morningstar analyst eric jacobson says the fund has an excellent track record and is well managed. "my suspicion is a lot of investors were people who jumped into the fund because it was doing so well before and are now being spooked by volatility. that's not a good reason to buy or sell it, either." the bond funds in general have been hit hard since may, when 10-year treasury note yields hit a low. economic growth around the globe is slowing down. according to the imf's christine lagarde, new risks in the global economy have emerged. among them, the fed's future plans to pull back on stimulus. lagarde claims it's already having a ripple effect on the u.s., china, and brazil. she notes that europe's deepening recession also remains a concern. a new beginning for libor: nyse euronext will take over the administration of libor, the financial industry's benchmark interest rate. libor came into focus after several large banks admitted to roles in manipulating the rate, which is tied to interest rates globally. nyse euronext will take over the responsibilities early next year. tesla is

we talked to morningstar analyst neal dihora, who expects a positive earnings report for the same reasons boeing stock is doing well. "the stock is doing well because the negative issues are sort of behind them. the 787 cost overruns, delays, grounding - it's all behind them. looking forward is delivery on the five-plus years of backlog that they have already booked." dihora was bullish on airbus as well. it too has close to a five-year backlog of orders for new planes. banks owning commodities - it's an issue generating scrutiny, from the public, congress and the federal reserve. in 2003, the fed decided there was little risk in allowing banks to purchase physical commodities such as aluminum and oil. but now critics contend the banks are hoarding commodities, driving up prices and manipulating the market. we turned to lina khan, a policy analyst at the new america foundation, who just published an article on the subject. "i think the average american should at least be very concerned that we currently don't have the capacity to know whether the banks own railroads in this country, wheth

that was morningstar's carr lanphier. if carl ichan wins control of the computer company, it's seen as a setback to micheal dell, who started up the company in his college dorm room. president obama is defending healthcare reform. at a news conference yesterday, the president pointed to a dramatic drop in healthcare costs in states such as california, oregon and washington, where he says the new law is already working. october 1st, all americans will be able to go online and compare prices for medical insurance plans. the president says healthy competiton will continue to drive down rates for consumers. "despite all the evidence that the law is working the way it was supposed to for middle- class americans, republicans in the house of representatives voted - for nearly the 40th time - (laughter) - to dismantle it." republicans contend individuals should get an extra year to prepare for the new healthcare law requiring them to get insurance, similar to the delay the obama administration is giving to businesses. as immigrat

and pier 1's plans to spend 75-million on its stores and for technology, robert johnson of morningstar does not see it nudging g-d-p or unemployment. "yes, some of the equipment and software looks better but it's not robust and a key driver of theat is tech spending." though spending on information technology is up four-percent as compared with two percent last year, some say it needs to be higher. a05 corporate "giving" is expected to grow modestly this year.. a survey from chronicle of philanthropy shows-- donations from corporate america increased 2.7% last year.. to $5.3 billion. only 16 % plan to give more, 6% less and the rest will stay about the same. in a surprise move -- wells fargo topped walmart in charitable giving last year. the bank's donations spiked nearly 48%. until now walmart had been the top giver for 7 years.rounding out the list of the top 5... chevron, goldman sachs and exxon mobile. traders are expecting gains from goldman sachs earnings today. goldman reports in this morning. analysts are expecting increased profits and revenue, despite lower forecasts for its

saying now on a site of the basis that will continue now for ten years or more well it appears from morningstar data that he himself also was smoking his own belly button when he thought he believed that he can't do wrong for thirty years he's been right and ninety percent of pimco assets were in bond funds so listen this article are pretty surprised that he's all in essentially on one asset. well he's front running the fed and that's been the strategy that's worked in other words a fed tells bontemps bill gross by the way we're going to be buying lots of bonds so he buy before the fed does and he makes money from running the fed but he's in a position now where is fund is so big it's like trying to maneuver an oil tanker it can't be done quickly and with julie you know what she puts on the brakes it takes miles and miles and miles but i think we come to a full stop so he can have a difference of opinion on where bonds are going but to get extricate himself from multi hundred billions and trillion dollars of the bonds is not something you can do overnight so he's trapped like so many other peop

problems there have been thirty six filings since two thousand and ten put together with data from morningstar shows twenty one states that are not fiscally sound based on pensions many other cities in america have badly underfunded pension. will be closely watched because michigan's constitution holds across the specifically bans cuts to retiree pensions and benefit payments if michigan is allowed to come to cut payments this could set a precedent for other municipal bankruptcy around the country detroit has been called a huge test kitchen for me in municipal bankruptcy hopefully the fire in the kitchen can be put out before it spreads to the. joining me is our t.v. producer rachel courteous thank you for joining me on this latest daily duel glad to be here we're good talking to troy to let's just launch into this story detroit has become the largest city in the us to file for chapter nine bankruptcy however a recent michigan court ruling raised questions as to whether the bankruptcy will even stand up to court review so rachel if it does succeed for filing into bankruptcy who are the winners

as i said, we have brian over at morningstar. we will get great perspectives on this.'s get to the floor show. a good story. travelers, as well. how does this pertain to what we see on the lower part of our screen? >> the market seems to be overbought and polish. we are seeing a little bit of a bounce. liz: are the metals doing well because gold certainly skyrocketed yesterday? >> down about 150 points so far. these metal stocks have been down. there are a couple things, the nasdaq has not followed the dow and the s&p to new highs. in the longer-term picture, that is a little bit of a concern. sentiment is starting to get more and more enthusiastic. people right now are starting to get polish. liz: right below me, you see the intraday picture. first, they were doing well, then they dropped. now they are climbing back in this last hour of trade. >> this is an earnings story entirely. we have real company stocks. they are coming out in the next couple days. i think that they will have to over perform. >> which ones are affected? caterpillar -- >> well, again, right now g

we're saying now on a second the basis of continue now for ten years or more well it appears from morningstar data that he himself also was smoking his own belly button when he thought he believed that he can't do wrong for thirty years he's been right and ninety percent of pimco assets were in bond funds so alice in this article are pretty surprised that he's all in essentially on one asset. well he's front running the fed and that's been the strategy that's worked in other words the fed tells bond tells bill gross by the way we're going to be buying lots of bonds so he buy before the fed does and he makes money front running the fed but he's in a position now where is fund is so big it's like trying to maneuver an oil tanker it can't be done quickly and with an agile ety you know what she puts on the brakes it takes miles and miles and miles but i think come to a full stop so he can have a difference of opinion on where bombs are going but to get extricate himself from multi hundred billions and trillion dollars in the bonds is not something you can do overnight so he's trapped like so many

let's bring in morningstar analyst adam fleck. what do you make of this short?don't necessarily dis agag. the slowing economic activity is going to hurt goal and it already has. looking longer term. our fair market is $9p and you don't need to be a major bull to be a bull on caterpillar stocks. >> there's three main reasons. the lower mine iing cap x and i has to do with after-market parts and more services and that tends to be with production levels and we don't think the production hovels of goal are going to decline. grow at a slower rate, absolutely and on top of that cat has be a opportunity some of the oems and they have safer operations and finally the mining industry will be down this year but that means caterpillar's other franchises will do well and be more important to the company than ming and a nice engine business tied to oil and gas that you look. >> you raise a really good point. >> a lot of competition world wide and i'm wondering to what degree will cat florida invest money worldwide to keep its market share growing. komatsu the number two play

morningstar analyst brian colello is interested in the hint of some product launches.he big question, what's the new products that apple has up its sleeve that could offset the losses associated with the iphone. another reason we care with apple so much is because of its weighting. without them the future earnings estimate would be 4%, and the s&p tech sector's estimate would be negative 2% instead of negative 5.5%. switching focus to apple suppliers, texas instruments reporting upbeat earnings and take a look at broadcom, ubs analysts telling me shares may be moving lower in response to texas instruments announcement last night that it's licensing its connectivity business to a customer. back over to you, sue. >> very interesting. appreciate it. to the bond market where rick selly is there as usual, and he's tracking the auction -- post-auction. i'm trying to say tracking the action post-auction but it came out backwards toe sake it away. >> you know, backwards or forwards today in the treasury market there isn't a lot of huge action. maybe the most significant issue

joining us from morningstar is rj. rj, is a restaurant problem or a mcdonald's problem? a little bit of both. there is credence to what management was talking about in terms of being a competitive landscape right now. we've seen food costs come in from a year ago. that's led to a lot more promotional activity and aggressive discounting across the board. at the same time, mcdonald's pointed to a lot of new product innovations that they said were meeting or exceeding expectations. at the same time, and they said they were gaining market share, but at the same time, the question is, are other players starting to gain more market share than mcdonald's? so it does become a question, is this something that's for the company specific? a lot of questions raised in today's results. >> it seems like the market's expecting others to gain market share. when i ran a screen this morning of pretty much every restaurant, whether it's fast-casual up to youth's chris, the single-best performing stock was wendy's. >> yeah. >> the doughnut burger or whatever they have. >> yeah, it's -- >> t

with us, paul from morningstar and patrick from mkm partners. good to see you both.oining us. so which retailers are poised, do you think, to capture this back-to-school season? in terms of what you know their specialties are and in terms of the demand out there? paul? >> well, i guess i'd have to go with macy's first, just because they are doing a lot of things -- just regular merchandising things where there's localization, better merchandise, better product. i also think there's been a little bit of bad weather at the beginning of the season. but again, i don't think the consumer is down and out. i know that, you know, some of the macro quick numbers are slowly getting better. so i think macy's is going to be the beneficiary here. unfortunately, the stock, though, has gone up a little more. i've got it slightly overvalued, so if you wanted to bet on an underdog, you have to go to jcpenney, i think. >> patrick, same question to you. who will make the grade this time around, do you think? >> sure, bill. well, within my group, i cover discount retailers. so if you ju

joseph petroof morningstar credit ratings said that using the unsolicited rating program -- quote -- "is not the best use of resources, as we're trying to build oit ou out our ratings plm the s.e.c. commissioner made a strong point. he noted negative unsolicited ratings by a firm -- quote -- "may not be the best way to get business in an issue pay setting." by the time the report was written, it was a 17-g-5 program had produced only one or two ratings. i have said all along that i believe that senator wicker's and my proposal is a good one and the right one and i have continued to believe that more and more as i've thought about it and looked at it in the years now since we wrote the legislation. but i have also said that i'm open to any other meaningful proposals, and i will support any proposal the s.e.c. recommends he that addresses the conflicts of interest in a meaningful way. but the round table made very clear once again that reform is necessary and that the status quo is inadequate to protect american investors, workers and homeowners in the years ahead. deal breaker.com, a

finally, pimco, morningstar reporting the bond fund giant saw outflows of $14.5 billion last month.aller politicians because they didn't name all of them. that's why it's smaller. >> 44 just in one bid rigging case. remember that one? >> the fbi, anyway, we were talking about politicians in jail. since in england. >> give 93 nfl number. >> it's 25 arrests since the super bowl. >> an fbi sting operation invited 44 officials and several rabbis. remember that, mainly for bribery, counterfeiting, money laundering, organ harvesting. >> i remember that. >> they don't mean, they mean kidney. nice. all right, the national federation of independent business out with its latest reading on the economy. nfi small business optimism down in june. joining us is the chief economist at the national federation of independent business and you talk about whatever you want to, bill, have you been on since the employer mandate was, are you allowed to do that? isn't it law? are you allowed to say the law is not the law? can we just say, we'll give an extra year? do you know? can we do that? >> you know, i

i spoke with morningstar's rj hart., he was saying the those was that we would see traction on some product back to you. >>> it's that -- have you had one of the these pretzel bacon cheeseburgers? that sounds -- >> i don't know i haven't had it, kelly. it sounds delicious. i can't imagine that's the reason for any problems. >> i think it will stick around. >>> i'm already getting hungry. carl, david abe faber, they're not the only treasures here with me. we showed you that suitcase earlier, filled with a mysterious treasure. here is what's inside. take a look at that. how many silver bars were deep under water? and how much are they worth? that's coming up next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. n

this is according to alliance and morningstar.to stock funds. where the heck is all the money gone? it's looked like most of it has gone into cash. there was almost $100 billion going into simply deposits in the month of june and into early july. i think that's money on the sidelines that could come in. finally, let me show you an ipo here. one heck of an ipo. phillips 66, oil pipelines. the old spinoff from the company. 19 to 21 priced at 23. now $30. anything having to do with oil and gas infrastructure, paying dividends, anything like that, guys, doing really well today. here is one stock. this is an ipo. >> for once it was fortuitous timing on the ipo. 30%, one of the bigger pops we have seen. >> anybody looking for yield, that's the key with the oil and natural gas pipelines. >> people forget the ten-year is it still at 2.5%. the price of gold coming off its best day in nearly a year. the one and only art cashin will be here to talk about it when we come back. customizable charts, powerful screening tools, and guaranteed 1-se