jeff kilburg, what's your chart of the day? >> xlk, nice broad swath of the technology sector up nearly 2%, ty. >> just about the same as the nasdaq on the day. up 1.5% for the week and nearly 2% for the day. thanks everybody for watching. that will do it for this edition of "power lunch." >> we'll see you tomorrow. have a great afternoon. "street signs" begins right now. and welcome to "street signs." i'm brian sullivan. as sue said, it's a rare happy monday for your money. shedding the blues and surging. why the good mood after a miserable may so far? we'll dig in. face plant, the stock now down around $34 a share. who's to blame, the company, nasdaq, or maybe general motors. we'll debate. a type of illegal trafficking some say is bigger than guns or drugs, and, mandy, this is one

that may claw your face off if you're not careful. >> looking forward to it. today is the best day for stocks in may. just after the dow fell 11 of the past 12 days, the s&p is also having its best day of the month so far. and the nasdaq is recovering from what could be its worst month since november of 2008. we remember what that was like. apple is also rebounding in a big way, folks. perhaps from the money that is coming out of facebook. and facebook investors meantime not liking that at all if the shares well off the lows, but still struggling. check it out. ipo price at $38, mark zuckerberg's stake was worth about $19.1 billion. with today's drop, the same shares are now worth about $17 billion. well, facebook investors have suffered more than $11 billion in paper losses, but i'm just going to put this in perspective for you because 243 companies in the s&p 500 have market cap values less than $11 billion. in the meantime, why don't we get down to the nyse. not a bad day. horrible weather outside, but

looks like we've got good green on the screen. i wonder whether or not this is going to hold, bob. >> well, maybe. europe is in full defensive ring fencing mode. there's a big summit on wednesday and word is they'll show up with some kind of way of guaranteeing depositors money in banks in europe. there's going to be infrastructure, bond proposals, all sorts of ideas in the next week or so. in the meantime five-to-one advancing to declining stocks. not a big news in oil sectors. finally energy stocks bouncing after two weeks of disaster. 6%, 7%, 8% moves in there. not just apple bouncing in the tech area, but a number of the big names out there also bouncing. i'm not sure if this is going to last more than a day, but you'll get a lot more out of europe in the next couple days, mandy. >> we're looking forward to old news this week. bob, thank you very much for kicking it all off. >> today's a pretty good day, but it's not been milk and honey for stocks overall this month.

the dow is down more than 5.a% since the beginning of may and down three weeks in a row coming into this week. so, is there more pain on the way? or have we finally turned the corner? joining us chief investment strategist at bmo market strategists. what's today? oversold bounce or realization we have come too far too fast given earnings were not the total disaster that everybody thought they might be. >> we'd like to think, brian, that it's a fundamental reason why stocks are going up. it's really about earnings. one of the biggest parts of our calls is the quality of earnings overall in our marketplace have dramatically improved the last few quarters. this past quarter is no different. that's why we think the longer term trends of premiums coming down, risk premiums coming down and earnings continue to improve is what will lead investors back to u.s. stocks. >> do you feel that the stock market can perform well irrespective of what the dollar is doing? considering i think on friday we ended the 14-day winning streak

and dollar bulls are at six-year highs. feels like people are lining up behind the dollar at this stage? >> yes. we wrote a full report on that this week in terms of the rhetoric and the basic bottom line is don't believe the rhetoric. we have the last ten years ground into our brains we need a weak dollar for the stocks to go up. that's categorically not true. look at several cycles and at the end of the day the stocks go up because the economy is coming back and fundamentals, not because of the direction of the dollar. so we think some of these extreme measures of the dollar being weak the last ten years -- remember the '90s, it was a great time to be an american. stocks went up, dollar went up, bonds went up together. we think too short-term oriented when it comes to the dollar. >> stay with us, brian. let's get more news with kayla tausche with the facebook trade since the beginning of the story since before it went public. seems so long ago, kayla, kwha do you have now? >> it seems so long ago, brian, but the stock still can't hold onto itself today. trading down about 9% even into

the last couple hours of trade. i know a lot of investors were hoping there would be some buying support throughout the day that would lift that stock up just a little bit. of course you saw some institutional buying before the market, before they expected a waterfall of sales to occur. and mostly retail selling throughout the day today. the big question is where that support level is. sources telling me they think the market has found a price for facebook at $33.50, $34 and that that looks like a stable price. anything could happen as some of these headlines come out about what nasdaq is facing as far as liabilities, what may happen with facebook on friday as far as what any sort of underwriting liabilities there are with overallocations and any clawbacks of those shares. we'll have to wait and see. i think investors are sort of holding onto what could be the worst to come as far as whether they want to buy yet. we don't get a sense there's a long line of buyers lining up for this stock. so hopefully better news comes out throughout the week. >> okay, kayla, thank you very much for that.

>> and brian belski still in with us. we have guy adami with us. what's up? not facebook. >> no. >> we have a similar theory on facebook. i know you're not a facebook guy, but we'll talk about what it means for the overall market. everybody's slamming the nasdaq. some people are slamming morgan stanley. i think, and it sounds like you agree, that gm may have done more damage to facebook than any of the other technical stuff that we're talking about. >> 100% agree. i mean, general motors you can argue one of the largest advertisers on the planet. >> $4 billion a year globally. >> i don't believe in coincidence. so why would they -- and these are smart folks, why would they on the eve effectively of the facebook ipo make an announcement like that? it's got to give you if nothing else pause and has to make a statement to other advertisers out there. if gm looks at it this way and facebook is not that attractive, what does that mean to us? facebook told you they're having trouble with their mobile

platform monetizing that. so maybe going towards that model, maybe gm was right. >> you think they were trying to send a warning note just to be careful, look more at the growth model and numbers. >> i don't know what they were trying to do. there's no coincidence in life. i've got to believe they think through these decisions clearly. the fact it happened within 24 to 48 hours of facebook ipo to me if nothing else is interesting. >> is there real fundamental consternation about the outlook of this company? >> well, we reserve individual for clients, but let's take a look back and see how much excitement was derived from that and how people have come back to equities. i think we need to focus on that. to some degree on a near-term basis we're getting lost in some of this nush ya. look at some of these hot tech

deals that came in the '90s see how the performance was six and 12 months after that. maybe a better picture of history from that. >> there was so much weight on facebook, forget about the individual name. it was the attention of the retail investor, right? somebody who's dated a few times the past years, had bad dates and said i'm done with the dating game. maybe this lured them back in. they go on another date per se and try to dip into facebook and leaves them with a bad taste in their mouth and now perhaps they're out for good. does this damage the market more than it had been damaged? >> some would say institutions are dating stocks too because for all intents and purposes -- >> speed dating. >> for all intents and purposes there's not been a lot of volume period in the markets for the last three years and that tells you the institutions -- so who's to say reality whether or not involved in the marketing. >> my question is then, guy, if we're not getting mojo back with facebook, what is? >> the level we stopped at the

1292 level in the s&p is interesting to me because it coincides with the level on october 27th that we sort of crashed from. so past support or resistance becomes support. but i'm not certain -- i'm not as opt misic. i still think there are tremendous headwinds out there. to brian's point, people i think saw this as an opportunity, here's facebook, here's a shot for me to make some money and it all goes terribly pear shaped for them. i think it could leave a bad taste in their mouth. >> brian -- my argument, there's too many brians, refer to me as delta global conflict from here on out. we have facebook in the rearview mirror. the story's not done but it's in the rearview mirror. we're going into summer. >> uh-huh. >> what's the next most important thing for you for the overall markets? >> employment. the employment reports on a monthly basis the next few months are really going to tell us the shape of the economy heading into the fall and the election. that's the key key metric. remember, we had a fast start to

employment in the beginning of the year and couple months of soft numbers, it's all about jobs going forward in terms of building new confidence and what we're doing here in america. >> and i certainly see expectations for u.s. inflation have been coming down significantly recently. so i guess, i don't know, you could argue that therefore there's more room if they wanted to for the federal reserve to provide stimulus. then the next question is whether or not that's a good thing to do. >> no, we don't think it's a good thing. when we rolled our coverage of u.s. strategy we talked about qe-3 being both an upside pressure to our targets and a downside pressure to our targets because, let's face it, if they come out with qe-3, stocks will go up. but the longer term magnitude of that is it just prolongs the inevitable. what's the inevitable? the u.s. treasury has to actually buy back these instruments. no, we think the longer term viewpoint on stocks is positive. 1550 next year. >> 1550? >> yes, brian. get on board. >> get on board the nina, pinta

and santa maria. 1550? >> yes. companies with a global footprint primarily here in the united states is lead the way. that's the new leadership. kind of like 1995 and '96 all over again. >> the peter frampton market. show them the way. >> show them the way. >> i think the frampton live album is a wonderful live album. my question would be can we go down to 980 before we see this mediocre rise? i would say that's absolutely. >> 980, guy, we could not disagree more. earnings and valuation support around 1295, 1250. >> but we could see a pullback to 1225 before we go into what you see is a two-year bull market. we go to 1225 back at the math, that's 20% gain effectively what you're calling for. >> i think it's a classic five to ten year bull equity market. >> let's hope so. >> there's a lot of people --

millions. and it takes a nation of millions to hold us back. >> guy, thank you for jumping in. brian, as well. >> if you don't think gm is to blame for facebook like guy and i do, do you default machine sns do the folks that trade in milliseconds bring the trading to a halt? >> and real signs of life in the housing market. and a big week of data could bring more. could a housing rebound be a bad thing for your portfolio? chew on that. we're going to explain it coming up.

donuts. chain's quarterly profit beat street estimates. customer traffic increased and the company also jacked up its prices. it's not an entirely rosy picture though. earnings fell 34% from the year earlier. the shop blaming higher tax rate and lower international same store sales. they went into voluntary administration in australia of november of 2010, they have since come up in a vastly scaled down operation. >> a well-known name to our viewers from about eight years ago. very hot company. all right, stay with us on this one, folks. and stay with me as i look to the right camera. housing looks to be making a comeback. we get little positive data points every couple weeks. nothing booming, but not bad. how about this? could a housing recovery be a bad thing for the u.s. stock market? drew madis is here as is chief

economist at the national association of realtors. drew, we were talking about this with our team last week. here's our theory, which is 30% plus of homes are now being bought with 100% cash. my take was that was cash that is obviously not being used for anything else, ie, nothing being put into the stock market. could a recovering housing market be a drag on u.s. equities? >> you know, it's an interesting idea, but i don't think it's the case. i think you would have to make the assumption that people who are willing to go out and buy a house for cash that they're actually going out and investing that money in the stock market in the meantime waiting for something else to come along that's a better investment. i don't think that those investments are transferable in that way. and my initial gut read would be that if people were more willing to invest in housing, basically the thing that caused the crisis is now fading, and if the crisis is now fading in those people's minds, it's probably a more positive thing for stocks rather than a negative. >> and yet, lawrence, it feels like it's really worth asking the question.

because i feel if someone said to me, okay, i've got, i don't know $20,000 or $30,000 today do i put it into the stock market with a lot of uncertainties out there or towards a down payment on a home? >> the low point back in 2009 to recent high before coming down so naturally for some families their concern about the valuation, high valuation of the stock, now they're looking for what is a good buy. and real estate has certainly provided that opportunity. now, i will say that because of the housing market recovery, there was a very little chance of u.s. economic recession. so even though europe is on the verge of a recession, u.s. is not because of the housing market recovery. and that's a good thing. >> yeah, it is, drew. and by some accounts more than $50,000 is put into the economy every time a home is sold, both

in terms of commissions paid, furniture bought, moving services rendered. whatever it is. so that would then go into gdp growth which might lift all boats. my argument was a little more micro on the actual dollars being used. so if you don't think my argument is right, do you believe then if we do get a more sustained recovery in housing that the opposite is true? that the u.s. stock market would then take off? >> i'm not sure it would take off. our equity strategist is still saying 1475 for year end. but i would say this, it doesn't really matter if people buy a home or rent. if they're moving out, if there's household formation going on, so people leaving their parents' basements, for the most part there's going to be some improvement in demand for things like furniture and electronics, et cetera. when people move out, they want to move out. they want to have a fresh start. so i think the household formation is actually probably more important than even the housing numbers although at ubs we're very happy to see the housing numbers because it's what we've been calling for for

some time. >> if we talk about projected performance over the next 12 months, lawrence, i know you're not an equity guy, so i'm not going to ask you about the stock market, but if you put your money into a house today, how much do you think you would get? >> over the next 12 months it will be very modest gain of 1% to 3% appreciation nationwide. some locality we are already seeing double digit price appreciation in south florida, phoenix markets, particularly the listing price -- not the close price. close price is a huge lagging indicator of price negotiated about four to six months ago. so the listing prices are really making a jump. as the prices improve, that means increase overall financial net worth for many of the homeowners. and that will also help on the consumer spending side. so i think the recovery in the housing will have a tremendous positive impact for the u.s. economy. and subsequently for the stock market. >> and, drew, before we let you go, i want to get your take on

something totally different. brian belski said payrolls are everything. friday june 1 st we get the payroll number for this month. have you changed your expectation of the jobs number for may in the last couple of weeks? >> no because we haven't done it yet. i'll just say this, i think he's right. i think the labor market really is the key driver going forward right now. that being said, we have -- it doesn't really matter what the number is on this coming friday or the following friday because we don't think the fed's going to do qe while europe is still sitting out there. we think the fed has plenty of ammunition to do qe-3, we don't think they have the ammunition to do qe-4 meaning they have to wait on europe. >> hoping we don't get a qe-5 or 6, how long can this go on for? drew and lawrence, thank you so much. >> thank you. >> thank you. >> all right. as the graphic says, time for our disaster du jour. this is lowe's. the home improvement company, not the conglomerate, down just under 10%. they beat in the last quarter, but it's all about forecast. forecast was lowered.

people did not like what they heard. to our previous discussion, lowe's, mandy, saying they do remain concerned about a housing recovery. same store sales fell in march for lowe's. proof that the hangover from bad news doesn't last too long. walmart hitting a new 52-week high. the world's biggest retailer took a hit, you might remember, after the news of the mexican bribery scandal hit the street. but the stock has come all the way back and then some. it's currently at 62.94. >> proof once again it's a big headline, but the average investor. >> doesn't really care. i guess a lot of people just think, well, that's the way you have to do business in emerging markets. >> that is true. all right -- i mean, that's what people think. not that's what you have to do. just ahead on "street signs," banks and brokers really taking the sell in may montra to a whole new level. but could now be the time to buy? >> and wildlife, wmds, forget guns and drugs, how smugglers are bringing in real live containers that could cost americans billions.

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believe that in today's move. maybe a good sign. >> broken down somewhat recently. exotic animals, believe it or not, are at the center of a multibillion business. animals and their parts traveling the world can also be a danger to your health. tonight at 9:00 eastern and pacific, cnbc goes inside the illegal wildlife trade to show us what dangers could lie ahead. now brian shactman is here joining us onset. what are we going to hear tonight? >> well, we're going to talk about disease. i want to throw a little clip because we're talking about the business side and legal, but also with contagion and the movie outbreak, people are worried about what all this trade can do out there in the science world. take a look. so it's not just an issue of the potential to kill thousands or hundreds of thousands or millions, it also can sort of cripple an economy. >> only 9,000, 000 people get sick, 700 or 800 people died and we lost $50 billion in economic growth that year. >> and it's not the only killer

with economic consequences. h1n1 outbreak was equally devastating resulting in an estimated $45 billion to $50 billion in economic losses. avian flu in about $30 billion worldwide. >> best analogy or metaphor was it's like a knew clear meltdown. the probability of it happening is low, but the impact would be so huge. we were talking about the business side, but then we ask the question, could something like that actually happen? >> which of the trafficked animals do we fear most in terms of ability to pass something onto us in terms of disease? >> disease i think first and foremost comes with the primate world. they're so close to us genetically that if they carry something, supposedly in zanesville the one primate that wasn't found carried herpes b, if transferred into humans, you think it's funny, it's deadly. >> you get a bite, right? >> yeah. >> let me ask a dumber question? who's buying these animals?

why in the world would you want to have, you know, a honey badger in your house or something like that. >> right. people feel like there's a connection. and they can be different than other people. we talked to a guy in long island who is nursing the world's largest rodent. it's going to be 100-pound rodent. and he actually will move it on before it gets too big. >> to where? put it in a cart and say good luck? >> he lives in a private home and has a business where he shows these at parties and so on. jack hannah, of course, the famous animal advocate, anyone who owns a primate, a bear or large cat, it never ends well. but everyone feels like i can be the one with the connection. >> that story with the woman -- >> i can't even look at those photos. >> and desperately sad for the animals. dangerous trade, exotic animals tonight 9:00 eastern and pacific. where else other than here on cnbc. coming up next, stock talk

and not good trade. and a brutal month for many of the banks. could now be the time to buy when other people are expressing fear? "street signs" back in a moment. i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a totally new investing dashboard. everything is on one page, your investments, quotes, research... it's like the buffet last night. whatever helps you understand man. i'm watching you. oh yeah? well i'm watching you, watching him. [ male announcer ] try the new 360 investing dashboard at e-trade.

welcome back everybody. i want to show you what is going on with facebook. by now you know of course the ipo fell flat. today it's down by over 9%. it did fall to a session low of $33 at one stage. now, one theory here is that people took some money out of apple and they put it into facebook and facebook wasn't exactly the success people were hoping. now they're putting that money back into apple. we're seeing a reversal. apple up by $22, up just over 4% there. let's get to other individual stocks right now. campbell's soup is top of the slate. >> campbell's soup has not been good food, not a great investment because soup sales fell 3% last quarter. they continue to revamp their soup business. besides the name campbell's soup, they do sell other products. but soup still is their core. soup sales disappointing. they did not raise the forecast. the stock down just about 3%. >> feeling a little soupy there. american eagle outfitters next on the list. >> i was not aware of the kids business called 77 kids.

well, they're getting out of it. and said their cfo is stepping down. exiting one business, the cfo is out. if you're the cfo, doesn't feel good when the stock rises 9% to 10% based on news of departure. >> that's not a good feeling. avon is another one we're looking at. >> ubs the latest to take a shot at this company basically saying it's not bottomed out yet. they cut their rating to a sell. get this, mandy, they're slapping a $13 price target on this. they had $23. they missed the run down. now they see another $4 coming off avon with a sell rating. problems are simply not resolved especially after coty withdrew its bid. >> and good rich petroleum. >> gdp announcing a cash dividend of 60 cents but on preferred stock. you need to be a stockholder of record as of june 1st. maybe people piling in expecting a dividend. keep in mind, dividend is on the preferred shares. stock up more than 16%.

but just something to note there. >> and let's end on another high note. last but not least, general cable. >> yeah. general cable, a small company. usually when you buy another company, your stock falls. well, obviously the market like ths deal. they're buying a company called alcan cable. they make copper and aluminum wiring. i threw it in there because maybe some optimism on the commodities side. we've talked about how construction is doing this, is dr. copper right, they're optimistic enough to buy another company. maybe they want to take capacity off the market. either way, the stock is up. >> not bad at an australian accent. been hanging out with some aussi aussies. jpmorgan falling leading down on the day now down 12% since the scandal began. today jamie dimon saying he's suspending buybacks however maintaining the dividend. all the banks have been hit hard over the last month.

so is it time for good-bye now? or is it just good-bye? let's ask jason goldberg, senior equity analyst at barclays. what do you think specifically is behind this wrath that we've seen lately in the banks besides what's going on with jpmorgan? are we starting to look like an attractive buy here? >> sure. bank stocks have come under pressure in the second quarter after a nice run in the first quarter where they rallied 25% more than double the s&p 500. and i think the issues have been, you know, just persistent low interest rates. you know, the 10-year treasury yield got as high as 2.4% during the first quarter and now fell below 1.8% last week. you have kind of europe people felt better during the first quarter post the ltro, now maybe not feeling as good nouz showing direct exposure banks have and implications over there. i think those have weighed on investor psychology and more recently jpmorgan trading losses. >> sure. talking of which, you're quite

bullish on both jpmorgan, with a price target of $57 on overweight, even with all these problems and also quite bullish overweight $36 for citi. what are you seeing the market isn't? >> you look at the bank stocks in general and those two as well, the majority of banks including jpmorgan and citi group, we look for earnings to grow, book to grow in the case many bank stocks increasining dividends. record deposits, record liquidity. firmer ground today than two or three years ago and valuations to us look attractive longer term. obviously near-term the stocks come under pressure, but we're expecting to earn more money next year than this year and more money the year after. >> should bank of america put countrywide into bankruptcy? >> yeah. i think there's a lot of legal and technical issues with them doing that. so i just don't see that as a probable outcome. >> but if they could, if they

could get that off their current balance sheet would shares spike? >> i think if they had a magic wand and wave it and make those problems go away, they would, and the stock would benefit. i just don't foresee that happening. >> all the things potentially to come in terms of volcker rule, et cetera, are already in the stock sns. >> yeah. a lot of regulatory stuff out of dodd frank and the banks have gotten their arms around them starting to work their way through. i think the two biggest unknowns are clearly the volcker rule and rate of reform. volcker rule the fed came out a few weeks ago and decided to extend the time line for that a little bit as they kind of gather increased commentary from a lot of the market participants. so, you know, continue to work through that. we do think a lot is overly discounted in the stock prices, yes. >> jason, thanks for joining us on the show today. >> thank you. >> before we hit the break, head down to the energy pits for a quick check on the commodities close. sharon epperson, what is your big headline today? >> looking at oil prices closing near the highs of the session, traders are talking about china.

and they're talking about iran. the china premier talking over the weekend about some type of perhaps support for the economy there. that helping to lift brent prices a bit. and then on may 23rd we do have in baghdad the u.n. security council plus germany talking about iran's nuclear program. we'll see what comes of that. some traders say that could continue to support oil prices through the end of the week. we are watching this brent crude that is particularly robust today. and it is also lifting the gasoline futures contract. so keep your eye on that. although we have seen prices come down quite a bit at the pump. back to you. >> okay. thanks so much, sharon epperson. >> all right. coming up next on "street signs," something cool. his name is synonymous with speed. we are joined by marco an dretty. the racing dynasty's young gun here to talk about this weekend's indy 500. we're going to go out and check him out. marco, get ready. we are coming for you. if you are one of the millions of men

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i'm bill griffeth. coming up at the top of the hour on "closing bell," best buy shares have touched a new three-year low ahead of tomorrow's earnings report. does that make this beaten down stock a best buy for investors? we'll show you what the charts are saying right now. plus, will the fallout from the facebook ipo fiasco make retail investors even more gun shy about getting into this market? both sides of that story. and a powerful republican in congress who are becoming as suspicious of big banks as they are of big government. could that lead to more

regulation of wall street? we'll look at that. we'll see you at the top of the hour. maria and i are hear at the new york stock exchange. in the meantime sully and d ro outside with racing royalty. >> yeah. darren i know likes motor sports and i'm educating him on motor sports too. if you're like me, despite the beautiful weather this weekend, you were logged in and totally dialed into nbc sports watching qualifying from the indy 500. joining us now one of the guys starting up front, marco andret andretti. you know his grandpa, his dad, you know him. successful in his own right. part of the rc cola team. we're here with the representative of the indy car of the series. new car this year. i know randy bernard is in his third year. you guys have made a lot of changes. i know you're running well. it seems like the sport is getting a lot of its mojo back after the pain of the breakup. do you feel like indy car is back where it needs to be? or how much more do we need to go? >> we're not close to where we

need to be. obviously we want to set the bar high. it used to be bigger than nascar before the split, unfortunately. so when that happened, i mean, some fans lost interest. but we're on a total upswing right now. things are looking pretty good right now for us. and a lot of sponsors, a bunch of engine manufacturers now with chevy coming on board especially with us. we're lucky to have chevy behind us actually this month if you look at the grid so far. but, yeah, i mean a lot of tough competition. it will be tough. he's starting right next to me too. >> everyone always looks in the u.s. sense how's it doing in the u.s. and compares it to the coca-cola 600 or whatever, look at the ratings, but there is obviously demand especially in brazil, adding a race in china. so how does the sport broaden out and go everywhere where it's wanted and at the same time someone look at the indy 500 starting grid and be able to know a name here? how -- that's a push/pull there.

>> it's a balance, man. i think we're doing a good job. they have enough americans in it and competitive americans to generate that interest. but obviously, yeah, you said it, man. i mean, we're huge in brazil. i mean, we go over there we're like rock stars. it's cool to see because over there you know it's like soccer and us. and especially in europe as well. >> a huge fan base. so we welcome everything with open arms, i mean, obviously. we're going to see how china does. it sounds like there's a lot of interest there as well. >> racing's a good indicator too for the economy, right? you've got to raise the cash to get in the car. racing is turning money into noise. is it easier now to than it was two years ago to get sponsorship? >> i think nowadays, drivers back then i don't want to say easy but we have to have a big business sense, man. like we have to be in tune with

everything like as far as the marketing behind it. and we have to go find sponsors and because now it's harder than ever. and we're fortune to have the sponsors that we have. rc cola and dr pepper/snapple group, to have sponsors really behind you, it's huge. it's tough for them to justify it. you have to really know what they need. and to help them as well. you don't want to just help us, you want to help everybody grow. >> i know you have one question about the milk. there was a question andretti auto sport might get nascar in a dodge car next year. >> i'm just worried about chevy at the indianapolis 500 right now. >> and you're not lactose intolerant? you can take the milk? >> the only way i'm going to get sick is from chugging it. >> you're ready? >> darn right. >> marco andretti, good luck. be safe most important thing. >> appreciate it. >> marco andretti starting fourth.

mandy will be inside all weekend watching the festivities. >> glued. literally glued. >> which is in indy and they race 500 miles. >> thanks for clarifying that. i know you want to spin in that car. >> i don't think this one has an engine in it. >> if it's something horsepower, get the horses to pull it. coming up next, facebook's rocky start. are high frequency traders to blame for the stock's lousy opening? well, the man versus machine debate when "street signs" returns. tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker.

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welcome to the world leader in derivatives. welcome to superderivatives.

we're learning more about the nasdaq's difficulty with the avalanche of trades and cancellations before facebook's ipo. one of the lingering questions among many, what role did high frequency traders play in this mess? eamon javers has been tackling the issue of man versus machine. here's his take. >> hi, brian. i just wanted to give you a sense of just how fast all this happened on friday morning. according to nasdaq, it was

11:05:10 where they attempted to complete the ipo cross process. that's what they called the process where they match up buying and selling interest in facebook and then actually go ahead and print the first trades. what they needed several mill second period of time where nobody cancelled their orders in order to make that final calculation and go ahead and print the first trade and they just could not seem to find it, nasdaq says, and once somebody cancelled their orders, in that tiny little slice of time, if a cancellation order came into place, the system would reset and start to calculate again. that is, we believe, now why we saw that delay on friday morning as nasdaq attempted to get that first trade out of the gate. now meanwhile, today i've been talking to hft critics, high frequency trading critics, who say all of the disruptions we saw on friday created enormous opportunities because some changes were slightly off each other and high frequency traders

were able to profit from those minuscule mismatches all throughout the day on friday, brian. that's what the critics are saying. they are saying this causes a lot of instability in the markets and causes the problems we saw on friday. >> absolutely. i guess the question here is, is it time to slow the machines down? obviously it's been quite painful for people, if you bought at the high on friday, you lost 20%. now man versus machine, andrew stockman and jim angel, profess ear the georgetown university. andrew, why do you feel that nasdaq glitches have the fingerprints of hft all over them? >> i think it is clear. when you talk about order cancellations in tens of millions of shares, literally milliseconds before the ipo was supposed to go public and people aren't allowed to put trades in, i think this has to do with high frequency trading and this is the activity that they engage in and it is problematic.

this isn't the first time it happened. >> jim, do you feel it is clear that it has the fingerprints of hft all over it, or is it not as clear for you. >> is not as clear for me. i'm sure we will discover more in the near term but i think we should not rush to judgment and say that everyone using a computer is bad. >> i think is more than that. nobody is saying just because you use a computer to enter trades you're bad. but if you look at the historical performance of what high frequency traders do, they create disruption. they create mass volatility. it is only a little over two years ago that we had the massive, you know, 10% drop in the market. about a thousand point due to the flash crash. so what are we supposed to do? at some point we have to say the high frequency traders cause so many problems we have to ban it or otherwise -- >> andrew, i'm going to let jim in here. your argument is, yeah, this is not great. but regulators need to speed up rather than the markets having to slow down. >> right. distinguish between the good uses of fast computers and the bad uses.

there are plenty of good uses for people doing legitimate things, like making markets, like making sure that the price of your etf is properly linked with the cash market that makes up it. so there are a lot of good uses of fast computers. if people are out there doing bad things, like putting out such a high frequency of data, that they are contaminating the market, then we need it deal with market manipulation. we shouldn't say that anyone using a fast computer or cancels an order are bad. >> regulators are looking into the glitches. here is someone else that believes we should be asking the regulators about what it do. ceo about knight capital, this morning. >> this has nothing to do about you against the machine. this is technology problem. this is like your server going down except on a massive scale. and instead of stepping back and rebooting, they kept plowing --

>> so andrew, i know you are anti-hft, but if it is not banned, how do we make it better? >> that's a problem, i don't know if you can make it better. >> how do you define it. >> that's another issue. how do you define it. but if you are talking about trading in micro seconds, are there benefits? of course. but dot cost of small investors and retail investors outweigh limited benefits and i think is clear wheb you have this sort of insane volatility, this sort of problems when it comes to an ipo like facebook, you have to ban it completely. >> jim, i want it take a different attack. a lot of people say this is a bit after victory for nyc. if facebook decided to ipo at nyc there wouldn't have happened. if a person was just basically being there, as opposed to the nasdaq, what do you think about that? >> well, if you just look at trading of facebook during the day, it looked pretty normal for an ipo regardless of where it

was. if you look at how linked in trading, there it opened on the new york stock exchange. it was delayed quite a bit while they found the opening price and after it opened it was a very wild ride. and so, if you just look at it from the perspective of price discovery, the market did a pretty descent job of discovering a price and we know that an ipo like this is going to be wild and it -- it worked. >> you know, jim, i argue that it was a pretty successful ipo. my view is, they priced it, it seems, reasonably fair, if not maybe too high. we didn't get the 50% spike, butty not supposed to, right? they raise the allocation and it seems like most of those shares were met, maybe not all, maybe too heavy on the share allocation side. would you view facebook -- and i know this is probably a contrarian view, as a relatively successful ipo. >> facebook is certainly a successful company and certainly

the underwrite blased billions of worth of stock. so from that perspective, it worked. yes, there were plenty of glitches in the opening. there was a price of somewhere in the reasonable noo neighborhood of where it should be trading given what the market thinks of the company. >> thank you much for joining us. i guess the expectations were set too high. hyped up too much, that a lot of people thought it was disappointing, even if still thinking it was a successful ipo. >> i mean, if mark zuckerberg is on the line, they have something to talk about. how much a trip 20 disney land will cost you, up next. [ tires squeal, engine revs ]

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