Start to august. Yesterday, you were looking at the dow industrials, the dow transports, the s p, the russell 2,000, all closing at record highs. And the nasdaq was at a 13year high. Meantime, take a look at the tenyear. Yesterday, very interesting action here after all the strong economic numbers that we have been looking at. You saw the tenyear rising above 2. 72 , climbing again today to 2. 738 . What was interesting about that is while the yield was climbing, stocks were climbing too. People are looking at the good economic numbers and thinking, okay, maybe things are actually finally starting to turn. They kept coming, they kept it looked like a few i was wondering how the dow was going to finish as the tenyear. The tenyear yield was climbing through all of that. Same thing, trying to get that 38. Right. So many facebook shareholders waiting for that bad moment. As we mentioned, the data is coming after the markets closed at new all time highs. The dow was up 128 points yesterday, closed to 15,628. The s p 500 managed to add 21 points to close above 1700 for the first time ever. The dow and the s p are up about 20 for the year. Thats a phenomenal climb. It wasnt a bad day for the nasdaq either. Up more than a percent to close at 13year high of 3,675. Still, a long way to go for a record in that index. But, yeah, 20 for the dow and s p. I wondered if you 3600 on the nasdaq when we were at 1400 after we did the 5,000. Thats not bad. The dow, the s p has never been over 1700. The dow has never been over 15,627. Wow. There you go. Thats 628. I dont know what it was. Fresh new high. Fresh new high. All time fresh new high. Lets talk about dell, the soap opera continues today. Will the third time be a charm for dell shareholders . Theyll get together once again in round rock, texas, to vote on michael dells 24. 4 billion offer. But carl icahn is still leading the charge against that offer, calling it too low. Icahn is now suing dell and its board to try to block changes in the offer that could impact the voting. David faber was reporting last night that the talks between michael dell and silver lake, that consortium and Dell Special Committee continue and the focus now is on a higher bid from that group in exchange for a shift in the voting standard, the talks are said to be tenuous, but progress apparently being made. Should be interesting to see what happens this morning. I should say it is also possible this is not the final episode that this vote gets pushed. I know of three people who did not get on planes last night because they were told this is not going to happen this morning. A big surprise if it does. If you dont vote at all, it is right now, the deal is if you dont vote, thats considered a no. What michael dell wants to do is raise the bid to 1375 in exchange for the ten cents for that. What about the hanging chads. Those are yes, right . Unlikely that the board is going to go along with turning the no into a yes. I thought they said they wouldnt yesterday. They wouldnt unless the price goes higher. Does the price get to 1380, 13. 90, could we get to 14 or maybe you dont give more cash. Maybe 13. 75 is my high, best and final on the actual bid, ill provide a new dividend, can dividend money out to shareholders early. We can do some back end deal. There is a couple of Different Things in play here. Reminds me of that election. To change the you dont have enough votes to change the way you count them it very im not disagreeing with you. The fact that they agreed to this sort of set of rules on day one kind of crazy. They were trying to they were trying to be magnanimous. They were trying to be such good boys. They must have thought they thought, wow, we got to i think they it is going to come along with us, were going to be so genteel about how were doing this and here we are. Before the activists. A great deal too. I think michael dells deal is the best. I think shareholders are getting a great deal. Im not convinced that i think i hope that michael dell buys this thing, he can turn it into a success, i think it could be a very tough challenge. Pcs are just not every quarter we have i dont think carl icahns deal offers a better deal. It never has been for all the shares outstanding. I think his point is correct in that you cant change the rules. I think Michael Delano l kno what hes doing. Do you think that carl icahn can make something . Carl has no idea, i dont think. Doesnt mean hes not right about things. He did inclone. You think he went and looked at the Clinical Trials of herbatux. How about motorola. What was his plan for smartphones. He wanted to do a dell will be a shelf itself. My wore i have if carl buys the thing, ultimately sure everybody gets the cash out, but then the company is bankrupt in five years. I would agree with that. It doesnt mean that carls point is correct. If i told you as a shareholder you could make more money today than the company would be bankrupt in five years, is that better than taking a slight little less with a chance that the company and the company is really successful. There is always two scenarios. Like, Eastman Kodak will not go away. Ask me in five years. Ill tell you what the right answer was. Hewlettpackard, nobody will survive, except for apple . People have been changing their opinion. Same with dell. It might end up, novell or apple . A lot of corpses that litter technology and then ibm, the main frame is dead too. Look at ibm. Hes good. Hes smart. It is his company. Hes barely 50. He does not want to lose this thing. Right. Im just saying it might not either way. You could see five years from now dell might be a flourishing company. You dont think so. You keep using the b word. I think it could be if michael dell is in charge. If michael dell is in charge, i dont think it will go bankrupt. Im saying if carl icahn runs it, his whole plan is to lever the company up so high that there could be anxiety. Could you care less about this . Youre fabulous fab. It is an interesting discussion. I mean bored three minutes ago. Thats not true. I think ill paint the ceiling pink. Lets get to mary then. Fabulous fab found liable in the fraud case, defrauding investors. Mary thompson has the details on the trial. I wasnt surprised by the verdict. I thought he might lose simply because i think thats the way juries operate. However, i always thought this case was tenuous. I think, well, some people thought it was tenuous. I thought the s. E. C. Thought they made a very strong case at the end and they were somewhat surprised a verdict didnt come back sooner. The courtroom in general was surprised because they were not expecting him to be found on liable of six of seven counts, for the s. E. C. , it is a big and needed victory in the case brought against the former goldman Vice President in 2010. Attorneys say this enhance the reputation as a watchdog and will embolden it to pursue others committed of wrongdoing. Here is Matthew Martins after the verdict. Were gratified by the verdict and appreciate the jurys hard work. After a day and half of deliberation, they found tourre liable on six of seven counts of violating securities law. Violations linked to a bet on the housing market, tourre put together for john paulusen in 2007. Over the more than twoweek trial, the s. E. C. Referenced well publicized and personal emails sent to and from tourre to prove its case. The agency accusing tourre of deliberately misleading investors by withholding information about the role paulsons firm made. Paulson pocketed a billion on the bet. The other investors lost a billion. The verdict is a big a surprise to the defense who felt their clins w client was convincing on the stand. So much so they didnt call any witnesses. Tourre admitted to mistakes, but said he didnt mean to confuse anyone, telling jurors he was there to clear his name and tell the truth. He showed little emotion and declined to comment after. Financial penalties to be decided by the judge later while the s. E. C. Will decide whether or not to impose a lifetime ban on tourre from the securities industry. As for Goldman Sachs who settled with the s. E. C. Over this matter, it said it remains focused on being more transparent, accountable and responsive to the needs of its clients. Do you think they should have called witnesss . Do you think this was a major mistake . Theyll say, if youre a defense attorney, last person you want on the stand is your client in large part because you dont want anyone to come up and say he said this or she said this and then not have a chance to rebut that statement. So really, if you were watching him on the stand, hes very energetic, very likable, very smart. So i think they felt the jury would he would appeal to the jury and there would be there would be more inclined to mary, i can only say from what i saw of the video of him walking outside and in and out of court, you were there with him during a lot of those times, i was a little surprised he seemed really kind of care free about the whole thing, very relaxed, which i can understand trying to present a front of confidence, but at the same time, did he seem more remorseful or like he was taking this stuff seriously in the courtroom . I wonder what the jury read into it. He did have that great energy. I dont think remorse is anything you saw from him in large part because i dont believe he did anything wrong. And so thats what he was there to tell him. After the verdict was read, he kind of he looked over and raised his eyebrows like that and then went out. His i think they feel there could be or there is a case for appeal. And that will happen once the financial penalties are decided. Is there any knock on effects to goldman or others in this case . We asked martin, he declined comment at this point. As everyone pointed out, any press reports you read, it was a dark day for goldman. It prompted them to do this review, internal review. Do we know, Goldman Sachs has been paying legal fees for fab out of their own pocket. Yes. Did they pay for an appeal too . I dont know that. In some cases you have an Insurance Company that pays for everything. If you lose, you have to pay them back. Im wondering if he has penalties, does goldman cover that or does he cover that out of his own pocket. I would assume penalties he would have to cover. In the goldman case, they do not have an Insurance Company. That i do know. Selfinsured. Selfinsured. You can imagine what our favorite what the huff post would do if they wanted to be reimbursed for lost legal fees since they lost. The nerve of the evil squid going after its poor low level employee and trying to recoup the money that it spent defending him. Because i think i would think the Huffington Post would be thrilled about an s. E. C. Victory and would want the guy to go to jail even though this is they would be mad if goldman tried to get money back. Im with you. You are . You dont think they would think goldman, the fat cat, poor little fab, this low level a lot of people are criticizing they didnt go up any higher, didnt get fabs boss. They treated him as if goldman, which is back to 160 goes to try and get fab, to try to get the money back from the guy who takes the fall guy for lloyd you think he should pay the penalty too . I think goldman just ought to keep their head down and just have this go away. It went away. It basically had gone away. Now it looks like, i mean, if you can get a guilty for fab, it looks like the act itself once again i never thought the act i think if you have, you know, even gold, you can design something. I can design something thinking gold is going to go down. Somebody else absolutely has the opposite reaction. Thats making a market. What they were doing with fab was trying to prove that he was intentionally misleading people when he was selling. If youre wrong about what youre what if he had put that portfolio together two or tree years before that, with the same stuff he thought was in there and then it doesnt matter. Runs for another two or three years. What youre doing is making a market. There has to be two sides in a market. The aca, like, the journals point is to paint them as, like, novice investors, couldnt figure out that applauding the s. E. C. They said theyre congratulating them, they thought there was no case there in the first place. Very bizarre thing. They said, congratulations, but we never thought you had anything. Right. Thank you. Mary, thank you. Sure thing. This was fun. Youre going to see fat cats going after poor fab, the low level guy that took the fall. Ill see if i can get an answer for you. If i check my emails, i might have an answer now. Time for the Global Markets report. Ross westgate is standing by in london. Good morning. A lot of green arrows here. How about there . Ahead of the employment report, slim gains today,follow ing not bad gains yesterday. Were near the best levels of the session. Not huge moves too much of interest for the employment report coming out. But, theyre thinking we may get a bit of numbers. Ibex just up a quarter of a percent. Shows you the mood really. Volumes are fairly light. Now, this move in the ftse despite the fact we had Construction Survey today. The best level for three years. Another good bit of data out of the uk. Couple of stocks in focus, rbs, 3. 8 lower today, the majority Stateowned Bank confirming ross mcewan is going to replace the outgoing ceo steve hester effective october 1st. The announcement comes as the bank went back into the black for the first time, posting a pretax profit of 1. 4 billion pounds compared to 1. 7 billion last year. First time in a long while they have been making profits here. But numbers are still weaker than expected. Toyota doing pretty well, up 3. 3 . The weaker yen helping the japanese carmaker, biggest automaker raising profit forecasts as well. Now expecting to post 20 billion in operating profit for the full year. Two standout corporates. Well keep our eyes on the debt market as well. Saw the spike higher in treasury yields and dragging yields higher over here in europe. 2. 3 , now yielding 2. 47. Treasury yields at 2. 73. Bound yields up at 1. 7. The only one outperforming is italian yields, a little lower today. 4. 36 . Whatever happens in treasuries is going to have an impact around the globe. Thats where we stand right now. Back to you. Ross, thank you. Have a great weekend. See you next week. You too. When we come back, jobs and record highs for the markets. Will todays jobs report spark a rally and move the taper further down the road . Well kick off that discussion right after this. And as we head to a break, check out the surge in the dow transports. This was an unbelievable move yesterday as the dow transports are up 208 points, 3. 2 , the biggest percentage gain since march of 2012. Investors were focused on the july jobs report after the fed gave few, if any clues on tapering its Bond Buying Program earlier this week. Joining us on the markets is alan gail, Senior Investment strategist at Ridgeworth Capital management. On set with us, bob costas. Bob, if you look through all the numbers that we got yesterday and all this week, all the jobs numbers in particular, they have been better than expected. Does that mean that you raised what youre expecting, your expectations for todays Big Government report or where do you stand . Im looking for slightly stronger numbers. Looking for private payrolls up about 230, headline number up about 220. I dont know what it is, but the ism Production Index tells me it is correlated with other components in the series. Production index is stronger than orders and backlogs and some of the other components in a way that it has never been before. The diversion was huge, way off the map. I dont know what it means. And it may seem like autos because we know autos didnt have a shutdown and that has something to do with jobless claims. But chicago area should be picking up auto activity, on the weaker side. So the fed regional indices were a couple of them were strong, philadelphia was very strong. New york was okay. Dallas and kansas city werent really so great, positive, but not great. So, you know, you have different measures trying to sample the same thing but use different concepts and give you different answers, it tells you the economy is irregular. I still think it is irregular. We had a strong adp report. Im not convinced on the economy. Im looking for a stronger employment number. You look at this and the signs and try too figure out what the fed is reading, they seem to be focused on the jobs picture too. Do you think this is making the case for them to taper as early as september . I dont know. Theyre focused on the job market. We had a weak revision to gdp. Look at the new gdp profile, the dese desell ration is much more pronounced than it was. They kicked up growth. The quarter was stronger than expected, the desell ration on year on Year Growth Rate is a lot more severe. If youre the fed and looking at job growth, we have 196,000 jobs over the last 12 months and the previous 12 months. The fed keeps talking about jobs accelerating. Over what time horizon . Jobs have been steady. Now gdp is decelerating, you cant expect that job growth to continue if the economy is deted decelerating. They did something very strange by saying their view, their expectation are different. They said now it is their view for the end of the year rather than expectation the economy will do something. I dont know how it is different to say you have a view instead of an expectation. If it is so significant, they need to change it. What does it mean . Listen, if you mess around with the view to be an economist, you need an ph. D. In english, not in economics and you dont need math skills, you need to be able to read, though. We used to argue about what the meaning of is is. That was bill clinton. Washington. As the market was moving yesterday, what struck me you watch the ten year yield push above 2. 7 , and the stock market continued to climb is this an indication that good news is good news because while the gdp numbers were weak, all the economic numbers we got yesterday were stronger than expected. I think thats true. In managing the strategies, were looking at three things. Just going back to the earlier what were seeing is a macro climate that is improving. I would push back a blilittle b over the course of the second quarter, it is clear we saw a slowdown in shipments but started to see a pickup in new orders. I think were poised for a better second half. I think the pickup in the ism while higher than certainly i think everybody expected in