BREAKING NEWS FROM CNBC'S DAVID FABER: STEVEN COHEN SAYS HE'S NET NEUTRAL ON U.S. EQUITY MARKETS

WHERE: CNBC'S "THE KUDLOW REPORT"

WHEN: WEDNESDAY, MAY 11, 2011 AT 7PM

Following is the unofficial transcript of breaking news from CNBC's David Faber.

For more information on this story, go to: http://www.cnbc.com/id/42998320

All references must be sourced to CNBC.

*****

LARRY KUDLOW: I'M SORRY, FELLAS, I'VE GOT TO CUT OFF, BECAUSE BREAKING NEWS. I'VE GOT TO THROW THE BATON TO DAVID FABER SOMETHING OUT THERE IN LAS VEGAS. HELLO, DAVID.

DAVID FABER: HELLO, THANK YOU VERY MUCH, LARRY. WE WANTED TO BRING OUR VIEWERS UP TO DATE AS STEVE COHEN PREPARES TO MAKE SOME REMARKS, PRESIDES OVER SAC GIANT AND EXTRAORDINARILY SUCCESSFUL HEDGE FUNDS. ABOUT TO MAKE REMARKS, AND WE HAVE LEARNED WHAT THEY'LL FOCUS ON IN TERMS OF HIS APPROACH TO THE MARKET. OF COURSE WE'LL ANTICIPATE A QUESTION OR TWO ABOUT RAJ RAJARATNAM AND THE CONTINUED AT LEAST FOCUS ON S.E.C. IN SOME WAYS. BUT AS FOR THE MARKET, WE CAN TELL YOU MR. COHEN IS GOING TO TELL HIS INTERVIEWER HE IS NET NEUTRAL ON THE U.S. STOCK MARKET. ESSENTIALLY MEANING THAT SAC IS RUNNING A HEDGE BOOK NOT LONG OR SHORT IN TERMS OF THEIR EXPOSURE. BUT NET NEUTRAL, CONCERNED ABOUT GROWTH PARTICULARLY AT QE2 AT THE END OF JUNE. IS APPARENTLY GOING TO SAY HE DOES SEE THE SECOND HALF OF THE YEAR HAVING FAIRLY ROBUST DOMESTIC U.S. GROWTH. LIKES PARTICULARLY ENERGY AND WITHIN ENERGY, NATURAL GAS AND THINGS OF THAT NATURE. SO WE CAN GIVE YOU SOME SENSE, AT LEAST IN TERMS OF SAC'S APPROACH TO THE MARKET. OF COURSE, THE FIRM ITSELF UNDER THE MICROSCOPE IN MANY WAYS, THOUGH NO WRONGDOING HAS BEEN LODGED AT IT WHATSOEVER. IN ANY WAY, SHAPE OR FORM. I SHOULD POINT OUT THAT COHEN'S REMARKS ARE OFF THE RECORD. BUT GIVEN THIS DAY AND AGE AND THE FACT THAT EVERY PERSON IN THERE HAS A BLACKBERRY, ONE MIGHT IMAGINE THAT EVERYBODY IS GOING TO BE BLACKBERRYING, TWEETING, E-MAILING AND DOING EVERYTHING ELSE THEY MIGHT DO ABOUT THOSE COMING REMARKS. WE'LL BRING MORE TO YOU AS WE GET IT. KATE KELLY WILL HAVE MORE ON THE WEB, AS WELL. BUT CERTAINLY DID WANT TO UPDATE OUR VIEWERS, GIVEN HE IS A VERY INFLUENTIAL MARKET VOICE WITH A VERY LARGE HEDGE FUND AND A LOT OF MONEY BEHIND HIM. BACK TO YOU.

KUDLOW: DAVID FABER, THANK YOU VERY MUCH.

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD+, CNBC is the recognized world leader in business news providing real-time data, analysis and information to more than 390 million homes worldwide. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m.- 8:00 p.m.) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC.com and CNBC Mobile Web (mobile.cnbc.com) offer real-time stock quotes, charts, analysis and both on-demand and live streaming video.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/