and i used to at goldman -- work at goldman. and praising goldman.n. that said, a lot of other firms out there too that should get their just due. morgan stanley. >> morgan stanley will probably also do great numbers. but if you are expecting blowout numbers from everybody else, i think it's somewhat unlikely. bear in mind that the estimates from these companies, the analyst estimates you can drive trucks through was about $2.50 to $4.50 for goldman sachs. that was the analyst range. so nobody has a clue exactly what some of these companies are going to do. >> let's dive into this retail sales report, because you are making the point, and we have said this. it's not all good news here. >> yeah. here's the important thing. 0.3% autos, that's not bad, up several months in a row, but it's really spotty here, and that's because if you look compared to last year, we had those rebate checks last year that people were spending, and the comps are tough now. so electronics and food and beverage, sporting goods from up. but a lot is down, furniture, building mat

there was a guy goldman sachs. he is going to appoint to oversee tarp and one of first things he does, goldman sachs has to be changed to a banks holding company. that way they can have access to tarp, fdic money get money from the fed. that way they can be saved! right, right. so cash carry, he's out. he has been replaced by gary ginsler, he is former partner at goldman sachs. now, once cash carry has made goldman sachs a bank holding company, they don't have that pesky sec thing. they have a guy named steven friedman, the former chairman of goldman sachs, now overseeing them because steven is at the fed, used to be at goldman sachs. but not now. steven wasn't just used to be at goldman sachs, he had a lot of stock. he was on the board of directors. that is the conflict of interest. you can't do that unless timothy guided geithner comes to the rescue. please, please, can we have stevens who is on the board oversee goldman sachs? sure, of course. timothy had geithner says absolutely. sure we can do that. he gives t

goldman is extremely well connected now what is different about goldman that some of the other investors for more investment banks? some of them have been in merged into banks and some of those banks merged with other banks that weren't doing so well so they're mixed in with some weak sisters and right now as some of those mergers have weekend for court the banking system and they weren't doing as well as goldman in the first place. but they're not as weak as it would have been. let me finish. if you look at what happened with a i t as an example goldman get an immediate transfer of about 8.1 billion and collateral from aig because it was the counterparties cut some of those aig cut had been training with aig prior to that prior to the bailout of the id you got more than 7 billion from aig in a really pressured a i t in pressured aig auditor. so if they could get more collateral out of the idea before they failed in a get enormous windfall of collateral after a i t fail if they never would have gotten that had we not build out a idea a aideed bailout balloon from 85 billion to no more th

another golden quarter for goldman? they're expected to post results before the opening bell. >>> plus, an upbeat tresh resect geithner storming the middle east for american investment and the dollar. >>> and it's a long way from manhattan's upper east side. bernie madoff is sent to a federal prison in north carolina called butner, as "squawk box" begins right now. >>> good morning, everybody, and welcome to "squawk box" right here on cnbc.. i'm becky quick along with joe kernen and carl quintanilla. our top story today takes us inside earnings central. goldman sachs reports second quarter opening results before the opening bell today. the financial powerhouse is s expected to post earnings of $3.50 a share on revenue of $10.7 billion. meredith whitney upgrading shares of goldman early yesterday before joining us on "squawk box" to explain why. >> it's a bearish call, but a bullish call on the stock. >> on the stock. >> just as you were talking about, you'll see a tsunami of debt issuance. where you think goldman would

there was a guy goldman sachs. he is going to appoint to oversee tarp and one of first things he does, goldman sachs has to be changed to a banks holding company. that way they can have access to tarp, fdic money get money from the fed. that way they can be saved! right, right. so cash carry, he's out. he has been replaced by gary ginsler, he is former partner at goldman sachs. now, once cash carry has made goldman sachs a bank holding company, they don't have that pesky sec thing. they have a guy named steven friedman, the former chairman of goldman sachs, now overseeing them because steven is at the fed, used to be at goldman sachs. but not now. steven wasn't just used to be at goldman sachs, he had a lot of stock. he was on the board of directors. that is the conflict of interest. you can't do that unless timothy guided geithner comes to the rescue. please, please, can we have stevens who is on the board oversee goldman sachs? sure, of course. timothy had geithner says absolutely. sure we can do that. he gives t

get me shares in goldman?>> you're going to have a lot to say about this one. >> let's talk about today, real quick. today, choppy. state unemployment, high. that's bearish. housing starts, that's good, bullish. ibm earnings, bullish. cit with the jpmorgan, the goldman sachs possibilities, that's looked at as possibly bullish, okay, we have that. earnings, kind of bearish. you decide for yourself. citi, that one-time game on the j.v. with morgan made it look better. ge, light on the top line, helped by taxes, you decide. bac, credit losses were a concern. they were all down for the day. okay, a choppy day does not a choppy week make. let's take a look at how the week went in stocks for all three major indices.s. and larry said, basically, 7% across the board. the nasdaq for a year is at a full-blown bull market at 20% to theup side and the dow is only slight lay negative for the year. that's last week. it's friday night. let's look forward to next week, incredible. you thought this week had big names, forget a

gary is the former partner at goldman sachs. now, once kashkari has made goldman sachs a bank holding company, they don't have that pesky s.e.c. thing, you know, to look them over. instead, no, no, no, they have a guy named steven friedman. he was the former chairman of goldman sachs. now overseeing them, because

in the office of goldman sachs. they decided, yes, you should bail out a.i.g., so a.i.g., they bail out the day after they let their competitors go out, they bail out a.i.g. to the tune of $85 billion. these two geniuses, both from goldman sachs say, yeah, you got to do that for the economy. so, who is the biggest single payout from a.i.g.? what is surprise? on the check, make it out to goldman sachs for $12.9 billion. now, the treasury secretary, again hank paulson, remember, goldman sachs' c.e.o., he decides he needs somebody to head up tarp, you know, somebody to make sure he can figure it out. who do i know, who i do know? there is this guy at goldman sachs, neel kashkari, he decides he will be appointed to oversee tarp. he changes -- one of the first things he does is goldman sachs has to be changed to a bank holding company. why? well, you know, that way they can have access to tarp, fdic money, get money from the fed in the discount window. that way, they can be saved. right. right. so kashkari, after he make

goldman back to earth. joining us on the fast line, institutional risk to break down one of the biggest names. chris, great to have you with us. you're expecting goldman to meet or beat expectations given the run-ups on the backs of other upgrades out there. what would you recommend people do with the stock? >> i think they're going to perform well for the balance of the year. if you had an opportunity to invest a fund that had access to the discount window, subsidies, and you had ben bernanke and tim geithner as your lobbyist in washington, would you want a piece of that? >> i guess the odds are in your favor if you're -- >> but this isn't the bank. people have got to forget bank when you're thinking about goldman, this is a brokered dealer with a private equity fund. i used to compete against the private equity fund. i would try to get hired to raise money for somebody and they would write a check. you've got to stop thinking about them as a bank. they're a trading organization. >> let's talk about that t

on all these financials. >> goldman sachs. who's not long goldman who wants to be long? if you wanted to be long, you're long already. so unless you have a number that blows await whis number, i don't see how this thing doesn't pull back because nobody's in who doesn't want to be in. >> we've seen the pullback in citigroup. we've all seen that one. but there hasn't been a giant pullback in most other financials. they're below their highs, but we haven't seen any massive kind of sell-off like we saw in the early -- >> not the same. different story. >> we also have to look at the fundamentals in the banking sector are going to be looked at as raw positives for the s&p. i think this is going to be a positive catlist for the s&p but maybe not necessarily for financials. i'm still worried about technology as well for exactly the same reason. you get very high expectations. >> we've got the last question. i just want to hit you on the emerging market index. here's the play we have seen. china, shanghai is near a 52-week high right now. wait a minute. break this thing down. loo

>> goldman is the standard. i don't think you can judge anyone else by them, so, yeah, actually, i would be taking profits off the bank at this points in time. goldman is who goldman is, but i don't think you can put that on to anybody else. >> all right. let's lay out this argument. it doesn't mean anything for the rest of the banks, the financials, the biggest part of the market so j.j., you're seeing big bets in the options markets. that is actually bullish, even though our experts here on the desk on the halftime report are saying, you know, financials may not rise on the back of goldman. >> yeah, melissa, we're seeing in the xlf, we see some right out of the money call buyers, and i think the reason is, everyone is correct. goldman is in a league of their own. but i think this has given a lot of hope to the financials where there maybe weren't such great expectations that perhaps we can beat these expectations and send the market a bit higher. >> okay. so what exactly is the bet out there in the options pit

we need to fold up with goldman sachs. it was the man as far as the financials, these guys are truly the man as far as the tech. >> let's bring in an analyst, webb busch morgan analyst. patrick, great to have you with us. >> thank you very much. >> you heard the trader on the desk. they are positive on what intel had to say. at the same time, does that mean that going into tomorrow's session with a 10% gain, does that translate into the trading session tomorrow, what do you recommend clients do with the stock? >> i think guys short of term, i think taking profits probably makes sense. longer-term investors will like what's happening, but clearly intel showed up to the all-star game, too. >> in terms of the conference call in about half an hour's time, what is the number one call that you will ask the management? >> i'll give you two. first will be what do we think about p.c. demand in the back half of the year. we saw a nice inventory correction. the question really is what sell-through it, is what management thinks and ho

a huge franchise for goldman sachs. nonetheless, net revenues, $368 million. 54% lower than the second quarter of 2008. that did reflect as you might expect a lot less m&a. as for compensation bep fits. $6.65 billion. a full 49% of net revenues for the first half of the year. on the call, mr. finnier did say a couple of things. he said hey, listen, we did a lot of basic block and tackling. our profits wered is widespread and clients facing businesses on the subject of cit, asked whether or not they had written down any of the loans, he said we are well secured. no writedowns. he did edadmit there's a lot le risk capital available in the market, therefore those who are taking risk are going to be rewarded or significantly for taking that risk. he said there's been very little change in our own risk taking. again, i didn't get to follow up with any questions. as for head count which is down to 29,400, i'm believe it was down, down about 16% over the year. they 35,000 employees at goldman sachs a year ago. he did say that

on goldman sandwiches. goldman sachs. let's get to the word on the street right now. s&p 500 closing higher by 2.5% above the 900 level. good leadership from tech as well as the financials. welcome back. >> welcome back, it's good to be back. we've been looking and struggling for a long time now looking for somebody to lead us. we've been talking it wasn't going to be energy. energy led us for a while, now we've got a leader potentially coming back. it starts off tomorrow, starts today a little bit with goldman sachs, the financials, then you started to get, tech started working. that's what hit us back in march, started to move us in april. if this earnings season can give us a catalyst, that's what everybody's been waiting for and goldman sachs is going to kick it off. >> i'm going to put my skeptics cap on. this seems like a bounce, a reflex ahead of earnings season. karen, what do you make of this? right now it did just seem like a little bit of a bounce on really nothing, it was nice meredith whitney turned bullish, but throughout the day it's gone higher. >> gol

>> so goldman sachs -- >> goldman has plenty of operations overseas.y are not bringing that money back to the u.s. that's why they are not paying taxes on that money. they can make so much money legally -- bill: not enough. it's never enough. that's why we got into this crash. that's why the mortgage-backed securities and everything else. it's never enough. >> from what i hear, they have been making lots of money this quarter by betting against the u.s. housing market. i talked to a trader there, very negative. bill: they drove up the oil prices since january. >> the worst thing is that we, the taxpayer, backed $22 billion in money, in debt, that goldman sachs -- bill: obama did it. >> it happened actually at the end of the bush administration with hank paulson who was the former head of goldman who was running the treasury. bill: obama could have stopped it. you see, look, i'm getting tired of president obama saying that he is for the little guy when he isn't for the little guy. cap and trade is going to hurt the little guy. goldman sachs is hurting t

goldman soundly beat expectations, thanks to strong trading revenues. but can the momentum continue? as erika miller explains, experts say goldman has important advantages over its rivals. >> reporter: call it the goldman mystique, an aura created through secrecy and success. you won't find the company's name on its buildings, let alone a sports stadium, like citi legendary, and its second quarter earnings were no exception. the bank managed to blow away expectations in the midst of the worst financial crisis since the great depression. k.b.w.'s fred cannon says he knows how. >> the short answer is, they're goldman. the longer answer, though, is you have to remember what happened in the quarter, and that is we went from a period of a completely frozen financial market in the first quarter to one where liquidity came back through the government programs. so trading activity really did improve a lot in the second quarter. >> reporter: but there's growing concern about goldman's dependence on trading revenues. >> we don't consider it's first- half results

but then goldman sachs would have went.when the federal reserve made them a bank and they got the full access to the discount window and all the stuff that the fed gives you, and they do this, you got to ask yourself, why does the fed open up the discount window? generally they want to protect average people that put money with these banks just in case they run into some trouble that these banks, commercial banks, this is a protection for the little guy, can go out and these banks can borrow from the discount window. goldman sachs does not have any customer deposits. it's a plain old bank. it's one thing to save them, but they're saved now. the real question is, how long do they stay as a commercial bank. you got to think they're going to come under pressure. i think that pressure to give up that charter, at least the federal government's going to come under pressure to get them out of that charter that, pressure i think, bob, will come next week i think. here's why. over the next couple days, you're going to see earnings r

for the goldman alone, for the goldman price, he is making, i think, i want to say something like $500 million every year for holling these on the 10% dividend. >> here is what meredith said in her note, since march of this year we believe the tangible book values begin to rise and so, too, the correspondenting stock prices that bore out during the first quarter earnings, we believe the second quarter would be no different. think become to the whole march rally that happened when wells fargo had a decent earnings number, citi had a decent earnings number, jpm. all the earns were better than we thought it would be and we rode that to the middle of june. the question, can we do a repeat of that off the higher levels? >> that san important question i want to ask carl and becky two quick kiss. carl, number one, president barack obama and maybe governor schwarzenegger and other governors are going to be the greatest bond salesmen in history, to okay? the greatest, because of spending and deficits i and borrowing. however, that it's bad news. the good news is they play right into the hands o

>> so goldman sachs -- >> goldman has plenty of operations overseas. they are not bringing that money back to the u.s. that's why they are not paying taxes on that money. they can make so much money legally -- bill: not enough. it's never enough. that's why we got into this crash. that's why the mortgage-backed securities and everything else. it's never enough. >> from what i hear, they have been making lots of money this quarter by betting against the u.s. housing market. i talked to a trader there, very negative. bill: they drove up the oil prices since january. >> the worst thing is that we, the taxpayer, backed $22 billion in money, in debt, that goldman sachs -- bill: obama did it. >> it happened actually at the end of the bush administration with hank paulson who was the former head of goldman who was running the treasury. bill: obama could have stopped it. you see, look, i'm getting tired of president obama saying that he is for the little guy when he isn't for the little guy. cap and trade is going to hurt the little guy. goldman sachs is hurti

bill: why doesn't goldman sachs pay any federal income tax. >> goldman sak's took tarp money. they took taxpayer money. they paid it back and just reported a blow out quarter in earnings this morning. bill: why then the don't they pay taxes like you and i. >> because they are goldman sachs. bill: there has got to be a reason. >> it may be a pass through capital gains. they pay capital gains tax as opposed to corporate income taxes. bill: look, from what i understand they have outsourced a lot of their profit to overseas countries. so they dodge american taxes just like president obama says he is going to stop because they do business overseas and they write it off over there. are you surprised that goldman sachs making 2 billion pays no federal income tax? >> i'm surprised at it but i am no tax attorney here. i will tell you this though. this is the same goldman sachs that last year the same tax year that you are talking about 2008 is the one that convinced pension funds and mutual funds to invest in oil future. 140 some bucks a barrel. bill: deeply involved in oil speculation

julie, when goldman sachs makes money, our federal government makes money, and i don't think goldman should be apologizing for it. >> dennis, i'm all for goldman making money, i just don't want to be backstopping their risk taking. >> -- the risk taking? >> excuse me? >> how are you backstopping -- >> because the fact that their debt is backstopped by the american taxpayer. >> see, that's wrong. >> how is that wrong? >> the fdic -- hold on a second. >> -- paid for with bank fees. not paid for with taxpayer money. >> dennis, you and i -- >> hold on a second. let me ask this question to everyone out there watching right now. the main thing that happened here is people got some money, they paid it back, the government made money, and they made money, and made money off the interest. when did that become wrong? >> i'm all for them making money, ben -- >> but you don't like the way they're making it. >> excuse me, can i -- >> wait, wait. >> guys, we've got to go one at a time. julie first, then jack. >> even hank paulson, yesterday, when he was testifying, the former chairman of goldman s

, on goldman's payroll. you know, they make a call in to ge, who calls me up and said, you know, tell gasparino to stop. this is so absurd. alls i'm doing here, bob-s what journalists should do, and that's provide the other side of the story. this is goldman's side of the story. and i don't think ugg just totally discount it. i mean, we need liquidity. one of the reasons why the fed has given them this designation is so they can trade, they can make some money trading and that will provide liquidity for their clients. i think it's a legitimate point to make. >> charlie, i think what's interesting here is the whole world wants deposits as a way to fund loans. goldman sachs is not indicating they need that much. in a sense they're relying on cheap fed funds at this point. what happens when those cheap fed funds goes away, though? >> right. there's two ways of looking at it. you can say that as a bank with deposits you can borrow some of those deposits, it does lower your cost of borrowing by having those depos

>> susiealmost $3.5 billion-- goldman sachs' latest earngs blow the doors off estimes. so, how'd they do it? some call it the "goman mystique." >> jeff: signs of lifen the beaten down computer iustry-- intes latest results show the beginnings of a reund in demand, and the company sees improving sales onhe horizon. >> susie: about 80 mlion americans use creditnions, and while banks gotanked by the fincial crisis, the nation's credit unioncontinued to lend. coming up, how they're dng now. >> jeff: then,f your annual income tops a million llars a ar, house democrats want to send you the bill r health care refm. they're oposing new taxes on the wealthiest america to pay for heal care coverage. susie: i'm susie gharib. >> jeff:nd i'm jeff yastine. paul kangas is off tonight this is "nigly business report" for esday, july 14. "nightly biness report" is made possible by: this programas made possible by contributions to ur pbs statiofrom viewers like you. thank you. captioning sponsored by bt >> sus: good evening, everyone. one of tse "green shoots" may be sprouting in the tech

goldman kicks it off tomorrow. analyst meredith whitney raising goldman to a buy from mute tral that helped give a lift to its stock and making positive comments on cnbc about bank of america which she says looks cheap now. it thank is giving a lift to the financials a number cough components among the financials moving higher, jpmorgan as well as bank of america. also there is one other thing at play here, a technical bounce for the s & p 500 off 875, supported there, pushed through resistance at 890. that, too is giving a boost to the markets, right now. back to you. >> mary, i will pick things up from there i want to start out with the overall technology sector, seeing things higher but some chatter in the sector has griffin up shares, 4.6% to the upside. the chatter was saying essentially that amazon could be making a bid for netflix. i spoke with web bush's michael pacter and said no chance in hell a deal would get done a direct quote because amazon doesn't want to have physical points of sale, they have been

jim goldman joins us wh a prevw. certainly, j, it is interesting that we ha the goldman sachs, downgrade oibm shifts to the growth names ahe of next we. >> an interestg ll. you're talking about a real slew of top th names where we're eing the earnings estimates creep up a ltle bit. guid is getting exciting as far as the analys are concerned. the call oibm is interesting if youhink about the to go on the back halff is ed year. ibs commentary is going to be keas far as where this stock goes. if you're talking out intel and gole, you know, we've watched estimatecreep up by key analys on wall street in the past week or twoi'm wondering ifre's too much opmism. ey're expecting good news. too ch optimism and some of the estimates are gettinead of ourselv. again, it'coming down to mmentary to see where the companies see threst othe year coming. intel is looking good, so google. >> goldm sachs is playing a dangerous game of stock market here with ibm. m on may 13 told us they were going to make between $1and $11 a share 010.

jim goldman joins us with a preview. certainly, jim, it is interesting that we have the goldman sachs, downgrade of ibm shifts to the growth names ahead of next week. >> an interesting call. you're talking about a real slew of top tech names where we're seeing the earnings estimates creep up a little bit. guidance is getting exciting as far as the analysts are concerned. the call on ibm is interesting if you think about the enterprise is going or expected to go on the back half of this year. ibm's commentary is going to be key as far as where this stock goes. if you're talking about intel and google, you know, we've watched estimates creep up by key analysts on wall street in the past week or two, i'm wondering if there's too much optimi optimism. they're expecting good news. too much optimism and some of the estimates are getting ahead of ourselves. again, it's coming down to commentary to see where the companies see the rest of the year coming. intel is looking good, so is google. >> goldman sachs is playing a dangerou

bill: why doesn't goldman sachs pay any federal income tax. >> goldman sak's took tarp money. they took taxpayer money. they paid it back and just reported a blow out quarter in earnings this morning. bill: why then the don't they pay taxes like you and i. >> because they are goldman sachs. bill: there has got to be a reason. >> it may be a pass through capital gains. they pay capital gains tax as opposed to corporate income taxes. bill: look, from what i understand they have outsourced a lot of their profit to overseas countries. so they dodge american taxes just like president obama says he is going to stop because they do business overseas and they write it off over there. are you surprised that goldman sachs making 2 billion pays no federal income tax? >> i'm surprised at it but i am no tax attorney here. i will tell you this though. this is the same goldman sachs that last year the same tax year that you are talking about 2008 is the one that convinced pension funds and mutual funds to invest in oil future. 140 some bucks a barrel. bill: deeply involved in oil speculation

. >>> i hear a lot of ankle biting about the goldman performance. i am not with the naysayers on that. i say bravo. they made $3.5 billion of profits on a 14 barry bonds increase in revenues, unbelievable numbers. you know what else, they paid down 10 billion dollars of their t.a.r.p. money and paid taxpayers $426 million in dividends. i'd like to see goldman get under their $30 billion of government taxpayer guaranteed debt plus more transparencyist in their toxic asset reporting. i continue to argue, the big banks are the best stock market investment right now. that remains my mantra. near zero borrowing rates and a steep treasury yield curve will allow the banks to earn their way out of their problems. if to the intel profits carry through to the other big techie company, that tells me something good is going on in the economy. hopefully, the senate will bury two very anti-growth bills that would clobber businesses in the economy, namely, the cap and trade tax energy takeover, which will jack up costs for everybody and let the central planners ru

goldman sachs is in business to make money. they see ways that they can make more, including taxpayer dollars, of course they're going to do it. i mean, we let them exploit us. if they did. and so -- but the good thing is, hey, they're paying the money back, trying to get out of it, because they realize, holy cow, look at the strings attached and the government is trying to get us to do things we don't want to do. i'm glad they're getting out of it. >> bernard, wouldn't you like to be a shareholder in a company that maximizes profit to the you will mat extent it can? >> absolutely. and the american people don't really understand what goldman is, what it does, and what it represents. and i think that the down side risk going forward is much greater for a company like citigroup than it is for goldman, because much of main street doesn't really understand what goldman does. but they absolutely do understand what citi does, because tens of millions of americans have retail banking relationships with them, credit cards with them, an

>> in our vview, goldman is goldman and it's not a oxy for ththe financial sector. you take retail bks in the u.s., for example,e expect themo come out and makake bstantialrite-offs due to the fact that we se unemploymement ssing 10% befo ye-end. bsequently, goldman is goldn.n. they h have mademomoney, as the former speakersaid, on the tradining book. some of their competitors may have made a few bucks s on thei trading book,, b but it's goldmn story. >> s what happenened we get t better than expted numberers out,christiaian,rom bank of americor for citi this week becausepresumamably, they're muh more reflective othe wiwider onomy. >> y yes, exacy. then w we have a huge sururpriso the up -- if w we have a surpri to the upside then we e will hae a reflectionn the broer u.s. economy and then that cod be an importatant sign for equitie to rally qte signicantly up from current lels becausethat would shshow tha u.s. consumers d the u.s. banks o or such is not much under pressu as we expepect and the marke expects an genererallyook at the pricic earngs that bank of ameca

goldman sachs. by now, the queen of doom's day forecasting meredith whitney put out a positive call and that put the market up. but let's get the real deal. the real deal is this, all right? the real deal is, brace yourself for the p pious backlash. how dare goldman sachs declare a $2 billion profit when it reports tomoow morning -- nine months o, this econo s in crisis. how da goldman pay bonuses to the very people who earned that $2 billioin the black when the1 federal government pumped10 billion into the firm to put it under the t.a.r.p. we fort that the feds forced some strong bas to take that cash, which, by the w goldman has paid back, okay? can't we just be happy for them? what is -- i mean, what's good for goldman is good for america. you want a piece of goldman's success? buy their stock. it's up 70% since january. and it rose another 5% or so today. last time i checked. those goldman bonuses, moreover, they're good for apartment sales in new york. for new car sales, retail sales. they're

there's a few investment banks competing after bear stearns and goldman sachs crumbled. it was among the strong base even when lent tax payer money. >> in florida, authorities revealed chilling new details in the murder of pensacola couple. authorities said eight people were involved in what amounded on a commandostyle assault on the house where the coup lived with many of their 16 children. police began to talk about motive or motives for the murders. here's steve only sun sammi. >> reporter: late today police released a second video of two men entering the home. they were dressed in black like ninjas and entered through an unlocked door on the side of the home. another video released lack week show another set of intruders. it's clear the police are looking for a crew. >> we have a motive of robbery. because of the repedestrianity of the crime. entry into the house, exit into the house, indicates again something that was well planned, well thought out and well executed. >> reporter: police say they're looking for the rest of this team. some of them seen in these photos

goldman sachs is an outlier. and a t of the otr nancial nameare rejects from the chdren's petting zoo. but stacy makes a greapoint. option traders never take the idea of armageddon off t table completely. as soon asou do, it happens is you get your heahandedo you.d protective put buying and lot ofhe fincials has been andotal. earnings don't happen in a vacuum. earlr, when things were much better, but the overal terror was bad. we had aot of preannouncements whe people were saying, hey, our earnings for theirst quarter will be okay. if we were set up for big disappointments, we wod have seen me active management of expectations. really haven't seen that. so the put buyinis anecdotal. itpeople wanting to protect their positions. >> i wou mention that goldman sachs has started off on tuesda i thi goldman has a eat quarter and gives a great ouook. i don't thk it will be the rt of thing that propels the entire secto i think like scott said, gdman is considered an olier. the one thinthat can turn the ctor to the down s

yesterday's "new york times" reports that goldman sacks, the firm where you spent your life posted the largest quarterly profit and the 140-year history. 3.4 billion. each employee reportedly could earn $770,000 this year. across our nation, unemployment is rosing and foreclosures are surging and lending is constrained. i wish i had an hour to talk to you about that. looks like rich people are profiting handsomely. i can tell you that the profits resolved about one quarter of the housing situation in ohio that we face today. since appointment by president bush as secretary of treasury in 2006 until today, have you or your family have ties or investments tied to goldman sacks in any way whatsoever? >> no. >> what about bank of america? >> not that i know of. >> president bush was not the first president you served. who was the first president? >> richard nixon. >> who did you report to in the white house in those days? >> first to lou and then john -- >> let me ask you about the deals you structured. in terms of the warrants that you structured, the term sheet provides that once goldman

paul krugman writes goldman is very good at what it does. but rescuing the financial system without reforming it washington has made another crisis more likely. joining us live is matt taibbi. matt writes about how goldman sachs has manipulated the u.s. economy since the great depression. good to see you, matt. how is that possible? >> well, in the case of these profits that they made they're announcing this week, that's almost purely the result of a massive state subsidy. everybody knows that goldman has already paid back the $10 billion in t.a.r.p. money, but over and above that goldman was massively subsidized by the government in the last year. it received about $13 billion through the aig bailout and it also had access to about $28 billion in federally backed loans. so basically the banks had access to mountains of cheap money, virtually free money, and they used that to go out and lend it out at market rates. all of us have reduced income from interest and the banks are making an enormous amount of money. >> i talk about the great amer

goldman sachs up 5% in the free market. analyst meredith whitney -- the company is expected to report profits of $2 billion. also philips electronics up 5%. lastly, cit, the blender to the small and medium sized business down 18%. let's go to check on the energy markets. we go to sharon epperson. >> thanks. we have oil prices holding here around $60 a barrel. keep in mind, remember last week, we saw that 10% slide in oil futures. the biggest percentage drop since january. and part of that was long liquidation. a report released friday showed it fell by 62% last week. another militant attack. keep in mind, even nigeria's state-run oil company has said production there is above the quota. the dollar, well, it's holding pretty firm right here. slightly weaker. that could offer some support to oil prices. metal prices within a very tight range. we're likely to continue to see this tight range and maybe some selling here unless we get some really positive economic numbers since we do have ppi coming out tomorrow, jobless claims

. >> you never feel like you know how goldman makes money because they change every quarter. the next couple of years it will be debt market focus. >> "the call" one of the reasons, if i understood correctly, not about the bank so much as the muni market, right? isn't that what she said? >> a lot of activity. the local municipalities and the states have to raise money now. >> issuing debt. >> they have got to do it. >> cut spending? no, why would we do that? sorry, a little commentary there. >> [ inaudible ] a lot of debt underwriting, a big story. overall, her call is not great about the economy at all. >> no. >> unemployment. >> problems of the consumer going to continue. she said once she figured out the model for goldman, the model, once she got her head around it they will be making money. interesting thing, tomorrow, the street is looking for a consensus of 3.48 for earn goldman, a much higher number,

it was goldman sachs and jpmorgan. and we've gotten good numbers from cat and all the rest of them, but as you get to the next level of earnings, i think you will have concerns out there. that's why you are seeing the kind of activity that you are seeing in the options pits, where you are seeing the puts. they are trying to get closer to the marketplace and buying the puts and getting the protection at the cheap volatility levels. we start to get to a pullback and you start to accelerate to the downside, steve, you will have guys selling, selling, selling. and that's the kind of market we could face over the next couple of weeks, so let's be careful of the consumers buying. >> pete is right, it's not only about the consumer. what would take us higher is the corporate balance sheet. they are strong. go back to microsoft, i told you last night, you know my feelings on microsoft. you have to reduce your position. >> how do you define strong? >> the goal was to reduce the position in microsoft. when you look at microsoft t

by any measure, is a staggering profit -- wall street's @ goldman sachs -- goldman sachs has smashed assonance, delivering a $3.5 billion profit for its second quarter. under that is a more large number, $6.6 billion has been set aside for compensation and benefits. we have this report. >> less than one year since wall street seemed on the verge of meltdown and billions of dollars in taxpayer money was poured into financial institutions. now, top player goldman sachs says its income from trading has nearly doubled from one year ago. in this building, yet some of wall street's largest employees, fastest computers, and most politically connected bankers. that has made goldman sachs a liter on wall street and the bank approved its reputation again by shattering expectations for its profits. last month, goldman sachs was among the first to repay $10 billion in loans from the u.s. treasury. the company's share prices have risen by nearly 80% this year. doing well in difficult times. >> we have operated in extremely in challenging environments. this environment is not conducive to slate --

goldman sachs is up 10%. joe? >> goldman sachs up and made 6.8 in the component revenues.hat goldman sachs can do. they can do what others can't. they can take risk again. that was evident in citigroup's earnings today. taking risk is important for earnings going forward. >> j&j was up 4% on the week. pete? >> their revenues were phenomenal. it's the diversification they've got. even though they lost a billion dollars in sales of their top two drugs, they still managed to put up a great number. j&j is the diversification that makes them such a premiere player. >> pop is up, jared? >> you know, great stock, doing fantastic. i love this sector. i like copper. i like gold. it plays into the whole inflation thing. also plays into the energy, as well. the stock up here i'd be really careful though. i'd probably take slow profits but i like it long term. >> nokia was down 6% on the week, karen. >> yeah, nokia had an earnings release that wasn't great yesterday. the quarter itself wasn't so bad. it was the guidance going forward. it was a margin compression. it was disappointing.

morgan chase and goldman sachs. we'll talk about what it means in terms of the sector and the economy with floyd norris of "the new york times" and dennis berman of the wall street journal. >> this is a phenomenally good time to be running a bank. phenomenally good. competition is down. spreads are up. the people who want to borrow don't have much choice but to accept what you're offering. they've been able to raise their fees on credit cards and other places. the new business is likely to be extremely profitable. >> it's the rhetorical divide between wall street and main street. it's still having an effect on washington's need to bring in wall street to solve some of its own problems. hedge funds don't want to get involved, don't want to touch it. >> charlie: then a look to president obama's speech substitute naacp last night. we talked to the president of the naacp, benjamin jealous. >> he talked about passion about the school system across the country, he talked compassionately about the justice system and health

like goldman sachs. you can only compare them insomuch as both firms trade but goldman is clearly head and shoulders above everyone else. but jefferies. go back to that stock. traded up to $22. they raised estimates. we said get out. stock trade is down to $17.50. we told you it would trade down to the high teens. now back to 23. stock's going to have trouble here. no reason to chase it. this is the real story, jef, to watch. you don't want to own it here. gets down to $18.50, $19, jump in. >> you look at bank of america stock, this has been going up, up, up while the rest of the big names are starting to pull back. you see goldman sachs, morgan stanley. interesting thing about bank of america they'll write off about $40 billion. right now they presently -- normally they trade around 11 times earnings. they're trading about five times next year's earnings if this analyst is right. by the way, this analyst, just like meredith whitney, a year ago went cautionary on the financials. she said they went to an