. >> shares of supervalu in a free fall.s withdrawing it's forecast for the year, suspending its dividend and considering selling all or parts of the company. is this the latest victim of walmart and dollar stores? we have to get to the markets. the futures are moving lower on fears of a global growth slow down one day after the dow and s&p 500 fell for a fifth consecutive session after fed minutes offered no since of more easing near term. we got the euro falling to fresh two year lows below the dollar. crude oil trending below $85 a barrel. jim, this seems to be sort of the culmination of a lot of different growth concerns around the world and also some earnings warnings that are trickling in about lowering the bar. >> i think that there's a wholesale shift going on in the market right now. i'll say it's represented by the buying in merck. a drug that could or could not be imported versus the selling, endless selling in the cummins name. the money isn't leaving the market it's just going to another place and the place it's

take the sorry case of supervalu.y that told us over and over again that it was confident in its dividend and it understood how important it was to shareholders. when stocks go down, yields become larger. hence you get a bigger yield from the division. few stocks in the s&p 500 had a bigger dividend than supervalu going into the session. today we found out what happens when we see this process play out for companies with badder balance sheets and declining foretunes. the dividend gets slashed or in this case totally eliminated. despite all protestations to the contrary. assurances given to me last year by the ceo of comfort with that dispensation of cash directly from the company to you. the ceo when asked on the conference call last night about why the company had eliminated the dividend cited wholistic reasons for the decision, whatever the heck that is. all i can say is it was a mighty bitter pill for shareholders. 30 cents yearly, while not making up for the two-thirds decline in the stock since 2008, did draw in

few stocks had a bigger dividend than supervalu.saw what happens when companies have battered balances sheets and declining forces. they get slashed or in this case totally eliminated. the ceo when asked on the conference call last night about why the company had eliminated the dividend cited holistic reasons for the decision, whatever the heck that is. all i can say is it was a mighty bitter pill for shareholders, many of whom relied on that dividend for income. while it did routinely draw in buyers, nothing will make up for the $2.60 today. ouch. the supermarket space has gotten incredibly hard, a combination of dollar stores becoming more competitive, name brand offings, target and walmart moving aggressively in the space and whole foods taking the high end foods. sometimes outside yields are out and out red flags signaling their own reduction or elimination. before bleendly buying into management's assurances, before thinking how can i miss with that yield protection, do the homework! supervalu was in a long-term spiral down, so

supervalu has had difficulty competing with wal-mart and target. the competitive landscape spooked investors in other supermarket chains. safeway shares tumbled more than 12%. it was the hardest hit in the s&p 500 today. kroger shares lost nearly 4%. and, it was the "boot" today for the head of general motors' opel division, the unit's fourth management shakeup in less than three years. germany's opel will be run by gm's vice chairman, while the company looks for a new boss. the move came as a surprise, and analysts say reflects the automaker's growing impatience with its poor european sales. the stock slid nearly 3% to $19.33. turning to the most actively traded e.t.f.'s, we see the emerging markets e.t.f. was hardest hit, falling 1.7%. and that's tonight's "market focus." >> susie: if you're one of those people who loves shopping online, because you can avoid paying state sales tax, there may soon be some changes in store. in the next few weeks congress will take up the issue of making it easier for states to collect sales taxes online. ruben ram

before the break, five more monday movers, again to the upside with a 3.5% gain in roper and supervalu is up 10% on the trading session. diarrhea, gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! [ phillips' lady ] live the regular life. phillips'. [ phillips' lady ] live the regular life. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense. as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations. during the golden opportunity sales event, get great values on some of our newest models. this ie pursuit of perfecti

as earnings season gets under way several big misses, supervalu, progressive and wd-40.ttle concerning because this earnings season more important than ever with investor confidence. in the spirit of learning fast, a decades' worth of misses to highlight some of the worst quarterly performances. first up aol time-warner. in 2002 after the dot-com bubble burst, a new rule on accounting for goodwill. booking a loss in it turned out to be over stated. aol time-warner reported nasty quarters that paved the way for the split in 2009. next up a look at general motors. gm showed signs of trouble before the financial crisis. in 2007 it reported a profit decline that came from a writedown on deferred tax credits. that nearly $40 billion loss sent shock waves through the auto industry. who can forget wachovia's miss in 2008. 23.9 billion loss was linked to acquisition. when it burst agreed to be taken over by citi group. ended up accepting a better bid from wells fargo. last but not least, aig, largest quarterly loss in u.s. history. in third and fourth quarters of 2008 aig had to

supervalu, whose brands include albertson's, shaw's, and in the d.c.ppers, has struggled with falling customer traffic amid stiff competition with bigger rivals kroger and safeway. the company's ceo says bankruptcy is not among the options. guys, back over to you. >> all right, sima motie, sima, thank you. >>> you've seen the posters and heard stories about people looking for a lost puppy or kitten. well, this morning, one family in arlington is looking for a baby python. 6-year-old ava riggs had her snake happy with her tuesday while playing with her brother and sister near their home. the snake looks just like the one she's playing with now. that's the other one their family owns. her mom says happy slithered off while the kids were having a little picnic. >> ava took happy out of the bag and wanted him to join in their picnic and put him on the grass and looked away for a minute and forgot just for a minute, and happy was so fast! >> apparently, happy was not hungry. pythons can grow to be four feet long. the riggs hung up a poster in their neighbor

goldman liking the supervalue of this stock and saw a moment ago. >> we blew it.rare up day. goldman upgrading to a neutral from a sell. hardly a huge endorsement and supervalu taking anything it gets, basically. >> yeah. absolutely. moving along, finally sown looking for some love. but this one there's -- i feel sorry for them, right? projection and it's sad. >> i tell you, i didn't know this. did you know that sony launched a big line of smartphones in the united states? >> i didn't know. >> i didn't either. came across it. it's exsperia and launched it with at&t as the provider. come on, sony. usually launching a big deal smartphone, you know about it. >> lots of hoopla. >> pc world saying it's already outdated. >> "l.a. times" saying a year ago it might have been a good phone. now just outdated. >> anyway, that's tough. from "street talk" to political talk and this is not a good story for the journalism world on the campaign trail or anywhere for that matter. both the obama and romney camps allegedly strongarming journalists on quotes. it is a big story for "t

and supervalu shot up on word that its ceo is out. chicago bridge & iron is buying shaw group up 55%. medical equipment maker roper industries paying $1.4 billion for sun quest. the ceo of europe's biggest bank apologized for a shameful and embarrassing lack of controls, which is costing hsbc billions in fines for alleged money laundering by drug cartels and terrorists. >>> elsewhere, apple stock climbed nearly 2% as a jury was selected in its high-stakes battle with samsung. and a launch date for a new apple product is september 12th. speculation strong for the iphone 5, and also buzz for a mini ipad. >>> and a fond farewell for an enduring business, gray's, the longest operating general store in america has closed up shop after 224 years in business. that's a shame. >>> a yankee takes care of two milestones in one swing, plus, angels switch hitter kendry morales joins an elite group in major league history. you're watching "first look" on msnbc. using a traditional lawye? well, legalzoom came up with a better way. we took the best o

. >> i don't known i would compare supervalu to whole foods. which brings up another point. i think whole foods will benefit from essentially a shift in consumers' view of food essentially in the united states and riding that trend. that is also to their benefit. and the other thing, the company has almost no debt. so we're not going to worry too much about the leverage. up with of the stocks that had high valuation to it. >> mike buying a call spread, let's crack open the play building book to review. buy one call and sell a higher strike call against it to reduce the cost. you want the stock to go to that high strike. that's where you make the most money and where your profits are capped. all right. let's button this up with a little -- oh, what is the trade there? >> no problem. >> we talked about strategies. august 87.5 call spread. pay $2.85 for the 87 1/2 and sell the 92.5ss against it for a buck and a quarter, total net of $1.60. one quick point. the stock is implying just under 7% move, and, you know, this is one of the situations where because of the high basically

. >>> after-hours struggling supermarket operator supervalue, plunged after saying it considered sellingny and golf company calloway slid on reports they are going to cut their workforce. >>> remember the guide of surviving a zombie apocalypse? now the agency is offering a wedding day survival guide. they say for dealing with a bride-zilla, the guy does mention sedatives and recommends keeping an emergency box of chocolates on hand as well. apparently they're not so busy over there at the cdc. >>> two hoopsters are welcomed in their new homes and a big fine worth big bucks. >>> plus the latest version of the deem team gears up for its olympic run. your "first look" at sports is straight ahead. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios >>> welcome back to "first look," i'm lynn berry, in sports the ongoing dwight howard trade saga took a turn wednesday after the brooklyn nets pulled their offer for the orlando magic big man off the table. here's nbc's bill sewar

. >> yeah, a surprising report from supervalu.ate had been for 38 cents, and the company say it's will suspend it's dividend as it tries to restructure the debt. they intend to do this while remaining profitable and pay down and invest in capital to maintain and enhance our stores and related assets. we'll be pursuing more cost saving initiatives. they expect that to provide them with more flexibility. a miss on the top and bottom line, shares getting hit hard maria. >> he is a georgia banker accused of millions of fraud, he is now missing, and authorities are trying to figure out if it's dead or on the lamb. >> a southern georgia bank directo director. for an 18 month period, price, as a director of the montgomery bank and trust, opened accounts that were supposed to invest the bank's capital and treasury securities and instead, he wired $21 million into accounts he controlled. according to the fbi he disappeared after telling acquaintances that he lost a large amount of money and he planned to commit suicide. he was last seen ab

name it, it's going wrong for supervalu. >> really dragging down safe-way, as well. so how about some booze, guys? constellation brands up about 4.5%. ubs said dekreent the recent run-up, more upside is near. >>> and one more sunshine gem for you before you go. check out the biggest pink diamond ever. found in my beautiful home country of australia. it is the argyle pink jubilee diamond and found in a mine that was supposed to be cut down and only partially cut and it was donated to the melbourne museum, my hometown. >> anything else? >> no. an australian show. >> there we go. that will be brief. >> just getting started here thigh's the end of it, too. two big retailers are here and they're ready to break news of a big deal. >>> later on, with more and more cities filing for bankruptcy, we head to pennsylvania for a firsthand view of the ultimate worst-case scenario. "street signs" is back in a moment. this is must watch tv. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from gen

supervalu, which owns shoppers and other grocery chains, has explored all options, including possibleompany. the company has more than 2,000 stores nationwide. >>> amazon is reportedly developing a smartphone. the "wall street journal" reports the retail website is testing a new device with a display measuring between four and five inches. the device is expected to go into mass production later this year or early next year. the smartphone is expected to sell for about $200, and amazon is not commenting on the report. >>> more children now have cell phones. are you surprised? a survey by the national consumers league shows six out of ten parents have given their kids a mobile phone. those kids are between the ages of 8 years old to 12 years old. they call them tweens. 92% of the parents surveyed said that they spent less than $75 a month on their child's cell phone service. 99% of the parents say they have no regrets about buying cell phones for their tweens. you're not there yet, right? >> oh, no, no, no. oh, my goodness, i have a 7-year-old is my oldest. not for a long time, if i can

i feel like a broken record coming on here and saying that supervalu is one of the best shorts. >> what are they targeted now as a result? >> safeway remains with a third of its shares short, which is massive. no big movement there. gamestop remains up there. there's a bit of a tussle between the longs and the shorts in gamestop. it's just some of the big ones. >> we're keeping our eye on technology as we normally do. you've got some big names focused on here as well. what about the technology space? what kind of short interest are we talking about? >> interesting and slightly new one is yelp. most of those you can borrow have been shorted. whau watch out for yelp. and netflix, your guests probably have a view on netflix. that's up to about 11%. that's finally balanced. >> steve grasso has a question for you, will. >> i could equate the pop on gamestop, guys looking for the short squeeze out of r.i.m. i have a hard time looking at a landscape where gamestop actually survives. is this just basically a short-term thing for you and you pull that off the table if you don't get that pop? >>

supervalu is plunging, and they're suspending the dividend.iewing strategic alternatives they like to say. others are falling in sympathy. what do you do here? >> well, it looks like the dividend is not there. revenues weren't terrible, eps was. this stock is down almost 50%. almost a 50% short interest. it's going to trade north of 60 million shares. you could have the capitulation bottom for a trade that you wait for. it might be work a look on the trade here. >> when the yield is that high, there could be a reason for that. bank of america cutting the rating on tyson and smithfield foods to underperform from buy because of high corn prices. >> well, this stock has fuallen off a cliff. puts are a little active today. i think you can wait on this name. i don't think that's any hurry to jump into tyson. >> did you see warren buffett this morning on "squawk box"? he's seeing an improvement in housing. mike murphy, what do you think? >> so michelle we have been long both lenar and toll and a lot of people are coming around to this story. there's

the nation's third largest supermarket chain, supervalu is looking to overhaul itself. ceo says bankruptcy is not being considered at this point and the shares drop sharply in after hours trading. jpmorgan will report quarterly results tomorrow. the "new york times" is reporting that a shakeup at the new york fed after the financial crisis could have clouded the view of jpmorgan's risk in mid-2001. the fed replaced nearly all of its roughly 40 examiners at the bank. is that right? it's true. this goes to this whole idea of accountability, right. they are not accountable for the financial crisis. swap them out. timing of the swap is pretty bad. and now we're left in a situation where potentially and, look, you never know but they brought a whole new group of people in that were less familiar with jpmorgan's operations. >> those changes are said to have left the regulators front line examiners without deep knowledge of jpmorgan's operations for a brief, yet that was the critical time. let's check on the markets this morning again. did you see that? all morning long they w

how much did supervalu have to lose before that ceo lost his job? also want to tell you that when i read this facebook, once again, have to remember, nothing, nothing went right. nothing. i mean, zynga, groupon, facebook. the zynga fight, they're going at it again. >> zynga and facebook is on it again. on the coins issue. these guys need counseling. they got to sit down with marriage counselor. i got to tell you, it doesn't always work. >> no. sometimes divorce is better. >> yeah. all right. >>> coming up -- an exclusive interview with jc penney ceo ron johnson, who will make the push for a new concept. >>> we're looking at a basically flat open here for the u.s. but got a lot of movers and want to keep an open at the moment. much more ""squawk on the street"" next. ogy as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations. during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. looking for a better place to put you

. >> supervalu, goldman upgrades? >> that's a victory. time to cover.cture. >> for more on those names, sots.cnbc.com. what's coming up tonight? >> we're all over this ipo market. there are deals coming, we're going to look at them and decide whether you should be in them or not. >> keep hearing that manchester united may be a tougher sell than people may think? >> maybe there's a lot of loyalty -- people love soccer. >> that's true. see you tonight, jim. >>> when we come back, business inventories. a lot more "squawk on the street" in just a moment. [ male announcer ] summer is here. and so too is the summer event. now get an incredible offer on the powerful, efficient c250 sport sedan with an agility control sport-tuned suspension. but hurry before this opportunity...disappears. ♪ the mercedes-benz summer event ends july 31st. ♪ [ female announcer ] the next generation of investing technology is now within your grasp with the e-trade 360 investing dashboard. e-trade 360 is the world's first investing homepage that shows you where all your investments