which goldman sachs could theoretically do, i would imagine, with all the cash -- >> i think it was just a knee-jerk reaction. i don't think anyone going forward is going to sell goldman off the fact they're going to be paid higher percentages in stock for their bonuses. sxwli think the trade sets up nicely. wednesday 188's the high. today could not get above 183. so right then and there you have two reference points if you want to step out of it, if you want to get short goldman sachs. but to me it all boils down to october 14th. october 14th they are going to report earnings, and will you see thick? will you see that component? the revenue, will it be there again? remember, last quarter the street was looking for about 3.65 in earnings. it came in north of five bucks. so you have to keep that in mind. if you are going to play goldman sachs from the short side, it's not something that i'd want to do. maybe the best trade in goldman is to do nothing right now and await those earnings. >> what do you think the best trade in goldman is right now? >> i have no position. that's what i think

goldman sachs is a great example. we all know how great goldman is. the fact of the matter is it's not far away from the all-time highs it made at the top of the market in 2007. i think, you know, collars are strategies that kind of help you sleep at night. we talk about this as just risk management trades. implied volatilities are low. you know, put these collars on around events where you think there's an opportunity for the stock to fall. >> the critical thing, if you see a stock that is running. goldman sachs had a great run. you might have said that and you would have missed out on some upside. one of the things you'll take a look at, if the stock starts to rally and tread water. >> one quick point is you have to trade these tactically. i don't suggest putting them on and leaving them on. >> you guys both mentioned goldman sachs. brian, i know this is one you're thinking based on the activity you're seeing, there could be an inflection point in this stock, a stock that hit a 52-week high today. >> certainly we saw a little nibbling going on in oc

i think we got a little bit ahead of ourselves. >> let's move on to goldman sachs, greg. reversal today, below 180. what do you see for that stock? >> well, melissa, goldman started the rally and really led the market. it was trading 53 in november. it never looked back, never made a new low when the market did back in march. it really has led the market. it went from 53 up to 185. the moving average line is down around 165. think, again, the broad market has to correct because i think goldman is acting in unison with the broad market. if the broad market continues to correct over the next week, couple of weeks, goldman will come down to 165 at minimum. so for me i can't recommend buying goldman up in this area since i'm already short the broad market. i'm looking for goldman to pull back. >> greg, it's grasso. i know that in october it's usually doom and gloom. my question is if we go out to november and december where do you see this market trading at? >> i heard you say at the beginning of the program, you could still look for 1,200 -- >> i can look for 1,121 fibonacci

. >> we were outside the offices of goldman sachs. it's one of the most powerful firms in the world. its executives have served as treasury secretaries for republican and democratic presidents. a perfect example to michael moore of what's wrong with american capitalism. >> a deal was cut with henry paulson, the former ceo of goldman sachs. he left goldman to go and run the treasury department. >> it is criminal in your judgment? >> oh, yeah. i'm not -- i'm not doing this for a symbolic thing. i believe it is a crime scene. i believe that millions of americans have had their pensions robbed from them. their jobs stolen from them. the decisions that get made. i mean, look at the dow jones now doing so great when the unemployment rate goes up. they celebrate. >> and he's a populist in the grand tradition. he's a provocateur. a bomb thrower. >> i mean, hitler put everybody back to work. i read stories of slave masters who were very generous to their slaves. child labor. i know it sounds weird now to say the things like that, but child lab

maybe they're not goldman sachs. but put your cfo hat on and go back to morgan stanley's second quarter earnings. people are calling them out for losing money in the second quarter where goldman made a lot of money. these guys, without the accounting related to their debt buyback costs, would have made money no? and are we losing sight of the fact these guys are getting taken down really more on an accounting glitch? yes, they were not as much as goldman but you cannot say this isn't one of the best trading shops on the street. and just because we've got a guy coming in there who's got a brokerage background that doesn't have to change. >> you do have mack. he does know the trading side. but i disagree with you on your characterization of q2. i think what you saw in q2 is their corporate bond area trade extremely well. governments was a disappointment. mortgage-backed agency was a disappointment. they cut too far in mortgage-backeds, they didn't give enough balance sheet and customer financing in governments. their ma

in fact, goldman sachs was noticeably absence. it was citi and barcap that had lead roles in a lot of the deals announced today. >> let's talk about one of the stocks that made an acquisition, abbott labs. most of their major drugs come off patents. in comparison, pfizer comes off in the next year and a half. abbott, they make a greet deal for them. the street loves it. they buy a company and the stock actually goes higher. my problem is it's been resistant a number of times. came off today. big volume today. but to me abbott with a nice dividends is still a stock you want to be involved in. >> i added to my position today. i love this deal. it will add 3 billion in revenue annually. it takes pressure off humera sales. they're getting exposure to russia and india. the pipeline extends furtherer out to 2016. i think abbott labs is a name you have to add in your portfolio. i see the stock going north of 50. >> look at the way it played out today. one week ago, we had big mergers again. last week, the markets reacted just the opposit

of goldman sachs. >> the c.e.o. of goldman sachs. goldman was one step behind. 20 seconds? 20 minutes? i don't know. but goldman was going go down if morgan stanley went down. those two were barely... and this is in part why i think the government leaders do deserve credit because they brought us back by from that brink. >> rose: how did they do that? >> well, number one they guaranteed the money market funds which talk about moral hazard, pulling out moral hazard this was suddenly an over four trillion dollar guaranteed. 100% of the money market funds guaranteed. even your bank account is not guaranteed 100%. this was a stunning intrusion. didn't get as much attention but a stunning intrusion and yet it was a bold step, it worked. paulson did it on sbuls, it turned to be a brilliant move. when it came to be morgan stanley and goldman sachs, they had frantic efforts to either raise capital, i report in the story paulson is calling the finance minister of china, president bush is calling chinese president hu to encourage them in their highly stylized way to people confident

. >>> and goldman sachs is rounding in a record, $16 billion bonus tools. cutting compensation the way to reduce risk-taking? or will it make american firms less competitive? >>> plus research in motion set to report earnings today, we'll dial in a that sector. >>> and get ready for the fast money, halftime report. >>> one of the biggest laggards today is caterpillar. last trade on the stock, $51.51. gm's ceo is meeting with dealers as part of the company's plan to boost sales with a money-back offer. cnbc's phil lebeau joins us now with more. >> fritz henderson joining us from orlando. fritz, i know you're down there talking with some dealers as you're pushing this money-back, may the best car win offer with consumers. what's the response been in a little under two weeks you've been rolling out this promotion? >> the response has been good, phil. the response in the show room has generated a lot of interest. certainly it's generated the buzz we were looking for in terms of sending a powerful signal that we'll put our money where our mouth is. and finally w

and molex, upgraded by goldman sachs. >> a powerful rally in oil prices. we are looking at a power fuel rally, you may want to say, because it was refined fuels that led this petroleum complex higher today. oil prices settling above the $70 mark, up over $3 on the session. we did get that report as bob mentioned earlier from the energy department showing gasoline supplies surprisingly fell in the past week. that was what really started the rally going. also, as we had the dollar weaken that, continues to see oil prices moving higher. we got details behind the scenes on the demand picture. the fact that gasoline demand was up 5% versus a year ago, that had some traders' attention. that's difficult comps over 2008 with hurricane disruptions. gasoline supplies being down, keep in mind last week they were up by 5 million barrels. that may be some evening out there. they are dropping and continuing to be cut and dropping. the fact remains that even though traditionally that is support of prices, the reason they are cutting runs, there is little demand out there

of goldman sachs. >> the.e.o. of goldman sachs. goldn was one step behind. 20 seconds? 20 minut? i don't know but goldman was ing go dow if rgan stanley wen down. those tw were barely... and this is in part why i thi the government lears do deserve credit because they brght us back by om that brink. >>ose: how did ey do that? >> well, numbe one they aranteed the money marke funds ich talk about moral haza, pulling ou moral hazd this was suddey an over four illion dollar guaranteed. 100% of the ney market funds guaranteed. even your ban account is n guarante 100%. this was a stunningntrusion. didn't get as mh attention but a stunning intrusion and yet i was a ld step, it worked. paulson did it on sbuls, it turned tbe a brilliant move. when it came toe morgan stanley and goldman shs,they drantic efforts to eitr rais capital, i report in the story paulson is calling the financminister of china, president sh is calling chinese prident hu to encourage them in their highly stylized way to peopleonfident out puttingoney inmerican institutio. >> rose: and ty call the japanese, as well. >>

for example, clorox was downgraded from neutral to buy by goldman sachs. they did upgrade schlumberger from to buy from neutral. >>> president obama will visit wall street on monday to mark the one-year anniversary of the collapse every lehman brothers. we saw tim geithner defend the moves last nights on cnbc. what do we think? do we face more regulation and higher taxes? as a result of what's going on? firing off, former clinton white house staffer david goodfriend, and ron christie. you have 20 seconds to make your case, ron. let's start with you did we overspend? >> i think we did. i think they spent too much, and america is in a perilous financial situation. government spending is not the sluice to try to get out of a recession. we need to cut back, reduce of size of the deficit. >> david, you heard ron, he says there was overspending and that it was a bipartisan mistake. >> here's what's going on on my planet. right now we've seen the stock market have its best six months since 1938. right now the american taxpayer has made $4 billion on the bailout.

so goldman sachs is one of those outlyers. they will benefit. because of lack of competition and they don't have that risk on their balance sheet. so, yes, they are a big winner here. >> funny thing is, i have a positive on goldman right now but the political risk is the wild card with that firm. they are so over-exposed politically that nobody even in their league right now in terms of political risk. >> got it. chris, paul, thanks so much for your time. >> thank you. >> thank you. >> aig payback, $13.2 billion, it's just there. people, you know, raise the questions. >>> up next, did the government save the day and do the feds have an exit strategy? find out what's being heard on k street and wall street. >> later, one year after the meltdown, are we out of the woods? we're going to talk to two inviders, farmer lazard banker and former lehman vp. could someone toss me an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building

morgan stanley upgrade, this upgrade from goldman sachs. they talked about the growth going for the next five years in a stock like textron, probably a little ahead of itself after this big run. but they're talking about 8% to 10% growth annually over the next five years. pretty impressive numbers. they gave you the road map for the industrials back then when you start to get the ism and durable goods numbers. >> let's look at the other sector today moving the market higher. financials. morgan stanley certainly leading the group higher on an upgrade from jpmorgan, eyer up by element 3%. also there's a lot of chatter about all the fees these guys will earn on the back of all that m&a action that we've seen for kraft-cadbury-f that in fact goes through. goldman sachs as well as others could share about $91 million. >> morgan stanley has struggled to get above 30 bucks so far this year, but it is up 72% on the year, and if you look at what morgan stanley is doing right now in the business model they are focusing a lot on m&a activity. they hav

goldman sachs reiterating the buy i buying point on ge. the meeting this week could be a catalyst to focus investor attention on the organic growth prospects. ge breaking out, up 4% today. >> 79% of investors think that the stock market is resilient and will produce long-term gains. that positive sentiment is welcome news from my next guest after launching his own fund less than two weeks ago. from san diego, chuck, ceo and portfolio manager of the fund. thanks for joining us. >> thank you, maria. >> what was your goal in starting the fund in your own firm, just a couple of weeks ago? why start the focus fund now? tell me what you're looking to achieve. >> well, a couple important reasons. the first was that we wanted to be able to have direct contact with our clients and the advisers who are -- who put shares in the fund.. and we were not able to do that in our subadvisory arrangement. number two, we want to be able to take control of our own destiny in managing this business. as we managed the other fund for nearly 13 years. and there we

carey, what do you think about goldman sachs? do you think it's had its run so far? lloyd can be the smartest man in the room no matter what room he's in, but that doesn't make the stock go higher. >> i don't have a lot of money in this room, but i would not bet against it. would not short it, i mean. >> it is all about fixed incom , commodities. >>> final trade after this. could someone toss me an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem! >>> help us set up our street survivors week. we ask you one year later, what is the best street survivor to own the next three months? it also asks should we play l n lylyn lynyrd skynyrd. >> we'll see you back here 5:00 p.m., more fast money right here on cnbc. we're first in business worldwide. taking its rightful place in a long line of a

the web between aig and goldman sachs is something that should be pursued. as i have written -- >> meaning what? meaning that a lot of the money that we the taxpays gave aig has ended up being paid to goldman sachs? >> precisely. the so-called counterparties to these very sophisticated transactions. when aig initially received $80 billion, a decision the consequence of a very brief meeting of the president of the new york fed, the secretary of the treasury, perhaps chairman bernanke and arguably some reports say the chair man of goldman sachs, $80 billion, virtually all but flowed out to counterparties, $12.9 billion to goldman sachs. why did that happen? what questions were asked? why did we need to pay 100 cents on the dollar on those transactions if we had to anything? what had happened to the financial system had it not been paid? these are the questions that should be pursued. bonuses, real issue. it touches us viscerally. the real money and the real structural issue is the dough it dynamic between aig and the counterparties. >> because those are the te

goldman sachs is the best in breeds. everybody loves to hate them. they love to hate them because they do things right and if they continue to do things right the equity markets continue to improve goldman sachs will be over 200. >> it's one of these stocks, though, that if people out there feel got away from them there, was another chance -- 52-week highs now. what point do you start to think i'm going to pull the trigger here? >> the same answer i've given the last couple weeks. buy morgan stanley, buy some puts. it's the lowest volatility you've had. each day the volatility gets a little lower. you can buy it at a 52-week high. you can still buy these stocks, buy yourself some puts, and you have the protection at the lowest level in not just months. in years. the volatility has been crushed right now in those stocks. >> so get in but buy the snuts. >> that's exactly what i've put on in most of those names. >> you've highlighted what every manager right now on the street feels. it's maximum frustration. why? they're not getting the correction. and

well, this morning it's upgraded at goldman sachs.er fortune brands reaffirms 2009 earnings. nice call by goldman. but things that make you go hmm there in terms of -- >> i'm surprised you know that song. >> i don't. i had to look it up. >> it wasn't from the '70s. pop here for anadarko, up 9%. >> the venus c-1 well off the coast of sierra leone, yes, that well has anywhere from 150 million to a billion barrels. up 9%. i'd be careful about this. i think it's an overreaction. >> drop for w systems. >> the earnings weren't too bad, the revenues are off from last year but the revenues beat on what was expected. but the 1.8 billion they pulled out of there drilling deep down in sierra leone to buy omniture, that cost them a little bit today. >> we've got a pop for the snuggie cat -- new york fashion week brings out all the top designers and hot fashions including none other than the snuggie. the popular half blanket, half coat. made its runway debut yesterday. featuring a new urban jungle line of animal prints. and snuggies for pets and c

karen, what do you think of goldman sachs? would you put fresh capital to work here or do you think it's had its run so far? lloyd can be the smartest man in the room no matter what room he's in but that doesn't make the stock go higher from here. >> i don't have money in the name right here, but i certainly would not bet against it. >> you would not -- >> i would not short it is what i'm saying. >> october 14th earnings are coming out again. it is all about fixed income commodities and currencies. >> as it usually is. final trade right after this. . the reason lies six thousand miles away... in japan, where a producer of specialty eggs needed corn for feed... grown to precise standards. cargill identified the producer's needs, then introduced an illinois farmer to grow the exact corn needed... and developed a system to ship it separately, connecting the farmer with a japanese customer... who was very appreciative. this is how cargill works with customers. hey, it's great to see you're back after that accident. well...i couldn

different than goldman sachs. that's why the whole thing with gorman is very interesting. gorman is a brokerage expert. this is going to be a firm whose business model is around advice. >> nice job, charlie. i can't wait to read that book. it an autographed copy, i promise i'll go to the store and buy it. >> if you guys could just do this the whole show. >> thanks very much, charlie. have a good night. and "cnbc reports squts just getting started. we have much more on john mack's departure from the top job. mary thompson speaking to mack and his replacement. a story you're only going to here on "cnbc reports" live just ahead. the market getting close to 10,000. are we back? yeah, we are. we are first in business in the entire universe. >>> if i were a bear right about now, i would be thinking about hibernating. back on july 2 on my show, john made a startling prediction. >> 4,200 by 2011. we said we would break the lows by october of this year. it's just not going to get better. >> all right, since that show, the dow is up more than 6%. it's going to have to drop 3,000 poi

because citi raised the price target and earnings estimates for goldman sachs, thanks to the recent runup in the market. up to $215 from $175. they think that goldman is poised to gain some market shares. goldman sachs closing with a fractional move to the down side. aig got downgraded by wells fargo to underperform. they say the company has, and this is interesting, virtually no tangible book value. shares moving lower today by just about 1%. morgan stanley closing abo about .75% of 1%. john mack stepping down as the ceo, replaced by james gorman. of course, campbell's soup beat estimates on improved gross margins. guidance ahead of expectations. technology, on the earnings front as well, semi, the results also top expectations. have a great weekend. >> thanks, scott. thaf have a great weekend. >>> the other business headlines we're following tonight. consumer index to 70.2. better than economists' expectations. they were looking for the highest level. it actually hit the highest level since june because of the optimism that the economy was improving. and they were expecting a lot worse.

the web between aig and goldman sachs is something that should be pursued.i have written -- >> meaning what? meaning that a lot of the money that we the taxpayers gave aig has ended up being paid to goldman sachs? >> precisely. s sfl. >> and other companies? >> the sew-called counterparties to these very sophisticated financial transactions. when aig initially received $80 billion, a decision the consequence of a very brief meeting of the president of the new york fed, the secretary of the treasury, perhaps chairman bernanke and arguably some reports say the chairman of goldman sachs, $80 billion virtually all but flowed out to counterparties. $12.9 billion to goldman sachs. why did that happen? what questions were asked? why did we need to pay 100 cents on the dollar on those transactions if we had to anything? what would have happened to the financial system had it not been paid? these are the questions that should be pursued. bonuses, real issue. it touches us viscerally. the real money and the real structural issue is the dynamic between aig and the toun

chief amongst them, goldman sachs because of taking risk down. but ultimately time will tell. here we are one year after lehman brothers went bankrupt and the -- well, just the huge tomult in the market after that and goldman and morgan amongst so many others, key amongst them became bank holding companies. it's early to say what the true motto will ultimately be what we still call the world global investment banks. even though as i said they are regulated as commercial banks at this point. interesting to note an earlier report from this earlier this week from jpmorgan in which they talked about roes declining by as much as 3 to 17% for many of these banks as they deal with the new regulatory regime and they have to shift employee compensation to shareholders to generate what would still be a 15% return on equity. these are some of the questions that gorman will be dealing with as the main man over at morgan stanley. and perhaps one of the reasons why the company ultimately may be lauded for focussing in part for a lot more on wealth management than it has in the past. keeping

goldman sachs has been buying it. david: jack had a tock thas to po

not good for business. >> pete. >> a strong upgrade from a buy from goldman sachs today.ong for them. couple acquisitions, about three of them. that's a growth stock. >> and we've got a pop here for bump passengers. the number of travelers apparently getting bumped from their flights. is that a 14-year high, up 40% a year ago -- from a year ago as airlines cut capacity and looked to fill seats, according to the department of transportation us airways bumped up the highest rate at almost 2%? >> lovely. >> while jetblue barely bumped at all. >> how much, $2.9 billion today. >> $2.9 billion. nowhere in that bump passenger's meter. we've got to move on here. to a drop for arsenal mittal. >> a big downgrade today. that's really the story. a great run for steel. i don't think that you need to jump in here but i think that you buy this thing around 35. >> a pop for caterpillar, up 2%, joe? >> a sweet spot for caterpillar. the ism is north of 50. has dane great job navigating the weight, cutting the bottom line. caterpillar looks good. looks like it will go to 55 now. >> a drop h

i'll start with goldman sachs. goldman sachs has had a very good run recently. >> paul: yes, it has, wow. >> yeah, very good. really you look at that story, they have two of their largest competitors from a year and a half ago, bear stearns and lehmann brothers, no longer exist. they have a steep yield on interest rates. cash is zero. they can lend and do business at a higher rate than zero. that's a good thing for anybody in the financial services business and they should be able to accumulate market share given the fact the competors are not in the space as much as they used to be. >> paul: and the trading symbol is g.h. how about another one? >> sure, same basic area. another one is wells fargo company, w.f.c. wells is a beneficiary-- in some ways-- of the worst-case scenario that was priced into the market in march. really, people were worried that the financial services sector would collapse and these banks would be worth nothing. they also were-- somebody who actually acquired a large bank in wachovia, they b

is he shorting goldman sachs and therefore attacking goldman sachs. he's making money on his website. that's one thing. we don't know. that's a whole conversation about whether -- should he be transparent in order to be a credible messenger. >> and you can actually broaden now that whole argument. that's the argument that goes on every day about bloggers in general. are they adhering to a code of standards that journal itselves do, financial or otherwise. >> the media eco system exists. reporters follow them. the get ideas, see the battle of ideas that's going on. i don't think they're bad. and i don't think that, you know, they have a necessarily negative influence. although i do feel like they tend to me tastesize and grow tanger. >> it's worth pointing out he can report on goldman sachs. we have no idea what his position is. we report. i'm not allowed to own goldman sachs stock no matter what my position is. >> he doesn't even consider himself a journalist, per se. he considers himself kind of a freelance citizen. that's a gray area. >> freelance c

in fact, many times people would argue they've been much stronger than goldman sachs. think you've got a world where goldman sachs is that much farther ahead of them at the core business they're all in, which is sales and trading, capital marks. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. pothole:h no...your tire's all flat and junk. oh, did i do that? here, let me get my cellular out - call ya a wrecker. ...oh shoot...i got no phone ...cuz i'm a pothole...so....k, bye! anncr: accidents are bad. >>> final trade now. >> it would be a shallow pullback but it will be

the government. >> and goldman sachs. the fact is any of these firms despite what was done, goldman did many things right and some wrong, too, they would be out of business, too. when you're funding long-term assets short-term and confidence is gone, you're done. so mack did a good job getting $9 billion from mitsubishi. will it be there, not be there? >> afraid they would welch. >> he was loud and vociferous people were trying to destroy the firm. it should not be destroyed. he did st. patrick's up to the plate and say that the best he's going to be remembered for is saving the firm. that's going to come with the caveat the timing on getting into these areas was totally wrong and you almost got yourself -- >> wasn't as big in buying and packaging as lehman, not as big as bear stearns, merrill, but that was right up there. that was a decision made like so many other firms inability to understand the full risk being taken on. they didn't buy all the worst mortgages. we've done a lot of work on this but they bought plenty of

and the world and societies objectives, through the platform of goldman sachs. >> sherr: is it for thesake of the women and the children? or is it for the sake of doing better business at the firm? >> i think it's both, actually. i mean, i think there is... sometimes i think we have this feeling that there is, you know, this real tradeoff between sort of, equity and efficiency, if you will. you know, and my colleague, geeta rao gupta at the international center for research on women would say, the thing is that if you invest in equity, you actually get more efficient outcomes. and so, while maybe there are sort of baser, you know, self-preservation instincts. and business is about the bottom line. and maybe this is b%ing drinen by the bottom line. i think we actually as women's rights advocates and as feminists, we shouldn't care. on some level, we should be glad that there are people who are coming to the table. it doesn't mean you don't keep pointing out that women are not just a means to an end. to think that 50% off the world's population or actually maybe larger, 51% of the world'

>> just like mike said, it's not just the focus of goldman sachs. you're seeing broad point. jeffries. that secondary group is all picking up. it's going to be a light volume day, melissa, because we've got yom kippur. when we had a two-day selloff like last week as strong as it was, especially for research in motion, you're going to get a lot of turnover. that's good for the high turnover brokers as well as the one mike mentioned. >>> where do you stand in terms of this is a pause in the bull run or start of a downturn we saw on fed day last week? >> i guess in honor of yom kippur, if you can't eat food, you might as well eat other companies. true, there is a lot of cash out there. it's going to be deployed. it's cash without leverage, which means it has a certain business rationale rather than this funny money, pay less, do a deal. the asset manager one, by the way, is quite interesting. at the risk of a profoundly statement of the obvious, as stock prices go up, asset managers' assets go up and they make more money. it's a high margin business. that's a kind of obvious one

in fact, many times people would argue they've been much stronger than goldman sachs.ou've got a world where goldman sachs is that much farther head of them at the core business they're all-n which is sales and trading, capital markets. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this. >>> the newest documentary, "the new age of walmart." again, 9:00 p.m. eastern time. do not miss that one. should be a good one. final trade now, tim. >> it would be a shallow pullback but it will be a pullback. petrobras in the low 40s. >> j.t. >> buy gilead. >> bdx. >> keep an eye on ebay right now. those stocks are hot. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 p.m. eastern time for more "fast money." and a quick reminder, a replay of "fast money" tonight 1:00 a.m. so stay tuned for that one. have a great night, everybody. >> announcer: tomorrow, this distressed financial is a street survivor. the negotiator has the trade you might bank on. and get the earnings edge. the red hat ceo knows

i do that across the board in stocks like apple, goldman sachs. there is nothing wrong with taking a profit. what's tough is having to reload if the market comes back, but the risk of taking partial profits is much less than if you don't do anything here defensively. again, traders, we have some of the best option analyst on the fm desk. they always give you good advice where volatility is and how to hedge your positions if you don't want to do it straight in your stock. >> i didn't see pete hand you money. >> it was earlier. >> all under the table. >> let's move on to currencies euro. >> right. i'm going with the theme that if the equity market's going to sell off here, i'm going to see dollar strength. i took a short position. we went up to roughly around 148.50 last week. my objective was around 150. we moved from 124 around january up to 150. it's been a heck of a move. the fact we came up near 150, i'm willing to take a short position in euro. i did sell at around 146.50. i have a stop just above that. again, with that and the s&p, very tight

such as goldman sachs, that's our top pick. and also jpmorgan, because they don't have that much exposure, as i said. and because they have a nice balance between the capital markets and the more traditional lending side. >> what about regulatory changes? today we're seeing the federal reserve is really watching compensation, that's one thing. a lot of people worry that's going to impact talented people working at these banks. then, of course, with the financial reform on the table, you are going to see bigger government and more oversight. does that cut in any way? >> it could. the thing we're worried about the most, actually, is the degree to which regulation might force down the profitability of some core businesses, such as commodities, and derivatives. although we're actually confident that the legislation, or regulation which is going to pass, is going to be reasonable, because i think that governments around the world are sensitive to not completely destroying liquidity in the market. so we think that it will be reasonab

goldman sachs had a ceo talking about the $100 million advancement. responsible for spending that money, head of corporate engagement. with her is the no left overnight, a graduate of the women's program. which is a quloebl effort to reach women. a lot of our viewers may be familiar with you, because they saw you in our program from legos. and you're catering. i want to start with you just giving us a sense of where you are. when we were there, and our viewers may or may not remember you, you had five full-time employees, and you said sometimes you hire 20 people to do weddings. have you grown? this was in may. >> so much has changed since the last time you came into my kitchen. right now we're handling 400 jobs a day. >> 400? >> yeah. and i've increased my staff strength. and when the big jobs come, like i said earlier with 25. the amazing thing also is that we have increased our clientele. we have corporate clients, and that's such a huge open door for us. one phenomenal thing also is we're able to reach out to the community. i'm so excited that i'm

citrix is added to the conviction buy list at goldman sachs. bed bath and beyond is downed a correct dit swi credit suisse. hercules is down 10%. let's go to chicago and rick santelli. >> thank you very much, scott. you know, of course, we have the last leg of the coupon supply for the week in the form of 29 billion seven-year notes. of course, they will be auctioned at 1:00 eastern. we will be here live, of course, to try to handicap how the demand was in the snap shop form around the completion of that option. rates are virtually unchanged give or take a basis point. when they aren't, the longer maturities are are lower in yield. this ch is very interesting. of course if you look at the knee-jerk reactions after yesterday's statement at 2:15 eastern, the one market that really didn't have a knee-jerk, it moved and it stuck. that was the buying that occurred in treasuries. that, of course, probably won't hurt the auction. the buying index has a reprieve against most card, especially the pound it's rallying against. many like to look at the yen

goldman sachs isn't the only one finding opportunities in china.ricans looking for jobs are actually increasingly heading to china because they're hard to get here. the associated press reports 217,000 foreigners held work permits at the end of last year, up from 210,000 the previous year. thousands more use temporary business visas which allow you to stay for several months. it's not just for jobs now. spending a few years in china increasingly seen as a way to get up the corporate ladder much more quickly. >>> get ready to stop trading. jim cramer is talking about smart phones and wondering how many can survive. and it's called insider trading on wall street. on the hill it's just called a good old pat on the back or good research. should washington be held to the same standards as wall street? we'll talk about your congress person's portfolio. that's coming up. and you get to choose any car in the aisle. choose any car? you cannot be serious! okay. seriously, you choose. go national. go like a pro. tdd#: 1-800-345-2550 if i'm breathing, i'm thin

. >> obama said iran is breaking the rules building a covert nuclear enrichment facility and goldman sachs raising oil demand forecast for the fourth quarter and 2010. yet we are looking at oil prices just up 25 cents or so. any time you have geopolitical tensions a couple of years ago works have been a $10 move higher for oil prices. today, they may account for 10 cents of the move we are seeing now. the dollar playing a bigger role it appears with oil prices today. the dollar's weakness against the euro in splash what traders are paying attention to that seem to be supporting prices despite the weaker stock market. also, keep your eye on what's happening, gold is off of this low because of this weaker dollar. rick santelli in chicago. >> thank you, sharon a saying it all comes out in the wash. today, it all comes out in the warsh. if you look a day of twos and tens, what is coming out is the steepness in the yield curve, rates on the two-year yield have jumped. look at the ten-year yield. completely different pattern, of course, catalyst for this trading today, of course, the op ed piece

goldman sachs off the conviction violet and perhaps worse than that for the stock. deutsche bank cutting it to a sell. elsewhere, a mixed picture, dell and yahoo! negative. google is negative. semiconductor index just under a bit of pressure, a fractional move, but something that was weak throughout the morning, so, come back a little bit, why the nasdaq has tried to come back as well. intel fractionally weak as well. call your attention to alos they are rah put ticks, the fda has given accelerated approval to the company's key cancer drugs. come to the wall, i don't have a deco for. this a stock, ipo today, open for trading perhaps in five minutes or so called shanda games, parent company out of interactive. here is the deal, largest u.s. ipo in 2009, largest u.s. ipo ever, ever of a chain niece internet company. the stock is actually, i think opening now 12.50 or so where the stock is going out, 83 million shares that did price at the top of the range. an interesting story. i will update the next time i see you where the stock is trading. it has opened and up abou

>> i don't know. >> i remember back in july, goldman sachs had that upgrade. rice target on it when they went to buy. yesterday jp morgan went to overweight with a $17 price target. goldman comes back today and goes to $18. raises their price target, right near $15, just moving it up. dupoo nt downgraded. the company believes the shares of dupont are fairly valued. ups upgraded from overweight to neutral. jp morgan, $70. ubs downgraded from neutral to overweight, jp morgan and kraft foods has laid out targets, talking about productivity as a percentage of cost of goods sold, greater than 4% by 2011. all this, i guess, in some ways in response to -- >> talking about potentially -- i looked that guy up, that wrote the heard on the street column yesterday basically saying cadbury was right to say this was nothing of an offer and snubbed their nose at t he's from wall street europe or dow jones europe, based in paris. on holidays, they're always looking for a heard on the street. so, throw in something else. it seemed like it was a little different tone. >> yeah. >

he was also at post relationships with goldman sachs. the people who have been critical of both men has been critical on the grounds that theirolicies have be if anything too friendly to the investment banking community. there's a coherent set of questions that have been raised about that. i don't know that i see a huge broad policy. they are both have ten the aggressi effect so that if w don't bail out the large institutions that will have a broad negative effects on th economy as a whole. and so i think they've been quite aggressive in trying to keep those institutions from having to go under for that reason. >> a professor frank, you talked about ben bernanke as well. you know, the fed chairman quite well, coauthored a book entitled "principals of economic" he's under a lot of fire right now. his term expires in january 2010. do you think he will be reappointmented or more important think, does he think? >> i don't ever call him -- i imagine he's sleeping many few hours a night than i am. he has a very full plate. i wouldn't call him

electronic arts gets cut down at goldman sachs to a neutral. that's off 1 1/2%. pharmaceutical is off 3 1/2% after being cut over at citi group. one of the big winners today is vical, they say their h1n1 swine flu vaccine has tested positively in animals. let's move on over to the nymex now and sharon epperson. >> oil prices are lower on the other side of the atlantic. we have energy prices lower across the board here at the new york mercantile exchange. traders are waiting for the inventory to come out from the u.s. government, from the energy department at 11:00 a.m. eastern time. it is going to be a day later because of the labor day holiday. we'll get natural gazda a coming out at the regular time at 10:30. look at what happened overnight in terms of prices. they were impacted somewhat by the american petroleum institute data, show decline by 7.2 million barrels. much greater than the 1 1/2 million barrels expected by the reuters survey. we have distillate fuel supposed pry plies and mastercard saying that gasoline demand for september -- approaching septembe