so how is kleinfeld turning around alcoa? and we know the turn is real as the stock's rallied 5.7% today after reporting a terrific quarter last night on top of a 40% gain just since the year began. for years alcoa has been plagued by the commodity fom of lum nim, and at the same time alcoa has lacked the you poor of innovation and the wonder metal that has been usurped by other materials and alcoa can wait. kleinfeld is tackling both problems at the both time, and aluminum smelting by causing uncompetitive plants and locations where labor is too expensive. that's moved alcoa down the cost curve of the commodities and make the market more competitive even as kleinfeld takes down revenue numbers and listen revenue-obsessed investors and so what? it's nonsense as long as alcoa is doomed to be a second-rate company and alcoa has been a cause and lightweight multimaterial powerhouse. they have new kinds of aluminum that offers superior weight and strength characteristics that allows customers to create lighter aircraft, autos tru

we'll be hearing from alcoa's ceo, klaus kleinfeld after the bell.at, we'll speak to some pros about what to expect and if samsung and philips' earnings are a harbinger of more to come. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. dad: he's our broker. he helps? look after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab. >>> welcome back.

holding ceo klaus kleinfeld in contempt. i needed bullets. i needed ammo. every night i said to people this stock at 8 and 7, it's a buy. tell you to buy it. all right. now what's happened? 100% later alcoa is the most loved materials stock out there. analysts adore klaus' approach to closing expensive plants. the critics who wanted the company to break up, the one who is flame me every day -- how did they get my personal e-mail? oh now they love the finished product and the downstream model. ceo kleinfeld, he was a dope, right? now he's a visionary! except here's the thing. the stock's doubled. the move's already been made. they use the equity offering to pay for the aerospace acquisition so then you can get in a lower price than the 16 bucks. i also wanted to out the clowns who told me to dis kleinfeld and i know all their names. but you know what, i've become in my older age way too jeffersonian to do that. my inner dalai lama would be none too happy. these are all examples of how poorly the market has been doing its job of valuing stocks. unfortunately

claus kleinfeld, ceo of alcoa. nice to have you on the program. good to see you again. first, let me ask you about the air show. a huge event attracting 100,000 visitors next week. what are you expecting from this air show next week? >> this is exciting. and once a year, everybody who is in aerospace comes together, fluctuating between england and paris. last year in paris, this year in farmborough in england. a lot going on. this is an industry, as you said, that's growing. for the u.s., it's very, very important. the largest exporter, 71 billion exports and very well paying jobs that average $10. and a lot of innovation happening here. >> this is really interesting. these jobs require skill sets and that's why they are higher paying. >> exactly. exactly. >> so what are you seeing in that regard in terms of jobs and really where the job creation is happening in the economy right now? >> well, aerospace is certainly a big one. and when you look at where investments are going, and i mean, let's just take all coa. if you look at the last 18 months, what we have announced,

klaus kleinfeld, chairman and ceo of alcoa. >> we'll talk about germany and the world cup in just a little bit. believe me everybody over here in london has been talking about it. we'll ask about that in just a little bit. let me bring in klaus kleinfeld, chairman and ceo of alcoa. very happy not wearing german colors. let's talk about this $1.1 billion deal between you guys and united technologies, pratt & whitney, when you look at the aircraft engines, and the drive for fuel efficiency, where are we on that scale in terms of being able to wring out more mileage fuel efficiency from the aircraft engines? >> i think we're still going to have a lot to go forward. the a380 is just starting and we've got a little bit of dust here. so, the deal we sign today has a whole group of things. we're now moving into the fan blades with aluminum. with very modern aluminum. a new version of aluminum. we are going with our metallurgical solutions where no man has gone before and it helps directly in the efficiency because it's going to be les

alcoa's kleinfeld has been apoint the to the board, bringing the number of directors to 12.urning to microsoft, microsoft announced the largest mass lay f in its company history as new c.e.o. satya nadella tries to remake the software giants -- giant. they say they will eliminate as ny a18 p,000 jobs over the year. more than 12,000 cuts are coming in the newly acquired nokia department. nadella writes this. and for more on what the moves mean for the future, we're joins by mat mcgill wayne from seattle via skype. you know satya nadella. what do you make of these layoffs now? >> i think it's less a focus on layoffs and a lot more on the quote that you just gave. we've heard satya redefine the strategy at a broad level, about platforms and productivity. we started to see a change in the culture and we're really seeing that up here in seattle, too. it's exciting, a much richer focus on looking externally,enter acting with the communities out there, including the open source community. this set of layoffs is really about simplifying, streamlining and helping the company execute

kleinfeld always emphasized that he's got the wing, the fan, the fan is now made with aluminum.ickel. airbus, i remember speaking to jim mcnerney and i said, between you and airbus, on "mad money," he goes not at all, we don't care for each other. okay. >> they make coke and pepsi look like friends. >> yeah. those guys are buds compared to bowing and airbus. and one of the things he's making the point, airbus has a real edge if you don't let xm -- larry kudlow, friend and former partner saying the a corporate giveaway if you're a shareholder for boeing, it's a necessity, some people say, 19% of the business financed. >> shares of citi this morning. we've discussed it. the call has wrapped up. kayla tausche on that call. cfo provided little detail on the settlement with doj. they confirmed 3 billion tax deductible, 3 of the 7. geopolitical tensions eased in june that helped the markets. hits international equities due to ukraine and russia volatility. decreased exposure to russia and ukraine, have 30,000 people in compliance by the end of the year no update on mexico. >> 30,000 c

remember what klaus kleinfeld said. then the biggest and best engine maker reported a number that looked good on the surface but turned out to be disappointing to those who thought the cycle was improving. some one-time gains in there. eighth, the farm cycle. at one time so bountiful. that's just hit a wall. as you'll hear later in the show when we talk to agco's ceo. monsanto, those stocks have been horrendous. last but not least, the transports had been our leaders, right? we always talked about how commerce done with transport has been strong. gangbusters. but this morning's shortfall from united parcel sent a shiver down the spine of anyone who believed commerce was picking up. i remain a believer in u.p.s., but the disappointment was palpable. now, i still believe that most of these cycles are not yet played out. i think most are simply pausing. however, there's just too many of them pausing all at once right now to feel comfortable that the gimmicks and the one-offs can take us ever higher. as terrific as they mig

. >> kleinfeld says aerospace is attractive because airplane back orders can stretch out for years.t month, aloe ya bought a british jet enginemaker for $18.2 billion. at this hour in germany, it is up nearly 2%, as well. now on to the container store which is cutting its full year outlook. it calls a retail funk that is hurting sales growth, even as the company reported the narrower first quarter loss. the chain, which has more than 60 stors in 26 u.s. states went public last november. it has consistently reported higher sales in recent quarters. the same-store sales fell near 1% this past quarter. the ceo said we thought our sluggish sales were because of weather and calendar shifts which started in november and extended into the spring. but we've come to realize it's more than weather and calendar, consistent with so many of our fellow retailers, we are experiencing what he calls a retail funk. he says while consumers are buying homes, cars and big ticket furniture, most retailers are seeing more challenging sales than they had hoped for. they plan to launch a cut tom build store

they've additionally added alcoa ceo clause kleinfeld to the board of director at hp.o becomes chairman. patricia russo, current board member, becomes lead independent director and current alcoa ceo joins the hp board. a lot of big tech movers coming out after the bell. >> all familiar names and with ralph stepping down for health reasons, i guess it is no surprise on that. we have google out now as well? who's got google? josh lipton, what's google look like here? >> bill, let me get you those numbers. google just reporting 6.08. the street was looking for 6.24 on 15.6 billion. paid clicks, the volume of clicks up 25%. that's smack in line with what the street was looking for. cost per click, or cpcs, the amount advertisers are willing to pay, on average, when you click on an ad, down 6%. that's a bit better than the street was looking for. they thought cpcs would be down about 7%. also a management change here. google's chief business officer will be leaving google after almost ten years at the company. more information through this release, bill. i'll bring you head