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month ham eld el-erian joining us for her thoughts after a visit at the beatles center, i hope you enjoyed that. >> it was wonderful. >> are we just on a sugar high? >> i agree with mohamedn's discussion about the sugar high. right now, the major market indices are about halfway between the october 2007 highs and the march 6th, 2009 lows. and we believe there's going to be a w-shape recovery, particularly in the equity markets and we're now on the top end of the second part of the top. >> top of the middle part of the w? >> yes. and we're looking for a 11% retracement on the dow and the s&p -- >> that's pretty exact. >> well, looking for back to 8,000 on the dow which those levels were reached earlier this year nrt second quarter and about the high 800s in the s&p. >> emily, it's bertha here in the states. how troubling is what seems to be a lack of appetite for these huge bond issuances? we're very early on in. we've got another one today and next week we've got three, ten and 30 year. >> it is troubling. it's not extremely troubling, but when you think that the u.s. is on track for a $1.84 trillion deficit by the end of its fiscal year, that's pretty troubling because

mohammed el-erian right? what's your thought? >> well, restriction because i'm standing in your spot, i've got to use props. that's why i have this sucker. but i've also got what i prefer, the energy drink. monster of course is my brand of choice. but here's what's going on here. el-erian's right that the market is on a sugar high, though a lot of doctors will tell you that sugar highs aren't even real, that you don't really get a sugar high, it doesn't even happen. but since i've got two kids, i can tell you, it does happen. they go running around in circles. then all of a sudden it's nothing but tears. we're hoping that doesn't happen with the stock market here.. and i'm thinking that there are so many of us, rick, that are looking for the correction that guy was talking about. and i do believe the fed -- >> it's also all about timing. as every trader knows, you could be logical, nail it. but what if the next five months the market holds up, we get the inventory blowouts, and all of a sudden the consumers aren't there to buy it

we have here is the nation's biggest hedge fund managers, tom styers and pimco's bond boss, mohamed el-erian. between these three, they have trillions of dollars under management. plus, technology, as you know, one of the stars of the summer rally. we've got the ceo of software giant s.a.p. joining us. we'll be asking if his company is seeing corporate spending picking up. and senator kent conrad, who is a point man on health care reform, he's firing back at critics who are accusing him of getting preferential mortgage treatment. he's with you of our special guests this morning as is california governor arnold schwarzenegger's financial adviser. bertha, i'm going to get you back. just wait. >> oh, no. i can't wait to hear what you're going to put in my head. >> i've got to think -- oh, wait! it's a small world after all it's a small world after all ♪ >> oh, no! we'll see you in "squawk box" in just a few minutes. >>> coming up next on this show, we're going to take a look at the day ahead in u.s. trading with michael gurka. stay with us. >>> let's get a look at the day ahead with michael gur

have to worry about it so thinking that we're never going to have any -- >> did you see mohammed el-eri n el-erian's column that said most of the time the jobless numbers are lagging indicators although he says there are sometimes it's not, where it's the leading indicator because it's gotten to the point where it's so out of whack with what people are expecting. >> maybe this is what an elephant feels like. joe biden, the vice president is making the rounds over the weekend. he says the obama add mip administration, in his words, misread how bad it was. but speaking on abc's "ts week," h defended the stimulu do package. >> whave to properly, adequately, transparentlynd effectively spend outhe w $780 -- >> that's yr b. you're inharge of that n.pe >>t is myjob. and i think we're doing it well. if you notice, georg there werether predictions. this was going to be wasteful and we were going to be wasting money. well, that dog hasn't barked yesterday. biden says it's too early to know that -- >> you know, the idea that he said they misread it and they misread how bad of an economy they inherited. but ar