which still makes for a pretty enchanted tale. ♪ la la la [ man ] whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter. thanks to the team. "power lunch" begins now. halftime is over. "power lunch" and the second half of the trading day start right now. indeed it does. breaking news, it was the ipo that the world was waiting for. and it has been dramatic right from the very start. there it is. facebook stock, fb, it started trading late because of a technical glitch now being investigated. as you can see it's up about 8.3%. it exploded out of the gate but then like a bottle rocket it started to fizzle and then climb again. who's getting in? who's staying away? did they price it right? what about the other ipos in the pipeline? we have it covered along with my partner for the day, a very busy

simon hobbs at the nyse. hi, simon. >> good afternoon to you, sue. it started 90 minutes ago thereabouts. 82 million shares traded in just the first 30 seconds from the trading floor to the back room dealing, we've got it all covered. let's go to the heart of the facebook trading action. it is the nasdaq on this occasion. david faber, gary kaminsky and melissa lee still standing there on duty. melis melissa, this has been an extraordinary debut. >> you know, i think we might be having problems with her ifb. gary, let me go to you, if i could. we're seeing the words fizzle, words underperform being reported in stories about facebook. how much of that has to do with the trading glitches that started at the moment? david faber recording earlier that traders were backing away a little bit when they couldn't get this thing open. >> i should let you know that the trading glitch in terms of to this minute people knowing what they do have, what don't have in terms of position, they're not over.

they're still existing. i just got an e-mail two minutes ago. people still do not know if they participated in this name what they're long. make that point right now. sue, to me the biggest story about facebook today and i said it right at the top of the 11:00 a.m. hour is very simple. the allocations people got were historic. retail got what they wanted in most cases. and institutions that put in for shares got exactly what they wanted. to me that's the biggest story of the day. >> i'm glad, gary, that you separated the different issues we had to face earlier in the day. simon, you know this as well. we were waiting for this thing to open trading at 11:05. it got delayed, communications problems, it finally opened at 11:30. then after that it was whether or not it was going to hold the syndicate and the syndicate stepped in and pumped in a billion dollars and that was allowing the stock today. >> kayla, given the price performance on the street, those saying it was really priced quite right right in the right

range but others saying it was too rich. what's your take? >> i think given the range if the trades are starting to go through, we do know some aren't being processed and aren't being confirmed because i'm getting tweets from people who say that i put on a trade at 9:30 and still haven't heard back frchlt what we've seen right now it does look like it's exactly in line with expectations from underwriters. they wanted between 5% and 10%. as some of these trades get confirmed and then processed, we'll have to wait and see how that trades. i want to talk about the $38 support level. kate will comment about this as well. we've been mentioning this green shoe or this over allotment. this is basically an additional option of 63 million shares, but it's sort of in the reserve of morgan stanley at this point because they're what they call the stabilization agent. so when the stock hits that level, mind you they can't buy north of the issue price. so $38 is where that kicks in. they actually can buy more shares to so-call stabilize the stock here, which is what we understand they could have done.

that trade could have been done from the syndicate desk. if it did happen at the syndicate desk, that would chip away from what we were expecting to be an $18.4 billion deal. that would make it the second biggest u.s. ipo. it would chip away from the over allotment we were expecting to come to market in the next 30 days. >> kate. >> well, let me weigh-in on this here. my reporting suggests that we don't know for a fact whether morgan stanley stabilized the stock or not. or if they did do it, how. they had several options they could have employed in terms of stabilizing. and we won't know, perhaps for a while. and they're not talking right now. i can speculate a little bit and say i'm told by sources familiar with the matter that they are not exercising the green shoe today. that's something that may happen in future days. in terms of trying to keep the $38 as the floor, there are a number of things underwriters could do in a case like that if they want to stabilize. one thing they could do is make a big at a slightly smaller

price but in huge size -- it would drive up excitement. >> isn't it amazing, gary, m melis melissa, everybody, we're talking about the fact having to support and stabilize the stock when everybody out of the gate thought it was going to go much higher? >> sue, simon was sitting next to me a few hours ago. simon, you recall when i got that first indication after the trading started from some people on the syndicate desk of what they thought would happen in the next hour, was i not amazed to look at that e-mail? >> yes. and from that point on, gary, we knew potentially it was in difficulty. i think it's important to take just one step back. this is a huge iconic moment. there's a huge amount of emotion. and, kate, you have reported on the anger that actually has surrounded the visibility that participants had on whether the nasdaq performed or not. in your view, kate, was this irrational? when all is said and done, given all the emotion, is this actually a rational emotion? >> i think it is, simon.

let's be fair here. there's going to be finger pointing. obviously there was a glitch at nasdaq. whether they could have been prepared for this, who's to say. there was a glitch. there's frustration about that. no doubt about it. i think many of us were expecting a huge price pop today. but to be realistic, this is a massive deal. it's a massive market cap company. it's going to take a while for the market to digest. and, you know, even competitors at morgan stanley that i've talked to today say, you know, they did a pretty good job. it's really hard to see how a stock would go up by 20%, 30% in this kind of volume on this kind of day. they've done an admirable job. the thing that surprises me, guys, is the retail allocation which i now know to be north of 20%, which is historic high. retail investors i hate to say it are the distribution target of last resort. mostly these companies and their underwriters like to give shares to institutions. so that tells me that perhaps in accordance with what gary's hearing from institutions,

perhaps demand was less than we thought. >> kate, i must tell you, when i saw that one institution got a million share allocation on this transaction, knowing the institution and knowing the size of the assets they're running, i was shocked. i was shocked. >> melissa, you know the fear and the greed in this market. you're fully plugged into it. what do you think it means from here? >> well, from the retail standpoint, i mean, you have to think back to the last time the retail investor got such a big slice of an ipo, that was gm. that didn't turn out so badly. from a retail standpoint, the disenchantment being felt by the retail investor, you got to wonder how big that is at this point. that they got a slice of the ipo, they got the slice that they want and it just happened to be that it was the highest profile flatline that we have seen come to market so far. >> here's one interesting point i want to make for the guys that you deal with in the 5:00 hour. i mean, one guy just told me he thinks this is going to become a huge day trading story.

that trading the momentum around the stock is going to be very easy to do and become incredibly popular trade. >> especially if you believe that the underwriters will come in to support $38, you know that's the floor in the stock. there's no downside pressure on the stock. >> exactly. >> there's no short sign, there are no options. that's it. you got a range you're playing right now. >> no options just for a couple days. >> for now. >> but the option is what? tuesday? >> may 28th or 29th. >> thanks, everybody. great work. appreciate it. i know you're going to be seeing everybody throughout the rest of the day here on cnbc. our next guest first invested in facebook back in 2006 when it was just a college site. and a lot of people told him he was crazy to do it. but david ranked number four on the forbes mightest list with greylock partners held 1.5 billion facebook shares at the ipo. we're pleased to have david on "power lunch." david, great to see you. welcome. >> thank you so much for having me. >> your reaction to the stock's

opening right now? how do you feel about it? the fact now it's up 8%? but it was kind of a dicey open. >> you know, we really try to stay focused on building great companies. great thing about pandora and linkedin and good companies don't worry about what the stock market says at any given moment and go back to building great value for their customers and users. and the rest of that works out over time. so at any given point in time what the stock market says i think is really, you know, for the pun dants and people investing in the market to decide. >> i'm going to take that as you're pleased with what's been happening so far today. is that a correct interpretation? >> well, look, when we invested in facebook in 2006 as you mentioned it had about 7 million users, it was college-only, closed, not available to anyone else and really had almost no revenue. fast forward now to where

there's over 900 million users, the average user uses it for 20 minutes, you know, a day. and it's effectively being seen by 40% of the internet. we think that's a pretty exciting company. this is a great milestone for the company. i think it's a great milestone for silicon valley. hopefully a great milestone for the country. it is about how do they build to the future because that's what matters. >> let me pick up on that thought. we were talking about it in the newsroom when mr. zuckerberg rang the opening bell, this seems to be a story that only could happen in america. it's an amazing event. >> it is a great journey. i think it speaks to the level of innovation, the level of opportunity that we can provide. and how technology can really unlock that. when we put our creative talents and allow youth to do the wonderful things they can do in a space like technology, great things happen. i think and believe we'll see the same things in biotechs and je gnomics. >> a lot of people gave you

pushback when you talked about investing in facebook. they told you you were crazy to do it. that that wasn't going to be a company that would take off. you were right after passing up another ipo. what are you watching right now? >> you know, interesting enough we really think there's a lot of things going on in mobile at greylock and if you look at what we've seen over time technologies started on the consumer side and scaled by massive consumer companies are hardened and used and applied to the enterprise. whether it was the first phase, yahoo! and amazon and excite were doing then being applied to take technologies like lenknox and bring it to the enterprise with companies like red hock. facebook and google pushing the scale at such an extreme length, they have to build technologies applicable to the enterprise. we have companies like workday

and tidemark that are taking technologies that have been used and scaled at the consumer side and applying them to the enterprise side. we think there's going to be great, great companies built off of that. >> you know, let's bring into the conversation my colleague, julia boorstin, out there in california. julia. >> david, thanks so much for talking to us. you mentioned mobile just a bit earlier. i'm wondering where you see the majority of facebook's growth coming from. there's been a lot of talk about facebook's valuation and that expectation that mobile will be a huge part of its future revenue. what are your expectations for facebook's ability to turn all those mobile users into real profits? >> look, i think there's great opportunities in growth in terms of revenues for facebook across its product lines. if you think about where it was from, you know, revenue perspective when we invested to where it is now at $3 billion in advertising revenue, over thousands of advertisers investing on the site, the adage $100 billion investors all involved with facebook, i think

there's opportunities on the existing mobile platforms as well as opportunities around credits and other products they've launched and are growing. i think mobile clearly is an important part of the future for any internet company. and the companies that will benefit are the ones where people spend their time and where they have their engagement and facebook is one of those. linkedin is one of those. pandora is one of those. we're very excited about the future for all those companies. >> in addition to mobile, where else do you see facebook diversifying? do you think we'll see retail on facebook? will facebook launch an ad network to put ads on other services outside of facebook? >> i think there's all kinds of opportunities for them. i'll let the company describe what exactly they're going to do when they're comfortable with it. i'll just say when you look back when i first got involved in the internet in the early '90s, i see where there wouldn't be advertising and people would never advertise on the internet and that not come true and have it become a big part of the advertising budget. so i've seen people believe you

never put your credit cards or buy anything on the internet and we now see that's not true. i believe where usage goes and where the engagement is and where the attention is around hundreds and millions of consumers, you'll find the opportunities for advertisers to follow. >> david, before we let you go, you were one of the early believers in facebook, tell me how you felt? what was the moment like when that opening bell was rung and facebook became a publicly held company? >> you know, everyone at greylock partners comes from an operating background and worked in start-ups from early stage to hypergrowth and public. i think i probably share the same feelings as my partners which was feeling really great for the team, for mark, for its executive team and for every employee there. it's an amazing journey and a great milestone and we know how hard they work to get there. i love to see the passion and focus afterwards when everyone went back to work. the passion when everybody was doing a hack-a-thon. those are the things that give

me facebook will be great into the future just like it should be. >> david, pleasure to spend time with you. congratulations. appreciate your time. >> thank you. thank you all. congratulations to the facebook employees. >> okay. julia, i know we'll be seeing much more of you on cnbc throughout the day. we're going to take a quick break. as we go to break, the markets have been trending to the downside in the dow jones industrial average by about 12 points. the nasdaq is down 7. the s&p 500 is off about 0.5%. and facebook is up about 7% on the day. back in a moment. [ male announcer ] we began with the rx. ♪ then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx. this is the next chapter for lexus. this is the pursuit of perfection.

welcome back to "power lunch." i'm bertha coombs at the nasdaq with an update on some of the glitches that have been happening this morning with the facebook ipo. about an hour ago nasdaq put out a message saying that there had been some execution issues on reporting back to some of these big institutional traders on what happened with the ipo cross. just a few minutes ago they told them that they are now going to deliver manual report -- what they call a manual report, to participants containing this information shortly to be later followed with the electronic message summary. they'll provide additional information when available. so now they're going to send manual reports, guys, with regard to what happened with the ipo cross. traders are telling me they're now able to see what's happening in the market, but they still don't know what happened with the initial buying. one trader says that makes you a little hesitant to go in not knowing what you got, initially. >> there's a huge amount of anger surrounding this, bertha.

we will come back to that very shortly. a bad week for the markets overall. one major reason is europe. president obama meeting with france's new leader, francois hollande, ahead of key g-8 meetings this weekend in washington. john harwood has the latest. >> good afternoon, simon. as the president heads into a weekend of diplomacy with the g-8 this evening and nato in chicago over the weekend, we saw the first glimmer of a consequence of the recent backlash in europe against the austerity. we saw that in the french elections. that's why francois hollande was meeting with the president today. the two just came out of the oval office and the president agreed the g-8 talks should focus on a responsible path to fiscal consolidation but also a strong growth agenda. that's critical also to president obama's desire to get the u.s. economy going. and of course there's tremendous political disagreement, germany has shown some flexibility lately to take steps to increase

growth, but there's a long way to go just as there's a long way to go in the united states between republicans and democrats on what to do. and of course the reaction of investors both in europe and the united states is also going to be critical. >> and from that we can may become an olive branch. we have to leave it there for the moment. thank you very much. john harwood there in washington. it's very rare you see the sort of emotion that you see today surrounding what has happened with the facebook ipo and the way in which the nasdaq handled that. bear in mind, we're talking here at the rival nyse. bob has the very latest. i'm also joined here by matt cheslock, who is a trader with virtue. there is palpable nature. >> we put in preorders to buy and sell facebook. we're not getting any con for mags back. we don't know where we stand. if i had an order to sell 100,000 at the open, i don't know if i've sold it or not. you need to get a fill. you need to get a confirmation. they're not getting that right

now. i know bertha was just saying they're going to be sending out manual orders. that still leaves you with some risk here in terms of time risk. that's part of the problem today. another issue i've been constantly pinged on is what happened at zynga. zynga had what was called a single stock circuit breaker fault. normally that would happen and be halted for five minutes. but this was halted for 50 minutes. >> an hour. >> 50 minutes, essentially. and i believe it reopened again just a short while ago. but the bottom line is that's a long time. and there's a lot of questions. we don't quite have answers there. there are obviously some kind of system problems that are going on over there. and i think we need to sort of clear that up. hopefully everyone will get order confirmations before the market closes, hopefully. and we'll clear that up. >> matt, from your point of view, this was a real moment potentially for the retail investor provided they got facebook stock at $38. i think everybody thought they were going to make money. and that is clearly not now the

case marginally, but not at the sort of levels we thought. what does that mean for the market? what does that mean for you? >> absolutely. classic case of sell in may and go away. these people thought they were getting home runs here, big gains. we didn't see it. now we have europe in focus here. we're going into a weekend again. we normally see selling going into friday afternoon. we may see it accelerate if we don't get anything out of europe commission. look, these guys have to be more proactive here for our liking down here. >> so who needs to be more proactive? >> europe. the ecb. >> okay. >> we need more action out of them. we can't have this go on until june 17th. we can't do it. the market has been orderly so far. i don't expect it to continue if we don't get some decisive action. >> the ecb will not listen to people like you. >> absolutely. >> the fed might, but the ecb -- >> angela merkel is very, very isolated right now up there in camp david. must be a lonely angela merkel up there. she's got the europeans basically -- >> talk to me about what's happening here. >> we're seeing terrible market

action. yesterday wusz the culmination of a week and a half of bad trading. traders have been buying on dips for three years now. it's been successful. market drops 3%, 4%, you buy. in the last week and a half no buying as the european market closes, no 3:00 rallies. buyers have been stopping away and finally yesterday the volatility spiked up, the volume spiked up, trading action has been horrendous. >> absolutely. zynga is a classic example. facebook rallied, this sold off, sold off hard. we saw no bounce to it at all. >> so we are down i think 12 of the last 13 sessions, which hasn't happened for years. up next on "power lunch," facebook, is it getting -- is it worth getting in right now? or should you buy rivals like google instead? now there is a question to take you into the weekend. buy facebook or buy google? we'll speak with one top fund manager. think about that. blal

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but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. the highly anticipated facebook ipo now trading up 7.5% at $40.85. up $2.86. and our next guest runs the turner titan fund. turner was able to start buying facebook shares at the ipo outset today. but does he think it has a place in his portfolio longer term? joining us now is chris. welcome to "power lunch." >> thank you for having me. >> let's start first of all with the opening of the stock. and now we have word that the nasdaq is going to have to issue

manual confirmations of trades. there have been trading issues with this stock from the get-go really. does that concern you at all? >> well, it's a little bit disappointing they haven't gotten their act together yet. overall just look past this day we think longer term it's not really a big issue. i mean, you are talking about a very large deal, nearly 500 million shares placed last night. you're going to have the most inefficiency in trading usually right around the ipo and the time of the ipo pricing. so i think that's part of what you're seeing. it's a combination of the size of the deal as well as the issues they've had in getting those confirmations out. >> i know because of compliance issues you can't tell us whether or not you've bought or sold the stock. >> right. >> does the business model of facebook fit in to the turner portfolio as it pertains to growth stocks? >> yes. overall we're very positive on the internet space at large. we do like the growth pros

pengts that facebook has. the company did $3.7 billion in revenue last year. likely see close to $5 billion in revenue this year. very big opportunities ahead of them because their montization that they use per person is quite well. only upside so far. that's the type of thing that would be very interesting to us. we suspect in a couple years time their business model will be more mature and a lot more like the way we see google today as far as its business model. >> indeed. talk to me about google. when it went public, there was a lot of hoopla around it as well. not as facebook, certainly, but look at how that company has managed to grow and succeed. compare the two for us and perhaps what you would rather have in the portfolio now. >> you raise a good point. google was $85 a share in august of '04. market cap of the company was less than $30 billion. within three years the company

had a $216 billion market cap and obviously earnings went parabolic for those three years. now, fast forward the tape and here we are today. it's still well below highs as far as market capitalization and the company's continuing to grow earnings and revenues at a very fast clip. during the last quarter the company grew revenues 26% year over year. so clearly the impact of facebook has not had as dramatic effect on google's business thus far. the two companies are really focused on different avenues. and we do actually like both companies' business models going forward. google, you get more mature company. search is already developed as far as a concept. but google at this point trading very inexpensively for its rate of growth. we like google quite a bit. >> before we let you go, when we look at early reporting on the facebook ipo, we see the words fizzled, disappointing and

pivotal research put a sell rating on the stock, perhaps the first sell rating for the company. unfair? are those characterizations unfair? >> well, again, i would tell you to look at things over a longer period of time. we know that facebook is not running at an optimal business model today. they're very young in their growth rate curve despite the fact they did $3.7 billion in revenue last year, it's still very early innings for monetizing social networking. we think the biggest growth for the company is still to come. so you can make sell calls or hold calls based on the very short-term noise, but i would say longer term this company has a lot of upside and that's not touching the opportunity they would have with either the specialized e-commerce engines we think they can possibly do or a groupon type of competitive select list that they can do down the road. we think there's a lot of upside opportunity to this firm longer term. >> thank you, chris. pleasure to spend time with us. >> you're welcome. thank you for having me.

>> incidentally we mentioned the sell rating pivotal research has placed on the stock. the analyst who made that call will be on "street signs" at 2:00 p.m. eastern time only on cnbc. when we come back, a lot of market action to follow including of course facebook. also the metal markets. gold has been in and out of bear market territory. prices are closing right now. we're going to head down to the nymex as we continue our coverage of facebook. much more on "power lunch." h." . our science teacher helped us build it. ♪ now i'm a geologist at chevron, and i get to help science teachers. it has four servo motors and a wireless microcontroller. over the last three years we've put nearly 100 million dollars into american education. that's thousands of kids learning to love science. ♪ isn't that cool? and that's pretty cool. ♪ i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions.

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welcome back to "power lunch." brian shactman here at the markets desk. we're looking at all things facebook is touching today. i want to look at gsv capital. it's a small cap investment firm. actually went public back in april, down about 16%. they specialize in pre-ipo tech companies. they own 350,000 shares of facebook, 7% of their portfolio. they also have interest in groupon and zynga, which are also down. the stock was down 10% yesterday as well. obviously facebook not shooting to the upside, sue. a little bit of a negative impact on that stock. back to you. >> indeed. there's been some wild swings in trading so far. from the trading floor, back room dealing, we have it all covered for you. let's go back to the heart of the trading action, gary kaminsky and melissa lee at the nasdaq, kate kelly and kayla

tausche also with us. thanks for rejoining us. gary, let me start with you and melissa, if you would weigh-in as well. this was a highly anticipated ipo. people were watching this closely. does the trading action and the lack of a large pop, rightly or wrongly, change do you think the ipo landscape going forward? melissa, what do you think? >> well, i think that the -- i'm sure kate and kayla will speak to this it was perfectly. the offers size was very small and they manufactured a giant pop on the day. and here we have it potentially priced to perfection at this point. that is going to be the spin. as far as the retail investor and the impact on the retail investor who managed to get a slice of shares here, they're probably going to feel a little bit burned. you know, it was a widely hyped, widely anticipated ipo. they were finally let in and this is the one that didn't pop. >> gary, that's going to be the

problem for the retail investor longer term, but also a problem for the broader market. there were a lot of hope ths ipo would bring the retail investor back into the market as a whole. >> sue, let's think about tomorrow morning and the headlines in the newspapers. the headlines are going to be that facebook if it closed up here up 8.8%. retail was able to participate. and that the stock went up. that's what's going to be the message tomorrow. the retail did get to participate in a very, very widely known name. and as a result of that, they made money. remember, it's up 8.8%. the fact that many retail investors thought they were going to buy this, get shares and double their money overnight, shame on them. they shouldn't have thought that. >> gary, i think that's a really reasonable point. and we all talk about the bad or the good old days depending on how you want to look at it with the dotcom boom and the shares that did take off on day one with the companies that didn't have much there. if this is a slow and steady climb up in the stock, that's probably a win for everyone.

i don't know where it's written that every retail investor should get a pre-ipo share and be able to flip it in the first two hours of trading. this is actually the fear of retail investors, i think, is that they are going to flip it, they're not going to be long-term holders and everybody wants a book made up of t row price. wary of individuals. in a way, i don't think the spin is necessarily wrong. i think this is a win. >> do you think so, kayla? >> i do. remember the headline, facebook wants to be a blue chip. the big corner stone investors like to see something predictable like the deal we've seen today. if you ask some of our sources, they expected what we're seeing right now. the problem is you're seeing some of the follow on trades, zynga, gsv, the market clearly expected there to be a giant pop. that's why you're seeing that pullback there. as far as people who are inside the room inside the situation room, this looks pretty good. >> all right. thank you all. appreciate it very much. simon, over to you. >> we've got a lot of other big

moves of course down at the nasdaq. let's get to bertha for the latest on those. >> in terms of the other trade on facebook today, it's the nasdaq own shares of the nasdaq exchange. they started off higher on the day up just about 1.7%. but take a look at the intraday. as we've had reports about glitches in terms of those big institutional traders who had that ipo cross at the beginning had still not gotten a confirmation on the execution of those trades because of a technical glitch, which the nasdaq is investigating. they now say they're going to deliver a manual report on those to those big institutions that started at the beginning of the day. as you can see some of the others that were trading today are looking -- taking a look at zynga. that is also a bit of the collateral damage today. the stock has resumed trading. it's been halted much of the morning. it was down 13% when it was halted around 11:37. but, again, all of this is about

the huge volume that we are seeing today. here on the opening day just at the midday we've already seen 320 million shares of facebook trading, simon. so this is looking to be perhaps a record day. and with these glitches, some people may have held back. we'll see as things get more resolved this afternoon what we're going to see in terms of trading volume. >> already over half of facebook shares actually trading. thank you for that, bertha. there's one asset class that's positive today. it's gold. metal prices about to close. let's go to sharon epperson for the latest. sharon. >> simon, you want to talk about big moves in a market. of course we saw the biggest one-day gain in gold in the previous session. today another move higher, about $16 just below the $1600 level. gold has moved over $70 in three days. and it's been a big turnaround because gold has also decoupled from some of the riskier assets that it had been trading with as we saw the broader market selloff over the recent weeks.

keep in mind a lot has to do with the currency action we've seen. the fact that today the dollar is actually breaking its longest winning streak we've seen in some time and the gold and silver ratio also points to the relative strength of this precious metal. back to you. >> thank you very much, sharon. still a huge amount of emotion on a big day for the markets with facebook and the fallout from that. back to bob. >> i want to bring up what bertha was talking about about zynga. traders are puzzled about why zynga has been halted for so long. >> somebody was just screaming at you. >> a trader -- screaming at me saying please explain to me what is going on and why we're getting these weird glitches. there's a single stock circuit breaker, should be halted for five minutes and reopened. it was halted once for 50 minutes. it's been halted again. still, as you can see, that looks like it's started trading again. >> it is trading again. >> little bit of confusion about

what's going on. it's been a bad week. and i want to show you just what's happened with the financials for example. we've had doe ha digit declines in most of the big names. i know this has fallen by the wayside in the wake of what's going on with facebook, but look at bank of america, citi, this is for the week. we're down 10%. big decline in retailers as well as other consumer discretionary names. particularly home builders. i've been asked for two days why are home builders down? this is the last big leadership group that hasn't cracked. it's finally cracked in the last two days as people decided to take profits. is there any news out? no. so far orders have been terrific for spring buying season for these companies. still, they can only go so far. when they're at new highs, people in and say where are they going to go? >> the runoff on those stocks was phenomenal out of the fourth quarter of last year. >> that's right. >> this is not necessarily doom and gloom. >> and orders have been excellent. they've seen new orders grow about 30% for the spring season

compared to the same period last year. those are excellent numbers. you point out and you're right these stocks have had the run up. here's the weekly declines. this is the worst since november 26th, thank you my producer, chris tin, for doing all the work here. other countries in europe still looking even worse. >> we have to run, bob. thank you very much. sue. >> simon, let's get an update on the bond market because it's been an interesting morning there as well. the short end of the yield curve has been in the red. the longer end has seen a bit of a rally. this comes of course after yesterday's trading session saw an all-time low closing yield in the 10-year note. and the yield right now is at 1.7072% on the 10-year. so the money is not only moving into the gold market, but also continuing to move into the 10-year and the 30-year. so you're up to date on the credit markets. meantime, shares of jpmorgan under pressure again today. the stock is traded down just about 1%. that $2 billion trading loss is getting worse. and as you can see, jpmorgan's

last trade is at $33.61. mary thompson on the banking beat with the very latest on a story that has many, many twists and turns. >> it does, sue. reports putting the potential trading loss at $5 billion now though a jpmorgan spokesman said they declined comment on what they consider to be guesses. guesses really are all they have right now. derivatives expert saying because outsiders don't know the bank's position really when they're looking at the loss estimates it's just a guess. of course, last week dimon said that the losses could grow by a billion more by year end. the disclosure tarnishing dimon's reputation as a risk manager, those he's no stranger to trading losses. he was co-ceo at sol mon smith barney when they lost $1.2 billion back in 1998. two years ago of course jpmorgan's commodities unit lost $130 million on a bad coal trade. of course then there are the current losses. now, it is a loss a bank can easily absorb. it's expected to still earn

around $4 billion this quarter. but as tough investors determine how big that loss may become is determining how jpmorgan and some other banks manage risk because to a great extent you have to take them at their word. since last fall, citi's ceo, vikram pandit's been calling for requiring banks and nonbank financials to apply their risk models to a benchmark portfolio of assets "tells the world how its management thinks about risk" so just how conservative or risky its own portfolio is. he believes that would provide clarity that many say new regulations fail to provide. sue, back to you -- or, simon, back to you. >> mary, it's tuesday jamie dimon is up on capitol hill, yeah? >> you know, simon. i don't know. i apologize for that. i've been focusing on something else. >> i didn't mean to catch you off. sorry. coming up on the program, move over mark zuckerberg, harvard's next crop start of entrepreneurs

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that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. well, coming up on "street signs" at the top of the hour, sell facebook so says one leading wall street firm. we're going to talk to the analyst behind that call. also, facebook reaches all corners of the globe. we're going to take a look at the ripple effect of today's ipo around the globe. and this week's other big story is jpm. yeah, jpmorgan's trading debacle. we're going to go inside this mess and look at what is next for the company and the tumbled leader. all of those coming up top of the hour, folks. back to sue and simon on "power lunch." >> thank you, mandy. see you at 2:00. mark zuckerberg dropped out of

harvard in order to take facebook to the next level mainly because eight years ago harvard didn't have a tech fund in place to seed student start-ups. all that has changed very much as you might imagine with the vc firm, nea, and the experiment fund. let's meet three entrepreneurs backed by the fund. mier left harvard in his junior year before launching push 44. a harvard grad and ceo jim and michael shader graduates later this month. welcome to all of you. i'm going to start with you, ma. it started on the harvard campus. what are your thoughts on a day like today? >> i'm very excited. i think it's validation that the social media and people love sharing, which is very important for a company like ours. >> what do you hope for your future? i mean, do you think that you could have that type of success? what are your hopes for your

particular projects? >> yeah. i'm working very hard to push 44 to make sure that we are successful and able to make referrals kind of part of the social media mainstream. >> all right. tell me about how difficult or easy you have found the process of not only inventing new businesses, but taking them to the next level to the next platform. and have any venture capitalists contacted you about your ideas? >> yeah. that's a really great point. so i guess i think in entrepreneurship it's all about implementation. everyone has an idea, it's about how well you can put that into practice. i think we've really done that with gympact. it's a really exciting time for us. >> have you talked to anybody about giving you funding to take the company to the next level separate from the seed money that you have now? >> yeah. so we're closing our seed fund, which is going to involve a number of great investors here in boston.

and we are very excited to work with our partners. >> all right. michael, tell me more about your story and what your plans are and how you see your company moving to the next level. is eventually going public, do you think, in your future? or do you think perhaps it's better to stay private given some of the pressures of eventually becoming a public company? >> certainly. we're very fortunate to have such a unique technology that really has potential to change the way vaccines are stored and shipped around the world. and fundamentally we believe the combination of that technology plus a team we have put together plus the really unique infrastructure here at harvard in terms of the support network is what's allowed us to seed to this point. it's hard to see what our future looks like at this point. >> have you talked to anybody about an exit strategy? >> no. so far off in the future at this point, we've got a lot to do. we're focused at this point purely on getting our products to market and expanding vaccine

access around the world as quickly as possible. >> you never know. a lot of vcs watch "power lunch." you may be getting some calls. thanks and good luck to all of you. simon. >> thank you, guys. facebook shares have been trading for two hours and 20 minutes. what a ride they're on. $40.55 after they were supported from falling below the issue price. we'll have more on that our final take on the social network after this quick break. on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?

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the weekend is upon us, but first the power rundown. joining me now is cnbc.com's john carney, and our very own bob pisani. guys, welcome to the rundown. first up, facebook has finally gone public. do you think it's overhyped? >> i don't think it's overhyped. i think a lot of people might be disappointed that the price didn't pop higher than it did, but i think this is how ipos are supposed to price. it's not healthy for the market when you doublg your money on the first day. >> i think it was ridiculously overhyped. i'm happy it opened at the right price. could you imagine how mad everyone would be -- now it's at

$40. >> it's still iconic. >> yes. >> it's still a huge cultural story. >> it's a social revolution. and i think facebook is going to continue to change our lives. >> a global social revolution. next question, do you think facebook's opening now will inhibit further ipos in the pipeline, john? >> i think it might help. i think it can help get the price right. all the wild pricing action we've seen in a lot of these ipos was discouraging people. i don't know if it's going to boom up, boom down, that's not good for the market. this is good for the market. >> i agree. if you get it right price and had you got a dedicated base. annie's foods, they had a dedicated base, price right, you'll do fine. >> do you think zuckerberg's team had it priced like this. not leaving much room for wall street. >> they stopped a lot of big wall street giants from being able to take a lot of money out of this deal.

particularly i've heard facebook's cfo, he was the guy driving the price saying, look, we want to get the best price for our guys. he deserves a lot of credit. a lot of people at facebook should send him a thank you card. >> a rock star in the making. one year from today will facebook be trading above its ipo price of $38 a share? >> oh, i have no idea. but i hope it is. >> oh, come on. >> i hope that it is. it's my wish that it is because i want everybody out there who's excited about this to remain excited about this. let's face it, there hasn't been a lot of excitement in the stock market. i want more of that sfwl i'll take the answer, yes, it's going to trade higher than the ipo price a year from today. people are going to get more enthusiastic. they're going to roll out more ways for facebook to make money. remember, they're still dreaming up ways to monetize mobile and even just the website itself. i think we're going to learn more about that. it's going to get people more enthusiastic. >> and very quickly turn -- >> right. i'm not sure they're going to have the special sauce they keep claiming they have. it's always on the horizon, like

the formula for coke. >> guys, have a great weekend. >> you too. >> sue, where are we on the markets? >> we're down on the trading day, simon. off about 35 points on the dow jones industrial average, which is about .25%. the nasdaq down about 15. zynga's one of the issues weighing on the nasdaq market today. s&p is down about .3%. in terms of commodities, another selloff in west texas intermediate crude down another half a percent. gold, simon, has been one of the asset classes moving to the upside up about 1% on the trading session. but the big story of the day has been the chart of facebook. after going public earlier this morning as you can see, the stock is now trading on the upside by 6.5%. didn't quite pop as much as some had thought. it then dropped quite a bit. fell right to the ipo price. but as kate kelly and kayla tausche have been reporting this morning, there's talk it was supported at the $38 price point

this morning. and right now it is up about 7%, simon, at $40.61. >> sue. >> yes. >> let me ask john carney, what are people saying to you about the market before we let you go? >> one, definitely everybody thinks the underwriters stepped in. that's what they're supposed to do. that's good. people are afraid to go long into the weekends because they don't know what's going to happen in europe. remember, if greece ever goes off the euro, they're going to do it over a weekend. >> the latest we have actually from angela merkel is she's proposing there should be a referendum in greece. she's said to the caretaker -- >> good heavens. >> a referendum in staying in the euro and link that to austerity. >> do you want to go long into a weekend like that? >> especially, guys, with the g-8 meeting going on. a high stakes g-8 meeting. we're going to have to see some sort of action on that. we should note that the greek banks were downgraded again this morning. perhaps not a surprise certainly, but it's a problem.

>> i think there's the possibility of an olive branch to greece. i think with francois hollande could be more. >> when they proposed the referendum, simon, was it eight months ago? was there outrage. now she's proposing this is a real idea? >> the bears are also scared here because they are scared going into a weekend that we could ever rescue. you have people who don't want to be too long, don't want to be too short. >> matt cheslock, first of all, thank you for spending the entire week with us. we appreciate it. what do you do in this afternoon trading session ahead of this weekend? >> i'll probably do nothing. that's what you're going to do. obviously gold had a nice rally this week. hard assets are in focus. oil's gotten pummelled this weekend. this is a contrarian play i would look at. i also look at yahoo!. i like the action today in yahoo!. it's held all day. those are two stocks, oil and yahoo! i would be looking to play this weekend. >> the mistake i made