i don't know how google can promise that kind of reliability. >> reporter: google may be sidestepping that issue buy targeting the netbook. scott kessler says buyers of netbooks, may not insist on the same user experience as desktop users. >> this is going to be largely an additional, low cost pc that people are going to use maybe in connection with a desktop or another laptop or what have you. so we think people maybe more inclined to take a chance or experiment with google especially if the price and the experience are right. and susie, microsoft and google are also doing battle in the halls of government here and abroad. where both firms are encouraging investigators to look into the competitive practices of their chief rival. >> susie: we just got a news flash while you were delivering yourer to that google says its chrome will be available to users at no cost. so what do you make of that? >> well, that was not unexpected. it certainly one way to build market share. it's going to be very interesting to figure out in the long run how google makes any money from this. google really

google reay hasn't made any money from any ofts applicions. it makes a phenomil amount of money from itseb search and the advertising with that. but nothing els it has de has been profitable. how will it make money this way. will it put advertising on the desk top of chme users? and what willthe anti-trust people thi about this? it raises questions. >> susie but wenow that goog is very poparith most users, they love the searchngine, theyove the mail services. seems likes it's gng to be an easy sell to get consumers to usehe new chrome. >> maybe consumers, maybe the peopleho like to try out new things. but, you know, have you lookn the long run at this thing. the linux basedystems have been out for a long time, we'll have to seeif they have the pport for applications and when businesses look at these thgs they're goingo look at that, and as some of our commentators see in the story, they're going to look to see if ey can deal with the centraled control and the curity, the kinds of things that have been built into wiows over the few years. >> su

that was from google. we move over here a little bit. that was from google. you know, this is an interesting report from these guys because as you were talking about, the momentum thing is significant. you know rks s the, there's bigt mobile on the google conference call right now and whether that's going to cannibalize the desktop business. the advertisers are going from one extreme to another. they get to know a lot more about individual users when they see quhawhat they're searching on mobile devices versus desktop. that line about business stabilizing and large advertisers coming back to google, that is very key. this is a company that doesn't offer any meaningful outlook, but when you read to tea leaves and look at those comments, you start to think that maybe the economy is beginning to bottom and google is a great canary in a coal mine when you talk about this economy because of advertising. over at ibm, when you're talking about a company with such a significant bottom line beat -- in fact, this is the biggest bot bot bottom-line beat that ibm has eve

google makes money from youtube because what google -- google has 300 services of which maybe 290 arefree. what google wants you to do is exactly as you said in the beginning. google wants you to use the internet and you'll leave traces of information your actions let google make more money by selling ads. the attachment to the google network will ultimately benefit google. and whether it's that you, you know, switch from youtube to one of the other services they monetize or whether the information between the videos you upload and the videos you watch allow google to create smarter businesses elsewhere. and in economics it's called a compliment. you give away the mustard for free to make the hot dog for attractive. no one says that mustard sasays can get t.a.r.p. funds. never in human history or never in the history of advertising, same thing, really, have advertisers not found a way to follow the herd, you know, to follow the audience. when we invented the car, advertisers very quickly invented the billboard and as we moved to television, maybe that static picture could be a moving

and what is google becoming.it's almost like everybody is chasing twitter right now, and facebook clearly is. but when it comes down to it, the social aspect of facebook where your friends are recommending things to you which could be products or news items and it's the constant sort of loging into the site 25 times a day is something that google needs to address. and right now they.... >> rose: so that's zuckerberg's argument. who better to go for a search than your friends? if you know and trust. >> exactly. exactly. why not. >> rose: because they know who you are and what you're like. >> some of the startups that buy traffic on google search are talking about the conversion rates from those... conversion rates meaning purchase or signup that they get from from that purchase traffic from google is good but not nearly as good as the conversion rates from facebook and twitter. so if i just send out a link saying "wow, i just saw this movie and it's good" and you click on that, you're more likely to see the movie

you own google? i know you are a small-cap, value guy, but do you buy google? do you have a position? >> my firm owns both names. and this is still too soon to talk about what investment decisions would be made off of, you know, just early, early news in this environment. and in the case of microsoft, you know, valuations are extremely compelling. you hear me talk about free cash flow. microsoft is very abundant from that measure. so, it will be interesting to see. you're getting a heavyweight battle here. a $200 billion market cap company against a $125 billion market companies and there aren't that many market cap companies left after the bear market of that size. >> david real quick, yes or no, at the end of the year, s&p 500 above where it is? >> it's down 3%, it better be. >> dan, yes or no, markets be higher end of year than they are today? >> ultimately higher. between now and then, lower. i'm waiting. >> john forte, you want to take a whack at that? come on, buddy, i know you have an investment strategy in there. >> i'd say higher but -- >> john, let me

google intraday, google popped $10 in the last half hour in expectations. came down a little bit. >> tell you what, bob, we've got the revenue out at $3.07 billion on google. and the estimate was a revenue estimate of 4.06 billion. we're looking at about a billion dollars short on revenue, but let me not misspeak and get to jim goldman.n. he's got all the details behind the numbers. jim, what do you see? >> maria, that is the story here. as much as we normally will focus on earnings per share on almost every company that we follow, and google beat and beat handily, the story for this company this quarter around was everybody was watching the top line because it's a good barometer as far as ad sales are concerned as to how this company as well as a broader indication of how the economy is doing. and ad sales were widely watched and very important to this company's report, and to come up almost -- well, over -- almost a billion dollars short is going to take a lot of people by surprise and not in a good way. and it almost completely eclipses that non-gaap eps

the web will search on google, at least that's the conventional wisdom at google. i don't think microsoft is sitting still, though. i think that when you look at what google is doing today, it is not such a stretch to believe this is exactly what microsoft is already doing and microsoft's got, what, 20, 30 years on google in the operating system business? i don't think it's just an -- you know, an automatic slam dunk that merely because google has now shifted its spotlight to the operating system that it's going to be the defacto winner. >> and 90% of the market share. >> got it, jim. thanks. this remind me, google entered the search market when yahoo! was the leader and everybody said yahoo! has it on google because they've been in the market so long. that's just a cautionary tale. the share price did go below $400 a share. you were talking about the levels there. i don't know. it seems like a bounce back -- >> the s&p made a low. if it does hold and google is a proxy stock to be long. 870 felt like it held today. we'll re-evaluate. >> you're using the weakness in

google and ibm.we'll give you the estimates. >> and after the bell former california treasurer phil angelides joins us to discuss the new financial crisis commission he's heading in the details of its new probe into the ongoing crisis. >> but first here's where the action is on the street today. the most heavily traded names on the nyse. you're watching "the closing bell." we'll be back in a moment. taking its rightful place in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz. >>> claims fell 47,000 to 522,000. analysts had been looking for the number to be 565,000. continuing claims falling by a record 642,000 to just over 6.2 million. that is the lowest level since april 11. meanwhile, the philadelphia federal reserve survey posting a worse than expected decline in july. manufacturing activity in the region shrunk for the tenth consecutive month to a reading of minus 7.5. analysts had been looking for a reading of minus 5. and rates on fixed rate mortgages

>> yeah, but less than for google. remember, the combined entities are still less than half the size of google in the search market. >> yeah, let's put this up on the board here. let's go to david garety. let's see, google, 65%, yahoo 20%, microsoft, 8.4%. i still think there is a better chance this christine varney -- an extremist antitrust -- she has gone after google, hasn't she? >> it's true going after google, but there are other issues to be concerned about here. there have been hearings up on the hill in june talking about privacy and to the extent that all search companies gather data on users. there are concerns here that the regulatory authorities as they review the transaction may actually try to get the parties to have data collection occur only on an opt-in basis. and from that standpoint, if it's opt-in, obviously not all consumers will opt in. it puts the onus on the companies trying to gather this data to make sure they have agreement. and to the extent there is less data being gathered, one might argue

ibm and google reported blowout profits after the bell. ibm stocks surged, google's fell. the question, is this rally sustainable? will we break to new highs for 2009?? what about profits on the economy? let's go straight to our market gurus, gary schilling and robert dahl, vice president chair of equities at black roxx. what's your take? is it sustainable and are the profits good enough to keep stocks rising? >> no question, it's early in the second quarter reporting but the news so far pretty good. we had a number of companies a pretty high percentage do better than expected. a lot has come because cost cutting efforts are working a few of them, thankfully big visible companies are doing it on the top line. that's the surprise, what we keep our eye on, revenues relative to expectations and forward guidance so far is sketchy. i think the news so far, it's early, is reasonably good and why stocks have moved out of their lethargy and had a pretty good week so far, hope it continues. >> gary schilling, welcome back. neuroio robouni said he didn't really change his forecast b

they're prepared, i think, to really fight with google. it's unclear what google is going to do. there was talk today at this microsoft meeting i was at of google employing sort of third party advocacy groups to fight the deal. but google is the big gorilla here. it's a little challenging for them to make an argument that this is going to be anti-competitive. google has -- >> it's irony. last year, when there was threat of microsoft buying yahoo!, google wanted to make a a deal with yahoo! of the search. microsoft complained about it. and said to the justice department, successfully argued that we can't do this. because yahoo! would end its search team. there would be less competition in there. guess what. >> charlie: take over the search team. is there a feeling with the search backs getting good marks and now this deal is microsoft is back and can deliver a lot more than people, maybe much strongering that people assumed it was say six months ago when the effort to buy yahoo! came to nothing? >> there is a feeling on the upswing. windows 7 is coming out which they hope will era

the attachment to the google network will ultimately benefit google whether you switch from youtube too another service or the reformation eight that you want that allow you to create smarter businesses elsewhere they will extract money it is called the complement you will give away the mustered for free to make a hot dog more attractive. nobody says mr. qualifies for t.a.r.p funds because it is a bigger business, the hot dog business. last, youtube is five years old and acquired eight network television sized audience never in the history of advertising has advertisers not found a way to follow the herd or follow the audience as we move to television and advertisers quickly understood maybe this static picture could be a moving picture. it took them a little while to get it to move. as the audience moves to youtube we will find no way for video advertising as well the reason we cannot take television advertising is because it is mass to mass. coca-cola against "american idol" coke against my tutorial does not fit had we make video ads as granular? it will take us a while. deconstructio

google ivery aware of at.free sff on twitterand facebook is bett than paid ads on ggle and that has to be freaking them oua little bit >> ros what did youo? youublished some internal financial docunts from twitter? >> there this hacker.... >> rose: inow that. >> this french g got the cuments from twitter beuse of these guest books. >> rose: what did u do? >> i'llget to it. sohat he did was he wanted to warn twitter that, you know, ur security is awful. and also he wanted to get credit for doing ts. hacks, crackers do that. soe went to the french media and a french journalist...e was told about it, the french journalist went to ttter and said what happen andwitter wouldn't respo. he dropp it came t us and said.... >> rose: who came to you? >> that this hacker anomously. he sent us all this document. >> rose: what was in the documents? >> itas ndreds of documents tan from twitter's employees' attachments to eail accounts. and it included interview schedules, peop they interviewed in silicon valley, ominent peopl

to google means to search the internet.when it comes to computer software, and crucial operating systems, microsoft has been a dominant player for decades, but industry watchers, like jim, saying google could give microsoft a run for its money. >> when you are looking it is transitioning to the internet, where the internet is now be more efficient operating system. >> it is said that google's massive presence makes it good for an operating system. the editor of "pc magazine" says that google makes it faster and easier. >> the operating system can be the main thing that gets out of the way. that would be one benefit. the other benefit would be security. >> microsoft is so widely used that its software is tempting for hackers and viruses. a new system could be more resistant. >> microsoft is not standing still. they know they have to move their business online. they are very aware of it, so they are going after google, and they are also moving course software applications online, as well. >> google operating systems will not

to google mns to search the ternet.when itomes to computer soware, andrucial operating systems, microsoft has been a minant ayer for decades, but industry watchers, like jim saying gooe could giv microsoft a run fo its money. >> when you are looking it is trantioning to the internet, wher the internet is now be morefficient operating system. >> it is said th google's massive presence makes it goo for an operang system. the editor of "pc magazine" says that google makes it faster d easier. >> the operating systeman be the main thing thagets out of the way. that would be one benefit. thother benefit wld be secuty. >> microsoft i so widely used that its software is mpting for hackers and vuses. a new system could be more sistant. >> microsoft isot standing still. they knowhey have to move their business online. they e very aware of it,so they are going aft google, and they are also moving course software applicatns online, as well. > google operatinsystems will not be avlable until xt year. in the meantime, microsoft is up

they're hoping to mount a real challenge to google. yahoo has agreed to used microsoft's new search engine bing. once millions of yahoo users check out bing it will break the habit of using google. in return yahoo gets most of the ad revenue. the company spent about a year and a half firming up the deal. >>> more than a billion apps have been downloaded for the iphone. they rejected google voice. for one reason it kpeecompetes services from at&t. it lets users access multiple phones from a single number. it also provides text versions of voice messages. despite the rejection, google and apple remain tight. so tight regulators are always looking for any sign of anticompetition trade practices. >>> the first e-commerce store is open for business. 1-800-flowers.com features a link to make shoppers make purchases while remaining on facebook. you have to type in all the characters, 1-800-flowers.com. shortened versions will land you on pages critical of the company. so far, only 1600 people have signed up for the fan page. >>> lawyers hope

search on googl aleast that's the conventiol wisdom at googl i dot thinmicrosoft is sitting still, though. i think that when u look at what google isoing today, it is notuca stretch to believe thiss exactly what microsoft is already doi and microsoft's got, what, 20, 30 yearon gole in the operating system business? i don'think it's just an -- you know, an automatic slam dunk that merely because googleas w shifted its spotlight to t operatg system that it's going to be the defacto nner. >> and 90% of the market share. >> got it, jim. thanks. remind me, google entered the search market when yah! was thleader and everybody said yahoo! has it on google because they've beenn the market so lo. look what happened. that's just a cautionary te. the share price d go below $400hare. you werealng about the levels there. i don't kn. it seems like a bounce bk -- >> the s&p made a low. if it does hold d google is a proxy stock to be long. it can go back to up 4 schb, 430. 870 fe like it held today. we'll re-evaluate. >> you're using the weakne in microsoft to b, joe? >> lover of microst. >> i did not bu

pay for taking their work and labour and selling ads on googled google is making lots of money in fact ducal makes most of the money that's made for advertising on the web made by google and next to them yahoo! but they don't hire reporters and they have no hand in creating that news. they feed off of it like a tapeworm feeding off somebody's guts acting as they are along for the ride. that is a very bad model for the future because it kills the goose that is going to lay the golden eggs. if the news organizations stop reading the news googled news isn't going to have much to aggregate. >> so what is the solution to a generation growing up what they consider to be free news? >> i think that is the great rebel. are we going to find a way for existing news organizations to survive with the commercial model that is based on the web and print or just the web alone. i don't think we figured that out and get but i can tell you this if we don't find some commercial mechanism as far as i'm concerned to sustain this kind of donner and cord news, syria's reported news by serious journalists i'm

we'll see if google can -- one trader was worried about google's earnings thursday. the intel's chips moving forward, best performers of the day. the worst performers so far are the haulers, the truckers. j.b. hunt says pricing is still a big problem did he say the pit the fact that fuel has come down. roth has been hitting it out of the park and rilely automotive, people continue to fix their cars and hold on longer. >> thank you very much. the buying was kind of muted after that eia data came through, but we've gathered steam as we have gone on here, firmly above $61 a barrel, the nymex about 61.27. let's take a look at the numbers, the drawdowns when the numbers came out was 2.8 million barrels in if crude oil. the gas stocks were up 1.5 million, but it didn't really happen that way. the refinery run rate is really what we're talking about here, uptick by more than 1%, and so that's really -- the refiners are really dealing with t. i want to point out the dollar index, since santelli is not here, that's really -- ray car bone from paramount options telling me that

google. a search tool.ormation on everything from stocks to your çclosest movie theater, but the are new concerns that google may know too much about everything, including you. google wants all of the world's information, from books to bone scans. one man found out that even email was fair game. he reopened his gmail account to find an advertisement for cheap airfares for a country. >> it is creepy. someone is reading the content of my emails to determine what i am talking about. trace: but some say it is a trade-off for free services or a way to save money. >> how do they know that i want to travel to mexico? the deals that came through it, after i got used to it, helped me out. trace: it can figure out what you like to eat and tracking what you are driving. it allows people to see street views as if they are driving down, with zuma. >> in downtown seattle, nobody seems bothered we are shooting this video, but google's street view has been coming under attack for allowing people to look in. these images a

two out of every three online searches, paul, are done on google. >> paul: google shares closed up $4.43 to $442.62. but after hours, they were down almost 3%. now let's take a look at some stocks in the news tonight. @ >> susie: it looks like china's efforts to stimulate its economy are working. it said today growth accelerated about 8% in the second quarter. the auto industry is a big beneficiary of china's stimulus spending and automakers expect to post record sales this year. as nick mackie reports, chinese investors aren't the only ones benefiting from the boom. >> reporter: company boss yin mingshan got a shot in the arm just before the financial meltdown, by selling 13.5% of his motorbike to auto manufacturing lifan group to none other than a.i.g. for a cool $90 million. then, as a consequence of a.i.g.'s bail-out, the american taxpayers became, effectively, this chinese carmakers second largest shareholder, after him. now with china's stimulus measures bearing fruit, a bullish mr. yin is throttling up production. and he expects more us strategic investments to follow. >> ( transl

but the fact is that google gives each of those media outlets the choice to opt in or out of google news. and they have all made the choice to the most of them have made the choice to of debt into that. >> they have no choice. >> the disconnect is what brian was saying earlier. figuring out the right business model among the traditional media players and embracing the change rather than fighting it and demoting it. >> he's a lot of stories were broken out on the web. those stories may have appeared first on a web site, but they were generated by a member of the mainstream media. it just happened to appear publicly on a web site. >> but the web is mainstream in this industry. >> i am talking about an aggregated that is not paying for the information that is leaking to a mainstream media constituent. you're paying a reporter to be on the campaign airplane and to cover the war in asia -- >> there are sources of the website already. they are linking the story. >> what is the value of the link? that is what is changing in such rapid time. the premises just 18 months ago is that coming from go

you end up with 25% share small compared to google and world-wide, 8%, and even smaller compared to google world-wide. and they really are nowhere in the marketplace targeting. >> google has about 65% market share searches. as paul said, yahoo and microsoft together have about, what, 25%. does this deal work? there's so much skepticism about this deal, microsoft and yahoo. >> absolutely. in search, the more people you can get to use it, the better it becomes. microsoft has knocked effectively triple its market share. the technology has to be good and in the past, hasn't been. at least they're in the game now. in the past it didn't matter how much technology they had, they didn't have enough users. by pairing with yahoo, they have a chance. >> does technology compete with google. i want to ask something i asked earlierment click to sale. on google, you can click right to sale first. you can't do that on the yahoo version. maybe i'm wrong. compare the google technology with the yahoo microsoft technology. >> the stuff consumers see from the standpoint of search, there isn't much difference,

jim goldman talked about google.gle with the expectations of the numbers and that's the consensus. i want to touch on something you guys talked about. the chips, i want to give you a quick summary. up about 6/10 of a percent. applied materials up 1.2%. back to you. >> a week of rallies.s. as brian is pointing out, we see tug of war. is it washington or the economy? cnbc market analyst, guys, let me start with you. s&p up 6% three days in a row. you will have a pause here. this pause, is it just a stall or do you see something that worries the markets? >> i think something worries the markets.s. if you look at the last four or five weeks and look at the correction in the stock market and the performance where you have defensive sectors and outperforming small cap and industries collecting and worried. what they are worried about is simple.. it's valuation. basically the market has gone very far very fast. it's gotten ahead of itself and it discounts a stronger recovery in the economy and earnings that lies ahead. valu

but back to google for one second.hat are you looking for in terms of their ability to manage the bottom line? because that is important in the declining ad revenue right now. >> yeah, you know, the move in the stock in the last six months has all been bottom line. it hasn't been top-line performance. you have a new cfo who shows he can take a lot of expenses out of the business. he better continue to show that for the next couple of quarters. we think they will. they've reined in aggressive personnel costs, cutting back on some of the discretionary expenditures, the wild cafes, et cetera. but they better keep that under tap and they better show that good times come back when the economy picks up that they'll maintain the discipline. if they don't, the stock will come back down. >> good to talk to you, mark matheny at citi. >>> what do you think? the eft which is the bottom range of what he thinks would be neutral given that the stock is up where it is. ten-month highs. it seems like that would be a trigger for a lot o

until now neither were competitors to google and google got the prices. he thinks this will help bring prices down and will be great for advertisers in terms of choice. >> do you think so, ben? >> i think that is true. standing alone they were not competitive threat to google. now together it's still going to be an uphill battle, but they have a fighting chance. >> am i being naive, after all they went through in this country and europe and still feeling the affects of the antitrust suits in europe there, you would thing they would have done the due diligence on this one and before they would ever think about doing a deal with yahoo! here? >> there's no question they have pretty strong arguments to try to get the transaction through. >> what are they? >> in order for them to be an effective alternative to google, they need to combine. that's their core argument and the question is going to be whether advertisers who are choosing between either google on one side or alternatives to google now see there's a better second choice. if those advertisers are fin

then comes where google is operating google chrome in an effort to unseat his dominance and windows softwareit of reality check here. microsoft owns the operating system market and has been able to rebuff all comers including apple which has made significant strides in the marketplace but still only controls a fraction of it. people kind of laughed off microsoft search engine bing as being unable to do any meaningful damage to google's dominance. the same likely can be said of google's attempt to unseed microsoft's dominance in os, so far. any real operating system software won't be available from the company until late next year. that's not to say the battle for soft care dominance won't be an interesting one. it will come down to what hardware makers will use fr either company. hp is reportedly interesting in android, could dell include chrome from google? what kind of pressure could microsoft exert? it's hardly a case of david versus goliath, more like goliath versus goliath. rebecca, back to you. >> thank you, jim. >>> up next, the president of national association of manufactures on wha

google is taking aim at microsoft after announcing plans to roll out its own p-c operating system, google chrome os, which should arrive to market in the second half of next year. though google did say chrome will work with full- powered desktop computers, the operating system will target the growing market for netbooks, or smaller computer designed primarily for web use. "microsoft has a problem with netbooks. their current operating system, microsoft vista, does not run on netbooks. their older software, microsoft xp does. so if nothing else, this is a way for google to annoy microsoft." with pricetags as low as $300 netbook sales have exploded in the past 3 years. according to market research firm idc, less than 200-thousand netbooks were sold in 2007, compared with more than 11 million in 2008 and a projected 21 million this year. whether or not that trend continues could be the key to google's foray into microsoft territory. "we'll see what happens in 2010, 2011, 2012 when the economy hopefully rebounds. there's a lot of pricing pressure on laptops and desktops now, we'll see as more

>> google right now dominates the search engine business out there. as you just saw in the graphic, 65% of all of us when w when we do our searching go to google. yahoo before this deal today just had 20% and microsoft just over 8%. this partnership today aims to really make that whole environment much more competitive and the two companies microsoft and yahoo who entered that deal today say it's going to improve the web search experience for all of us because now they are not going at it individually challenging google but now they will have the ability to innovate and advance the search technology together. shepard: this deal comes at a pretty crucial time in the industry, really, because google has been making moves to challenge microsoft's stronghold in the software business. >> this is huge because analysts say this could heat up and be an even bigger battle than the search engine business that they are going for right now because google is challenging microsoft 90% stronghold on the operating system business that they have with windows worldwide

excluding its, google earned $5.36 a share sily beating wa street expectations. revenues rose 3% to $5.5 billion. it's slowest sales groh rate since e company went public. that drop is due to thoverall decline in snding on online advertising. but its sear engines are still going strong. two out of every three oine searches, ul, are done on google. >> paul: gooe shares closed up $4.43 to $442.62. but ter hours, they were down almost 3%. now let's ke a look at some stocks in the news tonight. @ >> susie: it looks le china's efforts to stimulate i economy are working. itaid today growth accelerated about 8% in the send quarter. the auto industry a big beneficiary of china's stimus spending and automakers expe post record sales this year as nick mackieeports, chinese investors aren't the onlones benefiting from the boom >> rorter: company boss yin mingan got a shot in the arm just before e financial meltdo, by selling 13.5% of his motorbikto auto mafacturing lifan group to none other than a.g. for a cool $90 million. then, as a conseence of a.i.g.'s bail-out,he ameri

google challenging microsoft on what it does best. >>> $30 air tickets and other des, as the airlines face a dismal summer season. ♪ / >>> general motors' brief trip through bankruptcy court could end as early as midnight. that's when a judge is expected to free the automaker to close the sale of its best assets to a new government-controlled company. gm will emerge a smaller, more nimble company. that may not be the only big change. the company is said to be considering the blue background on its iconic logo to green. a sign of its new commitment to fuel-efficient cars. >>> wall street begins to turn its focus to corporate earnings today. aluminum giant, alcoa, kicked off last night to a loss. experts feared the results would be worst. that helped boost the stock in late trading. >>> overseas investors appear unsure of what to make of the alcocoa reresults.s. tokyo's nikkkkeiverageelell 1.1% y. and d n londndon, the ftse open higher. the dodow at after adding g 15 points yesterdaday. the nasdaq ticd up 1 p point t close e at 1747. >>> well, amamazois cututti t t price for its s popul

we'll preview google and ibm's numbers. should you be getting in ahead of these numbers and investing in tech? back in a moment. 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! with annuities from fidelity. turn your savings into income -- guaranteed, and get a retirement "paycheck" for life -- guaranteed. call... to get started, and learn how to secure retirement income that won't go down -- guaranteed. call fidelity at... for details about guaranteed income for life, and change the way you think about your retirement savings. >>> welcome back. yesterday we saw strong numbers from intel. tomorrow two more big technology names report their quarterly numbers. cnbc's matt nesto at earnings central right now with a pre

google shares rallying on this news even though the company says the google chrome os is still more than then that will be the beta version. will cut to the core of microsoft's business to do it. for its part microsoft is down playing the entry saying windows 7 will be on the market. and already does everything google says it will be working on. the irony here is when microsoft unveiled its search engine bing was laughed off but the google announces mere plans, it's viewed as a windows killer. trying to my great the operating system with rumor that's hp is testing it out on a new netbook. of course, whether google will have the infrastructure which could affect the cost and expense structure. it's one thing to ship an operating system but something far different to support it. this is going to be interesting, indeed to atch. >>ou next guest, $480, benjamin with bad point am tack. what do you ink ofhem? >> we've been talking abo this for a ti. you look at google from a high level, this has been about a battle with microsoft since day one and this is another step forward. >> will they be g

what's the use of google mobile? >> when you have a mobile device particularly a smart phone, you're always still looking for information. i actually don't think there's much of a distinction going forward between the desk top and smart phone internet experience. you always want more information. google can win when people are using the internet more. their strategy is to have the most share. >> makes sense.. all right. thank you, ben. >> thank you. >> up next, stocks stuck in a rut. today at least. you can't complain about the last week or so. more mixed signals on the economy from today's earnings reports, we'll take you inside the action and have the latest from bank of america's conference call straight ahead. >> whether a bull or a bear, what's the best way to make money in the market right now? we have some answers coming up in your cnbc edge. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? thes

i'm calling about google. i understand it's got a mobile operating system, and it's trying to get into this industry. so i'm wondering, can they really swing it? and if so, how is it going to affect the other players in the industry? >> no, i don't think they can swing it. this is a system -- you know, operating systems are owned by microsoft or apple. microsoft is really the dominant player 97%. i think it's nice that google is doing that. you want to own google because advertising. it's an advertising model and the predator model. it doesn't like to think of itself as a predator. more like the alien. but i believe google is a play on just -- just going to the site and hitting something up and seeing the ads and clicking on them. that's how we're going to view google no matter what they talk about with operating systems. let's speak to steve in texas. steve? >> caller: yes. boo-yah to you. >> good to see you. >> caller: listen, i wanted to make a comment and then ask the question. in relationship to the stimu

unlike google's chrome, gazelle could be a far more immediate threat to google. the gazelle browser from motorcycle crow soft was detailed in a company white paper two weeks ago for engineers. browser as operating system is how the software was characterize that sounds familiar, exactly what google announced last week, trying to move software to a service with everything stored online as opposed to living on your personal computer. both companies trying to take advantage of stunning growth in the net books sector, those stripped down, inextensive net-connected laptops. this morning, display search news says the net book sector will double in size to 33 million units this year, accounting for 20% of global laptop sales as traditional notebook sales will be flat. analysts say microsoft might have a better shot at dominating the is sector even as windows 7 gets ready for its release in a couple of weeks because it already has the struck truck in place to support a new os release for both enterprise and consumer customers. google coming at this pretty much cold. none

. >> susie: google continu to search outrofits. the company poed a near 20% rise in seco quarter earnings. but the gianweb search engine isn't fing on all cylinders. we'll expln. >> paul: i'm paul ngas. >> susie: and m susie gharib. is is "nightly business report" for thursday, july 1 "nightly business rert" is made ssible by: this program was madpossible by ctributions to your pbs station from viers like you. thank you. 7/ >> susie: good evening, everyone. hank plson was back in the spotlight onapitol hill today, but it wast the kind of homecoming he expected. testifying bore a house committee, the formetreasury secrary was grilled on his role ibank of america's controrsial purchase of merrill lynch. facing harsh accations from lawmakers, pauon defended his decisions anactions in the deal. in the pt month, fed chairman ben bernanke and bk of america ceken lewis also faced tough questiing from this committee. but as dana bateeports lawmakers e still looking for answers. >> reporter: former easury secretary henry pauln may be out of

i think they've gone up and starting to make mistakes, i point this past week blocking a google voice ap from their ap store. they did it because they wanted to maintain control over the iphone's calling interface. this is the same thing myspace did a couple years ago, the hottest social networks out there, all sorts of developers trying to get on myspace and build their apes and said, don't do that. facebook opened upped and said we will do that. they became the hottest thing. and they're waiting to be that to apple. >> what about tech. >> i think you need to diversify in tech, by smas, buy semiconductors. i'm bullish on apple. i'm long apple for the reasons we just talked about. we have the consumer coming in in september. there's a lot of reason to be long tech. >> you should be bullish on apple. my clients have been bullish on apple. the biggest concern from apple, can they encroach and steal business from blackberry? i'm a blackberry user and saw 34ing earnings they weren't able to get that corporate -- >> buy multiples. if you buy tech stocks buy them cheap. i wouldn't want to b

it is available for anybody with a google account. and it only works when you're signed into your google account. first wiki is something that appears on screen when you conduct a regular google search. it includes arrows beside each search results. a little tiny icon that represents notes or comments that you can add to a search result. so what's the point of all these search wiki i cons? well, those can be clicked and then a search result shoots to the top of the screen. that means that you value that result. you think it's important for you. >> where did you find katy? >> katy came to me from the university of delaware. a young woman. she's still a young woman. and she started as my -- what we call reporting assistant, which is just a job title at the journal which means you do some reporting, you do some clerical things. and she turned out to be terrific and she's now a full-fledged reporter at the "wall street journal." and an employee of mine. and she's great. >> go back to "all things digital conference." where was that held? >