>> wells fargo is knee-deep into the consumer issues as everyone knows. i don't think that's new news. they'll have the revenue growth to offset the higher losses. we think wells will clearly have a good quarter from the mortgage side of the business and that might not be sustainable into the third quarter and we think it can beat on the margin and the income. they do have investment banking and trading opposition. so we think there are more levers on the revenue side for wells fargo to offset the higher cost of credit. >> from the other regional banks that don't have the capital markets or don't have the mortgage pipelines, they don't have the revenue to offset it. we think it is positioned fairly decently. of course, when you look at the

another -- wells fargo and versus wells fargo. -- wells fargo versus wells fargo. >> and hired one law firm to sue itself, and then in hired another law firm to defend itself -- it hired one law firm to sue itself. then, it hired another law firm to defend itself. they also sent themself a request for loan documents, so wells fargo is asking itself and others for loan documents. this is not the only case where wells fargo does this. frankly, i think this bank is a big, well, you know how they say "too big to fail," this is like the war years. the lawyers. -- like the lawyers. i know that they were the recipient of billions of dollars in bailout money. neil: that is my point. wells fargo. i like the logo and the little wagon thing. my point is is that this is an institution getting our taxpayer dollars, and they are effectively sealing themselves. >> in the grand scheme of things, it is not a big loss -- they are effectively selling themselves. this lawsuit is stupidern?ñ, neil: al, very good seeing you. thank you very much. a darn good, honest. well, buy into their health insurance pro

district court judge denied wells fargo's motion to dismiss the case. baltimore city is accusing the mortgage giant of unfairly targeting minority borrowers, setting them up with loans that were destined to fail. >> hopefully, as a result of our lawsuit, with the 10s of millions of collars we're losing we'll help to come back and stabilize neighborhoods and families that have been in foreclosure. this is a great move and some good evidence - >> we'll continue to follow this story. the next court date is scheduled for july 20th. >>> gas prices may be lower these days but still high enough many of us are looking to get the best mileage possible. it's no secret that proper tire inflation certainly plays a huge role. it's also important because it keeps you safe.

it turned out that wells fargo was dead. dead right. and we were all wrong to question its credibility. the gathering commercial real estate storm, it had already happened. it had already gone off the coast. the worst was truly over. did anyone listen? did anyone listen to wells? oh, yeah. warren buffett. he accumulated a huge stake, buying in from the shorts mostly. because in wells he trusted. he made billions of dollars. that's the lens from which you have to view what jpmorgan is saying right now. i suggest you listen to this morning's call, but i don't you won't. it was really good. they ought to put some jokes in and laugh tracks so that people will tune in. this is tractically the same situation in 1991. i made the mistake, by the way, of not believing wells fargo then. i got wise in time. i heard crown prince was going to buy the citigroup satake. but you don't want you to repeat that mistake by not believing jpmorgan now. i know it's hard to believe the worst is over. but trust me, or at least trust my experience and knowledge

wells fargo wasn't particularly great. keycorp wasn't particularly great. credit concerns over there. then 12:00 eastern time goldman sachs comes out and says we're going to repay the tarp money. now, is this shocking news? but it turned financials. >> exactly. and the rate of return for the government was a 23% annualized rate of return. people were worried about taxpayer money. they got paid back. and i think that was the big news there. >> the important thing is -- this was in less than a year. and i think the numbers -- i think it was 1.4. 1.4 billion, i believe. this is what the government made in profit. and state street, they also paid back, i forget what it was, i don't have my notes here, but 400 million or 500 million, something like that, was paid back by them. i don't remember the number. >> i think the important thing besides that was before -- as you said, that turned the market and the financials. the important thing besides that was the losers were being judged separately. they weren't being judged as a sector any longer. >> 166 million is w

wells fargo, bank of america, two different animals. three weeks ago if wells fargo stated anything like this the whole sector would have come in. that was the important part that it didn't kill the whole sector. early in the day they threw out the loser. they bought the winner. >> moving on, yahoo the internet giant closing the day higher after getting off to a rocky start. the move up came after posting by "the wall street journal" columnist saying sources i have spoke to over the last two days say the search deal is still on good footing and could be struck very soon even as early as tomorrow. >> what's the date on that, last january? >> it could have been any day from last january up until today but the fact is the stock moved higher on the back of that news. shooting higher in the afternoon. >> look, yahoo is going to have to get this deal done. when you see 88% of your revenue coming from search engine and you are losing that search engine market share to microsoft, you're going to get something done. it's not google that's losing

like wells fargo report huge profits after a government bailout. faisal islam filed this report from baltimore. ♪ oh the wells fargo wagon is coming down the street and past my door ♪ >> reporter: today the wells fargo wagon posted billions of dollars more in profit. just the latest of america's super banks sort of renewed their aquaintance with super bucks but with the wheels coming off the jobs market and intensifying housing crisis and ordinary america struggling to see much benefit, there's much anger as relief. >> they threw greed and manipulation of the market, brought down the financial system. they're not answerable. and we, the average citizen, have to bail them out so that they can go back to their summer homes and their limousines. >> makes it more dangerous actually. perhaps they didn't plan on it but looking back, it is quite an amazing steal. >> reporter: the banks' position knocked out by this week's official news that the government bailout could, in theory, cost $23 trillion if everything collapsed again. just a few about months ag

california, wells fargo? what are you looking for for them and what will be the problem area for them? >> wells fargo is knee-deep into the consumer issues as everyone knows. i don't think that's new news. they'll have the revenue growth to offset the higher losses. we think wells will clearly have a good quarter from the mortgage side of the business and that might not be sustainable into the third quarter and we think it can beat on the margin and the income. they do have investment banking and trading opposition. so we think there are more levers on the revenue side for wells fargo to offset the higher cost of credit. >> from the other regional banks that don't have the capital markets or don't have the mortgage pipelines, they don't have the revenue to offset it. we think it is positioned fairly decently. of course, when you look at the credit cycle, the consumer was the first. so we look at wells fargo and look at bank of america who have been building up reserve levels quite significantly, they may be o

wells fargo and u.s. are called lower even though both banks reported quarterly numbers above wall street consensus. and mortgage applications rose 2.8% last week despite a rise in rates. mortgage bankers association says average 30-year mortgage rates rose a quarter of a point to 5.31%. the cnbc.com news now. i'm courtney reagan. >>> live from the financial capital of the galaxy, this is "squawk on the street." good morning, everybody. i'm mark haines. banks break more than a week of strong starts to trading. yeah, results from morgan stanley and wells fargo kind of taking the wind out the market sails, even a soaring boeing doesn't look like it will give enough lift to the blue chips to get an eighth day of gains. but, it's early yet. >> it's still early. i'm rebecca jarvis in for erin burnett. if to underscore the caution, bernanke back on the hill today to reiterate the need for fiscal responsibility. we'll bring you his senate side q and a session live when it begins later in the next hour. >> okay.

is it the wells fargos of the world? >> our buys in the sector? >> yeah. >> wells fargo and b of a. large fran shiez -- franchises with strong deposit basis and have provisions earnings to offset the credit losses going forward. it doesn't mean it will be risky here. i'm listening to you guys talk about yahoo!, and apple and i think i'm the red-headed stepchild here. >> we're not seeing the economic turnaround and the bank reporting earnings so far. you don't extrapolate goldman's reports and their numbers to the economy. you look to the banks right now and we're not seeing it so far. >> one last question, chris, this is actually the last question that i will ask you. can you take it off the table at this point? that's a publicly-traded bank out there will need to be seized by the fdic because of its exposure to commercial real estate? is it that big of a problem? >> it's a significant problem. i think if we don't see stability in the unemployment rate you could see that happen. i'm not going to bank on that, but the unemployment rate continues to go higher your vacancy levels will

. >> another scorcher in the northwest, 99 in seattle, 9 for portland, just 69 in fargo and 70 in minneapolis but low 80s for chicago and detroit. a high of 83 in boston and 90 for baltimore. >> well, police in utah found themselves in hot pursuit of a very unusual littles is expect. >> little being the key word there. the driver blew through a few stop signs, hit 40 miles an hour at time. but for the most part he managed to stay in the right lane before finally coming to stop. check out the driver. 7-year-old boy. >> oh! >> and you could tell by the way

sing stocks,els fargo, one thing i would highlight, this is prottion it is not a be on a olent move. i think what we are is expectation th the move alread took place. >> a lotf namesthat you had up on the board are now 10, 15, 20% in the last month. some expectationhave bn daen in the what we have seenn the last month or so. the implied mes, mid single digits or so we have gotten comfortable. the armageddon may be off the tablhere, but there is portunities, if you want to be able to sleep bett at night against your long division. >> its interesting that dan points out the impld moves are about the me. the are very,ery different stocks and behe dferently. >> iould say, i don't think we can comfortably sit here and say argeddon is off the table at all. it going happen tomorrow? absolutely not. i would say to my point, looking at some of the individual mes, wells fargo, bank of america, bb & t, we saw aggressive put buying, if armageddon happs, meone's got protection for i protective septemb puts for trading. we did see shorter tings, in the ju call-buying, taki a shot. i don't look at

wells fargo shares right now are down 6.5%. the company's quarterly profits jumped more than 80% but investors are worried about the bank's exposure to the weakening commercial real estate market. something that ben bernanke, the federal reserve chairman was talking about yesterday. he may talk about it again today on capitol hill. morgan stanley, meanwhile, says it lost more than $1 billion in just three months. morgan shares are down 4.25%. looking at the overall numbers, yeah, little bit of give-back. finally, the dow, nasdaq, s&p rolled down about .5%. the streak also over for gas prices. aaa says the national average is now $2.61 a gallon, up just slightly from yesterday. that increase follows 30 straight days of declines. but to put it in perspective, a year ago this month, the national average was $4.11. this is a lot better. >> that was nasty. all right, susan, thank you. >>> $787 billion of your tax dollars is working its way into the economy. cnn's christine romans on the money trail in new york. how much stimulus mon

"in the process of finalizing 52,000 home affordable modifications " and wells fargo says it's in the process of finalizing 52,000 modifications under obama's plan. "has approved 87,100 trial modifications" jp morgan chase was more straight forward in its wording - saying it did approve about 87,000 trial modifications under obama's plan. and when we talk to housing counselors ... who work first hand with struggling homeowners - they report only marginally better numbers: back in early june the neighborhood housing services of chicago submitted 500 modification applications - all were pre-screened and met the qualifications - so far only 31 have been approved. i would call that process pathetic in an industry that's known about the crisis for 3 years.. to be caught off guard by a flood of requests is inexcusable all 3 major banks say they are also doing modifications under their own programs... and if you add those numbers to the obama trial modifications... jp morgan reports a total of 138,000 trial mods in the last 3 months wells fargo says it provided more than 200,000 trial mods a

report, but traders will digest earnings from wells fargo, microsoft, amazon.com and american express. volatility, which had spiked heading into this week's clash of earnings, actually fell over the last couple of days. does that mean traders are getting more confident when it comes to earnings season? >> i don't know necessarily they're getting more confident. this week it caught me a little bit by surprise, i have to say. kind of expected what we saw, nevertheless i thought it was going to have less of an impact on the market. certainly ibm, that was really a good forecast there and helped drive us higher. goldman sachs and stuff we were seeing earlier last week and so on, these things, why they're driving the market, i'm not 100% to be sure, to tell you the truth. but a lot of stuff is coming up next week. a better barometer for the economy than the things we've seen. >> even though the bullish forecast, even though it drove the entire sector higher, that's reading too much into it? >> it could be. the tech stuff was great, but by all accounts and outlooks were great and could be s

wells fargo and american express. more consumer oriented than goldman sachs so something we have to ken a close eye. that will set the stage for the next leg down in the economy if it comes to play. >> scott, out to you. don't want to mow nnopolize the conversation. you're saying that it's more of a stock picker's market right now. >> we've seen some anecdotal option buying in a number of names. saw it in yahoo! 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%

district court judge allows the city's case against wells fargo to move ahead. federal judge benson legg has denied the mortgage giant's move to dismiss the case. baltimore city sued the company in 2008, saying the lender unfairly targeted minority borrowers, setting them up with loans that were destined to fail. the judge cited no affidavits submitted by former wells fargo employees as sufficient proof to proceed with the case. >> hopefully, the results of our lawsuit and the tens of millions of dollars we're losing, we'll be able to help come back and stabilize neighborhoods, as well as to work with families who have been in foreclosure. >> the next court date is scheduled for july 20th. >>> another gorgeous day here in the baltimore area. right now maryland's most powerful radar again not indicating any precipitation around the region. some cooler temperatures than we had yesterday, as we remain below normal fortune wise. here is your forecast for the next couple of hours. partly cloudy, mild. temperatures will be in the upper 70s for the next couple of hours

wells fargo was clearly highlighted in the earnings release. if you look at the nonperforming asset growth for wells fargo, it was up about 50%. that is way above what jpmorgan, bank of america are showing. if you are holding commercial loans or jumbo loans, the exposure to commercial real estate, that's the concern. that's why american express and capital one look good. >> and you are also seeing short coverage. you look at the way the stocks traded. they thought the numbers would knock the guys to their butts and it didn't. i hate to be a broken record, but it is money chasing or underweight or guys short that got scared. if you look at capital one's numbers, back to the fundamental side, year-over-year, up, that's second quarter '08 before they fell into the teeth of this problem. that's not a bad number. with these guys it's about the loan quality. not that bad. >> can we back it up? for american express, this is a name up 59% so far this year. you're saying that perhaps there are players out here that were short this name anticipating that

circuit court judge has denied wells fargo's motion to dismiss the case. baltimore city is accusing that the mortgage giant unfairly targeted minority borrowers setting them up with loans that why destined to fail. >> hopefully as a result of our lawsuit, with the tens of millions of dollars we're losing we'll be able to come back and stabilize neighborhoods and help families that have been in foreclosure. >> the next court date is scheduled for july 20th. >>> a consumer alert for parents. one million playyards have been recalled. it's because the side rail might not attach properly. a child who pushes against it could fall. there have been 21 reports of injuries. the playyards were made by cola craft enterprises and sold by major retailers including k-mart and target between january 2000 and january of this year. so keep that in mind. we'll put that on our web site if you need more information. >>> another safety reminder -- especially for parents. the hidden threat posed to public pools or water parks. national health officials are reporting a spike in i

wells fargo. now, wells fargo is an fdic insured bank. wells fargo to expand securities business. wells fargo will announce an expansion in its security business. it plans to grow and invest in securities that it largely inherited from wachovia. the business is to be called wells fargo securities. what is wachovia? wachovia is a bank that was failing because wachovia had all kinds of problems. wachovia was a bank that had purchased gold enwest financial, which -- golden west financial, which had $120 billion, we're told in toxic option adjustable rate mortgages. by the may, related to this, i saw in the newspapers the other day, that pick your payment mortgage plans have actually now had a higher default rate than the subprime mortgage loans. think of that. and so you look at that and you think, what was a pick your payment plan? those were plans put out by these mortgage companies that -- with sophisticated, exotic plans saying to people, you know what? pick your own payment. tell us what you'll pay and we'll write a mortgage around it. so we had all of these strange plans out th

circuit court judge denied wells fargo's motion to dismiss the case. baltimore city is accusing the mortgage giant of unfairly targeting minority borrowers setting them up with loans they say were destined to fail. the just cited new affidavits submitted by the city from former wells fargo employees as being sufficient proof to proceed with this case. the next court date is now scheduled for july 20th. we'll keep you posted. >>> it's a bittersweet day for the people at the john steadman station in baltimore in downtown baltimore. the engine left the station for the last time this morning. the move was made after mayor sheila dixon called for budget cuts from nearly every city agency. she believes shutting down truck 2 saves money as well as jobs. >>> another casualty of the ailing economy. this time a school. a towson high school is closing its doors. now students and faculty at towson catholic are scrambling to find a new school or new jobs. a spokesman for the archdiocese says it simply couldn't recover from a sudden drop in enrollment. they say the

fargo, north dakota, 68. we're running cooler than fargo.are the call list numbers i could find. oakland, 45 -- here are the coolest numbers i did fine. let's head to the maps. very pleasant conditions. the high it will move eastward. we will warm up. mid 80's today. a lot sunshin thursday, hazy, hot, and humid. >> we have a water main break near george washington hospital. 23rd and i streets are closed. we will see if it is affecting traffic. good on the whitehurst freeway. this is the key bridge. traffic off to the right is the whitehurst freeway traffic over to washington circle. the roosevelt bridge looks pretty there are moments in te when the paths we take do determine our future. today we are communicating with each other as never before - and that requires a seamless network that is constantly growing better, smarter, and more secure. that's why our scientists and engineers in our labs, are taking the fastest technology in the world and making it mobile, better and faster - to keep pushing the internet further than anyone dreamed. la

morgan stanley and wells fargo. look for the impact of residential mortgages and credit cards on wells fargo, look for the impact on commercial real estate on morgan stanley's numbers. >>> by the way, we'll have the cfo of wells fargo tomorrow on the heels of that earnings release. we'll want to know how the quarter is looking. the banks were down across the board today and that was the one laggard. the rest of the market did pretty well. the oil and technology names were the leadership dwroups on the upside. the dow jones drill average had a pretty good spurt in the final moments of trading to end up 67 points near the highs of the afternoon, to level at 8915. the nasdaq picked up seven points, about a third of a percent at 1916 on the nasdaq and the s&p 500 was higher although it was limited due to the weakness in the banks as well as a handful of tech names. s&p up fractionally. i'll see you tomorrow on "closing bell." have a fantastic evening. fast money is up next. thanks for being with us. >>> after the bell e

basically, the naacp has found, based on, you know, plentiful evidence that wells fargo and hsbc seem to have pushed black buyers into subprime loans -- black buyers who needed loans to buy a house were three times as likely as white buyers to get subprime loans across, you know, the same income level and black people who took out second mortgages, you know, to refinance mortgages were six times to be given subprime loans by wells fargo and hsbc than whites of identical qualifications, six times, not double, not triple, quadruple. it's a very extreme disparity here. and the interesting thing is they are now saying we need something like the home mortgage disclosure act and we need information so that we can see how those loan decisions were made, you know? they want to know because wells fargo for one is getting government bailout money, you know, what were they doing, how did it work? they want to know. it's a cycle back again the same issue of, you know, we need some information here on how these things are going because we're seeing a pattern that's really statistically way out, yo

. >>> and wells fargo is being sued by the illinois attorney general for allegedly discriminating against minority borrowers. that's cnbc.com dues now, first in business worldwide. i'm mary thompson. >>> and there's a live picture of the floor of the new york stock exchange. we're entering the final stretch. and stocks looking to finish the day and the week higher on track for the dow for the best monthly gain in seven years. hi, everybody. welcome to "the closing bell."." i'm maria bartiromo along with matt nesto today. good to see you. >> you too. >> here we are coming to you u from federal hall. i love being from federal hall on our "summer on the street" special. it is such a proud place. the actual place where george washington, our country's first president, took the oath of office. >> tons of people hanging out. and the markets here, as maria said, not only positive for the day, the week, and the month. but if you take a look here today, kind of cresting. people really not pushing it into the weekend. the dow's up just about 20 points right now. you can see 18 points on the session

joe, you're going to kick us off with wells fargo.ne thing that stood out to that report and the traders i've been talking to this morning is the credit losses they're anticipating going forward and the fact that credit quality doesn't look like it's improving in some elements of their business. >> we had an analyst say the reserves didn't seem to be as substantial of some of the other financials that have reported, added more anticipating credit future losses. i guess the notion that big upside beat, that 57 versus 34, that there were some things in there that probably aren't like to be quite as easy to replicate in future quarters. but the shares are under pressure this morning. and despite beating numbers by a wide margin now, actually they're back down below 24 again. the per share earnings you saw well above expectations, the concerns about raising more capital, maybe to cover those losses, dragging on the company's shares this morning. >> yeah. and then we got morgan stanley reporting its third consecutive quarterly loss. cfo is

back in 2004 when i started a national radio show, the radio show came out to fargo.how a liberal talker going to do a national talk show and rush said i don't know who this $4 an hour guy from fargo is, he'll never make it. well, rush, here i am at 30 rock. held, i'm doing you a favor. i'm giving you ratings. i'm promoting you right here, rush. come on, let's get after it. your audience would love it. your audience hates me. your audience would love to see you just stick it to me, but you won't do it. because you're a coward rush. i've always thought that. always thought that. now here's what we could do. now listen, it doesn't have to be politics rush. i know you couldn't cut it over at espn calling football games. so what do you say we just take the field together and tackle each other. we can even take a page out of your old buddy shooter's playbook and do some hunting. i promise i won't shoot you in the face. now, while we're at it, i would like to play some golf, too. rush, don't tell me you cheat at golf. here's an idea. here's an easy one. why don't we go back

i think they'll be spepectacular i have banank of ameca, jpmorgan and wes fargo.ee in total agreement thehere. i am particucularly exted, if not just j jumping f joy for insana'sall. i thought i was the e only oneho liked huntington, ththe best i the banking busisiness. what's my bottomom line? i like to use the e best of e be to challenge my own t theses. i think ron's latetest edion is compmpelling, artling even, but am not as bullish as h he is. that's right, , i'm more defensive, less s inclinedo think that this markrket would tatake off, ich is what would hahappen if n is right. you ve to expect dramatic c housuse pricappreciation for ron to be right onon the hom builders. i respectfully disagree.e. even if my respepect for t man mas me uncomfortable witith my own cautiousneness. rob inew york. rorob? >> caller: b big boo-y from long island, jim. >> i was on lg i island l last ekend. my garden's doing great.. what's up? >> cler: kraft is my biggestst lding. shouould i sti have an appetite r kraft? nono capit appreciation for this stock. all right, now. for r

wells fargo, 47% jump and $2.6 billion. not happy with the asset loss of that surging by 45%. shares coming off on the back of that. goldman sachs saying it paid the u.s. treasury $1.1 billion to redeem warrants connected to t.a.r.p. that makes it the first bank to get fully out of the us bank bailout program. germ motors top sales analyst says he's confident the company can make up the sales it will lose when it sheds four of its eight u.s. brands. chevy and buick will be expanded to pick up lost sales from elsewhere. amazon.com agreed to buy zapps.com, a shoe store of all thing. t the deal is amazon's biggest acquisition yet. bristol-myers squib is buying medicinerx. the rodeo show attendance is up 12%. people thinking this is an alternative to get out. shows are typically $10, including a concert to end off the evening. louisa bojesen, cnbc, london. >>> the sox slide continues. the pirates walk off winners, and the latest from the tour de france. >>> plus, drama in manny's mix in tinseltown. your early morning sports headlines are straight ahead. and so is bill with your re

and wells fargo, by the way, i feel the same. bank of america at 13, i think it's a coil spring. think the next stop is 18, i think you should be buying it. buy, buy, buy! i would hope it would get back to big stock offering at $10. it's not going to get there, you have to pounce now. t.k. in nevada, t.k.? >> caller: hey. >> t.k., you're up partner. >> caller: well, i've been hanging on for an hour. >> what can i tell you? what can i tell you? there's a lot of bad guys back there, we'll go knock some heads after. other guys are hopping on like that. no, everyone has to wait. go ahead. >> caller: okay, i'm ready. >> me too. go ahead. >> caller: all right. yeah. sweet heart. >> hit me. >> caller: yeah. >> go ahead. >> caller: okay, cramer. >> yeah. >> caller: hey, cramer, i'm looking for star. >> oh, man, slow guy, hot stock. i think star is absolutely terrific. this is one of my classic, classic cases of the internet mobile revolution even though the stock has moved up big, it's pulled back. >> buy, buy, buy -- >> get on board and buy. we've had some -- we haven't had nearly as ma

morgan stanley, wells fargo, pfizer and eli lilly will be reporting before the opening bell.ther notables include bank of new york mellon, sun trust, u.s. bancorp, altria and pepsico. after the bell, we'll get numbers from ebay, e-trade, and qualcomm. president obama will be holding a news conference this evening and the theme is expected to be on health care reform. that is your global stock watch. >> yeah. still to come on the program, our next guest thinks the recent market rally is a concern. is it sustainable? tell us what you think. worldwide@clnz.com. >>> we are coming up on half past the hour. here are the top business stories from around the world. until the u.s., no halo effect from apple's results. futures are pointing to a lower start. >> in europe, the bank of england is less pessimistic about the economy and is less excited about quantitative easing. >>> and i'm sri. will lg electronics hosts better than expected third quarter profits thanks to strong sales. >>> hello and welcome to "worldwide exchange." futures this morning have been pointing to a lower start,

just 69 in fargo and 70 in minneapolis. boston and new york climb into the 80s, it's 93 in miami and 89 in dallas. >> it's harder in portland than it is in dallas. >> you think you ever had big use?^ to fill, just get a load of this. >> it is the world's largest booted, 2112 feet long and 16 feet tall. it was made by a minnesota shoe company a few years ago but it was made on a custom-made trail they are week from the factory to the company's new store. the boot ways more than a ton. a perfect fit for a person who stands about 120 feet tall. >> that's a big shoe. >> they didn't really use leather for that i wouldn't think. >> no. >> imagine the codes? ♪ one of these days these boots are going to walk all over you ♪ assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little to no cost to you. stay tuned for this important medicare benefit information and free scooter guarantee. imagine... one scooter or power chair that could improve your may entitle you

weave some bank reports coming up, w have bank of america tomorrow, also citi tomorrow annext wed lls fargo. what suld we expect those firms to report? >> wl, tomorrow's report bank oamerica and citi also both have strong capital markets, so we're liky to see those to be ratively strong on those lines in bk of america case they added abt 13 billion to their reserve i each of the last t quarters, so thr operating resultwill be a little weaker, they had somewhat higher credit cos an their peers. wells should he a strong quarter on themortgage frt next wednesday. >> susie: how aboutciti? >> we're looking forheir quarter to be on an opering basis, a ltle above break even, which is better tha last quarter. and they've t a bunch of gainin there, so their reported number cod be quite large. >> susie: i uerstand that you're recommeing the stock of j. p. morgan, but ne of the other banks. tell uyour analysisn that. >> basical what we like about j. p. morga is diversified, each of the businesses aears to be well managed, despitethe losse u refer to in the credit cardusiness. and i thk it's one of the

ngle stocks, wells fargo, one thini would highlight, this is protecon, it is not a bet on a violent move. i think what we are seeing is is is an expectation that the move already took ple. aot of names that you had up on the board e now 10, 15, 20% the last month. some expectations have bee dampened in the wh we have seen in the la month or so. one of the things i wou say about the implied mov we're seeing, all bein midsingl digits or so, listen, we have gotten kind of comfortable. the armageddon may be off the table here, but the is opportunities to buy cheap protection if you want to be able to sleep better at nht against your long divion. >> it is interting that dan poin out the implied moves are about the same. these are very, very differe stocks and behave differently. >> i would say, don't think we can comforbly sit here and say armageddon is off e ble at all. in any sector. is igoing to happen tomorrow? absolutely not. that's not what is being priced at. i uld to mike's point, oking at some of the individual names, wells farg bank of america, bb & t, we saw aggressiveut buying, if

have some bank reports coming u we have bank of ameca tomorrow, ao citi tomorroand next wed wells fargo. wh should we expect those firms rept? well, tomorrow's report, ba of america and citi also both have strg capital markets,so we'reikely to see those toe relatively strong on those les. bank of ameca's case they addeabout 13 billion to their reserve in each of the la two quarter sotheir operating relts will be a little wear, they d somewhat higher credcosts than their peers. wells shou have a strong quarter on t mortgagefront next wednesday >> susie: how about citi? >> we're looking for their quarter to be on an erating basis, little above bak even, whichs betterhan last quarter. and theye got a bunchof ins in there, so their reported numbecould be quite large. >> susie: i understand that you're recmending the stock of j. p. morgan, but none of the other banks. te us your analysis on that. >> basally what we like abouj. p. mgan is diversified, each of the business appears to be well managed, despite the lses you refer to in the credit rd business. and think it's onef the banks that wi

a bit of disappointment from wells fargo and morgan stanley. we're beginning to see winners and losers, wells fargo at this point in time a loser a surge of bad loans overshadowing the bank's record profit. acquiring wachovia bittersweet. they added market share but in doing so, they inherited some junk. there is some concern that will require more dollars set aside to recover more credit losses and non-performing assets./ and on cnbc, saying things are looking very strong for profitability. that's a good thing. >>> meantime, third straight quarterly lossed a morgan stanley, worse than expected. their fixed asset management results were disappointing. i want to look at the comparison of goldman sachs today, which finished to the up side and morgan stanley, which finished fractionally to the upside as well. a lot of folks saying perhaps there's a winner emerging, perhaps for some time, perhaps it's goldman sachs, morgan stanley got hit by the cost of t.a.r.p. and falling behind on fixed income business that goldman sachs has hit out of the park

we also have scott rand, senior equity strategist at wells fargo advisors. gentlemen, thanks so much for joining us. >> pleasure, melissa. >> stu, let me start with you. the collapse in optimism is palpable. yet at the same time you know, we watched the dow fall back into positive territory today. where are we? >> you know, we're setting up for earnings season, and i won't be the least bit surprised, melissa, if companies report positive surprises overall. but last quarter the way they did that was by slashing costs. their earnings came in above expectations but their revenues below, and the only way you can make that happen is by cutting heads. by cutting costs. and unfortunately, that means people. and that's not sustainable for the long term. so i think if we see more of that, and that's what i expect, that we're going to have to be increasingly concerned about more of the kind of miserable job news of the sort that we got last week. >> scott, i mean, i don't know if you caught that ten-year auction today. it was absolutely blistering. the bid to cover ra

but just 66 in fargo. highs in the upper 80s from new york to atlanta. miami hits 92. new orleans, 91. and dallas is 102. >>> when we come back, michael jackson's 1984 commercial that went all wrong. and may have led to a long addiction to drugs. all the details coming up. >>> and harry potter is proving he can still make cash registers ring. your business news is straight ahead. kim pruett, salina, kansas. zipline-- terrifying. my husband, robert, robert made me come. he dragged me up here. i'm scared. i don't want to take my feet off thelatform. hey, this isn't bad! you look down and you'e like, ooh that's a lot farther than i thouht it was going to be. well that wasn't bad at all, that was fun. >>> stocks are mostly higher overseas this morning. tokyo's nikkei average climbed 0.8% today. hong kong's hang seng is higher. in london, the ftse opened higher. this follows the dow's biggest one-day gain in nearly four months. the benchmark soared nearly 257 points yesterday, closing at 8616. the nasdaq jumped 63 points to close at 1862. >>> a somewhat more optimistic outl

we had deterioration in credit for wells fargo, we had the same situation with keycorp. and yet the stocks didn't really want to go down that much. what happened in the middle of the day? i'll tell you the key story. goldman sachs announced they're going to repay the tarp. are you shocked to hear that? nobody was. but nonetheless, around noon that had some moves. all the big financials to the up side. keycorp, which started negative, even into positive. wells fargo's had a lot of trouble all throughout the day but it was down fractionally. existing home sales out tomorrow but nvr a relatively small home building company announced amazing numbers. revenues, margins, writedowns of land all improved. and the absorption rate for new orders in their communities also was up 2% year over year. growth in orders, when was the last time a home builder reported that? look at'll home builders here today, they all moved up. in fact, they have been outperforming the market in the last couple weeks. all the big home building names up 6%, 7%, 8% here today. there's your numbers. let's t

bank of america anwells fargo are ong the firms that will op accepting the notes tomorrow. the statbegan issuing i.o.u. warrants to creditors lasteek after it cldn't close a $2billion budget gap. e i.o.u.s pay 3.75% if held until october 2. california cgressman brad sherman is uing banks to acpt them, saying now's not the time to point fiers. >> sacrameo has made some mistakes, but it was in effort to provide perhaps mo educion, more health care for or people than the state cou afford, big banks made aistake tryingo provide more luxury jets for theirxecutives then they could afford, i don't tnk we shoulhave the banks lecturing sacrento. >>ie: the securities and exchange commission is eected to decide ose i.o.u.s should be treated as a form o municipal debt. that makes tm subject to an-fraud and other ovisions of securit blog. >> paul: one milli. that's the numr of americans whve caught the h1n1 virus since the flu swept thcountry in april with infectiontill spreading, the government is aggressive working to get avaccine out to thpublic. the admistration also hosted a summit

si stocks, wells fargo, one things i would highlight, this is protection, iis not a bet on a violent move. i k what we are seeing is this is an expection that the moving is already takenplace. we'rno expecting a whole lot of volatility here. >> i would say a lot of the nas that you had on the board are down 10%, 15%, 20 the last mon. me expectations have been dampened in the whate have seen in the last mth or so. one of t things i would say out the implied moves we're seeing, all being miine digits or so, listen, have gotten kind of comfortable. the armageddonay be off the table re, but there is opportunities buy cheap protecti iyou want to be able to eep better at night against your long division. >> stacy, how do you intet is it is interesting that dan points out the implie moves on all ese names are about the same. these are very, very different stocks a behave differently. >> i woulday, i don't think we can mfortably sit here and say armageddon is off the table at all. in any sector. e ing that keep it on the table,s it going to happen tomorrow? absolutely not. that not what is b