if 50 million of those got sold, that's roughly a third of what we have out there maria. >> kayla tausche, thank you so much. we'll keep following that. we have 45 minutes until the closing bell sounds for the day. >> you think we're finished? we're just getting started. >>> coming up, gross overstatement? the head of pimco says stocks are dead. what is the ceo of janis say? and taking ryan to task. peter orzag says the budget is akin to a doctor amputating a healing arm. sound harsh? wait until you hear what he thinks about the budget plan? we break down the real effect the looming fiscal cliff will have on families across network. network. if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application s

back to you. >> all right, kayla tausche. kayla, thank you. >> isaac seems to be keeping itself together, somehow, even though it has already made landfall. it's still a pretty significant storm. >> but it has weakened dramatically overnight. in fact, the winds are about half of what they were yesterday morning at this time. they're down to around 40 miles an hour for the peak gusts. yes, yesterday morning we had 80-mile-an-hour gusts, and now the heaviest rains are in mississippi. and you can see, thankfully, much of the rain has pulled north of new orleans and they have had some tremendous amounts of rain. in fact, in new orleans, they had over ten inches of rain at the airport there. and in southeastern louisiana, gretna, louisiana, almost 19 inches of rain. meanwhile, other parts of louisiana, anywhere from about seven to ten inches of rain. and unfortunately now, a lot of that heavy rain is going to be into mississippi. here are the rainfall estimates for today and tomorrow. and up into arkansas as well in high amounts ev

for more on that and the rest of the news before the bell we turn to kayla tausche. good morning. >> hi, good morning. we have futures in the stock market that are higher after stocks faded on monday, lazy summer day on wall street with the lightest trading volume for a full market session this year. investors may be waiting for big events this week including the all-important speech by ben bernanke on friday. we get data today on home prices and consumer confidence. the dow slipping to 13,124, the nasdaq edged up 3 to 3073. we could see the higher prices at the pump in the next few weeks. gas prices are likely to tick higher once tropical storm isaac which is expected to become a hurricane today, passes through the gulf of mexico. the storm could prompt the closure up to 12 gulf coast refineries, gas prices could go up 10 cents or more depending on damage. the refineries produce about 22% of the nation's gas supply. we're not out of the wood on prices yet. >> thank you for the update. >> meteorologist christina loren joining us on set to talk about a warm-up today.

. >> kayla tausche, thank you. let us trade this. mike murphy. >> i think when you look at this news, brian, we were short nasdaq right after the facebook ipo because we believed they did have a lot of questions to answer and we thought the market was not going to like the answers that it got. when you see news like this out today, and then you look at the stock's reaction, it is trading down awe few pennies and actually been in this 22, $23 range for just about since the facebook ipo came out, so we pulled our short off. we're no longer short nasdaq. i still think there is a lot more to be told about how they handled the facebook ipo. >> i think it is interesting. if they can get the facebook issue behind them which is a big if, and i suspect they will probably have to pay out more. they started off by offering 20 million. now it is a little over 60 million. maybe it is more. if they can get this behind them, they're growing single-digit operating income, double-digit earnings growth. they have a lot of excess cash, and they just bo

kayla tausche is working hard on the story for what's next but first mary thompson at knight hq in jersey city for us. mary? >> reporter: hey there, sue. earlier this morning we were trying to talk to the employees. most said they could pn't talk the press. she said cnbc get a life and want you to know that snooiknig a great firm and said that the company would find a solution to its problems. now, of course, fueling hopes that a solution would be found is a report earlier today by "the wall street journal" the company secured a line of credit to tide it over through today. the line needed is a software glitch on wednesday caused millions of bad trades and a $440 million loss for knight. not to mention the hundreds of millions of dollars lost by shareholders. now, news of the credit line, though, failed to appease a number of big clients like fidelity, e-trade and vanguard sending the retail orders or typically send the orders through knight. fidelity declining comment to cnbc reportedly routing trades around knight. e-trade and vanguard telling cnbc they're staying away for the moment. f

we turn to kayla tausche live at cnbc for all of the news before the bell.ood morning. >> good morning. stock futures this morning are lower after stocks posted mild gains wednesday, markets started pushing higher just before the release of the fed's latest beige book report which found the economy is gradually expanding in different regions of the country. analysts say that probably means while the economy is growing it's not recovering well enough to stop the fed from launching another round of stimulus programs. we get data on unemployment and personal and income and spending, the dow rising 4 points to 13,107, the nasdaq also up 4 to 3081. tropical storm isaac is causing more pain for drivers at the pump. the national average after gallon of gas was nearly 5 cents wednesday to $3.80 t biggest one-day jump in 18 months. the storm shut off nearly a million barrels a day from gulf coast refiners but the biggest spike came in midwestern states like illinois and indiana, that's because shell had to close a pipeline that delivers crude from louisiana to refine

we turn to kayla tausche. good morning. >> good morning. there's always a story with apple but we're going to start with the stock futures, higher after stocks fell sharply thursday, the dow lost its gains for the month of august and the nasdaq had its worst day 18 month on investor jitters over europe and ahead of a key speech by ben bernanke later this morning. he's expected to acknowledge that the fed is ready to take action to stimulate this economy but may not offer many more clues ahead of the fed's next meeting in a few weeks. data today on manufacturing, consumer sentiment and factory orders with the dow dropping. the nasdaq losing 32 to 3048. apple is reportedly set to unveil the new iphone 5 in about two weeks but there may be issues getting it to stores. reports say sharp has yet to produce the screens snapping a potential supply problem. sharp is one of three asian suppliers that will make the screens for the iphone 5. everyone wants this so hopefully they can get it rolled out. >> kay la, thanks so much. >> great christmas gift

kayla tausche reported that investors unloaded 50 million shares. partners can make their own decision whether to hold or sell the stock. excel owned 140 million shares. >>> tale of two retailers. gap had strong sales in north america. parent of the gap old navy and banana republic is raising their full year outlook. and aeropostale is cutting its third quarter outlook citing a soft start to the back to school season. shares today in frankfurt, gap up and aeropostale down 1%. >>> a bidding war in singapore ranges on. heineken is in to boost its offer for apb. new offer would be conditional. thai bench is the rival to heineken. they have no comments to add. >>> japan's sharp jumps as much as 13%. taiwanese electronics interest wants to jump its share holding to 20%. >>> and shares of samsung have been punished today as the tech giant's trial is heating up. >> the entire main kospi here in seoul dragged lower by samsung electronics which fell 3.7% as foreign investors unloaded shares after they hit a three month high in the previous session and invest

kayla tausche has the latest. >> standardchartered setting with the new york department of financial services. it's the largest fine by a single regulator by breeched sanctions. they reached an agreement that the transactions in breech of u.s. clearing law totalled $250 billion. that's a fig that the bank had previously contested. there are also regulatory implications here. a state monitor will be implanted there for two years and on a permanent basis they must bulk up risk management where it clears up $200 billion daily. it has been a multiyear investigation, one brought to the feds by the bank itself in january of 2010 according to a person familiar with the matter, and a coordinated settlement had been the ideal joust come. last week's charges beat any deal reached among federal regulators like the treasury, and the department of justice. any deal there is still outstanding and according to my sources not imminent. they helped spear ahead in similar charges in recent years. it's idea federal regulators and we're waiting to see what rest of the story is. >> so storm, when we see

let's get to kayla tausche. >> a source close to the libor case says that eric schniderman issued subpoenas to a number of banks. other banks could be involved in this state examination. they have fined barclays for this issue abroad. we'll have more on this as we get more confer rations, but the state ag's office -- >> in the final stretch of trading for the day with a market holding on to gains. cisco is a name we're watching closely. >>> don't go away, we're just getting started on this special edition, jam packed of "closing bell." >>> coming up, a bevy of market movers, first richard fisher talks stimulus and what he thinks about fed basher paul ryan. then cisco ceo john chambers weighs in on earnings. plus, network wide coverage of this year's historic and devastating drought. and, look who is back. can captain kirk help priceline stock get back to the stars? [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having

quarters, bob pisani is the resident expert on the man verses someone debate, and let's start with kayla tausche with the details. >> knight said they received a line of credit, but not who it's from and what it's for. jpmorgan which is said to have pulled knight's credit is not behind this current deal. any credit line is good news for the firm since they need financing and it need it's in two parts. it needed a line of credit for regulatory capital. tdameritrade will do orders through them again. the money is due monday when the trade settles for $440 million. so can knight get the cash? it's likely easier to get a buyout. right now bidders for knight for parts and the whole of the company are circling as it approaches this key deadline. while strategic parties have expressed interest, a deal with private equity could be more feasible. but either way, auctionstivi activity is bullish. big blocks of knight shows that the firm will survive. we'll answer that question shortly but for now it seems like people are still betting on knight. >> thank you kayla, the mood of course has been pretty sombe

kayla tausche joins us. good morning. >> good morning, scott.in the markets stock futures are lower after mild gains wednesday, markets started pushing higher just before the release of the feds report which found the economy is expanding in different regions of the country. analysts say that probably means while the economy is growing it's not recovering well enough to stop the fed from launching a round of stimulus programs. the dow rising 4 points to 13,107 and the nasdaq up 4 to 3081. it's the end of an era, sears is being kicked out of the s&p 500 index after the close of trading next tuesday. sears ro buck was one of the original members of the s&p in 1957 thoxt the stock is not exactly the same company. after emerging front bankruptcy kmart caught sears. the number of shares regular investors can buy and sell has been below s&p's 50% threshold for a long time. back to you. >> thank you much. president obama melted down a small corner of the internet when he logged on to the website redding and told users they could ask him anything which

cnbc's kayla tausche is here to help. >> good to see you, lester. >> let's start with gas prices. last year we thought it was the highest ever, the average $3.59 a gallon, now it's $3.72. >> it's a role reversal because economists say we'll go down by the end of the year, expecting $3 on average, but a series of unexpected events, like fires at refineries which make oil into gasoline for us to drive has meant that instead of prices coming down in the fall, they're actually going up. and as we see from that national average, they are climbing. a month ago they were $3.43 a gallon. now economists expect $4 a gallon by the end of the year. >> right, and you can only cut back driving so much. you can hold off the vacation, but we're hitting a season now, people who need to drive more, right? >> i think the answer is carpooling. you can't cut back on driving your kids to school because we're entering a season where driving is a necessity. you can't really get around it. you're going to have to get creative with your solutions

. >>> let's get more breaking news can kayla tausche. >> thank you. we have four new boards of bank of america. four existing directors stepping down next spring. sharon allen, the former chairman of deloit. the former chairman and chief executive of hospital company hca. linda hudson of bae systems and david yosk, former ceo. on this appointment, the current chairman saying bank of america shareholders will benefit of the global perspectives and diverse insights of these leaders. the ceo moynihan saying the management team will benefit from these addition of directors and their unique skills and leadership qualities. we have four new directors coming on to the board of bank of america. simon? >> thank you very much. >>> quite a lot to get through. let's return to where we started the show with the news of facebook on the west coast. kenny pulcari is with me. you're not a fan of facebook but equally not as critical of peter thiel selling snout. >> he made his investment. he watches it to fruition and decided to move on. i don't care that he's on the b

i'm kayla tausche. tree house foods getting an upgrade of citigroup to a bye. treehouse producing its own k-cups, the single serve coffee pods and green mountain coffee rosters have a patent. that's how they made their name and up on september 16th. see how the shares reacting accordingly. simon? >> thank you. >>> keeping a close eye on apple shares after winning the lawsuit against samsung late on friday. the jury awarding apple more than $1 billion in damages and may be the start. the stock slightly higher than that and still up on today's session. jon fortt is covering the fallout. jon, i guess we can figure out what means immediately for apple but what about the big players in the space? >> reporter: well, simon, talk about samsung first. a piece in the korea times major english language daily there saying executives are at shock an didn't expect it to go so badly for them and overall might not be that bad because the phones in the suit are not the major sellers for samsung right now and through modifications of software they can keep the more popular phone

kayla tausche has the latest. >> the idea came to him in the bathtub and gave the bank ceo moynihan a day to decide whether he would guarantee upside for the oracle of omaha. first 50,000 shares of preferred cumulative equity at $100,000 apiece. worth $5 billion total and a 6% dividend. but then just for kicks buffett gets additional $700 million warrants he can convert to stocks any time in the next 10 years. now, in the last year, buffett collected around $300 million on the stock dividend alone. the warrants considering the current price of roughly $8.20 a share, in the worth a total of roughly $700 million for that gain there. and if he cashed it out now, he'd get a $250 million premium on that preferred equity, as well. giving you a round total for the investment above $11 billion. now, according to second quarter filings they had a carrying value of $18.6 billion for all its fixed income investments and similar injections at goldman sacks and ge and first half of 2012, $1.9 billion in investment income and that b of a dividend paid quarterly and paper gains of $1.2 billion in ju

. >>> kayla tausche has a market flash. >> we're looking at shares of wirehouser up better than 1% today, the company getting a mention in barons over the weekend saying if there is a big housing recovery weyerhaeuser -- again bullish on housing recovery. real gains are year to date. take a look at shares up better than 31%. michelle? >>> let's trade this right now. stephanie, what do you think? any derivative plays? >> we own them. we were buying them at $16 and 18 tl$1 $18. we've had a nice run. on an nav basis trading at a 25% discount. what's key here their payout ratio is much lower than its peer group. they converted to a reit much later than its peer group. i think their dividend goes higher. i think the stock can work into the upper 20s. i'm not chasing it here. >> mr. new world? >> i agree with stephanie. continues to work well. also louisiana pacific. lpx. also some names i know guys mentioned in the past. home depot, lowe's. i don't think you go directly, though, to the home builders. new world. you're unbelievable. >> what do you mean? >> since you mentioned amazon, let me po

joining me to do that is my colleague kayla tausche and let's set it up for us.these two individuals are married and in addition to that, the person who brought this to the board's attention was the woman's ex-boyfriend who has a criminal record. kayla, what do you make of this? >> i think the board did the right thing, sue. they're faced with a tough decision. the fact that the boyfriend was willing to take it outside meant that the potential press damage ahead of an ipo could have been huge. that being said, i don't think there's cause to worry for potential shareholders because of the smell test. we remember the former ceo of hp, two big factors against him. the challenge was that there were allegations of sexual harassment and the relationship was consensual and it was an affair. he was married. if it's consensual and single, let two people have their fun. >> stacy, do you agree? i mean, there's no indication she was a direct report to him and in addition to that, we're all working so much more than we ever before and neither one of them was married at the ti

kayla tausche is back at hq with more on this. >> i'm hearing anthony jenkins checks all the boxes toill as bar icalclays chief exe. my sources say the board met its september 1st deadline to have that new executive in place. they gave themselves roughly two months. while the board had been reviewing external and internal candidates with equal weight, they were seeking to satisfy uk regulators by ensuring two characteristics. first, it would be someone british. second, it would be someone without ties to investment banking, unlike barclay's previous two ceo. salary 1.2 million pounds sterling with caps for 2.3 million pounds for cash bonus and over 4 million for deferred compensation. he began his career at barclay 30 years ago and returned six years ago to head u up barclays' credit card business. that core business is one that jenkins channels in his memo to employees this morning. saying barclays, quote, must become the go-to bank in the eyes of all our customers and clients. the bank they naturally go to when they want to do banking business. getting there, jenkins writes, will re

kayla tausche has this deal. >> simon, wouldn't you buy in if you sold it at $41 a share?n either side would be happy to see the end of the road here. many investors telling me that they expect an announcement within the next ten days even. the saga first started in 2010 when they valued a deal at 41 bucks a share. the stocks up sharply since then. even though avis dropped out and hertz withdrew the formal offer late last year. it's been a lengthy review at the trade commission over whether combination would threaten competition and pricing. the sale of the advantage unit which is said to be bought by you save between hertz and dtg in certain areas. hertz had an option to put the ftc on a 30-day clock to force its hand on a decision within that time frame but my sources say hertz decided against doing that. and like most companies and government agencies at this time of year, a few of the necessary ftc commissioners are out on vacation. the companies, though, are optimistic for an outcome. either way, it leaves investors hopeful that it's an eye for a deal. companies reach

kayla tausche reports venture capital firm accel partners unloaded 50 million shares worth a billion dollars. those limited partners can make their own decision whether to hold or sell the stock. accel owned more than 144 -- >> they were one of the early, early, early investors. if you were goldman sachs you would be almost break even. >> far be it for me to -- i don't -- i don't care where stocks go in general. i don't care where facebook goes. but worth 42 billion now. in the past amateur investors will see a stock that goes down 50% and say wow this is cheap, i want to buy it and they catch a falling nifr, they think they see something and amateur investors a lot of times on its way down to much lower prices. i wonder if pros, who bought into facebook the other day. >> if i rember correctly george soros bought in. >> cohen. >> mr. cohen. >> see they are smart. if this thing is -- >> we don't know when they bought in. >> but if it goes to that, some of these valuation say maybe it's fair at 13. 42 billion, what is that like six alcoas? >> you think it's a 20 billion company? >> i h

let's go to kayla tausche. >> good morning. the congressional budget office says it if doesn't avoid the fiscal country cliff this year, it could be heading for a recession next year. >> and the anchorman threw to the reporter with a proposal. >> going over to astrid. maybe we can kanoodle. >> we're not going to be kanoodle. >> oh, i thought we meant chat. >> awkward. >> i love astrid. she's like you know what we're not going to be doing? >> shut it down! >> don't you guys try to kanoodling. >> it not chat. no chatting. >> as opposed to noodles. i like noodles. let's show you what we've got. in the southwest it has been raining like crazy. yesterday las vegas picked up its second wettest day, 1 3/4 inch of rain. more monsoonal moisture coming on in. that's going to mean anywhere from 1 to 3 >> mostly sunny skies on this thursday. we're in the low to mid 80's towards the afternoon. >> and that's your latest weather. savannah? >> thank you. an investigation is under way in maryland to determine what caused a deadly train derailme

cnbc's kayla tausch is at the new york stock exchange. good morning, kayla. >> reporter: good morning. investors helping edge the stock market to its highest point in five years, despite the fact that many trading floors like the ones here at the new york stock exchange remain sparse during the dog days of summer. investors today expect the announcement of a $7 billion merger of two giant health care providers to provide a boost on wall street. natalie. >> kayla tausch at the new york stock exchange, thank you. >>> nasa's curiosity rover getting down to business on mars this morning as it zaps laser pulses at a rock making atoms m atoms glow into plasma. scientists are analyzing the light to find out what elements are in those red rocks. >>> a heart-stopping video from volvo world record holder skyliner fakes her girl on the wire act on the road literally. mere seconds to make it across the rope strung between two trucks speeding down the highway before a double barreled tunnel snaps the cord. as you see in the nick of time she makes it. p

kayla tausche has more on the story. kayla?cky, it's interesting to see a deal of this size, and what appears to be the biggest transaction of this kind in at least the last two years, since dodd-frank was introduced to the current financial lexicon. if you look at where hudson city was performing, its cost of funding itself was higher than its own return on equity. this will be an important point for bank consolidation going forward and hudson city just found itself at a point where it said we need to lower operating costs and figure out how to make this more streamlined and more efficient in the current regulatory environment. of course we saw that this is a cash and stock deal by m&t and if you see m&t shares go up, this could be an important sign for the industry because that will bring the overall transaction value for this transaction specifically up but it will also mean that the industry recognizes that this is a good deal ultimately for the sector and there will be more consolidation. i will note the only sticking poin

kayla tausche with the very latest.orld of cable here in the united states, but it might be losing its core in china according to some. how will apple be affected by their popularity if it wanes. we'll discuss that next on cnbc. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forsiness.com. ♪ ha ha! good afternoon. chase sapphire. (push button tone) this is stacy from springfield. oh whoa. hello? yes. i didn't realize i'd be talking to an actual person. you don't need to press "0," i'm here. reach a person, not a prompt whenever you call chase sapphire. get two times the points on dining in restaurants with chase sapphire preferred. >>> apple may be a tech powerhouse here in the u.s. could it be slowly losing its appeal in china. one analyst thinks so. the technology strategist at ubs has a buy rating and a $740 price target on apple. that's almost like blasphemy to say apple is losing its cool in china. you point some reasons, some are structural. can you go through some of

kayla tausche is joining us. >> it was just yesterday that knight actually disclosed how big the lossmillion which now with its market gap in the $200 million has stwoebld size and double of what the firm is worth right now. some analysts say it could affect $540 million. it takes into account its trading technology which is proprietary to knight we maid it capture a quarter of the trading retail. where we are right now is full auction of the company kicked off last night. sander o'neal is leading it directly. there are reports of involvement by goldman sachs potentially assisting in the advisory effort. my sources say their role is unclear. any bank that is potentially participating in this auction can't also be an advisor in a sale as it work out like this. goldman, jpmorgan, which also incidentally was bidding on mf global during its final days as well, maybe bank of america could be banks that participate. this is a time of intense regulatory scrutiny for the bank. do you want to pick up a firm where you don't have enough time to do a due diligence on a larger loss or trading glit

kayla tausche has the latest on that deal. >> kelly, a conference call just getting under way to walkof this deal which is the largest regional bank merger since the recession. talks were escalating over the weekend for a deal that valued midwest city bancorp at $7.22 per share. but by the looks of both stocks today, that's a merger the market believes is the right course of action given the political and yield landscape of banks. but because of the structure of the bank, if m & t rises, that means hudson city is rising as well. hudson city had a tough time rising from the recession. the percentage of its overall loan base turned sour. that changed with the recession and its cost to fund itself rose at a higher cliff, a key part of this deal. it's also the case for many of the smaller regional banks like hcbk, the cost of operating becoming increasingly expensive. the industry players i speak to think this is an inflection point for bank deals. we hadn't seen much activity in this sector besides european banks. banks in the u.s. were paralyzed by the uncertainty over the regulatory la

kayla tausche has it back at headquarters. >> we're watching shars of pvh soaring to levels not seenent public in 1968. up nearly 6% after blowout earnings after the bell yesterday. the ceo saying on a conference call this morning back to school across all sessionments looking great. those segments being calvin klein, izod and tommy hilfiger to name a few. third quarter could look even better for pvh. >>> energy markets, of course, keeping a very close eye on tropical storm isaac. let's get back out to sharon epperson at the nymex with the latest. >> kelly, we were talking to energy analyst andy lipow a few moments ago. he anticipates though we have not seen a total shutdown in refining capacity there in the gulf we're going to see pretty much that happen over the next 24 hours or so. we're talking about 2.4 million barrels a day of refining capacity in the new orleans, baton rouge area. that will probably be down at least at reduced processing rates for at least a week or so. even after the storm passes. and although it may not be nearly katrina's strength, it could certainly have a

here is kayla tausche. >> brian, taking a look at sony, the company reporting a record loss for its firstmuch better, posted an operating profit but much worse than analysts had expected. they're also taking a lot of restructuring costs, unclear how much longer that restructuring under the new ceo will take. sony shares down nearly 9% today. melissa? >> thank you so much. the nightmare heard all around the street. a panel of top-ranked strategists joining us to help through yesterday's big trading glitch and what this could mean for investor confidence. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense. people have doubts about taking aspirin for pain.