachs is. they are the liquidity, one of the few games in town because everyone else basically blew out. >> is that what you still do, you don't take holidays off? >> steve, would you cover for me

that's error. 1% loss in the index, 4% loss on the 200% etf.you can get an error that is significant. here's a quick example. look at the s&p 500 versus the s&p 500. this goes to twice the performance. it's up 10% and see up at the top? the index is up only 15%. if you do it in just a month, it attracts just about perfectly. the s&p up 8% and that's what you would expect. you need to know what you are buying. back to you. >> that was a great prim or things that confusion a lot of people. >> conservative democrats and liberal dem dos not. they are not on board at all. how is it going to shake out? we will speak with one congress person about it. >> we are tracking the rally minute by monday and adding on to the advances. we are up 156 points on the trading session. meanwhile, win shares up 13.5%. the operator posting a surprise in the second quarter profit. cost cutting efforts. the results back in two minutes. bull market or bear, traders are always hungry for ideas. they find them at td ameritrade. trading's all about strategy. and strategy's.

also, exchange trade a ton or etf allow you to take part in market rallies without the risk of individualtocks. remember, you don't need to be a street insider to make money when times are tough. class dismissed. >>> welcome back to "fast money." live at the nasdaq market site. hey, i think i like this shirt better than the one in the commercial. you're always a dapper guy, buddy. always dapper. >> i'll match you, joe, i think he's making fun of you. >> no, he's not. >> believe me, i'm not making fun of anybody. railroads, every time i look at the landscape around the globe, i talk railroads, hey, heck with that, let's talk about norfolk southern reporting after, hey, after the bell, they're doing out on change. the revenue was a little light. >> a little light on the top line, the rails have had a huge move, it's a great-looking side of the economy, see how we're improving. i don't know, i don't know that you can stay with this trade, csx, reported a little bit better, they've moved a lot right here. these are one of the sectors -- >> get off the rail. >> i think b & i we've talked about

continue in washington with the cftc on position limits, we're hearing right now that the ung, natural gas etf is going to reduce its positions in natural gas futures on ice. back to you. >> sharon epperson, thanks so much. taking a look at today's business headlines, the latest federal reserve beige book report shows signs of stabilization in some regions of the country. four areas, new york, cleveland, kansas city, and san francisco are seeing some stability, while chicago and st. louis are reporting the economic pace of contraction is moderating. still the central bank says economic activity remains weak and the labor markets are still very soft across the country. the commerce department reports durable goods orders dropped by a much larger than expected 2 1/2% in june. it's also the largest decline in five months because of falling demand for automobiles and commercial planes. and the mortgage bankers association reports mortgage applications fell 6.3% last week. it's the first time in the last four weeks applications have declined. that's because rising rates for 30-year home loans inche

the xhb, the home builders etf, traded eight times its average volume and it was pretty bullish. and ahead of today's number, that looks like a pretty good bet. and in fact the options activity in all of the home names was really, really heavy. it was last week. it continues to be. what's interesting to note about it, it's probably a little more guarded in the individual names than it is in the etfs. so i caution before everybody gets too enthusiastic about what the implications are with the numbers that came out today and with the activity that we are seeing, this means we're on automatic pilot. >> i was going to ask, is it a trade in here or is it too late? >> there have been a few, michelle. standard pacific, for instance. that stock is up 40% in the last five days and that's one of those stocks that mike's talking about when he says, you look at the etf, you get broad exposure. individual stocks are going to outperform or underperform. that was a $2.50 stock five days ago. it had a significant -- >> if i own staundard pacific, what do i do? buy a little protection on the down

broadcom and xlp, consumer staple etf earlier this week but the interesting thing, even though people planted their magazine in the ground and bought option, some put, some calls, it didn't slow down volatility coming in. the vix has come down despite the fact we have important names to report so i think that tells us as much as we need to know about option, people are much more comfortable. they're happy selling options despite the anecdotal buying that we've seen, obviously more sellers because volatility has come in substantially. >> stacy, what's your feeling on the whole big move we saw this past week, 7% across the indices. >> it feels like if you look at the way people are positioning the options steels similar to what we've seen over the last couple of weeks. we saw some -- one of the differences is people were buying back some of those calls and rolling them out. brocade, saw them buying those back and that was amidst takeover chatter. one thing i would stress about this week, what it really felt like people were talking about is did you see intel. did you see ibm? did you se

so i buy etfs in the portfolio i manage.i've been focusing in on the small and mid-cap etfs. >> what's your take, jon? >> i think there's obviously a lot of cyclely bullish factors. the amazing ability for corporate america to have profits with falling revenue. >> they cut costs, basically. is there a point where they can't cut costs any farther? >> i think the secular portion remain predominantly negative. that puts an upside cap on this market. we couldn't reach 1,000 as goldman sachs, 1100 on the s&p in this bullish cycle. but when you have things like government expanding its taxes and rising commodity and energy prices, and most importantly, this big overhang of debt that has to be worked off, these are secular forces that, if put pressure on consumer prices, jobs, wages, business investment, and will for some time to come. >> what do you do in light of that? >> you still can make money in a secular market but you have to identify what the underlying problem is. 66 to 82, it was inflation. and it was the inflation hedge

the bearish side of all of this is the pro shares, ultrashort, semiconductor etf, which is two timeshe inverse of the daily move there. and, sue, let me point out one quick thing because i know we're talking a lot about health care. so we walked around here. art cashin is faszing comments around that while health care isn't the catalyst to the move today, it's none the less, you know, a supporting, you know, factor is why the market is higher. i think pretty much what we expected and what we have seen throughout the day. wanted to point that out to you. >> thank you very much. up 181 points now on the dow. >>> straight ahead, signs of life. existing home sales are up for the third straight month. maybe one of the reasons we see stocks moving higher. how is the high end holding up though? we're going to head live to the hampton, darling, to see how the real estate of the rich and famous are doing. >> in a few minutes, tens of thousands of kids are in summer camp, including mine. should parents be worried that, what are we, the swine flu will be sweeping through the bunks. we'll have t

>> i have an etf that speaks to the chinese consumer indirectly. pej. it's very difficult to get exposure to the chinese middle class that is growing faster than any other middle class on the planet. this is an etf that has exposure to consumer discretionary and three of the largest holdings within this etf have significant growing portfolios in china, specifically starbucks, walt disney, companies of that nature. and intrachina trade and tourism is absolutely booming. it can take years of double-digit growth. this is a way to get exposure for that. there is no real pure play for this concept of this theme. >> peter, does it concern you at all the instability in the country right now, the fact that the president of china had to leave the g-8 to attend to that? >> we spoke about that last week and that is a great point. that is in the western part of the country where very little consumer discretionary capital is actually in the hands of the chinese people. that is an issue that has more to do with the independence of a province, a strategically signific

that's the beauty of etfs, in my opinion. i mean, this is one space where we as, you know, managers of 30 or 40 stock portfolios, will never buy an individual biotech company. in fact, i think people who fool themselves buying a big diversified biotech thinking they're getting diversification, in an amgen, i think that's wrong. biotech etf gets you that exposure. >> but doug, that said, there have been several grand slams in just the last week alone in biotech. the sector has been on a roll. you know, human genome sciences has been up, just got off the lupus drug data. unexpected breast cancer data. so this sector right now for whatever reason, as you say, it is a gamble, it is risky, but right now it's on a roll. >> well, mike, i think life sciences this morning is another example. you mentioned that stock being up 6%. i mean, here's the deal, the people that buy biotech go for earnings momentum. earnings are better. they look for momentum in price. the breakouts that we're seeing on the relative strength and absolute price,

regional banks are heavily, heavily shorted sector right now so the play is to stick to the etf which is the kre which is the regional bank. that gives you the short exposure. the reason you want the short exposure, jamie diamond, karen's boyfriend said it clearly. you still have banks and the regional banks are the ones that have the commercial loan and prime jumbo mortgage exposure. and that hits, melissa, that hits 6 to 12 months after the initial stages of the crisis because they can hang on in the beginning but now you're going to see the effect of that. that's why the regional banks. 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 --

as the growing exodus from leveraged etfs is a good thing? or overreaction to an otherwise valuable tool? simply because of the l-word in the name? >>> and the summer rally returning with the vengeance. the highest off 172 now. more insight on to why? why this much? why today? we'll find out. introducing the all new chevy equinox. with an epa estimated 32 miles per gallon. and up to 600 miles between fill ups. it's the most fuel efficient crossover on the highway. better than honda cr-v, toyota rav4 and even the ford escape hybrid. the all new chevy equinox. >> just like it went to 120. >> right. potentially. now, suppose that thing dropped 10%. the next day. as it turns out, the money you will make on a two-day basis will be different than if the bank index goes up 10% and then down 10% in two days. a lot of numbers, and you'll see that it will track slightly differently, because they reset the numbers. if it's also 100 to 120 -- >> why? >> well, what are they doing? is. >> yeah. >> because the idea is, every day they're meant to be exactly

volume picked up and this was the etf what the professionals buy. huh the dollar moving down and the jobless claims. we vnlt been at 1,000 since november 5th. up 2008. we have to go through with the 30. i give it a b plus. we had a b plus auction with the traders i talked to. an a plus. what am i talking about. the short end didn't move much and it's high. we broke under the 360s in a 10-year. a bit of i charge and another variable here. that variable is with the auction and the uncertainty operating from the windshield. we went from the top to the middle quickly. incredible statistic. >> what we are watching at the nasdaq is they haven't done that. they were there and haven't closed since late october, but take a ride with me on the earnings express. that is what is driving the train and the company that sends out prescription drugs to people beat and boosted the stock almost 2%. the company that makes generic drugs, beat and boosted up 2.5%. expedia.com beat the street and that stock is at a new high. where people are booking travel to? las vegas,

in fafact the ung,i i wa tkikig with dondion,he owns t ts etf spspac 's's bn saying o orr and over again n thmomone into ung has moved natural gass h higr than t shld be. i do notanant to lumpin the natural gastotock with thehe o o ococksbut themamaet wiwill ththeye all goingdown, pete, i dot want to outthink this. weavav anotherevevel ofdecline in the oilils,hahait lolong between $45 and $5 that's when the stocks were at leveve st, thatat's where oil wawa i think that we see thaha kind f decline, we're not doneoioi down. i i notecommending speculating inhehe oilpatch o e natural gas tctch just yet.t. schlumbergermay be 46, 47,i thought maybe itit cldld go int the 50s.s. i think wn s somof theoilsee ge we'll get backk in. but right t nowewe'rholding off. >>oo ya, mike. >>>> clele you owow, ji i rereal a appciate your education and l ltt week you werere taing about pe r rat a how they relate to stock and i i'vbeen llllowg rarian, withh a p.e. of 13 and higig growthrate. i'm wondering if this isnene o thestocks like m koo thahass beenenlaughtered whh the whole heheth care sysyst?? >> i thi

in the past i've recommended three options -- the gld, which is the etf that trades 1-to-1 with gold prices. the actual metal either in the form of bullion, not to be confused with the stuff you put in chicken soup. to store it you got to have it in the bank or in the form of gold coins, like american eagle coins sold by the u.s. mint. and, yes, i've recommended a couple of gold mining stocks. the issue with the gold stocks has been historically they've made you less money than the actual metal because as anyone has seen the treasure's cmi rate knows there are all kinds of things that can go wrong when you're mining for gold, that can really eat into earnings. but now i think we've reached a point where the best of the gold stocks will outperform the price of goal. that's why i think you should buy as aem, among ran gold and also eldorado, my favorite gold stock. it is up 14% since the last time i recommended april 29th when it was trading at $46. i think the prospects are even better go the into the second half of the year. agnico has expanded its operations and expended lots of mon