live from the nasdaq market site, this is "fast money." i'm melissa lee. these are the players. breaking newsdesk. we've just got word from the department of justice that are there some indictments coming down concerning the standard financial group. snoo charlie reaffirming reports -- the company coming

out and saying that john mack will step down in 2010. jim gorman, the co-president will assume the ceo role, and john will remain as chairman. this is a big question here. does this change anybody's outlook on morgan stanley? the fact of the matter is, yes, it's towards the top of the best. want the best in breed, but it did miss a lot of opportunities to make money on its desk. >> i think that had mog to do with this decision. the one thing that is clear, though, is that morgan stanley, through their acquisition from the smith barney asset, some citibank, and the strength of their own franchise may be taking a slightly different takt. certainly the appointment of gorman as the new head. this is not new news. i think you kind of move on with this one. i don't think this is affecting the stock. i don't think it affected it today, and i don't think you're going see a substantial change in this strategy, but if anything, this lack of risk taking, i think, for shareholders ultimate will you will be a very good thing, because it's a great business model. >> only problem with that is that the wealth management franchise, which is what they're focussing on if we're to take

his appointment, is a really challenging space because you do have companies like schwab and independents really challenging that franchise. that's an area where you are mayben the same level of margin. >> if you look at it, why did they have gorman already as co-president. he was appointed by who? john mack. they've been moving in this direction since january. you could see this coming at many point down the line. absolutely when you look at john mack, he also had his contract going to expire next year. there was a lot of things going, and this is not a new risk taker. this guy is not coming in because of the fact that he stumbled on the risk taking. he is fwg into this position because of the fact of the direction of the smith barney. >> to echo what deke said as well, the situation on the wells management side, you can't really put some waub on an equal playing field with morgan stanley. i know you're not doing that, but i'm saying they're going after a different set of customers here. they're going after a much higher -- >> merrill lynch sort of a deal. >> exactly. that bank merrill deal is going

to be paying huge dividends in 2010 and 2011. sfla that would be one of my favorite long-term bets right now, and i do own it in full disclosure. >> we should know that that's our own mary thompson that's expecting an interview, an exclusive interview wls john. we'll bring you those comments as soon as she does. in the meantime, let's talk about the markets. 11 month high. five for five. it was a slow creep higher, and that was an interesting move in today's mafshgt. i had one point that's virtually unchanged. the s&p 500 is up one full percentage point. >> in terms of auction activity it was heavy today. 16 million contracts. that's a good sign for a change. we had much more on the trading side, and i think if you look at where we were september of last year, september 10th wresh we were at 11,400. all those headlines that keep coming up when people say, oh, but take a look it's the highest

we've pen in missouri months. they lee it off for good reason because we're still over $2,000 points from where we were. >> this is courtesy of the -- you flag thd one. this is very interesting. this sort of gets at your point that, you know, 11 months -- how about that -- >> when you look at that 12 months, there's this huge gap in will. there's next to no upside resistance points. >> that's good news. >> where we are here and 11,100 in the s&p, and what they pointed out with the chart was you have no upside resistance points, and it doesn't mean you have to go there, but it means the -- >> there's a lot of air on the s&ps, and i think it's nothing else people are looking now at 1060, this is the 2004 load. those are the ones to follow, and, again, the brothers will talk all day and night about it. >> volatile one month volatility at one-year lows. that's to be excited about.

that's where pete has been saying this all week. look, look some doux protect. a lot of guys have put expensive puts at 30, 35, and 40%. they're relukt yabt toe do it now because a lot of that stuff wentworthle wentworthless. they say i've waumpd them dwid willing on the scene. >> the market runs up in the come weeks, unless it goes to 1,100 on the s&p, that's where a lot of the investment houses have put their yearend target. the do you start to get reallocation. do people knock those -- by the way, john, good for the research. but i think that issue, come mid-october, of, okay we have reached our target? what do we do now? keep looking silly, upping our target or predict a pullback. >> and another issue that everyone's been wondering, including ourselves, is who is going to be leadership? still not the financials.

goldman sachs, they're not conary in the gold mine. they're hitting 52-week highs and looking at the financials and yet you see the xlf, where it's been. jumped to 12 to 14. hanging around 14 1/2. that's right. hanging there ever since. and look to the technology, the space of smh, that's basically flat as well. where are we getting the big push right now? those industrial names, and that's what's pushing us. look at 3m, what is happening with most of the names in that industry. the engineering name, seaman, power generation that big industrial building, folk, that's pushing us to those new levels. >> transport, one more time on the transportation index, i would argue again that is taking everybody. that is supposed to be your leading indicator. nobody thinks that the sabes norfolk southern or a burlington. or the airlines. or something to get about excited now but these guys are giving you reads. >> i will say this, those rails i'm very impressed. absolutely been running

recently. we talk about the coals, we talk about the steels all of the time. the rails are obviously what are going to have to to ship these around the countries. the rails are areas where they seem to have a big struggle. seem to fail. norfolk southern, it's right about there. burlington. you might see some pullbacks. >> csx, ceo coming out of lonnon today out of a ubs conference not seeing any upturn in terms of freight volumes compared to last year or a month erler. is that concerning? >> said exactly the opposite. >> that's true. those industrials and metals can run based on global growth and the upturn in global and industrial activity without the u.s. being particularly interesting here so i don't think that you need to look at the rails or you need to look at transports domestically. they're a good stock market read in order to explain the kind of strength that you're seeing and the reason that you're getting that market leadership is you have the global industrials leading it. >> the next trade and talk about

>> the one-word answer is yes. the sector is going to do very well into the fourth quarter, but here at the end of the third quarter, they've put up such impressive numbers. even if you look at the intels. like pete would say, the 800 pound gorilla. you look at intel. it has continued to do well off the lows, but they're all kind of stalling out here, at least approximate my mind, and that's why i'm not excited about buying them after the events have happened, after these earnings and after guidance. i think you wait until the end of this quarter plays out. you only only have to wait two, tree weeks. >> a lot of people have been talking about this for the entire summer as being a leading indicator of an economic recovery, and, you know, i still love a lot of these specialty names. i talked about braurd comthat are key to mobile communications, but when you look at the stock that's in 52 week highs and if you are not in

these right now, i don't think right now is necessary where you will want to jump into this wrash the good news is we got it from texas instruments. i think that's where where jack is going with it. guys have said the chips and smart phones and the guys that have the exposure, that's where the growth is for these guides. i continue to like nokia. it has come back. it's going to be equal resides for you. >>. >> it's been a choppy ride, but it's also up from -- >> can you buy 12? >> i think if you follow the stuff and saw overreactions on their numbers, you could have made money here. i have not always been, but i have been for the few weeks. >> if are you looking for one more bright spot out of texas instruments why maybe they're not giving you the opportunity at the pool. with spending high esh, the one to one book to bill ratio. you have that right now. seena naux about high aring, so they're no longer talking about

firlg. that means you're where we are in the sickle right now, and it's stashgt to trek back up into the airplane. >> is it friday? >> i wasn't backfiring you. i was asking about nokia. >> calling me out. >> it is very, very appropriate. >> they're losing market share. a lot of he things are pressuring nokia right now, and you see other mamz where it seems to be nothing but positive. nokia is doing things right. it's doing the acquisition, but behind the eight wall right now, they seem to be late to the party. they're like -- swloo they're always -- >> i'm going to point out that motorola was on cnbc a half hour ago and pointed out that the growth of the smart phone market is the exciting part of what they're looking at too. yet another player coming in. is that bad news for noika?

had. >> no. there's a leader in this higher voluntarily business. why are you kicking the nokia around? yes, there is a bigger pot that they have a smaller piece of, but they have a bigger overall slice of that. >> in fact -- >> i got to heavy 73, and that's the problem with noek wra i can't where sfloosh people are starting to move towards the -- research and motion, the blackberry, everybody has that. >> the nokia, other than the ones they give away with the plans, that's the problem. they have to fix themselves, and they are in the model of doing it. >> let's take a quick check of the company coming out with aernkz. r.r., the street estimates. we are seeing it tick lower for shares of nsm. we will speak to their psychoin an exclusive cnbc interview. do stay tuned for that. shares of yahoo stock closing up more than 4% after

yegt upgraded. here is what harold elizabeth smart had to say about the recent morse deal earlier today. >> frankly, add revenue and take costs off our p & l, and we'll be a stronger business. we can focus that on where we are adding value. >> he actually also you said in that same interview basically that she would have done the deal, the full deal, but -- >> $24 billion? >> was it something along the line -- that was a remarkly candid response, and i think it certainly tells you the style of this woman who is not afraid to take this company in a new direction. i think that's what people are excited about, because these called no pirchlgz here. >> that's what happens when you get adult supervision at a -- carol barts is moving them in the right direction. she said do you think i'm stupid just like tim echos, they is not

stupid. thee e she's doing what yeah new is best at, which is search for news. not search. they're the number one news site for fails or the number one news site for business and pns. that's what here trying to grow hoer. not the overall search. >> it's kind of ab interesting day. i know we're going to talk about this later when you are talking about yahoo or ebay. you have the old 1990s. with aol it's become the best media company with the most journalists regular tiff to the elgz e eggs old measureors. this is where both advertising and aye balls are going to go. not the amazons are the ones that will benefit as you get more and more merger away from old retail and old media on to the news pace. >> if i could see your names. you talk about data and -- you talk about 97% of what they're doing is entertainment.

3% search. so they are moving in the right direction. she's targeting how they can improve that, and by improving that you should see this is a state nant company now. these guys are starting to move. >> is it that open the door for a yahoo microsoft by microsoft? doesn't that essentially say i would have done the deal. maybe if they came back. >> i don't know -- everything they wanted tore essentially the -- even though you're right. >> yahoo still needs to do a deal. i'm not sure what is left if they have this kind of exclusiveivity with microsoft. >> i'm want sure they have to do the deal, want to do the deal. >> let's go to the next thing here. ag names getting crushed. moncanto. >> i know you have been watching like, potash, and -- >> this is a different name in the space because most of those names we talk about are really the fertilizer.

i think this presents an interesting opportunity to look for stocks that actually have a great earnings potential and you have that up side potential whaf knee got in your biotrek field for them. that's all the rest of the bioag space, and that's what makes them very veshgs interesting still, and when they give up $3, $4 hold back, that's when you have to look at somebody. >> and see the difference between mosaic and moncamto. the bottom line, this is a company that makes herbicides. that's 28% of the revenue base. look what's going on in this. aggrium will go hard after cs. arguably you could say that -- we talked about that. >> potash could be in play, but you've got the largest fertilizer pruters in the world. yield needs to go back up, and there was a lot of coming in the space. >> on the montana -- first of all, the -- we knew during the surl this was just the official

pooh flushing out. this is not a name that's run much. it's low for the past 52 beex. it's really not participated in much in the run up. it's a much more stable name, and if you believe in the wore that's going to need more food because as -- >> i think it's easy to be really bullish on this name long-term. >> let's talk about the boem trade. of course, last night the president addressing congress and the nation backing the public health care option. stressing the immediate tore economic reform and coverage for all. >> under my plan individuals will be required to carry basic health insurance just as most states require you to carry auto insurance. >> businesses will be required to either offer their workers

health care or chip in to help cover the cost of their workers. >> you came on the show last week. some sort of health care reform will get done. he is leaving the public option on the table. the markets need to be interpreting this as something we'll get done, but it will take a very, very long time. therefore, maybe it won't be as damaging to the health care stuff. is that your view, or is it too early to draw that sort of conclusion? snoo i think that's right. president obama to come a big step towards the center in his speech last night. the market is increasing the likelihood that we get ready for a bipart sfwlan reform. we believe it will be better. i think the market reacted to that positively today. >> you wish you had come on recommending those stocks? any values there? >> i they we'll see more follow-up, and president obama stick by what he campaign d on regard being the support for a

government-run health lan. what was critical about his speech yesterday is he braeed not have a plan. he is not the center of hrs proposal. we think the flexibility on that issue is also a positive for the stocks. >> i would commend the president if i could to say that -- >> i'm sure he is watching. >> by moving through the les of center here is -- or to the right of fender left that he already was sitting, is a very smart move. he is introducing competition. he is underlining this, and getting the states out of the way. when you can get six or seven or ten or 50 insurance companies competing in the same marketplace, that to me is good news. what, does that mean to competent tiff aspects. the bagels. deregulating this industry. what does that mean. sfroo margins have to come down. >> exactly. i think what we're going to see -- this is our investment tleem for how to play reform genly. >> you got consume health care. we're going on have to sell to

cut elsewhere so margins will come down. mchutchins is one. they're in distribution and the information technology business. margins won't go down. they may go up with the higher value. we like it better than energies. we mentioned medicineco. another example of a company that will benefit from higher volumes. manage care, though, it's a mixed bag. i'll have more customers buying insurance, but the profit marge is will go down. that said, the stocks areunder valued, and we continue to recommend the ut ma and -- >> good to see you. >> thank you. >> hope to see you soon. that was the word on the street. you have your fall forecast for the casino names. is it time to double down or just get up? a brother versus brother showdown over theirfied play. linebacker versus linebacker. brother versus blow.

ponytail versus ponytail. john and pete lock horns on this popular sauce. and whapt in vas yag. >> wait. nothing. a top rais -- if think any -- plus, one year later a trading lesson from leman tim will never forget.

welcome back. we're life at the nasdaq market site. the dollar closing only mashlg naturally lower. the contract today, could we be seeing a bottoming out in the greenback? if so, what does it mean for stocks? let's go to the pit. we have the big sir waiting around for us wrshgs rick san telly. i have a feeling you're going to say we haven't seen the bottom? >> that's a lucky guess, and i'll tell you what, after i watched elizabeth warren ask attorney general any geithner at least three times, three times, well, how many toxic as rets on the books? remember, one-year anniversary. really the third year of the entire crisis which started in mid 2006. he still didn't have an answer.

does that sound like a real denominated rally many the making when they can't even get an answer to that question? >> rick, in the short-term, what do you make from today's treasury auction? the 30-year deal was a great week for the u.s. treasury to get people back into dollar assets. i realize there may be more technical and short-term, and obviously dedicated players in that market. what's your call? >> well, i think that you are employing to continue to see interest rates probably not reach critical mass dealing with supply and deficit issues. i think it's still more of a safety, a hedge. i think some of these banks certainly aren't lending anybody i know. they're probably in there buying as well. wouldn't you think? i don't think any of this is good for the dollar. i think it's a gradual trajectory lower, and after a while this stuff really starts to add up just like those billions in washington. >> rick, everybody thinks what the treasury secretary says is fundamentally the point. >> you'll need something big to change the direction of the dollar. no. i think it's those types of

answers that have a come lavsh effect of not giving the reserve currency anything to rally over. you are right. that's a giant fund mental issue. if there was a better answer to that, then i think we would be talking about a dollar that might have a chance to rebound from that fundamental. technicals aside, the technicals don't look good. mroo rick, real quick. john here. if you looked over seas on the other side of the pond and you see the depp that is these guys have as well and that they are pledged based on the g20 meeting to continue to fund the bounce that we're seeing in the markets. do you see perhaps the focus being more on the yen and less on the euro because verz the euro, we could see a little bounce out of the dollar in. >> you know, i would think that if i had to pick a currency that probably isn't going to see a lot more appreciation against the dollar, it might be the euro, but, heck, it doesn't mean you can't see 153, 152. i think they're going to challenge 150.

think the dollar-yen can go down to the mid 198s. this is a tough one, dr. j. anything goes. it's been a broad weakness against almost every currency the last 72 hours. >> right. rick. sfloog he says good-bye. really short. that's where this is going. those other currencies are also not in good check xh economic shape. people are looking at the balance sheets for countries mou. >> thanks so much for your time. big sir coming at us from chicago. you should know we mentioned the treasury secretary tonight in an exclusive cnbc town hall eating. that is 7:00 p.m. tonight only on nbc with our friends erin burnett and steve liesman. time now for brother versus blow when -- it kicks off later tonight. what are your best fatigue skin plays? here's the tale of the tape. john 6'3", weighing in at 220.

also, 6'3", and -- mroo is that embellish it is. >> sound a little heavy. >> yon is a former chicago bears stand. john is bullish on beer, and pete is positive on pop. john, you're our guest here from and i -- >> first of all, moderate beer consumption is good for your bones. that's why i drink beer. i think that's why most of us -- >> with will you tape them out from. >> he got it from the interwear. sfoo i photo shopped it. here's the deal. miller and -- 80% of the beer market we're kicking off tonight with the steelers playing the titans tonight. i love this market even with consumption down, prices are up. that's why it's nice to be in a monopoly, folks. so i like the beer place outperform pete soft drink place. >> i like him a lot, monopoly, that beer has right now, and i also like burger king. the stock is doing nothing

there. pepsi, they fwlt those creepy commercials where -- i know tim and i both have nightmares about that. i swear to you. >> wipe that smile off your face. >>. >> come on. >> if you take a look at pepsi right now, what happens every tall? the foul escalades for the underside. i'm telling you, it's because people are consuming. the consumption there is great. you look at that stock chart. each pullback you do an opportunity. right now the pe levels are around 15% or 16%. they're even cheaper going forward. there's a dif dent deal as well. it's a defensive play in this market. >> tammy, you have the pleasure of calling this mash. >> i got to go in fear. first time. >> no brainer, really. you know, there you go. come on. >> should i do a beer plug during a -- >> i think it's going to be me

drinking my bear. the bottom line is the beindustry continues to consolidate. when are you about to continue to strengthen their position. i like them, and, sat, miller is sniffing around many turkey because they want to add to their portfolio because there is becoming newer and newer mrardz. >> do you know how many we're starting? going after cadbury. the space everywhere, and the knack area is starting to come out. >> just like the summer driving season, gasoline prices went up. >> we should moat that this comes from the arthritis research campaign. i have quartered out of london. this is not reason, but i don't know. i don't know are a.

mroo i agree. they will always win. >> all right. let's move on. time to analyze this. "new york times" reporting state gambling rev muse are suffering despite recent investments. las vegas stands, you have the sell after 175% of run-up this year alone. does this mean gambling stocks have yet to see a bottom? joining us the top ranked analyst joe graph. always nice to speak with you. >> you as well. sfwoo what is happening in las vegas these days? are there increases in terms of travellers there, and are hotels able to not disount rooms to get them in. >> this -- i think the discount rate is police lessening, particularly into the fall period. we have cob venks business moving back towards the las vegas. its still down a lot, but at the rate of rate this town is declining, and it's comparisons get bigger easy.

it's really to spend her visitor, and the rate thing is the one thing to watch. a lot of the casino operators go straight to the bomb line, on to the profit line wrshgs. >> is vacation yas still a bad word when it comes to corporate e.s and losing conference. i think a lot of the washington red rick and put that stigma attached to. remarkable lays vase. it's one of the most expensive places to host it, and that's its appeal right now, and they're starting tirgts some of them back at the little bit -- they're having it in a boonedoggle kind of market. >> what about using highend and mckoy as opposed to davis as the differentiator about names ush know and names you shouldn't. >> well, i mean, they somewhat overlap. particularly with las vegas fans and mgm mirage. one thing right now is the cow is resuming its growth trajectory, and the first half

of last year you had 40% gain re new xwroet. august you had 17% growth for the market. i think september and october will be even stronger, and i think when you have a kel gone smart. >> things feel much, much better on mckoy right now. >> i head your noticed today, and i think you are spot on is the reeblgal players like void, because i think that things like aquaduct getting slots is a big hurt on what's going down in atlantic industry. i think that the focus more on vacation yas, more for that because, like you say, it's one of the cheaper places to have conventions and with it some of the sigma wearing offices. i think jikd has more upside than the smaller operators. i agree with your note mr. brsh. >> you're reading the basket. what that does for equity

investors and i think the public perception is create very low expectations for these companies to deliver better than expected profits. down significantly year over year, they can be -- trickily for f bl f measure age. yield about $15 million in incremental annual, and that adds about dlarsz 1.30. >> i think they'll draw significantly away from that draw at atlantic city. i'm not at all. i do own mgm. >> mckoy has more margins. it's exactly what joseph said. they're cutting some of the tax

rates on the casino operators there. love melco international. talked about it. this is family host sun. they sprout another blossom in the gaming world. >> they have a lot of them. >> do you use that because your daughter's name is candy? >> i was led there in my own mind. >> did you see the shuffle master. the stock near the 52-week highs. there are names really working on the outside of this. >> let's trade the globe. >> we've been talking a lot about this. certainly that is the reason why we've seen a huge run-up. can we believe all the data that comes out of the country? according to joseph, china's stats are based on recorded production which river from u.s. stats that are based on exports and spending figures by consumer

and government. for example, courtesy of the aei, take a look at this. retail sales up 15% year over year in the first half of 2009. they also make a point, interesting, that along with the washing machines and the stimulus plan -- a lot of the consumer don't necessarily have the residuals to run these machines. they were sent back. >> these are great points. this is why the chinese recovery is a domestic roer. it's not an export-driven one, and it's about producing. with all the criticism of the chinese data, there are a number of people who do a good job analyzing it, including hsbc. these guys are doing the same service the government does every month on our pmi and retail spending, and they're coming out in line. these guys are doing their own diligence. i just gave it all data out of

all government that's dubious. >> yes. >> and i would say that in china's case, just make sure you know what you are looking for. watch the lending. that comes out over the next couple of days. the bank lending, which was up about five times in the first quarter, 1.5 trillion yen. that's part of what was so exciting. watch the real estate and the property margin. >> you have to be careful about what's going on in the chinese real estate market. i xwrae. you do not pay attention to the china statistics as a reason to invest in china, period. you may attention to the demand that you know is going on, whether it's the price of copper or auto auto sales. gm did sell those cars in chooirn, even though they didn't sell them in the u.s. if you are looking at government statistics to follow your investments, you are going to get burned. >> okay. >> dlirg the goods. >> yeah. >> coming up next can american

airlines momentum continue? or is it done? that's coming up next.

sdmrirchlgs welcome back to fast money. that's cnbc town hall with secretary tim geithner wrapping up. we have exclusive sound from that event for you right now. here's what the secretary had to say. >> today because of the aks we've taken, it's just the beginning. we've had more than $80 billion come back into the treasury. that money goes to reduce how much we have to borrow, and it means that we have more resources available to do the necessary things our country needs. >> rrt. saw steve liesman there. erin burnett is also hosting that special town hall event. that's tonight 7:00 p.m. do not miss that. he is fielding questions from viewers across the country. time now for today's edition of tops and drops. png up 54%. >> they, too, back to the china story, selling globally, and i think they'll have challenges as raw inputs increase and margins get pressure.

>> going to drop for -- the maker of truck engines and school buses. happy fst day back. exciting day for you. >> uaua up. i love school, by the way. >> i bet you do. >> that didn't come out very nicely, tim. >> you led me right to it. >> dr. jay, you aua? >> they got a big thumbs up and said they received the recovery play influencing the big carriers that charge the big bucks a lot of upside. amr was also up on this. i like all of them, but i wouldn't be a buyer on the upgrade. >> drop hereby for tavern on the green. this is a landmark restaurant m heart of new york central park. it filed for bankruptcy last night after a 75-year run at the "new york times" report. the company blames the filing on the financial crisis. spoo sure. yeah. >> and the food. >> overpriced food.

mroo tour bus that is go up outside. >> you don't like the lights on the trees, huh? >>. >> i love the lights on the tree. you see, they're billed. >> which was the source of much controversy earlier when i said manitoc, but manitowoc. >> everybody, including myself, called them a crane company. they're food service. 56% of the revenue coming from the food southwest side. that stock is getting a nice big lift. >> ice makers. >> yeah. >> it is maniotowoc. >> right. exactly. all right. top here for angelo gold. >> a bounce back for the gold. it was much related to gold. these guys are moving heavy into their areas. and we've got a pop here for derek jeter. yankee shortstop ties the all-time career hit mark last night, playing at home against tavrpa bay. a record number previously

reached more than 70 years ago by the legendary lou gehrig. >> employ get them. >> good for you, jeter. >> coming up next, did the leman collapse change the way you think about training?

>> everything you had err been told about the safety of your assets was being held into question. stoo whatever happens to leman, whether be see a deal, the equity shareholders will suffer. i was in the process of believe a new hedge fund. the lemman bankruptcy locked up and froze assets of hedge funds everywhere. it was very difficult for us to get commitments from institutions who were ready to support us. we got our book as tight and as liquid as possible, which means we got out of smaller positions in companies that were under $1 billion in market where our position might have been larger than something we could get out of in more than two trading days. look at weblgz.

look at job losses. look at the continuing claims. they're going to get worse. i do think lehman brothers reminded people that these things can happen. if you took your statistics classes, you know that the wide end of the bell curve, there still is that 100th of 1% that can happen, and this was certainly that moment. >> i'm someone that spent 15 years in emerging markets. if you traded through russia 1998 or china 1997, you have seen breakdowns that provided tremendous opportunities as a trader as well. >> is that what you did, tim, is identify the opportunities in that moment, because a lot of people in those days after lehman brothers were focused on the outliar, that 1% that could happen. >> when you saw through some of the crisises, you have to know the liquidity of your book, and you have to be very careful about changing liquidity. you can't sell something you can't trade.

especially in less liquid markets, you have to be careful about that because your portfolio will behave differently, and know your counter parties. there was a lot of money that hedge funds had pledged lehman through prime brokerage which is another way of saying their securities relent xshgs they didn't know it. you need to figure this out ahead of time. >> were there instruments you got out of because there wasn't another talk about the trade? >> absolutely. we tried to get as liquid as possible. get your tight, sell everything you can that you don't think will sell in a stock wags. >> the bell today beating all those estimates. we will talk to the ceo right after this break. you are watching fast money on cnbc, first in business world wooi. wide.

. let's go straight to the after hours action. we were watching national semi shares. the company reporting earnings that beat estimates. let's talk to the ceo himself joining us from california. brian, a pleasure to speak with you. >> thank you. >> what are you seeing in the weeks following the end of the quarter in terms of sales improveme improvements? >> we continue to see momentum,

and so the strength has stayed there. it wasn't a quarter end rush, and we're feeling pretty good about it. we just guided 3% to 8% in the quarter and that's assuming we get the same level of turns as we did last quarter. >> how confident are you that we've seen the worst in your sector? >> i -- i can only pray that we've seen the worst. what encourages us is that where we're seeing strength this quarter is in the distribution broad market, which is industrial and it's diversified across a wide range of products. so that's a real good indicator, let me knock on wood here a second. but we're going to leave the cork in the bottle but we may chill it. >> in terms of the markets where you want to see the upturn in terms of the industrial segment, is that where you have the highest margin of products? >> our margins are good any way.

we talked about 61.1% and growth in the quarter from 62% to 63%. and after we complete some of the plant closures, we can add another four points. so overall the business is pretty good. but in the industrial sector and through distribution is where our highest margins are. >> great to have you with us. thanks for joining us. guys, quickly here on the desk. >> the cork still being in the bottle, conservative part, but the bottle is about to go into the ice. so in other words, he's looking to celebrate. >> all right. we got the final trade coming up next.

fresh off the phone, mary? >> brief conversation with him, melissa. when mr. gorman was asked of his priorities, his priorities are making the smith barney retail brokerage business of morgan stanley number one, and making sure that this is done right. also, of course, he wants to make sure that the sales and trading business is on firm footing. there have been problems there for morgan stanley. he noted that this is a very stable change and that mr. mack will continue to work closely with him and continue to play a leadership role at smith barney. when asked one of the criticisms

of mr. gorman is he's never run an investment bank and he says you're right, but in this day and age it's difficult to find a leader that's done all of this. that being said, he spends a lot of his time speaking with institutional clients at this point. also, john mack said the highlight -- i'll send it back to you. more coming up at the 8:00 show. >> that's it for us here at "fast money." thanks for watching. see you back here tomorrow night at 5:00 p.m. eastern for more "fast money" on cnbc.