our friday market monitor guest is richard steinberg, president of steinberg global asset management. on the economic calendar: monday, we'll see june construction spending. tuesday, june reports on personal income and pending home sales. wednesday, we'll see june factory orders. thursday, weekly jobless claims. and friday, july's employment report is released. our guest market monitor this week thinks the stage is set for a rebound in the u.s. economy, and investors should buy accordingly. he's robert stovall, managing director and strategist at wood asset management. >> thank you, jeff. thanks for having me. >> you know, the dow has gained about 40%, in not quite the last five months or so. does this rally still have legs? can we move higher? >> i think so. the rally has been surprisingly consistent. we had a down dip in early july, but july was a very good month, up usually almost 20%. and so i think we can expect to bump along the way, but i think we're going to move from a cyclical to a secular bull market, the longer term bull market, as time goes on. >> jeff: you think the econ

. >> in the alzheimer's study group and the alzheimer's solution group, which michelle steinberg leadshree nobel prize winners and other nearest scientists who have told us that they believe if we put the right investment in a -- and other scientists who believe they have told us that weç could have a cure between 2020 and 2025. there is a cost of $20 trillion to the government between now and 2050, an enormously painful also for every family involvgdì+ it is also a big cost to private families. so if we could have a right program and get a breakthrough, we might be able to save $9 or $10 trillion. greta: obviously, i am hunza a little bit on the fact that bill that is so profoundly important -- i am obviously a little bit hung up on that fact. do they feel any sort of moral responsibility to see what is in that bill? >> no. i think the disgrace for small of passing $787 billion of a spending bill without reading it, followed by -- remember, on energy tax, they bought votes in last night and submitted a 300- page amendment at 3:00 in the morning and voted on it at 4:00 in the afternoo

since the bonuses were promised long before steinberg took his post last month. steinberg's job is to oversee compensation of seven firms in total that have received huge bailout. a job too little, too late. juliet: he came to capitol hill and does not plan to state. roland burris will not run for another term next year. he is expected to make a formal announcement later today. first he was appointed to fill the senate seats that want to -- along -- belongs to obama. he was appointed by blagojevich, before that governor was indicted for selling papers. jon: a third attempt to get the shovel up. two previous launches had to be scrubbed because of a fuel leak. there is still a chance that the florida weather will not cooperate. juliet: hundreds of thousands of people are being relocated after a powerful earthquake hit southwestern china. it killed at least one person and left hundreds hurt. the chinese government has ordered thousands of tents and relief supplies with region and are also do it our full at the box, the latest won a 5.2. -- they are looking at afters

steinberg who took the insurance proceeds of that and that allowed him to play the role of a multimillionaire, speculator, benefactor of the working school and art maker. is that correct? do you recall that transaction? >> i'm certainly familiar with the company. i wasn't familiar with the work and school. >> subsequently that company defaulted on bonds and bank debt your and had chosen a federal regulator of its own choice because it was a holding company. how would you say the affect of what happened there with that particular company, is that a failing of the state regulation, state to state wax would that have occurred if we had a federal regulator in place? do you see any difference? >> the unfortunate reality in any capitalist economy is that companies will fail. companies, insurance companies led by individuals with ethical or a lack of ethics are companies that are more likely to encounter cash flow problems, and ultimately suffer the demise, or he denies demise of similar to alliance. a federal regulator would not have assisted or prevented that solution. i'm not a lawyer with a hold

senate president steinberg acknowledged the cuts are painful for him but given the financial crisis he'sed them from complete elimination. >> we did make some cuts but they weren't nearly as bad as they could have been. i have the old can i sleep with myself test at night. can i sleep with what i did. >> reporter: the vote is scheduled for thursday. democrats have two days to decide whether they have the stomach to change california's safety net. >> announcer: this is abc 7 news at 6. >> california lawmakers are banking on a very big economic recovery to bail the state out of its financial mess. >> the budget deal struck in sacramento last night makes up a $26 billion deficit through $15 billion in spending cuts and $ 11 billion in borrowing and accounting gimmicks, for example, collecting some of next year's taxes this year and paying some of this year's bills next year. and it means another fee increase for students in california state university system. the system took measures to close a shortfall of more than half a billion dollars today. >> reporter: cal state university students p

she stopped by deputy steinbergs meeting with the chinese deputy foreign minister.ing over to the nsc this afternoon for a small group meeting. a few words on the dramatic developments over the weekend with oas. as you know, on july 4, the u.s. joined other oas member states in unanimously deciding to suspend honduras from participating. our goal remains the restoration the democratic order in honduras. we renew our call on all political and social actors in honduras to find a peaceful solution to this crisis we regret the necessity of this measure. we look forward to the day when circumstances will allow the measure to be lifted and honduras is' participation resound. this suspension does not mean the end of oas diplomatic initiatives to resolve the situation. it does not relate honduras of its legal obligation to its organization, particularly for respect to human rights and fundamental freedoms. we deplore the use of force against demonstrators in recent days. we call upon the defect to regime and all actors in honduras to refrain from all acts of violence we wan

i mentioned as a the book from steinberg and campbell. people may have read it i will give you my summary version and five seconds. it is what i refer to as the three stages of transition. the first is both sides a one to have the smoothest transition never the incoming say we hit the ground running the ongoing says we will not the dropped the baton and handed off cleanly than human beings get involved in the process broke and it gets more complicated and the second stage is the outgoing tide say we want to describe the policy we have developed in the reason is because we have learned through hard experience these policies work and it is not partisan. we're not trying, yes, the incoming guys so you may think this is our prize pig but we think it is a pig and it goes into the trash. by now of the third stage which is the incoming team saying this is more screwed up and we thought. it will take us four or eight or 12 years to dig out of the disaster hour predecessors created in the outgoing guy say we cannot believe this is the team that su

and franklin steinberg, san jose, california, 100 years old today. o say can you see.i think that's a nice one, too. god bless. where's the music? recue the tape. we have narcissa jackson. would you all hum around here? i'm missings music. newport, arkansas. 100. known by all as nani. that's it, that's all. now back to meredith in san antonio. >> thank you very much, willard. i'm actually here in new york. coming up next, how to turn lemons into lemonade. >>> we're back at 8:36. this morning on "today's kitchen," we're back to basics. we're talking about lemons. they provide one of the great flavors, used in all kinds of cooking, and donatella knows the secret of this colorful citrus. donatella, good morning. >> you make it sound so exciting. >> it is exciting. they really can add to a recipe. >> i know. and they're gorgeous. and there are 100 different things you can do with them. you don't have to just make lemonade. >> most people think there are lemons and lemons. you've got a meyer lemon. >> yeah, these are the best. these are regular lemons. there's nothing wrong

steinberg did and the recent figures support that. the latest report out of the ecb says that out of the 442 billion euros that were flushed into the money market last weeng, 35 were packed back at the ecb. that can't be the idea of these liquidity injections. chloe, what sup in asia? >> sylvia, great to see you again. a lot of directionless trade out here in asia, not surprising given that a lot of investors will be looking to what happens tonight on wall street, plus the earnings numbers kicking off with alcoa later this week. the nikkei pulling back 1.4%. we've got the yen level pressuring some of these exporter stocks. and along with shipping stocks, of course, the battlic dry index pulling back 4%. in south korea, despite north korea firing off seven ballistic missiles over the weekend, the market showed a lot of resilience, as well. samsung electronics, of course, managing to give that market plenty of support. in china, the interesting thing is the shanghai composite now hitting a fresh 13-month high. we've been renewing that v

but she was overruled by the obama administration and insisted that he had james steinberg and she lost the ability to appoint ambassadorships which is usually the secretary of state prerequisi prerequisite. she wanted someone else in the japanese post and she was upset with an obama fundraiser. between the curtailment, she's feeling as if she's been boxed out. >> is she happy she took the job? >> it's hard to say. i would say another six months will answer that question. i think she's finding the job immensely interesting. she loves to chew on that foreign policy. she adores it. but i think she's a big leader herself and she has really taken a position where i call her obama's other wife. she's playing backup to him. i think she might find that frustrating. >> always nice to at a to youk from the dailybeast.com. if you want to look at her bl, some people like to pretend... a flood could never happen to them... and that their homeowners insurance... protects them. it doesn't. stop pretending. it can happen to you. protect your home with flood insurance. call the number on your screen...

>> right now, i am aware of a meeting that he had with the deputy secretary steinberg, assistant secretarynd as i said, the secretary also dropped by about one. he also has a meeting with -- if there are other meetings in this building, we will let you know. >> actually, from the u.s. side, you brought up this other situation. >> i am not aware of that right now. yes? >> a different topic. with president calderon in mexico, they suffered a huge blow. many of the reforms that directly affect the u.s., what is your view on this subject? are you worried with the narco trafficking? >> yes, well, i just know that we are being cooperative with our efforts with president calderon to our shared prosperity, to expand the benefits of democracy and human rights. we worked with him with the o.a.s. in honduras, but we're also concerned about the drug- related violence that threatens the mexican people, but in the specific instance that you referred to, if i can get you more information, i will be happy to. yes? >> the vice president's statement. does this statement indicates that the administration --

and our ranks have included such luminaries as golda my ear, they'll address, steinberg and ruth bader ginsburg. interesting, the american jewish congress allowed women to vote in our perceiving many, many years before the united states allowed women to vote in election. something we've been very proud of. the women's division itself which is a division of american jewish conference has long championed the rights of women to vote they let the boycott of the nazis that they opposed the soviet unions anti-semitism, and they have been leaders of the right of reproductive choice. and that some of you may not know, one of the leaders. throughout all of this, the american jewish conference, women's division has commission on women's equality. i have been a leading voice not just for jewish women but for equal rights for all regardless of race, religion, or national heritage. that is why the historic domination of sonia sotomayor for nomination of the supreme court presents us with no better opportunity to explore the many issues of challenges facing women judges throughout the world. the wom