something like exxon mobil, exxon mobil has, well, with oil at $70, exxon mobil would do well in an inflationaryket. with the vix coming in at 2% this week, it points to the market is likely to bounce sideways for a while. >> i just want to cut in here. we're at a huge inflex point in the market. we can't get through this really big resistance level at 1015. the implied volatility has come out of the market. buy yourself some protection. it's there. it's cheap. you know what, it will help you sleep at night. >> i agree with that wholeheartedly. we're not saying the market is going 20% higher but it won't go 20% higher without the participation of some of these names. >> right. >> we're going to need to see some evidence the consumer is part of the recovery. >> i think everybody here on the desk basically believes we are going to see a sideways market, we're going to chug along. you have a good overriding strategy that could provide deal enhancement in terms of returns already in your portfolio. >> absolutely. caterpillar is a prime example. we've seen volatility come out. this one on a relative

exxon mobil and chevron both got a boost leading gainers on the dow. the health care sector got a shot in the arm when a federal judge ruled in favor of drug maker merck in a patent dispute over its top-selling asthma drug, singulair. an israeli company was told it cannot market a generic version until merck's patent runs out in 2012. john deere saw its sales slashed by 25% last quarter but managed to beat expectations by cutting costs. cash-strapped customers forced the world's largest maker of farm equipment to trim yearly sales forecast predicting its steepest decline in 50 years. the retail sector saw another disappointed when limited reported a 27% plunge in profits. but wholesaler bj's managed to beat analysts's expectations seconding shares up 2% on the day. credit card holders will get a break as new federal guidelines go into effect. some of the changes, bills have to be in the mail three weeks before the due date and customers now have the right to dispute interest rates. keep an eye on shares of barnes & noble and the gap. all report second

exxon mobil, procter & gamble and walmart, some of the largest components of the s&p waiting, all down on the year. we need to see participation to move higher. >> there's no question about that. we can't have the market continue to go higher driven exclusively by tech names and a couple high beta names up 150% on the year already. one of the critical things that ties all these names together is the fact a lot of economic data we've seen as positive, evidence we were coming out of the recession, hasn't been backed up by consumer data. what do these things have in common? consumer names. we want to see that kind of demand. procter & gamble, walmart and exxon and the integrated oil names in general, these types of names are going to have to participate if the market's going to continue. >> and i don't disagree whatsoever, mike. you named three names that actually make up a big part of the top 15 names of the s&p 500. these don't have to participate at this moment. one thing history tells us as markets broaden out, as rallies broaden out, it takes time. we're going to have some pullbacks

xle is three stocks, exxon mobil, conoco phillips and chevron. you have to know what's in it. the builders don't make up the indices the way you would expect. >> what you really need to see is inventory begin to be worked off, and then home prices will begin to rise. the data today will probably confirm that the housing bubble unwind has reached the bottom. >> plus, just to throw more in there, there's tariffs, regulations coming down from canada, quotas, a lot of reasons why lumber can get disconnected. >> let me ask you a question, if the under wind has truly hit bottom, why has the ten-year note remaining here? in the face of a risk grab -- >> can i field that one? >> yes, you're in charge. >> who remembers what last year-over-year cpi was, minus 2.1? where did the ten-year note close today? 2015, add 200 basis points, what do you get? probably a more realistic look. i'm not saying i believe the cpi data, but let's be real here, as long as they auctions keep going like a hot knife through butter, you know there's a lot of auctions ahead. >> you talk about that indecent, the

first time since i could remember, the last couple of weeks actually participate in this rally, exxon mobile,

royal dutch shell and up here where exxon-mobil has a lot of tracks. 2.5 million acres and over here, british petroleum and 40 oil giants from all over the world in libya. for more on the story and particularly this oil angle of it where so many of the victims's families say it's part of the reason where the release of the terrorist happened and now it's unclear how they respond to the welcome. the senior vice president and cnbc contributor. good to have you with us. >> just ask this question that a lot of americans don't realize. in a lot of sense, libya is about potential as opposed to the here and now. they have a lot of it. >> it's huge potential. as you pointed out, the largest oil reserves in the continent and much higher than that. that's going off technology. it's easy to get to. like a straw on the ground. some of the production is as low as $1 a barrel. there has been a land rush by all the companies across the globe to get in and get that oil out. >> how does $1 a barrel cost and compare like sticking a straw in the ground in lania. >> it rises rapidly and rivals the low co

first time since i could remember, the last couple of weeks actually participate in this rally, exxon mobile, chevron. those things came in to play as well. >> why were you able to take time off today? >> the oil numbers were interested. there were drawn inventories on the imports number. that was the reason oil took off from there. the problem is s&p took about an hour to react to that.

you got put into the desert of saudi arabia for this and, there are a few houses around for the exxon mobil and chevron, you bring your whole family to those places and you get a life. this is also an islamic country, you live in a little ghetto of westerners. if your wife wants to drive into town, she can't drive, she has to be in the back seat unless -- your wife beside you in the car. these are terrible constraints for relos living in those countries. there are families who when they are transferred to a place make an extra effort to find something more akin to what they really like rather than what move fast rather than a house in these suburbs. one family, an american family, they made a point in the thick of beijing, chinese housing among chinese people and they end of enriched greatly by that. the family has a daughter who is now 19, speaks five languages, japanese-american, her mother is german, and next language was french, they get sent to beijing and in a few months she goes to japan to learn her mother's language, comes back to learn chinese. this is a kid who really got into th

in the middle box, exxon mobil pleading guilty to killing birds.ompany admitted that they violated the law and at least five states. they have agreed to pay fines totaling more than $600,000. in bottom box, retail sales falling about 0.1% last month. august sales were way up thanks to the cash for clunkers program. brand new hope for people who cannot see. a new study shows gene therapy can help restore sight to some people who are legally blind. these people can now see? >> yes. one woman and two men can now see shapes and to some degree they can see vibrant colors. doctors say that within a couple of weeks of the therapy, these folks began to see. >> researchers at the university of florida say three volunteers can now partially see out of one eye. all three patients suffered from an inherited disease that steals site of from infants and children. >> i believe it is only a matter of time before we expand our horizons to be able to treat other forms of the disease for which we currently have no treatment. >> doctors say one of the more amazing fin

exxon mobile and petro china, $41 billion deal for gorgon project in australia. but that is making major news in the gas complex today. mark, back to you. >> a rally in asia overnight. let's check out some numbers. shanghai composite, jumping 1.4% a day after suffering its biggest loss of the year. bombay sensex up 7%. what's going on in europe, guy? >> we are in positive territory at the moment, but as you can see the cac is off. barely in positive territory. the story remains very, very cautious. volatility is down fractionally but nonetheless looking at a very, very nervous market. let me show because we've done today. the housing data did have a big impact on the markets, dragging us down and stoxx 600 is up by 0.5% at the moment. let me talk about the data points out today. uk inflation is very, very stick y it's still positive, one of the on the advanced economies that still have economy at 1.8. you strip out mortgages that number goes negative. the survey out of europe very positive as well. making pointing to a positive g3 for the german economy. that's t

. >> becomeky, petrochina has sealed a $41 billion keel with exxon mobil to buy australian liquified natural gas. the trade deal is the largest lb0,vÑíar]x9 and comes at a time of between the two nations. ace trailan resources minister said he does not expect any political opposition to the deal. checking on shares of petrochina today listed in hong kong, if we have those, they were trading to the upside, but i guess we don't have the board at this moment. there we go. the shanghai listing, as you can see, pretty much ae raising all of their earlier losses in hong kong. down about 2.3%. bertha. >> thanks very much, chloe. warren buffett says the u.s. is out of the emergency room and in a low path to recovery. in today's "new york times," mr. buffett says the u.s. will have to deal with huge doses of monetary medicine being administered. he says the net debt is climbing to 56% of gdp. buffett says our immediate problem is to get our country back on its feet and flourishing. whatever it takes still makes sense. and u.s. regulators reportedly put direct pressure on citigroup to replace

now exxon mobile is evacuating as a precaution. bill is expected to passover the open water between the united states and bermuda early saturday. it could regain category 4 strength. weather channel meteorologist, jim cantore, is out there. how is the surf looking out there? >> reporter: it's unbelievable. you have huge waves. and the furthest white cap out there, that's where the reef is. they will take more and more of the beach with each high tied. what was brought in to beef the beach up will be taken out. residents and visitors, those are the people that will be impacted. residents have been buying supplies. some -- most, actually, have not boarded up their windows because they are not worried about hurricane-force winds, but what we will see are waves, and those will be the big impacts here in bermuda and in the united states. the path is offshore, and that's where we think it will stay, probably 245 to the west about 8:30 saturday morning. back to you. >> jim, thank you very much. dylan, we will keep the eye on the progress

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