it suffered from facebook's ipo on the issue. carolyn is in zurich with more on the story. it on the facebook side, carolyn. what action are they taking against nasdaq? >> reporter: well, this morning they said in the press release they're taking all necessary and appropriate legal action against nasdaq for, quote, gross mishandling of the facebook ipo. so $350 million, that's the loss relating to the facebook ipo. remember that ubs was one of the major market makers. the ceo just said on the conference call, this was a stupid action. he calls it stupidity. coming back to the numbers, which were far worse than expected, the net profit was 56% below expectations according to barclays. a couple of reasons for that. first of all, the sharply lower trading revenues in the second quarter. because, of course, the weak trading environment and secondly we had that facebook ipo loss. in terms of the outlook that ubs gave us for the third quarter of this year, well, that was weak. very, very weak. it talks about concerns of global growth and the udz fiscal cliff and the euro zone debt

the loss was the result of what happened with facebook on ipo day. then you already knew that. the story maria bartiromo broke more than a month ago, remember? >> we have breaking news now on facebook, maria bartiromo is here with the story. >> cnbc learned that ubs has a big problem with facebook. they are sitting on losses as high as $350 million. the firm is preparing league action against nasdaq as a result of these actions. it has to do with the failure to get confirmations and executions from that facebook trade. >> that's what we call, in the trade, nailing the story. good job, maria. she'll be checking in with more on that story. is this stock being unfairly punished as a result of this announcement and whatever legal action may come after this. joining me today is mark newton, the chief technical analyst, and erin davis, erin, what do you think, is the market overreacting? what is the outlook for ups right now. >> thank you, bill, do i think the loss is a big embarrassment for ubs. while ubs is right to point out that it's due to nasdaq's operational failures, we didn'

in new fallout for facebook's ipo. the huge lawsuit against the social media website >>> the controversial photo now in the spotlight >>> facing pressures from the federal government, to more,,,,, >>> the two closures reigniting beat weed boris >>> a's gave the report unveils a shocking discovery inside police headquarters >>> a miles start to d-day, it is going to get caught up in parts of the bay area again. more details coming up. we are still having problems if your heading out of tracy toward the altamont pass. it is 5:00 now and cruise right now are on the scene of a well known berkeley restaurant. pat is on san pablo avenue with the latest >>> san pablo has just opened up.

well, if you got in on the facebook ipo, you have lost a good chunk of change. the same for zynga and groupon. is the boom a bust? we'll debate that. plus the pawnshop pop. why secondhand stores are booming and what that says about our economy. the star of "pawn stars" will join us. you have to stick around for that interview. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. >>> welcome back to "street signs." a little more on the developing story of a meeting between mario draghi, rumored meeting we believe we're confirming between mario draghi and the president of the bundesbank and a spokesperson saying they have reasons to talk. what's unclear at this point is dragh

the facebook ipo was such a debacle in so many ways and the one that i am focused on is what information was given to what investors at what point in time. and the individual investor, did they get the same information? >> this is important for both of you. you've got to i was talking to sarah over at standard chartered and here is how she summed up the situation. >> the euro area economy has been in recession and we are likely to have confirmation that the economy turned into negative territory again in the second quarter. and of course, they are facing a tight fiscal policy. there is a credit squeeze as well. and the problems with greece have hurt confidence. all of these together mean that activity is a lawyer -- is lower as concerns rise. >> when you look at countries like spain, for example. the youth unemployment is very high. but even now the edolphus unemployment is very high. >> a look at some of the other stories making headlines around the world today. four foreign aid workers have been released in southern somalia. they had been kidnapped on friday at a refugee camps in kenya

from the flash crash to the facebook ipo, some people consider bankers, modern day gangsters.a sheriff on wall street and he's cleaning it up. can the playing field be levelled for the little guy in all coming up on "mad money." this man is about to be the millionth customer. would you mind if i go ahead of you? 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. >>> talk about a teachable moment. this is one of the days where the market beats you over the head with the fact that it never fays to get too negative. i talked about the way the hated sectors like tech and the industrials staged a comeback fuelled by the fact that people had gotten too pessimistic. i want to circle back to a company that led the charge today. i'm

the fall out from the facebook ipo along with earn certainty in europe put a chill on the public markets. they fell flat. the stock debuted in may at $38 a share. the rest of the stock market on a mixed note. factories are preparing for worse conditions, that sent the dow down, however the nasdaq is up 16 at 2,951. >>> -is the most dangerous when it comes to red light runners over the forth of july holiday. the report shows forth of july is more dangerous than memorial day weekend in california and three other states. last year red light violations spiked 43% in california with 25,000 red light violations across the country. there could be a slight bump in gas prices during the holiday but analysts are still expecting them to drop in california over the next couple of weeks. right now in san francisco $3.90 and in san jose $3.76 a gallon. >>> he plans to step down this fall after 7 years as head of the department. he says he will retire november 30. he said he wanted to step down after celebrating 40 years as a police officer. there is no word on a replacement. >>> good afternoon to you.

facebook's ipo. some wall street analyst said that move undermined confidence in the company. facebook is where you develop confidence in your company. who knew? >> there you go. >>> stay with us. "news4 today" continues right now at 5:00 a.m. >>> we are tracking breaking news in southeast washington this morning where a fire has left at least one person dead. >>> good morning. i'm aaron gilchrist. >> i'm eun yang. welcome to "news4 today" on this july 4th, 2012. >> severe weather is approaching the capitol. you are instructed to leave the ar area. >> they cleared crowds on the west lawn of the capitol last night. they were there for the rehearsal for tonight's capitol fourth concert. both pepco and dominion say that the storms caused new power outages. >>> so in just the past hour about 3,000 people in the d.c. metro area had their power restored. most of them are pepco customers. utility company reports 59,000 customers without electricity right now. dominion says 36,000 customers are without air conditioning this morning. and bge reporting about 30,000 people in our area don

from the flash crash to the facebook ipo, some people consider bankers modern day gangsters.ut there's a sheriff on wall street, and he's cleaning it up. can the playing field really be leveled for the little guy? all coming up on "mad money." >>> sitting on the sidelines because of all the uncertainty in the market? >> thanks for turning my portfolio from mean to green. >> that's what i want to hear. >> with over 25 years of experience in bull and bear markets, let coach cramer show you how to play to win. >> you and your staff are keeping up on the gains. >> "mad money," weeknights on cnbc. ♪ [ male announcer ] nothing will keep you from magnum. silky vanilla bean ice cream and rich caramel sauce all covered in thick belgian chocolate. magnum ice cream. for pleasure seekers. you have hard water stains and that cleaner's not gonna cut it. you need lime-a-way. it's 4 times more effective at removing limescale than the leading bathroom cleaner. lime-a-way is specially formulated to conquer hard water stains. for lime, calcium and rust... lime-a-way is a must. look at these tee

now, check out the chart of the first dozen of days of trading after facebook's ipo. after the initial crash, facebook paused for a few days and tried to find a floor of support. however the first pattern that facebook made is what is known as a bearish flag, because it looks like a flag and that is where after a big decline the stock will work its way gradually higher on lower volume. and what makes so it bearish? that is continuation pattern and that is a stock marking time before it presumes the previous and in this case downward trajectory. so redler believes that the pain of facebook is far from over. again, it was slammed. so it does this continuation pattern and bingo, in early june. now fast forward to today because facebook has rallied back to the $31, and now redler believes that now it is positive. okay. so take him seriously and what has changed? take a gander at the facebook's full daily chart since the day of the disaster, all right. get it up. in the next pictograph, and remember, this is supply and demand and the oversupply of shares is hanging over the

from the flash crash to the facebook ipo, some people consider bankers modern day gangsters.here's a sheriff on wall street, and he's cleaning it up. can the playing field really be leveled for the little guy? all coming up on "mad money." >>> sitting on the sidelines because of all the uncertainty in the market? >> thanks for turning my portfolio from mean to fwregree >> that's what i want to hear. >> with over 25 years of experience in bull and bear markets, let coach cramer show you how to play to win. >> you and your staff are keeping up on the gains. >> "mad money," weeknights on cnbc. so... [ gasps ] these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence. i'm in deep, babe. you certainly are. [ male announcer ] fiber one. you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." what we do is, we provide the exact individualization that your body need

raising the amount it will offer brokers that lost money because of technical glitches during facebook's ipoe exchange will pay out $62 million up from 40 million it proposed in june. however, some experts say the trading losses may have added up to more than $200 million. >>> the government is investigating chrysler's two top selling vehicles. the national highway traffic safety administration is looking into 2009 and 2010 dodge ram pickup trucks. the agency says the rear wheels can lock up and potentially cause crashes. the investigation also includes 2012 jeep grand cherokees. power steering fluid can leak possibly causing engine fires. >>> american airlines is trying to make things more comfortable for passengers flying from coast to coast. the airline will be the first to offer flat seats on transcontinental flights. several airlines make them available on international flights. american will use the new seats in first and business class on flights between new york and california. i think our trip to l.a. is looking up. >> we'll probably have to pay an arm and a leg for it but we don't

it's not only denise rich, facebook co-founder eduardo saverin gave up his citizenship before the facebook ipo. he moved to singapore. why the trend? tax lawyers say because of an irs crackdown and to avoid estate taxes. >> they don't pay any estate tax when they die. this is a big concern to them, particularly for preserving family businesses. >> reporter: in a statement, rich says she gave up her citizenship in order to be closer to her long time life partner as well as her family and loved ones in europe. new york senator chuck schumer who's sponsoring a law to penalize people like rich, sees a tax dodge. >> you don't need to renounce your citizenship to be closer to your family. we all know the reason she's doing this, and it's to avoid paying taxes. i find the people who renounce their american citizenship despicable. >> reporter: whatever the reason, denise rich, whose father escaped the holocaust and found refuge in the u.s., has now become a citizen of austria. andrea mitchell, nbc news, washington. >>> still ahead, our first look ahead at how the u.s. team will look when the olympic o

facebook's ipo price in may was $38 a share. >>> the broader market surged higher today on a new plan to bolster the euro. the dow industrial gained 200 points. nasdaq raised 39. hinted more aggressive moves will be considered to help struggling economies in the euro zone. starbucks is taking a hit tonight. the seattle megachain is down 10% after reporting disappointing profits and cutting its outlook. the coffee maker blames struggles overseas. >> a rare double failure caused an hour long outage today. there was no sign of the twitter fail wail just this message for users beginning at 8:30 a.m. company apologized for the outage, which is the second in just over a month. comes as a san francisco based site is expected to see a surge in traffic for the upcoming summer olympics. >> four men remain at large tonight after gunfire erupted in newark. it all happened during the lunch hour and the men got away with valuable jewelry. >> jewelry cases smashed, store ransacked. jewelers inside new park mall was turned into a crime scene during the lunch hour while folks were shopping nearby. pol

speaking of the tech ipo space, obviously where you are, that is a big focus especially after facebook's ipoe chatter there in terms of the environment? are people holding back? >> investors clearly feel burned. they feel burned by venture capitalists and investment bankers and stock exchanges. that is coming out in their perspective. we saw it this weekend. and we will see whether they push price as they did in the case of facebook or whether they are more conservative. >> it has been extremely active. there has been a lot of players primarily in the weekly options but it has been constant with activity. people playing both directions. remains volatile. will are days when you're not seeing any news at all. >> let's hit another internet company out there. this is options action by the way. scott, what are you seeing in the options? >> this is really a play on what we have seen in the credit card companies. lots of news. they did really well today. ebay is really now papal in a lot of ways. then they took that money and they bought calls. they bought the august 43 calls. so what happens? this

it will take legal action against nasdaq to recoup more than 350 million dollars it lost in the facebook ipo. the swiss bank accuses nasdaq of gross mishandling of the facebook listing. the bank says hit to enter orders for facebook stock multiple times because nasdaq wasn't confirming that ubs with a surplus of the stock which went down in value. >>> amazon launching updated version of cloud music player as it tries to compete with itunes after amazon reached licensing deals with four major u.s. record labels. there are several new features including scan and match technology for customers to send music from their computers to the cloud. amazon says users will be able to play the music on keupbld fire devices -- on kindle fire devices. >> microsoft will phase out hot mail as it seeks to draw users from google's g-mail instead microsoft will introduce a new free web-based e-mail under its outlook bran. today's stocks fell as investors wait to hear from the federal reserve tomorrow. bloomberg index posted higher on gains of apple, cisco and google. here's a story about turning trash into cash

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dan, you were clearly right about the facebook ipo, what about these levels, any interest? the call itself validated all of the concerns i had going in, and the real problem with facebook is not that it's not a great company. i have a facebook account. i'm sure you might have them as well. the problem is that doesn't mean it's a great stock. and that's the real issue with the company right now. >> i'm glad you brought that up. henry wrote something today on business insider where he said, and i'm quoting, let's be clear, they're a great company, it was the market expectations that were ridiculous. it sounds like you shorted the expectations of what this company could be, and you didn't short the fundamentals. >> the problem as well with the fundamenta fundamentals, and that's part of the story people are missing. the way people access fb a couple years ago is through their pc, and the pc has a pretty big screen, and advertisers will pay for a big ad on a pc screen. now you have people accessing facebook through their cell phones and tablets as well. advertisers will not pay

. >>> you heard by now that ubs lost more than $350 million from the facebook ipo trading debacle. if that feels like deja vu, you're not missing something. you heard that more than a month ago when maria broke that story back in early june. >> ubs has a big problem with facebook. the firm sitting on losses sources tell me that could be as high as $350 million. some ten times more than the $30 million number currently being speculated in the market by others. >> maria is on the phone, on vacation today, one more day, but you could not keep her away from this story here. welcome back. it's what we call in the business nailing that story. well done, what are you hearing today. >> the new information is the lawsuit that is about to be filed. ubs suing nasdaq. ubs wants to file legal charges against nasdaq to recoup a $350 million in losses from the botched facebook deal. that story we broke on june 8th, and at that time i told you that ubs lost more than $350 million on that first trading day because the trading desk literally put orders in the system, it was failing to receive the pr

you remember hours before facebook's ipo general motors said it would no longer advertise on facebook. the guy who dropped that bombshell at gm has been dropped at gm. that and more. good morning. >> general motors has in fact ousted its global marketing chief two years after he joined the company. he was responsible for pulling gm's ads from facebook earlier this year. he made the decision not to advertise in next year's super bowl, moves seen as controversial within gm. reports say he didn't properly report the details of chevy's recent five-year sponsorship deal with manchester united, the soccer team. apple and twitter in talks, one time about a possible tie-up. reports say discussions involve apple making a bigger investment in the micro blogging service but the talks which were held more than a year ago didn't result in a deal and they aren't currently active. apple is still a big partner for twitter as it continues to mesh its message service. >> hampton pierson live in washington, thank you. have a great morning. over at yahoo! possible free food. we'll look at that. >> hey. >

so, zynga run-up in to the facebook ipo and thrown out with the whole facebook deal. a lot lower and nothing in the mistake of an ipo or mess-up of the i 3o process to affect zynga at any way, shape or form. you can look at it as a buy. >> shares down 32% since murphy's call. oh, ouch, oh, mike. do you still bet the farm on zynga? >> i never bet the farm to begin with but in fairness i think the stock came straight down from 15 to 7 and now under 5. same thing. i think facebook rebounded. we have talked about it recently. long facebook. a great rebound and going back up to 38 so i think zynga from 5 down here, it's -- i think you're at or near a floor and you can try it again for a bounce up. >> anybody else in on zynga or facebook? >> i think that was a play on words bet the farm. >> it's farmville, right? animals. stuff like that. >> virtual. >> virtual. >> i love those games. >> i got real chickens but not in to the virtual stuff. >> all right. final trades next on "the halftime report." the first trade route to the west, the greatest empires. then, some said, we lo

seven bedroom home that he helped design and build to coincide with the facebook ipo. he expected to sell quickly above the asking price of $9.9 million. the layout, materials, appointments, so >> service scores? happy a servant around. >> even the house were targeted to young well-educated millionaires from facebook and linked in and google. >> they're looking at protecting their business models, and clients are looking for that with and real estate. >> one of his big secrets is this, a 200 page strategic home buying guide filled with articles, that, and statistical analysis. the kind of stuff that high and silicon valley homeowners eat up. he compiled the report using his degrees in math and economics and law. he speaks the language of silicon valley with that. >> your a geek? >> total geeked and that is why love silicon valley. the buyers here are so brilliant that it one analysis, the one in sight. and to be a geek and speak to my fellow geeks, that is a fellow great match. >> keep a film crew $12,000 to shoot this review of the property showing that smarts and con

gm pulled ads back in may just before facebook's ipo. maker found its $10 million worth of advertising wasn't effective. the "wall street journal" reports facebook is reaassuring gm it will provide more data on how they can turn ad money into revenue. >>> the world's most valuable sports franchise planning to go public on wall street, that being manchester united. registered for the securities and exchange commission for an ipo. they hope to raise $100 million to eliminate debt. forbes values that team at $2.24 billion. >>> a bay area filmmaker is helps for the search for missing teenager sierra lamar. we have an update on the new documentary out. good morning, marla. >> reporter: good morning. if you want to get inspired, i recommend that you take a look at these documentaries. this independent filmmaker from the bay area profiled the volunteers who meet right here at burnett elementary almost every wednesday searching for syria. we can give you a look at wuflt documentaries that just went viral. >> i'm from belmont, california. i want t

problem. >> people inside are probably watching you right now and they took a lot of heat after the facebook ipo would you say the people inside morgan stanley? >> i would like to thank them, particularly michael grimes, our lead banker and i know there is a lot of noise about facebook. it was always about paloalto. >> the next ipo you do, whatever, may be you stick with the same team? >> we have great lead bankers. we had morgan, goldman, citibank. they did a fantastic job and worked really well as a team. i recommend any of them. >> where does it go from here? what is the next generation going to look like? whether we hear about the data breaches, when we hear constantly companies reported their credit card lists and files have been stolen, what are they doing wrong? can your system prevent that from happens? can you say that won't happen if people use our technology. >> it is a little complicated but the way a lot of it is done is the network is infiltrate and had we're with really helping to stop the infiltration in the first place that leads to those things. >> why not, for instance, sell,

the week of the facebook ipo? that rubbed people at general motors the wrong way. that's a cavalier thing to do. you don't do that at general motors and on the flip side, people will sit there and say, you want to shake things up? shake them up. that's what he was brought in to do. i think there's something to the point of whether or not he was not gm enough because you do, tyler, ultimately you have a company that middle management, that hasn't changed a lot. they have the same attitude they had before bankruptcy. >> talk about social media and who's doing it well in the auto business. when's the role for social media advertising for car companies like gm and were they not doing a great job at it? >> the way to see social media today is your ultimate customer relationship marketing management vehicle. if you think about facebook and twitter and all of the other methods that are out there to connect with consumers, through social media, it's the best form we have ever had in the history of marketing. unfortunately, too many marketers, gm included, used it to kind o

. >> how much did facebook's rocky ipo affect the company's bottom line. we may get the answer today when the company releases first earning statement since it went public. terry mcsweeney is live at facebook's headquarters. >> reporter: this a chance for facebook to prove continue investigators it can take its 900 million plus users and turn that into profits, big profits, one step at a time. this is the company as you mentioned it had a rough time during the initial public offering last month. it wants to show it can turn popularity into profits but not in a hurry. facebook says it is not going to be happening in a big hurry. in a filing last week the company says its mobile users continue out-pace the number of ads on its mobile platform and ads provide most of facebook's revenue. the number of mobile users is rising. analysts are expecting earnings of 12 cents per share on revenue of over a s -- over a billion dollars. facebook public may 18th. things didn't go well it started at 38 now down 24%. nasdaq had trouble contributing to the mess with a number

first, take a look at this shart chart, which shows you the first three days of trading in facebook following the ipothere are a ton of reasons why this deal was such a walking, talking catastrophe. but as redler sees it, you could have saved yourself misery and money by focusing on the supply of stock and demand shortly

significantly better guidance and all those shorts that are still sitting on this, ahead of the facebook ipok all of that auguers well for anybody in the long seats and the people in the short seats are going to be chasing pretty big. >> shares of groupon, by the way r down 20% since that call. plunged 61% year to date. jon, is this a case of, a bad trade, i'm out of it or i liked it then, i love it now, because it's cheaper? >> it was a bad trade. and i'm out of it. however, down here at eight bucks a share, brian, i'm not telling people that you double down. as i said, i took my medicine, i cut my loss, moved on. but down here at this level, it got down to around 7:50, $7.25 in the last couple of days. i think you do take a look at the stock again. but right now, that was a bad trade and i moved on. >> jon, jon, this is a company that got some pretty respected people out there, some bloggers who dig into the finances. not some guy in his underwear in his mom's basement but real accountants digging into this stufl questioning the business model and solvency of this organization. why take a

basically a 23 cents a share charge because of their trading losses of the facebook ipo. missed on earnings. they would have beaten decisively with the 23 cents back. back to you. >> thank you. >>> on deck, andrew ross sorkin just sat down with henry kravis. we'll speak with andrew. >>> investors lost confidence in the market. they think it's rigged. is it? and -- >> mad man jim kram we are the new sheriff of wall street. what can he do to restore our faith in the system? ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection. with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. are alwa

. >> rose: so what do you think of the facebook ipo? >> well, you know, i took microsoft public in 1986. >> rose: in a different way. >> i'm sorry. >> rose: was it a different way, you took it public. >> well, people didn't realize how important software would be at that point. and so our stock over a period of about 14 years mostly went up for 14 years. and that's kind of fun when that's going on. then when we got to 2,000, 2001 the whole tech sector was overvalue. and then for the first time we experienced the stock going down. mark is precocious in every way. he got to 100 billion valuation faster and he got to, you know, realizing once are you public your stock price is going to go up and down. and that's a great thing t will help that company become more mature. i think facebook is a very important company. i think they have a very important product. i'm kind of a bit biased because microsoft partners with them. >> rose: how many years ago did you make that investment in facebook. >> oh, that's not the important part. i mean steve

we'll get you ahead of kayak and fender in a post-facebook ipo era. >>> and a dark take on wall street. perhaps not a surprise. the not-so-subtle jab from the summer mega movie "the dark knight." so join us today on "power lunch" at the top of the hour. now back to "the fast half." >> certainly will. thank you very much. is china the end all, be all in global investing? and how should you trade it? joining us now, david riedle, president of riedle research, with his china trade. you would be adding two positions, it says, in the note here, david. >> that's right. we think we've seen a huge upswing in the m&i china consumer sentiment which we think is the best gauge of consumer sentiment on the ground in china. that combined with improving sentiment around the world, we think, is building towards emerging market outperformance in the coming months. and we would be building positions, getting ready for a more risk-on environment starting in october and november. >> so do you want to own china-specific names? >> the multinationals are typically more defensive. i want to be more aggressive

. >> same guy planned the facebook ipo. >> all right. it is the biggest vent on deck for your portfolio. find out how you should be trading. >>> later, we went all the way to latin america to find out what lies behind this curtain. you must stay tuned to find out what it is. much more "fast" straight ahead. this is $100,000. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. i don't have to use gas. i am probably going to the gas station about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how

facebook, look, i can understand. i understand why you would want to stay the heck away from both of these ipos. k that is the absolute wrong takeaway. [ booing ] see, i think the backers at morgan stanley privately recognize that they tarnished the reputation with the bungled facebook deal. they know they need something to redeem themselves, or at least how about save some face. that's why i bet morgan stanley will do everything in its power to price both kayak and palo alto low enough, this time making sure to get it right for an opening with no trading glitches hopefully from the nasdaq. they need to woo investors back into the game. no kidding. and they're going to use these two hot tech ipos to do it in my opinion. after the facebook fiasco, morgan stanley can't afford to do it any other way. so given that insight into the minds of the bankers and the underwriters in this deal, how should you play kayak and palo alto networks? the strategy is simple. it's the same way we exploit other deliberately underpriced soon to be red-hot ipo. with both kayak and palo alto you want to get shares in the

thursday facebook posts first results following disastrous ipo debut. cebook closed friday at $28 and change. its original price was $38 a share. >>> in asia this morning, the euro fell to a near 12-year low against the yen and all-time low against australian dollar with fears spain will eventually need a bigger bailout. >>> nrg energy struck a deal to buy genoon energy for $1.7 billion in stock forming the nation's largest independent power producer. >>> rupert murdoch resigned from the boards of several news corp. newspapers. o >>> the worldwide life federation ranks vietnam as the worst wildlife crime country of all asian and africa nations it studied. china finished a close second. >>> at an event called unleash the power from within, hosted by motivational speaker tony r robbins, 21 people suffered second and third-degree burns walking across hot coals. >>> a tour de france first. a major league milestone, and an old school look for the new dream team. >>> plus, one tricky spot at golf's british open had tiger taking a shot from his knees. your earl

facebook remember, has been downplaying expectations. it released revised forecasts just before its famous ipo in may. constantly admitting it has a problem with mobile. here you see the highs and the lows in boy, it's a long time since we've seen the highs with facebook down better than 20% from its ipo. if facebook misses its estimate it will be another day of bad press for the company as it's well off of its ipo highs. it has been sort of a bad week for tech stock in general. we saw apple miss its expectations and lost $27 off of its share price, then zynga saying it wouldn't make money and that got crushed as well. facebook, that's after the closing bell today. >> thank you, scott. new this morning five victims, three armed robberies. police warning people to be cautious after the same bank branch was hit. stephanie chuang is live with the latest. some of this is in broad daylight. >> reporter: that's what's surprising in all of this, in broad daylight also in a pretty busy area. we're just down the street from the marina exit of 880 here at merced and marina. the latest of the holdups was tuesday

rewarding you, every step of the way. >>> after the facebook debacle you have to be crazy to get into another ipo so fast. this week you have not one, not two or three but four new deals. i believe the facebook fiasco could work in your favor. the investment bankers recognize in the wake of facebook people are mad, disgusted, totally turned off at the idea of owning a stock let alone getting shafted with another loser ipo. when the level of popular hatred reaches a certain level brokers try to entice you back into the market by engineering the pricing of new ipos for a nice first day pop. they tell you that you aren't allowed to take the money and run. you have to hold onto every deal. you can sell if you like. it's a free country. there is nothing that says you have to hack onto every share. last week i highlighted pal palo alto and kayak.com. they are supposed to be public thursday. i told you to get shares in the deal and try to do selling when the companies become public. these are ipo trades, not investments. what about the other two companies coming public this week? where do they stand in

said they had little impact and would stop advertising on the site and came a few days before facebook's ipon really questioning whether or not facebook can prove effective and whether or not they have the me believes to prove they're effective. >> it's adata that's the sticking point. the report says that facebook is not going to give gm special treatment but going to supply them with enhanced data to say you are getting bang for the buck and the best read is that gm is considering it, not committed but definitely interested in getting some better numbers on their return. >> you have to wonder if there's an element of symbolism in going after gm and trying to get them back. the journal's reporting that sandburg called the ceo of gm herself to try to reconsider the relationship so could this be some more damage control and what would be a very watched earnings report of july 26th after the close. >> isn't it something to be announcing a switch of exchanges and a gm contract on the same day? >> exactly. that could be a huge catalyst for the stock. >> we'll see. still to come on this tuesday m