really good after-hours action for ibm. in the meantime, more than 100 institutional investors with combined assets of nearly $2 trillion have been rubbing elbows at this year's delivering alpha conference. there've also been big headlines today. kate kelly is in the thick of it. give us the highlights, because there are so many. you need to pick out which ones are important for us. >> that's absolutely right, mandy. it's been an interesting day. the equity bulls are back this year, but they sound a bit tapered, if you will. they still like stocks although research continues to matter. that's not a surprise. returns may be more muted this year according to cooperman. on the fixed income side, many people say they were just as surprised as the rest of the market at the back up in rates and how fast it moved and that further hikes may be in store and may continue to surprise the broader market. still, housing has gains in store, according to john paulson. the reformed housing bear, who told us in the first-ever television int

todd, what do you think of ibm? >> as i wrote you this morning i think ibm was going to bounce. i thought they would beat earnings. i didn't realize they would miss on one side. the stock has been beaten down through this it has not participated in this rally whatsoever. it was pretty much a no-brainer it would get a bounce. the question will it be able to sustain the bounce and go with the market and at new highs? that is more detailed when the numbers play out and the street gets a good luck. the bounce off 194 is not a big surprise. i would like to see if it holds up here. liz: intel is trading above where it closed. give it some time -- david: people looking for bargains. liz: exactly. david: intel and ibm that really haven't participated in the rally the past three months, when there is any sign now to get in people do get in and as todd and lee were saying. >> thank you, todd. thank you, lee. we'll see todd in a few mings when the s&p futures closes. david: doves versus the hawks, ben bernanke is trying to calm fears if taper is just around the corner. some fed presidents

ibm actually lifted its forecast. it's doing some cost-cutting, and it's getting into the cloud area more. what do you think about this stock and this company? - well, it's a great company. they are really well diversified, and you see that people like when they do things like getting into businesses where they can compete, like the cloud. so, they are coming out with a pretty solid quarter. they are guiding forward pretty well, and people like the results. - shares traded around $202 after the close last night. would you be a buyer at these levels? - you know, i don't think that you'll go wrong over the long term holding a stock like this'i would wait a little bit. - and finally, intel. a lot of people saw this coming: earnings slid, but then again, everybody knows that pc sales are down because people are buying more tablets. what do you think about intel? - intel's a stock that we've talked about before, and a really great earnings play, i think, because the expectations were so low and people weren't thinking that

ibm raised four-year outlook. the ceo said ibm deliver add strong performance in mainframe businesses. she says she expects continued improve the through the second half of the year for the big blue. a slightly different story for intel, second quarter revenue of 12. 8 billion-dollars reached it. the semi conductors out look came in shy. forecasting sales of $13.5 billion. analysts voiced concern regarding intel's delayed entry into the smart phone space. intel's new ceo brian in the press release wrote he's made it intel's highest priority to ever the mobile market sector and personal computers will become a hybrid of the pc and tablet so something interesting to watch. >> and interesting to see how investors react to this information tomorrow. >> absolutely. >> thanks for coming along. >> very good, seema thank you. >>> ebay the online auction company's profits grew year over year but shy a penny of estimates. revenue rose 14% but the ceo warned of head winds in europe and korea in the second half of the year. e

ibm, sandisk and intel. let's start with intel because a dow component, such a giant in the industry, what can we expect? nicole: such a lineup. we have seen it year to date slightly to the downside today, but investors will be watching to see what the new ceo has to say. the first earnings under the new ceo, he took over for paul. we will see with the mobile market. sales of pcs kimono those have fallen. 11.4%. so not good news there. they are obviously competing in a huge market of tablets and smartphones, so we will get more on this throughout the next hour or so. the dow component one to watch entering the closing bell. liz: everybody has to stick around after the bell because we have immediate reaction from the chipmaker chief financial officer stacy smith. we will ask them about the set-top box and the chips they came out with a new generation of them, they have double the graphic stability. incredible things come from this little chip with more than a billion transistors on it. they are set to vote to

we can beat ibm to market with ibm's own technology." >> we'll take their idea and run with it. >> absolutely, because ibm doesn't believe in their own idea. >> and then oracle was born. >> right. >> that's next when 60 minutes on cnbc returns. [ticking]  mom, dad told me that cheerios is good for your heart, is that true? says here that cheerios has whole grain oats that can help remove some cholesterol, and that's heart healthy. ♪ [ dad ] jan? [ chainsaw buzzing ] humans. sometimes, life trips us up. sometimes, we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions. like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... to speak with an insurance expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save

we can beat ibm to market with ibm's own technology." >> we'll take their idea and run with it. >> absolutely, because ibm doesn't believe in their own idea. >> and then oracle was born. >> right. >> that's next when 60 minutes on cnbc returns. [ticking] hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy. bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less? ahh, oh! [ garth ] great businesses deserve unlimited rewards. here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? [ticking] >> was a college dropout working at vari

dow components ibm and alcoa. ibm downgraded today by goldman. kicks off earnings season with a beat. >> b & n ceo resigning. >>. the latest on the asiana airline crash in san francisco as investigators try to piece together what happened in the cockpit. a live report from the scene. >>> first up, shares of ibm falling in the premarket, downgraded by goldman to neutral from buy saying it sees pressure on the growth markets and revenue streams. interesting note, guys, they say the whole reason to add ibm to the buy list back in august of 2011 was some of these higher revenue streams to sort of smooth out the cycle over time. they think that's now coming in to what they're calling a challenging period. and say that the quarter will bring more volatility than investigators are accustomed to. hasn't really paid off for goldman as a bet since adding it to the buy. ibm up 16%. s&p up 39%. >> wow. >> see if that sets the tone for earnings season. we know that the stock hasn't gone up as much lately as earlier. >> facing head winds and questions. virgini

we've got earnings from yahoo, intel, ibm, microsoft, google and ebay. so which of these names got the best opportunity here? let's make the call. what are we expecting in technology? sort of like a wide array of expectations. >> well, you mentioned ibm in there, i don't think we can get too excited about that one. looking further down the road, that's going to impact hewlett because the services side was one of the places they were going to be optimistic. yahoo has had a heck of a run. and i have a hard time imagining that marissa has blown the doors off. >> i think yahoo is going to be more about what is said than the numbers. and i think the same thing is true for microsoft. microsoft unveils the big reorg, so i don't think what they have to say as far as the numbers is going to matter much either. >> i think q2 earnings is baked in the cake as far as the numbers are concerned. i think it's all about the commentary for the second half. and when you think about the bernanke dialed back some optimism from a few weeks ago about the u.s. economy here, i t

john ford has the details on ibm and intel. john? >> ibm call going on right now. we're about 30 minutes in q and a just started. management making the case that they are running a type ship. we saw the outlook excluding work force balancing up 20%. we saw service coming in better than expected by nearly $2 billion making the case that between acquisitions and other things they're well positioned for the future. analysts questioning how they can be so sure that the second half is going to look as rosie as ibm is painting it in terms of profitability. that's going on right now. intel's call going to start any minute. >> let's trade this briefly. there's lot of skepticism about some of the higher margin areas. they performed in those specific areas. >> the skepticism was there because the last quarter was a disaster. this quarter was fine. people take away two things. margin is better. you mentioned that. revenue missed. given the eps beat we saw today, you would have hoped that the guidance going forward on the eps side would have been better. that's why you saw the

we've got earnings from yahoo, intel, ibm, microsoft, google and ebay. so which of these names got the best opportunity here? let's manke the call. what are we expecting in technology? sort of like a wide array of expectations. >> well, you mentioned ibm in there, i don't think we can get too excited about that one. looking further down the road, that's going to impact hewlett because the services side was one of the places they were going to be optimistic. yahoo has had a heck of a run. and i have a hard time imagining that marissa has blown the doors off. >> i think yahoo is going to be more about what is said than the numbers. and i think the same thing is true for microsoft. microsoft unveils the big reorg, so i don't think what they have to say as far as the numbers is going to matter much either. >> i think q2 earnings is baked in the cake as far as the numbers are concerned. i think it's all about the commentary for the second half. and when you think about the bernanke dialed back some optimism from a few weeks ago about the u.s. economy here, i

going to be a weight on to ibm stock. shares down 1.5% so not crushing the name. keep your eyes on accenture. when they cut their forecast a week and a half ago i believe it was you and i that said watch ibm. >> we did say that. why don't we move along and take a look at what's happening with the electric car-maker tesla. >> going to be in the nasdaq 100 and will replace oracle. big move up by tesla. this stock up 249% year to date, though watch out though because i was reading an article today, north carolina is trying to ban sales of tesla to protect the auto dealership network and new york state hinting around. something to keep around. >> maybe international growth will maybe up. lots of orders coming in from places like hong kong for the tesla and sirius xm radio >> another car story. satellite operator upping its subscribers and with all the new subscribers it added for the second quarter it's now above 25 million subs, can all listen to cnbc at the exact same time. a car sales story because when you buy a car it's got sirius. i'll never own a car if it does

we've got earnings from yahoo, intel, ibm, microsoft, google and ebay. so which of these names got the best opportunity here? let's make the call. and just in general, what are we expecting in technology? sort of like a wide array of expectations. >> you mentions ibm after accentra. i don't think we can get too excited about that one. looking further down the road, that's going to impact hewlett because the services side was one of the places they were going to be optimistic. yahoo has had a heck of a run. and i have a hard time imagining that marissa has blown the doors off. i'm not expecting all that much at this point. >> i think yahoo! is going to be more about what is said than the numbers. and i think the same thing is true for microsoft. microsoft unveils the big reorg, so i don't think what they have to say as far as the numbers is going to matter much either. >> i think q2 earnings are baked in the cake as far as the numbers are concerned. i think it's all about the commentary for the second half. and when you think about the bernanke dialed bac

want to take a look at ibm. big name stock, lots of people own it, it's in the dow of course, goldman downgraded it. look at it go down. 1 1/2%. that puts ibm at 192. come in, nicole, i'm back from vacation. telllme about another dow stock, dizzily, the lone ranger, tell me about it. nicole: let's take a look at disney. up 1%, we watched it yesterday after "the lone ranger" over the weekend. i enjoyed the music, however, the movie was a flop. and basically it brought in 50 million and despicable me brought in 150 million. so that should tell you something right there. stuart: basically we're talking here and giving a movie review on a tuesday morning after the weekend. we're not really seriously looking at the financials of disney which doesn't care about 100 million write-off at all. that's why the stock is up. a alcoa kicked off the yesterday. >> and they beat the expectations on earnings per share, on the revenues, on the outlook. good news, it's up 1%. however, it's interesting when you broke down the report

but it beats the declining revenues that ibm got. software isn't going to be as profitable as people think. but i really want to stay away from oracle even more so now that i hear how s.a.p. seems to be bearing down. the environment has gotten really difficult. google reported a not great number. in the end, the real winner may be the company that tech enthusiasts love to hate right now, and that's salesforce.com. you will never hear the ceo say he didn't hear it coming. his whole company is built on the premise that that the cloud is the only way to go. no wonder the multiple is high. maybe salesforce deserves it. stay with cramer. >>> keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions, #madtweets. >>> there's a continuing theme here. the competition seems to have caught up with everyone. ibm versus microsoft versus salesforce.com. or google or mobile, which was not that good tonight. or whether it be just the kind of -- just incredible tectonic shift that has made it so the margins are falling a

>> i think she -- she's been with ibm a long time. and she was a big part of their growth market initiatives which is one of their four big initiatives going forward now. so i think she is the right one. they need to grow in these emerging markets and, you know, big initiatives in china, but also big initiatives in africa, which you haven't heard a lot of other companies talk about. so it is cloud, it is big data, and growth markets are very, very important to ibm and she was an important part of that. >> at this point, it is still corporate, servicing, big end entities and also some hardware but keeping things running and designing systems and things like that. >> software, number two in the world in software and it is half of their profits. >> wow. >> so hardware, if you look at software in services together, it is 83% of revenue, and essentially all the profits. >> those glasses, you're almost wearing a main frame on your face with the google glasses. >> yes. they have watson. we talked about watson last time, very excited about wa

i this i that some of the ibm research facilities come close. some of the work. i mentioned a precise fabrication and particularly. work at harvard and elsewhere the particular breakthrough was caltech. working. and structures are growing. and now larger. if they take them to the structures and the circuit board. >> dr. drexler, you cite two influences. two books limits of growth and silence yes. why would the author of the book become interested in the long-term technologies and decades ahead. my life. when the environmental movement of rising and shared concerns with the time that have turned out to be entirely too real with the ecological activities. and limitations. and and the by products of industry. co 2. and i began to ask is there away out of the box? is there a transformation of the human relationship to the world that is mediated by technology? >> is the way of changing the way obtaining resources and making things and living that would with the limits of the earth. that is what set me on this path. into future technologies and scientific and technolog

ibm had its cloud growth just like oracle did, but a funny thing happens that even s.a.p. admits. it seems to squeeze the margins of traditional businesses that are so important to these companies. these i.t. giants still rely on non-cloud software sales for the bread and butter. everybody wants to admit that going from heavy licensing revenue to lighter cloud sales really makes it a difficult transition. meanwhile, sandisk blew the numbers away. still, though, because of weakness, i think they're being conservative. after these reports, there was no doubt whatsoever that the old fashion expensive software with hefty licensing fees rapidly become a thing of the past. that's a margin that may be going away. maybe microsoft is feeling that too after that disappointment in the quarter. at least relative to most recently heightened expectations. we also have the personal computers were a high margin of business. ultra mobile, as intel calls them, are the bane of the existence of a company like intel. by the way, and bad for dell, too. i might add, intel, what are they doing? they boug

so, too, is ibm. that stock up 2%. because of its price weighting at almost $200 a share, a big mover. if ibm and financials can stay up, you can expect where we are this morning to prevail absent some change in tune from the chairman. >> some of these all-time highs, for instance, a target bog back the highest level at least to 1967. 3m going back to 1965. a lot of history being played out. >> don't overlook what's happening with oil because we are watching wti which has jumped to 16-month highs. that's the other side, carl, of the stronger u.s. demand story. >> q&a continues. let's get back to washington, d.c. >> let me change the topic real quick to housing. >>> all right, thanks. welcome to "the halftime show." four hours until the close. green arrows across the board on this big day in the markets. here is what we're following on "the half." google glasses, what does one of the street's best analysts see for the company, the quarter, and the stock? >>> cat or dog? jim chanos goes short so why is one of our traders

ready in watson is the ibm supercomputer that pummeled the two great of the "jeopardy "champions. now the set is on display at the computer history museum. you can try against watson himself. >> maytag and kitchen aid appliances, what is whirl pool? >> you start off just computer, no big deal, and then you realize that the questions are hard and you do not know the agencies. you realize watson does know the answers. >> the ibm research officer teamed up. >> history and geography got ugly. >> we held our own at business and technical. >> he got it wrong. in the end, watson beat us by more than double, and the museum curator says you do not feel cheated but outsmarted. >> people forgot that watson was a computer and treated it as another contestant. >> watson's ultimate purpose is to help people by digging up information they may not have thought to look for themselves. >> give it a question, in english, and you get an answer. >> watson is used in medicine before soon he will be in customer service, with tech support asking watson a question rather than putting you on hold. >> the l

plus take a look at ibm. expectations are $3.77 per share for the second quarter. $2,537,000,000,000 in revenue. currently it's been trading down lower today, trading down 7% over the last three months. ibm is coming off an uncharacteristically disappointing first quarter. that was the first time that did not or -- meet or beat estimates in nearly eight years of treating that to the failure to close deals for middle where an server division. analysts will be watching for updates on that after the bell. morgan stanley is concerned about the ibm international market share same weaknesses in latin america and asia could deal disappointing numbers. international accounts make up nearly 25% of ibm's sales and a lot of the growth over the past few years. tracy: a lot to watch later on today. ashley: it is. tracy: banks. remember to keep it here for full coverage and analysis of all these earnings starting at 4:00 p.m. eastern on after the bell. ashley: a busy session. billing mistakes adding up to billions of dolla

doctors now counting on the ibm computer known as watson for a life-saving battle. dr. holly phillips shows us why watson could be the future of medicine. >> ladies and gentlemen, this is watson. >> reporter: two years ago, ibm's super computer watson beat the champions of "jeopardy!." >> now, we go to washington. we're looking for bram stoker. >> reporter: now taking on a new challenge. watson is in intense training to help fight cancer. >> what we are creating now are a generation of computers that can learn from the data that they see. and make conditions. >> reporter: oncologist mark kris is collaborating with ibm for lung cancer patients. >> there's millions of people with lung cancer. the vast majority of those get the drug treatment. the idea is to use watson technology to make better treatment decisions. >> reporter: watson has already injected more than 600,000 pieces of medical evidence. 2 million pages of text 26,000 clinical cases and had almost 16,000 hours of training. >> a substantial part of it is self-taught. it's called machine learning where watson is

then there's ibm, big blue had been a machine when it comes to eps growth, managing to keep its results predictable. jane has been working to reign in expenses, we'll see if it was enough. on thursday, nokia reports before the bell all eyes will be on lumia sales, we'll want to see if last quarters numbers add to its credibility story. if nokia's experiencing the turnaround that's evading blackberry. both of these companies trading at or near their highest google's core business is strong but it'smicrosoft's pc businessd a reorg last week. more important than this week's results, what companies say about the outlook for the second half, between ebay, ibm and more, investors should get a broad look. for nightly business report, i'm john fort. >>> another twist in the dell saga, t. rowe price said it will not support the proposed buyout by michael dell, saying the deal doesn't reflect the true value of the company. shareholders will vote this thursday on the proposal to take dell private. the stock fell to 13.15 many. >>> tiffany glittering today. the stock will hit $92 a sharks suggestin

then there's ibm, big blue had been a machine when it comes to eps growth, managing to keep its results predictable. jane has been working to reign in expenses, we'll see if it was enough. on thursday, nokia reports before the bell all eyes will be on lumia sales, we'll want to see if last quarters numbers add to its credibility story. if nokia's experiencing the turnaround that's evading blackberry. both of these companies trading at or near their highest levels. google's core business is strong but it's taking risks in moeb el that may hurt the bottom line. microsoft's pc business prompted a reorg last week. more important than this week's results, what companies say about the outlook for the second half, between ebay, ibm and more, investors should get a broad look. for nightly business report, i'm john fort. >>> another twist in the dell saga, t. rowe price said it will not support the proposed buyout by michael dell, saying the deal doesn't reflect the true value of the company. shareholders will vote this thursday on the proposal to take dell private. the stock fell to 13.15 many.

elsewhere, ibm's second quarter profit fell 17%, but still beat forecasts. revenues came in slightly shy of estimates on declines in services and hardware. though software sales rose. big blue is raising its four-year profit outlook and on track to post annual earnings of $20 a share and return $70 billion to shareholders by 2015. ibm rose 2% in after hours trade and you can see on the general market it is currently ahead more than 3%. ebay's second quarter profits fell 7% just missing forecasts, though revenue improved, boosted by paypal and core marketplace business. however, ceo john donahue warns of economic head winds in the second half of the year from europe and south korea. ebay expects full year results to be at the low end of expectations. shares fell 5% in after hours trade. and here is a look currently in frankfurt, down about 5.25 upon the set. >>> intel's second quarter profits fell 29%, matching forecasts, though revenues just missed estimates. the world's largest chipmaker is cutting its four-year revenue outlook and scaling back capital spen

in fact 98% of the value of that contract if it was awarded would go direct to ibm. but as i mentioned, we are taking steps to sever this relationship with strong castle. n response to the fed letter i asked chief counsel tow the dock nation with regard to these two contracts. in addition, as a result of the issue that is have surfaced from the committee inquiry we're doing a top to bottom review of policies and procedures, everything from internal controls and staffing practices. i've also asked the department of treasury to expand its routine assessment of i.r.s. procurement to include a review of small business programs. based on the troubling information that we have received, we will also further enhance employee training with regard to ethics with a focus gift rules, conflict of interest and appearance of imappropriatety and misuse of position. let me be clear that i have not seen anything within our procurement organization and i think this is also backed up by the extensive interviews the committee has done with officials inappropriate behavior on the part of

>> ultimately ibm is struggling with its own success. a lot of people think the consensus revenue is high. guidance is at risk. i bet these guys will tell you they're seeing people think, probably a chance they're going to move downward. stock couldn't break past 215 has been in a downtrend. ibm for this cycle best days as a stock somewhere below 195. don't do anything tomorrow. >> rapidly rising rates may be hurting investors but goldman sachs is minting money. they contributed most to the second quarter revenue. why are the big banks so much better at trading than the rest of us. let's bring in larry mcdonald the senior direct are of new edge. i would hope they're better than all of us. in terms of goldman sachs specifically why do they beat their competitors on this front? >> since lehman, the big traditional banks, the jpmorgans of the world, bank of americas, they have been less like invest banks. they have pulled back to the 1980s businesses. in a classic risk on market as we've had the last three months, that's where gold macman i

ibm up there, even though domestic the topline. let's go down to nicole petallides on the floor of the exchange. >> reporter: gp, boeing. a lot of names are doing so well on a day when we are hitting some record all time highs for the dow jones industrials and the s&p 500. they have since pulled back off of flies. right now still holding on to gains come up about half of 1%. plenty of green on the screen. the fear index has been to the downside. the dollar is strong and we're seeing oil and gold higher. earning season, and we're seeing a lot of names moving in big ways. we're watching microsoft very closely going into the closing bell, down 1%, down and a half of 1 percent, but it is worth noting that earlier this week on july 15th hit a record all time high. while there are analysts who actually have a thousand dollars the price target, it did hit 928 this week. obviously a lot more telling. tracy: gets tough. stay tuned for complete coverage of today's earnings on after the bell at 4:00 p.m. eastern. ashley: medical costs are the

as for the dow, ibm finished in the red. goldman downgrades big blue to neutral, citing pressures on growth markets and higher-margin revenue streams. price target, 200 bucks. bill, back to you. >> all right, josh, thank you. >>> let's talk about the housing market, a key component of the economy and what some fear is a risk to the recovery right now, because mortgage rates, while they remain historically low at about 4.5% on the 30-year, it's still a point higher now than only a month or so ago. it's a huge jump in such a short time. so how are these rates going to affect home sales down the line? are people rushing in before they can go higher, or are they backing away from those potential deals? >> important questions. we've got a roundtable of reporters who are tracking what's happening on the ground. aubrey cohen is with the seattle post intelligencer, caroline and diana olick joins us, just back from an open house in virginia, in fact. aubrey, first to you. seattle, in fact, one of the hottest markets in the country. w

a hundred thousand workers, like at ibm today, united states, same situation. if we adopt austerity, prudent austerity we can turn our country and blossom like we've never done before. john: bob, when you say now is not the time, when is the time? >> the time is whenhe economy is healthy and the clinton era and late 1990s, one time in recent history the budget was in surplus we were on track to have no national debt. and 2000, economists worried about how the fed will conduct monetary policy, when have paid off national debt, i am not the sort of guy who says we should always have a deficit, this is not a time to tighten your bbl you may agreee i don't think we should rse taxes. i don't think we should cut spending. john: we have aational debt now that is 100% about of gdp does that scare you. >> about 70. john: interest rates go up it wl be horrible. >> everyone has been warning for 5 years that interest rates are going up, the economy is so dead in the water, that interest rates are not going up. after the war,ebt ratio was 120% of gdp higher tha today. john:

sec is investigating the way ibm reports revenue. ibm says the probe has been going on since may but didn't mention whaits focused on telling bloomberg it stands by accounting methods. starbucks wi-fi getting a jolt. the search giant teeming up to offer internet access in starbucks score stores. google partnering to offer the service up to 10 times faster than what is currently offered at starbucks now. stocks closing mixed today your bloomberg silicon valley index falling as apple shares slid nearly 15%. and amazon is producing pilot episodes for five children television shows. the move will help strengthen programming for families, and will grow the retailers original content offerings. that debutted in april. am aa skon says it will decide which of the pilots to expand based on feed back from customers. from bloomberg studios in san francisco, back to you. >> emily, thank you. most famous hooded sweat shirt in the country may soon be on national display. smithsonian expressed an interest in acquiring the hoody worn by trayvon mart

ibm, intel, ebay, all set to report. we'll have the analysis in a moment. you're watching cnbc, first in business worldwide. oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at aflac.com. [ male announcer ] see what's happening behind the scenes trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexp

in fact 98% of the value of the contract, if it was awarded would go direct to ibm. as i mentioned, we are taking steps to sever this relationship. in response to the committee's february letter, i also directed officials with an procurement office and the office of chief counsel to review the documentation and response related to these two contracts. in addition, as a result of the issue that surfaced we're doing a fop to bottom procurement review. everything from internal control and business and staffing practices. i asked the department of treasury to expand the routine assessment of irs procurement to include a review of small business programs. based on the troubling information that we have received, we will also further enhance employee training with regards to ethic, with the focus on rule of conflict of interest, impartiality and misuse of official position. let me be clear, i have seen -- not seen anything with the procurement organization. i think this is also backed up by the extensive interview the committee have done with the host of irs officials. ina

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analysts see this as ibm struggling in the economy. shares of ebay dropped nearly 6% after it reported 2nd quarter earnings. revenue was up, and ebay added more customers, but they were disappointed in the 8% decline in profit. >>> a pennsylvania man was for a very short time, the richest man on the planet. at least on paper. christopher reynolds opened his pay pal statement and immediately noticed that he had more than 92 quadrillion dollars in his account. reynolds offered he would have offered to pay down the national threat, which is about $16 trillion. >>> two dead crows have tested positive for west nile virus. the counties workers are asking residents to drain any standing water in pools or ponds, that could be a breeding location for mosquitoes. tonight at 10:45, a fruit fly is the target in another bay area county. the effort to eradicate the pests that could prove costly. >>> in new news of the world in india, parents went on a rampage when 22 children died. authorities say the cooking oil used to prepare their lunch had been

analysts see this as ibm struggling in the economy. shares of ebay dropped nearly 6% after it reported 2nd quarter earnings. revenue was up, and ebay added more customers, but they were disappointed in the 8% decline in profit. >>> a pennsylvania man was for a very short time, the richest man on the planet. at least on paper. christopher reynolds opened his pay pal statement and immediately noticed that he had more than 92 quadrillion dollars in his account. reynolds offered he would have offered to pay down the national threat, which is about $16 trillion. >>> two dead crows have tested positive for west nile virus. the counties workers are asking residents to drain any standing water in pools or ponds, that could be a breeding location for mosquitoes. tonight at 10:45, a fruit fly is the target in another bay area county. the effort to eradicate the pests that could prove costly. >>> in new news of the world in india, parents went on a rampage when 22 children died. authorities say the cooking oil used to prepare their lunch had been

>> okay, you know, my problem here is that i have not listed ibms call. i've been violating all my own rules when other people get the call. i will have a better look tomorrow. lois in florida. >> boo-yah, jim. i'm the most faithful follower and when you mention your charitable trust was getting rid of china exposure, i unloaded my chart industries at 95. since then, it's gone up. should i buy back in at a down tick? >> it's had a miraculous run, lois. i am concerned about china exposure. i don't think you need to buy it back. if it comes in, we can talk about it and pull the trigger. cole in iowa. cole? >> boo-yah, cramer. big boo-yah from iowa. >> good to have you. >> i'm 17, i've been in the market since i was 12. >> i'm cole's dad. what can you tell us about lion's gate? >> i thought it was going to be a really big stock, then i felt it was out of gas and i was wrong. this is a company that once i -- this is hunger games, good tv entertainment. just a good stock like discovery and it's probably going to remain a good stock for a long time because they

for ibm, it was a good quarter. ibm said revenue continued to decline. they boost profits through cost cutting. jpmorgan chase is close to a record billion dollar settlement. they manipulated electricity markets in california and the midwest. the deal could fall apart. the bank and regulators are exchanging drafts. watch this space for jpmorgan and that deal. >> that's everything we need to know about money. >>> we have been joking about the heat, but it's really serious. heat wave warning coming up. we are going to show you how quickly a parked car can heat up and become dangerous. peoi go to angie's listt for all kinds of reasons. to gauge whether or not the projects will be done in a timely fashion and within budget. angie's list members can tell you which provider is the best in town. you'll find reviews on everything from home repair to healthcare. now that we're expecting, i like the fact i can go onto angie's list and look for pediatricians. the service providers that i've found on angie's list actually have blown me away. find out why more than t

reinventing themselves to a certain extent, ibm and intel with down arrows. david: general electric up almost 5%. nicole: despite the fact ge capital didn't do as well, a backlog of orders helping them with new highs today. david: everybody sounds happy today. we have kind of a mixed decision as the market settles, again we may get, probably not, but make it into the positive territory. inching in a positive direction. the s&p is up flatlined today. the stocks weighing in on that. the russell 2000 managed to pull out a gain, but ever so slightly. a day that could have been a lot worse, was a lot worse at different parts of the day. "after the bell" starts right now. ♪ david: we do

i'm looking at ibm. i think it's crossed $2 00 a share again. did it? >> jumping today, at 198.53, and it's adding 32 positive dow points as it raised its 2013 outlook, and their earnings beat. cross $200? yes, it did. $200.94 a share. >> by the way, the reading on the leading economic indicators, no change. gained a little ground in the preif month's reading, no change, up changed this time around, no importance whatsoever? >> that used ton torrent to alan greenspan, but the mortgage rates, i mean, this housing recovery, by the way, not -- the baton has not gone from investors to main street, and if intrept -- interrupted, thars it. >>st market responded. that lower freddy mack mortgage rate, now up 77 points, 155.48. round two for ben bernanke on capitol hill today, testifying before the senate banking committee this time. didn't move the markets yesterday, though he hinted he's prepared to stop or slow down printing, but no word from him on when he's going to do it. the hearing starts at 10:30, then faces questions from the senators at the end of thi

>> ibm is trying hard to shift a lot of cloud based things. you don't make as much money and companies don't like to admit that. apple i think is just an inexpensive stock. taking another. >> i'm claudeine from florida. i'm a fresh college graduate -- fashion industry. what do you think of fifth and pacific? >> it's done well, but i prefer bf core or bvh. that's an opportunity. they didn't know what they were talking about. don't forget under ar a mor. that's it? over here, please. >> hi, jim. david from new york. i have a question about -- pharmaceuticals. they recently had a very major merger and sort of wondering what you think about the future of larger -- >> i'm very worried about -- that is the one nongeneric and i just have to tell you that i think the stock acts poorly because it's not going to be able to make the numbers. it is not one of my favorite pharmaceuticals. and that, ladies and gentlemen, is the conclusion of the lightning round. >> coming up, athena health is up 50% alone as health care technology drives the stock to all ti

ibm moving higher after raising its outlook and reporting better than ever second quarter earnings. the company did miss on revenues but it's up 2% on the day. ebay slumping after warning that results would be at the end of its forecasted range. slower growth with its paypal unit. intel also lower as the chip maker cut its revenue forecast as well as its capital spending plans. this is to adjust to weakness in the pc market. it's down to almost 4%. phillip morris international second quarter profits up in smoke falling 8% as it shipped fewer cigarettes. the company also lowering its full year guidance. the stock right now is still in the green just fractionally at 89.75. a tobacco analyst with wells fargo securities. bonnie, welcome. nice to have you here. i was very surprised that they saw volume declines in all their major regions. what does that tell you about the future for them in terms of growing this business? >> you know, we knew this quarter was going to be tough. there have been a few disruptive excise tax increases that took place, so this was mainly expected, the volume

>> ibm. >> my question is my kids are geeky and trying to figure out what is going on in the world and to later thoughts or advice? i tried to teach them to be good blood being people do have a advice on what they are studying besides being good people what should they be doing? >> and i don't know. my qualifications as a parent will become known to me when my daughter is in adults which will not be for a while. i of a little worried about how structured our kids' lives are going from pay-to-play and everything is planned. the structure of facebook is the extension of the fate because -- of the play date because in the '90s when i went talk to graduates they would say i made my website but now nobody does the go to their pre-structured thing where they follow a group that is laid out for them it is less work but it goes back to the jeffersonian question that everybody goes into zepa restructured kits and i am a little worried i love how we can teach science to make your own robot or your own or goodness of the but the problem is it is a kit to quality and you don't hit raw reality or t