for a couple of hours. >> good to be here. >> be sure to join us tomorrow. "squawk on the street" is coming up next. live from the financial capital of the universe, this is it. "squawk on the street." good morning, everybody. i'm mark haines. >> good morning, earn, i'm erin bu burnett, i'm looking down because we have the case-shiller price home index t here are the numbers. in the 20 biggest markets in the country, prices fell about 11.3% and it looks like cleveland might be one that sticks out to the down side. david blitz er, you see him on the screen, is with us. chairman of the s&p 500 committee. here with us first. david, i just went through, mentioned cleveland, but the 11 11.3% drop, how do you interpret it? >> cleveland unfortunately has still got a lot of difficulties, it's part of the old-time industrial heartland. it's better off than detroit but that's not much of a compliment, but i think overall, we continue to see slow but now we can almost say teddy improvement we've got a few months under our belt and numbers continue to creep up. looking at the charts right now, it appeared but it is not confirmed that we're turning the corner. >> how much of the improvement is linked to one thing specifically and that is the $8,000 new home buyer tax credity. >> that's very, very difficult to say. there are various factors going on in the market. the one-time tax credit is definitely one of the key ones, it goes away at the end of november, so that's raising some concern. and i think what it's doing to some extent, it's offsetting some of the difficulty people have especially at the low price end of the market in getting mortgages. it's not that interest rates are too high because they're obviously very low. it's that after the last two or three year, lenders have finally gotten a little bit stricter and don't write mortgages to just anybody who happens to pass by. >> let's assume that we are at the fwom. we've seen the bottom. what was the total damage peak to trough? >> probably the simplest way to look at it is prices were up where they were in 2003. we went up for three year, came down for three years and we're back where we started from? >> in 2003. >> 2003. of course if you look at the stock market we're where we were last year, 2003, 2000, 1997, so maybe housing is not such a bad story. >> no, it's not. do the numbers give any interest in what price appreciation we might see in the near future? >> i think what we are going do see going forward is something of a split. at the low end of the market, inexpensive or less expensive homes, i think, that end of the market, first of all be will be damaged by the end of the first time home buyer credit. >> yes. >> second, will continue to see difficulty in people qualifying for mortgages and at best prices would stay flat. at the high end of the market, i think we'll see a little bit of a appreciation but in some of those incredible sun belt markets like southern california, miami, tampa, don't talk about going back to 2006, at least not for at least a decade or something. >> one final question to you, david, on that front. the fed is scheduled to stop buying mortgage backed securities by the end of march. now they could change that but i've seenable sits if that indicate if they do pullback that buying, interest rates on mortgages could go up another full percentage point f that analysis is true, were a full percentage point make a real dent in the market? >> again, the damage is going to be at the low end of the market in terms of price and i think there it will make a dent. remember that in the best of forekarvgts the unemployment rate probably doesn't peak until march at the earliest and we're talking about some time next year. so, you know, we're not home free but it does look better that than it's looked in the last couple of months. >> thank you very much, always good to see you, david blitzer. >> thank you. >> let's hit the markets. we start with mary thompson here at the big board with us. >> good morning to you, mark. futures getting a little bit of a pop in the wake of that home price index from case-shiller this morning. futures pointing to a rebound on wall street. at least for the dow jones industrials, nasdaq futures even at this point. in large part we want to watch the nasdaq because of a disappointi disappointing company baidu. traders say they're folk consumption on this one because they would like to see an improvement in the consumer confidence, home price index. we're watching tech, intels, the ceo seeing higher spending on pcs. and earnings are in focus again among the companies reporting this morning. bp, british petroleum, coming out with better than expected results, thanks to cost cuts. also u.s. steel flat after reporting a narrower than expected loss. now let's get a check on tech with scott wapner. >> prapts it's paul odileni says comments part of the reason why kaufmann is raising intel to a buy rating. also watch microsoft today. as "the wall street journal" said it's in early talks with myspace about a music tie-up and google announced plans to get into the music biz as well. baidu reported a 42% increase in profits however they say a switch to a new advertising system is temporarily going to hurt revenues. that stock is down about 20% premarket. so keep an eye for sure on that one. a number of firms coming out today and lowering their price target, not by a huge amount but nonetheless lower iing on baidu. nice systems upgrade the and cheesecake factory see shares up after cutting sales. we are looking at energy prices getting a little bit of a bit higher akrcross the board. oil pliss still under $80 a barrel. the focus here is on what was is happening on commodity and with the dollar action, we are also looking at what is happening in washington in terms of renewable energy. that is front and center today as the obama administration unveils 100 utility projects part of the smartgrid projects that will see federal stimulus money as well as the senate committee hearings on the ker - kerry-boxer bill. refiners already very hard hit and shutting down their plans, eblgs tending maintenance due to weak demand, now they may face emixes fees they will have to pay and that could put even more damage on the nation's roy even iffers. rick santelli, to you in chicago. >> thank you very much. yesterday, the big news on the dollar bounce l it last? many believe that no, there's a lot of big issues that aren't going to change, even though there's white noise on any given day. as i look at the major currency, the yen, the pace of the canadian dollars. the euro, the swiss franc, all up against the greenback. $44 billion in two-year notes today. everybody, of course has been talking about how the government is going to push more issuance and longer maturities, they're going to reduce bill auction, all this is something to pay attention to, especially at these lofty levels where we continue to see things like nondealer types, buying into the auctions as a safe harbor for money, not necessarily, a nervous safe harbor, we'll watch that today in the auction. now back to mark haines. >> already, mercedes posting numbers this morning. we will show you, mark, how the largest truck maker is fare iin not what you thought i would say. >> no. >> mercedes makes more trucks than anyone else on earth. >> really? >> i would have put volvo in there, but anyway, a first on cnbc interview with s.e.c. chairman are mary shapiro. here's a futures check. welcome back. i'm bob mipisani here in new yo city. we're talking with s.e.c. chair woman mary schapiro. ie just gave a speech here talking about restoring investor confidence. are you on the road to doing that and how do you gauge it anyway? >> it's hard to gauge investor confidence, but i think we're on the road. we tried very aggressively begin the restructuring of the agency, taking handcuffs off our enforcement division to move more aggressively and more quickly. we've engaged in about eight or nine major rule makings to fill gaps that have arizsen as a result of the financial crisis, all with a goal towards furthering the interest of investors. leveling the playing field in the marketplace through issues like banning flash orders and liquidity and i think we're on the right path and way we'll judge our success is over time, it will take time, the public believes the s.e.c. is the cop on the beat again and is there protecting their interests. >> let's talk about a couple of those issue, you mentioned in your speech, did you in the want to let newly engineered financial instruments escape the umbrella of regulation. do you think we'll see derivatives clear and trade on exchanges? >> i think the legislation passes chlgts and two bills mashed up in the house last week or sent out of committee last week so i think we'll have legislation this year. if the legislation passes i think we'll see a high percentage of over the count derivatives with much greater transparen transparency. >> so clear and traded? >> i think it's likely. we'll see, obviously, a long way go to go in the congressional process. >> let's dark about doork cools. is there thaefd a two tier trading system is developing and participants in dark pools may be getting better pricing than nonparticipants. >> we think there's enough evidence this may be happening. well see comments for 90 days, hopefully we'll get economic and other data from market participants and give us time to thorough explore this issue. but other have to operate for the long-term jeinvestor not th short-term investor and dark pools are two paths we're taking. >> you talk and insider trading cases. traditionally, they're only a small portion of the enforcement action, will we see insider trading and the allegation again galleon just tip of the iceberg? >> i won't speak to galleon, but they're a pretty steady part of our diet and i expect they always will be. they go to the core of market integrity. we think that it's importants that while we tackle other market abuse kinds of issues through enforcement that we values presence with respect to insider trading. >> mark haines has a question. >> madam chairwoman, every one of your predecessors for the last 15 years mass complained or admitted they did not have adequate resources. are you getting adequate resources from the obama administration? >> we've gotten great support from the obama administration and great support from congress so far, but the reality is the agency is dramatically underresourced for the seize of the josh, just very rough anybody, we have 3700 employees at the s.e.c. we have 35,000 regulated entities. and we need significantly more human resources and frankly technology resources to be the kind of agency, i think the american people have a right to expect. >> you're always -- >> so while we've gotten -- >> i'm sorry, go ahead and finish your thought. >> i was going say we've got an lot of support, i think we're making up for a number of years of scarcity. we're still smaller, for example, than we were in 2005. >> let me talk to you about competitive -- i'm sorry, mark. >> isn't the reality here, not to be a doom and gloomer but wall street has become so profitable that it can afford the best lawyers on the planet and you can't. isn't that going to be a constant disadvantage? >> it's a little disadvantage. what we have on our side are people who are utterly committed tone forcing the law and they're creative and energetic and yet sometimes our trial team of five or six people may be up against 30 lawyers from a prestigious law firm but if the facts and law are on our side, we ought to be able to it prevail and of course the vast majority of times we do prevail. so we will continue to fight the good fight. >> finally, did you not expect the public outrage over compensation in banks to subside without meaningful changes or the proposed changes, regulation that have already been suggested. enough or will we see more? >> i think fed took significant steps with its proposals on regulating compensation from the safety and soundness of the financial institution. understanding how it might be unintentional incentivizing risk taking. we think that's an important component but my personal view is shareholders a slot to say about what programs look like in institutions. the t.a.r.p. recipient institutions are required to have a say on pay advisory vote by shareholders. if sledge slags passes in congress, that will be extended to others as well. >> mary schapiro of the s.e.c., thank you very joining us. i'll be here all day. i'll be on the air later. >> we'll be looking forward to that one comment as we go to an earn arings discussion, when she mentions shareholdaries lot to say, in the case where is shareholders do have something to say, the latest data which goes to the beginning of this year so there could have been votes that change but 87% of the time, americans voted with management on pay. >> but you see, there's a point i've been trying to make for a while. >> right. >> it's the mutual fund managers. >> yes. >> who don't have a personal stake, they're simply holding the shares. >> right. >> for someone else, they're the ones who are exercising the votes. >> yes. >> and they don't have the interest, that's a big problem in the structure it. >> is. so people say shareholders, especially with senator schumer says he wants an advisory on pay like in britain to restrict payment it's just a big question mark. shareholders have shown they don't frankly care f they do care, i'm not being pejorative about it, they either have to start voting or have to acknowledge they don't think pay is real rant to an investment decision. >> the mutual fund managers are just another class of fat cat, they're not going shoot down the fat cats in the corporation because they're fat cats themselves, that's what makes c calipers, for example, a remarkable organization, they're a huge investment vehicle but they have the -- >> social responsibility, they do have that. >> the stuff to stand up when they feel it's necessary. >> but those numbers are pretty stunning. i believe it was barclays, ameramer amer amerry prise. the header today, daimler. we said mercedes, we understand logic doesn't go both ways. daimler, not mercedes, both owned by daimler. posted its first profit of the year, mark, $83 million. the car company said the economic downturn would continue to weigh on sales. bid/ask down. in germany, daimler has been impressive, share prices have doubled. honda this morning said things are league way up but the reason they're doing well is -- help people are getting in the showroom. what do you they call those subsidies. >> incentives. >> i'm sorry, i couldn't remember the word. >> we are counting down to the opening bell just about 12 -- no 8 minutes away. >> minutes away. >> too early to do this math. >> 9 minutes and 50 seconds exactly. word on the street is next. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 i want everything right where i can find it. tdd#: 1-800-345-2550 anything that makes trading easier. tdd#: 1-800-345-2550 i want to be right in the middle of the action-- tdd#: 1-800-345-2550 you know-- i have to see what's going on. tdd#: 1-800-345-2550 and when i pull the trigger... tdd#: 1-800-345-2550 ...i've got to get the best price out there. tdd#: 1-800-345-2550 (announcer) try the new schwab.com tdd#: 1-800-345-2550 for yourself. tdd#: 1-800-345-2550 call 1-888-4schwab tdd#: 1-800-345-2550 or visit schwab.com/trader today. tdd#: 1-800-345-2550 'course a trade doesn't always work out my way. tdd#: 1-800-345-2550 but when it does... tdd#: 1-800-345-2550 ...man... do i love that feeling. we're back. futures are lower indicating a slightly lower open. what have we lost, a couple of hundreds points the last couple of days? terry don't joins us now. as i recall, you've been skeptical, cautious. >> wet blanketish. >> right. so are you happy now? >> well, you know, i think the market has such great resiliency to the downside,almost kbla complacency on the downside. certainly when the market rises to the level it it rallied in, you've got to have some caution. >> no new money going into stocks right now? >> i think a lot of people are on the sidelines. there's a lot of money that missed the mark market that be buying in. and so far the snapback rallies have proven that to be true. maybe there's wiser money waiting to see if it seeks to a better level. >> thank you, terry. >> thank you. >> countdown to the opening bell coming up, once again, futures pointing slightly lower. [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting? are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up, or visit a td ameritrade branch. wur watching cnbc's "squawk on the street." we're live from the financial capital of the world. the opening bell is going to ring in a little less than three minutes. >> let's give some of that time to pat kernan, a trader at the cboe. i'm sorry, john brady. they switched. i apologize for that, john. >> no problem there. >> i saw you and i should have known. let's talk about the dollar and volatility. particularly to the dollar, everyone is obsessing over the demise of the dollar but we need to keep highlighting it was lower at one point, we hit a low earlier this year. >> we did. the dollar has been a one way trade if you follow the dollar index and yesterday saw a pretty sharp move to the upside on a comparative basis and that traders need to be careful here there's an overhang of noncommercial shorts to longs in the dollar. if there's any sort of sudden type of reversal or sudden change in dollar sentiment, the exits for those shorts could be difficult to attain. so there's an overwhelming short on the dollar which means the exit could be smaller than perceived if there's a sudden shift there. >> could i interrupt you for just a moment, before you go farther. >> sure, mark. >> what is a noncommercial short? >> mostly a levered fund or cta accou account, mark, it's someone who is spifblgly more like a spec account, that somethings capital on behalf of individuals are endowments. following up, in terms of a dollar, there was an interesting trade in s&p and vix which erin may have asked about. yesterday was an interest iing y given the heavy volume we saw in s&p and m&e futures. the opening figures published by the cme group suggest there were large new positions established yesterday in the index. we think that going into the heavy data set calendar of wednesday, thursday, specifically gdp and durable goods, there are probably some opportunistic accounts, mark may call them noncommercials who are perhaps going to take some short positions just to see how the economy is doing coming out of the third quarter. >> quickly, but we have about 30 seconds before the bell, john, but today is the big day for issuance in the treasury market. $44 billion in two years. and obviously, we're going have to have the debt ceiling lifted by congress. any concern over the auctions today? >> there could be. the role between the current o two-year note and this afternoon's two-year worth about 57, 57 1/2 basis points currently. the note is probably the most sensitive to fed policy. less been a lot of banging on the table about reverse repos and what fed policy may look like in the winter and the spring, so we think it it rallies closer to 1%, demand may wane going into the data calendar, however if they lower th themselves and yield higher. it's better than 0.1. >> thank