the board resisted that and ackman brought a proxy contest. he won an overwhelming majority of the vote, something like 90%, ended up garnering 8 out of 14 board seats. and at that point, he did bring a new ceo, an experienced rail executive, hunter harrison, remember that, we talked with him about this. last june was when he brought in harrison. canadian pacific shares soared from $8 billion when ackman first got involved to over $20 billion today. now, in catching up with them, i got the chance to ask him about herbalife too. that's the company that he very publicly shorted. and which just this week reported a much better than expected earnings report. ackman has not publicly commented on herbalife since january of this year, and the stock has continued to climb. what he told me at this point is i haven't covered a single share. ackman wouldn't comment beyond that, but did put out a press release earlier this year laying out his concerns about herbalife's earnings, some thing he pointed out, this is a company that has 18% revenue growth, hug

speaking of bill ackman. bill ackman saying i have kind of lost out on herbalife and jcpenney which happen to be a long investment, so today he announced he is going into another company, a chemical company taking a very significant stake in the company which started to move higher on this news but this time his mormon activist agitator investor. in fact what he is doing is taking this position to say they have thin margins, it can do so much better. he is going to be an agitator there. perfect timing. the ceo of dow chemical has an agitator activist investor because he feels his stock performance and his company's performance and investment what we have in collegeville, pennsylvania, is what keeps the stock doing well. i had an opportunity to do a long interview. much more of that in a moment. but first, what he said about investors taking stakes in chemical companies. >> every shareholder whether it is the activist type or the warren buffett type, if they own parts of the company, their voice has to be hear

we have some ideas on how to add value, ackman says. earlier this month ackman built his position in a large cap investment grade u.s. corporation and some had speculated air products might be the company. just last week air products adopted a poison bill plan which prevented ackman from taking an even larger stake. also news today on another name tied closely to ackman and that's herbal life. our own scott wapner reporting george soros has taken a long position in herbalife, one of his top three holdings. ackman has referred to herbalife as a pyramid scheme and is shorting it and herbalife is up nearly 100% this year. sue, back to you. >> that trade has to hurt mr. ackman. i've got to tell you. josh thank you so much. >> anheuser-busch and imbev moving higher. right now the last trade on the stock is in the green by 6% plus. the world's largest beer-maker sold less beer but it made more money than expected in the second quarter on increased prices and consumer moves to the premium laggers. the company also announcing it will list its s

so" over ackman's short on herbalife stock. surging about 100% this year. the nutrition company is expected to post results any minute now. we'll break those down as soon as we have this, they hit the street. golden opportunity sales event and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. ♪ >>> all right. herbalife is out with its results. the stock's moving. josh lipton is watching. josh? >> reporter: yeah, scott, let me get you those results. it is a beat on the bottom and the top. you saw adjusted 1.41 on revenue of 1.22 billion. remember, the street was looking here for 1.18 on 1.16 billion. in terms of q3 guidance, that's actually light. 1.09 to 1.13. the street was looking for 1.16. also, full-year guidance, though, 4.83 to 4.85. the stoc

be bill ackman or carl icahn? >> bill ackman, because you have more ammunition in terms of being able to effectively fight off ackman at this point. you have questions about his decision making or track record and carl icahn at 77, top of the game. never been tougher. nef been richer. never been more willing to say,say, i will throw another $1 billion in the pie. we have more dell news, so i want to hear from him rather than ackman. >> and what about -- >> that is good stuff. and soon to come, he will drive the most popular vehicle in america with natural gas, and we will tell you about the new option that ford is offering. >>> and the movie of spike lee and the kick starter campaign to raise money for the next film is raising con trtroversy, becausey is someone of his stature going to startup funding? >> and we go the comcast and soda stream and so many more when "squawk on the street" continues. >>> i want to know, are you long neshg america? >> we at ford in the united states are competing with the best compani

let's hit the top trades that kept our stomach's and specifically bill ackman's stomach churning today. jcpenney slotting ten percent after the new york post reported that cit is cutting some product shipments. when there is a sniff of credit problems that's huge. >> this is a problem. >> short the bonds. >> here's the thing about -- i'm actually surprised. i have not been a huge fan of jcpenney and this was ackman's after lunch problem as opposed to his earlier problems. given the size of the offering which they have recently done i think it was a little surprising to see this news if in fact it is true that's a problem. that is really a problem when your financing dries up. >> i would imagine they're trying to get their orders in place for back to school. >> that stuff is going into the storage right now. they have been drawing down i would imagine using cash. also going into the hot season that's a big use of cash. this isn't welcome news at all. there seems to be fear out there when you look at the stock, if this is the case it should be getting hit. >> herbal life famously shorted

now ackman is questioning the earnings and the number of distributors leaving the company. now on to more earnings news. retailer coach is in a clutch situation. sales are softening as the handbag maker is facing fierce competition from michael kors and kate spade. however, overall revenue rose 5.8% to $1.2 billion due to gains in men's merchandise in china. the stock fell $4 yesterday on word the retailer is in the midst of a management shakeup. in the drug sector, merck reported earnings that beat analyst expectations, although revenue was slightly shy and pfizer also exceeded wall street's view, despite a sales drop of its cholestorl-fighting drug lipitor. changing gears - an upcoming scheduled appearance by hillary clinton is creating a dilemma for car dealers. the national automobile dealers' association choose ms. clinton as the keynote speaker for its convention in january. some dealers are fine with it, but according to usa today, about a dozen dealers are objecting. the chairman of the convention committee says "we've hosted presidents from both parties," among the

lori: bill ackman, you know the name. question here, has he lost his sizzle when it comes to herbalife. fox business senior correspondent and author of, "circle of friends," charlie gas joins us. >> going back history, looking at ackman's calls. mbia was a great call. this may turn out to be a great call. he is saying pyramid scheme. the stock should go to zero. guess what? it has gone way above zero. adam: 66 bucks. >> the latest assault essentially says if you bare into some of the latest earnings numbers, we're off the highs but still doing pretty well -- lori: that is dramatic chart. >> that is a dramatic chart. remember his basic thesis is, this is a pyramid scheme. that all they make money is not really selling the product. basically going out and finding other people to sell the product and they get a commission from that. at some point that is going to run out. his latest attack, and this is where you wonder if he has any juice yet, if you go inside the numbers of earnings which were pretty good, pulling them apar

the controversy that ackman brought up has linger. it has with many multi-level margareting organizations, and that headwind has made it look very cheap, and i think that's one of the reasons that a lot of fundamental investors, including us back in the day when i was looking at the hedge fund, we were buyers in the stock. they just looked cheap. we had to weigh the question about whether or not it was a pyramid scheme. we got out with some profits. s we were happy about that. >> meantime, got a question. cnbc options, we'll answer web extra. that's after the show on our new website. stock has a trade that can double your money in facebook. we'll also get traders loss as well and you want to check it out. here's what's coming up next. >> this is gold, mr. bond. >> the bouillon made bucks of money. they have a way to make even more. plus, he spotted out last week, and now he has a big warning sign for small cap stocks. brian stutland will explain what it is when options action returns. ♪ [ cows moo ] [ sizzling ] more rain... [ thund

david: bill ackman i'm told has a 17% stake in the company. his fortunes really lie closely with jcpenney's. william, btig, thank you very much for coming in. >> thank you. david: fox business's american icon series continues. coming up we'll get exclusive live dome mow of latest technologies developed as dow chemical's research center. liz will drink some of the dirty water turned clean by the company. >>> michelin north america announcing plans to hire 1200 workers. the plant in north carolina, is american manufacturing on the rebound? michelin north american president will join us in a first on fox business interview. that is straight ahead. ♪ david: dow chemical is a true american icon. it has been in business since the 19th century. last hour, liz spoke with the company's chairman and ceo. got exclusive insight what he thinks about big name activist investors like bill ackman. he has been in the news today. she has another exclusive on dow chemical's groundbreaking research. and, liz, are you really going to drink dirty water? >> i will

he obviously is not a great fan of ackman. now we have that in common. now i like him. >> what do you think the best deal you've ever done is of all of them? >> i can't. they are all sort of fascinating. i just enjoy -- i enjoy the thing. what i'd really like to do is really do something -- i know this sounds a little corny. i do a lot of charity kind of things. i don't put much time in but i put a lot of money into, education, i like to do things with education. but i thing i can make a difference with corporate govern ans. i think it's terrible. something should be done like what you see what is occurred with dell. i'm using that as an example. the system is rief with that and i think this twitter account, i'm going to give people insights about stocks that i'm allowed to talk about. and i'm going to try to get them -- i'm going to try to put -- if i get enough followers, they don't have to do anything but if you have followers it helps you a lot. >> you're trying to build a following. @carl under score c underscore icahn. >> make that clear. >> you're

liz: looks like bill ackman awoke a sleeping tiger. because as you and i discussed, we've said, herbalife has been around for decades and suddenly now, they have woken up and are fighting back, raising their 2013 view. jared levy. what do you think? >> so interesting story herer ay scarce the heck out of you when you hear ponzi scheme. herbalife, they have a multiple. buying stock. you can't buy stock with fake money. they are beat earnings 15-quarters in a row or something crazy. from multiple standpoint look good. take a step back and look at the company itself. this short selling by the way will accelerate that rally. we'll see a big up move tomorrow. do you buy here? probably wait a little bit for the sell, settle, rather. still a viable company. david: keep in mind as you were looking at the after-hours stock, we had a pop earlier of about 5%. it has come down a little bit after-hours, again this stock was trading at $24 a share back in december. that is when the shark attacks, the short attacks were there. they are sharks and the

how much has bill ackman lost on his best? herb greenberg breaks down the battle as the company heads into a crucial earnings report. that's this evening. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. in a time when the biggest risk is playing it safe

george soros entered into carl icahn and bill ackman's fight. soros is making a huge bet on this one. we have that story up is next on "kudlow." in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. >>> i appreciate, bill, that you called me a great investor. i thank you for that. unfortunately, i can't say the same for you. >> icahn never one to shy away there from a good fight. the stock of herbalife has rocketed higher. now up nearly 100% so far this year, larry. >> up 100%. >> 100%. so what's interesting about this is a couple things. one, you had actually carl icahn, i'll put it to you this way, telling our own scott wapner at our delivering alpha conference re

i'm confusing ackman with icahn with dell. but fed-ex is up $6. >>> barnes & noble ceo william lynch stepping down today this coming after the company reported major losses in its nook digital business. so let's judge the book by its cover and ask what barnes & noble should really be called barnes and what? tweet us at "squawk street" we'll have some of your answers when we come back. ♪ norfolk southern what's your function? ♪ hooking up the country helping business run ♪ ♪ build! we're investing big to keep our country in the lead. ♪ load! we keep moving to deliver what you need. and that means growth, lots of cargo going all around the globe. cars and parts, fuel and steel, peas and rice, hey that's nice! ♪ norfolk southern what's your function? ♪ ♪ helping this big country move ahead as one ♪ ♪ norfolk southern how's that function? ♪ when you do what i do, iyou think about risk.. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. isha

you want to bet with the short sellers like bill ackman. but in a bull market, you want to bet with the concept guys. cold stocks and once again, if you bought netflix and tesla, if you like the car, you like the product, i understand why you're buying it. these are two incredible winners in 2013. they remain popular favorites with the crowd you have to go with when the crowd has you and the tape is your friend. i know facebook today pulled back. remarkable non-stop move from the $26 level where it last reported my larger position and my charitable trust. the stock is due for a fall. thank heavens i'm back to even crowd rang the register, but you know what's gotten hot again? apple has been quietly moving up. stock oes cheap and you get a big move in the president decides this weekend to lift a ban against apple, one that samsung position ed for, that would block it from selling the popular apple 4 to at&t. samsung won a trade suit. but if obama overturns the block, which he is allowed to do, i think you can get another leg up in the former

i like ackman. i'll tell you why. i turned my thinking about him. anybody like with reed hastings and anybody that makes me a quarter of a billion, i like. >> peltz and icahn were two of the many newsmakers at yesterday's delivering alpha news conference. kate kelly joins me with some other highlights. >> it was almost hard to sort of cherry pick some key points to talk about here, but it was a good lineup and i felt as though there was a range of things from policy issues and legal stuff that was interesting to some investment picks. some grand prognostications about the stocks and markets discussed too. a number of people, lee cooperman, i was thinking he was on your panel, but he was on david's, but you called him out of the audience. they have essentially tapered their ebullience on equity saying the market could go sideways before regaining steam. others also predicted a continued and continued backup in rates. greg fleming saying rates could go up to 4% on the ten year later this year and the market has been really sort of unprepared for the m

. >> big ackman is hoping to put his money where his mouth is. wall street journal reporting ackman who runs pershing square capital management, will announce a $2 billion investment in a big company today, one with a market cap of at least $20 billion. the targeted company stock has underperformed the broader market over the past several years. the journal reports ackman won't push for a breakup, but will advocate for operational changes. one company that could fit that criteria, and has been speculated as a possible target by ackman is air products. it has a market cap of $22 billion and stock is up 11% over the past five years. that's right. just 11 prosecution over the pa past five years. the company is a supplier of hydrogen and semiconductor materials imposed a poison pill, used to discourage hostile takeovers. air products says the plan was adopted because unusual activity in its shares. other companies that have been speculated about as mystery targets include fedex and adt. in frankfurt, those companies at this hour are all trading modes

ackman can feel very good. he's not had many days when this is working in his favor. >> i don't think icahn has had to manage the position. watch the television and watch the charts. >> this is a stock that's 3 bucks from a 52-week high. listen, i'm sorry, right now, you just said carl icahn is feeling great about the position, doesn't have to do much with it, and if you're mr. ackman you've got a problem. >> plus the ftc, if they come out and say this is our issue, sales practices in terms of they are mistreating some people, people are breathing a sigh of relief and that's why it's not down more. >> i'll tell what you it will do, it will make the conversation i have with carl icahn this evening right here at delivering alpha all the more interesting as if there wasn't enough going on with the entire dell saga, the shareholder vote held tomorrow, at least schedule at this point so tune in tonight for "fast money" at 5:00 p.m. eastern because, you know what? carl's also big on twitter. he tweeted about deliveri

ackman. >> well, yeah. let's get to bertha coombs who is live at the u.s. attorney's offi office. good morning to you, bertha. >> good morning, karm. we are awaiting a 1:00 press n conference and this is a high profile case for preet bharara who said they are very patient, and according to the complaint, they believe that sac capital engaged in what they call systemic insider trading saying it is part of the culture of the hedge fund for at least a decade. from 1999 at least until 2010. among the things that you have all talked about is the sense of passing on the high ideas and people hired with arn edn edge, one of the incidents in the complaint in fact on at least one occasion, the defendant hired a candidate despite a recognized reputation for insider trading. that candidate richard lee had previously worked at a hedge fund which is not identified is known for being part of that fund's insider trading group. and so they subs subsequeequent informed richard lee as cohen decided to hire ric

>> you know, i think going back to the ackman/herbalife situation. listen, when you have a huge short position, you don't tell people because they can squeeze you. it doesn't matter how good your story is so he takes on this huge short position and stands up in a room full of people, bill ackman, and tells everybody about it. i mean, icahn made it sound like it was's pickings to him. >> art hogan, what about selling caterpillar? i heard a lot about selling caterpillar today which surprised me because it's been such a great company. would you sell caterpillar? >> well, that's a tough call because it's really sort of the china demand story, the sort of industrial demand coming out of china and developing over for now, and if that's the case, very explosive. supposed to come out of super cycles. >> you want to make a comment? >> i can add to what art was saying f.chanos thinks the super cycle commodities is over, that's a real problem with the china story which hurts caterpillar. the other issue, they bought a company in china. they got snookered and he

bill ackman confirmed it is pay more than $2 billion for a 10% stake in that industrial provider. he held will help enroll those eligible in two health plans in 36 states. software maker is trying to help boost the power of one small business. november 11, the public will get to choose which of the final four will get to be a game they add. that is the latest with your business from the fox business network. giving you the power to prosper. ♪ ashley: a shell of american ingenuity is in full force today. business is getting better in the u.s. dow chemical cut the ribbon on a new facility with the promise of more than 1000 jobs. liz claman is live to show us what they will be developing. liz: ashley, we are now inside the lab. that is why i am putting on my protective glasses. to show you the innovation that is happening for every day life. who among us have not stopped towels under door jams or windows to keep hot or cold air out? what about boiling hot roofs? i want you to come meet bill wagler. >> nice to meet you. you heard me talk about the feeling paint and boiling hot rooms

bill ackman is the guy on paper has been betting against thisco. you can see how the stock is moving up. the real story is it is up 80% year to date. huge move for herbalife. nobody has really made this -@connection yet, but we're goig to. the company at the center of at least one embattled hedge fund questionable trades will no longer be standalone company. a pharmaceutical merging with generic drugmaker, one of three major mergers announced today. traders at the new york stock exchange, cme group and the nymex. finishing out almost all of july. in august that will be active or quiet, what do you think? speak of the last couple of trading days of any example, i think it will be pretty quiet. today is very quiet. interesting although the day is not over, very similar performance to what we saw on friday. slowly climbing out of the all all afternoon. the bottom line is we are at the earnings season as he pointed out to the folks. liz: left a point something else, teddy. three names which we just switched over, but those are new highs today. the actu

. >>> losing money today, bill ackman. the hedge fund giant made a billion dollar short bet on herbaliflast year. he infamously called herbalife a ponzi scheme, you remember that but herbalife's stock has been on a tear recently and topped estimates fork second-quarter earnings. reuters report, ackman losts, wait for it, $300 million on that short bet. ouch. >>> making big money with really no effort, michael strahan, co-host of le with michael and kelly, selling his belleair mansion f $11 million. he bought it just a year ago for $8 million. sew made three million bucks. heidn't do a single renovation. not bad. >>> all right, to detroit which is still not making money by the way. today a u.s. bankruptcy judge set october 23rd as the start date for a trial on any potential objects to the cits bankruptcy eligibility. but across the street from the motor city sit oakland county. it is one of the wealthiest counties in the country with a aaa bond rating. it population has popped while detroit's has plummeted. brooks person th

i like phil ackman, he made me a quarter of a billion dollar. now it's more than a quarter billion now after the move yesterday in herbal life. all right. generac power system earned 95 cents a share. revenue was above wall street forecast. joining us now, the ceo of generac, which watched for a while in fairness, i have one, aaron, from my house, in fact, we are thinking it hasn't been the stormiest spring. aaron, just last week or the week before when it was hot, the heat weighs down the power line when there is that much current moving. we lost the power like last week. we didn't lose power because of generac. our neighborhood was down. yeah. will catch up with you eventually. >> you can't match last year, eventually. >> well, the second half our guidance doesn't assume the storm. you are right. they get tougher in the second half of the year. the small portable generators, the home standby category, the products that you guys own, that category has kind of come to life in the last few years. it's taken off. >> well, when sandy hit, i'm not s

plus, is the street ganging up on bill ackman over herbalife? we'll talk about it, and the one stock you might just be kicking yourself over. that's all ahead. stick around. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. [ male announcer ] come to the lexus golden oppor

. >>> losing money today, bill ackman. the hedge fund giant made a billion dollar short bet on herbalife last year. he infamously called herbalife a ponzi scheme, you remember that but herbalife's stock has been on a tear recently and topped estimates fork second-quarter earnings. reuters report, ackman losts, wait for it, $300 million on that short bet. >>> making big money with really no effort, michael strahan, co-host of live with michael and kelly, selling his belleair mansion for $11 million. he bought it just a year ago for $8 million. sew made three million bucks. he didn't do a single renovation. not bad. >>> all right, to detroit which is still not making money by the way. today a u.s. bankruptcy judge set october 23rd as the start date for a trial on any potential objects to the city's bankruptcy eligibility. but across the street from the motor city sits oakland county. it is one of the wealthiest counties in the country with a aaa bond rating. its population has popped while detroit's has plummeted. brooks pat

nothing bad -- hey, the guy -- be honest with you, he never would have been looking at herbalife it ackman hadn't come out with that report. >> trade of a life here? >> i want to say you were amazing with carl yesterday. that was one of the best live interviews and i go to hundreds of conferences. i want to bring that out. carl was incredible yesterday. >> carl was incredible. >> on herbalife this looks like if you're short this name and we know who is, this looks like a burning house with the doors barred. i don't know how this is going to resolve itself. >> 5% is a pretty good move for a day for this stock. >> also i think his thesis on it, just saying when off huge short position and you come out and make your case in front of a lot of people who are managing a lot of money, you can get boxed in there. if this is the case, if he is forced to cover here, he being bill ackmaackman, there's a bigp coming. >> it's still trading at ten times earnings. you can make a fundamental case to be owning this one. >> let's move on, talk about google, reporting second quarter earnings today after the

ackman on the loose. thank you. >>> now, is president obama breaking the law by delaying or tinkering with obama care? joining us is a legal scholar who wrote an informative piece in today's "wall street journal," michael mcconnell. he'll be up next on kudlow. vo: traveling you definitely end up meeting a lot more people but a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful. avo: more travel. more options. more personal. whatever you're looking for expedia has more ways to help you find yours. (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scot

. >> can you say pain if you are bill ackman, and 20 million shares short. you can do the math there, and that is $80 million today, and that is all losing now. well above where the short took place. this is without these continued rumors of could they borrow money, and will they borrow significant money to institute a large one-time and perhaps dutch tender for 30% of the company. we don't know. we would do that for your reported earnings if you do it at all, carl, but the numbers are strong enough to put the stock over 60. >> a lot of enema jokes on the street. you can't say herb life without enema. and today, the charitable trust indigo partners will no longer hold a stock in the company, and beautiful chart as the airlines have done all week, but citi cuts to the neutral and 37 on the price target, and maybe a little bit of a turn. we have seen a turn in the transports in large, but maybe the airlines are beginning to have to struggle to set some new highs. >> exactly. you mentioned a term that is another space which is to watch the financials which are

the controversy that ackman has brought up has lingered, as it has with many multi-level marketing oh,s. that headwind has made it look very cheesm i thiap. that's the reason that we were buyers of the stock. it just looked cheap. we had to way the question about whether or not it really was a scheme and we got out with some profits. we're happy about that. >> earnings on herbalife out on monday. >>> got a question out there? send us a tweet @cnbcoptions. tonight, scott has a trade that can double your money in facebook. you'll also get great trader blocks as well, so you want to check it out. here's what's coming up next. >>> talk about the golden touch. >> this is gold. >> carter and brian have a way to make even more. plus, now he's got a big warning sign for small cap stocks. brian will explain what it is when "options action" returns. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-dri

that's holy grail for any of these hedge funds, ackman has been after it for a while. why you go into it with him on an unidentified target is not clear to me. we talked about fedex up 6% on speculation it might be that. >> there were a couple in the hopper. >> permanent xap capital to anyone, why? you have to have faith and almost not need that money. >> isn't that business? isn't that for the top tier guys? they don't do it because you value their spread sheets, you know, you do it right, you should be getting money and at least the part of the business you have a high water mark. you have the ability. money has the ability to flee should you not be performing. may happen. may nochlt permanent billion is what they all want. if you don't ask, you will never know. >> every year i'm coming in, putting my feet up on the desk, making more money than 90 million people combined. >> let's spend some time with our guest host, j.p. morgan funds, reuters, we have been talking about during the break what was happening with bernanke yesterday. you feel like that's still the most

ackman versus icahn. always a bull market somewhere. i'm jim cramer and i will see you tomorrow. >> they have what we need... >> over 370,000 barrels per day in oil production. >> ...and we have something for them. >> they're buying big boats here, airplanes here. we just should not be enabling them. >> the bonds between the united states and azerbaijan are deep, important, and durable. >> are we making deals with the devil? >> more children are dying now than in the 1990s before they discovered oil. >> people -- they were abused by the system. people -- they were tortured and

somewhere bill ackman is weeping i'm sure. >>> meanwhile losing money today, investors in jc penny. cit, a major commercial lender stopped backing deliveries from small manufacturers to jcpenney stores. that isrd coulding to "the new york post." after meeting with executives yesterday, cit reportedly got nervous about jcpenney's finances. that report hammering jcpenney's stock by more than 10% in the final minutes of trading today. >>> hoping to win a record amount of money? tennis players at this year's u.s. open. this year's singles champion will take home 2.$6 million. that is an increase of 37% compared to last year. like they need it. maybe i'll win. who knows. >>> now to a radical idea coming out of california. the power of eminent domain is not typically neighborly to most homeowners but one city is working to change that, richmond, california. they hope to use the seizure power to save foreclosed homes. it has not been done before. with me one of the biggest proponents of this plan, cornell university law professor robert hackett. welcome to the show. one of the biggest comp

ackman versus icon. i'm jim cramer and i will see you tomorrow. >>> how can we fix detroit? over the last few days, believe it or not, several pundits from the right and the left are joining me in a column i wrote invoking the name of jack kemp. it was kemp who came up with the idea of tax-free enterprise zones to revitalize destroyed urban areas, and it worked in harlem, as you'll see in a moment. why can't it work in the motor city? here's something that's not working. obama care. now the a.p. fact-checking crew has caught president obama in, let's say, some misleading comments about the health care law. >>> and phil michelson is the hero of the golf world after his stunning final round nets him the

ackman versus icon. i'm jim cramer and i will see you tomorrow. >>> how can we fix detroit? over the last few days, believe it or not, several pundits from the right and the left are joining me in a column i wrote invoking the name of jack kemp. it was kemp who came up with the idea of tax-free enterprise zones to revitalize destroyed urban areas, and it worked in harlem, as you'll see in a moment. why can't it work in the motor city? here's something that's not working. obama care. now the a.p. fact-checking crew has caught president obama in, let's say, some misleading comments about the health care law. >>> and phil michelson is the hero of the golf world after his stunning final round nets him the british open championship, but the tax man is not impressed. wait until you hear just how little of his winnings lefty is taking home. all those stories and more coming up on "the kudlow report" beginning right now. >> all right. we do have some breaking news right now. we'll take a look at it, a live look at laguardia airport in new york city. the nose gear of a southwest airl

the company could be a takeover target for bill ackman's square. mike, apd. activity here? >> there was some. this is not -- seen on activity. probably trades less than five contracts a day, but today, we saw more than that. traded about 20,000 contracts overall and that represents nearly half of the open interests before today's activity. the most activity contract before the end of the day was the 105 calls in august. people were paying about $3.60 for those. those that believe the stock would be 109. but at the end of day, a lot of activity in the 110 calls. that trading about two minutes before the close. for the most part i think options traders provided -- that's what they were doing. >> thank you mike. still ahead, a look at some of the biggest movers and shakers. stick around. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ ♪ all on thinkor

carl icahn saying they haven't sold a share and the subject after billionaire brawl, icahn is long and ackman is short. maria, back to you. >> josh, thanks so much. and through the day of trading, 45 minutes before the "closing bell" sounds. off at the highs, we have been up 118 earlier, the dow up 76, bill? >> meanwhile, pepsi shares hitting a new high today, maria, after pushing for changes at the company during our alpha conference. but not everyone agrees with nelson pelts. we will get to the other side of the argument and if pepsi belongs in your portfolio. that's after the break. >> and later in the program i will talk with blackrock ceo larry fink. what does he say in the next leg for this market? we will talk about that and a lot more. >>> also coming up next, sir charles barkley is here. he joins me in lake tahoe. he is the long shot to win the american century classic here in tahoe. we will talk strategy with him moments before he tees off. plus, did you know he watches the market everyday? that and more coming up on "closing bell." stay with us. charles barkley, next. before global

bill ackman of pershing square capital management said he plans to make hundreds of millions. both declined our request for an interview. >> it is a betting game, folks. it's a betting game. >> congress now seemed shocked and outraged by the consequences of its decision eight years ago to effectively deregulate swaps and derivatives. >> this is casino capitalism. that's what it is. it's casino capitalism. >> and various members of the house and senate have hauled in the usual suspects to accept or share the blame. >> were you wrong? >> credit default swaps, i think, have serious problems associated with them. >> it appears to be the first step in a long process of restoring at least some of the regulations and safeguards that might have prevented or at least mitigated this disaster after the damage has already been done. >> where do we go from here? >> we need the most dramatic rethinking of the regulatory scheme for financial markets since the new deal. if anything has demonstrated that imperative, it's the economy right now and the tragic circumstances we're in. >> how much

he's been on the other side of ackman as well on this one. >> he doesn't look happy at all. >> i think he's happy based on the herbal life stock move. we're going to talk about that tomorrow. there he is roblt chapman. still ahead, with the dxj down is bk still standing by his winning short? find out after the break. she's always been able to brighten your day. it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-ter

you heard about the billionaire brawl here, icahn is long, ackman is short. back to you. >> all eyes on herbalife after the bell. we'll keep you around to watch that with us. >>> right now, about 50 minutes before the closing bell on this day at the end of july. we have the dow that's down just about 29 points. the s&p is down just about 5. >>> talk about a bearish call. our next guest says the dow is going to reverse course and reverse course in a dramatic fashion and hit 5,000 before we ever see 20,000. he's going to make his case next. >> yeah, we're interested to see how he makes that case, especially given the bull market. >>> we also have starbucks reporting better than expected earnings last week. the stock is up 50% over the past year, and now the store is rolling out a new initiative to get you and your smartphone inside. stay with us. we'll have that story. we'll be right back after this break. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their

bill ackman, everybody, is that a good thing? are they stirring up the right kind of dust? >> well, you go back to the '60s when i first came down to this place, what you had was bootstrap financing, someone who would look at the sum of the parts, figure out how to break it out, and in quotes the corporate raiders. charlie bluedawn, gulf & western, jimmy lings of the world. so this dynamic of the free market changes overtime. and when you give money to individuals or organizations, 1 in 20, they're absolute return oriented. they don't want to beat the market. they'll be active. >> you're talking about what navistar will be able to earn, really looking at earnings. give us the most important screens you look at when you're picking stocks. >> well, we like to look at how much we'll lose first. >> the downside risk. >> -- they only had one engine and certain way to meet epa requirements, didn't have the backup we thought they did, and we blew that one. on the other side of the coin, how much can they earn on the upside of the cycle and what money can they -- is there a risk, m

ackman might be taking a stake in fedex through a new fund he's starting. other stocks in the group, in the transports, like matson, csx, jet blue, all on the upside. and the outlier, the homebuilders, on the upside. my guess is there are some people betting that perhaps the spike in mortgage rates may not have as much of an impact on sales as some people were afraid of. that's still a guess now. that's an unusually big move in the homebuilders today. how about i.t. consulting? we had a downgrade of ibm today by goldman sachs. still, they like the stock but they made it very clear that the slowdown in i.t. spending will affect ibm as well. accenturu to the downside. and the bonds, two days in a row, to the upside. we haven't seen this kind of stability in a while. that's also helping the market. finally, bill, s&p 500, 1,669. that's what you want to look for. that's the closing historic high. we're only about 1% away from that. despite a lot of the cynicism about the earnings picture for this quarter. back to you. >> all right, bob, thank you very much. >>>

ackman may be taking a stake in fedex to a new fund they are starting. no confirmation of that. just talk on the street. you can see the influence they are having but some of the other air freight stocks are up as well. a risk-on. all the industrials, materials and financials, second day in a row. that one has happened. finally just put up the s&p 500. i keep pointing out something, even though a lot of people don't like the rally. 1,669 is the old high. less than 1%. >> let's bring kenny polcari into the equation here. the market does seem to have its legs underneath it. we're in earnings season but so far so good. >> we've had one earnings, alcoa came out and beat the number by a penny so everybody is supposed to celebrate. i'm confused because we keep talking about this. the bar is low so it will be's for the companies to beat. the other thing, imf came out and cut global growth forecasts an encouraged everyone to keep stimulating their economy, so in my opinion what you'll hear tomorrow from ben bernanke is full steam ahead. we're not changing anything, and we're set to go u

bill ackman has had a big position in jcp and be a champion of the company. it's losing ground, even as herbalife, his great short, has been moving higher as it gets more support, as we learn george zoros has taken a position in hea herbalife. >> jcpenney traded lower in march, after cit place add 1% surcharge on jcpenney invoices. if, in fact, cit is tightening the screws, this is -- this gets worse here. jcpenney now down better than 9% as we approach the close. >> and it is -- yeah, the lows of the session right now, pushing the markets lower perhaps, as well, just in terms of mood. but the dow is down 12 points as we head toward the close. but even with that, july has been a red-hot stock for both -- month for both stocks and commodities. we want you get you a recap of this month. we have seema looking at the red-hot technology stocks. we have bob pisani with the overall market. let's start with bertha coombs with the energy and metal sectors. >> a big reversal when it came to gasoline. you may have felt the pain at the pump as a result. gasoline snapping

vague discussions that ackman may be taking the position in fedex based upon a new fund they may be starting and described some of the parameters around that. we don't have any confirmation about that. you can see the other ones like matson, one of the big ocean freight carriers, csx, airlines are up. amr is also on the upside, as well. so a broad swath. not just fedex, but a broad swath of the transports on the upside. and the other is the homebuilders. the only real news, core logic said dlink we delinquencies are at the lowest since 2008. nobody has given me any ideas on this. finally, the banks, i am waiting, a tough and interesting quarter for earnings. generally, they're the bright spot, the financials. jpmorgan, wells fargo reporting on friday. the good news is overall, the yield curve, will help the banks. i think mortgage refis will be down, rather noticeably. but that's the later part of the quarter. i'm not sure how much of an impact it will have. the one thing i want to find out is the bond exposures. some of the bonds in the active trading account portion of the companies have t

. >> you have been lumped in, or in the category of carl icahn, bill ackman, name your activist of the moment. why do you think you're different than them? >> first of all, they're both friends. carl is a very, very old and dear friend. i think we had dinner a couple of weeks ago when we said we knew each other about 40 years. i was 8 at the time. but we go back a long way. look, the background is operating businesses. okay? we run businesses, we built businesses as a ceo. we ran, built, created and sold -- >> all right. we're going to step aside. the news has been made -- we want to explore it a little bit of what nelson peltz has said about his deals -- dealings with pepsi and mondelez. if you're just joining us, they're at the delivering alpha conference in new york city. he told andrew sorkin, or admitted, he asked pepsi to buy mondelez for $35 a share. but as he said, pepsi doesn't love the deal. that was a quote from nelson peltz. we want to look at this deal. pepsi and mondelez trading higher. mark schwartzberg is a beverage analyst. first of all, just your thoughts. you've writ

. >> i remember when ackman went into png. they said we love that ackman loves our stock. i guess you can say. that nelson peltz is a smart investor. that's all you got to say i guess, right? >> again, we'll -- >> but you welcome, i mean, i don't, if i get an 80-year-old bern that says they're a fan, i love blue haired. i love everybody, i love anybody that loves me. if someone buys my stock, i think that nelson peltz, what a savvy guy. >> we love all our investors here. >> embrace. all good. >> ellen, we want to thank you for coming on today and appreciate your dime on this business morning news, congratulations on the earnings. >> thank you a lot. thank you. >> you think i'm attractive? i would like you to think that? do you? in some ways do you think i'm sort of attractive? >> yes. >> thank you. >> a long pause. >> i'll tell you which way. >> all right. i welcome. >> i want -- >> lovers, not haters. >> i would give her that advice, yeah, we loved it, nelson. >> also you need love and average? >> i'm needy, that's probably the one thing that's not so attractive about me,

you know very well bill ackman and pershing is shorting this one, not hot on this one. on the other hand you had people hot on this one like soros and giving herbalife a new boost and new high. back to you. connell: thanks, nicole, very much for that. the jobs number today, july adp report, it revealed u.s. businesses created some 200,000 jobs this month as companies hired since the fastest pace since december. look ahead to friday will the government report give us the same good news? we have the senior vice president at monster worldwide and bob bauer, principal global investors. you think odds are on a good report on friday? >> i think we could have a good report on friday. the adp was better than expected. they revised up the last month. we had really good growth in small and medium-sized and large businesses all the way along and i think adp is a pretty good representative of the country. so i think what it shows is that the u.s. businesses as a whole is kind of understaffed. we expect even a pickup in job pace from here. connell: joan, what you always do for us is