the same with jpmorgan. their book value went up nicely this quarter even though the rise in hurts might have hurt their bond portfolio a little bit. >> charlie, what would you say to other investors at the moment about whether to further invest -- i mean, look at this stock, up 25% year to date, it's up over 60% over the last 12 months. do you add to positions, charlie? do you think about booking profits? are we potentially overextended on the financials? >> absolutely not. we are not overextended. on an historical basis, 1.4 times tangible book for jpmorgan, one times tangible book for morgan stanley is still very cheap. they posted probably a 15% return on tangible equity at jpmorgan. in this environment, it should be trading at 1.6, 1.7. we have a long way to go in these stocks. >> i know both of you will stick around and listen to the jamie dimon interview. david, briefly, if you had a question, what would you say to him? >> basically we listened to the call. everything is moving along very nicely. and

what is your overall view on jpmorgan as an investment? >> we like jpmorgan. we think for the strength of the earnings, it is a cheap stock, trading at 9 1/2 times pe multiple where as wells fargo is up on 11.5. jpm is going to see steady growth in earnings over the next couple of years. it has a number of levers to pull, beneficiary of the housing recovery. i don't think it is going to continue to take market sharing investment banking generally. and it has got that sort of slight growth that the rest of the world -- gaining share in european investment banking, pulls back. it remains a good story. >> do you think the fed will be able to anchor the short end and get a steep in yield curve, which should be, you know, good for banks? >> well, that's a huge debate as to whether this move in interest rates is really good for the banks or not. clearly higher interest rates -- if we go back 10, 20 -- >> if it means proving a margin, yes, we don't know if that's the case. >> they're sending up-front negative requests. capital could be impacted. in terms of earnings,

jpmorgan and wells fargo beat the st.. next guest earnings expectations as well with profits jumping 31% and 19% for wells fargo. dick bovet says he is still not impressed. why is this disappointing? >> in the case said jpmorgan look at the core earnings earnings, the net interest margin and the trading activity, it did not go up but actually they did not do well in the quarter that doesn't mean to say that they couldn't but i was not impressed wear those earnings came from. he cannot argue because mortgages did well knowing they would not do good in the fourth quarter is inappropriate to drop the loan-loss provisions to zero when you are not covering your nonperforming assets. until they get was a good quarter for jpmorgan. lori: which would you rather own? >> wills fargo did better the loans did go up a little bit they certainly were able to reduce the of loan-loss provision. and then the expenses went down if you put that on a parallel basis wells fargo had a much better quarter. again, i don't want to freak out because

jpmorgan was particularly busy. the july calls the ones that expire tomorrow and a week from tomorrow were the most active options, both trading over 10,000 contracts. people who were buying these options were betting one percent over the stock price that the rally will continue. the impliesed move on jpmorgan is typically two and a half percent and that's about where the options were pricing in. for those who want to press long they might look at buying puts. >> two and a half percent. >> on jpmorgan they benefit more from the move again in the short end of the curve. i'm not worried about the overall move for rates for them. >> is steve's microsoft plan the answer that investors have been looking for? the stocks been on a good run, yes, but will they take it to the next level? . 't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by bla

jpmorgan looks ready to pop, and wells fargo drop. however, over the long term, i think they both go down. with jpmorgan, a nice uptrend, the shares appear to be trading in a bull wedge. it confirms 56, targeted 60. therefore, the pop. a one-year chart of wells fargo, we also see the uptrend, but shares have recently traded into a bearish broadening top, likely to confirm at 39, take shares down to 36. the bottom of support of the rising wedge, maybe even through, and a drop. when we look at a daily chart, however, of both of the stocks over the last five year, we see they've traded in very highly correlated manner. this is likely to continue to be the case. this year they've broken up and out of a bearish broadening formation. i suspect, however, that's likely to be a false initial breakout to the upside, and prove itself later this year, and we could see both shares drop back down dramatically by the end of this year into next year. >> one last point i would add. >> go ahead. >> the european banks have been weak over the last couple

jpmorgan and wells fargo kick off for the financials, both beating on the top and the bottom lines. a profit at jpm rising more than 30% as the bank bounced back from that massive trading loss in the second quarter a year ago. now it reported a 19% rise in profit, despite flat revenue. credit strengthened while home lending orange nations and applications rose from the first quarter. let's take a look at the boards there, and can you see them both edging higher. jpmorgan by a third of a percent and wells fargo by more than 2% at 42.80, but it was a major exclusive you could see only right here on cnbc, our jim cramer sitting down earlier today with jpmorgan's chief jamie dimon on "squawk on the street," and he spoke about the impact of rising rates, the state of the economy and regulation. let's take a good listen here. >> the american economy is getting -- slowly getting stronger so the lending will come back. they will start to do more capital investing so we're kind of confident that you'll see growth over the years as america recovers. >> it's pretty clear that when rates go up,

more scrutiny on jpmorgan in commodities trading. that's never a good thing when it comes to banks. >> no. but the jpmorgan link to price manipulation, that story has been out there for a few years. there are reasons to get short jpmorgan if you think the banks have turned or the market is turning, this is not the reason to do it. this story has been out -- different parts of this story have been around now for a while. >> if they do sell it, they being the rest of the market starts to sell the stock off just like in the past, those are the opportunities we are all looking for. steve was talking about everyone wants to put money into the marketplace. you would want a jpmorgan if they sell this off toward that $50 number. if they get a 10 percent selloff i would want in. >> remember we said get off of that warehouse business after that damming report about moving around the commodities within a big warehouse. >> there was an article on goldman sachs that people who need aluminum can't get -- it's been out there for a while. in terms o

the heat is also on a unit of jpmorgan chase today. it would fine 410 million for allegeddedly manipulating markets related to california and mid western electric markets. the jpmorgan ventures energy corporation did not admit or deny any of the market violations. flipping over to the stock, jpmorgan moves lawyer by a percent of 55 cents. the stories about all kinds of issues and crime and punishment and waiting to hear, not ignore a good oh man for the strength of the recovery, jumping 12 #.2% in may compared to a y the biggest yearly increase since march of 2006. now, consumer confidence, that also came out. it's slipping slightly in july to 80.3 from a reading of 82.1 in june. we'll dig deeper into the numbers. it's still close to a five-year high, the second best number in five years. now, consumers, little less upbeat when you pull apart the consumer confidence issues. less upbeat about the job market short term, but more positive about the job market further out. okay. you saw the top of the show, the exgoldman sachs trader, the

we have both jpmorgan and wells fargo. even with the recent bullish comment by bernanke about extending qe, i think there is still a lot of head winds in the mortgage space and housing sector. jpmorgan will probably be rosier on their call. i think trading has a positive outlook and i think even with regulations and further leverage ratios tightened, i think it is a bullish outlook. so you should see the rally continue tomorrow. >> we'll be watching. thank you guys. >>> up next, one of the most popular die dietary is up lesupplements on market could lead to higher cancer risks. washing-machine hoses every five years? what if you didn't know that you might need extra coverage for more expensive items? and what if you didn't know that teen drivers are four times more likely to get into an accident? 'sup the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum -bum ♪ this is greta. she works in quality control. she m

jpmorgan does better with higher interest rates. and while i know we are almost all think rates are going up, sometimes that does worry me because i don't like to be part that much of the consensus. if they go up, jpmorgan will make more loans and more money and will show a dramatic increase in earnings power. but will the government let dimon do it? i mean, as i asked him right at the top, does the government want him to lend? or to hoard? are the feds so worried about bank failures that they want to crimp lending to eliminate risk or break up the big banks altogether as senator elizabeth warren said this morning on "squawk box" when she told us she wants to bring back a version of glass steagall. he didn't take the bait. he didn't criticize the government or criticize warren. he said that new regulations is a fact of life and it will all come out in the wash over time. this was a sanguine dimon who expressed a level of confidence about the regulatory future that made me think, one day we'll play a sdeent price for the huge earning

jpmorgan does better with higher interest rates. and while i know we are almost all think rates are going up, sometimes that does worry me because i don't like to be part that much of the consensus. if they go up, jpmorgan will make more loans and more money and will show a dramatic increase in earnings power. but will the government let dimon do it? i mean, as i asked him right at the top, does the government want him to lend? or to hoard? are the feds so worried about bank failures that they want to crimp lending to eliminate risk or break up the big banks altogether as senator elizabeth warren said this morning on she wants to bring back a version of glass steagall. he didn't take the bait. he didn't criticize the government or criticize warren. he said that new regulations is a fact of life and it will all come out in the wash over time. this was a sanguine dimon who expressed a level of confidence about the regulatory future that made me think, one day we'll play a sdeent price for the huge earnings jpmorgan will generate, some

we do own some jpmorgan and i would like it buy more on weakness. from washington, great economic stuff in their sales so i think they are one of the most asset-sensitive banks out there. tons of cash. they can leverage in the loan growth and into higher yielding security and one of the most asset sensitive banks out there. >> scott, we have talked about how unloved this rally has been and you can site all kinds of head wind as anton has done there for financials but yet they go higher. as a group they are 20% this year. isn isn't it possible to still good higher? >> we are in the midst of a rally. so having said that, as i suggested earlier, we were recommending about half of the names earlier in the year. i try to recommend them more out of favor. a name like wells fargo which is one of several down grades we have done the past couple of weeks. up 25% plus year to date. just strikes me for a bit of a pause. >> are you expecting a higher dividend at some point even with the capital constraint or no? >> yes. someone like wells fargo is in as good a

but not as robust as jpmorgan's. that's the single biggest factor driving swings in reported earnings is going to be the performance of the investment bank and, you know, was it a strong quarter for everyone or was jpmorgan a standout? >> yeah, and the securities portfolio performance as well will be continuing interest. >> yeah, although i think, as i mentioned before, a little more muted for citi because u.s. dollar securities that are only a little over half of their total. >> what do we think about -- they're doing fairly well now. are we now in a stable path with reserves? >> yeah. so that's a really interesting question. the banks have been steadily improving capital. regulators keep changing the goal posts periodically and are in the process of doing that once again. so i think, you know, the newest one is the leverage ratio which the fdic has proposed a 5% requirement and that will take a little bit of work. in the second quarter, morgan stanley completed the purchase of the joint venture and that will add 35

i know you're on it, and we know that right now, i understand you also have news on jpmorgan, kayla. >> reporter: maria, a press release coming out moments ago saying that jpmorgan is exploring strategic alternatives for its physical commodities business. this is very interesting, considering that "the new york times" ran a story over the weekend raising questions about the conflicts of interest some of these banks like goldman sachs, morgan stanley, and jpmorgan, that have physical warehouses that store commodities like aluminum and copper and other commodities, too. jpmorgan is now the first bank that's publicly come forward and actually said, you know what, we understand the conflict and are looking at structures to run this spinoff, a jv, or a sale. we haven't seen that from the other banks. they haven't commented at length about that story. but jpmorgan certainly moving forward and saying if it doesn't make sense for a bank to be in this business, then we will evaluate not being in this business. maria? >> yeah, once again, regulation dictating strategy there, or anticipated reg

both wells fargo and jpmorgan told us. by the way, i was hoping i could buy a dip on the banks today. we didn't get it. you didn't have this great revenue number. but you had very good execution. and within both companies, there were pockets of strength, right? so jpmorgan had good capital numbering and good credit card numb numbers. that means the consumer is spending. so i'm looking for opportunities. >> -- end positive with the numbers. >> some of this may be in the market by now. but net end balances 1.8 billion to the buy side. a lot coming in at the close. >> a tremendous amount of bullishness. 49% bulls and 18% bears. the long-term average is 39-30, bull-bear. >> sunday night, we get gdp numbers from china. we're seeing a market come back here and trying to set all-time highs ahead of the important numbers. >> gdp, retail sale, it's all from china. so it will be a very busy sunday night. notice the data coming out this week, really crummy, and yet the markets rallied pretty strongly. i think the market is very inter

jpmorgan and wells fargo both had good earnings. wells fargo, slightly negative territory, but really considering how strong the banks have been in the second quarter, i'm surprised there wasn't some selling into the news, even as the news was good from wells fargo and jpmorgan. some of the regional banks on the upside, as well. old market leaders, other old market leaders re-emerged. look at the housing stocks. when interest rating calm down, housing stocks got better. horton, standard pacific, toll brothers, all having a great week. another group, biotech stocks, some prior weakness, but once again, an historic eye for the biotech. we'll have ipos, several of them, in the next two weeks. i'll have more on that on monday. finally, a couple of things bother me, a little bit. interest rate, yields on the 10-year, they've stopped rising, but they're not dropping at all. if this thing starts rising again, stocks are going to have trouble. we'll see. second is china. big china stocks all down today. this is trading here in the united st

jpmorgan was out two days ago at $65 on the stock. they're not the only bears out there and jpmorgan is neutral at 65. >> let's go to mike khouw, what did you see for tesla and the movement for the future? >> we saw a lot of activity today. this is usually a fairly businessy stock in erms the of actions traded today anyway. it traded 312,000 stocks today. it actually means that this stock traded more than 2% of all the options that traded, that includes etfs and single stock today. usually much like the stock action itself, the options activity has been bullish but that certainly took a negative turn today. the put volume outpaced call volume by more than 20% and the price of options went up sharply. if you buy the 110 call and the 110 put is now over $22. that essentially means that this stock could break 20%, maybe more in 30 days. over all the tenner was bearish on puts. >> let's go around the horn here. guy, if you had to play tesla, long or short? >> i don't know what the borrow is or the puts cost. >> the borrow was surprisingly

>> what are you, jpmorgan, the market will fluctuate? >> 66% of the time you're going to be right saying that the stock is going to go up. that's why people say to buy stock. >> very good. you buy it because you think it's going to go up. >> thank you all for joining us. >> thank you. well, there will be no remarks from ben bernanke for tomorrow for the markets to react to but there's asia, europe, other factors that will affect how we end this week. good night. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this all-new cadillac ats for around $299 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year. uh-oh! guess what day it is?? guess what day it is! huh...anybody? julie! hey...guess what day it is?? ah come on, i know you can hear me. mike mike mike mike mike... what day is it mike? ha ha ha ha ha ha! leslie, guess what today is? it's hump day. whoot whoot! ronny, how happy are folks who save hundreds of dollars s

jpmorgan did not admit or deny any wrongdoing. our kate kelly is live back at hq is more on that. >> thanks so much. i'm here with federal energy regulatory commission john we willinghoff who was kind enough to give us his first interview. chairman, thank you for joining us. >> good morning, kate. >> good morning. this is the largest ever settlement for energy market abuse. i'm curious, how did things get so screwed up at jpmorgan? >> well, it was a series of events in california and michigan about 12 different acts of manipulation we specifically found in the settlement that we issued this morning. i think it was a minor matter though in the context of some of the largers events that took place, for example, in the early 2000s with enron. this is really only about 1% of that event. >> well, given that you mention enron, i-going to ask, you have recently come down on a number of banks, deutsche bank, barclays which is fighting your proposed settlement and jpmorgan. why is it that energy market abuse is still happening? >> well, it

jpmorgan got hit pretty hard on margins. they took a conservative route. from an earnings perspective, you know, it was good enough. people were not expecting anything heroic. the stocks are up today. dagen: looking at the financial category, it has performed quite well this year. it is up about 24% so far this year. to that point, do you take money off the table with some of these names. assuming that there is no great catalyst for growth. >> absolutely. i think it is a stock pickers environment. it has not been a stock pickers environment this year. giant securities portfolios, earnings will only go up when libor goes up. libor is not going out for a while. i think some of this rally is not particularly right. i think there are other companies that are benefiting dramatically. places like the southeast, credit will continue to improve. i think there is a lot of leverage for the smaller community banks. the banks that are the buyers are getting really good deals. that is a great environment for that industry. dagen: great to see you, as always. take care.

another big story that we're following today is jpmorgan chase. they agreed to pay $410 million in fines to the federal energy regulatory commission. jpm is accused of manipulating electricity markets in california and michigan. the stock is last traded on the downside by less than half a percent, but it's up 26% year to date. kate kelly is on the case for us today. hi, kate. >> reporter: hey, sue, thanks so much. you're right. jpmorgan today settled charges with the federal energy regulatory commission to the tune of more than $400 million. the charges that they allegedly manipulated energy markets in recent years in two particular spots of the country, california and parts of the midwest. this news comes days after jpmorgan announced plans to sell the jast majority of its physical commodities business amid regulatory concerns that really might have forced their hand anyway and those are coming in september. the action comes after at least a dozen actions in recent years and is the largest in the agency's enforcement history. an even larger settl

>> names like jpmorgan and bank of america continue to do well. options can give you indication how strong the market is or is not. for example when we dipped into negative territory earlier today the banks actually held green arrows. they are doing pretty well today, considering back and forth we had recently. jpmorgan is up 1.7%. the other dow component, bank of america is holding on nicely. wells fargo, a couple banks are reporting quarterly numbers next week. jpmorgan, wells fargo are among the financials that will kick it off. alcoa will be the dow component kicking it off but in the financial industry jpmorgan will certainly be highlighted next week. you're seeing names doing well. among the best performers for the week as we're clocking in a win being week on wall street overall for the dow jones industrials. back to you. adam: nicole, thank you very much. despite stronger than expected job numbers out this morning there are still fear among workers actively employed to seek out new jobs. jeff flock is in bensonville, illinois. jeff what is

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 two million members count on angie's list. angie's list -- reviews you can trust. the physical damage was

. >>> and jpmorgan chase is in talks, saying it is settling charges that it manipulated prices. the deal could put costs about $500 million. jpmorgan chase recorded $6.5 billion quarterly profit last week. >>> it's likely to be an interesting scene at the headquarters of dell computers in texas. shareholders are gathering there for a vote on founder michael dell's plan to take the company private. supporters say the over $24 billion buyout gives dell a better chance to reinvest in itself. but some big investors say that this price tag actually undervalues the company. >>> and a weight loss contest in dubai includes a unique incentive. they're offering a gram of gold for every 2.2 pounds that they lose. that's worth about $25. and the three people who shed the most weight will get $9,000 in gold coins. the final weigh-in is august 16th. head over to dubai. >> i love that idea. that's motivation for you. >>> hooters is introducing a redesign of its iconic owl logo. it's the latest move by the chain to modernize its image. the new hootie, looks a little leaner than his predecessor.

jpmorgan chase and wells fargo coming in above expectations welles alcoa. gas prices are about to spike in prime driving season. expect a jump of 10 to 20 cents per gallon of gasoline. it's because of tensions in the middle east and inventory issues in the united states. >>> barnes & noble trying to read its own future. the ceo resigns suddenly. it's possible the iconic bookstore may once again become a private company. >>> the markets are certainly happy to hear what ben bernanke had to say this week. we also saw the kickoff to the earning season as well. what does it mean for your money and going forward? joining me now danielle hughes and bob doll. thanks so much to you both for joining us. good to see you both. so what a week. we're at a record high for the dow jones industrial average and the s&p 500 this week after bernanke's words. what did you make of the speech? >> i think ben bernanke put the toothpaste back in the tube. i think he'd like to have earlier speeches back where he perhaps spoke too much. he wants to commission us he's not going to buy

. >>> jpmorgan chase could be out a half billion dollars to settle accusations. the financial administration manipulated financial obligations. "the new york times" reports the nation's largest bank is trying to settle with the government of charms it made in illegal trades in the electric markets. the potential $500 million settlement will not sting that much though. just last week jpmorgan reported a $6.5 billion quarterly profit. >>> and kfc is trying to rebrand itself with an upscale image in mind. the fried chicken fast food chain is opening a test restaurant near its headquarters in louisville, kentucky, called kfc 11 that dropped colonel sanders from the decor. the test kfc will serve flat breads with toppings, rice bowls, salads, and only boneless chicken pieces. so someone's getting fancy over there. >> i'm not eating my chicken with a fork. right? >> well, you know. >> it's fried chicken, ashley. ashley morrison here in new york. thanks a lot. >>> straight ahead, your morning weather, and ernie els looks to go back to back in the british open. to go bac

that's what killed jpmorgan friday. the important story for citi, what's happening in the emerging markets. this is a company that gets hal of the revenues outside the was gerspach said it's seeing a tale of come consumers. revenues in global consumer unit strong in latin america, relatively strong in asia but he did say emerging markets will continue to grow but they'll be slower than expected. he said mexico will slow to roughly 4% next year. will be within 2% this year. he said china, as we have seen today, will continue to slow. a lot of questions, guys, considered citi's foreign exchange popgsition. citi could take a multibillion dollar hit in hedges in the yen, places in asia. he said that's not the case. it was the mexican peso, th thennian rupe. >> the bigger one gets so much of the attention. as well about the point of margins is an interesting one. the read through, is it a citi-specific issue or something for the banks more broadly to deal with? >> he said that they saw a ton of yield compression in the quart

>> jpmorgan and wells fargo. start with jpmorgan. street is looking for a buck 44. just about three months they were looking for $1.38. earnings estimates are going up. they beat the street each of the last four quarters. insiders bought 7,445,000 shares. stock has a little resistance at 58. if i'm in the stock i definitely hold it and i would even consider buying this one conversely wells fargo i'm not too sure. street is looking for 93. that is where its been last three months. they beat the street each of the last three quarters, but only by low single digits. nevertheless you see the stock had a good move. if i'm in it i don't sell it. but on the downside, if there is hiccup, the downside risk will be $37 on that one. ashley: wells fargo in the mortgage industry. all the refi's that will be done probably have already been done. now we have rising interest rates. >> rates are shooting up. last refi data we had was not pretty encouraging. so i'm a little worried about that. the bigger banks i'm worried about, get to citibank. talk about citi on monday. schwab, 8 7

jpmorgan is not unique in this situation. banks reacted to no loan demand put a bunch of securities on their books. the sensitivity to rates i think what will be most volatile. melissa: that is why they're worried about it but do you think in general the whole market? people will be worried about violent moves in interest rates do you think that will happen? >> in terms of violent moves? hard to imagine there is a replacement buyer to the fed, right? they have really crowded everybody else out, right? melissa: right. >> so i think the next bid is a lot lower, yeah. melissa: well, whitney was right about the fed and markets. two weeks ago we saw ben bernanke hint and possibly easing up on the bond buying and the market was massacred losing 500 points in two days. obviously we'll keep watching that one. >>> next on "money," companies are on a tear hiring back old bosses that already said sayonara. will a the growing trend at places like proctor & gamble and jcpenney turn the companies around? steve forbes joins us on the power

david: jpmorgan is setting accusations that traders at the bank manipulated electricity markets. the firm did not admit any wrongdoing as part of that settlement. we'll talk more about that to come. liz: home prices in the u.s. continuing to rise. the s&p case-shiller index jumping 2.4% in may. prices in each of the 20 cities measured rose at least 1.2%. prices are now up 12.2% year-over-year, not bad. david: and we're going to talk about cps and time warner cable, they've agreed to extend their negotiating deadline until 5 p.m. on friday after a short blackout last night of the cbs network in some markets on time warner cable systems. liz: eurozone sentiments picking up in july reaching the highest level since april of 2012. sentiment across the 17 countries rose to 92.5 from 91.3. david: also a pennsylvania judge has ordered three former penn state administrators to stand trial in the jerry sandusky child sex abuse scandal. the judge ruled prosecutors have shown enough evidence to warrant a trial for ex-president graham spannier, former vp gary schultz and ex-athletic director

jpmorgan will be important early in the season. it's it's the 12th and that will be a good important look at the economy. we'll see if there's loan groengts. we won't get the full effects of the housing market because that happens in the last week of may. it could be noisy but i think that will be an important tell for us. >> you guys both picking the banks. are the banks the most important sector at this time? >> it's a given we know the financials are -- i think we are going to continue to get it but i'm looking at ge. this is the company in every part of the global economy. we'll see what's going on with the asset quality there but they've been telling investors that they are slimming down capital and give back to investors but they're a global economy and involved with health care, aviation. jeff on the tape today saying he's seeing europe possibly turning a corner. he has not been a big cheerleader for the global economy of the he's a big fan of the show. >> is that the real reason you're picking it? >> i know he's watching. >

look ahead with jpmorgan's chief equity strategist at 11:30 ce terks. plenty more to come on "worldwide exchange." [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ continuing. and even mr. dralhi four months saying second half recovery saying recovery will start by the end of the year. everyone's kicking the can of recovery a bit further down the road. exactly what you've had for the last two years. you see continuing on these downgrades. >> okay. one of the implications is what we've priced in, then. therefore stock valuations. >> the valuations are as high as they've been in a long time. i think that's going to be the overriding issue. you look at a number of the bigger sectors. they've had continued outperformance. yet they've all rerated. the only sector

and don't miss jpmorgan ceo jamie dimon in a cnbc exclusive. this is a big thing, right? he'll be with jim cramer at 10:00 a.m. eastern. as for wells fargo, analysts are looking for earnings of 93 cents a share on revenues of $21.2 billion. we'll be talking more about the financials with analyst chris whalen in the next half hour. all those things coming up. >> that's right. the other big financial story this morning, a push for a modern version of the 1933 glass stegele act. the original act was passed after the stock market crash of '29, separated commercial banks from investment banks. couldn't do the same thing. many of the core provisions were repealed in 1999. now democratic massachusetts senator elizabeth warren is teaming up with arizona republican john mccain and two others to introduce a new version of glass stegele. we'll speak with senator warren this morning. a year ago on squawk, goss and the father of the so-called supermarket bank sandy weil called for banking up the banks. >> what we should probably do is go and split up investment banking from banking, h

wells fargo, jpmorgan friday, enis? >> the whole sector has been rallying over the last couple of weeks. and generally, financials actually rally into earnings. and then it gets a little bit trickier. i still prefer the commercial and regional banks like wells fargo, who are going to benefit from the rates going higher in the future. but i think the investment banks might be a little bit more difficult, off a the volatility that we've seen globally. investment banks generally are much more correlated to global volatility and european banks have not been acting well. i really don't like that space. >> still ahead, we have done the math and we have calculateded some of the biggest movers and shakers in this week's shortened holiday trading session. we'll take a look at the biggest pops and drops for the week and that's next. >>> "fast money" means trading. everybody's got to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation. it's a

wells fargo, jpmorgan, they report earnings this week. goldman out with an interesting note today. they say the results likely to be uninspiring, strong loan growth, higher capital market activity, equity trading strong and avoid high mortgage exposure. >> counter intuitive to i know the way a lot of are you thinking, they did not like wells fargo. >> yeah. i read the note. >> those are fighting words. >> absolutely. i read the note and i disagree. i think longer term wells fargo is going to be okay. i think the one thing you want to focus on which was positive in that note is capital markets recovery. goldman sachs itself, a morgan stanley, a lot of the private equity names. i would focus there, even the exchanges that traded very well up until the meltdown we had at the end of may. i see the opportunity there and i see it on the back of the overall markets trading more favorably. >> i think that goldman and morgan stanley have going to be mixed. if you looked although jeffries last week, 37% dropped sequentially. you may have some parts good but you'll have some that is really so

government is laying the ground work for a potentially hefty fine against jpmorgan. let's go to hampton pearson for more in washington. >> this is a little complicated. follow me here, if you will. the federal energy regulatory commission says jpmorgan manipulated power prices in california and the u.s. midwest, confirming months of media reports. the agency's notice of alleged violation is an intermediate step bringing details of the investigation to light. furc found eight instances of manipulative bidding strategies in 2010 and 2011. the regulator says the bank used improper trades to sell power at above market prices. in one case, they say jpmorgan duped california utilities into paying $999 per megawatt hour when the going rate was only $12. california's independent system operator, which runs the state's power grid, and blew the whistle on the bank, says it was overcharged by at least $63 million, a spokesman acknowledges the types of notices are typically issued as a precursor to some sort of resoluti resolution. now, it can sometimes be weeks or months betwee

as for some specific movers today, let's get to the dow, the biggest gainer is jpmorgan, raymond james, they are fans and rate this one a strong buy. their price target is 64 bucks. apple is also working back-to-back gains. apple saying it filed a trademark application for an iwatch in japan, and finally ford, gm and toyota report june sales all besting estimates. guys, back to you. >> thanks very much, josh. let's bring in kenny polcari as well as michael fax president of farr, miller & washington and cnbc contributor as well. michael, i'll start with you. we've had a very volatile past few weeks mostly due to the fed, so how are you investing? >> sue, i'm feeling a little bit smug, if you will, which is always dangerous, you know. only two types of people in our business. those who have been humbled and those who are about to be, but our conservative sort of sticking with the blue chip strategy is working really well now, so it feels pretty good. the flight from bonds into stocks, the flight from gold into stocks and the flight from the risk trade into the blue chip multi-national, w

it was essentially resolved by selling it to jpmorgan chase. who is going to take over jpmorgan chase or bank of america whose assets are each $2 trillion if they go bust? >> barney answered the question. do you it exactly as he describes. that's what the legislation calls for. the fdic, as sheila baird dem strapted they have the know-how, the knowledge to unwind institutions. because of what we've written in and ways which you pay for all this, they believe they have the right to see the history to achieve the very results. i know people are concerned about this. i understand that. but we think we've done a good job in avoiding exactly what we did in the past and that's to have the american taxpayer write the check when a major financial institution. also by requiring more capital, leverage which we have only recently, we think we minimize the likelihood that these kind of things can occur. we believe this will work. time will tell but we believe it will work. >>ky say at this point -- >> go ahead. >> one of the things -- you gave a very good

jpmorgan and wells fargo. wells fargo doesn't give you that same oom poomph. >> they have exposure to housing, wells fargo through the mortgage business. all the banks have pulled back. wells has kept chugging along. of course, i'd love to own them a little lower, but we're long the banks. >> wells fargo is the my least fort gage because of the mort garnl exposure and because they're not going to pick up share in europe like citi and jpmorgan and b of a. >> but they're all about being slow bu steady. when you look at the names, you don't get the violent move to the downside or upside. look at 52-week highs. >> you may not get a great read until you get morgan stanley and goldman in terms of the fixed income currency and commodity trading and the impact of the market, the bond reaction as weiss you were talking about until the following week. >> that's true. but what you'll see from -- first of all, i think part of that is in the stocks already. there will be less impactful to the bank's earnings and then uch t

look at bank of america, jpmorgan chase. let's bring in nicole petallides. nicole: i am watching dell right now. today was the day, july 18, the meeting convened. it has been moved to reconvene on the 24th. it certainly is a complicated matter. many people who are in support of michael dells offer. some of those actually were on the fence. in that 11th hour, they have come through. the question is whether or not karl icahn, he continues to fight his fight. back to you. cheryl: thank you very much. ♪ dennis: time to make money with charles payne. banning the latest issue of rolling stone magazine. what do you think this means? dennis: cbs was the very first to do it. i find it very interesting. speaks i was going to ask dennis your thoughts about this as well. dennis: another desperate as measure by magazines. the thoughts that stores will censor or decide that i cannot buy this because they do not like it. that is censorship. i think it is a mistake for retailers to start getting involved in individual case. >> everything they sell goes through a process.

>> jpmorgan, looking at the financials first. the retailers. and then, you know, after that, there's a mix of all technology stocks, but definitely starts with the financials. >> alcoa is the kind of company, caterpillar and alcoa, two worst performing companies this year, saying something about the nature of our economy, when the two biggest industrial-based companies in the dow are suffering so much right now. >> you have to remember something, caterpillar had a great move last year. and they -- they're -- a lot of the sales are hinged on europe and whatever the potential is in china. so, you know, we're moving into a new era now. now it's more u.s.-centric companies. you look at -- to me, alcoa is a much broader play. i'm looking more as a u.s. play, is what i'm looking at. so, i mean, with alcoa and k caterpillar, they have a larger exposure overseas. >> is the weakness in the nasdaq today something you think that portends more broadly for overperformance of that index relative to others? >> it can. as far as i'm a -- i'm a new york person,

and so a couple of names in each of those in the financials i think the banks are doing better, jpmorgan has had a nice run, but it is still a significant upside, a very good quarter, things are improving the jpmorgan chase is one. in the technology space, google continues to grow revenues, and just an innovative company that continues to take market shares. liz: your third take his home depot, you're still very much a believer there. >> exactly. of course it is a direct play on the continuation of the housing recovery, which i think is still in tact. very good management as it has maybe 15% upside from here. liz: how much to look at management because frank is amazing. look at this one your chart. a great job, he has been very confident even in light of a downgrade or two in the stock which has been the appropriate that but what else to look for when you are strategizing? you have a proven record, people want to know how does david joy do it? >> management management are exe important. you can have a great strategy, if you don't execute it will not succeed. the management is extremely i

we welcome back richard magadan of jpmorgan private bank. good to see you again, richard. >> great to see you. >> you know, talk to me about the tapering versus tightening argument that's going on on wall street. >> sure. >> how do you view it, and how is it influencing where you put your money to work? >> it's funny i was going to kid you by saying the reality is interest rates are going up. markets are already tightening, and believe it or not, bernanke is doing a brilliant job navigating de-leveraging on one side. we saw athe lot of that in may and june which people have forgotten about and signalling to people we think rates are going high. so far low end is low, credit is still cheap. high-end rates are going up, and we expect it to be a gradual step-up over the next year, year and a half. >> you still like the united states. >> yes. >> probably better than anything else around the world. is that a correct assumption? >> with the passport and paying taxes, yes. we've been over the u.s. market now for 18, 24 months. that was very controv

on to our wall of shame, we pit jpmorgan chase, for settling allegation it rigged electricity, market in the midwest and california. there they are. wall of shame. coming up, your home is full of hidden dangers, the statistics will shock, that you is next. with fidelity's options platform, we've complely integrated every step of the process, making it easier to try filters and strategies... evaluate them withur p&l calculato.. and execute faster with our more inttive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. gerri: surprising dangers in your home, how to fix them before it's too late, right after the break. gerri: how do you do that? we're looking into hidden dangers in your home, the statistics will shock you, joining me now to hazard proof your home. tom, author of book, my home, my money pit, your guide to every home improvement adventure. i trust you on this i know you know stuff that the rest of us don't, walk through th

jpmorgan ceo jamie dimon sitting down with the top dogs for the financial markets. the eu sets out new plans for failing banks. >>> good morning to you. the dow is up 75 points. the s&p up 11. right now futures indicating a lower start at the open right now. the s&p 500 is currently some four points below fair value. nasdaq five points below fair value and dow jones, actually just some 20 points below fair value. futures were lower around an hour or so ago. ftse is up. we had been stronger asian markets despite the weak chinese trade data. european equities lower during the course of the session. and we're down about nearly half a percent for the ftse. ftse in italy down a percent. italian banks hit after the s&p downgrade. so plenty of comment already today on the channel. here is a recap of what the experts are saying. >> last quarter of this year we'll see a depreciation. and that's the question we talked about in washington at the moment. u.s. and china talks. the americans want to avoid that. a lot of other things they're talking about, cybersecurity and so on.

. >> and goldman strong revenue trading, but how does that compare to competitors like jpmorgan and citi. and the alpha conference kicks off tomorrow. we will give you a preview of what to watch for. and once again, with coke, the shares are down in the premarket and take out the items in the second quarter earnings and in line with the case volume down below forecast, and this is what coke cfo had to say this morning on "squawk." >> it was disappointing in the quarter for volume and we said all along along the road a bump here and there and we didn't expect the world to have a bump and the whole industry slowed down. a lot of it is the macro environment, but a lot of oit is weath -- a lot of it was weather. i hate to say weather, but it was. and the point is that we continue the take share. >> talked about a wet season around the world. monsoon season in india and weather in the states and currency, too, jim, forecasting for hit they will take on the currency later this year. >> i want to know if it was raining on their side of the street and sunny on pepsico's, and yesterday they were

jpmorgan, raymond james rates this one a strong buy. telling their clients they see a more favorable outlook for eps growth. their target is 64 bucks. apple is working, nice back-to-back gain. yesterday apple filing a trademark application for an i-watch in japan. we'll end on ford, gm, and toyota all giving us their june sales. all above estimates. guys, back to you. >> thank you very much for that. >>> the protests continue in egypt as high ranking government officials quit their posts. we are live in cairo. yusef? >> the situation is very, very tense in downtown cairo. you can hear some of the honking and chants in the background. everybody is prepping for day three of these demonstrations. so we expect as we have seen in the last two days opponents of incumbent president mohamed morsi to come out and to show their discontent with the current way things are being dealt with, but the problem is, carl, that you also have those supporting the incumbent president planning competing rallies, and that is where there is tremendous risk of v

goldman sachs, jpmorgan and others old warehouses. miller coors says they are slowing delivery of aluminum. the delays are driving up the price. >> the increased cost that we incur take away from innovation and new products that we can come up with. rich: the things warehouses are part of the system. in a statement, goldman sachs says the warehouse companies say they do not own it and its facilities. lme warehouses are prohibited from trading all products. back to you. connell: rich ads in from d.c. dagen: thank you so much. we talked to the host of a brand new host of an hg tv. connell: the suspension of ryan braun. why it is a good thing for baseball. ken rosenthal will make the argument. before we get to all of this, let's get back to the markets. let take a look at the winners we are seeing on the s&p 500. ♪ connell: here is a look at what is coming up on market snow. home moving off of the market quicker, we will talk to mike aubrey as those of the show power broker. we have china up promising to keep economic growth above 7% a

would you rather, i think a lot of people are looking at jpmorgan and the sentiment that's been there for multiple years, since the financial crises. it's been a one way street. when you look at these banks and you look at how negative the world has been on citigroup for a hole host of reasons, a lot of things are changing there. since new management came in they have put up a lot of got quarters. when you think about it on a valuation basis citigroup is projected to have double budget earnings where jpmorgan is single digits. so to me when you think about restructuring and think about how they're going to get cost savings out this is where you're going to get that move that barron's is talking about. >> international exposure could be a positive or negative. they have more than any of the other banks. also, they have this city holdings which was all the krud or whatever from 2008 which they have been widdling down down down. we're starting to see the light at the end of the tunnel. you can see how earnings would improve there on top of expense savings. more potential bank for your bu