bank of america will pay mbia $1.6 million in cash and take a 5% stake in mbia as well. that stock now up some 42%. scott, back to you. >> all right. josh lipton, thank you. >>> biggest pops and drops. number one, tyson foods. simon, drop it. >> dropping it. miss eed earnings this morning y nine cents. problems with the beef distribution. can they make it up on chick snn. >> cliffs natural? >> cliffs natural, very careful here on the short side because 25% of the flow is short. this is a potential short squeeze. >> dr. j, what do you see on facebook? >> apparently on barron's this is a stock they smoke negatively about this weekend, scott. for that reason as much as anything else, it had a nice move last week. it's giving back a lot of that game going back into the $27 area right now. >> steph, talking about dollar general. >> i'm not quite sure of this stock this morning. i think they're just coming around that there's growth and earnings. that's better than the year and it's not expensive. >>> coming up, from health care to technology, we've got all the big analyst cal

mbia will pay to socgen. the department of financial service of new york. and i'm told that it should bring an end to a long-running saga that has hobbled the process of mbia, and help it achieve a higher credit rating for its municipal bond insurance aspect. that's so the breaking good news on that front. on a totally different note, i'm just coming out of auditorium here, where stanley drunkenmiller made a compelling case against commodities. he thinks that the ten-year supercycle in commodities that people have been talking about is essentially over and now says that we ought to be shorting brazilian currency, south african currency, and especially the australian dollar. he thinks that should be going away, because it's really overvalued and so are commodities prices. and finally, he said a hearty endorsement for google. google is his single biggest holding, and he literally said in the u.s., guys, he cannot think of a better positioned company than google. he thinks it's strong, it owns data, has great po

i think it's a good day for mbia. anytime you can resolve something together with reason and carefully, it's better than resolving it through litigation. litigation goes on and on and on. it is a totally inefficient way of resolving things. and life is too short. and we need to move on. and companies need to get on with their business plans going forward and not get mired in the past. so i think it's a good thing for both companies. >> last question here. of had mention thad this puts mbia in a path forward. does that mean in your view that it has taken off the table the previous fath had been on, which kpo have been this rehab taegs under your department? >> well, look, they're getting $1.7 billion today. they're also getting a credit facility. that takes them out of the realm of insolvency going forward. so i think, life is uncertain. and we'll see where things go in the future. but today is a good day for mbia. and i don't think any one is talking insolvency today. >> kate, you're still around. it's interesting to

the company announced it reached a settlement with bond insurance company mbia.ht now b of a is higher by 5g deal, at one point shares were halted as the markets were trading. bank of america, though, big mover. bmc software has agreed to be sold in a $6.ed billion deal, the investor group led by bain capital and golden gate capital. and take a look at bmc, 45.44. but certainly a stock to watch, kind of a mini merger monday i guess we could call it. i'm not going to call it that because i'm going to get to the floor show at the new york stock exchange, the cme group and, of course, the nymex. ben willis, our good friend, standing by at the new york stock exchange. let's talk about b of a and bia. it was a really kind of interesting deal. they're avoiding litigation, at the same time taking a 5% stake in mbia, ben. did you view this as a market positive or lack of better news elsewhere today? >> truthly, cheryl truthfully, i think we're witnessing investors few and far between. we're switching riders rather than riding the utilities and the defensive issues, we're

mbia provides insurance to the financial services industry.of america will pay $1.5 million in cash and provide mbia with a $500 million credit line. investors recognized the deal was good for both sides and bank of america gained more than 5% leading the dow winners and mbi arose more than 45%. all of the major banks rallied today in a range from about half a percent to more than 2%. >> and speaking of banks, new acquisitions today against two of the nation's biggest for ignoring last year's 49-state settlement to help struggling borrowers by dragging their feet on hundreds of new financing requests. >> bank loans still carried on bank's books are haunting the housing recovery. diana olick explains. >> in new york today state new york stock exchange eric schneiderman accused two of the nation's largest bank, wells fargo and bank of america of reneging on a deal to help millions of troubled borrowers. >> this enforcement action which is the first taken under the settlement is based on 339 individual complaints from new yorkers against these tw

mbia has been seeking damages from bofa for failing to buy back intelligible loans. >>> to stocks, mbiamy fine pg&e 2.25 billion over a gas line explosion from 2010. it's the largest penalty ever imposed by state regulators. the blast, just south of san francisco, destroyed a neighborhood and killed eight people. the ntsb later blamed pg&e's lax -- on public safety. pg&e down 1.4% in frankfurt. >>> the commodity futures trading commission is considering whether bitcoins should be subject to u.s. regulation as a derivative. the cftc commissioner bart chilton has told the cftc they're looking at whether consumers need more protection. in march, bitcoin would be governed by the same money laundering for transfer companies like western union. >> and the californian jury store owner who gave this man to scott london cash and gifts in exchange for inside information has pleaded guilty. brian shore who took tips from london on herbalife. london, who was fired and arrested last month is set to be arraigned next week. >>> as far as european stocks are concerned, ahead of the u.s. open today, we'

mbia's losses from countrywide. may 21st marks a critical day for jamie dimon. shareholders will vote on whether to strip jamie dimon of his chairman title. dimon has held both chairman and ceo titles since 2006. due to the bank's massive trading debacle last year, some parties have pushed for an independent chairman. jp morgan said it endorses dimon. billionaire warren buffett also offered his support for dimon this week. health insurance company cigna is setting up health exchanges in 5 states ahead of the requirements under health care reform. starting october 1st, cigna will sell health insurance in arizona, colorado, florida, tennessee and texas. next year, under the affordable care act, all states will be required to sell healthcare through exchnages so americans have competitive choices. cigna's ceo tells reuters setting up the exchanges won't likely be a top- or bottom-line driver. meals on wheels is facing a crisis. the government-funded program, which sends meals and company to about 25 million americans,

that and mbia. but the stock is up 5% so far today. >> yep. okay.e more chart. >> please do. >> you're going to love this one. mario draghi, president of ecb went off script today. he had a speech and went off the script and reiterated they will cut more rates if need be if the financial situation in europe doesn't get any better. look what the euro did. plunged down to 130.74. we're coming off that low right now. just comments again by mario draghi. he's the rock star in europe right now and he's the guy that moves markets at this point. >> that's a chart that really does tell the story. in terms of the some of the movers you've got merck which i believe is the worst dow stock at this stage. as for the s&p, cliff's natural resources, you know, is a coal mining stock, right? obviously a sector that's been through some -- it's actually today doing pretty well. in fact, it's the best s&p mover today. as for the worst s&p mover, it is tyson foods. so, you know, that is some of the breakdown that we're seeing today in the markets. back with us also on t

i news that mbia had reached an agreement with bank of america. we're also watching one of the best performers on the dow united health care, jpmorgan reinstating coverage on the stock with an overweight rating essentially saying medicare advantage simply growing despite reimbursement cuts, so this is a dig winner today. back to you. melissa: record highs, many are saying to sell in may. but my next guest is advising the opposite. he says there are several reasons investors should be looking to buy. chief u.s. equity strategist at jpmorgan. you say one of the basic reasons is hedge funds are bearish right now, that goes against the position they have been in the last three times we have seen new highs. why is that significant to you? >> first of all thank you for having me. hedge funds are hugely important and rental player in the market. the positioning, the data is usually instructive of the market's direction. in the spring of each of the last three years that the markets top, hedge funds beta at the highest of the year. basically in the longes

mortgage insurers did have a pop today because the thinking was maybe there is a deal for them a la mbia. >> there were big shorts in the past. they are lower-priced stocks. with bank of america deal, people didn't expect bank of america to take that stake in the company. that is what juiced this. it's hard for me to say up 15%, up 45%, buying a stock, i don't think you do that. you wait for some kind of pullback. it might take a couple of weeks for a pullback. >> that's exactly right. until this short interest which stands around 27% into today gets somewhere into the low teens to maybe single digits. this is a stock that can continue to go higher. we talked about it last night. jim cramer has been talking about it for months. rdn at $13 is probably still a buy here. >> the surprising trend precious metal dealers are seeing when it comes to buying physical gold. how one company's technology could be a game-changer in the fight against the most common cancer in american men. all business purchases. so you can capture your receipts, and manage them online with jot, the latest app from ink

yesterday bank of america shares ended up over 5% after the deal with mbia although interestingly that stock was among the strongest of the sector well before we learned about the mbia settlement, but all of the financial, quite strong and we've also got j.p. morgan and an interesting intrigue of what the shareholder base will do in terms of the non-binding proposal from the ceo job which my understanding jamie dimon would be very, very angry about if it were to occur. it wouldn't mean it had to happen, but it would be the voice from shareholders. >> i think some of the problems with the bank his been that there was a worry about mortgage putbacks. >> i think what was interesting is i did not learn of the bank of america settlement until late in the day upon. obviously, i was late to the game and the mbi. i believe radiant is the next to settle. i do think you have nation star mortgage saying mortgage is up big. it is a company, by the way, just so we are clear, does mortgage insurance and has been rolling off the bad. the housing story continues as a major play. >> have you seen core

>> mbia. >> but there was -- allied. >> allied. that's different than knowing what gold is going to do. >> but i don't think he -- i mean, you -- >> for gold? i do. i mean, if i could figure out was coming down, why couldn't he figure it out? >> because i think when you're an investor, you're going to have some hits and you're going to have some misses. >> when he came on the air a couple months ago on apple, it was 500, 600, 700. it depends when you had gotten in. he had gotten into apple about a year earlier inspect. >> i think he gets credit, actually, for helping to spur some of the balance sheet management there. i mean, who knows, they may have had it in the works already. but i do think that public pressure -- >> oh, no, i think that's absolutely right. i think unfortunately, though, shareholders watch him talk about it and got in late. in right. >> thank you. >> thank you. >> let's talk a little bit about -- excuse me, a little bit about global market news this morning. >> that takes forever. >> you read. the bank of englan