take freeport down another $2. you have me very interested. >> dennis, you got a view on the s&p here? >> i'm a little bit short. not dramatically so but i think we've gotten a little top-heavy. i think there is very little insider buying, enough new supply coming at us. i went home a little bit short in the operative words here are "a little bit." >> dennis, it is a pleasure to talk to you. you are the commodity man. now it is time to take your position on disney. the mouse house reporting tomorrow after the bell. traders looking at the margin of the theme parks. profits and this little itty-bitty film called "up" which just happened to gross over $300 million worldwide. i have two high school daughters. the really cool. they're not going to go see the animated cartoons, are they? are you kidding? listen, i used to go to the drive-in. not only that, i go in 50-year-old cars. i had all the teenagers in there seeing the movie for the second time. what a great flick. >> i'm with you! >> what do you think, pete? >> i'

one of the largest players is freeport mcmoran. take a look at freeport. in an exclusive, we go inside the company's second quarter earnings with the ceo and president richard adkerson. welcome back. >> good to be back, maria. >> can you characterize what the highlights were in the quarter. >> the highlights were that we had a very strong quarter. we developed new operating plans at the beginning of the year and we executed across the board on those plans and then copper prices are higher now than anticipated earlier in the year. and that resulted in very strong results for our company. >> what are you seeing in terms of growth around the world right now? what are your most promising markets? >> well, it's china. china has been the support for the copper markets during 2009. both through its infrastructure spending and the performance of its economy. and replen fishing its stocks. so china has been the source of copper demand globally in the face of weak demand in the u.s. and the western world. >> it's interesting because as you see china implement its st

i do like freeport. think richard does a good job and i also like bhp though that company is starting to say everything that's been good is all about china. let's wait until the mineral stocks come down. they've had two big runs. tina in mississippi? >> caller: boo-ya from mississippi. >> well, boo-ya so we got to respect it. >> caller: great. the company cvx chevron? >> now you're talking. here is a company that preannounced when everybody thought it was a big quarter, the stock goes down to 6162, all my e-mail saying this. why? because everyone knew chevron was having a bad quarter. now with the futures ahead of us a 4% yield and i want to tell you to buy, buy, buy. buy chevron. and "the lightning round" is over. [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting? are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent

sprinkle in something not on the dow, but freeport-mcmoran. they didn't knock the cover off the ball. that ceo came on today and he made you a bull even with the stock at 68 because he talked about the fact that they'll have to pick up the production levels because the demands are just immense right now. >> every use of copper is something we should be excited about for the next five to ten years. copper is your long-term play. it's free fort, southern copper and tck reports tomorrow. >> let's talk about the financials today. that was the part that really held back the markets overall. morgan stanley showing a weakness more so than its peers and in fact, analysts said more writedowns were at the heart of investors' worries today. >> commercial real estate is at an inflexion point. the losses are going higher so that's why you will see some writedown at morgan stanley, we think you're seeing that in spades at a lot of the regional banks. >> commercial real estate at an inflexion point. the losses are only going get worse. karen finerman, we tal

if that's the case, freeport is still very cheap. volatility is pricing in a very small move. >> let's just touch on, we talked about coal. a lot on the show. coal up 5%, 6% across the board. remember, global exposure, they want copper. they want coal. they want potash. >> we talked a lot about the oil services needs. does it concern anybody what halliburton's ceo said in the commentary? >> i don't think so. >> no meaningful recovery in natural gas or demand for drillers. >> this is starting to become a positive thing. they can put more drilling dollars to work. they're not spending as much on the other parts of the production cost. i think halliburton is very conservative here. i think -- baker hughes and others said the rate count is going up. this is a high beta part of the oil space. i think natural gas is a different funneledmental story with the drillers and oil and integrated oils which is my trade here. i think these guys have great kmoe su exposure here. they have dividend yields that are fantastic. >> and the tech resources

it's how dow chemical went to 5, and freeport went to 15. now the bankruptcy risk is off the table, and when that happens, of course, you catch double, even triples if these stocks. all those ones we mentioned, they all triple. instead of thinking they're incurable, we know when the economy gets better, these companies should get better, too. you have to look at these companies as victims not of a terminal disease but severe trauma, maybe multiple gunshot wounds. an injury that's severe but the doctors are no longer determining it life-threatening. the industrial patients are no longer in critical condition. they're going to survive. but they still have been hurt, so they're operating at about 50% of capacity. their stocks are down 50% from their highs. over time they could return to 80% of their precash conditions, though. 80% high, but the market's pretty good. i'm predicting a full recovery for many years of the ones that go through financial rehabilitation. that's a much more optimistic prognosis than where we were a few months ago. wher

freeport mcmorn cushion against the weak demand. i spoke exclusive to the ceos of both companies. this is what they had to say on their ex-posh to the emerging countries, particularly china. >> most of the strength is in the emerging market theater, particularly china showing signs of an emergent be recovery that we think is -- and they never went negative but they should register close to 8% real growth they targeted for the year. china has been the source of copper demand globally in the face of weak demand in the u.s. and the western world. >> and for more on the earnings season so far i'm joined by portfolio manager at u.s. global investors. good to have you on the program. welcome. >> good to be with you. >> thank. >> you romeo, let me kick this off with you. what's different this earnings season going into the second quarter period, a lot of people saying this is the most important earnings period in a decade because of what we have all just experienced with regard to the global economic 0 slowdown. we're waiting to hear comme

an upbeat outlook from caterpillar and lower but betterhan expected earngs from merck, dupont and freeport mcmoran. after the tech-lad nasdaq market faileto join the blue chipon the upside, the market pued back in the early afternoon. but with apple a yahoo on deck for earnin after the bell stocks snapped bacin the final hourf trading. >>aul: california's lawmakers have a deal close the state's $26 billion budget deficit. now, after eight mons of political wrgling, they're woing to line up votes for the agreement. it calls for no netaxes and $15 billion in cuts. the remainder of thehortfall wi be closed by borrowing from local governmentand speeding up t collections. education took a big hit, wi $9 blion in cuts to primary schools and state colles. while ere is mounting position to the agreement, a vote is expected trsday. >>uzanne: joining me now with more on toy's bernanke testimon plus a closer look at what people arcalling the "jobless recover is lakshman achuan. he is a business cycle experat ecri. lakshman, welcome again to t program. >> thank you. >> repter: before we get into ourop

an upbeat ouook from caterpillar and lower but better thaexpected earningsrom merck, dupont and freeport mcmoran. after the tech-laden ndaq market failed tooin the blue chips onhe upside, the market pulledack in the early ternoon. but with apple and yoo on deck for earnings aer the bell stocks snapped back inhe final hour of ading. >> pau california's lawmakers have a deal to cse the state's $2billion budget deficit. now, after eight months political wranglg, they're workinto line up votes for the agreement. it calls for no new tas and $1billion in cuts. the remainder of the shofall will bclosed by borrowing from local governments anspeeding up tax clections. edation took a big hit, with $9 billi in cuts to primary schools and state colleges while theris mounting oppotion to the agreement, vote is expectedhursday. suzanne: joining me now wit more on day's bernanke testimy, plus a closer look at what people e calling the "jobless recovy" is lakshman acthan. he is a business cycle expt at ecri. lakshman, welcome again tohe program. >> thank you. >> rorter: before we get into our topic of t

a lot was short covering and freeport and the steel names and in potash and all the ag names. they are exploding back up. they should explode back up. i want to comment, we had the numbers earlier on the week with the contracts that were done with the indians that people said were benchmark prices and would push down earnings. these stocks are valued $350 a ton.n. the contracts were renegotiated at $460. these stocks all look cheap. >> you are talking about the oih and the service sector, look at the commodity space, bucyrus and copper has been holding above $2. today got to $2.40. we're talking about copper continuing to maintain, and china and india, if the story is for real and it's not just about restocking but if they sta start acquiring, if there is growth with the consumer, they need the guys in the mining area, that has a lot more room. >> we'll take a pause in the commodity conversation and get back to it with dennis garman later in the program. >>> jpmorgan leading the way as most financials closed up about 4% or more on the day. the financials, in fact, the stronges

freeport-mcmoran. these are intraday charts i'm showing you. all of a sudden you get the middle of the day about 11:00 boom, they start moving to the up side. you get this lift in all these major commodity stocks. there are the dollars. and the dollar strength or weakness will be a major theme here for the month.h. as for citigroup just want to note today that remember, there is a rebalancing going on. a short while ago citi completed a big exchange of its preferred stock for common stock. today the russell indexes are rebalancing to reflect the increased weighting of citi in the indexes. most importantly the russell 1000. so traders at the close have to buy citigroup because it's got a bigger weighting. and sell some of the other stocks short.. this is going to happen next wednesday as well with the s&p 500. bottom line you're going to get a lot of volume, not necessarily much in the way of price swings. tradertalk.cn tradertalk.cnbc.com for more. and mike, it's been a great month for the nasdaq as well. >> you set me up perfectly because we a

we have 4, 5, 6% increases in caterpillar, in freeport, u.s. steel and alcoa. bottom line is, 8-1 advancing to declining stocks.. first it's over at the nasdaq.. you know, bertha, we are also having good moves up in the nasdaq, as well. we're approaching the june highs. >> yeah, and that is all thanks to intel, which at this point is at at a 9 1/2 month high, moving the big cap sector and moving the pc universe. we'll see if google can -- one trader was worried about google's earnings thursday. the intel's chips moving forward, best performers of the day. the worst performers so far are the haulers, the truckers. j.b. hunt says pricing is still a big problem did he say the pit the fact that fuel has come down. roth has been hitting it out of the park and rilely automotive, people continue to fix their cars and hold on longer. >> thank you very much. the buying was kind of muted after that eia data came through, but we've gathered steam as we have gone on here, firmly above $61 a barrel, the nymex about 61.27. let's take a look at the numbers, the drawdowns when

it's nuts that you think you should ever own one, it's also news that mineral companies like freeport mcmoran, that they're doing well. the whole end his heartbeat from washington. if you only paid attention to the press, you would think they're great shorts. you used to sell the minute practical companies, but now they're working, a real break with the past. again, i regard this as news. actual news. and the immediate use will never focus on it, because news is about another country, china, not us. we're just starting to realize china has passed us, because we are capitalists who believe in social and financial engineering, while the communist chinese are just about engineering. the bottom line -- don't let the stories about this or that troubled industry get you down. the industries that are troubled have been troubled forever, there are no revelations, there is no news there. the papers aren't meant to make you money. it's not in the job description. it's my mission to keep you from losing money because you're paying too much attention to the wrong sources and not noticing any of t

i'm talking about stocks like freeport, bhp, caterpillar, joy global, norfolk southern. they're all cyclical companies that we know reported better than expected numbers, or at least in line. these are companies that the market loved a week ago. if you only looked at america, this move would seriously confuse you. i mean what the heck's going on? why are stocks that were lauded for doing better than expected now getting pummeled? what's that all about? but you have to remember that america is no longer sitting on top of the world. all the stocks i mentioned, they're dependent on china. and they're getting crushed. because the market now believes that china no longer needs anything from the rest of the world. china's full up. that's what everyone was saying behind the scenes today. what was the tell? something even i never saw coming -- two straight weeks of copper inventory increases where it's kept. the repository is in london. for me, that was the signal that china's kaput for now. i mean that's the reason why shanghai's market took 57% plunge last night. and brought o

when you look at the rallies in freeport and u.s. steel, bhp not to mention the oils and the oil services companies, you have wonder if the market is getting ahead of itself. there is nothing in sight that is any good out there. you have to ask yourself, are we jumping the gun with all the bullishness? ask yourself, do we have blinders on? no. this was not some sort of weird -- never mind. use your imagination. of course we're wearing blinders. and i don't think that's a bad thing. this is a moment. and i've seen them before. you have to leap before you look. you have to get ahead of the other guys. you have to start running ahead of them. they won't call you back. is everyone else out of the gate was out of the gate before the race begins. those who wait for the -- to go off before they start running, they'll look like dopes. those who don't blind themselves to the negatives will never get out of this. to put it simply, you have to jump the gun with blinders on. you have to get that silly get up. if you don't, you'll miss the moves.

instead of focusing on how much money companies like eaton, ppg and caterpillar and freeport-mcmoran can make when things get better because they become lean, mean, ruthless firing machines that take no prisoners in the name of earnings. ♪ hallelujah >> which is what wall street wanted to hear. bernanke seemed to indicate things aren't getting any better at all and we're getting as good of numbers as we're going to get. >> the house of pain! >> which is what washington needed to hear or to put it another way, bernanke's negativity was a necessity. otherwise you can bet the congress would have done anything in its power to stop the sec measures that the fed and the treasury have been doing to stabilize the economy and things would get a whole loss worse. hey, ben, to paraphrase, cramer fife barry goldwater firing in defense of profits is no vice. i would have given him applause. a standing ovation pch as a matter of fact, to quote market historian rihanna -- ♪ ♪ >> but he put on quite a show and because of his down beat speech, congress won't cut the credit to make things better come

it is not completely freeport- free.precipitation across central and southern portions of virginia and even some showing up not too far from us. that is on this rataid are. our other radar is not showing that. there is some moisture out there in the ground and some cloud cover too. here is your surface map for today. here is what is we think will be happening. there is a cold front. it is washing out as we speak. but still the focal point for some shower activity across southern and south central virginia continues to push off down to the south and wash out. for us for today, we'll see a good a of sunshine despite some morning clouds. more sun building in today. another warm one. high today about 87 degrees. one degree below normal for this time of year. fohttigon, we'll see a few ig clouds here a nder the. but it will be mainly clear with seasonal temperatures again. lows overnight in town in the yid-60s. r ouve-day forecast tomorrow, another warm one, upper 80s once again and then a hot and humid day again wednesday an

because last week on the freeport call, srx talked about how bad the market is and how it's still notoming back, you're in one of the three markets that -- he says that's the worst one. take half off, play with the house's money, you'll never regret it, and stick with cramer. >> the lightning round is sponsored by td ameritrade. stands for. think about it. why pay investing fees you shouldn't have to? or account fees that aren't clear? like inactivity fees? or maintenance fees? it's not right. and you know it. and the thing is, the other investment firms know it. but they do it anyway. and that's just not fair or straight-forward. td ameritrade. independence is the spirit that drives america's most successful investors. >>> i always say that you've got to listen to the conference calls if you want to be a great investor. but it's also true that you need to listen to the conference calls if you want to be a great trader. case in point. on friday, the oil service stocks were all getting hammered. they were all going down, because schlumberger, the oil services king, reported a disappoin

because last week on the freeport call, srx talked about how bad the market is and how it's still notoming back, you're in one of the three markets that -- he says that's the worst one. take half off, play with the house's money, you'll never regret it, and stick with cramer. >> the lightning round is sponsored by td ameritrade. trading is all about strategy. and strategy... is all about information. heat mapping shows me where the money's moving. twenty five hundred stocks... one quick look. that's where the action is. plus, this amazing gadget... it's called the telephone. i can call td ameritrade anytime and talk trades, strategy... anything. td ameritrade. built by traders, for traders. this is what i need. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account. just because they're inside you doesn't mean they're protected. oh, ladies. let's say you have osteoporosis. i do. you could be losing bone strength. can i get it back? (announcer) ask your doctor how to help treat osteoporosis with once-a-month actonel. actonel is clinically prov

the big names like alcoa and freeport, u.s. steel, all to the up side.nd even the big company international stocks are moving. brazil is up. 5.3% today in the big commodity names like vale and petrobras to the up side. csx had good earnings. airlines are up. amr had a loss that was not quite as bad as expected. some of the other names to the up side as well. finally look at the media stocks. gannett reported earnings better than expected.d. don't kid yourselves, we know ad revenues are down 32%, but they did say they saw some bright spots in ad revenue for the third quarter. all the big media names are to the up side. tradertalk.cnbc.com. bertha, of course having a good day at the nasdaq as well. near multimonth highs. >> they really are. and right now we've also got intel at a 9 1/2-month high. just over $18 a share. it was a net loss because of the e.u. but beyond that you couldn't get much more perfect. beating on the second quarter, being bullish for the third quarter, and really setting a bullish tone as far as technology here in the second half. th

we had nice gains in alcoa and freeport and u.s. steel as well. also we saw some of the big global industries, global companies to the up side. brazil had a nice day. and all the companies that trade down in brazil also had a nice day. transports, another beneficiary of the commodities rally. we saw some of the big names in railroads continuing to rally after csx made positive comments yesterday. airlines were up because amr had earnings that were not quite as bad as some people had anticipated. you see this little string of positive news here. it's not a rally on nothing, folks. this was much more substantive than some of the other rallies we've seen. finally, the media stocks strong.. gannett had earnings better than expected because they're cost-cutting giants, folks, and nobody has any illusions about what's going on in the media business. ad revenues were down 32%. but maria, even gannett said they saw some glimmers of hope for improving ad revenues in the third quarter. the key point here, data points positive. real fundamental news. >> than

you play it through freeport mack. >> a month ago jared said stay away from this peanut butter and jellytrade. >> with a name like smucker's you probably got to sell it. up 10% statistically. the stock is way outside what it normally does. if you own it i think now is a good time to start removing some of those profits. >> a good sound bite, jared, but the shares are up 5% since then. >> again, the same story holds true. with a name like smucker's it doesn't typically make these sorts of moves.s. i am more of a statistical trader. i believe most people were in profit and i was looking to protect it.. i still don't think it is a name that is going to outperform moving forward. >> the pit boss gave you an entry point on boeing. that went bad. >> boeing just got in front of itself. everybody suddenly overnight, the united possibility of this big order and everything, everybody immediately put money on boeing. it pulled back to 44, then you can start looking at boeing again. >> to be fair it did pull back to 44 but then it kept losing altitude. now it's at 41. >> you're right. you know, when

i'm talking about freeport. it's going to trickle down to steel. steel hasn't seen anything at all which is why i'm so jazzed about nucor. but you're right. the stimulus dictated by nancy pelosi has not worked in this country versus the chinese stimulus, which is still moving on. all right, listen. the bears have had their stuffing knocked out. where can you still buy even though we've had this big run? i think tech. because tech is immune to washington. tech will come down tomorrow off the amazon quarter and then maybe you do some buying. but never forget we want to take some profits. because you never know when this guy is going to come back again. stay with cramer. >>> coming up, is a bottom for the steel industry in sight? cramer gets the state of the sector with nucor's ceo dan dimicco and finds out interest this dealmaker whether the economy is ready to forge ahead. >>> plus, which smart phonemaker takes the top of the tech heap? jim makes the call on which could be dialed in for dollars and which you should drop on the sell block. >>> and la

builders and i think the drill-down trade comes back to the commodities trade whether you're going to freeport or southern copper, troy global, all those various names, cat pillar, the exposure they have there. >> that's the point.. if we wait for the numbers to show improvement, you're too late. >> i don't own it but i think centex is interesting. i thought when centex announced the deal with pulte homes that deal will close shortly. that was a seminole event in the recovery of home builders stock. those names have strong valid sheets and that he will be positioned to take over from others in a weakened position. who knows where the bottom is. you only know after. this is good data. >> we do know that housing is strong in brazil. hxm, they've gone from $7 to $26. interest rates are low in brazil. these banks are all selling and they are all issuing more mortgages. >> and my favorite story in the entire world which is the emerging middle class where the poverty-stricken finally emerge and are able to buy homes in places they never could before. >> that's the story.y. these guys are building lo

and of course you can see different names, but freeport-mcmoran typical commodity stock rose about 110 eastern time. started moving up. and of course came off the highs towards the close. but there you see the nice move to the up side. finally here's citigroup and here's the crowd in front of citigroup. citigroup completed a big exchange of its preferred shares for common stock a short while ago. today there is an add into the russell indexes here because those who are weighted to the russell have to increase the shares that are in there.. so they're going to be buying citi at the close. the volume will be heavier.. it's not clear there's going to be any price move but that's what they're trying to do here. there will also be an additional change on wednesday when the s&p 500 also increases its share weighting for citigroup as well. maria, back to you. >> all right, bob, thanks very much. we'll check in on that citi story as it continues to develop for you. meanwhile, let's take a look at the other business headlines we're following for you tonight. the commerce department today repor

freeport mcmoran. u.s. steel. alcoa. that name taking a big hit ahead of earnings.ome out on wednesday with that earnings story, and what we'll be looking for is not only a demand picture. how are people reacting? how is the universe reacting to demand for aluminum as well as other commodities? but the pricing picture going forward for the second half of the year. there's the

so if you look at alcoa, freeport mcmoran, u.s. steel, declines of 4, 5, 6% and those are the classic names that usually begin to move over if you get a strong dollar, or just start getting a little tired. and that's what we're seeing right now. trader talk on cnbc.com. mike, how are we looking at the nasdaq? >> the nasdaq is 13 for 14 in terms of up days, and it doesn't look at this point, barring an afternoon session turn around, that it's going to be 14 for 15. here is that take-out deal that jim goldman was remembering to, shares of sbss up 40.5% right now on that buyout by ibm. but bob was talking about health care, and i really wanted to call your attention to this really nice one-week chart of teva pharmaceutical hitting another new high today. the world's biggest generic drug company beat the street, reaffirmed guidance for this  year, and raised its guidance for next year. again, those shares are at a new high. let's go to rick santelli back at headquarters. rick. >> thank you very much. it's a double downer today in term

in the next week or two, we should be looking at nokia, ge later this week, freeport next week, pat pillar, these are the global stocks that will tell us really how this economy and recovery is doing. and the answer is not very well. which is why the markets have been sideways for the best part of a month. >> ned, would you go along with that? are those going to be the flash points for those types of companies? >> i guess i have some disagreement, and that is that those companies that were mentioned like the caterpillars and the rest are late cycle stocks, anyway. but i do believe that we have to look to see what is sustaining decent rernings this period of time? still i'm looking for the sceptership out of this. the most important part of the market is that it was with stand the data building the foundation for the major bull market for the next two to three years and that would be auto sales issuing up a bit better, housing sales doing better. the key element here is how do we look today versus how do we look three months ago? people saying, yeah, we've had a 25% rally. yeah, but we've h

. >> southern copper, freeport upgraded from buy to hold from citigroup, southern copper upgraded to with a target of 22. goldman sachs upgrading a couple of -- upgrading btu, downgrading. tractor supply, second quarter 148 to 150. that is well above expectations. you can buy cool clothes at tractor supply, flannel shirts, stuff like that. overalls. family dollar reported 62 cents, guidance had been 54 to 58. look at that move. family dollar, fdo. energy rejecting officer from exxon. amgen, higher as a late stage trial of its bone drug worked better than one from novartis. m affirm b. >> humanize. >> humanize antibody. fda agrees with either application for a potential block buster drug, diabetes drug you use once a week. >> all right. coming up this morning, we'll get the top stories of the day plus "squawk's" governor's conference convenes the next session. joining us from keystone state ed rendell, democt trying to solva stalemate in thatstate. we'll talk to the governor in a moment. so you can be a diiplined trader. by selecting fm ght advanced triggs, your order getexecuted, eve

by the detention policy task force for determining whether to proceed with prosecution or article freeportadministration is ready to recognize the guidance in these circumstances to constrain the prosecutorial discretion and at the same time the protocol plan for these to be clarified to ensure that discretion is exercised that is consistent with the rule of law. the in recent testimony for the house has offered a series of specific recommendations for how the commissions act to be amended in proceedings comply with the relevant law and i ask that be incorporated in the record if possible. thank you. in addition i think it is critical that any new legislation include a sunset the structural mechanism to ensure that commissions are limited in purpose and duration. such limitations are essential to bolster the legitimacy and also ensure the constitutionality in has the supreme court is recognized our constitutional structure has a preference would be carried out by an appellate courts. under article 3 billion in keeping with this resumption of the extent to the supreme court improve use of a