nswers. okay. here are street poll results. 38% of you think the individual investor is having the worst month ever. jamie dimon coming in second with 21%. >> we hope you're having a great month, "street signs" viewers. >> thanks for watching. see you same time tomorrow. hi, everybody, into the final stretch. welcome to "the closing bell." i'm maria bartiromo at the new york stock exchange. markets are up, facebook down again, bill. >> again, no love. i'm bill griffeth. down 6%, 7% right now on facebook. maria said, stocks are higher as a whole thanks to an upbeat report on the housing market, thank you, that came out this morning. financials rallying led by a 5%

gain in shares of jpmorgan chase though the committee has taken aim at the multibillion dollar trading loss holding a hearing all day today. here's what the trading has looked like today. dow up 50 points now at 12,554. the nasdaq, yesterday's huge leader led higher by apple, today a lagger. up just a fraction, a four-point gain at 2,851. the s&p 500 up half a percent at 1,322. >> facebook's downward spiral, continuing with shares down another 5% today. very heavy volume. facebook shares are now down about 20% from the company's ipo price of $38 a share. facebook taking more heat today. this time on reports that an analyst at facebook's lead underwriter, morgan stanley, unexpectedly cut his revenue expectations ahead of the ipo, after the company issued an amended prospectus. now the question is, who did he tell, who knew, and when did they know it, bill?

>> exactly. that is a very big question we want to get into. all of this involving facebook, is highly unusual, prompting many to ask, what did morgan stanley and the insiders know and when did they know it? that they still priced on the high end? they distributed more shares even as expectations about revenue growth were coming down, more shares at a higher price were going out to the public. >> the other question out there, this was sort of circulating trading desks right now, who did they tell? and what did they tell them? in terms of their own client base. we're going to get into that in "the closing bell" exchange. bob pisani, scott walker, rick santelli and desktop president francis gaskins and chief investment officer michael malaney. michael, let me kick this off with you. what do we know in terms of what morgan stanley did in terms of the estimate cuts and who they told? did this disseminate that information to their best

clients? >> it wasn't to us. i assume we're not their best client. the only thing we had seen beforehand were partners that cut their estimates for 2012 and 2013. >> and what do you think the implications of all of this are? i mean, cutting the estimates, you know, ahead of the ipo, after the company amended the prospectus. >> especially when they were the lead underwriter. >> of course. >> they were the ones leading the charge to sell the shares to the public. >> so, michael, what's your take on that? i mean, what kind of implications are we talking about? >> not good. it's blackout period. so they're going to be obviously breaking laws if they have actually released that information beforehand to the public, per se. the whole -- >> francis -- >> or just a specific sort of couple of clients. >> francis, didn't they change the rules on the quiet period, though, with the jobs act? >> well, right. obama signed that april 5th, and that lifted the analyst -- the

25-day deal. but that was for a company that had $1 billion in revenue and less. it did not exempt facebook. >> so what do you make? you follow ipos all the time. a lot of very unusual circumstances and events took place in and around this ipo, didn't they? >> absolutely. i don't really want to get into the blame game. other people can do that. i've been thinking about it. from the 30,000 foot viewpoint, who a cur occurs to me is they know what's happening in their business. if they did -- on the one hand, say zuckerberg -- i think he did the best job me could. he didn't know what he was doing in terms of estimates. on the other hand the investment bankers shouldn't be puppets and accept what they're fed and reprocess that. they should do more due diligence. they could have seen the range of possibilities. i mean, if this were already public and they said in the mid quarter, which is what it was, that they're going to lose -- they're going to miss their estimates, the stock would totally crash.

>> what a completely bungled deal. i mean, from the nasdaq problems at the open, to now morgan cutting the estimates before the ipo. scott, let's talk a bit about this in terms of what this is doing to the overall market. and obviously the retail investors, one component. it's more than that. >> a couple comments not only on the morgan stanley side of the story but the nasdaq side of the story. nasdaq would love for this story to go away. whether there's a long term hit for the nasdaq is a separate issue altogether. it's likely to be on the table for quite some time. the morgan stanley side of thing, number one, the analyst cut comes out and during the road show apparently cuts his estimates on facebook. that according to people i've talked to is incredibly rare for that to happen during a road show. is there anything wrong, unethic unethical? i'm not the one to answer that question. the second part, the bigger

story, is whether morgan stanley, and you guys alluded to it, selectively disclosed information that it wasn't supposed to know about in the first place. because remember, there is supposed to be this wall existing between the research side and investment banking side. >> that's a much bigger story. >> facebook did submit an amendment which they pointed out that a lot of the revenue was migrating to the mobile business. >> consider this. consider this as well, right? you've got morgan stanley, which has the smith barney unit, right? it cares deeply about the retail investor. the allotment to the retail side was increased. so here you have all of that happening at the same time where there are allegations being made that they selectively disclosed information to some of their clients, which is not only unethical, it may be illegal. >> it is illegal. of course it's illegal. >> now the they're investigating this now apparently or they may. >> bob, look what's going on

here, look how -- look at what this has evolved into. first it was nasdaq's fault, then it was morgan stanley's fault because they upped the shares. this morning we had a debate on whether it was high peak peak say players. everybody is blaming this tech analyst. everybody else took down their numbers after the amended one came out including jp morgan. we have a company here that doesn't make much money and nobody now knows how to value it. >> what do they do? value it at $100 billion and expand the size and pricing of this deal. >> maria, i don't think anybody is blaming -- i don't think we should blame the analyst. if anything it shows the system works. >> i'm not blaming the analyst. >> bob raises that issue. it shows the fact the system does work. research analyst obviously facing so much pressure to be positive on a stock that his bank is the lead underwriter on would still have the guts to come out and cut his estimates based on concerns about what was happening inside the company. >> which is his job, really.

>> j frkjp morgan cut their num >> i'm troubled by the idea certain clients knew this before other clients. that's what's troubling me. rick santelli, jump in here. >> rick, you of all people understand market psychology and the madness of crowds. this is a classic example they'll be studying at the harvard business school for years to come. >> and that's the problem. i don't think they need to study it very long. you know what, there's no law against greed. obviously the bankers are greedy. this stock traded for how many years in a private market? they tried to milk it, as maria said, for 100 times earnings. $31. even if they would have priced it $30 to $34, it would be underwater. hype and a lot of publicity isn't a market fundamental. i'm sure morgan stanley knew that. to me morgan stanley will probably get less ipo business. that's the way the greed factor works in the capital market. nasdaq didn't have a chance.

there's no way that that platform could have kept up, and high frequency trade, they t didn't have nearly enough input for their models to do as much trading to damage it as much as they're being blamed for. when you hook in retail, and they're not happy, retail is the customers of not only the ipo, but facebook in general, in an election year, they're going to dig and dig and dig until they find some scapegoat. one scapegoat i know isn't going to pony up, that's the exchange. the exchange shouldn't. 15 million i heard? that's 14 million more than i thought we'd get out of it. >> thank you. by the way, a strong tdemand fo the two year note. thank you very much, rick santelli. >> last check, facebook 31, 71, down 7% right now. let's get to brian shactman with breaking news. >> i'm keeping my eye on chipol chipolte.

cmj. i want to get this right, the u.s. attorney for the district of columbia is basically looking, an investigation into possible criminal securities law violations, it has a lot to do with the previously disclosed investigations by homeland security about verification requirements related to certain disclosures and statements. some of this is about immigration issues. it's very complicated. they were conducting an investigation into criminal security law violations relating to its employee work authorization verification compliance and related disclosures and statements. the stock was up 2.25%. it's pulling back right now. again, it's an investigation. they're in full compliance with. but that is according to an ak. >> thank you so much. we'll keep checking back. the dow jones industrial average up 35 points. the nasdaq composite actually also in the green, just barely, two points higher when facebook real ly one of the big stories n the session today. down. >> a lot of energy today. we're getting started on a jam

packed edition of "the closing bell." watch. >> is the euro zone heading for a recession in a top international economic organization thinks so. if you have sneezes will the u.s. economy catch a book, too? he said facebook was overvalued before it went public. how far will facebook to have fall before fame tech fund manager dan niles considers buying the stock? we'll ask him. >> i certainly respect whoever it is that owned the stock. they got the maximum amount for the stock. >> donald trump is applauding facebook and morgan stanley, for cashing in on the social media giant's ipo at the expense of retail investors. we want to know what you think. are retail investors the real losers in the facebook ipo mess? tweet us @cnbcclosingbell. your answers will be revealed later in the show. [ mechanical humming ]

[ 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.

45 minutes before the bell. the session, time for a quick market stat check. if you're just joining us

investors giving facebook continued thumbs down, second day running, 8% decline. some analysts say facebook's lack of cool on wall street could sideline potential advertisers. so right now it's down to $31, there a below offering price of $38. we're well off the session highs, the dow up 32 points, the sectors led higher by the financials including jpmorgan chase and "b" of "a," each up more than 3% so far today. maria? >> the market shaking off concerns about europe so far this week. for how long? look at this warning from an international economic growth known as the oecd sending out a red alert that all of europe risks falling into, quote, severe recession. if that happens, what happens here in the u.s.? >> talked to noted economists on that. insena says it won't be pretty. larry cantor of barclays believes it's no big deal for

the u.s., why, because they've been raising capital requirements? >> i wouldn't say no big deal. depends on what it means. >> i was quoting you. >> my view is europe has already been in recession. q4 and q1 and early second quarter data look better. i way i look at this, you had a credit crunch in the second half of last year, that is the thing that sent the euro into recession. the rotos alleviated that recession. we have a new worry, an exit by greece. if there was a disorderly exit by greece, that would be a very bad thing that would lead to massive capital flight. even credit markets freezing. that would have a very big impact on the u.s. if you think about it, europe's been in recession now for four, five months at least and the u.s. economy's held up pretty well. that's what i think it is. we're not -- exports are not as

big a thing for the united states as some other countries. u.s. is very competitive right now. there's an energy boom going on in the u.s. consumer spending's hanging in, et cetera, et cetera. i think the u.s. is holding up well, but if there was a disorderly exit, that would be another story. >> david, let me pose the same question to you. i mean, it seems every day, you know, when there's a problem in europe it reverberates around the world. any given day this could be a major problem for markets. are you worried? how worried you about europe? how much of a threat is that severe recession to the rest of the world? >> hi, maria, hi, bill. i'm very worried about europe. they've been going the wrong direction for a couple years and it puts us as risk. the reason it falls over on to us is because if you think about world gdp, $72 trillion right now, and if the euro, itself, begins to unravel, that hurts world gdp. for example, you could lose $2

trillion of world gdp if europe -- if there were quakes in the euro. so that's one problem, and that would hit u.s. corporate earnings. for example, the asia crisis, which had smaller countries involved. this was in 1998. caused negative growth and a shrinkage of u.s. corporate earnings. two other problems -- >> david, as much as the treasury says a strong dollar is in the best interest of the u.s. economy, don't you think this is their worst nightmare right now to have this crisis in europe which has served to give the dollar a floor undernooeath and power it higher? this is not good for businesses who do a lot of work overseas. >> if corporate earnings shrinks you're going to have the stock market down. it's not the worst nightmare, but it's a bad one. also, remember, europe's banks are four times bigger in terms of assets than the u.s. banks which is amazing for us to think

about because our gdp is bigger. but their banks have been allowed to leverage and to grow way bigger. so if there's a quake in the euro, there's unintended consequences under the whole world's financial system. >> real quick larry, how do you protect yourself? from the investment standpoint? i'm worried about europe, i have must be all over the world, what do i want to do here? >> one thing, you're talking about the unwinding of the euro area. what's the probability? i agree that would have massive consequence for the world economy and the u.s. but i don't think it's likely the euro is going to collapse here. the euro area, in the near term. in fact, i don't think that's going to happen long term. we may not have the same countries in there long term. i think they'll avoid that collapse. that's the first thing. in terms of positioning, maria what i'd say now, until the greek elections which are june 17th, it's very difficult to see sustained strong performance in the stock markets including the u.s. stock market. i just think that risk is going to be out there. i think the main reason why the

markets have done better in the last couple days, one, they took quite a hit last week, so it's just a bounce. the second thing is, there does seem to be some movement in the polls in greece toward a more pro-euro area stance. i think that's probably the good news. but i think it's going to be very dicey from that then. so i would put, pull back from stock market exposure, if you're a shorter term player. i think we will -- the likelihood is we will get through this. there will be some compromise where greece will have to stick with the austerity plan but maybe some aid from the eu to help promote some growth in greece is probably going to be the quid pro quo. >> got to go. you want to add to it, david, but we have to go at this point. i know you understand the time pressures of television. you can see both. thanks for joining us today. much more ahead on "closing bell." the dell dude is bumming now. the stock down 16% since mid-february. its earnings are coming out at the top of the hour. we'll have them for you first.

ahead of that, a look if a turnaround may be on the horizon for that company. >> i want to point out, bill, we're losing steam quickly going into the close. the dow industrials now up 16 points. nasdaq negative. then america racing toward the fiscal cliff. how can the united states' economy avoid what some are calling -- marty feldstein with us later on on "the closing bell." olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? when the doctor told me that i could smoke for the first week... i'm like...yeah, ok...

little did i know that one week later i wasn't smoking. [ male announcer ] along with support, chantix is proven to help people quit smoking. it reduces the urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop taking chantix and see your doctor right away as some can be life-threatening. if you have a history of heart or blood vessel problems, tell your doctor if you have new or worse symptoms. get medical help right away if you have symptoms of a heart attack. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. it helps to have people around you... they say, you're much bigger than this. and you are. [ male announcer ] ask your doctor if chantix is right for you. mine was earned off vietnam in 1968. over the south pacific in 1943.

i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.

okay. we head toward the close we get ready for dell's earnings out after the bell tonight. when they reported last quarter. since then, dell's shares are down 17%. what are you to do this time around? buy them ahead of time? wait until after? do you sell them? what do you do? that's our topic in talking numbers today. on the technical side, mark newton with gray wolf execution partners, and on the left side, mizzou hold securities. it's suffered. to you like it at this point? has it come down enough to warn a buy mark? >> i don't, bill. the stock has been a chronic underperformer the last few years and has not shown sufficient signs of any sort of strength, technical overweight. if you look at a longer term -- this marks the highs back from the last really 12 years. the stock peaked out at $6 o. constant pattern of higher highs, lower lows.

so recently you could argue the stock has been 17% since mid february, down near 15% might be somewhat important. it has to show a lot more signs of out-performance before you favor it. >> and a buy, it could be argued, dell's had to live in apple's world in all this time. do you like apple more than dell here, he asks, naively? >> yeah, no, we do like apple. we also like dell at these levels. the thing by looking at dell, yeah, i do, and the thing with dell is that looking at over the last 12 years or so, the market shifted. it moved from enterprises to consumers traveling pcs. dell did not keep up with that. they lost competitive edge, lost market share. they've done things over the last year or two which have changed the company's fundamental business processes. and those things should pay off over the next few quarters. that's what makes us excited about this stock. >> you would buy dell at these levels? >> yes. we would be buying dell at these

levels. we have a $20 price target on dell, and the reason is we think the fundamental supply chain improvements they've done to kind of match up with the competitive shift in the pc market is going to help them pay off. is going to help drive returns for them over the next few quarters. >> we'll see what they do when they report tonight. do you like apple, by the way, at these levels? >> i do. >> it's stalled a little bit here. >> yes. >> but hovering below $600. >> we've seen a little bit of a stalling out but no sign of any strong type of deterioration that would make you want to avoid the stock. here's the stock, since 2008, it's had a decent uptrend channel. we've not fallen to two months low that make us want to avoid the stock. it should push up to new highs. in the near term the stock moved up 10% in the last couple days or so. it's been a short-term area of technical resistance. my thinking is it's good to be long. my thinking is it to could sub to $700, even $750. that's a good technical target

for apple. >> new target for mark newton. thank you both for joining us. we'll have those numbers from dell right at the top of the hour when they report their earnings. maria in. >> bill, thank you so much. looks like we have 30 minutes before the closing bell sounds on the street. we have technology under pressure. the leadership on the upside. some strength in some of the banks. gold commodities under pressure right here. and the dow jones industrial average right now up about 13 points. the banking index plunged 5% since jp morgan's massive trading loss was announced. will the cloud hangs over the industry hold back the rest of the market? then medical despice maker medtronic lays people off and waits for the supreme court ruling on the president's health care plan. the stock is down. the ceo will join me. medtronic's ceo coming up. stay with us on "closing bell." tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like...

tdd# 1-800-345-2550 screener plus - i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones. tdd# 1-800-345-2550 and i can trade wherever i want, tdd# 1-800-345-2550 whenever i want. tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 open an account tdd# 1-800-345-2550 and trade up to 6 months tdd# 1-800-345-2550 commission-free. tdd# 1-800-345-2550 call 1-866-393-6174. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense.

welcome back. the facebook fallout continued today. the stock falling even further below its offering price of $38. now down 8-plus percent at 31.26. we're wondering whether facebook was brought up during has tanas annual share meeting today. >> you might think it was

brought up at the shareholder meeting today. in reality it wasn't, besides one slight mention when it was said the value proposition for listing on nasdaq has never been stronger. of course, it is less expensive for the initial listing fee on nasdaq. about a quarter of a million dollars versus half a million dollars. we expected there to be a question and answer session and there just wasn't. it was a 23 minute in and out meeting where they voted on five proposals on the proxy and that was it. i guess that shareholders who have concerns about the fallout from facebook will be contacting the company directly as far as we can tell. now, jeffreys ranks it a hold and likely to linger. we're not expecting this to end any time soon. this afternoon has been full of headlines about regulators potentially reviewing morgan stanley, you see facebook stock falling. that's also bringing shares of the nasdaq town down as well th they were in the green during

the shareholders meeting. >> didn't even bring it up. if it had been a successful ipo, that would have been the headline at the nasdaq shareholder meeting today. that's amazing. >> extraordinary. i mean, really, give any a break. this is all anybody is talking about. it really doesn't make a lot of sense. >> except at the shareholder meeting. >> i don't know who was advising him pr wise. >> enough on facebook for a little while. we have plenty of that. we'll talk more about it later. let's focus on the markets and another potential cloud looming over the equity markets. the banking sector. earlier today the senate banking committee began a series of hearings on wall street reform, implementing the new rules. there you see some of the testimony from cftc officials looking into the appropriateness and completeness of jp morgan's financial reporting. >> after jp morgan's $2 billion blunder put money centers on the radar, will financials hold back growth for the broader market? here to weigh in right now, s&p capital iq, david pearl from investme

investment partners and our own gary kaminsky. let me kick this off with you. let's talk about implications as a result of jp morgan's loss. the financials have been losing ground, consistently. to you think it's over or more to come? >> i think the financials are not going to be leading us back in recovery the way they normally do. their business model has been permanently impaired by new regulation. the jp morgan incident is going to make regulation worse. they're going to be like the utilities they were before glass steagall, going to make less money because they have more capital, less leverage. they can't charge consumers as much. trading is going to be very, very difficult for u.s. banks. it's jamie dimon's biggest issue. this is not a good environment for them. >> i know all that. we all know all that. the bottom line is, is the decline in market value appropriate? $30 billion in market value loss since a week and a half ago, last thursday when jp morgan made the announcement. is that the kind of declines we should expect going forward as

well? >> even after this decline, jp morgan's tangible book value is their price to book is higher than citibank and "b" of "a." they've all come down. jp morgan was the best of the lot and now they've been hurt. so i think the big thing for investors are there's no transparency. you don't know what's going to happen next. these banks don't meet or miss by a penny. they meet or miss by dollars every quarter. nobody knows. >> how do you guys at s&p i.q. rank the neutrals? >> a neutral on, but a buy on jp morgan. our feeling is in the past several days the company lost a third of its market value. we think as a result the market overreacted to its reporting. our belief is that with the banks themselves, the most recent quarter showed that loan growth was flat as compared with the up for the prior three quarters. net interest margin was resilient. also loan quality was improving. so in general, it was in an

upward trajectory and now certainly with increased regulations that can be a very expensive annoyance. >> gary, interestingly enough today even as they were hanging jp morgan's dirty laundry at the senate banking committee, it was very strong today. and the financials were the leading sector in the s&ps right now. so traders, i don't know, taking a very contrary stance on the financials today, huh? >> bill, you're talking about traders. i listened to what david sate sa said at the top of the segment. investors are worried about the issues he talked about. what are the right multiples to pay? what is the new business model? that's probably the most single most important thing. what is the new business model going to look like? here we are four years after the financial crisis. you know what? the answer to that question is still not known. >> wait a minute. we're talking about the smartest guy in the room, don't you agree? when we're talking about jamie dimon. he didn't get there yesterday. this is not his first crisis. >> bill, that reputation unfortunately for jamie dimon, as i apologized when i said it

on air several weeks ago, that reputation built up over ten years is not the reputation anymore. the same people that stuck behind jamie really going back to chicago and bank one, who said this was the best risk manager on the planet, that reputation's gone. and when you work to build something up like that, it doesn't come back. >> wow. >> thereby proving down is quicker as they say in the markets, right? >> yes, we've seen that -- i won't mention facebook here. i think we've seen that this week in that stock as well. >> you just did. >> david's point about a business model, david's point, let's not underestimate david's point about the business model. that unknown is the single biggest factor related to the financials when you ask anybody who's a long only money manager. >> thanks, guys. >> thanks, everybody. appreciate it. we're in the final stretch. 20 minutes before the closing bell sounds for the day. we have a market that is mixed. dow industrials down 16 points. well off after the best levels of the afternoon. sort of dropping, pretty consistently into the close, bill. >> yeah, what happened to the

buying there? up next, we're going to talk money and medicine with the ceo of medtronic. will increased regulation slow the pace of innovation and job address in the health care industry? >> stay with us after the bell. will the economy be pushed into serious recession if hundreds of billions of dollars in tax cuts expire as well as spending expires at the end of the year? marty feldstein with me explaining why washington is playing a very dangerous game of chicken. at the edge of a fiscal cliff. back in a moment. but first before we go to break the dividend. which stock has shot up the most so far this year? cheesecake factory, benihana or p.f. chang's? the dividend pays off after the break. [ male announcer ] whoa, megan landry alert. and she's looking directly at your new lumia,

thank you at&t. first, why don't you show her the curved edge... now move on to the slick navigation tiles -- bam, right into the people hub. see megan, colin has lots of friends. hey, colin, what kind of phone is that? whaaa -- oh megan -- when did you get here? [ clears throat ] ohh yea no, let's... [ male announcer ] introducing the beautifully different nokia lumia 900. only from at&t. rethink possible.

[ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. in your fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max.

just before the break as part of the dividend we asked which stock shot up the most so far this year? benihana, cheesecake factory, or p.f. chang's? now the payoff. p.f. chang's which surged to date. we're watching this market go lower here. this is an example of how skittish the markets are about

the situation in europe. wire reports are just now quoting former greek prime minister george popadimas saying one time greece considered exiting the eurozone. the euro has gone sharply lower against the dollar, now down a percent. below $1.27 now. that's taken our markets lower. we had a 50 point gain on the air at 3:00 and now we're down 23 points. >> the fact he is telling dow jones, preparation for a greek exit from the eurozone are being considered, right there it's opening up a can of worms. if greece leaves the euro, what about portugal, what about spain, what about italy? it unnerved the currency markets and taken the stock market town with us. they are clearly looking at preparations. >> as larry cantor of barclays told us a while ago, in a disorderly exit of greece from the euro zone would be catastrophe for the markets. if you have an orderly exit,

that's a little better. we'll see if they can figure that out. that's been discussed right now and taking the markets lower. >> as bill told you, up 50 to now down 26. shares of medtronic today under pressure as well down nearly 2% for the day. despite the company posting earnings that were up 28% for the fourth quarter, the forth quarter for medtronic. revenue up a little better than 3% on fewer charges. both still beating expectations. the company's key heart and spinal device products continue to see declines leading the world's largest device maker to cut 1,000 job in these businesses. so the uncertainty along with the pending supreme court decision which will decide the fate of the health care reform is weighing on the company. let's get into it with the company's ceo here to talk about it medtronic ceo omar ishrak joining us for a first on cnbc sbrir. good to have you on the program. thanks very much for joining us. >> thank you. >> let me ask you first about jobs. are you expecting to report more layoffs or are you done? >> no, at this stage, you know,

what we've reported is what we have, but let me make that clear. we're, in fact, reallocating resources so net/net, in fact, we're adding jobs over the next year into our company. some of that is outside the u.s., but even the u.s., overall, will actually be adding a couple hundred jobs. >> so where are the jobs, specifically? are these high-end jobs? how would you characterize the jobs that you're adding right now? >> yeah, they're mostly in businesses that are growing, and they're engineers, clinical specialists, some commercial people in, you know, in a vascular business which is growing, our surgical technologies business. and the businesses under pressure, you know, we'll have to reallocate resources from there. >> where is the pressure specifically, sir? in 2013 the entire industry is facing an excise tax of 2.3% on all u.s. sales regardless of whether the health care law stays in tact. how do you offset that? tole us where the challenges remain in your business.

>> well, you know, you're right. those are headwinds we have to deal with. we have a number of initiatives. you know, first we're driving our innovation to make sure that we create clinical value and economic value in everything we do. so we're trying to orient our offerings toward the realistic outlook on the marketplace today. we're also driving a very disciplined program around cost reduction of our product lines. and that's meeting with some success. we delivered 25% cost reduction in the last five years and we expect to repeat that in the next five years and in fact that's our baseline. we expect to improve on that. so those are some ways in which we're going to offset some of the pressures that come our way. >> i want to get to some of the opportunity in the emerging markets. i know it's been almost a year since you took the helm at medtronic and your emerging market strategy certainly was very important. before i get to that, let me get your take on the supreme court decision which we'll probably get in the next couple weeks or so. we're expected to find out in

june. how do you think the supreme court rules in terms of the legislation on health care? >> well, a number of things. first of all, a basic thing to point out is that we have to operate in markets all around the world. every country has a different health care system. we have to work on strategies that work in different kinds of health care environments to improve the standards of care and health care, reduce cost in health care and improve access. as long as we are focused on the strategies, it really is quite independent of the specifics of the health care law in the united states. now, having said that, i think, you know, what is happening in the united states is that there is a greater integration within providers and payers. that's going to happen irrespective of the supreme court ruling or whatever happens to the specifics of health care reform. >> i understand, but to you think they're going to rule it down or not? what's your gut? >> i really don't -- i don't really have an opinion on that. we're focused on our own strategies, and that's what's important to us. >> in terms of that strategy on the emerging markets, given the

slowdown that we've seen on global markets, is that still the best opportunity for medtronic, the emerging markets? are you still expecting that that's going to be powerful in terms of profitability? >> oh, yes. in all those cases the answer is yes. the emerging markets are still strong. we grew at 20% in the last quarter, across all emerging markets and some key markets like china and india, we grew faster than that. we expect the strength to continue, primarily because the products that we already have and that are well accepted technologies by people who can afford them are still highly underpenetrated in those markets. we see those as independent opportunities, some variations in the economies in those countries. by in large the opportunity that presents itself is absolute and very large and we feel will be sustained. >> all right. we'll leave it there. good to have you on the program. thanks so much. >> thank you enter see y. we stabilized.

15 minutes to go. the dow down 28 points with word out of europe that maybe greece has been making preparations very quietly about leaving the euro. we'll keep an eye on that story. whface book, plunged, $31 a change. versus $38. donald trump said he should be applauded, for the facebook prize. >> people ought to be respected. you want to get the most. >> we'll get the full trump text next. >> yes, we will. plus we want your take on that issue. do you believe retail investors are the real losers from the facebook ipo mess? tweet us your thoughts @cnbcclosing bell. we'll get to your responses coming up. stay tuned. in the latino community the word that we use is jubilation. as you're getting older, you should be able to do the things that you love.

are you prepared for your retirement years -rge. 25 or more of them? do you have a financial plan for you family that works, in good times and in bad times? having the right perspective can help you answer the big questions.

for more than 140 years, pacific life has helped find answers for those navigating the path to financial security. ask a financial professional about pacific life - the power to help you succeed.

look at the crowds, bill. >> happens every day before the closing bell is rung. we get crowds around. here at the new york stock exchange. look who's ringing the closing bell today. >> ge capital, ge capital group around the post here. post nine. because they are celebrating 120 years of listing at the new york stock exchange. >> ge is the only remaining

original member of the dow jones industrial average that still trades. >> it's true. what a crowd. we have a market under pressure. we told you the reason earlier. we have news the former prime minister of greece told dow jones today the preparations for a greek exit from the eurozone are being considered. with that comment, you had a complete disruption in the euro/dollar index and as a result this market has taken a hit to the tune of 100 points. we were up 50 points. now we're down 50 points on the dow industrials. >> the euro to your point has fallen below $1.27 now. taking to heart words from former prime minister george popatemas. >> and right now we have the market really the financials were among the stronger parts of this market earlier, but even there we're seeing money come out. for the most part it's really been technology, bill, under pressure. >> exactly. >> of course among the many criticisms of the facebook deal is the stock was simply priced too high, at $38 a share. $100 billion valuation. the market seems to be backing that up today and this week. >> but don't count donald trump among the critics of that deal.

he applauds anyone who gets the highest price possible. listen. >> well, i think, you know, frankly, people have to be respective of that. you want to get the most. i mean, i always feel the opposite when somebody, you know, when something doubles and triples and you feel like a jerk. so i actually do. i certainly respect whoever it is that owned the stock. they got the maximum amount for the stock. i was going to buy immediately upon execution. so you could call it bad intention or looking at the charge. i'm not a huge -- i think facebook it amazing. when you look at the billions and billions you are talking about, i don't see it. >> you wonder how many people actually read the filings ahead of time where facebook was revealing a decline in revenue. or at least a slowing of revenue growth because of the migration to mobile devices where they don't have a foothold right now. and that was why morgan stanley's analyst group was reportedly lowering its forecast for the company. >> yeah, it's very simple.

the mobile device has a smaller screen and tougher to get advertising on the mobile device versus your pc. it's harder to monetize. you know, bill, i believe in markets. and i think that markets -- >> amen. >> -- ultimately tell the truth of where a stock ought to be. i mean, you know, there's so much hype around this deal. the end of the day, markets work. that's who we're seeing. this is deal that was overhyped, priced way too high. >> if you were paying pennsylvania to tattention to the filings you wouldn't have gotten in. >> you have jp morgan under fire, nasdaq under fire, we'll see who is impacted the most. i think there's going to be a lot of blame to go around. >> from the nasdaq to morgan stanley, black eyes in the wake of the ipo mess. are retail investors the real losers? give us your thoughts. we want your thoughts on this conversation. tweet us @cnbcclosingbell. we'll get responses coming up

later in the next hour. meantime, we're coming back with the closing countdown for this tuesday. >> seven month minutes away from the closing bell. after the bell, are facebook shares looking attractive to famed investor niles? he was negative on the deal going in. is he still shying away from the stock? we'll talk to him in the next hour of closing bell. always an astute investor dan niles. you'll watching "the closing bell" on cnbc first in business worldwide. with every door direct mail from the postal service, you'll find the customers that matter most: the ones in your neighborhood. print it yourself or find a local partner. and postage is under 15 cents. i wish i would have known that cause i really don't think i chose the best location. it's not so bad... i mean you got a deal... right? [ bird cries ] go online to reach every home, every address, every time with every door direct mail.

does any mother ever feel like their kids are adults? i have twins, 21 years old. each kid has their own path. they grow up, and they're out having their life. i really started to talk to them about the things that are important that they have to take ownership over. my name's colleen stiles, and my kids and i did our wills on legalzoom. [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com, we put the law on your side.

like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

okay. coming up at the three minute mark. late developments here. pushing the markets lower. with former greek prime minister telling dow jones that movements to take greece out of the eurozone have been considers, perhaps are still being considered. and this was the swift market response. the euro falling below $1.27. there now at $1.26. down 1%. it's all right in the last few minutes here after word got out. that took our markets lower as well. our markets follow the euro in many cases, so a 50-point gain on the dow became a 50-point decline. we're off that right now.

the tdow industrials seeing buying. i want to see what the ten year yield is doing. it's moved up a little bit. still at 1.77%. good support for the currencies, for the dollar and for the safe haven trade in the treasuries. let me talk to our traders, matt chezlock, it's clear our markets are paying close attention to what's going on in europe. >> we forgot about it for a while and facebook and all going on there. europe is taking the lead again. textbook lead earlier in the day. they took us lower. the dow caught up a little bit. that was good reason for it to sell off. >> if the dollar continues higher, that's going to hurt multinationals. perhaps even like a ge which is ringing the closing bell today. how do you view those guys if this continues? >> i think the dollar is up near resistance. our belief is it's going to have a hard time breaking above this specific level. it was a well timed, well placed statement by the greeks ahead of tomorrow's meeting.

>> do you -- i asked peter this question yesterday. you paying more attention to what's going on over there or we had good housing numbers out today. housing market clearly is seeing some recovery right here. >> yeah, you know, but it's based off '07 numbers. so while it's good, it's not great. it hasn't -- i'm not a buyer of it yet. >> skeptical about our market? >> i love the u.s. market honestly. i'm skeptical in housing. i'm not sure what europe is bringing. >> certainly we're getting a bounce in the home building stocks, new home sales tomorrow. durable orders thursday. and consumer sentiment on friday. so from the u.s., good numbers, so i think all of the ears are trained on europe. >> all right. gentlemen, thank you as always. matt, sam. as we go out here, we are getting a real bid on this market. we had a 50-point gain when maria and i began the closing bell at 3:00 eastern. then this 50-point decline. word out of greece. now it looks like we're going to finish