voicemails on their mobile phones. treasury secretary tim geithner says congress -- derivatives were the cause of last year's financial crisis and need to be more tightly regulated. that's cnbc.com "news now." i'm scott cohn. and this is a live picture of wall street as we enter the final and most important hour of the trading day. we are watching this market under some selling pressure today on wall street. as we wrap up another week. we are beginning our summer on the street series. hi, everybody. welcome to "the closing bell." i'm maria bartiromo, today coming to you from outside the new york stock exchange, right at federal hall, as we kick off our annual summer on the street. we'll be here on fridays in the summertime, give you a little taste of what's going on outside the new york stock exchange. joining me for the entire hour today, duncan niederauer, ceo

nyse you'euronext. we've got some sun here. >> maybe you brought it with you. thanks for being here. nicest day we've had all summer. >> glad we're able to do it now the weather's a little nicer. let me get your take real quick. we had tim geithner testifying earlier. what was your take on that? anything strike you? >> pretty consistent, priet? i think secretary geithner is continuing to say it's going to be about transparency, it's going to be about more standardization, it's going to be about bringing some of the stuff that's in the dark into the light. and it's pretty consistent with what we've been saying, this is going to be about investor protection, it's going to be about transparency, it's going to be about hopefully smarter regulation and not overregulation. >> we want to get your take on how you manage your business in the face of what could be more regulation, not necessarily just stronger regulation but actually heavier regulation, which is what a lot of people are expecting. duncan will be with us for the entire hour as we approach the final stretch here on wall street. in the meantime, we've got our

team covering the markets. let's get right to it. the dow jones industrial average once again as we enter this heavy second quarter earnings period season, we kick it off with our eye on the floor of the nyse. take it away, bertha coombs. >> maria, today it's all about hesitation. we had that consumer sentiment number this morning that really set the tone negatively. consumer sentiment falling. the initial reading here in july rather than the expectation. and we are expecting next week a very heavy rotation of earnings with about a handful of dow components reporting. also goldman sachs with the banks. and we've also got big economic numbers. lots of news on inflation. chevron's warning certainly didn't help. that has helped bring energy prices lower. take a look at chevron. it's warned that second quarter refining margins have been hit hard by higher prices on oil. the downstream guys really getting hit hard in the quarter. they didn't give numbers on their earnings, but nonetheless it's brought energy players

down. and you know, it was a year ago that we were up near $147 a barrel and all the commodities were on fire, and the fertilizer stocks, take a look at them today. potash getting hurt. and they are getting squeezed as far as negotiating prices in india and china. that's what the market's been watching. and those fertilizer stocks today have been hit hard. the one bright spot this afternoon, the industrials and the transports in particular. they are moving to the up side. they do benefit from those lower oil prices. we've got oil below $60 a barrel for the first time in a long time. let's move on over now to the nasdaq and mike huckman. technology another bright spot today, mike. >> yeah, at least for some stocks. and wel get to that in just a moment. but for now this is the number we are watching because according to our resident stock stat guru, robert hum-f we close below 1755.75 this will be the worst week for the nasdaq in two months.

and nothing could turn this around, not even a bunch of relatively bullish analyst calls in tech. i'm talking hardware, software, the internet, across the board. the exception is apple, which is up 1 1/2%. credit suisse raised its estimates. goldman sachs raised its price target. but goldman also moved dell from a hold to a strong buy, essentially, and investors are saying so what? goldman's thesis on hardware is that a corporate i.t. turnaround, spending turnaround will occur next year and that the hardware makers will be the very first beneficiaries. we heard a similar theme in the software space coming out of infosys. this is the indian software services company on its earnings release saying that it sees an i.t. spending turnaround in the middle of next year. but that stock up 5%. finally, moving on to the internet stocks, we've got yahoo up on an upgrade at thomas weisel. and finally, ebay and general motors announced today that they'

they're going to test out in california a new feature online to buy new cars. sharon, i buy a lot of stuff online. i'm p sure i want to buy a new car on the internet. >> people are buying cars and demand is why we're seeing such depressed energy prices. keep in mind demand is the big story here and why we're $87 lower than we were on the second friday of july in 2008. that's when oil prices peaked above $147 a barrel. today we settled below $60 a barrel. keep in mind the decline we've seen in the last week of about $13 has a lot to do with demand. the international energy agency today talking about demand for this year being down about 3%. it sees it recovering a bit in 2010, but the supplies we have in the u.s. and the non-opec country are a lot more than what would expect. and what they had expected. that also very bearish for prices. all of that weighing on prices. again we have oil at the lowest levels we've seen, rick, since may of this year. >> well, i'll tell you what, not

only do we have that condition, but as everybody's brought up today, of course michigan definitely didn't help stocks, but it did help in another regard. rates down. and if you look at an intraday chart, down rather substantially. we're talking ten basis points. and it's also kind of the relief in the marketplace after a week of supply auction ppz but there was a bit of news today. 26 billion deficit on the trade. that indeed was good news. it was the best probably in about a decade, and it improved not because we had negative imports and negative exports but because we had positive exports, granted the negative imports is a consumption issue regarding consumers maybe credit strapped. but still was a pretty good dynamic. the next two charts are about foreign exchange. we talked about the dollar index, basically sideways of late but wild. but let's look at the components. if you look at the pound, what's interesting is it is at a key level. 160. you want to watch this. the last one, the dollar-yen, we're at the worst levels

against the yen since february. watch this chart, especially next week with the data. m maria, back to you. >> thanks very much, rick santelli. we break down the market action right now with two guests with me here at federal hall. david darst is chief investment strategist with morgan stanley smith barney. and rich peterson is manager of credit and risk strategies with standard & poor's. always good to see you. >> thanks for having us. right here new york stock exchange. george washington, the bill of rights, and maria bartiromo. okay? four of america's great treasures. >> you're so sweet, david. let's talk about the catalysts for the second half of the year. we are now firm l. in the second half of the earnings reporting season. anything that impresses you? how do you want to invest in this environment, david? >> we've started to put a little money into real estate investment trusts. we're starting to add gingerly as the market sells off here. it rose 40% as you know. the top was june 11th, 945. it's backed off to the 890 area. we would be adding slightly here, maria, in the real estate

investment trust area and in commodities. we think that the quarter earnings will come in minus 20%. the first quarter was minus 35%. there's an improvement, and we expect it to turn positive in the second half of the year. the full year up 3%, maria. >> and you just put new money into real estate investment trusts. >> that's right. they've dropped -- they dropped from peak to trough, maria, about 75%. >> valuation call. >> they're selling at 50% of their net asset value. we saw they raised $16 billion in april, may, and june. and finally, maria, the real estate investment trusts, when something goes down 80% and it's got quality, we think the down side's 10% in this level, and maybe up side 50% to 100%. >> and yet, rich, a lot of people feel like real estate, particularly on the commercial side of things, is the next shoe to drop. what are you seeing in terms of that part of the economy? >> the concern there, maria, obviously with the retailers, because you have ongoing bankruptcies in the retail sector. eddie bauer filing among others

that are causing concern as a tenant for the real estate firms. but more importantly what we're seeing out of our capital iq estimates for the second quarter about a 33% drop in earnings from the year ago period. led by materials, financials, energy. i believe the leaders are going to be in health care and consumer staples. what we're seeing also is just the continuing deleveraging by corporations and consumers. that's going to weigh heavily on both profits and valuations. because if you look ahead to 2010 the best case scenario for s&p 500 earnings is about $65 a share. you put a 13 multiple on it, fair value is 780. >> so we're still very much in this deleveraging period even though valuations look good on a price to earnings ratio. >> it's a combination of higher unemployment. put it this way. there are so many misreads. the administration thought with the stimulus that the unemployment would peak around 8%. now we're looking at double digits. >> a lot of people did think we're going to see 10%.

that wasn't a surprise to a number of economists. >> but also more importantly with a stimulus plan that was hoping to create jobs could bury jobs because of the states and locality's shortfalls are going to use their money to supplement their own coffers. >> now everybody's talking about whether or not we need a second stimulus plan, david. where is the growth in this economy, and do i want to be investing following that growth? >> well, we like health care, as richard said. we think the growth is going to be in technology. we like technology. it's 52% of their earnings come from outside the united states. let me tell you, there's so much cash sitting on the declines. 86% of the wilshire 5000 market capitalization is sitting in cash. the long-term average is 40%. so there's an enormous amount of cash -- >> so what is going to be the catalyst to get that cash moving again? >> the catalyst will be one friday at the early part of one of the months on maria bartiromo's show they will announce that the job losses were minus 100 or god forbid they were plus 100,000, and this

market will fly. waiting for the next step up. want to see the fed, want to see interest rates, want to see the dollar, want to see inflation, and want to see jobs. and that jobs is one of the key catalyst that's could be out there. >> yeah, but people are not expecting the unemployment rate -- you just heard what rich said. people are talking about unemployment to exceed 10% at some point. what are we at right now, 9.4% of the country is unemployed. >> and don't forget, maria, the underemployment rate, which includes folks who've left the labor force and part-time workers, is 16.5%, which is a record. >> so they're not included in that 9.5% number. >> no, they're not. but maria, this is a very difficult cleansing and purging, which is setting the stage to basically clean up the u.s. economy and set us, move us into the teens and the 20s, where we will have, we believe, another epic period that brings you to tomorrow's great leaders in regenerative medicine, biotechnology, nanotechnology, vaccines, alternative energy. >> which is where the growth is, what you're saying.

go ahead, rick. >> as we speak now, the concern is regulation and to look at -- the cftc wants to regulate oil trading. the fdic wants to regulate the ability of private equity to -- >> duncan and i were just talking about. >> trading cap to imperil utilities earnings. unlike in prior administrations where they were pro growth and trying to enhance innovation and incentives, now there seems to be a stranglehold on those abilities. >> we're going to talk more about this coming up, gentlemen. thank you. have a wonderful weekend. great to see you as always. richard peterson, david darst. up next nyse euronext ceo duncan niederauer my guest for the hour saying what kind of effect president obama's reform would have on the exchange and the rest of the market. plus after the bell general motors driving out of bankruptcy in 40 days. gm vice chairman bob lutz with us explaining how the automaker can return to profitability, win

customers, and when it may pay the government back since now the government owns an enormous amount of gm, some 70%. that's at 4:00 p.m. eastern. first here's where the sax on a friday afternoon on wall street. the most heavily traded stocks on the nyse led by citigroup once again, break 3g a share. back in a moment.

welcome back from outside the nyse on wall street. as if they didn't have enough going on, ubs now is looking for a head of its u.s. wealth management business. charlie gasparino has been reporting this breaking story today. he's on the telephone with more details. charlie, what do you know? >> how are you doing, maria? there's a short list and they are looking. i'll give you the short list of the short list. jim gorman who's at morgan stanley right now. i don't put much creed nens that. i think two names that are likely to get this are bob mccann, formerly of merrill lynch, and sally krawchuk. you remember her. formerly at citigroup. i think that's where this is

coming down. and from i understand it's going to come down pretty soon, maybe next week. the case that's going on, how that interferes with this, we won't know until monday, until the federal government rules. maria, back to you. >> tell me more about that case, charlie. >> say that? say that again, maria? >> tell me more about the case you're referring to and what -- >> that's the case involving handing over the names of the brokerage clients that the u.s. courts are demanding. the swiss, ubs are sort of balking at that. and the judge is essentially threatening to shut down the company, the u.s. subsidiary, if they don't turn over those names. so as that's going on they are looking to repair this business, which has taken major hits, the brokerage business. paynewebber, 8,000 brokers, they're looking to repair that by essentially hiring a number two -- excuse me, a number one, a brokerage -- >> all right. we'll be following that story next week. as always, charlie, we'll talk to you later.

great work as always. let's get another take on the markets right now. fire up the cnbc investor network. a web cam connection straight from san diego, california today. john glassmann with me, managing director at pacific american securities standing by. john, how are you investing in a market that's down 60 points today but really flat in the last 90 days or so? >> yeah, flat in the last 90 days is really about what it is. and we're trading this market as if wall street has moved to missouri because the market is clearly in a state of show me, show me what's next, show me the earnings, show me the economic numbers. expectations have become so muted, and there's a constant tug of war between inflation versus deflation, economic recovery versus stagnation, capitalistic policy versus socialistic policy coming out of washington. what do we have here? and the market's trying to find its legs and its pricing. therefore, you pretty much have to play the ranges, and we've been using a host of option strategies to take advantage of it. >> well, we'll see if the

earnings show us anything that could certainly be a catalyst. john, thanks so much. have a wonderful weekend. we appreciate your time. we'll talk to you soon. meanwhile, washington looking to tighten regulation in the markets. we are continuing to get thoughts from our guest host for the hour. nyse euronext ceo duncan niederauer. how are you going to operate your business in an environment where you are probably going to see heavier, bigger government? >> certainly, as i said earlier, secretary geithner is reemphasize i reemphasizing what's going to happen at least in the otc part of the market. so let's do a little key word search on some of his words this morning. greater use of standardized contracts, central counterparties, regulated exchanges, substantial supervision, conservative capital requirements, make the markets fully transparent, and give the s.e.c. and cftc clear authority for regulation. i think overall that's the right

direction. the question is how do we get to the details in that? keeping liquidity still in the system but keeping investors feeling like they're protected and they're getting enough information to operate in these markets, right? >> you know, we had roger ferguson on last week, actually-w when we were at the aspen ideas festival, former chairman of the federal reserve. and he said he was disappointed in some of the ideas on the table because felt some of the government agencies should have been merged. he said the ftc and cftc should have been merged, it's too much bureaucracy. where do you come down on that? >> it's about priorities right now. i think most people do agree that those two institutions should be merged, we should be talking about harmonization, we should be talking about more collaboration, at least between the two, and a similar approach to regulation. i think we've got, frankly, other things to take care of first and we should put that on the agenda. but i don't think it should be on the near-term agenda. >> do you think investors have started to raek to some of these

new proposals? here we are friday in the summertime, summer doldrums have begun in terms of volume come in on the light side, certainly on fridays if not all week in the summer time. what do you think's going on in terms of investor behavior right now? >> very consistent with what your last guest said. i think this is a rangebound market. i've said for a few months now it feels more like a trading market than an investing market. and i think the previous guest was right. we all want to see where the market's going to take us next. it feels kind of trendless right now. we have done a lod of treading of water since if you think about it it's been at least 90 days, probably 120 days now. the market's absorbed some ipos, a lot of secondary issuance, but i think the market's looking for the next signal about which way we're going. >> here we are in earnings season. maybe that will give us a catalyst. >> that's going to give a bit of a catalyst. >> we had a huge move up from march 9th, the low for really the year, until may, and then from may until july hasn't done a lot of anything. >> right. >> so you've got a really good

feel for the market. what do you think the second half looks like? >> i think -- i like to think i have a good feel for it. i think it's too early to tell p i think we need to watch how the summer goes. i've been feeling like we were setting up for a low volume sell-off in the summer. haven't really seen it yet. but i think you're right. the market's held on to the gains we had from march to may. one of our good clients on the west coast reminds us that they rang the bell actually on march 10th. so they're convinced that was the low, and they remind us of that all the time. maybe that was the low. maybe we have to get them back and the market will get going again. >> what's your thoughts on short selling? "the new york times" earlier in the week said the ftc is looking at reinstating those rules on short selling like we saw during the height of the financial meltdown. what do you think the impact would be? a lot of opinions about this on the floor of the exchange about putting that uptick rule. >> a hot of opinions in and out of -- in the building, in the market from all constituents, whether it's issuers or market participants.

it's going to be really hard to distill that down to a consensus. so i think the s.e.c.'s challenge is they're clearly going to put some rule back in. after the comment letters and all the thinking it feels to us like there will be some kind of a price test. whether it's applied all the time or just some of the time, i think that's really what's going to be debated the next few weeks, and my bet is you'll hear something from the s.e.c. in as short as a few weeks from now where we're going to go. >> duncan's going to be with us the entire hour. want to get your take on what businesspeople are talking about right now. i know you've been traveling a lot. we'll get to that. meanwhile mike huckman, breaking news on eli lilly. >> a long-awaited milestone for the drug giant eli lilly. the food and drug administration has just announced a few minutes ago that the agency has finally approved lilly's new blood thinner, called effient. this is for patients who have undergone an angioplasty. i think this was twice or three times delayed in potentially

getting aprofl but lilly's finally got it. you should watch shares of eli lilly as well as shares of bristol-myers squibb and san phi aventis because this could potentially compete with the megablockbuster plavix. from those two companies. however, maria, there is going to be what's called a boxed warning on this drug, warning about potential for excessive bleeding. that was seen in a large late stage clinical trial. back to you. >> thanks very much for that wrecking story. mike huckman, we'll be back to you as it develops. up next here on "the closing bell," we will be talking about energy. i'll talk with the chairman and ceo of d.c. energy and ask him where he sees energy prices headed next. he says companies' big bet on wind energy can still be profitable with oilris having flen from the highs. we'lbe back in a moment.

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welcome back. dte energy celebrating 100 years on the new york stock exchange today. the michigan-based utility provider has weathered economic slowdowns in the past. but this time it is hitting close to the home. as the automakers struggle for survival. joining me now to talk more about that is anthony early, chairman and ceo of d.c. energy company along with our guest host for the hour, duncan niederauer, ceo of nyse euronext. thanks for being on the program.

one of the big stories of the day is gm emerging from bankruptcy after 40 days. really an amazing feat, i guess, 40 days in bankruptcy. chrysler, ditto. short bankruptcy there. how do things feel to you coming from michigan, where all of this -- where all of this upset has really occurred? >> well, i think it's a real plus that we've gotten through these two bankruptcies and restructured the companies. and i guess i ought to say my bias. i'm on the board of directors of ford motors, and ford has done extremely well through this period. i think we're set to see a rebound. it feels like we're moving in the right direction. >> does the idea of alternative energy become less important when oil prices come down from the highs? you know, everybody was talking about it when we were at $147.50 'barrel, and now you know, we're down to below 60 yesterday. >> that's one of the challenges. no one wants to talk about the real issue, is should there be an energy tax that sets a floor price for energy so that you can be assures that it's worth

investing in some of these technologies. but that one's a tough political lift. >> are you getting the sense from the government that they think that america has the appetite for what's a long haul, wind energy and energy independence in general? because i think we've talked about tay lot but america never seems to get enough forward momentum on it. >> that's right. we've had fits and starts. i do think things are different. we're seeing a lot more activity in alternative energy. in the automotive sector, the plug-in hybrid is a breakthrough that really solves some of the range problems. but if energy prices stay low for a long period of time, americans are going to not be buying these more expensive vehicles. >> what was the problem with the plug snin because i remember carlos goen came in years ago said plug-in, electric cars are going to be big, and then consumers didn't buy them. >> well, of course, being in detroit, our utility has been a test platform for electric vehicles for years. and the problem was always the

range. people were afraid their battery was going to run down and leave them high or dry and it takes hours to recharge them. the nice thing about these plug-in hybrids is they shift automatically over to a gas-driven motor that can run the car and recharge the battery while you drive. and i think that's going to make a big difference. >> that's a great point, actually, yeah. i guess the fact that you can go both ways is really an attractive solution for people. >> yeah. >> thun of the things we were talking about earlier is what businesses do in the environment we're in and how they respond to the xernlt of the economic slowdown but also the regulatory landscape. i think you guys seemed to still hit it out of the park last year because i think you guys saw some things coming before the rest of us did. what were some of the things you did to help the business, you know, stay on their front foot all last year? >> in a funny way the fact that detroit's economy has been slow for a number of years meant that we knew that we had to size our business to be successful for the long term.

and so we started doing some downsizing focused on efficiencies in the business and we were able to match our size with the size -- people are always going to buy electricity, always going to buy natural gas. we just have to make sure that our costs are in line with how much we're going to sell. >> so for investors watching out there who recognize you're operating electric and natural gas ute ilths, what can you tell them about how your business has been impacted by this economic slowdown? there was a recent report that said the company may have to write down assets based on the chrysler bankruptcy. >> as it turns out the way we worked through these bankruptcies, very minimal impact. we've been very pleased with the way they worked out. we think all of our prebankruptcy arrears owed by general motors probably will get paid off as part of the deal. sought bankruptcies have had no impact. it's the impact on the economy. our sales are off by about 6%. but as i said, we were planning on that, and we're actually hitting our targets for the

year. >> 6% seems relatively positive given the -- >> well, you still have to use electricity when you're in bankruptcy. gm kept the lights on. >> good point. let me ask but the international scene. when we look at the alternative, or the green stories in china, in india, so many other places, can you get -- give us a sense of how important the international need is for alternatives right now and how you could participate in that growth story? >> well, i think it's incredibly important that china and india do start to move in a green direction because this country can do a lot on the environmental front but it will mean nothing if the chinese and indians don't go along. particularly as we talk about climate change issues, they swamp the impact of the u.s. so we've got to get them to move in a direction of installing

more energy-efficient equipment, cleaner equipment on their power plants. >> and as far as huge wind ener it's such a huge commitment for your company. people say sole sr good when the sun is out, wend is good when the wind is blowing, but what about when that's not happening? >> there's a niche for. we believe you've got to have a mix of energy. things like nuclear plants are absolutely vital going forward. we've got to get clean coal technologies developed. alternatives like wind have a role to play, but they also have some of their drawbacks. when the wind isn't blowing, when the sun isn't out, you've got to have backup generation to supply power. so you can't say there's any one answer. it's a mix of answers. >> tony, great to have you on the program. thanks so much. we'll be watching you ring the closing bell. we appreciate you joining us today. and by the way, your dividend hasn't been cut since the great depression. >> and we've paid a dividend every quarter we've been listed on the stock exchange for 100 years. >> and i don't think you would talk about it if you were planning on change that. >> absolutely not. >> and just so you know, maria, there are less than 20 companies that have been listed with us

more than 100 years. so these guys are in the top 15. >> that's something to be proud of. congratulations to you. anthony earley, chairman and ceo dte energy. we'll tack a short break. the "fast money" final call coming to you next. we'll see if the downturn shows any signs of a turnaround. dow industrials down about 60 points. and 7% in a month. back in a moment. - ( trucgine rumbling ) - y,ait wait waiwait waitait, one more thing, one more thing! one morehing. all right. thanks ( oboe/pianoic playing ) annocer: why throw away your money? switcho sprint. save $360 a year with the everythin data family plan and get the blackbry curve 8330 smartphon for just $49.99. deaf, hard-of-hearing and people with speech disabilits access www.sprintrelay.com.

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welcome back. time for the "fast money" final call. could this recent downturn be showing some signs of comeback? how should you be placing your bets sneer joining us with an answer to talk more about that, what's ahead on "fast money" tonight, jim aurio is director of tjm institutional services and a "fast money" contributor. how are you investing today? >> today's an interesting trade. it's a continuation of the risk

aversion trade. we're seeing people sell the risky assets, i.e. stocks, and moving into things like the u.s. dollar and the u.s. treasury curve, particularly the long end of the treasury curve. it doesn't have the feel like some of the risk aversion trades we've seen over the last couple of years where it's been an outright panic. it's just kind of moving the capital. 9 first quarter this year we probably got ahead of ourselves with some of the things we bought. right now people are realizing the recession's probably going to last a lot longer. what i'm thinking is going to happen is people are going to start moving toward consumer non-cyclicals, particularly the food staples. we're going to move from things that you want to more things you need. things like general lls, tyson foods, particularly campbell's soup. campbell's soup is interesting. it pays a fairly nice dividend, they've made money throughout the whole thing, they're having a goo thing, they're also moving into china and russia. it's prepared food you that make at home. tyson chicken, a metaphorical move from steak to chicken in this country is perfect for a play like tyson which has been outperforming the s&p for quite

a while now and looks to me like a solid play. that's where i think we're going to. and some of these aces the volatility's so low that you can buy the shares and hedge your positions with options real easily and make it a nice safe play. >> it's really an important that you say people what they need, not so much what they want. we'll see you tonight on "fast mone money". we appreciate it. she's the woman who called for a second stimulus. laura tyson, member of the president's economic recovery board. plus take your position, a slew of earnings on deck for next week. how you should be positioning your portfolio ahead of the numbers. melissa lee and the traders live at 5:00 on "fast money." up next, we're talking about whether the signs of strength in the ipo market are for real and which you should be focused on. we'll talk about ipos and new supply in the market. after the bell we'll talk about whether investors are too optimistic about emerging markets right now.

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welcome back. there are signs of strength in the ipo market. slight signs, anyway. so far we have seen 14 new u.s. listings this year. and we have seen 134 secondary listings. for more on the pipeline i'm joined right now by david men lowe, president of ipofinancial.com, along with guest host for the hour, duncan niederauer, ceo of nyse euronext. david, thanks for joining us. >> great to be meerp. >> how would you characterize the market for new listings right now. >> i would say it's like a dog that's never gone through any kind of house breaking or training of any kind and you can't put it on a collar, you've got to put it on one of those harnesses and it's like come on, let us go. and it's just not happening because the markets are so shaky and. >> so it's just not happening. in other words, companies are saying i'm not going to put a listing in, i'm not going to go file because if i file and then my deal's out there and it doesn't go or the markets stall out i'm in trouble?

>> that is a very key distinction you that just made there because most people are thinking they don't want to do ipos, but that is exactly what is really happening. people don't want to have their ipos in the marketplace sxefsh says oh, i'm excited, it's a wonderful thing, and then all of a sudden other factors in the marketplace keep it from coming public and then everybody thinks the deal is stale or there's something wrong with it. >> at the same time the ones we've seen have actually gone pretty well. you and i talked about this the last time the three of us were together. there's only been 14 but the 14 have gone pretty well. i think by all accounts -- digital globe. solar winds. the once we've had here. they've set up well. the books come together well. they've priced well. and they've traded well. do you think that's giving people encouragement to bring more deals, or what do you think? >> i think people need to hear more of that coming from people like yourself because 43% of the ipos that have come out actually priced above their initial range. and some of the key metrics we look at that just don't ever make it into the marketplace are

you have the opening, average opening premium of these stocks at $2.91. gain of $3.01. and from the beginning of the year until yesterday's close you're up $4.68. so they're working in three critical phases. >> i thought it was pretty extraordinary how much money has been able to be raised by the financial services companies. when you look at all of that -- the secondaries or the debt as well as equity being sold, they've raised an enormous amount of money, and actually the investor reception was there. >> it was there. that was your point earlier, that the money is on the sidelines ready to go to work. it sounds like we have an excited investor right here at the bottom of the stairs. >> this guy's here every summer on fridays yelling in the streets. >> he's passionate. >> the moodia tends to report the headlines just about ipos. and the ipos to date are a couple billion dollars. maybe $3 billion or something. look at the secondary issuance. the markets are open. >> i think what's important about the secondaries is they are not getting the attention in

the statistics that we're probably having shown on the screen as we talk now, are not including the blocked trades that are coming out. but 91% of the secondaries that have been priced this year are being discounted. that means that the underwriters are trying to make it attractive for the new investors. you know, we're going to cut it by x percent, whatever the number might be, and this is now pushing most of the deals up. >> do you think we're going to see more companies from the u.s. or from outside the u.s. try to come public? i mean, i know you travel all the time, duncan. you were in china. do you think we're going to see more chinese companies trying to list here in the u.s. or european versus domestic or what? what's the mix? >> i'm happy to report we just had a couple of chinese ipos in the last few weeks. again, they both went well, consistent with the other ipos david was talking about. and china's also opened up its local market. what i continue to hear from the international issuers is they're taking a little bit of a wait and see attitude not on the market but on the regulatory framework that's going to emerge

with the new administration. a lot of ideas being floated. a little too early to read are we going to get another sarbanes-oxley or are we going to have something that's a little more business-friendly coming out here? >> very, very important point. david, what do you think about that? we've got new ragry reform on the table from the obama administration. how's that going to impact the ipos? >> i think there's going to be a slight impact, but as soon as we get past this rough patch, whatever it might be, and addressing the point duncan brought out, the foreign issuance is goek to the scales moving down in their favor. once the u.s. market gets straightened out you won't hear about the foreign markets it will be all u.s. >> like you were saying about the pent-up demand here i can tell from you my travels overseas there is plenty of demand overseas. there's a lot of companies ready to go. >> absolutely. ipos and secondaries. >> we'll leave it there. great to have you on the program, david. thanks so much. have a nice weekend. david menlow, president ipo financial.com. up next today's under the radar stocks, check out some of the

days big movers but you may not know about them. health care company kirk & elt mer for one getting a shot in the arm.y 4 1/2% igher. we've got some final oughts from dunk ed raur.d tration. plus support f heart health. that's a greatal one a day men's. wr over here?an eleven sis here you go. eleven sixteenths... (announc) from designing some of tt and most fuel-ficient jet engines... to buildg more wind turbines th anyonin the country... the people of ge a working together... eating innovation today r america's tomorrow. thanks! problem!

and we go under the radar. let's take a look at some of the stocks making moves today that are under the radar. deutsche bank upgrades health care and industrial sciences company perkin elmer. they go to a hold from a sell. not a great recommendation but it's still moving. the company is refocused on prenatal and cell-based research, could increase profit margins according to the analyst. the stock gaining about 4%. blue nile to an outperform from market perform. the amount tells clients evaluation looks good and improving competitor position as well. by the way, this stock is down 20% just in the last month. warehouse shopping club operator price smart reporting an 18% decline in third quarter profits. the company made $9 million. that missed wall street's estimates. and i'm back with duncan niederauer at the nyse euronext. and duncan, you obviously have seen an enormous change in the

environment. we all have. from the performance of the markets to new regulatory reforms. you've got to operate your business regardless of what's going on. how have you changed nyse euronext to adapt? >> made a lot of changes. investments in technology. following through on partnerships like we did, like we just did in qatar a few weeks ago. tightening the belt obviously as a lot of companies have done here. and really also a renewed focus on the issuers. i think particularly in this environment, maria, there's a real chance to think about the issuers and be their advocate and speak with one voice on their behalf as a lot of policies come out of washington. you'll start to see us run some ads this weekend about what we call the currency of trust and how do we restore trust in the system, and i think a lot of times that advocacy also takes the form of partnerships. i know you're going to help us this fall with global entrepreneurship week. >> big entrepreneurship week which i know that i'm moderate be -- >> you're going to help us out with that, and we're going to do some sponsorship with the kaufman foundation and viacom. we're going to run some contests

for -- i call it the search for creative capitalists. go with viacom from university to university and try to find, you know -- have a new business contest almost. we'll bring the finalists back to the nyse. so the advocacy takes a lot of forms, and we're really focused on that right now. >> that's a great idea, bring people back to the exchange. let me hit on a couple things you just said, and one of them is focus on the issuer. that issuer being companies, obviously. >> right. >> what are the leading executives at these companies, your issuers, talking about in what are their biggest concerns right now? >> i think we try to survey them as effectively as we can. our general view is it's hard for them torganize their voice and communicate it effectively. they end up doing it one by one by one. so we have an unbelievable community. thousands of companies that employ tens of millions of people. and the general feedback we get from them on something like the tax policy issue is something we can then communicate to the administration and say we hope this is helpful, here's the reaction you should expect to get from the companies as you roll things like this out.

i think the general reaction from the companies on that issue is what you would have expected. overwhelmingly saying be careful, you might have companies looking to incorporate outside of the united states if you follow through with something like that. >> a lot of people come on this program, actually, heads of large multinational companies, who are unnerved about that tax on international profits. you mentioned qatar in the middle east. you're in some deals there. what's important about the middle east for nyse neuu euron? >> a lost regions of the world are important growth engines to where we go from here. the middle east is one of them. we spent a lot of time trying to figure out who the right partner in the middle east would be just like we'd do in any other region of the world. and we settled with qatar because we thought they were looking to take their exchange to a new level. we think exchanges are part of any emerging economy. we think they're the right partner not only for building an equity exchange with but potentially doing some interesting things in the commodity and index derivatives space over time. they play a pretty important role in that region. >> sheikh hamed, the head of the

sovereign wealth fund, the qatari investment authority, has been on this program. >> yes, he has. >> and been on the exchange on the program. and he has been really effective in terms of trying to build out that economy. what are you getting from the middle eastern investor right now? is there still risk averse there? are they ready -- because a lot of the heads of the sovereign wealth funds including mideast funds bought stocks and then got burned. financial services anyway. >> and a lot of those investments have recovered to some degree too. i certainly didn't get the sense in qatar that they're playing from the back foot. i thought they were definitely willing to play offense. we think our partnership is going to give us an opportunity to do some things together, in fact. and they don't strike me as shy. i think there is a little reticence in the region in the middle east that -- particularly around derivatives. i wouldn't expect to see us launch derivatives out there in the immediate future. >> duncan, great to have you on the program. >> thanks for having me. >> duncan niederauer. we'll be right back with the closing cotdown.

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with a group of private equity investors and -- bertha coombs, over to you. >> thank you very much, charlie. we are closing out the week here with the dow down just over 1 3/4%, having given up some 9% of the june highs. this is going to mark the fourth straight week of the dow jones industrial average and the s&p 500 finishing down for the week. the nasdaq composite today will finish in the green thanks to the upgrade over at goldman sachs on hardware and software. they like apple. they upgraded seagate technologies and dell as well. goldman saying they expect to see some traction in the tech space coming in the second half of the year. but it's that uncertainty about when we might see a recovery that really put a damper on stocks this week and re sets the stage for very important doings next week. here'sth