investors are calling it "micro- hoo," a search and advertising deal between microsoft and yahoo. but they're also calling it a disappointment, and that sent yahoo's stock plunging 12% today. the problem is the limited scope of the agreement and the lack of cash going from microsoft's pockets to yahoo's. as scott gurvey explains, the deal teams up microsoft's "bing" search engine with yahoo's ad expertise to better fight the 800-pound gorilla of the internet. >> reporter: make no mistake, this deal is driven by google, which burst onto the scene ten years ago to knock yahoo! for a loop and become a thorn in microsoft's side. according to internet research firm comshare, yahoo! had nearly 20% of the primary search market last month, microsoft just over 8%. the two combined total less than half of google's 65% share. while microsoft and yahoo companies argue their partnership will be good for consumers and advertisers, in separate video statements handed out to reporters, the c.e.o.'s made their motives clear. >> right now, there's one company that really dominates the world wide mar

there's so much skepticism about this deal, microsoft and yahoo. >> absolutely. in search, the more people you can get to use it, the better it becomes. microsoft has knocked effectively triple its market share. the technology has to be good and in the past, hasn't been. at least they're in the game now. in the past it didn't matter how much technology they had, they didn't have enough users. by pairing with yahoo, they have a chance. >> does technology compete with google. i want to ask something i asked earlierment click to sale. on google, you can click right to sale first. you can't do that on the yahoo version. maybe i'm wrong. compare the google technology with the yahoo microsoft technology. >> the stuff consumers see from the standpoint of search, there isn't much difference, that's part of the problem. reality is why would i change. >> they need to steal from google. i can't look the same, has to be better. i don't think most people looking at it would have any idea anymore what twice as good would mean. google seems to work perfectly good for them. steal

yahoo! has new c.e.o., carol bartes and microsoft and yahoo! start talking about a more limited deal, not a full blown acquisition in which microsoft basically take over the search operations, handle the search operations on yahoo! in exchange for some value. and the deal went through all sorts of fits and starts and finely arrived at the deal you described a moment ago. all of this being designed to improve microsoft's fairly poor position in search right now which street a highly lucrative market, the online advertising market that accompanies search. and one that microsoft really has not had much success in on its own. >> charlie: is this a good deal for just microsoft or good deal for microsoft and yahoo!? >> the shareholders of both companies seem to think it's a better deal for microsoft than it is for yahoo! the stock of microsoft went up a bit yesterday, up a bit today, yahoo! is down. one of the problems yahoo! has is that they had sort of almost set expectation that they were going to get a big chuck, multi-billion dollar check from mi

and should we be afraid of china's threats? plus, from yahoo to microsoft....the competition among internet search engines heats up...but do they have what it take to lure users away from google. and...finding happiness during this gloomy economy....why one expert says now is the time to look for the positive....it's all ahead on this edition of first business. welcome to the show everybody thank you for joining us and let's bring matt shapiro of m w s capital joining us from the options exchange. it looks like the stock market is continuing to like what they are hearing from companies reporting second quarter earnings results. this morning we are going to have some big names at&t american express ups and microsoft after the close and i think this is going to put points on if we can get to the century mark that with and stalking best of distance. cochran did so with initial claims this morning and the new home sales existing home sales will see if we got enough information a positive news to push us over the top. hurt the markets are a critical levels of tr

the empire strikes back and microsoft and yahoo! team up in search and advertising. what does that mean for google and any antitrust problems? >> also, still to come, so many of the stocks in the search smackdown. microsoft is higher and yahoo! down 11% right now. google, by the way, down $5 or 1.2%. we're back after this. announcer: some people buy a car based on the deal they get. others buy the car of their dreams. during the lexus golden opportunity sales event, you can do both. it's an opportunity today. it's a lexus forever. special lease offers now available on the 2009 is 250. i just want fewer pills and relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!? taking 8 pills a day... and if i take it for 10 days -- that's 80 pills. just 2 aleve can last all day. perfect. choose aleve and you can be taking four times... fewer pills than extra strength tylenol. just 2 aleve have the strength to relieve arthritis pain all day. has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...o

microsoft and yahoo! have decided to take the next step on their on again/off-again relationship and move in together, or so reports say. we could hear an announcement as soon as today uniting the leaders. microsoft will be have to pay up front. the companies will share revenues from ad sales. yahoo! will handle sales using microsoft technology. google at this point controls about 65% of the u.s. search market. yahoo! and microsoft combined have about 28%. in frankfurt at this hour, both stocks rose after hours. they are trading to the upside, microsoft and yahoo!. google is down 0.76%. you're going to want to hear what our jim goldman has to say about it. he was cautioning that waefb hearing for some time now that an announcement is imminent. check out anything else you're looking for on cnbc.com. >>> still to come on the program, we'll continue to assess the threat of a growing market bubble. the flood of u.s. debt continues. we've got another $39 well auction of five-year notes. and reports suggest micr

yahoo! but if you look at the termand what they did and did not include, it reallyuggest to us that yahoo! probably could ha, and perhaps should have done better than thedid. reporter: microsoft and yahoo! expect rulators to lo closely at the agreement but ey don't expect any anti- trust oblems. commenting on its rils' deal, goog says competition is good. scotgurvey, "nightly business report," new york. >> suzan: after a near-death experience, heth care reform isoving forward again in congress. a dealas brokered by the white house,ongressional leaders and conservave house democrats. it procts small businesses. requiring ly firms with a paoll over half a million dollars to provide health insurance. as darren rsh reports, the de also clearly defines the role of a governme run health plan >> reporter: the health ca logjam broke afterhe idea of a public option-- essentially government heah plan offed to all americans--on critical backing from four conservave use democrats. onof them, arkansas's mike ro, was quick to add the support comes wi conditions. >> theublic option is just th, it's optional. it ges consumers more choices. it is not mandat on any of them. the puic option wil

yahoo! and microsoft announced they are teaming up for an assault against googel. -- against google. ultimately, microsoft could direct microsoft users into its own search site. yahoo! will get to keep most of the revenue but will have to lay off workers in that merg >>> in the first three days of the cash for clunkers program, of more than 8000 deals has already been made. so far come up more than $35 million has been gobbled up. -- so far, more than $35 million has been gobbled up. >> lots of interest. people come out of the woodwork. >> 16,000 dealerships are participating in this program. experts say the program is not a good deal if your used vehicle is worth more than the government's credit, because the credit is in place of your trade in value. your vehicle qualifies if it was made after 1984 and gets less than 18 miles per gallon. >>> the annual pony swim is under way. it is in its 84th year and always draws huge crowds. once the ponies are on shore, they are auctioned off. the ones not sold will swing back on friday. so maybe it will be raining on and this year. -- raining

yahoo! and microsoft. we've got the dow futures up about 25 points, ahead of fair value or 22 points ahead of fair value. the nasdaq up further and the s&p also up as well. as far as the ten-year yield, we're still there, but we're seeing folks coming out of ten-year notes. we dropped as low as 3.30 on the yield. we do have some supply coming to market. it is a three-month and six-month treasury auction. those do tend to be a little less fraught with anxiety than the longer data treasury. joining us is neil mckennan, the chief economist at this hour with ecu group. thanks for joining us. one of the things that people keep watching here in the u.s. and every time we get the treasury auctions, people hold their bettering reath to see if enough appetite for these investors to buy treasuries. all sorts of economies -- obviously in europe they're doing the same thing. is this something that's worrying you right now in terms of all of the debt that keeps coming to market? >> there is no doubt that debt issuance i

and then as we improve the modernization on both the yahoo! sites and the microsoft sites, there's good opportunity for upside for us in that. >> as we end, look at a five-year, of course, yahoo! it was only about a year and a half ago they turned down $33 in cash and there was some stock in there, too, from microsoft. that would have been some nice value. a long time until they see that again. erin, back to you. >> thank you, mr. faber. as mark thomas, faber delivers. faber is not the only one though who is busy this morning. >> yep. >> here they are. techs and macks? >> they've been poring through the earnings report. and they've got all the details for us. >> becky. >> who is tex and who is mex? >> i can't go into that. >> stole somebody's position. >> it rhymes with quick. let me think. >> careful. >> anyway. >> all right. >> becky, i have to live with this. i know you used to. >> you know -- >> what? what did i say? >> we all live with people. you've got a good quick name for me. >> quickie, i call it. i've gotten mail from people who say -- get your mind out of

and cars. it appears microsoft in the meantime has finally convinced yahoo they have a better chance of challengingtogether rather than separately. the partnership is for ten years and doesn't include any money exchange. instead, microsoft and yahoo's search platform says advertising will be integrated. we'll see how they do together. >>> the wall street journal says u. u.s. steel called back 800 workers this month. u.s. steel, its prices are firming. it sees shipments increasing this quarter even though it continues to operate at a loss. perhaps that's the mentality of sears. sears is returning to the toy business after a decade-long hiatus. sears is opening toy shops at 20 of its locations next month. they were known for their christmas wish book but stopped selling toys after competition with walmart wrapped up. they started advertising in july. >> they put up decorating rooms, right? the christmas tree -- >> yeah, and they're getting into toys in a big way, so they're mixing things up and hoping consumers will respond. but it's tough to go against walmart. they can really mark things down. >> b

. >>> in today's business news -- "the wall street journal" is reporting that yahoo and microsoft are to sealing the deal on an internet search partnership uniting the former rivals against google. the agreement, which could be announced as soon as today includes yahoo agreeing to use microsoft's bing search engine technology on its own sites. >>> more evidence the housing market may be on the rise after hitting bottom. according to a home price index, home prices in may posted their first increase since summer of 2006. and microsoft is planning to open its first two retail stores this fall. they signed leases in mission viejo, california and scottsdale, arizona. they will sell laptops and x box 360 games. >>> the race is on this morning to develop a vaccine to combat the h1n1 flu. federal health officials are now going face-to-face with crucial questions like who should get it and who should get it first. the cdc advisory committee holds an emergency meeting in atlanta today to hash out those very questions. earlier this week maryland health officials and superintendents held a flu s

>> and finally, microsoft and yahoo make a deal. but will antitrust watchdogs look to break up the deal? coming up here on "the call." >>> welcome back to "the call" i'm julia boorstin. time warner wrapping up its second quarter earnings call. numbers are down from last year, but ahead of expectations. adjusted profit 40 cents per share while revenue dropped to $6.8 billion, both beating projections. the company reaffirming its business outlook for the year. >>> one big headline from the call, the company is preparing to spinoff aol. the ceo plans to focus the company on its content business. this quarter aol revenues dropped 24% as they continue to lose dial-up customers and fight advertising downturn. as to the $7 billion in cash time warner has on its balance sheet, the company has once again started to buy back stock, purchasing $350 million in two months. acquisitions are a potential use of the excess capacity, looking for those that can provide strategic benefits and returns. but the economic downturn is taking its toll on the

we'll ask him about that and his key role in getting a bipartisan health care bill through the senate. be right back.  >>> all right. microsoft and yahoo press release are changing the search landscape, announcing an agreement that will improve the web search experience for users and advertisers and deliver sustained innovation to the industry. in simple terms microsoft will now power yahoo! search while yahoo! will become the exclusive worldwide relationship sales force for both companies premiu search advertiser. carol says this agreement comes with boat loads of value for yahoo! or users in the industry, and i believe it establishes the foundation for a new era of internet innovation and development. do you see any terms and a half terms of the agreement. it's a ten-year deal. microsoft is going to acquire an exclusive ten-year license to yahoo!'s core search technology. microsoft will have the ability to integrate yahoo!'s semple technology into the existing platform. >> bing. >> exclusive al go rhythm for yahoo! sites. dig down deeper. microsoft going to compensate yahoo! through a revenue sharing agreement on the traffic generat

deal together, we saw microsoft's online division post about $731 million today in revenue and another horrible loss. microsoft needs to do something with its online strategy. and yahoo! seems to be the most expedient thing out there and yahoo! quite frankly, can use the marketing and financial muscle that microsoft has. a deal today makes much more sense. >> got it. and, jim, we want to bring our viewers' attention to the headline that we are running. these, of course, are all courtesy of "the wall street journal." it is unclear whether the yahoo! board actually wants any sort of a deal with microsoft. while, you know, buying yahoo! in its entirety may be off the table, we saw yahoo! in yesterday's session ride midday on the back of reports of some sort of only partnership or some sales of parts of its business. >> i think that's a good reason why you always want to have a little piece of yahoo! in your portfolio. we hear from carl icahn all the time about them warming up to a deal. so if that's the case, and this could be something great for yahoo! they need something, as jim just mentioned to get themselves some muscle in their -- as he just put it. microsoft woul

my concern is with increased competition from microsoft's new search engine, rumors of yahoo and microsoftetting together. my question is is this a zero sum game? and can only one company win? and is that company going to be google? >> gary, i think you raise a good point. first of all, just the chatter of it, right. now we suddenly have bing, we have something in the web, boom. i was i got right to bing. bing and yahoo, yahoo's run by -- these are real competition to google. but here's the flip side, google sells at 19 times earnings but growing at 23%. so the negativity's priced in. here's the bottom line, i think google's become a battleground. i don't like to make money in battlegrounds, i like to go to areas where there aren't as much strife, apple is more likely to go much higher than google. jim in new york, jim? >> caller: jim, thanks for taking the call. >> my pleasure. >> caller: i got a question on river bend for you. i like the company, own it below 12, made a monster move, but it's lost 12% in the last two trading sessions, i.t. budgets continue to be tight yet river bed's pro

and finally, investors were disappointed by the conditions of a new ten year pardoner ship between microsoft and yahoo!. searches on yahoo! will now be powered by bing and microsoft will pay yahoo! nearly 90% of the ad revenue generated. the idea is to offer a google alternative that holds a significant share of the search market. investors had he expected yahoo! to receive an up front payment. it didn't get it and yahoo! shares went down 12% today. so not all good news. >> no, not at all, but people think google, so it will be hard to muscle in on their turf, don't you think? >> google is a verb in the culture. >> well said. all right, thank you. >>> we're all feeling the pinch in the shaky economy. clark howard is here to help you. so logon to cnn.com/clark, submit your i-report. . it could be collected to be profiled. and you'll get valuable advice from our money coach. >>> they need to be kank cranking up the ac in the pacific northwest. this are heat advisories in a region known for its cool weather. the temperature has hit 100 degrees in seattle marking -- making it, rather, the hottest day on r

it's the place where yahoo shares have been under pressure. 11.8% to the down side. you know the drill here, folks, microsoft and yahoo are going to get into a revenue-sharing deal on search. essentially, yahoo will be providing the sales force and microsoft will be providing a lot of the technology. bing, that search engine, will be part of it. but the way that the analysts are coming out on it, at least as of now-s is that it's more positive for microsoft. their shares are to the up side about .8% right now. meantime, google basically in the background saying they're going it take a look at the deal and obviously regulators are going to be taking a look at that deal too to see if it's a monopoly type of situation. google shares, meantime, 1.2% to the down side. obviously a lot of pressure coming out of china into today's session. it has continued here. a lot of adrs trade here. they're chinese-related companies baidu among them. the chinese version of google. interesting to note that baidu is one of the top performers year to date at the nasdaq. up more than 160% on the year. that's a huge move in that name. a

and then there is advertising. this will give microsoft and yahoo, as a team, a fighting chance.hepard: what is the best reason to go to pcmag.com? >> i am on there? no, it is a great way to find out about what new technology is coming out, where to buy it, how to buy it. shepard: pc magazine.com. thank you, sir. my check is in the mail. [laughter] we are waiting for a news conference about a status on the swine flu vaccine. are they prepared for a massive outbreaks? there are fears of such things in the fall. especially for those who are the youngest, oldest, and very sick. we are monitoring the latest and we will have that for you in a couple of minutes as we are tracking h1n1. (male announcer) if you've had a heart attack caused by a completely blocked artery, another heart attack could be rking, waiting to strike. a heart attack caused by a clot, one that could be fatal. but plavix helps save lives. goes beyond what other heart medicines do alone to provide greater protection against heart attack or stroke and even death by helping to keep blood platelets from sticking togeth

yahoo! and microsoft and why some kind of partnership is so important to those companies. >> genemanster with pipe ter afterry joins me to take a look at these numbers. gene, you've seen the numbers. what's your take on the quarter at yahoo!? >> it's a little bit softer especially on the display business down 14% year over year, consistent with what was down last quarter. we were hoping for 11%. that was the key number we were on. we were wishing that would be a little bit better. the guidance in some ways you can throw it out. we have a new cfo, carol barts is perennially conservative and probably keeping a low bar for expectations. it would have been nice to have seen more than just stabilization in their advertising business and discard the guidance. >> would you be putting new money to work in yahoo!? it closed at $16.75 a share. 4% decline. you want to be buying yahoo! at 16.31 right here. >> we would. we think there's operating margin expansion and if they continue to cut projects which they said in the press release tonight that nonoperational projects are being cut, that's a sign marg

yahoo, apple and microsoft are among them. but don't expect those numbers to tell the same story. as scott gurvey reports each company will paint a different picture about how it and the economy are doing. >> reporter: so far so good for investors in tech stocks. early second quarter earnings numbers are good, but there remain many questions for the weeks ahead. last week, intel had an encouragingly bullish forecast looking ahead to the second half. but the semiconductor sector needs to see confirmation from texas instruments, amd, sandisk and broadcom. when it comes to hardware, dell is falling way behind its rivals. one of them, ibm, raised its outlook for the year, but it said the economic environment remains tough. analyst thomas smith of standard and poor's says i.b.m. and hewlett packard are the stocks to watch here. >> both those companies have diversified into services and through this downturn their punishment on the revenue line, if you will, has been less severe than i think it might have been had they not been diversifying over the last five years and that's helped ste

brian: merger between yahoo and microsoft. that play into it. >> issues raise privacy issues. that really is our focus. we think competition and innovation is wonderful for the internet but when a few large companies know so much about what people do, what their interests are, that can have harmful effects on competition. it can make it more difficult. other companies to get involved. steve: users beware. mark, thank you very much for joining us from d.c. thanks. >> nice speaking with you. brian: testing to see if your kids are pregnant in middle school? where is that happening? why moms are outraged. you will find out and some are totally on board with this. not everybody is outraged. we will report you decide about that. gretchen: first a forum intended to promote the president's health care overhaul turns into a spontaneous tea party protest? we talked to the veteran who spoke up from the front row and got a standing ovation for it. >> my constitution that i took an oath to. crest pro-health provides... ...unbeatable protec

the nasdaq added 7 points to close at 1975. >>> microsoft and yahoo! are teaming up to take on google. the two tech giants are finally expected to announce a search engine partnership today. microsoft has been courting yahoo! for several years, including a nearly $50 billion offer last year to buy the company. but even after joining forces, the companies will rank a distant second to google's search engine. >>> there is growing evidence the housing market is stabilizing. home prices rose in may for the first time in three years. but exrts warn it will still be several months before prices really start climbing nationwide. this report follows monday's numbers showing new home sales surged last month. >>> general motors is looking to boost sales by offering leasing once again starting next month. the automaker dropped leasing last august, because of the decline in resale values. at the time it accounted for about 20% of gm's new consider business in the u.s. the decision on the size of the program and the details to be covered are being hammered out. >>>

microsoft tried to buy google and google flirted with yahoo!. it is a merger between microsoft and yahoo!. let's tell you how this works. under this ten-year deal, microsoft's new bing search engine will power yahoo! searches. in return, yahoo! will be responsible for attracting big-time advertisers buzz they have more experience in that area. we will not see any changes until next spring and you won't see a huge change because yahoo! keeps its branding and bing keeps its branding and it just affects yahoo! searching. by going into together microsoft and yahoo! tend to take on google's massive 65% market share of all online searches. by the way, microsoft has already made some progress with bing. the new search engine received favorable reviews and microsoft's review is up 8% since bing's june debut. but makes up 8% of all searches and yahoo! is at 19%, a distant second to google. this is costing microsoft hundreds of millions and taken a little bit of a bite out of yahoo!'s overall revenue but, they say, it makes sense for the long run. now, the

yahoo before this deal today just had 20% and microsoft just over 8%. this partnership today aims to really make that whole environment much more competitive and the two companies microsoft and yahoo who entered that deal today say it's going to improve the web search experience for all of us because now they are not going at it individually challenging google but now they will have the ability to innovate and advance the search technology together. shepard: this deal comes at a pretty crucial time in the industry, really, because google has been making moves to challenge microsoft's stronghold in the software business. >> this is huge because analysts say this could heat up and be an even bigger battle than the search engine business that they are going for right now because google is challenging microsoft 90% stronghold on the operating system business that they have with windows worldwide by google now developing their own free operating system. it's called chrome. it's expected to be out sometime next year. that could be a pretty intense battle all i

watch out google, microsoft and yahoo! are on the verge of sealing a long-awaited search deal. the "wall street journal" reports the partnership is expected to be announced as early as today. the companies would share revenue generated by search ads on their website. and yahoo! would use microsoft's search engine bing. microsoft made a failed attempt to buy yahoo! last year for $47.5 billion. >>> japanese automaker honda reported a 96% drop in first quarter profits. the tokyo-based company does not seem worried. honda raised its full-year forecast. could the worst of the housing slump be over? a report out says home prices in 20 major cities are up a bit for the first time in nearly three years. americans are still worried. a survey finds confidence in the economy, which had been rising along with stock prices, is now down for the second straight month. the reason? growing unemployment. >>> with nest eggs shrinking and medical costs rising, older americans are going deeper into debt. a study says low and middle-income seniors had a credit card debt of more than $10,000. >>> the

and yahoo! tomorrow, ebay and microsoft wednesday thursday to name a few. all the details coming up. >>> i'm cnbc pharmaceuticals reporter mike huckman and biopharma is starting the week on a very high note. two positive late-stage drug study results for two big areas of up met medical need have the shares of two companies jumping today. what it means for patients and, of course, for investors, coming up later. >> let's get to the market action right now. the dow jones industrial average up for the sixth straight day. the nasdaq and the s & p 500 on track for a sixth consecutive monthly gain. bob pisani at the new york stock exchange. earnings season this coming week help us with another gain? >>> it is, not just six straight days, michelle but breaking key levels, 945, s & p for the

google currently handles 67% of the world's internet searches, while microsoft and yahoo have just 11% the market between them. under the partnership, microsoft will not pay anything to yahoo upfront. but yahoo will get to keep 88% of the revenue from all search ad sales on its site for the first 5 years. today's long-sought deal means microsoft's newly upgraded search engine called "bing" will power yahoo searches. as a result, bing will be able to reach the second-biggest search engine audience on the internet. just last year, microsoft made a $47 billion bid to buy yahoo outright, but the offer was refused. yahoo is now valued at $22 billion. also last year, google tried to buy yahoo, but the u.s. justice department ruled that combination would control too much of the search engine market, and violate federal anti-trust laws. google issued a measured response to today's news. a spokesman said, "competition brings about great things for users. we're interested to learn more about the deal." wall street was leery of the new partnership. >> yahoo is going to say an independent company

yahoo! and microsoft want a piece of the action. a lot of time between them and, obviously, they decided to better than one to take them on. what is the deal? ten-year deal and microsoft's bing, which has spent a lot of money -- >> susan? >> yes. >> i apologize, you know, we're following all the action in this panel that is meeting, the panel of the senate finance committee to try to reach a compromise on health care reform, well, the chairman of the senate finance committee max baucus is talking to reporters right now. letser have a listen. >> the current draft of the bill is below $9 billion over ten years. covers 95% of all americans by 2015 and is fully offset. in fact, according to the preliminary report, the bill would actually reduce the federal deficit in the tenth year by several billion dollars. in addition, employer-sponsored coverage increases throughout the life of the program. that is, there is no net product. this will help us, clearly, as we continue our discussion. >> i got to go. i got to go. >> okay. max baucus in

now microsoft and yahoo have reached a search deal that gives microsoft access to the search engine audience, which is the second largest behind google. it is a 10-year partnership. >>> it looks like there is a reprieve for financially-ailing sligo creek golf course. it was scheduled to be closed october 1, the dow county executive ike leggett once the county council to approve funding -- montgomery county executive ike leggett once the council to approve funding to keep the golf cours open. those who oppose the funding say all eight of the golf courses have failed to return a profit and that sligo has been unfairly singled out. >>> doug hill has the full forecast. >> the nationals are going for five straight wins. and wait until you hear or joe gibbs says about jason campbell said. joe gibbs and sports is coming up. >>> congressman jim moran says belvoir will make the esdte c area worse. >> he s nteewa mtotwi m th robet gates toiscussow h the decision will affect traffic around the sites. greta kreuz has more. >> secretary gates is out of the country, so no response yet, the army corps of e

continue to see lots of activity in technology just this week ibm announced an acquisition and now finally microsoft and yahoo making it official coming up with online search trying to take on the business of google. a record amount of government bonds on sale this week... is pushing interest rates up... and causing a little nevousness in the overall financial markets. this week, the treasury department is auctioning 115 billion in goverment bonds most of it has already happened with investors buying 42 billion dollars worth of 2 year notes and 39 billion in 5 year notes.. on thursday, the treasury dept will offer 28 billion in 7 year notes. experts say so far the demand has been pretty weak especially from foreign governments... which appear to be backing down from buying u-s debt. in the 5 year note - indirect bidders which include foreign central banks bought only 36% of the total offered compared to 62% last month. "the key here is we need to watch foreign central banks .. and if they continue to buy our treasuries, especially china - if that dries up it will be troublesome " pat arbor calls it an "ominou

yahoo and even ebay. speaking of the following week, apple and yahoo come on tuesday and microsoft on thursday. so many experts saying tech will pull us out and commendary and a shift towards good news rather than not as bad news is absolutely key to the report. back to you. >> thanks so much. here now for the daily dose of "street signs," brian kelly and tim small's head of trading. thanks for joining us. me what you think of tech right now. are you a wading this earnings season with such eager anticipation as jim is? >> i'm await together on a macrolevel in terms of what the market will do. it will be important to see if these companies can perform. i'm not that excited about the earnings coming out, but hopefully we will get good news. >> we had a technical problem on my end. let me ask you what is your best trade right now. >> the best trade is rerise on and we finished a study of the wireless market and the results were clear. it was verizon, at&t and everyone else. verizon is post poised in the space in the space and verizon is the best capabilities and highest quality network and the mos

home prices appear to be stabilizing and the month of may marks the first monthly increase since the summer of 2006. in a marriage of web giants, microsoft and yahoo! are expected to announce an alliance to challenge google holdover online advertising. yahoo! would likely use microsoft's search engine bing with a bing message on yahoo!'s highly trafficked pages. fed chairman appears to have plenty in common with many americans slipping investments. according to financial disclosures, in 2008, bernanke saw his net worth fall by more than a quarter. his assets come in between $800,000 and $1.7 million. no matter how bad things get economically this is probably not the solution. police arrested a 28-year-old woman in georgia for operating an illegal strip club in her basement and garage. now, her roommate, however, has a different take. she actually says it was a surprise party to celebrate the newly renovated home. >>> well, last night's key plays on the diamond and brett favre finally makes up his mind. >>> plus, in the u.s., it's the fans who usually yell, the umpire! but in china they appear to play by different rules. your early morning sports h

microsoft and yahoo! have announced an internet search partnership in an effort to take on google. under the deal, microsoft's new search engine will be used on yahoo! sites while yahoo! will use microsoft computer technology. the police in spain are blaming the vast separatist organization for a car bomb in a northern city that slightly injured more than 50 people, who were hit by flying glass. from madrid. >> the terrifying aftermath of the early morning attack, filmed by an amateur cameraman. "what brutality," he exclaims. at least 200 kilos of explosives have been packed into a van and detonated without warning. the blast scarred 14 stories of the police barracks, ripping out the lower floors. more than 100 people had been inside. police officers and their families. children were among those cut by flying glass, but incredibly, there were no fatalities. "i'm in shock," says this lady. "my daughter was wounded. she has had four stitches in her head." the authorities were quick to blame the rebel group. the group's last cease-fire was broken in december 2006 when a bomb at madrid

yahoo! and microsoft later in the week. also watching charles schwab shares this morning as cuomo pl plans to sue the company. human genome, their shares are surging. couple 100% to the upside. experimental drug for lupus, late-stage study. i'll show you off the open where exactly that stock is trading. let's head downtown now to brian shactman. >> thank you, scottie. we snapped a four-week losing streak and continued to the upside what had decoupled late last week back in en vogue. oil on the rise here. well above of $64, heading towards $64.50. starting to steal my thunder but halliburton came out with earnings. supply/demand basically says prices aren't recovering any time soon. take a look at gold as well. back above $950. hovering around the five-year highs. dollar hedging, the trade that's involved there. the rest of the metals, very strong. silver, the out performer of that crew. special welcome back to mr. santelli. we missed you, buddy. >> thanks. i also miss the marketplace. indeed in my absence we saw that equiti

key upgrades for intel, apple, and yahoo today. microsoft, google, and ebay report the following week. and of course we'll have all the numbers as soon as theyss thtape. that's your techcheck. f i'm jimgoldman in the silicon valley. ♪ watching in slow mon ♪ as you turn to me and say ♪ takmy breath away (announcer) ge locomotives. customers lovehem almost as much as weove making them. ♪ my love mr. evs? thiis janice from onstar. i have received an automa you've been in front-end crash. do youeed help? yeah. i'll contact emergency services and stay with you. you okay? yeah. onstar. standard f one year on 14 chevy mod >>> welcome back. house ways and committee chairman charles rangel says that his committee is prepared to introduce a bill that would tax americans making at least $350,000 annually to pay for health care reform. this as president obama expressed his confidence today that reform would be passed. we get the thoughts now of a doctor and hospital executive. ceo and president of new york presbyterian hospital. dr. pardes, it's great t

microsoft and yahoo! have announced a partnership in an attempt to take over market leader google. under the deal, microsoft's new bing search engine will be used on yahoo!'s sites. iraqi police say seven iranians have been killed and about 300 were injured in an operation to take control of a camp housing iranian dissidents north of baghdad. clashes between police and residents are reported to be continuing inside the camp, which is run by an iranian opposition group. our correspondent in baghdad has more. >> the one thing we should say about these very dramatic- looking pictures is they are coming from the iranian opposition inside this camp, so it is difficult to independently verify exactly what we are seeing or exactly when they were taken, but let's start with what both sides agree on. clearly, there were clashes on tuesday, and there have been clashes on wednesday. it is the number of fatalities where people start disagreeing. iranians inside the camp say that a number of their people have been killed. that initially appeared to be confirmed by a policeman at the scene that t

yahoo! and amazon.com. technology giant and economic bellwether microsoft actually missed expectations, as did investment bank morgan stanley. those stocks were under pressure afterwards. strong earnings have pushed the markets higher. the dow jones industrial average closed above 9,000 on thursday for the first time since january after a very strong week for investors. the nasdaq, in fact, was up 12 straight days. nasdaq is up strongly in 2009. it is now at its highest close since early october. also helping the markets this week, good news on the housing front. sales of previously owned homes increased at a faster than expected annualized pace in june, up 3.6%. that was the third straight month of gains. we haven't seen that kind of winning streak since 2004. many believe that once housing recovers, the rest of the economy will follow. it's been a remarkable week. the nasdaq's big winning streak. the huge rally for the dow jones industrial average. can it last? what does the second half of the year look like? joining me with insight on what's happening and why is john rogers, chairman and ceo of ariel inves

microsoft formed a partnership with yahoo and in order to beef up internet searches. crosoft is the world's largest software maker. yahoo is already the second largest search engine. the goal is to close the gap on google and to raise revenue through selling internet ads. the microsoft/yahoo partnership is a ten-year deal. >>> the recent stock market rally is losing a little of its momentum. amid concerns about sliding sales of durable goods and three major indices saw slight dips on the day. the dow closed. 26 points off. 9071. nasdaq was off eight points and s&p fell four points. commodity prices fell on concerns demand will taper off and orders of big ticketed manufactured goods slid more than expected. >>> coming up, we will explain why authorities are cracking down on a popular roadside fruit stand in montgomery county. >> national campaign is shedding light on lyme disease. >> someone that's suffering from the condition. >> bob has a look at our forecast coming up. if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied cover