spanish banks. consumption and they buy a lot >> okay. something to keep an eye on in of oil out there and then the meantime. quick read on why this is the finally the ten-year note coming back a little bit. reason to be grumpy at the yields creeping up to 1.74% happiest place on earth. after hitting that all time low last week. disneyland adventure park, and they got a lot of supply coming to market this week with tickets jumped between 7 bucks and $150 depending on the deal. $99 billion auctioned off by the treasury. this is the second price hike in peter, i'm curious, your a year. thoughts on this bounce today. they must be confident enough to pass it on to the consumer. just a bounce or is the momentum >> thank you for watching trying to come back here? "street signs," everybody. >> "closing bell" is next. >> i think the momentum is trying to come back here. the mark set slammed, it seems like forever. even though it is only 11 or 12 trading sessions. but we've been under a lot of >> hi, everybody. pressure. this could be a combination of a good afternoon. technical bounce and with money we get into the final stretch. back into the market. got out last week and the week before, they might find stocks i'm maria bartiromo at "closing they feel are a little bit more bell." >> facebook has many nicknames better priced. so it could be a combination of suddenly, but we can't tell you both. >> rich, what do you think? all of them on television. are there sectors that you feel what we can mention is sade were needlessly beaten down? book. not feeling the love from wall we talk about technology being the sector for all seasons. it was the leader to the down street today, but the rest of side last week. the technology sector led by >> first of all, we have to remember, this isn't the end of the free world as we know it.

apple. those are the best gains among the major averages. everybody made greece out to be stocks are, broadly speaking, on the end of the free world, it's not. technology is a special track to snap their six-day situation. we have two groups. the social media work, which i would argue is overhyped and losing streak. dow up 107 points. probably overvool val ued. as we go into the last hour on then we have everything else. and everything else is pretty 12,477, you think that's good, look at the nasdaq. attractive with the caveat, that even better gain today, up they are very dollar sensitive. almost 2%. now it is up more than 2%, a today the dollar is down. if the dollar is appreciating, gain of 60 points at 2389. you have to watch nasdaq in the next quarter too. we will look at why in a moment >> i take to you wouldn't buy and then the s&p is up 18 points facebook here? >> no, i would not be buying at 1313. >> yeah, bill, let's call it a reality check today for facebo investors. facebook. >> social media is just too facebook down about 10% in the expensive right now. final hour here falling well >> i think so. below the ipo price, of course it is hard to value. and therefore, you know, invest $38 a share. we heard a variety of reasons in them says there is nothing why investors are bidding down the stock but much of it is attractive investing anywhere else in the world that might be centered around the company's cheaper. i find that hard to believe. $100 billion valuation and >> where do you see the order flow going? lackluster market demand for technology is very, very strong that valuation. with all that m mind, now again today we saw materialses, the ip dust is a real as i said, reaction to what is going on in classic risk on sectors right the facebook saga. now. is that where we should be

putting our money right now? bob, kayl ae and bti research's is that where it's going? >> i got to tell you bill, back into industrials is not a bad richard with us and adam, good bet. can you see what happened this to see you all, thank you so morning with cooper industries getting taken over by eden. much for joining us. adam, what is your take on the i think you will see more of facebook story today? that. i think there are a lot of >> sure, maria. companies out there, that even this is a simple story where though they are fairly priced, a investors are asking the wrong lot of the big conglomerates a v question. this is not whether or not facebook can add users, it is a lot of cash on the side lines whether or not they can mon so they can pick and choose what advertise that growth. they want. the industrials, has a good shot if there is a billion and a half at pretty good appreciation. >> what are you watching more users, it bodes poorly for the right now? are fundamentals in the u.s. or stock. >> kayla, you've been following overseas? >> my guys are always watching this since day one. do we have a better sense of fundamentals in the u.s. what happened on friday? >> of course, you know, sources they've been like that the last of mine that were involved in six months. >> peter wsh rich, thank you for the deal are calling what happened at at nasdaq an stopping by. unmitigated disaster, even so a very strong rally today for though it was limited to a short the major timeframe. it still had large repercussions for the way that investors work, perceiving the stock. if you look at a the chart from today, you will see it started moving upward around 12:00. that's when an alert was sounded to traders about a review over

accommodating trades between 1111 and 11:30 a.m. they are jumping on the regulatory bandwagon. sec reviewing this. this alert says the nasdaq omx board and nasdaq stock exchange will be looking at those trades, settling any claims that come in and seeing which investor claims are valid as far as which trades will actually carry through. so we won't know for some time which of those will shake out. investors taking a pass in the meantime. >> this is really the crux of the whole story, because now the nasdaq will have to come up with accommodation packages. i spoke with bob last night and he explained to me that one of the issues was they have a different system when it comes to ipos. rather than the way they normally have stocks open and close. there is a two-minute gate where you cannot make changes or modifications beyond that two minutes. two minutes before the auction process is to begin. with ipos, and particularly high

profile ipos, they give investors as much time as possible to make changes, modifications, cancellations. what they did not anticipate this time around is that there would be so many cancellations and modifications. bottom line, people were looking at expectations here. they knew as we approached the opening, this was not going to be the hot deal. there were cancellations. >> bob, you and i were just talking about that very thing before we went on the air here. [ inaudible ] >> you guys are not hearing him? we're hearing him fine. you're not hearing bob? >> now i am. >> well, let's bring richard greenfield in. this is an opportunity for facebook to shine.

does this tarnish them more or does it tarnish the stock market? >> i don't think this tarnishes anything. i think the reality is facebook is an amazing company with a very bright exciting future. when you look at facebook, it only has $4 billion of advertising today. advertising, if you just look at display advertising on-line, globally you are talking about $25 billion market. all of advertising, i'm sitting here with the cable show on the convention floor. you know wheb you bring in tv advertising and all of the other forms of advertising, it is a $400 billion market. this is not a question of how great facebook is going to be and how much bigger it will get over the next five to ten years, it is a question of right know, looking at its valuation. you talk about stock trading at 15 times revenues, 25 times next year's ev, this is not a cheap stock given what it has to work through. brands have to learn how to use facebook. that's why gm pulled out, ford still lovers it. brand are learning to use

facebook. you don't just throw up creative. it has to be part of a broader campaign, so brands are learning how to use facebook. and the other big issue you need to talk about is mobile impact. every single person you know is looking at facebook more as a utility on their mobile phone. how do they reach you with advertising when they are on that mobile device. >> that's a negative. because it'll be tougher and tougher to reach people in advertising in mobile. because the screen is so small. >> they are calling that an opportunity. >> let me talk about another opportunity. a market up 112 points here on the dow jones. i do want it sell into this rally given the fact that it seems like the problems in europe are creeping up again. at there point, i'm so over facebook. and i want it talk about the european banks. >> i could tell you were over facebook. >> yeah, i want to talk about what the heck is happening in europe. $300 million withdrawn from deposits. i'm wondering if this is the start continuing in european banks as they continue to raise

capital, sell assets. so market up 113 points, i'm wondering if it is an opportunity to sell into the strength. adam, what is your take on that? >> great poent. the question is simple. would you put your money in european banks right now? specifically spain, greece, italy or portugal? >> i don't know. is it an opportunity or snn. >> one of the positives for the market, today, adam, is the chinese premier, their strategy going forward is not to try to dampen inflation expectations, they want it puto spur growth. >> that's a very easy way for china to talk its book. but from the global perspective, if you look at markets and if you look at the risk on theme versus risk off theme, you have to ask yourself a simple question. are issues in europe resolved in the answer is no. in the g 8 summit, you have european summit coming up this week. again, if there was a solution to this problem, we would have seen it already.

the reality of the situation is simple. nobody in the entire world has a solution that works. and that's why markets are under pressure for the past six weeks. >> all right. thank you all. appreciate it. we're going to get bob's mic worked out and bring him into the conversation wz pell. kayla, we will check back with you as soon as it warrants as well. it is not all about facebook today. there are other movers and shakers, which maria is thrilled about. mandy? >> the stuff other than facebook going on, bill? i didn't know. anyway, let's just step back and take a look at markets here. what you are sitting at is approximately session highs. a pretty good start to trading week. but this is of course coming off a fairly low base, guys, because we had our worst weekly decline last week. there were a couple of macro things that are helping sentiment here. for example, world leaders expressing support for greece to stay in the eurozone over the weekend. and at home, things like the national association for busy con mists expecting modest

growth for the remainder of the year and they say things will pick up pace next year as well. let me take a look at some of the individual movers and shakers. i'm not going to talk to you on facebook, i'm going to look at other social media companies today. all of these have had very different performances post ipo. you've got today for example, zynga down nearly 3%. groupon is sharply higher and linkedin as well. they are not following what facebook is doing. take a look at apple. these shares dived almost 15% from their record back in april. today up nearly 5%. why? one of the theories here is that people came out of apple to participate in facebook. now we are seeing a bit after thud in terms that ever ipo. reversal of that trade, people putting money back into apple here. i have to finish with the banks. you have jamie dimon this morning saying they have suspended repurchases of jpm

stock. he is headed for testimony tomorrow. we will hear more about what exactly happened behind closed doors. jpm is.down 2.5%. we have lows, nonetheless, as one of our disasters de jours. cut its fiscal year earnings outlook and saying demand is slow towards the end of what is traditionally a strong third quarter. today, however, on that news, it is down by over 10%. maria, i'm going to hand it back over to you. >> mandy, thank you so much. back to the markets here. gentlemen, good to see you. we want it talk really about investing in this environment, how do you see this market in the remainder of the year? richard? >> i only focus on media stocks. i think when you look at media names, we think that they are one of the more interesting

places it participate right now, is on the on-line world. we are very excited about zynga. i think they are one of the most interesting names to buy on the facebook weakness. it is sold off purely on the appreciate u you are seeing in facebook shares, i think. when you look at its business and how small it's gotten over the course of the last few weeks, i think there is a big opportunity for investors to pick up zynga shares. i think time warner cable is a compelling story. everybody everything we are seeing whether you believe it or not in the facebook story, band width consumption is exploding. the pipe, buying companies that own the pipe, like time warner cable, we think have a tremendous amount of upside over the next 12 months. i think that's one of the best ways to participate and participate in the isp broadband growth you are seeing in this country. >> okay. thank you, both. adam, we introduced you. but we didn't ask you anything but we are glad you were with us anyway.

>> my pleasure. >> adam made the best point earlier about what is going on in europe. i'm glad we got a little about the g8. we have about 45 minutes until the closing bell sounds. up about 113 on the dow industrial right now. >> bob will join us shortly and more market comments. in the meantime, do you not touch that dial. you will not believe what we have coming up in the "closing bell" pl watch. >> will j.p. morgan's trading loss prompt more calls for financial regulation? ? top executive at barclays weighs in. plus, facebook continues to fizzle as people continue to defriend the stock. do you think facebook's big drop today opens up a good buying opportunity? tweet us your answers@cnbcclosingbell. your responses later on in the show. [ male announcer ] introducing a powerful weapon

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market higher across the

board here. one stock failing to participate and that's facebook. stocks heavily traded and under pressure today on the heels of that ipo. down 10% on facebook now at 3440 a share. company stock a flop. criticize towards the nasdaq today. take a listen to thomas joyce. >> it was nasdaq's failure. this is arguably the worse performance by an exchange on an ipo, ever. >> which, bob, felt has acknowledged anyway. in that big conference, spoke with you last night, and he was humbly embarrassed about what happened. >> and they are. >> changing the system for what they use for opening and closing ipos now. >> is as in nasdaq to blame for this turn? and lee believes the stock was

doomed to begin with. and lee, you feel it was overpriced. and you know, no matter what happened with the technology, you wouldn't have bought this stock anyway, right? >> i don't think so. remember what was happening on friday. we had 12 down days out of the last 13. haven't seen that since october 1974. mark z and the funky bunch wants our millions of dollars but don't have an idea of how to make money off of mobile apps. but they want it flip it and rip it. it failed to get the stock higher, fundamentally. >> we should recognize that facebook raised $16 billion in a tough take. so, yeah, it was a flop. and i'm still getting e-mails from viewers tell meg that they still haven't gotten their confirmations. but you got to also, you know, that you look at this firm and say they were able to raise $16 billion in the market that has a take that's down 12 out of 13 sessions for the dow industrials and all these concerns about europe as well.

isn't that right, darryl? >> exactly. on one level this is a very successful ipo. the issue here is really with the nasdaq. they didn't have the ability to manage this process. when an ipo starts tra start trs about sentiment. there is no positive sentiment around the new issue, so people that are in it for the short term, just get out of way because there is no transparency. that's what nasdaq traded here, lack of transparency for the trading community. >> but i think it is an excuse that this is nasdaq's fault. facebook had the chance to be air apparent to take over the golden apple rally. golds lost luster. apple is maturing and facebook add the opportunity, yes, maria, to raise 16 billion. but there was big. because we didn't see that pop, don't tell me the nasdaq is getting late confirms. >> what about morgan stanley? what about increasing the size and pricing of the deal? >> i think it was a combination

of both morgan stanley and nasdaq. at the end of the day, there is no debating. this is a successful ipo for the company. they raised it at a great valuation and unfortunately there is no transparency so short term traders just sort of walked away. >> i think people -- >> let's bring bob in here -- bob? go ahead, bob. >> two separate issues. here at nyse, a minute before the ipo starts trading, they close the book -- >> yeah but they do that -- >> no -- >> well they don't do that on ipos. >> right. they are changing that. there was a process problem that happened. that is different as to whether or not the stock is fairly valued. i think they did a great job, morgan stanley, pricing the stock. it ended at $38 on friday. if it opened at 55 and closed at 38, everyone would have said,

the mom and pop really got hosed on the deal. >> yeah, but it didn't. >> daryl, don't you think, one of the things they are blaming this on is the overwhelming number of order cancellations that came in at last second as the book was being closed or wasn't being closed at the right time. do you believe though -- you are putting the blame on nasdaq. but if we had seen overwhelming number of buy order without the cancellations that we would still be talking about this today? >> i think there are two things. nasdaq with the issue in early trading and other issue is the underwriters, if the people that wanted to buy the stock didn't have the transparency and what they are coming in at the last minute was canceling orders because they didn't know where they would get filmed, then there is something to be said about underwriters there. they create a situation where there is a lack of transparency and volatility and short term trading and no support for this new issue. the flip side to that though, is facebook still has a great

valuation. still raising a lot of money and on some level i'm sure they are happy in facebook land right now. they did their job in this ipo. >> oh, i'm sure they're happy somewhere. >> mark zuckerberg got married. >> exactly. >> lee, is there a price would you buy facebook? >> if there was some idea of how they would make money, especially in mobile app arena and see where the cards fall as far as what people think it is valued, i don't see this buying this for another 30 wsh 60, 90 days. but to say i would buy at 25 or 30 or 40, i think it is ridiculous. i don't think this is successful. i think the nasdaq is a completely separate issue. but i think investors got to look at this as this did not work. the only thing that happened here is 16 billion. that was successful. into the hands of the people in silicon valley. it doesn't help investors. what did google do with almost 2 billion that they raised? went to the bank. >> no official comment from the new york stock exchange but we

know they have been high-fiving around here today. >> yeah. they aren't going to say anything officially. you can bet this is incorporated into presentations on ipos. if there is an adult here who makes decisions, i'm not sure whether in the long run it'll make a big deal, but for the moment i don't think they need to say anything. >> all right, classy there. gentlemen, thank you. bob will be checking back with you. see you later. heading towards the close. getting stronger here. dow is up 128 points. but the nasdaq even stronger with 76-point gain right now. >> wow. >> maybe a bounce from this six-day losing streak we've been on here. >> big move here. >> we will check retail. is best buy one of the best buys in the market? stock and company a mess. earnings out tomorrow. is this a buying opportunity? we'll check on best buy. >> speaking of beaten down stocks. retail investors getting burned by facebook ipos. will this make them more gun shy about getting back into the market? well look that coming up. >> below the issue price, is this an opportunity to buy

facebook here or is the valuation still excessive? tweet us and we will read some of the best responses later on in the program. so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates.

welcome back. looks like facebook may close below the ipo price. take a look at where we are right here. you will see it is at 3432 here. about 30 minutes or so before the closing on wall street. bill, a tough day for facebook. this will be a critical week as things settle out after that big

ipo. >> i'm with you. we will get past this even see if the company can grow from here. we have a bigger mess than facebook. best buy hitting three-year low this morning. they report earnings tomorrow. they announce they have hired a firm to help them find a new ceo and leadership going forward and three-year low. is it a buying opportunity at this price? let's talk about that in talking numbers today with carter worth of oppenheimer and on the fundamental side, gene munster mp. what did you think, gene? we often compare best buy to amazon. is that a fair gain, that one benefits when the other declines. >> we do the math. it looks like it is picking up on the $50 billion a year best buy number. just to put that in perspective. that not best buy's only problem. peter keith who covers best buy for us, is most worried about

the management issue. >> you wouldn't buy best buy? >> i don't cover it. i wouldn't buy it. but i don't cover it, but i wouldn't buy it. >> i understand. would you buy it? >> no, sir. the word you use, it's a mess. a good rile of thumb, if you are in an established down trend, stay away. drops and gaps are ominous. those are earnings misses, over and over and over. in terms of the channel the last two years, at the top or bottom, throw back the other way. to make it back toward the bottom of the channel and that applies meaningful lower prices. it is gambling buying stock like this. i wouldn't do it. >> it's gambling. we'll see. numbers are out tomorrow morning? we will see what that does for the stock and whether it sets the tone for date. maria? >> in the final stretch. we have 30 minutes until the final bell for the day. dow jones up 130 points here np next up, barclay's. i will talk to ceo of corporate and investment banking next.

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let's take a look at the markets here. that's a live picture of the board here at nyse. dow up 120 points. offsetting that is the big sell off in shares of facebook. stock trading down better than 10% here. $34.25 a share. i don't know, it would be a miracle if the stock traded up to the ipo price to the close here. we are looking at the deal, breaking issue prices today and closing that way. the market, powered today with money moving into equities across the board elsewhere. bill, over to you. >> as a matter of fact, maria, last week was the first week of the year to the mark, today so far the best day of the year for the nasdaq composite index. so a bounce, that's how the market works here. but as you mentioned, it is happening without facebook and seema mody is joining us. seema? >> at 3428, a black eye for many

involved in the social networking sites public offering while the nasdaq is saying it is not responsible for the sharp decline in shares of facebook. trading error certainly causing confusion on wall street. that pushed some reluctant investors to the sidelines. traders i spoke to say most of their big clients are saying hit the sell button, let the drama calm down, we will buy in once things stabilize. facebook remains the most akive stock on the nasdaq, 143 million shares of facebook traded today. back to you. >> seema, i'll take it. thank you so much. meanwhile, trading higher in the trading session, the uk lender is sillingity stake in black rock. barclay's is said to use it to offset the regulatory changes. better than 3% now. barclay's keeps fighting for return. return on equities for 6.6 percent. short of the banks 2013 goal of 13%. joining me now to talk more about that is barclays co-ceo of

corporate inestment banking. jerry, always nice to have you on the program. >> nice to be here. >> let me begin first off on the facebook deal. what kind of participation did you have and did you see the issues that we saw across wall street? a lot of customers still complaining they haven't gotten confirmations. >> well, i think you separate from of the operational issues from, you know, the actual performance itself. we were one of the book runners so there is a lipitied am we talk about specifically around the deal. but the important thing is to understand that this is really a unique situation, as an ipo. i mean, unprecedented participation by investors in the primary market. stock came out with a very, very large valuation. so i mean, unleakly, you will ever see the pop that people were talking about. equally, i don't think we should take the price performance since then as a sign that the ipo market suddenly is going to be shot. this really is a unique situation.

>> what are you seeing in terms of your backlog, in terms of deal flow, whether on the ipo side or what do you say, what you are expecting the rest of the year? >> backlogs remain very healthy. from my perspective, we've never add health year pipeline of activity. i think, given what we see in credit markets, the fact that you have verivilleable credit conditions, very favorable rock bottom rates. should be constructive for bio activity, expect to see an increase in that activity. as far as equity capital markets, we can see stability coming back into stocks and we would expect to be quite busy with issuance. >> i was surprised, actually, to see not as strong private equity deal flow recently. given the level of rates. you would think with rates at these levels, you would see more action in terms of private

equity. >> right. and valuations, you could argue are maybe not cheap but not overly expensive either. i think you will start to see more activity and i think the sweet spot will be somewhere between sort of you know, the 5 to 10 billion dollar range. i don't think this is an environment for large mega deals but you will see more things happen. >> so barclays selling the 6.1 million blackrock investment. what is behind it and what are you planning to do with that money? >> well, as you know, in january, a new capital regime takes hold. where the holdings of financial services companies become much, much more capital intensive. so from our perspective, we just wanted to take advantage of the opportunity to sell the stake, to free up the capital and to reinvest the capital in our business. >> once this deal is complete, are you still in capital raising mode? >> no. i think what we would say is, we

look at environment right now, and we're very focused on returns. but we recognize that there are head wince. we do have new regulation and new capital rules coming into play. so we would want to stay very well capitalized through this period and maintain very high liquidity ratios as well. >> a number of the european banks, whether in spain or italy and certainly in greece, are reporting a lot of problems with, i don't want to say a run on the bank but it certainly feels that way. on friday, you saw $316 million taken out of deposit money. what are you seeing in terms of investors, depositors, taking money out of the bank? >> well certainly, we're in a completely different situation than, you know, where some of the continental markets might be. i think we're not at the stage where you know, one should be nervous about runs, or potential runs in some of the southern european institutions. clearly there is a lot of

uncertainty and unease going into the greek election and i think that uncertainty will remain until you know, we see the results of that election and i think it is important for authorities to be sending, sort of soothing messages to the marketplace right now. that they will be prepared with any potential remedy, should the situation worsen. >> so looking at europe, which of course we know is an issue and i wonder what you think, if greece were to leave the euro, is that a big deal or does it open up a can of worms for others and then you have the regulatory issues and changing happen. these are two head winds or sort of challenges, on the horizon. how are you dealing with that? you have to operate your business regardless of what is going on and these are two major issues. >> that's right. and we have to lookev

eventualities. ultimately the greeks will need to decide, you know, on their own and this is a democratic process. i personally think that this will likely continue, sort of with the status close we couquo europeans are looking to get out. it would be far less of an impact as t was 18 months or two years ago. and certainly the way that the firewalls have been erected, i think it is a much greater chance that europe could handle a withdraw. i think at this stage they don't want to have to go through that. as far as regulation goes, i think clearly we're moving on to the point where there is a recognition of the importance of the understanding to need to resolve big institutions, a lot of the dialogue with regulators

shifted towards resolution recovery planning led by the efforts of paul tucker, deputy governor, bank of england, all moving in the right direction but clearly still a lot of work to do. >> and final question here, when you look at just what went on with j.p. morgan, we are trying to figure out what the total number is in terms of the losses. do you believe that that is going to be sort of one more reason that we will see volcker rule get implemented? >> it is a good question. it is not obvious that volcker would or would not be the right remedy. i think that the -- what's happened is the suddenly the regulatory agenda has been repoliticized again, if you will. hopefully we can move beyond that and get to the substantive issues. of, you know, coming up with a proper regime for dealing with large banks, for understanding the impact on, you know, central clearing and some of these other things. without feeling the need to kind

of, you know, go back to the drawing board and come up with new rules to deal with this specific situation that's just happened. >> jerry, good to have you on the problem. thank you so much. we appreciate your time. jerry dell missier joining us. 20 minutes until the bell sounds for the day. gain of 120 point for the dow. if individuals did not trust the stock market before, what about now? after the messy beginning ever facebook. was the real loser in this deal the long time participation rate in equities? then, they were against it before they were for it. a change of heart for key republicans in an election year, means more on wall street. >> first, before break, the dit dividend. which stock is outperforming this year? the dividend pays off, after the break. ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪

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>> now we're going to start counting lossors gains. mark zuckerberg may have lost about $2 million with the stock decline in facebook but is the overall stock market the loser in this facebook mess? >> the question is, did the individual investors become more jaded and weary of this market? let's get reaction from the panel. two cnbc contributors. rich bernstein and dan greenhouse. what do you think? not all index fingers on what happened. is the individual investors who may have been weary of this market anyway be more weary because of what happened. >> i think this is weird. we know there have been major outflows in the last six to 12 months. so individual investors said we won't invest in the stock market but yet they are willing to invest in one stock, facebook, that they think they found the answer to their investing needs. >> and look what happened. >> look what happened. this seems weird to me. we have seen this time and time again where investors chase the hot thing and they get burned,

and i think this just happened again. >> i guess the user base is wanting to get into the deal. and the user base is an enormous user base of individuals. >> it is. unfortunately, those individuals don't think about the valuation of the assets. you know, i think people too often think that buying stocks is like entering a horse race or something. but its ownership in a company, valuation of the assets and everything else that one should consider. >> go ahead. what what do you think dan greenhouse. are we on track or missing something? >> i kind of agree. but also off the top of my head don't want it leave the institutions out of this. let's be clear, it's the institutions that drove the price higher on the ipo. i think there was a lot of obviously hype surrounding the name. initiating over facebook and neutral and i think at 38, 40, $42, we're not really sure there was too much value there. so i think everybody that sort of bought into the hype is to blame to some degree.

>> let me ask you this, at $34, dan, are you a seller of facebook? >> well -- >> at 34, which is where it is right here. >> our position is that there was much more compelling value in the low 30s. somewhere around 31, 32. and i think when it starts getting back down to that level, it is worth taking a look at, depending on your risk tolerance. but up where it was, this is, at least to us, this is a questionable invefrtment. >> thank you, both. see you later. rich, see you later on the countdown. we have about 15 minutes. the dow is up 123 point. nasdaq even stronger percentage wise. >> where did it go wrong? maybe the question is, where, if anywhere, did it go right? we will look at the two trading days of facebook and when you see it put together, you're going to be fascinated. >> this is a compelling story. and the question is, do you think facebook's big decline today present a good buying opportunity to buy the stock right now? tweet us your thoughts.

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facebook stock set to close below the $38 price tonight.

>> as you are about to see here, nothing has gone quite as expected for this stock's short life. watch. >> after years of people taking risks, dealing with uncertainties, unknowns, rivals and this is the pay off. opening bell, mark zuckerberg and facebook. >> you can expect the first trade at 11:30 a.m. eastern time. it has past that mark so far. >> an indication of their own track. >> coming up, look. $40 mark was a real important line in the sand for whether markets stacked up. we have lost 40 and plunged to 39. >> just 38 and change. >> particularly in that fall from about $40 to $38 level. nasdaq system was --

>> getting rid of the stock in this final hour before close today. >> a lf institutions have not been able to get orders confirmed. these are orders placed early on this the session. as these start to be filled, you got to wonder what impact of this is as it approaches once again, the $38 mark. some of the investors who bought the ipo want it get out by the end of the day today. we are talking about facebook right at 11 cents. >> watching this thing open around 11:30, maria, i don't think anybody would have anticipated .5%. >> this is an avalanche. >> yeah. >> feels a little bit like k2. >> they handled it perfectly. this is not the first ipo who has ever come down the pike. they alunderstand the process. the problem is nasdaq. >> if they would have placed it more like where it is here, $34,

i think would you have seen the pop that many of us were looking for. >> morgan stanley's exposure in this situation, is not only reputational but also with client's health. >> it is fade book. facebook not feeling the love from wall street. but the rest of the technology sector is. >> we knew it was going to be an historic day, we just didn't the kind of historic day we were expecting. >> for sure. volume there, seeing another historic day of volume but again, people are sort of frustrated with what happened the last 48 hours. >> let's get this behind us and see if they can grow it company and see what happens with the stock after that. all right, we will get it all behind us and come back with a closing countdown. >> after the bell, j.p. morgan's trading loss. you may be spriersed it find out who is leading a charge for more regulation. you're watching the "closing bell" on cnbc. first in business worldwide.

inside the five minute mark here. here is what the mark set doing as we head towards the close.

dow up 134 point. this will be one of the best days of the year. ironically, after last week's declines made it the worst week of the year. and it's doing it all without facebook. facebook, as they would say on wall street, breaking its syndicate today. the bid came out at $38 and it is now around $34 at close, around 33 at the close. a classic risk on day though for this market. can you thank china. thank the g8, pick your bogey. or maybe just a bounce off the worst time of the year. the sector that performed the best today, materials, technology. industrials at the bottom of the list where the utility stock. this is very much a classic risk on day. the nasdaq, the best performance of the year today for the nasdaq composite index and you can credit app toll some great degree. very interesting watching apple

go lower the week before the facebook ipo and as facebook goes lower apple comes back today. crude royal another risk on trade up 1.7% today to 93.5 and china saying they want to grow their country by growing