what's your take on that, jim paulson? pawhere do you see the risk adversity and are you still seeing a steady flow of interest into credit? >> there is certainly heightened risk here. fears, if you will, going on. it relates to european news t would have created a much bigger downdraft than a year ago than it is today and because investors are conscious of the facts that the data on the u.s. recovery is much better and much broader than it was a year ago or two years ago. one point i'd make, it's breaking on the scene in january 2010 and every time the news flares up, it's going to be an armageddon outcome it's happened time and time again and if investors would stay and invest since it broke in january 2010, you have 12% analyzed returns almost. >> it's a great point. i want to get back to that. jcpenney has reported earnings. they are losing money. 25 cents loss versus 11 cents. courtney reagan is following the story. court? >>. >> the street expected a loss and jcpenney reported a 25-cent loss for the quarter. revenue

our friday market monitor will be jim paulson from wealth capital management. he has four reasons the stock market could rally. and the facebook stock dump we've been telling you about, we'll have a report on its first day of trading. and the u.s. has personed experiencing a record number of business start-ups. if you happen to be among these new entrepreneurs, alfred edmond junior has three things you need to know. he's editor-at-large, at black enterprise. >> here are some tips to help you ensure that you're paid what you're worth. first understand that profits don't happen by accident, or justy being a good person who is passionate about their business. to turn a consistent profit requires research and planning, so you can establish what your goods and services are worth, and then have the entrepreneurial conviction to price to earn a profit on purpose and without apology. to do this, there are three things you must know at all times: your cost per unit of goods or service; the maximum price you can charge for that unit and still be competitive in the market

jim paulson with wells capital management and ceo of principle global investors. jim paulson, anything in the last ten sessions or so that is causing your well telegraphed optimism to get shaken? >> i get nervous just like everyone else. isi think the understood toe, i think the recovery of the united states is broadening. it's showing up in many more areas like housing activity doing better, like the job everyone in the first four months of this year for the household numbers, we created 270,000 jobs a month so far this year. so i any it's a broadening recovery with the idea that by the second half of this year, we might get the emerging world going again. so do you want growth in those two areas of the world? i think it's a buying opportunity. >> jim, it sounds like you're almost on the same page. volatility is the name of the game. at the same time, when you've paired the stock declines that we've seen with the decline 234 gold, gold is at a 4-month low. the huge decline in oil. the only thing attracting bonds are ten-year treasuries. >> this hs-tk a set back t

joining us bill stone and jim paulson. guys, good to have both of you back.to a lot of data, we'll have jobs on friday. but longer term over the next few week and months, it will be about europe. you're consistently said that greece can be dealt with in sort of a chronic problem kind of way. does anything about the last week or two and some of the added volatility in europe make you change your view? >> i still think that's where it's at. greece may well leave the eurozone at some point. but my gosh, they've had more than two years to think about how to do that if they want to do that. both greece and the other european officials. so even if they do, i don't know if it's going to be that big of a market event. i find it interesting how many times has europe flared, the new, over the last 2 1/2 years and every time the market goes down and people say sell, the market goes on to new highs. how many times are investors going to be convinced to sell because of euro news when every time it's gone on to new highs? it's actually been a good time to buy and i suggest

. >> jim paulson. >> hank paulsen. >> i thought you were pat paulson. >> amazing how you steered the you caught that one right. >> you've given us the bullish case. what's the one thing that you do worry about? >> i think if we -- the one thing i worry about longer term is inflation. i'd like to see the fed -- i think inflation is our biggest risk down the road. if we keep inflation relatively contained over the next few years, we're en route to a long-term recovery. if we get inflation get out of control, we're going to

jim paulson, thank you very much. >> a great two hours. >> thank you very, very much. >> make sure you join us tomorrow. >>> good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with melissa lee and david faber live at the new york stock exchange. jim cramer has the week off. let's take a look at futures. that claims number that we've got this morning, not too bad. 365, a little bit below the estimates. basically flattish action here in the states. a lot of attention being paid to the ecb, of course, in europe, holding steady at 1%. spanish auction going okay, selling above the maximum target, although some of the yields in spain were a little higher this morning. >> we begin with the markets. the countdown is on for the jobs report tomorrow. will the report be fodder for the q.e. 3 argument? >> a mixed bag for retail sales in april. limited racking up another strong month. costco missing for the second month in a row. >> and general motors beats expectations with its earnings, underscoring strength in the core north america operations but highlighting weaknes