half a century in american politics from newshour regulars mark shields, david brooks and ellen fitzpatrick, plus health policy analyst ron pollack. major funding for the newshour with jim lehrer is provided by: >> what the world needs now is energy. the energy to get the economy humming again. the energy to tackle challenges like climate change. what is that energy came from an energy company? everyday, chevron invests $62 million in people, in ideas-- seeking, teaching, building. fueling growth around the world to move us all ahead. this is the power of human energy. chevron. >> tiny little thing, it's just... not big. ah... okay, i found it. ( cheers and applause ) okay. >> we are intel, sponsors of tomorrow. and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> woodruff

i'm with fitzpatrick on this chart. i think the stock goes lower. but eventually i think it will be worth buying again based on the fundamentals because the auto industry is on the mend and next year will be a better year. . >>> sell borg warner, sell devon and the king is b.j.'s. there's always a bull market somewhere. i'm jim cramer and i will see you tomorrow. >>> senator kennedy would have compromised on health. so far president obama has not. the silent stock market rally up eight straight days. the greatest story never told. the fdic has problems. is your money safe?

i'm with fitzpatrick on this chart. i think the stock goes lower.lly i think it will be worth buying again based on the fundamentals because the auto industry is on the mend and next year will be a better year. to stay on top of my game after 50, i switched to a complete multivitamin with more. only one a day men's 50+ advantage... has gingko for memory and concentration. plus support for heart health. that's a great call. one a day men's. announcer: you could buy 750 bottles of water or just one brita faucet filter. ( drop plinks ) brita-- better for the environment and your wallet. >>> sell borg warner, sell devon and the king is b.j.'s. there's always a bull market somewhere. i'm jim cramer and i will see you tomorrow. announcer: what are you waiting for? all around the world, men with erectile dysfunction have asked their doctors about cialis. ask your doctor if a cialis option is right for you because in addition to 36-hour cialis, there's another dosing option: cialis for daily use, a low-dose tablet you take every day so you can be ready anyt

dan fitzpatrick, another great technician and a fellow colleague at real money, the pay set where i bloghe disagrees with farley. he thinks treehouse is overextended. it's way too high above its 200-day moving average. that's a long-term technical measure of its trajectory, for him to feel right about giving it thumbs up, and we like fitzpatrick. he thinks the bull flag pattern, it's only potentially bullish. we need to see a breakout happen before he feels good about it for the pattern to be complete. and that would show that the buyers are back. i think by the time that happens, it's going to be too late, fitz, but he thinks the upside's minimal, so he's a bear. when technicians disagree, what do we do? we fall back on fundamentals. the private-label thesis is still very strong, because private-label products are a great way for supermarkets to make more money. see, it's not just a trade down play toward cheaper products that will evaporate when the economy improves. it's what i call secular growth trend towards more private-label foods. treehouse is one of the biggest winners. 61% of

fitzpatrick thinks bank of america could be heading to $25 based on these technicals.oes he think that bank of america has so much room to run? the thesis is based on the idea of something called volatility expansion. basically, what that means is that after a period of low volatility, okay, where buyers and sellers are essentially resting, as soon as there's an increase in the volatility, the bulls and bears get off the sideline, essentially low volatility ultimately leads to explosive action after a significant amount of turnover. so, let's take a look from may through july bank of america was churning within a defined trading level, see? i mean, it's kind of going like this. that's called churn, okay? that's churning. for most of june and july, the stock pretty much fluctuated, very small, $12, $13. every time it would go above $13, they would flood the market with supply. fitz thinks the sellers at $13 were people who picked it up at $10. there was a gigantic equity offering, stress test related, and he figures people who bought it at $10 are trying to lighten up a

dan fitzpatrick! isn't that interesting? >> that's because a famous investor like john paul son is in there in the stock. >> oh, that guy doesn't know anything. >> hank schmidt, pretty lousy fdic report, okay? lots of losses, reserves are too low, for all we know the insurance fund is in trouble. but let me just ask you on the flip side, you have an incredibly steep yield curve, 350 basis points from 10 down to short end, anchored by zero. can't bankers keep making money and grow their way and earn their way out of of their problems with this incredibly steep yield curve? >> absolutely, larry. but why go to such low quality, speculative stocks. these high-risk stocks are really speculative stocks. and do you really want to be an owner with the u.s. government? we think not. >> what about citi? you're talking fannie and freddie, i take it. what about citi, which, you know, what uncle sam owns a citi now. >> at least a third. look, we would put citi in the category of former blue chip, now cow chip. >> whoa. >> that doesn't me

to fitzpatrick it indicates an increase in supply. sellers are now rushing to get out of the trade. the big money is leaving. or a lack of demand. both of these are bad. only latecomers to the story, clowns like me who read the paper and said i'll go buy some. latecomers are notoriously low capitalized. they're home boys, not the big buyers. the response is the same according to fitz. going lower, take your profits. hey, you know what? i wasn't satisfied with that. i went to another guy. i went to rick top gun trader bensignor, chief market strategist for execution limited. he runs top gun trader for the street.com. he also hated it. he had similar reservations about fdo because the stock at $31.32 now has gotten too far away from its major up trend line. it's gotten too far up. he thinks there's a lot of down side, not much up side. worrisome. even though i like the food stamp thesis, i've got to till, i care about this stuff. i've got two top-notch chartists telling me the big money's exiting when i'm moving in, that makes rechallenge your thesis. that's what i did with family dol

fitzpatrick, who worked on his 1980 campaign recalled watching him come by. >> i have seen him come by here many times. this was a place of peace and sanctuary for them. >> since i was a boy, said ted kennedy, i have known the joys of saving the waters off cape cod and in all of my years of public life, i believe that america must sail towards the shores of liberty and justice for all. there is no end to that journey, only the next great voyage. >> a neighbor and washingtonian, vince will bourne, a friend of 30 years, spoke of ted kennedy's acts of kindness. >> i know of families whose children had been in iraq, he would visit them and read leer ts tt >> there was a setet--ade stey stream of visitors signing the book of memories. >> this isomething that i think we need to see in politics more. i hope this does not die with ted kennedy. >> i'm looking at congressman bill dela haut of massachusetts right now, a friend of senator kennedy. he said, again, ted kennedy had thousands upon thousands of friends and people really never understood the many acts of kindness and compassion and help

lisa fitzpatrick from howard university joined us to discuss how those getting vaccinated could not spread germs. >> it is a good time not to touch your face and we inadd vertently touch our -- we inadd vertently touch our face, so covering your no or mouth when you cough and sneeze, we need to do all of those very basic things that our mother told us about when we were growing up. >> vaccine trials are going on nationwide. the hope is to have a vaccine ready to go by the fall. >>> now to the tragedy on the a maare back at work looking for the remaining victims. crews hope to pull the wreckage of the small plane out of the river today. >> authorities say the bodies of 7 of the 9 victims have been recovered and two others remain missingch the chopper's wreckage has beenpulled from the river but the piper is a difficult challenge. >> if anyone notices any debris or any other evidence that might wash up on shore that they've seen or that they have, please notify your local law enforcement officials. >> reporter: saturday's mid air collision killed five italian tourists celebrating the 25th we

lisa fitzpatrick of university hospital. thank you for joining us.alk about the vaccine -- the trials are underway today. talking about a couple of doses here. but why the need for more than one dose? >> well before we get to that, i think it's important to remind the people about the purpose of a vaccine. it is to prepare the immune system to defend the body when it encounters a new germ like this new virus, this new h1n1 strain. so if you remember, when children are first vaccinated, theych have to get more than one dose. so they get one dose to show the germ to the body and than they get a booster to enhance the immune response, so it's the same thing because most people have not seen this strain of the virus. >> right. and they're also recommending you get a regular flu vaccine as well. is that necessary along with this swine flu vaccine. >> i believe it is. because the season flu strain is completely different than this new strain. so this new strain is an assortment of different strains of flus. so because it's completely different, it's import

newshour relars mark shields and david brooks; unirsity of new hampire history professor ellen fitzpatrick; anron ollack, the executive direct of families usa, a heal care advocacy gup. so, mark, his lislative record ich we've been hearing about so much tonight i a bibyroduct of vision or simple longevity? it was a lot more than longevi. we've had senators ser not as long not many as long as he did but we've had people with grear seniority. whatt was wasan iredible ability,hich has been touched on inhe early discussions he never demoned the other side, a colleague across th aisle. they always view today's adversy as tomorrow's tential ally. and it w a gift, and whener he stood i the senate press gallery and watcd him go on the floor, i don't care when was, oer senators would flock to him, a he always had personal note for eac of them, and heave a god-tured needle it was a remarkble ability to beat the same time someone you always kn where he stood on the issues and ere whathe stood for, yet, at the same time he was the one who could establish comomise and consensus. it wasn't just tranctio

so while i'm not happy that we missed as much of this big lot move, although dan fitzpatrick, our chartistcharts, did catch it. i can't boot the darn stock from the competition just because it's run a lot. and even though big lots' growth rate is just under 10% is in line with other retailers, home goods and retail companies, it trades at only 12.5 times expect 20d 10 earnings. two points below tjx and well below cosco, which trades at 18.7 times. cosco is lower than bjs. here's the bottom line about bic lots. even though b.i.g. lots sells cheap merchandise, a lot of its discretionary tied to housing, which is why it's in the running for discount king, and at the very least, it's discount bishop or discount rook. john in carolina. john? >> caller: hey, jim. big unc wilmington see hawk, b, b, b, boo-yah! >> holy cow, man. unc rocks and your branch rocks and i'm loving it. >> caller: i was wonder what you thought about ruddic incorporated, rdk. they operate harris peter, the grocery store chain and the textile company and i wanted to know if you think american holds the stock back and the xe

and our bear, really a semi bear, dan fitzpatrick, president of stock market mentor. dan, the fact of the matter is, the cash for clunkers generated 16% sales, according to industry sources, that's the gdp number. but i do agree, dan, and here's my question to you. the rest of the sales performance was lousy. how does that impact your thinking on the market right now? >> it really basically just confirms what i'm thought, which is the market is acting -- i can't say irrationally, it just does what it's going to do, and i think it doesn't pay to overthink it, but the markets discounting a slight recovery because we're basically manufacturing stuff, like this cash for clunkers. you know, you can't pull these tricks out of your pocket and really assume -- assume that it's ultimately going to fix the economy. and help the retailer. or the consumer. we have still got way too much debt that the average guy on the street is carrying, and they're not going to go out and buy this stuff. >> scott, isn't the bottom line -- the news is mixed today, the economic news. that's kind

are you worried about china like dan fitzpatrick is? >> no.ou start to look at the components that's gone on in asia. japan is turning and you look at south korea's market right now, it's doing extremely well, a leading indicator for technology stocks. i don't depend on china for all the growth because it depends on the united states. there's positive growth in china, not like advancing at minus 2%. china is growing. as soon as the u.s. starts to pick up on the front end of the economy, you will see china's growth improve dramatically. i'm not concerned about growth right now. i think we're doing well. we went from negative growth in the second quarter to plus estimate in the u.s. and most people six weeks ago wouldn't have expected that. >> that's true, a lot of people have been raise iing efforts fo the gdp in the united states and a lot of people essentially did was up their earnings estimates for 2009 and 2010, thought it was going to be 40 bucks and now 52 bucks. you start pricing that in, you obviously get a higher market. >> here has th

share a quote with you from mike fitzpatrick at ms global. oil record oil demand from china, where record imports were registered recently will not be enough to carry the world out of the recession either. this is the lows for the whole month of august. a lot of traders coming up to me and saying see how $65 is defended that will be key. preaching to the downside, look out. i also want to take a quick look at the metals market, down across-the-board in commodities, you look at goals a weak ago, talking about potentially poised for another push toward 1,000 that is off the table now. i want to point out, similar to equities, right now, settled into a range in the metals. whether there is anything to break it out toward the end of the session, remains to be seen. commodities across-the-board, melissa, down $2709. how quickly things change, lost $3 on friday, then this 70-plus four days ago. >> the bears are in control. brian, thanks so much. >>> stocks beginning the week on the downside but is this selloff a healthy sign for investors? joining

thank you, bill fitzpatrick, see you later. >> thank you. >> coming up next, we focus on tiffany. they raised their guidance, but hermes missed. what's the take-away for investors? are people ready to spend on luxury goods or not? we look at the stocks watch. >> and check out the shares of some of the players in the luxury space. tiffany, coach, nordstrom all higher. sax trading fraction nael lower. you're watching "power lunch" first in business, cnbc worldwide. carol, when you replaced casual friday with nordic tuesday, was it really for fun, or to save money on heat? why? don't you think nordic tuesday is fun? oh no, it's fun... you know, if you are trying to cut costs, fedex can help. we've got express options, fast ground and freight service-- you can save money and keep the heat on. great idea. that is a great idea. well, if nordic tuesday wasn't so much fun. (announcer) we understand. you need to save money. fedex >>> a few fresh clues about the health of the high-ends retailers in this tough economy. cnbc's julia boorstin joins us with more on that. hi, julia. >> tiffany a