it is 4:00 p.m. on wall street. do you know where your money is? welcome to "the closing bell." i'm melissa francis in for maria bartiromo, and here's what we are following at the close. a seesaw trading day on wall street. stocks strug tolling find direction after a mixed economic report by the imf. concerns about earnings season and weakness in the energy sector. that is because oil prices just keep collapsing. crude falling $2.79, or 4.4% today, wow, to close at $60.14 a barrel. oil is now down 15% over the past six trading sessions. and earnings season is about to kick off. alcoa just moments away from reporting its second quarter results and we'll bring you instant analysis as soon as the numbers are released. here's a look at how we finished the day on wall street. the dow climbing into positive territory. look at that, up 15 points. about .2%.

remember, we had been negative for most of the day. the s&p closing in negative territory. although just barely so. and the nasdaq closing up just 1 point. let's get more on today's action. bertha coombs is our eye on the floor of the new york stock exchange. bertha. >> a wild ride, melissa. we saw all of the indexes here below some key support levels. they crashed through with that commodity meltdown that we saw this morning. the dollar peaked at about a three-week high on the dollar intext. that sent oil lower. the inventory numbers didn't help. gasoline demand continuing to look weak. but what the energy and commodities sectors took away in the afternoon suddenly we got to some levels where people decided to do a little bargain hunting, buying tech, consumer staples. we're watching for earnings catalysts. last earnings season we had that better-than-expected outlook from wells fargo that really got things going and carried through with a lot of the financials.

alcoa kicks off this afternoon. rich peterson over at thomson pointing out that the last time they surprised to the outside was in the second quarter 2008. they've had three consecutive quarters of losses and generally missed. we'll see what happens today. drug stocks again taking leadership as people look for a little bit of safe haven in health care. earlier in the day amgen a huge winner popping up on an osteoporosis treatment for breast cancer treatments. mike huckman blogged about that today. as far as technology in the afternoon, take a look at the microsoft chart. that really indicates where you saw some of those big caps. we saw them about an hour ago, we saw some piling into big caps. they hadeen under heavy pressure this morning. and the retailers really on fire this afternoon moving higher despite the fact there's still very much concern about consumers. we are going to be getting same-store sales for june tomorrow. family dollar was a standout

after beating on its earnings and providing a good forecast. those june comps not expected to be great. melissa, in fact the big box stores tend to disappoint big lately. although we don't get numbers from walmart anymore. back to you. >> okay, bertha, thanks so much. protecting your portfolio through periods of consolidation, my next guest says it's essential throughout the summer months. here to talk about it is stu schweitzer, global market strategist at jpmorgan private bank. we also have scott rand, senior equity strategist at wells fargo advisors. gentlemen, thanks so much for joining us. >> pleasure, melissa. >> stu, let me start with you. the collapse in optimism is palpable. yet at the same time you know, we watched the dow fall back into positive territory today. where are we? >> you know, we're setting up for earnings season, and i won't be the least bit surprised, melissa, if companies report positive surprises overall. but last quarter the way they did that was by slashing costs. their earnings came in above

expectations but their revenues below, and the only way you can make that happen is by cutting heads. by cutting costs. and unfortunately, that means people. and that's not sustainable for the long term. so i think if we see more of that, and that's what i expect, that we're going to have to be increasingly concerned about more of the kind of miserable job news of the sort that we got last week. >> scott, i mean, i don't know if you caught that ten-year auction today. it was absolutely blistering. the bid to cover ratio was like 3.2, or something like that, which to me i think said that a lot of people are even more risk adverse right now. what does something like that tell you? >> well, i think we're in for a little period of risk aversion here, and really the pullback, you know, we had looked for the s&p to trade into that 950, 975 kind of level. and then have a pullback in consolidation, which is going on right now. we're pulling back about 8% or so off those highs. this pullback is going to be defensive. it's going to be kind of a flight to quality kind of thing as you saw with the 10-year

auction today. i think right now, you know, we're seeing a more defensive move. health care, utilities, staples, they lagged sorely in this move we've seen since the early march period. but i think this is just going to be an opportunity for clients. we've been trying to tell our clients, encourage them to hey, you need to set yourself up up now for the next 12, 18, 24 months and that's going to be a cyclical kind of a situation in our opinion. >> stu, it seems like this is going to be a really important earnings season because in the past we kind of knew what to expect. either it was going to be terrible and we knew that or we thought it was going to be good. here steemz people are really split that we could because our expectations have been ratcheted down so much, we could see pleasant surprises. on the other hand maybe things are a lot worse than we think, maybe these guys are going to come out and their guidance is going to be terrible. what side do you come down on? >> well, i think that earnings are going to be terrible. they may be a little less terrible -- >> how about guidance? >> excuse me? >> how about guidance? >> oh, i'm sorry, i missed that

part of your question. i think guidance is going to continue to be very cautious. there's really no percentage in companies being optimistic and risking getting people overly optimistic and then having a setback to their shares. but i think the other question we've got to ask is what's going to be the response out of washington to this continued malaise? and there's beginning to be talk of another stimulus package. personally, i think that if we continue down this roofed more and more head count reductions and let's not talk about it that way, more and more people losing their jobs, that i think the talk of stimulus is going to grow, i think it's probably going to happen in that case. and then i think the next case is going to be for inflation. >> yeah, although we've only spent 10% of the last stimulus so, let's not get ahead of ourselves. scott, how do you invest in this environment? >> melissa, i have to agree, when we've only spent 10%, 15% of the stimulus plan, it's hard for me to believe that we need another one right now. but that's what politicians do. but --

>> you didn't hear me say we need another one, just that the politicians, i agree with you, scott-r going to do with it. >> tell me how to invest. >> here's what i think you need to do, melissa. i think in this pullback if you're not underweight health care, underweight utilities, and at least even weight staples you need to reduce those positions in those particular sectors. what you need to do with the money that you get from that is you need to look at the consumer discretionary sector. you need to look at the industrial sector. sectors that are sensitive to the economy because you know, we have a target of 1150 in the s&p by the end of 2010. if we get there, it's going to be a cyclical move, not a defensive move. >> we have to leave it there. i could talk to you guys all day but they won't let me. >> always a pleasure. >> here are some of the other stories we're following on the closing bell ticker right now. amgen announcing its experimental osteoporosis drug met a key goal in the late stage rally. it outperformed a rival drug by novartis in preventing bone

injuries in breast cancer patients. wall street has been viewing the drug candidate as amgen's next big potential blockbuster. and take a look at how those shares are trading as a result, up 13%. power producer nrg energy rejecting a takeover offer from rival excelon worth $7 billion in stock. they say the sweetened offer still undervalues the company. the move likely sets up a potential proxy battle later this month at the shareholders meeting. take a look how those stocks are trading today, both higher on the news. and robert w. baird downgrading starwood hotels to underperform from neutral because the hotels sector likely won't turn around in the second half of the year. the analysts there also say the owner of the sheraton and westin brand is feeling increasing pressure on the raelt real estate holding and international growth. shares down more than 5% on the day. the treasury department naming the nine funds of the public-private investment program. p pichlt p.

blackrock, rlj, western asset management-a license bernstein, marathon asset management, oak street capital, tcw group, and a venture of angelo gordon and ge cap real estate. one notable name missing from the list, pimco, the largest bond manager, not on there. interesting. we're obviously going to have a lot more on that breaking story when we come back. still to come on "the closing bell" we'll tell you about a growing problem for the struggling housing industry that could affect you next time you buy a home. and later, maria bart rohmo's exclusive interview with hank greenberg. coming up, did his outlook on the economy d the significance his legal win against aig. we'll be right back. bl

apartment vacancy rates hitting a 22-year high in the second quarter according to real estate research firm reese. apartment vacancies rising to 7.5%, nearly 1 1/2 points higher than a year ago because rising unemployment is reducing demand during the peak leasing season. rents falling the fastest in markets which have cut white-collar jobs, no surprise. such as new york and san jose.

and the markets where a lot of foreclosed homes and condos have been turned into rental properties including las vegas and orange county. but the troubling news for the housing market doesn't stop there. the fbi says mortgage fraud is rampant and getting bigger every day. cnbc's diana olick is in washington with all those details. diana? >> reporter: in addition to that, melissa, just a few hours ago the manhattan district attorney announced indictments against 13 people in a $100 million-plus mortgage fraud scheme. the defendants include lawyers, bankers, appraisers, and mortgage brokers. and it is just one example of a growth trend. >> this one shot -- we say over $100 million. it could easily be $200 million. it's hard. we're still looking at it. but that's one group we've looked at with $200 million of bad loans that were then bundled and put into cdos and put out into the secondary market. in the new york metropolitan

area alone if you talk to the various d.a.'s offices there's hundreds and hundreds of these cases. >> the fbi now reports losses of $1.4 billion to financial institutions last year due to mortgage fraud with cases rising 36% to close at 64,000. fbi fielgsz through march put fraud reports on track to hit 70,000 this year. fraud hot spots range coast to coast. the report blames falling home prices and rising foreclosures for fueling a rampant fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living. just over a month ago president obama scientist fraud enforcement and recovery act, committing $500 million to fraud prevention and enforcement across the fbi, the u.s. attorney's office, the s.e.c., and other government agencies. it also expands the justice department's authority to prosecute mortgage fraud. still the fbi reports that various housing rescue programs

out there today actually provide even more incentives for scam artists. melissa? >> yeah, diana, i mean, it seems like this is the kind of -- this is exactly what you would expect. as more programs go out and people get more desperate that we're going to see more and more fraud. is there any hope that it's bottoming or coming to an end? >> not at this point because you've got so many billions of dollars out there that the government is putting out. you've got these refi programs. you've got these modification programs. and you've got very desperate borrowers. and that is just ripe for the picking when you've got a scam artist out there who can use it from both sides. >> all right. diana olick, thanks so much. we're getting alcoa's earnings right now. i'm hearing they lost 32 cents a share. much better than -- well, better than expected. they were looking for a 38-cent loss. on 26 cents loss excluding items. that's the cleaner number, 26 cents excluding items. pretty good. let's bring in min yee, analyst at morningstar, for instant reaction to this. min, what do you think about this? what do you think about that number? >> well, i think it's actually

better than expected. the cleaner number is 26 cents. it's probably a result of lower input costs taking effect and showing effect in the second quarter. i think generally for aluminum looks like the worst is over. because aluminum prices have pretty much stabilized, although at much lower levels, around 70 cents per pound. they haven't been falling anymore since march. and we have also seen sharply lower input costs such as caustic soda and things like that. i think going forward the benefit of lower input costs will be more obvious in the third and fourth quarter. >> it's difficult to know what to make of this market, though, because on one hand you look in london the supply of aluminum is at historic highs. at the same time you hear the ceo saying that, you know, he sees china bouncing back, that

they're out of the woods, and that he sees a bottoming outor ev a recovery in se sectors, including alumin. how do you sort rough those different factors? yeah. >> thas a very good point. i think there are obviously two sides. on the supply side aluminum fundamentals are pretty weak because inventory levels are at a historic high on the london metals exchange and there is plenty of excess capacity around. alcoa itself has like 20%, and there's more in other parts of the world. and then if you look at the demand side there are definitely signs that demand is stabilizing, or showing the first signs of stabilization. and china, again, china is a huge swing factor in aluminum because the country produces and consumes 35% of the world's aluminum. if china doesn't overproduce and if chinese demand is stabilizing, it's a net positive for aluminum producers all over

the world. >> min, i'm going to interrupt you for a second because we have rebecca jarvis with us who has a more in-depth take on the numbers, and then min, we'll keep you around because we'll get your reaction. rebecca, go ahead. >> this is a big top line beat for the company. revenues coming out far ahead of expectations. $4.24 billion versus expectations, which had been more like 3.9 billion was the consensus estimate. the clean number, as we've been repeating here, 26 cents of a loss versus 38 cents of a loss. they've seen three consecutive quarters of losses. but in the discussion, melissa, you with just having there one of the important components of this story is obviously aluminum prices. since the first quarter aluminum prices are up about 9%. so that explains some of that top line beat there because about 70% of this company's -- 70% of this company's earnings comes from the aluminum complex. so it's a very important component of the story. we'll be listening in on their conference call when it begins live at 5:00 p.m. but two key questions here.

demand going forward and prices of aluminum going forward. and of course that will have implications for the global economy as well. melissa, back over to you. >> min, the stock is pretty beaten down if you look at it over a longer time horizon. they're saying they're seeing a bottom, a lot of it is predicated on aluminum prices holding up, as rebecca just said. would you recommend or buy this stock right now? >> well, i think alcoa at $9 per share is inexpensive. especially considering that they still have very attractive upstream assets. our fair value estimate is $14 on the stock, and our suggested buy is $7. so we think people need enough margin of safety to buy -- to invest in the relatively high-cost commodity producer. and i think investors need to be very patient because, again, aluminum fundamentals are pretty weak due to high inventory and, you know, plenty of supply. and on the demand side we saw

that china is buying more aluminum and producing more because their stimulus package is taking effect. but still, this government spending is just taking -- i mean absorbing the slack from lower private sector investments. >> min yee, thank you so much for joining us today. we appreciate it. >> my pleasure. the government has spent billions of your tax dollars to stimulate the economy, but so far not much to show for it. and that's got congress asking questions about how the money is being spent. details when we come back right here on "the closi bell."pe s th. you really need it tseays. how come? well if you're hurt and can't wo it pays you cash... yeah to help with everyday bills like gasthe mortgage... ...and groceries it'sike insurance for daily ling. so...what's it calle uhhhhh aflaaac!!!! oh yeah! that's i aflac. we've got you under r wing a-a-a-aflaaac!

tdd#: 1-800-345-2550 including who i ust to look after my money tdd#: 1-800-345-2550 tdd#1-800-345-2550 "the dust might be settling... tdd#: 1-800-345-2550 that's great, but i'm no" tdd#1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with doing nothing, you know?" tdd#: 800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking aboumoving my money. tdd#: 1-800-345-2550 i am ming it." dan marino influenced me and he really pushed m to get on nutrisysm. introducg the all-new nutrisysm for men, flexible new pgrams personalized to meeyo goals. t on the program, eat properly, you're going to se weight. it's actually easier than . that was rlly good. thanks. i had awese results and i've kept ioff for three years.

for a limitetime, get an extra three weeksof mea. that's right, you can get an extra 21 breakfasts, lunches, that's 105 meals free. that's what guys like. "tell me, 'do this,' i do it, i lose weig." with prices asow as $12 a day, you'll savhundreds over other weight-ls programs. order now d get an extra three weeks of fantastic meals. that's rig, 105 meals absoluteree. call or click w.

time now for "going global europe." hello. i'm guy johnson. here are the stories we're watching in europe tomorrow. the italian town of l'aquila plays host to the world's most powerful leaders for a second day with most attendees ever for this event. can any consensus emerge from this year's summit? the bank of england is almost certain to keep rates at their record lows. 0.5%. when it meets on thursday. but stay tuned for news for the 125 billion pound quantitative easing program. and air france klm holds its annual general meeting. as the airline industry faces its most difficult period in its history, what with will we learn? tune in to cnbc world to catch all the action overseas.

at cnbc's european headquarters i'm guy johnson, going global with your money. lawmakers holding hearings on capitol hill today to find out how the billions in stimulus money is being spent. cnbc's chief washington koefrnt john harwood is at the white house, where he's following the money trail. john? >> reporter: melissa, this is a very interesting turn in the political debate over the economy. all of a sudden republicans think they've got the democrats and this popular young president on the run. the house republican leader john boehner today accused vice president biden of lying when he said over the weekend we hadn't realized how bad the economy was. and at that hearing that you mentioned representative darrell issa of california said the size of the deficit shows -- and the unemployment rate shows that not only is the stimulus not working it's bad economics. >> in fact, i believe that the discredited keynesian economic theory behind the effort is misguided, and i'm con vinced that it won't work. unfortunately, recent economic

data has validated my opposition. the u.s. economy lost 433 net jobs in june, bringing the unemployment rate to 9.5%. >> reporter: now, that's tricky political argument for democrats to responds to. governor ed rendell, a democrat from pennsylvania, was on cnbc this morning, said in fact the stimulus has prevented things from getting worse. but he was forced to acknowledge that the economy may now need a booster shot. >> without the stimulus program every state budget in this country would be in far worse shape. tons of state workers, county workers, teachers, police would have been laid off. but i think there was too little of basic infrastructure. the projects we can start right away, the shovel-ready, fix it first projects. there was about 100 million of that. i think it should have been double or triple that. and if we do a new stimulus, it can be modest. it can be $200 million of all infrastructure. that's what gets people back to work. >> reporter: so melissa, here's the quandary faciefaceing democ.

with unemployment rising, the deficit very large, they know many people in the public are going to be looking at their policies, saying they're not working, what can we do about it, and they're not sure what to do, melissa. >> i have a lot of comments about that, but we don't have time. john harwood. >> reporter: don't hold back. >> up next, we're speaking to the head of one of the most powerful companies in advertising. sir martin sorrel tells us when the global ad market may recover and what it will look like when they do. we'll be back in a moment. >> here's a look at some of today's winners and losers. on this endless ocean ♪

♪ fally lovers know no shame ♪ watching in slow motion ♪ake my breath away (announcer) ge locomotives. customers ve them almost as much awe love making them. ♪ my love (announcer) innovation today for a. but we also spe mpgs so you can fly byas stations. in fact, we speak mp sfluently, we can say one more thing.

the new ford fusion the most-fuel-efficient midsize sedan in am and that's something no o else can say. speak the 2010 ford fion. get in... d drive o

okay. we had breaking news at the top of the hour. those ppip managers we had announced nine of them we had said pimco is not included in the group and they have in fact responded and said they withdrew their application in early june that's why their name wasn't on the list. we wanted to give you that tid bitd. the annual allen and company conference is under way in sun valley where movers and shakers are gathering to discuss the

nature of the business. that's where we find julia boorstin and sir martin sorrell, ceo of the wpp group. julia? >> reporter: that's right. sir martin sorrell runs one of the biggest advertising companies in the world. thank you for joining us. >> a bit better than london or new york. >> reporter: absolutely. beautiful. >> particularly early in the morning. >> so the global ad market is expected to drop about 8.5% this year. the u.s. ad market is going to drop about twice that. when do you see this advertising recession turning -- >> not quite sure if the statistics are right, but i think most people are forecasting the world ad market's going to drop about 6% or 7% with the u.s. being tougher than that. when is it going to get better? danger in forecasting. foolish. i think the second half of this year will look better than the first half, but that's against weaker comparatives last year. our revenues were up 4 3 2 0 in the sequential quarters. therefore we're going to be lapping quarters which are easier to lap.

2010 i think you'll see an anemic mild recovery. but again, it's because of the weaker comparison. what we've seen in april and may, tougher than the first quarter, hadn't seen june yet, but i doubt whether we'll see the pattern change. and i think there is a bit of a feeling that the fiscal stimulus has been put into place as yet is not working. i haven't had a chance to gauge the mood here at the allen & company conference, but generally the feeling on both sides of the atlantic is that things are not going quite as right as people thought they were when the stock market started to move a few months ago. >> and you mentioned earlier before we came on that you think president obama needs to do more of a fiscal stimulus? >> i don't know if he nds to or not. but i think one sense of what the administration's been saying in the last couple of weeks, what we're hearing him pre the g-8 and what i think we'll hear at the g-8 either publicly or privately, what we're hearing here from some of the people here is that i think there is a need on both sides of the atlantic for a little bit more. i thought at one stage that we

might be seeing -- we saw some flip-up in china in april. our business is up there by about 25%. but what it really turns out to be in may is restocking because inventories were taken down in the latter part of last year, the beginning of this year. so i think what we're seeing is a relief rally no, armageddon no, apocalypse now in the stock market, and what we've seen is a restocking cycle taking place. no real recovery yet. maybe a little bit of midsummer lethargy. people kissing off the summer on both sides of the atlantic. and holiday season. maybe a little bit of that. but i think the general feeling is a little bit more downbeat than it was a few months ago. >> question about digital advertising which is doing better than the rest of the ad market. wpp spent $850 million of your clients' money with google, just with google. how important digital advertising to your company's future? >> well, it's 25% of our business. just like the emerging markets, asia, latin america, africa, middle east, and the central and eastern europe are 27%.

and really there are three drivers for our business in the future, which we think the current recession will improve the prospect for. first of all, the brics and next 11, the emerging markets, 27% to at least a third of our business. secondly, digital. 25% of our business. we want that to at least be a third of our business. and third, consumer insight. we think clients are very focused, particularly in these difficult times, understanding what consumers, you and me and others, are thinking about, what we're -- what we are driven by or not driven by, trying to understand that in better detail. on digital the cost of digital is much less than old media. and i think digital appears attractive because the absolute cost is less. although it has to be said we still don't know from a measurement point of view how more effective digital is or not. >> well, we have have to watch and see what happens. >> next year maybe at sun valley we'll know the answer. >> thank you so much, sir martin sorrell. and melissa, back over to you. >> thanks so much, julia. a jury ruling former aig

chairman and ceo hank greenberg doesn't need to reimburse the company for more than $4 billion he took from a retirement fund. up next he tells maria bartiromo in an exclusive interview how he has invested that money and when he thinks the u.s. economy could stage a comeback we'll be right back here on "the closinbell."

here's what to watch for tomorrow. >> rick santelli on the floor of the cme group. you have to tune in tomorrow 8:30 eastern. you know, after last week's weak employment report our initial claims going to go back down closer to 600,000? are continuing claims going to get under 6.7 million? important questions. they'll be answered at 8:30 eastern tomorrow. i'm rebecca jarvis at cnbc headquarters, where we'll be taking a fresh look at the consumer and retailers with june's chain store sales results. all right. take a look at the day on wall street here. oil tanked and just about took the rest of the market with it, but the dow clawed its way back there in the last 90 minutes or so of trading and ended up higher on the day by about 14 points, almost .2%, 8,178 the trade there. s&p tried very hard to get back into pitive territory and almost made it, closing down a

point and a half. the nasdaq composite trading up higher on the day by one point but essentially bottom of the session crude oil trading at just 3w6 0 bucks a barrel. up next maria bartiromo's exclusive interview with hank greenberg, get his outlook on the economy and the significance of his legal win against aig.ns weill beight back here on he closing bell." eed? eed? where will you find the stability and resources to keep you ahead of this rapidly evolving world thare tough questions. that's y we brought together two of the mo powerful namesin the in. troducing morgan stanley smitbarney. here to rethink wealthagement. here to answer... youruestions. morgan stanley smith barney. a new alth management firm morgwith over 130 yearsrney. experience.

"fortune" magazine just released its annual global 500 ranking of corporations. found in the latest issue of the magazine. it's not just a list but a window into the shifts in profit making and power in the corporate world. it's reall interesting. we go through some of the top mes and what some of t changes signal with "fortune's" senior editor leigh gallagher. thanks for joining us. >> thanks for having me, melissa. >> one of the things i find interesting is the u.s. has the most companies on the list which isn't surprising but the collective evan of that list is the lowest since "rtune" started compiling the list. i guess it's not surprising begin the state of the economy

but it's just more of a commentary. >> yea exactly. you can see inteing shifts ase do these lists every ye. this year there are 140 u.s. companies on the global 500. and at sounds likea lot, and it certainly is. it's by far the most of any other country, second to japan, which has only 68 companies. but it's the least since we started doing this list in 1995. so you do see the big picre trends. th the u. is kind of-- of cose after what's happened in the past ye, y mentioned that's not very surprising. but nonetheless, when you put it in the global perspective, it's interesting to see. >> there were a lot of chinese companies on the list, and they were state-owned for the most part. >> yes. >> which is an interesting commentary in and of itself. just the sheer size and force ancan they keep i up with statmoney backing it. >> very true. there's only 37 chinese companiebut ni of them are newcoms and all of those companies,ll of tse 37 are -- the rest are climbing. that's where the mov is happening. as you mentioned, it's mostly state companies.

and a t of these companies of course have gotten enormous infusions from the goverent in china and there's not much transparency. so it's hard to see wherereal innovati is happing and where there is just size and scale. but that's definitely a big headline from the list this year. >> what s unexpec to you out this list? >> well, i would say the growth of china. i mean, of course, that's expected. but the degree to which probably was a surprise even to us. the other thing that we're seeing, which isn't so surprising is that 7 out of the top 10 companies are oil companies. so you know, that's because this list is base on 2008 revues d, you know, while the price oil's cliin now it hard to rember that lastear it was extremely highnd thated the profits and the revenues of these mpanies just so much. it also shows you just how global the oil business is. when we do the domestic list, the fortune 500, three or four of the companies are oil companies but you forget that some of the oil giants are

glal. i ean, total i france or bp or royal dutch shell, which is the largest company on the list. it's interesting. >> what did you learn about the ncentrion of wealth, or wherwealth is shifting? >>well, i mean, the big broad ush strokes are still the same. the u. still dominates. but definitely grow in china and also growth in india. india and china, where things have sort of isolated a little more, those economies are growing. and you know, it's kd of a different story whenou look at the rest thelobal economy. >> yeah. okay. leigh gallagher, thank you so much for coming on and a really interesting list at the magazine. thanks so much. up next, maria bartiromo's exclusive interview with former aig chairman and ceo hank greenberg. hear where he's investing right now and where he's finding t biggt opportunities around the world. l be right back.

i get the question "does it work?" all the time, and you know what, it works. nutrisystem for men: flexible new progr personalized to meet your goa. what's great aboututrisystem is you eat theoods you love

and you lose weight. i'm dan mari lost 22 pounds on nutsystem and i've kept it off for three years. for a limited time get an extra three weeks of me! that's rhtyou can get extra 21 breakfasts, nches, th's 105 meals free! i had awesome results. i me, i lost 22 pounds, my goal was 20, it came off fast,and the fo. it's what every guy's en waiting for: it's healthy weight loss d it's flexible. with prices as l as $12 a day, you'll save hundre over other weht-losprograms. orr w and get an extra ree weeks of fantastic meals. that's right, 105 meals absolutely free. guys, you can do ts. just pk up the phone and call. you will lose weight. in these markets, m ad i turned to fideli for an annty with guaranteed income for life. that's right, guarante income for life.

it's guaranteed, matter what happens. if granteed income for lif unds good to you, do what i did -- lefility be your guide. call fidelity at... for details out guaranteed incomr life. welcome back. alcoa shares have reopened since reporting earnings, a beat on both the top and bottom line in the after market. those shares, as you see on your tv screen, are up more than 8% right now. and as we know, with that restructuring charges the profit-loss was 26 cents. that was versus xpgsz of a loss

of 38 cents. and also a big beat on the sales line. the top line 4.24 billion versus expectations of 3.9 billion. and the stock is seeing that benefit in the after-market. melissa, back over to you. >> thanks so much. hank greenberg coming off a major victory after a federal jury ruled in his favor yesterday. aig accusing its former chairman and ceo of taking more than $4 billion in stock from a company pension plan back in 2005, when he was ousted as the top executive at the insurance giant. the jury ruled, though, that those shares fwlong cv star, a private firm chaired by greenberg, and said it wasn't responsible for reimbursing aig. earlier today maria spoke exclusively with mr. greenberg and asked him about the case. >> tell me really what the critical piece of evidence was that turned them, that made them come up with the idea that in fact you don't have to give aig

this stock, or this more than $4 billion. >> the original evidence, whatever to support their contention, we had tons of evidence. david boyce and his team organized it from 1970 all the way through. there was no evidence whatever to justify their claim. >> and you started cco for what reason? >> you have to go back to 1970, when we were creating aig, a public company -- or private company, c.v. starr & company and aiuo an overseas network of agencies were sold ultimately to aig. sico, star international -- we changed the name to star international. got aig shares for that. and a major part of the shares we got, all of us who owned stock --

>> several investors. >> yeah. were setting this aside so we can buy other companies, we can control aig with these shares. including, if we wished to, always -- we retained the right to do or not do something. it was our option. since we owned the stock. >> it was a private company. >> yeah. create possibly an inincentive program. it wasn't a pension plan. aig had their own pension plan. and so we did. and because by doing that it benefitted cico, if aig about-d well, cico did well. when i left aig, cico's net worth was $20 billion dollars. to believe these shares were held in trust for aig was simply

never true from the beginning. >> i like what david boyes read in the paper, his quote was, if this was an incentive program how come it's not in any of the financial records and audits of aig. what about aig now, do you have any idea of significant of the lawsuits are, the legal ramifications surrounding aig right now? >> i think they're very considerable. look, i offered for months to go to binding arbitration on this and other matters we have with aig. it was rejected. i went to see the new york fed, talked with them. i know that members of congress, the oversight committee, were in favor of binding arbitration. it was rejected. why? who's benefiting from that? >> lawyers. >> yeah. i mean, you know, paul weiss is the law firm for aig. you know, they're the ones --

they don't want binding arbitration. they would love to keep this going forever. >> in a situation that hasn't moved at all, paul weiss is making tens of millions of dollars on this whole thing. >> that's correct. >> let me get your take on the reverse stock split aig went through a couple weeks -- a week and a half ago or so. stock has plummeted ever since. >> it made no sense. why -- do you think you're fooling somebody by saying, we're going to give you one for 20 and the stock is going to sell at $20 a share and that's going to somehow put a floor under the stock? people are not that foolish. >> particularly institutional investors, which is really the investors they're trying to get. now, the money from sico, what did you do with that? did you invest around the world? tell us how you invested that money. >> what we did, and i'm glad we did, we sold some of the stock, aig stock. i wish we had done that for some

of my colleagues. and, yes, we've started two insurance companies out of both the stock that was -- we called the acquired stock and the share holds stock. there were two different categories. we invested in different countries, some in asia, some in the united states, some in russia. we've done business in these countries for years. we know the places we're investing in. now, that doesn't mean that everything is doing well right now. obviously, the world is going through an economic downturn and it will take time. we're pretty comfortable with what we're doing. >> you mentioned you wish you had sold the stock personally for yourself and obviously for some of your colleagues. what is the significance of this verdict for you personally? how much at risk were you? >> it doesn't make any

difference to me because the money's not mine. >> it's sico's. >> i'm only one of 11 voteding shareholders in sico. it's not for me. ultimately the beneficiary is a charitable trust. and we want to build it up again so that it will go to a charitable trust. that's the whole purpose. the purpose was never that the voting shareholders would have this for themselves. that's not -- that was not the case. >> so can you tell us where specifically you found these investment opportunities? i know you've invested in russia, you're off to china once again. you've been very active in china, the first businessman to do so and you're continuing that today. >> yes, i am. not only in china but other parts of asia as well. and we'll continue to invest and build as we see opportunities. >> where are the -- is it real estate? any particular sector you can talk about? >> look, i think -- the thing i know the best is obviously insurance, personally, and i think it's an opportunity in the

insurance field but there are many other classes of business that are opportunityistic and we're hopefully participating in those. you know, health care, environmental, these are going to be growth industries in china. the infrastructure is growing rapidly. china is an enormous country. it needs tremendous infrastructure. and it's job creating. and so they need all of that. they have to create between 10 and 12 million new jobs a year. i mean, that's an -- >> so keep up with the growth. >> yes. it's an awesome responsibility. >> what can you tell us about the environment in china. a lot of people are talking about the stimulus package working much better there than here in the u.s. >> because they put it to work right away. it's hard to find the stimulus package in this country where it's working. you know, it's going to come out next year or whenever. but, you know, we have a lot of

infrastructure to modernize and to improve. i don't see it happening yet. >> how is obama doing? he was in russia yesterday. a lot of people said the relationship -- or the rapport seemed to be icy between him and putin and him and medvedev as well. what did you think about the visit to russia for obama? >> well, i'm glad that the president went, because i think the relationship has to improve. i was in russia about a month and a half ago. with a small group. we met with president medvedev. i came away from that meeting, as did my colleagues, we came away, i believe, pretty convinced russia would like to have an improved relationship with the united states. it's a two-way street. they want some things and we want some things. and it takes some time to negotiate these differences. >> but from an investment

standpoint, hank, some people say, look, there's not a rule of law. how do i know my mope is safe and protected in russia. >> look,ist not the only world in the country where the rule of law is somewhat not what you like. but you have to know how to do business in the country. i've been doing business in russia for many, many, many years. and aig, i built a life and a nonlife company in russia. we have some real estate investments in russia, starr international has investment in a bank. we have lots of investments and feel pretty comfortable. >> how does the environment feel to you in the u.s.? do you think we've turned a corner on the economy? commercial real estate is still a question mark out there. >> i'm very concerned with the economy. look, i don't see any evidence that we've -- that we have turned the corner.

i think unemployment will continue to rise. and that's very, very concerning. i feel so bad for those people who are unemployed. millions of unemployed people. and i don't see big ipos, none of that, is taking place. so the economy's got a long ways to go, from what i can see. commercial real estate is in a tank. don't see any evidence that that's turned a corner. and so i think we have a ways to go. look, government involvement in business, deciding who the directors are, what their compensation is going to be, what they can and can't do, that's not the american way. we were a free enterprise country. yes, there are some -- there were some difficulty. we can deal with those without changing the basic concept of what made america great. and i hope that we're just going through a phase. >> all right, that was hank

greenberg. let's take a look at how the day closed on wall street before we go. the dow closing up in positive territory. really clawing its way up about 15 minutes points on date after crude oil fell dramatically. a little more than 4%. it closed just above above $60 a barrel. the dow clowed back. the s&p tried but ended up slightly in negative territory. the nasdaq closing up by just about a point. "fast money" is coming up next. thank you so much for watching. have a great night. alocoa shares soar more than 7% after hours as the dow component kicks off earning season with a smaller than expected second quarter loss and larger than expected revenues. "the wall street journal" says pimco withdrew its application a month ago due to uncertainties about the plan's design and