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 he has been replaced by gary ginsler, he is former partner at goldman sachs.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

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 he has been replaced by gary ginsler, he is former partner at goldman sachs.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

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

big to fail," give me goldman sachs. here's 10 of them, 12 of them, whatever, that have this advantage. does this completely distort the workings of the capital markets? now, that's a separate issue than what's good for goldman is bad for america. i want to revisit that. but to robert reich's point and charlie gasparino's point, what about this? >> well, i think that's not really true. >> not true. >> not true? what? are you kidding me? >> they can't fail. >> but i don't think that's skewing the capital markets -- >> hang on, charlie. cit, this is a turn of events, shelia bair knocked down timothy geithner, that's what the reports are, and wouldn't bail out cit. >> that's what we reported. >> does that mean the government is looking again at moral hazard, maybe too big to fail is not too big to fail? >> well, i think you have to let the capital markets run their course. that's the whole thing. the government can't truly socialize banking. it's too large. >> larry, goldman sachs should not be subsidized -- we should not be

>> 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

>> 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

goldman sachs is a goliath investment company that pays very little tax. last year in the teeth of the recession goldman made more than $2 billion in profit and a according to the associated press paid lloyd blank mine about 43 million bucks. let me repeat that old lloyd made $53 million in 2008. how did you do? but goldman sachs paid zero, zero in federal income tax. nothing. let me repeat. goldman made 2 billion, paid nothing in federal tax. a quick aside, president obama and the democrats want to raise taxes on high earning americans like me to pay for health care but goldman sachs pays nothing. but to cap and trade. goldman owns a 10% stake in the chicago climate exchange. where the cap and trade deals will be made. on each deal, a commission will be paid. goldman sachs stands to vacuum up money. dimension the company pays very little tax? also, goldman employees gave president obama's campaign close to $1 million. dimension that? ready for more? guess who is also invested heavily in cap and trade? hello al gore. he started a company named generation in

goldman sachs easily beating profit expectations, on strength in trading and underwriting business. david faber on a call with goldman's cfo right now will bring if us all the headlines. >> great to have you back, mark. mark and i have been betwikt and between but together again.. goldman sachs surpassing the record, pretty amazing.g. on the economic front, investors are looking at stronger than expected retail sales, okay. so that's solid but then the biggest jump in wholesale prices since last 2007, maybe that will go away but we'll go inside those numbers. >> picture right now is not good bad, but not too bad either. we needed 116 to get to fair value so it's even steven. >> goldman sachs is up 5.5% yesterday in anticipation of these numbers being that strong. but what about on the economic side? we've got our market roerpts in place. bob pisani, welcome back. >> good to be back. goldman sachs, down about 1% on the news, but great nuns here t beat on the top line. bottom line terrific. you see the top line numbers, $13.76 billion, well ahead of the estimates of roughly $11 billion

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 --

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 a goliath investment company that pays very little tax. last year in the teeth of the recession goldman made more than $2 billion in profit and a according to the associated press paid lloyd blank mine about 43 million bucks. let me repeat that old lloyd made $53 million in 2008. how did you do? but goldman sachs paid zero, zero in federal income tax. nothing. let me repeat. goldman made 2 billion, paid nothing in federal tax. a quick aside, president obama and the democrats want to raise taxes on high earning americans like me to pay for health care but goldman sachs pays nothing. but to cap and trade. goldman owns a 10% stake in the chicago climate exchange. where the cap and trade deals will be made. on each deal, a commission will be paid. goldman sachs stands to vacuum up money. dimension the company pays very little tax? also, goldman employees gave president obama's campaign close to $1 million. dimension that? ready for more? guess who is also invested heavily in cap and trade? hello al gore. he started a company named generation in

that is how much federal income tax goldman sachs will pay this year, most likely. and the third number is this -- $19.4 billion. that's how much money goldman paid in federal income tax from 2001 to 2007 when it was the eighth largest corporate taxpayer in the country. 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

meredith whitney upgrading goldman sachs. but read carefully between the lines. she's talking about them being a key trader on the government debt market along with trading those derivatives. that's a lot different than in the past when goldman was a big play on the global growth market. it's a different kind of call, and we're going to talk about that in the next hour. also the nasdaq sitting near the highs for the day. s&p 500 having one of the nicest percentage moves it's had in the last three weeks here. let's take a look at our team that's covering the market. all my friends in place. the nyse, the nasdaq, and the nymex. mary thompson is down here today at the nyse. mary? >> well, bob, the dow jones industrial average, the s&p, the nasdaq, the markets in general on track for their best session since june 25th. light volume, though, 678 million shares changing hands here. so there may be not a lot of conviction today. however, there ia lot of enthusiasm, especially for the financials, as bob mentioned. take a look at these stocks. all of them trading higher to

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.

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

at the same time, can we draw conclusions about this upgrade of goldman sachs that followed the upgrade we saw from citi last week? goldman is not necessarily the barometer for the financials, it's the trading revenues. she says because of the tsunami of debt issuance that is coming to market that goldman will be able to take advantage of it in the coming months and years ahead as we just dive feverishly -- >> sustainability of earnings and these guys can repeat these numbers and we're not sure how they're going to do it but they're going to reinvent themselves, they always do. that's what's different here. a lot of people think first and second quarter trading revenues were one off because of enormous probably once in a lifetime spreads in fixed income et cetera. i think that's somewhat true, but i do think they are so far ahead in terms of no other competition and the guys are probably best at taking risks. >> we've been trying to -- last week around 32, take profits, take your short back, now look at it today. the risk reward trade sets up easily ahead of earnings, 34.75, great day b

you look at goldman sachs, and my question is, is this sort of a stand-alone company? i he mean, over and over again, its reputation kind of precedes it, and people think goldman, you know, this is just really the one -- the one standout in this space. but are there others that might be an opportunity for investors right now? >> absolutely agree with your sentiment that they are the -- the blue chip trading opportunity within the financial services community. i think there are other opportunities, whether they be jpmorgan, bank of america, even citi, that could prosper if faced a similar environment, where you see a bounce off the lows of relief rally, so to say. they should make money in this environment. however, there's one point i picked up in the conference call that mary talked about that i think is something people should focus on is the $700 million charge that goldman took for their commercial real estate.e. that is something that many fear is the next shoe to drop. that is something that even as the consumer is crimped, certainly people with cre exposure, shou

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

goldman sachs reports second quarter results before the opening. the financial powerhouse expected to post earnings of $3.54 a share. revenue of $10.7 billion. meredith whitney upgraded the shares of goldman yesterday early on before joining us on squawk and then she exchanged why. >> it's a bearish call, but a bullish call on the stock. >> on the stock. >> because, you know, just as you were talking about in california, you've got most of the states under funded. you're going to see a tsunami of debt issuance and where you think goldman would be a pure play equity trade, it's the number one underwriter of build america bonds, a top underwriter in munis, playing heavily in the mortgage backed market. i think in the first quarter they played heavily in the agency market. >> we keep pointing out that goldman is down 8% during the last year, as if that's a negative. but i think it's the only financial that's only down 8%. and you can see it from that because it's up 78% since january. and there was a chance to buy that stock i think in the '50s and it'

goldman sachs bought in 4 $5 billion.ur taxpayers were forced to invest $10 billion in goldman sachs. warren buffett received 43.5 million options with 1.8 billion for his $5 billion gamble. the taxpayers got 9.5 million options with 500 million, one- fifth as much for their investment, he is being paid 10% interest, taxpayers get 5% for the first five years, 9% for the second. he has a 10% premium, we have no premium rights. he got $5 billion for his investment, taxpayers got 4.9 billion or their $10 billion investment. al is this fair and why did warren buffett get a better deal than you got for the american taxpayer. >> there is a clear reason why. the capital to go into all the banks -- this was in the middle of a crisis. attractive capital was not available. the reason that we had to do this is because the capital was not available. we were providing the capital, that was structured so the taxpayer would get the money back -- >> whenever gold and sets the terms. >> the banks put out the capital, and this is preferred

becky quick, how much did uncle sam help goldman sachs' earnings when all the aig money was paid out and goldman was able to get back its credit default swap commitment? did we help goldman sachss with these fabulous earnings and bonuses? you know me, love prosperity, i just want to know is is there a government hook there? >> there always is. if you want to look beyond that on all the government programs helped out there, you have everything from help and beyond. not just t.a.r.p. helping these guys out. >> the aig in particular, becky? >> the pay back on the other side of the -- >> the blogosphere and opinion writers, we really helped goldman out, did we not? we, being the american taxpayer, you and carl. i don't pay any -- taxes. >> you have a better accountant. are you saying, larry, off problem with this? you don't like that, that action right there? you are complaining about that, right? >> no i love -- >> this is part of the intent, am i right? >> i love prosperity, i just want to note that for all of the brilliance of the goldman sachs traders, and i concede that they are bril

la month, goldman sachs was among the rst to repay 0 billion inoans from the u. treasury. the compa's share prices have risen by nearly 80% this year. doing well in dficult times. >> we have operated in extremely inhallenging enviroents. this environment is t conducive to ste -- to straightforwd solutions. our culture alws us to rct in this difficul environment. others argue there is a loser here -- thtaxpayers. th goldman sachs and others payingoo little for money the got from the governmt's funds and the bank has set aside over $6.6 billion of its profits st for employee bonuses. >> goldman sachs was abl to say we paid the money back and as we say, we areo longer beholden to the taxpayer. even though that just ght be partf the truth. >> willing results aside,he coming month wi still be uncertn. >> so s there is fragility to it. they acknowledge the ouook and the economy is very fragile. it's hard to takehis quarter and extrapolate . >>r too, -- or to use this success as an indicat for other big.s. banks. >> nato-led forces in afghastan hve begun an investigatn into a hel

just like goldman sachs here. up next find out what the latest earnings results are saying about the health of corporate america. >> we've got a lot of companies to take a look at this week. and thn we're checking on oil. the energy trade in today's "fast money" final call. is now the time to place more bets on oil services as the latest contract has oil above $65 a barrel? >> and after the bell maria one on one with economist nouriel roubini. his comments about the worst part of the recession passing by had moved the markets last week, but where are we exactly in the current downturn? we'll hear from him 4:00 p.m. eastern time. >> after the market moved he said the comments were taken out of context. we go to the source. hear from nouriel roubini at 4:00. there's the action and where the most heavily traded stocks are on wall street today. back in a moment. last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one liv

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

goldman sachs continued there. s & p, we are at the level, where if you are a money manager, you get uncomfortable. because you've got to beat the benchmark and it's time to start allocating. >> we threw up a chart before of ibm. the earnings came in better than expected. ibm raised its forecast to 970. even bullish analysts said it would raise its forecast for the year by just about a time. so really, playing the cover off the ball, not the doors off the hinges. whatever metaphor you want to use, ibm did it. what's going to win out in the end? >> i think for these days, it's a similar theme. they crushed on the bottom lineup they were light on the top line. and the margins were good because they've showed how to rein in spending. it's about the outlook they're giving for the second half of the year. in ibm's case, the stock's performance here is lackluster. it tells you that these names are tired despite the fact that i agree what joe is seeing about overall allocations in this market. guys are very scared. i thin

the jpmorgan trade lines up goldman sachs. look at what goldman sachs did again today. it again just shows how beautiful goldman sachs is in this beauty pageant. it's a megan fox. >> well said. >> let's take a look at jpmorgan and what he had to say in the context of citigroup. all of these banks are going to report in the next week or so. >> well, i think that -- sure. first of all, he said credit cards aren't going to make any money next year in 2010. that's very important. >> hold on, tim. we want to go to tyler mathieson who is at the breaking news desk. >> thank you very much. as you probably know, the long-time bear analyst was given credit today for helping the market on what some interpreted as an improved economic forecast from dr. roubini. but he has just in the past few minutes issued a statement saying that, no, wait a minute, not so fast, folks. it's been widely reported today, he says, that i've stated the recession will be over "this year" and that i have improved my economic outlook despite those reports my views expressed today are no different than the

everyone thought goldman sachs, the sun is rising and setting by goldman sachs. the timing is a little bit critical here, don't you think? so as goldman sachs goes, so goes the economy. i think that's what we're looking at. >> and you're also operating in an environment where everyone is very, very cautious about showing optimism. and what does that mean? that tells you the hand of what the market has right now. the hands right now that they're playing with is very, very underinvested. that is important as you move forward. again, at some point you got to chase the benchmark and move in and try and show performance. >> right. let's move on to the next trade. we want to talk about a sector that was -- that is technology. they had a big earnings report from apple, yahoo, amazon and ebay. traders buying. nasdaq just came off the best year in a decade. and certainly that call on cisco was very interesting. >> what's interesting about it, first of all, they're pointing to a recovery in the u.s. business and not in the overseas part of the business. that is making up f

does that mean we give something back by goldman sachs? >> not unless we raise taxes on the folks earning it. just think about it, the political dynamite. we have a financial and economic crisis in this country, created in large part by the excess of, great, and probably criminality of those in positions of influence in the financial world, particularly on wall street. if and the country is suffering. an informant going to double digits. at all -- akron, toledo, people are in pain and you find out that these folks, these architects who were bailed out of the people in akron and toledo arnelle living large, paying for the hamptons -- it made for a populist revolt for 2010 if the republicans are smart enough. >> goldman sachs paid back the $10 billion, i understand. aig is one of the gets me. they were selling stuff they did have, basically. >> normally you go to jail for that, right? >> i think so. >> on wall street you get a bailout. >> didn't vernon made of cells stuff he did have? >> hank paulson was on the hill this week tried to explai

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

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

and falling behind on fixed income business that goldman sachs has hit out of the park. totally different reaction. had a narrow quarter second loss but building up cash reserves to cover bad loans for key corp. set aside $50 million for losses and raised $1 billion in common equity. i'll erase the circle so you can actually see what they did on the day, up 6.6% also in that grurngs suntrust, they, too, adding to the stress trust needs, adding to the caddie so they can cover future problems. other big focus groups, drug makers, ely, pfizer, raised their profit guidance, eli lilly's profit up 21%. investors want to know what will happen in the revenue in years to come. obviously, what this administration chooses to do in terms of its health care plan will play into that. drug giant, pfizer, down 19%, sales hurt by higher costs for a purchase but also hurt by the dollar, by the revenue line, stock was up a percent. this was an interesting point and jim cramer talking about it. a lot of companies saying, maybe it's the strong dollar that hit our revenue line. perhaps if the

one of those companies is goldman sachs. it reports big profits today. big bonuses could be next. not just at goldman. so on wall street, is it back to business as usual? with the nation's unemployment rate moving closer to 10%, a housing market still plagued by foreclosures, and households struggling to make ends meet, it might be hard for most americans to believe that it's back to business as usual on wall street. but at companies like goldman sachs and aig, both of which borrowed bailout money from the government, billion-dollar profits are back, and big bonuses could be next. in fact, goldman sachs is on track to pay out as much as $20 billion in bonuses for 2009. that's roughly $700,000 per employee, more than 14 times the average american household mc. experts say the situation is similar at other financial giants. >> there are top executives that are making more before lunch than the average worker makes in a year. however, many of these top executives aren't the bad guys that caused the problems through recklessness. these banks are retaining the talent that we need and th

goldman sachs has been best of breed, been bled out. goldman sachs, j.p. morgan.heck with best of breed until the market has proved itself. >> a lot of people may feel these names are toppy, how do you approach it as an investor? >> if you take a longer look back to 2000, you'll see something very different. what we're focused on is not only best of breed but tech is clearly that. throw health care in that as well. reduce free cash flow that can support dividends and capital spending and all of those things can be found in sectors like technology. we own apple and ibm, those are companies we like. >> best of the breed idea, your idea suggests there's some inefficiency in the market. if i own the lesser company, that is a stock price is overvalued, i won't be competented for the risk i'm taking. is that what you're saying? where does that come from? >> let's make it in easier terms. what you've seen is portfolio managers have had a risk aversion trade on. they don't want to stand up and don't want to place any bets. what they've done is seen the market perform a li

the star of the day here is goldman sachs. earnings report.ll give you all the details in a moment. it's simple right now. goldman sachs closing at the highest levels since september. record fixed income was the key there. record top line overall for them. there's goldman sachs. had to get above 148.36 and they did. highest since.september. jpmorg jpmorgan, bank of america citigroup all reporting later this week. on the earnings front, we see companies beating in the last few days but big cost cutting helping them out. sales and volumes have been anemic. csx is my poster child. most of the big names trading close to the top end of the  trading range. don't kid yours. csx came out and said their volumes were down 21% in the second quarter. the stock is up because the company came out and said that will improve in the third quarter. it will still be down volumes for them still will be down in the double digit area here. mixed messages number two, the retail sales numbers, up. x autos. comps have been very tough because of the rebate checks last

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

goldman sachs doing really well. then you've got a company like cit, teetering, wanting access to some of the federal programs, certainly the fdic programs, the middle market lender unable to access those programs. is there something that doesn't look right here? should cit be saved? the stock was halted going into the close. you know, cit will tell you this is the one lender to the middle market, small and miz cap business. that's the businesses that create jobs. >> cit is a great company but this is not about cit. this is about the tens of thousands of small business borrowers that can't be banked anywhere sxels it's about liquidity to provide credit for those borrowers. so i think there's a systemic issue here. we've expressed that opinion to the administration that look at the systemic risk to those tens of thousands of borrowers. and i think some liquidity is needed here and i think that the government ought to provide it. >> maria, i differ. maria, let's not forget the 8,000 community banks on main street, usa

a report is coming out showing goldman sachs has made huge efforts. that goldman execs sold out $7 million worth of stock for their own profit, but most of the selloff came as the company was getting $10 billion in taxpayer bailout money. today's report is expected to show the investment group posted strong earnings for the second quarter of the year, 2 b. hillary clinton taking a shot at her boss. she says the obama process for vetting is very difficult. they have no name every foreigner that they know. clinton's comments came when asked why there's still director positions unfilled. this is home for bernie madoff. he was moved from new york to this federal prison in atlanta. this isn't his final destination. he's expected to serve his 150-year sentence in butner, north carolina. that prison has several famous residents. president obama doesn't have a lot of luck with his teleprompter. listen to what happens during his speech on urban policy. >> for our economy -- oh, goodness. sorry about that, guys. gretchen: the teleprompter fell over in the middle

yes goldman sachs did go up another 2% or 3%. yes intel did improve and, yes, you started to see more and more of that take place. but the run going into the earnings was so extreme you have to take what the market gives you. the market gave you great runs all week. you got to take some profits.s. wait for the next opportunity. this market, we could be at 900 in the next four days or we could be at 960. the market's giving you a trading opportunity. >> here's the problem. i got to respond. here's the problem with taking profits in this environment. it is the new normal and there is a tremendous amount of capital sitting on the sidelines. asset allocation.n. doing exactly what you're suggesting. wait for the pullback. >> this is not your last chance. there is thinking out there that this is not a new bull market because for a bull market to happen historically you need a change in leadership. who have been our leaders up to now? technology as well as financials the same old leadership group. >> energy, though. >> yeah. >> listen,

>> yes, i think in the case of goldman sachs, it probably wasn't. in all of these situations there is a tendency to go over the top, overreacts, the stock market does the same thing. but for the majority, the bailouts were necessary. we would be at a far worse a jewish and today had been not occurred. i think we should be thankful for them because the banking industry has a lot to benefit from them. >> we have to leave it there. thank you very much for being with us. this is "world news today." coming up, as western military casualties escalate in afghanistan, which are live at the village in southern england where the bodies of eight british soldiers to be flown home. from a flood to a trickle, is spain's economy making it less attractive for illegal migrants? this growing concern about the latest deaths from swine flu in britain. tests are taken to find a web of those who died had been suffering from any other conditions. a doctor and a six-year-old girl bring the number in the uk who died after becoming affected to 17. >> herd that has made the h

yes, goldman sachs is expected to do well. we have that upgrade earlier this week that saying the revenues could exceed 2007. but at the same time, they're best in class. that have ear a separate kind of breed. they used their capital differently than other financials. they set the tone from the rest of the group. another. >> jp morgan is more of a bellwether. >> okay. >> hello, mr. diamond. >> aside from that, the training revenue, i think it's a one off quarter. look amount jpmorgan. some of the aspects. a huge recurring stream and bank of america and stuff like that. but to me, jp morgan is the bellwether. >> as a matter of fact, the training revenues are too good, all of the analysts come out and say there's no way to replicate. and they said it many times. listen, we like goldman but we don't like it at the levels it currently trades at. 134, 135 gets interesting. we saw this this week. it can easily get back down there. then you take a look. in the 140s. it's dead money. >> goldman has not seen all of the drain the other