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tv   Closing Bell  CNBC  August 7, 2009 3:00pm-4:00pm EDT

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opportunity, that there is a floor under the market, so even if we do drop in september and october traders will come in, buy the market, and essentially create a floor. let's show you some things that are moving. the sectors for the week here, very clear. you've got financials and you've got cyclicals. look at this outperformance because a couple of outliers like cit and aig had some positive comments, helping the overall group. industrials, consumer discretionaries, materials. there are your cyclical groups here, outperforming everything else other than the financials. how about those financials? have you noticed this huge volume in citigroup? ever since they converted the preferred into common we've been doing a billion and a half, 2 billion 2:00.5 billion shares a day. same with bank of america. no conversion there but their stock has been terrific. goldman sachs. notice weakness, with other financials strong. maybe they're selling goldman to buy other financials. that's one theory. how about the transports? your other great cyclical group here. you look at the railroads, you look at ryder, you look at anything in this group.
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continental air did have a secondary and it was weak early on but that stock had big price swings today. it was down around $11. it's moving up here. 2% to 8% gains in all the transports. the transport sector is the leader so far this week. our team is covering the markets right around -- we've got all the bases covered. let's go to my friend mike huckman standing by at the nasdaq first. mike? >> thanks, bob. we are off the very poetic 2,009, 2,010 level we hit. but we're still hanging up around 2,000. we actually still have a few earnings stories to talk about here that are moving a handful of stocks here on the nasdaq and in a big way. for example, graphic chipmaker nvidia said sales in the current quarter are going to be way better than the street had been expecting. the ceo of that company saying he sees strength across the board pretty much in the business. but unlike when intel made a similar statement a short time ago it's not doing much to move
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the chip sector because as you can see intel's unchanged today and then we've got the philadelphia semiconductor index actually trading lower. however, crocs stock is rocking. crocs says that it's going to turn to -- return to profitability next year. the ceo there saying, and i'm quoting him now, rumors of our demise have bee greay exaggerated. apparently, investors agree. that stock is up 26%. and not just crocs but the whole retail sector here at the nasdaq is rallying today on the back of that better than expected jobs report. bed, bath & beyond hitting a new high, up 4 1/2%. urban outfitters getting an upgrade, up more than 6%. hot topic is hot, up 5%. pacific sunwear up 10%. and that's just a handful. follow me on twitter at mhuckman. let's go to the shack at the nymex. >> thank you. i don't think they call you the huck, but thank you very much, huck. it's a fascinating story p if you want to think about it. oil has been going lock step
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with equities for a while. the s&p's up, oil's up. people got some hurt in today because it did not work out. why did it not work out? why was the s&p hit something new highs and oil was down? well, the dollar. the dollar was stronger, and that's what was moving the oil market today. i want to share with you a couple of nuances when it comes to oil as well. plat's came out and said opec is cutting production by $100,000 barrels and that's something to think about. ray carbone said the recent rally has still been a head scratcher. today is more in keeping with what he expected. take a look at the whole complex. nat gas has a huge swing. it started off positive on the day, then had a sell-off late. when it comes to metals, gold is another one that was more affected by the dollar. in a tight range but i want to share with you something lou grasso of course, the brother of steve grasso basically told me he's from millennium futures at gold was actually tracking gold and not equities or the dollar. the rest of the metals were strong but sold off late. i will tell you, all of them positive for the entire week. and as i said to rick, people can talk about the s&p 500,
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rick, but this dollar, a bit of a decoupling with oil and equities has been fascinating to watch. >> absolutely, shack. as a matter of fact, what's really interesting is earlier in the day all of those comments were spot on. but commodities can't help it, the linkage there is more than just psychological and that strong dollar by the end of the day did probably have an effect on pushing oil down, taking await gains in gold. even though those commodities were very stubborn for a while, as you pointed out, what's going on with stocks and the dollar is really the key because it wasn't a safe harbor trade. this was better-than-expected data. and the exodus you saw in the fixed income markets made sense. you have a host of reasons for that. supply not the least of which to mention in the face of next week. but we did see the dollar definitely wasn't motivated by the same factors and both moved up on good economic data along with stocks. now, real quickly there, used to be big correlations between interest rates and every sovereign during the crisis. that's something else that
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changed. look at a one-week chart of the ten-year in the uk. uk bringing back quantitative easing. they were virtually unchanged on the week of the 3.79 yield. but look at our market. right now p 3.85 you're 37 basis points higher on the week. now, it was started by short maturities because of the fed implications. maybe the market's going to do a little tightening. but if you take a one-week retrospective, the yield curve steepened almost 20 basis points, ten-year minus two-year yields. we do have 75 billion in supply last week, and the dollar's the talk of the day, but you have to look at the stellar part of which that strength came from. look at a one-week chart of the dollar-yen. yes, it was a floor hand a week from 94 1/2 to 95 1/2 to 96 1/2 to 97 1/2. don't see that very often. melissa francis, back to you. >> no, you don't. rick santelli, thanks very much. taking a look at today's business headlines the labor department reports july non-farm payrolls fell by 240,000 last no-month. that is far fewer than the drop of 320,000 economists were
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expecting. that helped the unemployment rate unexpectedly dip to 9.4%. it is the first time that's fallen in 15 months. the white house, however, still says it expected unemployment to hit 10% this year. coming up, the ceo of tells us where he is seeing positive sign of growth for jobs. merck and schering-plough shareholders overwhelmingly approving their merger. over 99% of investors in both companies okaying the deal. if approved by the ftc, merck will become the world's second largest drugmaker. and target is breaking up with the retailer announcing it will build and manage a new platform that will be launched in two years. amazon has been running target's website since 2001. bob. >> melissa, thanks very much. let's talk about what's going on today in a very interesting day. joining me here, david darst, chief investment strategist with morgan stanley. and directly to my right, jordan kimmel, market strategist with national securities, author of
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"the method of invest." so gentlemen, let's talk a little bit about the dollar. a lot of people scratching their heads. dollar strong, stocks strong as well. commodities kind of moving sideways. that hasn't happened recently. is this a sign that something -- there's a change in the air? >> global recovery is the theme. you've got germany, you've got japan recovering. the united states looks like -- you see the jobs number, robert, 240 this morning, 247. that means the fed's going to be able maybe with people starting to of month into mid next year rather than end next year raising rates. as you know, we learned in college, currencies were driven by trade. today they're driven by capital flows. thus interest rates. so if the economy's stronger here, looks like we're coming out faster than people thought, that's going to raise the interest rate, going to raise the currency. thus today unlike earlier this year dollar up, market down or vice versa. today they're moving up in sync. and that is very consistent with our view of a global recovery theme going on right now. >> so if you believe in the
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global recovery and the u.s. is going to be a market leader, then the dollar up and stocks up mikes sense. >> this is already the second phase of the bull market. we're always looking at what's going to go wrong, what's going to happen, where's the sky going to fall next. the first bull market move was the move off the bottom when we realized the world wasn't going to end, kamtism wasn't going to end, consumerism wasn't going to end. now we're starting to see a rebirth in confidence. the consumer realizes they're not going to lose their job next week, i can go out and spend. some people say the easy money's been made already. remember, the market's still down 50% almost in a lot of places than it was a year and a half ago. and when you look at cash flow, we're cheap to cash flow. >> remember, the bears are arguing september, october the market takes a dip down. is there some kind of floor that's now being established under the market? because any dip is now going to be a buying opportunity because people are underinvested. >> well, the three ps are your positives. and this is production. next friday look for the industrial production, bob. we're expecting morgan stanley
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research 1.4% up. that will be a blockbuster number if it happens. the second thing is profits. that's the second quarter that's come through just now. i think it's going to be even better in the third and fourth quarter in terms of surprising to the up side. and the final thing is profits, production, and pent-up demand, the consumer. on the negative side you have the three cs -- china, the consumer, and you have the -- the consumer basically grinding out -- falling down. that's the biggest one. the china and the consumer are the big ones. china is possibly a bubble right now. it's basically all the money's gone into the -- >> is there a floor under the market at this point? is there some kind of support somewhere below here that's going to keep stocks from dropping that far? >> i think the floor right now is how the fed exit strategy looks. next tuesday, wednesday, a two-day fed meeting. you want to keep your eye on that. and if the fed basically can give some thought, people think
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they're going to be hawkish on inflation and be mindful of inflation, many of those programs have an automatic exit strategy. so that's important, too. >> jordan, is there a floor under the stock market? that's what the investors want to know. >> here's the answer. the floor is the enormous amount of cash that's on the sideline. the individual investor still hasn't even come out. we're seeing cash as a percentage of the size of the stock market. it was at all-time records a couple months ago. owl you're starting to see is the flow of money coming in, people picking their head up and saying isn't the market starting to do better? i can't really make it on a quarter of a percent in money market. but the key here too is sele selectivity in the market. that's what my book is about too, not believing in overdiversification. >> is the s&p higher at the end of the year than where it is right now? >> yes, i believe it will be. >> our view, it will be close to the 1,100 number and it may surprise people to the up side after that. >> david darst, jordan kimmel.
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got about 45 minutes to go before the closing bell. we're just off the highs for the day being led by financials and cyclicals. >> up next we'll discuss whether today's rally is for real and which sectors could outperform from here on out. >> and after the bell does today's better than expected employment number mean the economy is coming back from the edge? some answers today 4:00 p.m. eastern time. >> but first the most active stocks on the new york stock exchange led by citigroup, bank of america, cit, and our parent, general electric.
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aeiou if you want to buy some vowels. check it out. 6% higher here today. the single best performer in the utility index. today the stock sat an 11-month high after posting not only better-than-expected second quarter results that were down sharply but hey, it's all about expectations. but also a full-year forecast increase. they're based in arlington,
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virginia, but most importantly notably they do business all over the world. 29 different countries, their power plants and their businesses and operation. aes, utility to look at. bob? >> let's talk about where we're going because it's an important day. joining me, you know these guys, walter myers, walter j. dowd, stuart grasso, stuart frankel. whether there's a floor under this market right now, the risk appetite has returned. we've seen out of bonds into dollars, into stocks. does this imply that drops in the market will be met by people being interested in buying stocks? >> if you look at what's happened over the last few weeks or even go back the last few months, absolutely. anytime there's been any dip or any appearance of a sell-off people have been coming in and buying stocks. it certainly has the feeling there's underlying strength here and underlying support. >> steve, they tried to break the market eight days ago. remember there was that five-day period where every time 10:00 in the morning you see them sell it
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off and it didn't work. they got killed. >> they had to buy them back. that's why you had the late-day strength. i agree totally with what warren just said. every time they tried to break this market's back you saw the mutual fund business start to come back in. they weren't chasing but they were definitely buying the market. >> and now they're dramatically underperforming. >> right. >> but we keep getting on a technical level more and more overbought. at some point doesn't there have to be at least a sideways move here, or does it necessarily imply that we can go lower? >> you would think. but every day the shorts just keep getting rolled over, waiting for that sideways or drop-off. and that's the nervousness and that's the bet. and coming to it today on a day like today with a number much stronger than people thought it was going to be, that's the danger, and that's why guys aren't going home short as much as they used to. and that's why you see the markets still strong. >> i've seen a few fund reports in the month of july, and a number have been notably underperforming. that is a very dangerous -- because they sat on the sidelines, or did not participate. so there's your example of how
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dangerous it can be. if the s&p is up 8% in july and you're up 4%, that's a serious problem. >> and that flnz why this rally keeps continuing. imagine if you're underperforming now but let's look back even in a different scenario, you have yet to jump in. now you're really underperforming. now what are you going to do in so every day it feels like you're getting more and more people who haven't jumped in putting more and more into it to get caught up. >> the 870 level where it was almost a given that we were going to trade down to 850, 820. it didn't happen. guys were forced to take this market higher. >> so what worries you at this point? you're both going along with the momentum. you're both reasonably bullish here. at least you're sounding reasonably bullish. what worries you now? >> i'll tell you -- >> go ahead. >> thing that worries me. you know where i am. you know the camp i'm in. spending this much money has to have some effect on the economy. so we're starting to see it. 14% of the stimulus plan has been spent. should say has been used at this point and you're starting to see that come into the marketplace.
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but time and time again we're spending our collectively money to buy this rally, and how long can that last when the dollar's run out? >> excessive spending worries him. >> absolutely. the other thing that scares me or worries me is washington. you just never know what's going to come out of washington. i think we're in a lucky period or a nice period now where they're going to be away for a month. so i think that's another reason why maybe this market's going to continue up a bit. >> we can drift higher in the absence of congress making any health care decisions, any energy policy or any regulatory policy. till next month we can probably drift higher. >> come september it's a different ball game. >> bob's been saying that for a while. >> thank you for giving me credit on that. melissa, we're slipping a little here. >> i was noticing that. 40 minutes to go before the bell. the dow is up about 125 points. at last check we've given back about 25 minutes in the last 15 minutes or so. >> next the cnbc investor network. find out why there's still reason to be optimist ic.
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criticized all day that we're celebrating another 247,000 people -- >> look, historically speaking when you have good economic news the dollar gets stronger because in theory it means the fed is more likely to raise rates and so money's going to get more expensive. that's the normal state of affairs. but for the last several months we've been getting better economic data, less bad economic data, and what's been happening? the dollar's been selling off. it's been odd. what's been happening there is an unwinding of the fear trade. remember a lot of people had piled into the dollar as a safe haven. and so now that weird stuff happens for like three or four months. now today back to what we would expect normally. i look at this and say wow, another sign of perhaps returning to normality. when you see the dollar act the way you would expect when you get good economic data. >> although it is one of those things that, like all economic principles, we can always explain in retrospect. >> oh, yes.
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>> but ahead of time we never have any idea. i mean, would you say from people that you've interviewed today that this is going to continue, or is it -- >> with the dollar. >> yeah, with the dollar. >> certainly a lot of people have said you have to watch today. are we watching a sea change in the way the dollar has moved over the last several months? because if so it's going to be very important because you can get slammed. look, the u.s. dollar versus the yen, the very top there, that's a two-yen move. you hardly ever see that. i mean, tis very dramatic. and then just to the right there, this is great for context. in six months the dollar has fallen as people have gotten out of it because they were getting out of the safe haven currency, moving to more risky stuff, and then you move way to the right here and you see that peak up. what's going to happen there? if we get a return to normality maybe we start to see a rise in the dollar. >> the other disconnect that's been pretty surprising in conjunction with all this today is the fact that we haven't seen stocks then go down because normally strong dollar is bad for stocks. and that didn't happen either. >> right. normally a dollar, a strong
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dollar is bad for stocks, tough for our companies in the united states to sell stuff overseas. i think when you get the employment data, which was not great, just wasn't as bad as what people had expected, but it's given a lot of people the courage to say i think we might get 3% or 4% growth in the second half of the year, that would be tremendous. that's good to be good news for stocks. >> michelle, thanks so much. we're going to go to jim goldman right now. he's got some breaking news for us. jim, what do you have? >> yeah, indeed, breaking news out of the european union. the european union's ombudsman issuing some really extraordinary comments. just moemments ago, rebuking th eu in the case against the world's largest chipmaker intel. these comments will not turn around the findings by the eu that intel abused its chip industry monopoly, but it does give us some insight into maybe how weak the eu's case really was. you'll remember that the eu did find that intel did abuse its monopoly, issuing a staggering 1 billion euro fine, 1.4 billion
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u.s. dollars. the ombudsman says the eu neglected to include in its report some possibly exculpatory information from a key executive who says that dell chose chips by intel not because it was pressured to do so but because they were technically more advanced than the offerings from advanced microdevices. again, this will not turn around any kind of ruling, but intel is appealing this case, and in its last quarter the company did book that entire $1.4 billion fine in its earnings, leading to the company's first quarterly loss in some 23 years. so you can bet that the findings by this ombudsman will be key in the ongoing intel appeal. melissa, back to you. >> jim goalman, thanks so much. for another take on the markets, let's turn to our cnbc investor network, a web cam connection straight from new york city. rick schottenfeld, chairman at schottenfeld group llc is joining us. tell me what's going to happen
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from here to the close. >> from here to the close i think we might see a little bit more weakness. i think guys are just paring off the positions before they go home. and i think the dollar strength and commodity weakness that's going along with it could be a little bit of a problem for a pullback in the very, very short run. but i have a really -- i have three views of short run, a medium-term view and a left-winger-term view. >> okay. >> in the very, very short term i think we probably pull back a little bit. foote dollar strength sxenz commodities weaken, that commodity strength has been a decent driver for this rally. but in the medium term i think the market probably rallies into the end of the year. we've printed all this money, done all this stimulus, and we've seen this before. the government can spend massive amounts of money and give the illusion of a strong economy, and i think we could see a 3% gdp number. i think hiring census workers is going to be a positive, have a positive effect on the employment numbers. i think things like cash for clunkers are also going to help. so we're going to have the illusion, i think, of a strong economy probably for the rest of this year. but i think the expectation that
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if you give the illusion of a strong economy that it will start going on its own inertia is going to prove evasive when we get into next year. >> and you're also one of those people like art cashin and a couple people we talk to during the day who still say we're overdue for a pullback. >> we've been long overdue for a pullback but obviously people were too short, people were underinvested and it became very clear that the government, through manipulation of the cycle of order production and through programs like cash for clunkers and other things they're doing is going to create very strong economics in the third quarter and i think a lot of people found themselves short and started chasing stocks. other people were underinvested and started chasing stocks. and the combination created an environment where there wasn't any pullback. >> i've got to tell you, sounds like sour grapes, like you're fighting the tape. >> no, we're not 37 we're long stocks here and we're not fighting the tape. i'm going to play the hand i'm given. and that hand is that i think stocks are going to be higher for the rest of the year. but i'm still concerned, and i don't want to lose sight of the fact that fundamentally our economy is structurally impaired and that the artificial stimulus -- this is how we got into the problem. we're running our country's
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finances the way michael jackson ran his. you haven't had a hit record in 20 years but you're still living like a rock star. and the bottom line is that can't last. we as a nation have not exported more than we imported since 1975. that's what makes you a rich nation. and we're not doing that. and it's going to take a very, very long time before we rebuild our neglected economy. we've been relying on debt for 25 or 30 years. and that's all going to take a really long time to fix. >> rick schottenfeld, i'm going to steal a few of your lines. thank you very much for joining us have a great weekend. >> thank you. >> up next the "fast money" final call, china indicating it could pull back on buying hard metals. find out how that news could help you cash in on commodities when we come back. welcome to the now network. right now five co-workers are working from the road using a mifi, a mobile hotspot that provides up to five shared wifi connections. two are downloading the final final revised final presentation. - one just got an e-mail. - what?! - huh? - it's being revised again. the co-pilot is on mapquest.
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hi, folks, i'm matt nesto with the "closing bell" realtime flash. now, earlier today we talked about some of the like ancillary stocks that are doing well because of the uptick in jobs. the confidence there. i mentioned the hotel stocks doing well. check out walt does ni, number one performer in the dow jones today, up over 5%. it hasn't really done a lot over the past two weeks, but clearly this company is exposed to consumers both on an advertising
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basis and on its theme park basis as well as its commercial products. it's been a bit of a strugler. you can see on the two-week basis since this rally began in the middle of july, up about 17%. which really puts it in sort of the middle of the line, if you will, for the dow jones. but disney number one today, and no crying about it. back to you. >> matt nesto, thanks so much. we've got about 25 minutes to go before the closing bell. here's how the markets are shaping up. the dow had been losing a little bit of steam but now it's fighting its way back toward the highs of the session. up 145 points. that's about 1.6% on the day. and sitting above 9,400. that would be the first time it would close above that level since november. take a look at the nasdaq as well. it is charging higher at this hour, up 1.6%, also off the highs of the session but above 2,000. 2,004 the last trade. and the s&p is trading to the up side by about the same percentage. 16 points.
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1,013. >> time for the "fast money" final call. chinese indicating it could be pulling back on the purchase of hard metals. how can you make some money on this? here to dell us brian stultland trader at stutland equities and a "fast money" contributor. i've got to till china says we're monitoring the stock market. and shanghai sells off. china is making these sort of nebulous comments about asset bubbles and these various things in the last several weeks and the market goes up and down on it. how much credence do you give this? >> you know, you can't give a ton of credence to it but you have to believe it a little bit. they did say back at the beginning of the year they would ease back on buying treasuries. they've done that a little bit. they're still obviously a major holder of our debt but they've eased back a little bit. i do take some note of what they're balk r talking about and what they're saying is purchasing commodities as opposed to going out and buying other assets throughout the world may be a better diversification for themselves. in that sense you have to watch commodity prices. they've had a bit of a run right now. i still believe in the macro
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economic theory here, the third quarter is continuing to grow, the economy is glowing brighter and brighter, but prices are stagnating a bit should they decide to pull back. >> does continue amaze you that the government essentially decided on a stimulus program overnight, that overnight the government, essentially the government began buying commodities which helped prop up -- what would happen foote united states government decided to buy copar? we are living in truly extraordinary times at this point. >> certainly when you're a nation like china that has such a huge import, part of their gdp, they have to put that money somewhere. they can't just hold it in cash and not collect any type of interest or return on that. so what they do is they either look -- as a communist nation they go out and look to buy metals and other commodity sources in order to support their own people. that's the goal of a socialistic type society. now-n our nation we're capitalistic, we don't do that, we let the individual, the private investor go out and do that and we let the marketplace govern it. but china's in, it they've got a
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footprint in, it you've got to believe what they're doing. >> we're looking at the shanghai composite and you can see it's up 100% since november. so it's no wonder the chinese government is monitoring the stock market. copper is practically doubled, brian. we've seen all these metals move up rather dramatically at this point. certainly in an oversold condition but do the fundamentals actually warrant buying any more commodities at this point? >> well, one thing you do have to take note of, actually, the last two recessions that occurred overall on average the commodity prices tripled from the bottom to the top. in other words, a 300% gain. you're talking about oil going from $30 possibly to 9 $90 on the next move. given the fact we're coming out of the recession or it seems that way, i've been playing that space a little bit, getting a little bit of exposure. i'm still a believer in the macroeconomic theory, we're going to continue to grow you want to have some exposure to metals you take a look at a name
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like sutherland copper, pcu. you take a look at that. you can go out and maybe sell should calls against that to protect yourself, get a little bit of actual premium on the stock you're owning and maybe buy a further out call so if the commodity prices end up tripling like the last two recessions you can still participate in the up side. >> you're essentially buying yourself some protection. >> you're buying a little protection to the stock position you own. collect a little premium on that, add to the fact you're getting a dividend on the stock. you're getting that extra premium buffer in the stock and at the same time you're long the stock you get to participate in the upward move in the stock if it occurs. >> i want to point out the shanghai composite is up 100% from its lows last year, not in the last week, obviously. thanks very much, brian. tonight on "fast money" are we in the clear after the positive employment data and the rally it followed. is it safe to say this bull is here to say? the economist robert shiller, you know him. tells us if improving jobs will
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translate into improving housing. mr. shiller's been right lately. that's going to be at 5:00 with melissa and the traders. >> we've got about 25 minutes before the close. the dow is up 135 point at last look, trying to hold on to the gains. >> employers cutting far fewer jobs than expected last month. is the labor market finally making a recovery? up next the ceo of tells us what he's saying. >> then coming up after the beshlgs remember when congress blasted those auto executives for flying to washington on private jets? well, guess what. we'll discuss whether congress's $500 million purchase of eight planes smells like hypocrisy. they got some gulf 5s, i think three of them. i can't believe that. that's coming up at 4:00 eastern. we'll be root back. others buy the car of their dreams. during the lexus golden opportunity sales event, you can do both. it's an opportunity today.
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are you talking about the budweiser? or... me? yes. ♪ welcome back. good it see you. here are the latest upgrades and downgrades. credit suisse upgrading kraft to outperform from neutral. $33 price target. because the company is well positioned to benefit from a weak consumer spending environment.
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and credit suisse also upgrading railroad operator csx to outperform from neutral, hiking its price target to $49 from $37 because the company could profit from a potential rise in metallurgical coal prices. and look at that, the stock's up 8% here today. great day for transports. and soleil securities downgrading comcast to hold from buy because of the cable operator's lower subscriber numbers. finally, stifel knick o'laus upgrading hansen's to buy from hold. >> today's better than expected job numbers may be giving boosts to markets but there are no consolations for millions out there looking for work. that's where steps in. the website has more than 1 million jobs listed right now. president and ceo matt ferguson joins me now to take us through the job openings and where to find them. thank you so much for joining us. let me ask you quickly, were you surprised by today's jobs number or does that go along with what you've been seeing? >> we did see jobs at our were
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up over 10% in july and june. so i'm not claer completely surprised but i think the number was better than most people expected and trending the right way. we'll see what happens in the next couple months, maybe the number will soften as they revied it in the last couple months. so i'm not going to be overly enthusiastic about it today. but i think it's a positive sign and we're klay we're heading the right direction. >> so postings, people looking for jobs -- people looking for employees was up 10% in the last month? >> the jobs posted on the site was up 10% over june. >> okay. and what kind of jobs and where are they located? >> you're seeing obviously health care's remained strong throughout the downturn. it add jobs. and the bls report has added jobs on our site. i think we saw the restaurant, food service industry is definitely improving. government, not surprisingly, is going up. although there's a lot of jobs being lost at the state and local level in government, while we're going through this. in addition to that, insurance seems to be doing pretty well. >> you also listed sales and
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marketing. i'm looking at the screen that's up right now. what kind of jobs are available in sales and marketing? s ar. >> as knz think good b. growing revenue, they're al across the board. business development, larger deals, strategic deals, entry-level sales all the way up to very high-level sales. >> let's do the geography a little bit. what cities are a lost jobs available in and what type of jobs are they? >> we think the northeast has improved significantly since january. philly and d.c. are two cities that have really improved. and not surprisingly d.c.'s seen a lot of activity with the amount of money being spent in government today. >> information and service-based industry in philadelphia. information like that? >> those are technology companies. the technology sector's done well in the stock market as you guys were talking about earlier and it's also continued to hire people through this downturn. some companies haven't but a lot of companies have continued to hire in technology. >> i'm looking at the south and southwest right now and one of
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the things that's listed is alternative energy. do you feel that's a sector that's trendy right now and might be kind of dangerous to get into it because what if we don't care about this in a couple years? or do you think it's something that's here to stay in. >> it's here to stay. i don't think there's a ton of job creation in it today. i think most of the jobs are in traditional sectors. but i think that's an industry that's going to be around for a very long time. it's important to the country. it's important to the world. and people will continue to invest in it. >> is texas kind of a hot 1309 right now, dallas, austin, and lauft -- >> oh, absolutely. texas is the hottest state right now. >> for job creation. >> for job creation. in the big states california continues to strulg but texas has been the strongest throughout this downturn, and those three cities really show that. >> let's look at the west for a second. i notice you highlighted seattle. a lot of education jobs there, health care, biotech, r&d. >> seattle's been strong as a technology center. microsoft. but from microsoft a lot of
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other technology jobs. education's been strong. boise, idaho's been strong agriculturally. it's also a college area where there's a lot of jobs around that. >> finally, the midwest. what are you seeing there? >> indianapolis has been good. it's a pharmaceutical center. it's a health life science center. kansas city has continued to do well. in aviation, transportation, utilities, and energy. both those xliz are doieconomie okay throughout this downturn. >> what do you think when you hear economists talking about we're going to have a jobless recovery? do you really buy that and what does that really mean? >> it just means companies will be slow to hire, and i think that will be true. in the u.s. economy the people that kroet the most business are the small business owners. they're having a hard time getting funding. and that's been slow. and really hard hit in this environment. i think the question of whether a jobless recovery is look at the small business area and make your own decision of whether you think they're going to come back strong next year and hire a lot of workers. >> one of the economic definitions of a jobless
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recovery is there's a shift and there are fewer jobs needed in the industry than traditionally. we know the automotive industry is shrinking but do you think there's a real fundamental shift going on? >> i do. i think the finance industry is going to have fewer jobs when we come out of it. we eyesed tooto say in the 198 o's structural employment was around 6%. we changed that in the '90s to closer to 4. i think it's going to be closer to 6. an economy that's not as consumer driven. something like finance doesn't create as many jobs. >> somebody that's not college age, that's been in the workforce for a while and needs to find a job, what advice would you give them in what kind of job is most plentdful right now? >> i would say take any job you can find right now, take a job you may not be completely happy with and then i'd say really look at going back and getting more education. you're never too old to go back to school. having those skills that are so in demand in health care and information technology will serve you well to find that better job in the future. >> what about kids that are in college right now? what would you tell them? >> i'd tell them the same thing. a couple years ago you might
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have been able to pick tofrom four or five jobs. today you're lucky to get one. get in there, do well, focus on your education there will be plenty of opportunities in the future. >> what's the best way to look for jobs right now? obviously going to sites like yours. but what other advice would you give people? >> clearly the internet's a great way to find jobs but also networking and i'd say networking in a broader fashion than people have done before you can't just rely on family and friends, you have to rely on friends of friends, college networks, anything you can find to get some contacts within companies that k. can have a little different way to go in and get your name in front of them. >> matt ferguson, a lot of great information there. check it out. thank you so much for joining us today. we really appreciate it. >> thanks for having me. >> bob. >> that was really interesting. i listened to that very carefully p i thought he had great insight there. we pared our gains on the dow. i'll tell you what the problem is p bank of america's gone negative. citi's been down. some weakness in the other sectors. but the transportation index is
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continuing to hold up. >> the bull market rolling on today. up next matt nesto unveils five statistical shockers that have snuck up under the radar and will take traders by surprise. we'll be right back. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it.
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some of today's under the radar stocks. price smart. net sales rising. wireless equipment maker harris straducks cutting its fourth quarter revenue guidance well below wall street estimates because it has to defer some sales to a later period. and movie theater operate cinemark reporting a 20% jump because of higher ticket and concession sales but that fell just shy of analyst expectations. and melissa, movies a cheap form of entertainment, they're doing well. >> there you go. the s&p 500 is now up 50% from march lows. matt nesto joins with us a look at some statistical shockers that happened right under our noses. >> you know, melissa, they say sometimes you don't see the forest through the trees here. and this is one of those nesto things, like i'm always playing around with the markets and the
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indexes and skewing things around. so i'm looking today, and by golly, we've seen this financial run-up. but take a look at, say, bank of america versus apple. versus the trough in the market. look at the percentage gain bank of america up 339%. makes that slacker apple and steve jobs, at only 100% gain, really look hurting. but when you go the next level down, you look at the market cap, they're almost neck and neck. and bank of america now is worth $142 billion. it's in a dogfight to punch its way into the top ten of the s&p 500 again. apple and google are in their own dogfight to hold on to the 10th and 11th spot respectively. the same could be said for a look at citigroup versus home depot. both these stocks are worth about 44, 45 billion dollars right now. home depot by a nose. but look at the performance as it goes to citigroup. we know the financials have had a run. take a look at just how the large caps have done. if you take a look at the 50 largest mid-caps, they range from 3 1/2 billion to 6 billion
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dollars. pretty big for mid caps, if you will. but take a look at the 100 smallest large caps. this is linguistic gymnastics on a friday, i know. but they range from 900 million bucks, which is manitowoc, all the way up to 3.8 billion with newell, tiffany, and whole foods. so the 50 largest mid-caps are bigger than the 100 smallest large caps. that's a head scratcher. also look at this. from september of '98 to december of '98, i'm not sure the dates are exactly right there, but the best five-month run for the technology index was 81%. it was actually september '98 to january '99. the five-month run that we're just closing today for financials, way better than that. 130%. so this is a rally the likes of which the market has never seen. and then lastly, there's only two stocks in the s&p 500, melissa, that are not positive from their 52-week lows.
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one of them is sprint pcs. there's the other one, genzyme. had a five-year low today. look at that five-year return. yucky. back to you. >> i didn't believe most of the things you just said. that was very cool, matt nesto. >> you got it. >> up next, the closing countdown. >> and after the bell stocks staging a comeback following the better than expected employment report. but are stocks pricing in a stronger recovery than we're actually going to see? the answers ahead 4:00 p.m. eastern time. mr. evans? this is janice from onstar. i have received an automatic signal you've been in a front-end crash. do you need help? yeah. i'll contact emergency services and stay with you. you okay? yeah.
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welcome back. i'm david faber. some new developments in the case of the enormous ponzi scheme at madoff investment management. frank di pasqualee, the number two at madoff, we have just got notice from the u.s. attorney's office, may waive his right to receive an indictment from a grand jury. they will be filing an information. that is, the u.s. attorney will. this would be a precursor to charges. could set the stage for a plea deal. although we simply don't know at this point.
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it is 4:00 p.m. on wall street. do you know where your money is? welcome to "the closing bell." i'm melissa francis, in for maria bartiromo. and here's what we're following at the close. a triple-digit rally on wall street to end the week, driven by better-than-expected jobs report. non-farm payrolls falling by 247,000 last month. that was much less than economists were looking for. and the unemployment rate unexpectedly fell to 9.4%. that report helping the dollar index rise for the first time in five weeks. and that put pressure on oil prices. here's a look at how we are finishing the day on wall street as things are still shaking out here. the dow up 113 points. it was up about 150, gave back a little of the gains. still up about 1.2% on the day. about 1.4% on the nasdaq. 27 points. hit hitting right at 2,000. s&p 500 up 1 1/3.
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bob, up triple digits but why did we give back a bit at the close in. >> we gave back because they were taking profits in financials, the big names, your citi's, bank of america, even goldman sachs which sort of led the move downward in the middle of the day. but let's not dwell on the negatives. we first did come off our highs, but it was a terrific day overall here, and a lot of the strards were talking about the dollar strength and the fact that risk is really obvious coming back. we've been talking about for a while. money is moving out of safe havens and bonds and into risk, the dollar and stocks. is there a floor on the stock market in there's a big debate here because the bears have been saying forget it the stock market's going to drop in september and october. bulls are now saying look, there are so many people interested in the market any drop is a buying opportunity and that's going to provide a floor under the market, in other words, stocks may drop but not that far here. how about the leading sectors this week? you can see it. it was financials. and yes, we were stronger an hour ago but industrials, consumer discretionary,


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