gorman saying the pay off is strong first quarter results.harges for the narrowing credit spread. >> ex-dba our earnings for the quarter remain the highest since the financial crisis. roe was over 9%. >> over 9% but gorman says it is on the path for improvement so they're looking for higher numbers there. earlier i spoke with the cfo who said debt downgrade is manageable. moody's is looking to possibly downgrade morgan's debt and she downplayed the idea morgan stanley might look to buy all of the remaining 49% of the joint venture. it doesn't own it quite yet but is ontrack to buy 14%. also contracted to cut expenses. the results outstanding. 71 kren a share well ahead of analysts' estimates revenue beating estimates as well. once you take out the charges for the narrowing credit spreads two highlights in the quarter, really strength and their fixed income. commodities and currency trading up 34% year over year. k witty trading was up 6% year over year and it should be noted among the major banks it was the only one to report year over year i

gorman's comments and specifically as it relates to morgan stanley's bottom line results?ously we know what's on his mind and that is potential credit downgrade from moody's which could cost morgan stanley a lot of business. what you've seen in general for the banks however is what they have been doing is improving their results by having lower -- excuse me by having lower charges for credit, then bad debt than what you're really going to be seeing here is this can't go on forever. >> mary, let me turn to you. do you agree? and what did you find the most compelling out of morgan stanley's report? >> most compelling out of morgan stanley's report is this is a company that saw revenue in fixed and equity training increase on a year over year basis in the first quarter. that is quite -- basically that's a standout from the other big investment banks. a number of them have tough comparisons year over year. so that was certainly a -- that was good news for morgan stanley. as far as the other banks, i would agree with neil. i think that is why expense management is going to rema

i'm pleased to have james gorman at this table for the first time. welcome. >> thank you, charlie. >> rose: i've interviewed you before but not at this table. >> delighted to be here. >> what do you foresee as the journey you're going to take this firm on? >> well, the most important thing with any professional service firm is to tap the d.n.a.. to find out what it is that is the magic about the institution. and morgan stanley 75 years old found that coming out of the great depression, the magic of morgan stanley is the quality of the people dealing with exceptionally complicated problems. helping clients find solutions in tough situations. so my challenge is to get us back to those roots, to amplify those roots and let the organization run with it. >> rose: you will no longer be doing what as much as you did in 2006 and 2007? >> we won't be doing proprietary trading. that was sort of a stray off the reservation right there. >> rose: because the benefit was so exciting that you could not resist it? >> well, i think there were a lot of firms making mo

running a paving business, pat gorman has come to know it well. >> the parkway, yeah. >> reporter: gormand their gps systems will soon need reprogrammed. three major northern virginia roads, the parkway, fran cone yeah parkway and prince william parkway have been renumbered. it's because all three were just reclassified for secondary to primary roads. under federal rules, the numbers have to change from four digits to three. signs like this will go up soon. the fairfax county parkway becomes route 286. the franconnia parkway 289 and prince william 294. >> the first thing motorists see are new signs in the median that show the old number and new number. >> reporter: just how many signs will have to be replaced? well, this is one of 1,000 that will have to be swapped out on the three roadways. 400 of them on the fairfax county parkway alone. the name change gets an eye roll from this fairfax county driver. can you imagine yourself starting to call it 286? >> it will still be fairfax county parkway or 7100. irregardless of what the sign says. >> reporter: paving company owner pat gorman isn'

. >> financials, two great barometers from jp gorman. the space battered across the board. concerns out of europe. we saw banks sell into the european close and u.s. banks take their lead from that sell-off and dan, next week, you take a look at march gone stanley, the most correlated to european banks of late. >> we had wells fargo and jpmorg jpmorgan. as good as it gets. at the end of the day, morgan stanley down 8% on the highs here. really tough to press short in a very uncertain market. the implied move is higher than a lot of its peers. a little under 5%, and i'm not really looking to make a move, just on earnings here. i want to look out to may. moody's told us they may down grid this company, the credit rating by three notches. going to increase their cost, and make them less competitive with pires. i want to look for a low premium structure, have a bearish bet, that could be the sovereign debt stuff. i want to make a low premium defined risk that this stock maybe goes unchanged on the year on the next five years. >> dan is barryiearish, using a play. you buy one pu

you heard what everybody had to say this morning and what james gorman had to say. what is your take on morgan stanley's numbers? >> we don't cover morgan stanley but happy to talk about b of a. >> great. >> b of a had a better than expected quarter as your guest mentioned, expectations certainly went up going into the numbers. we had a core number of about 20 cents. the street was about 13 cents. and the beat was pretty much driven by strength in the capital markets during the quarter. >> what about the talk of the mortgage business nearing the bottom? is that good enough? what does that ultimately do for the stock price of bank of america? >> well, you know, it's interesting. b of a with countrywide and growing up as a big mortgage company is actually not as big a mortgage player as it used to be. recall that b of a has sold a lot of mortgage servicing and is simply not as big a player in the mortgage business as it has been in the past. and banks like jp morgan wells, u.s. bank and others have actually picked up the slack. where b of a does benefit from a bottom

indictments the one against thomas drake they tried very hard not to bring the reporter in it was sean gorman then with the baltimore sun and now with the wall street journal but if you look at the case of jeffrey sterling they have subpoena jim rise and bush subpoenaed him new york times columnist jim rise and twice and obama subpoenaed him once the judge. brink of my rule that he did have a reporter's privilege not to disclose his source. who people widely believed to be jeffrey sterling and now that's up on appeal and then in kiriakou skase there are journalists all over that weighs the charges have journalists aid generalist be journalists see and in the indictment journalist a journalist be journalist could be. again a high profile new york times journalist not jim rise and but scott shane incurious so we're seeing a lot of examples here here at r t we cover this whole issue of whistle blowing a lot particularly with bradley manning the you know the army private accused of blowing the whistle and sending hundreds of thousands of documents to wiki leaks and which has made these public doc

and gorman asked about the possibility of hiring janko and said it would not believe he'd been we would be a good choice and he said that we had difficulty separating facts from things he wanted to be true and so basically he wanted to decline to be associated with him and that kind of weird because doesn't that sound like keith olbermann describing himself like he has a little issue like with reality hello world where it's pretty much like he's like the media equivalent of probably she we were talking about this earlier it's like. that like trial she didn't show up to work as well i don't know it's just it's really sad to me just being like a former fan of his time and again like him and dan patrick they seem like such a nice guy it's just it's really disappointing to hear that someone you really like and just go why bury people who were done some great stuff over the years and clearly this is your i mean to me this seems like it was just be more of his norm is legal yeah ok he's completely lost touch with reality and he's kind of in that place in the world where you can no longer admi

public thank you we all benefit from the police doing their job right operative term right and doing gorman's with the constitution but one thing that has come up or one technology interesting which is the recording of a rock so whenever i police officer uses sirens or sirens recording start and often times with many of these cases of excessive violence on death as a result are the less they claim that the person was armed or that the person was fighting back in a combative way and so they had little choice but to shoot or taser pepper spray and then it turns out when they look at the surveillance and recording that in fact none of that was true so in some ways the technology is i think a positive development and so then if the police feel that they need to use. horse the recording will defend them but at the same time if they abuse their authority and they lie order to save their own skins then they'll get caught in it so i think of it that it's a really good point with everyone having cameras and even video cameras on their phones now it's much more difficult for police to be able to give t

and we'll be speaking to james gorman about the bank's results at 11:00 a.m.o make sure you tune in for that. five minutes later we'll hear from john donahoe after ebay beat expectations last night. but before that, we have former ecb member to discuss the eurozone crisis. so a great guest lineup here today. and still with us is rob morgan, chief investment strategist at fulcrum securities. i want to talk to you about the day ahead. a lot of data points coming out, jobless claims, a lot of earnings. so your expectations today, futures obviously pointing to a higher open. >> i'll certainly be looking at weekly initial jobless claims. those tend to be market moving. and then of course the two big banks, bank of america, morgan stanley. and bank earnings have been pretty good. wells fargo, jpmorgan, goldman sachs all beat. citigroup disappointed, but i think those may be issues specific to citigroup. so we don't have actually estimates for bank of america and morgan stanley, but the trend has been pretty good here. so hopefully those two will continue to deliver

james gorman will be talking after the financial giant reports the latest earnings. princesses.n expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. how did the nba become the hottest league on the planet? by building on the cisco intelligent network they're able to serve up live video, and instant replays, creating fans from berlin to beijing. what can we help you build? nice shot kid. the nba around the world built by the only company that could. cisco. >>> qualcomm beat wall street earnings estimates, but shares are under pressure after issuing disappointing guidance. we have been listening to the conference call and you were expecting this. what did you get? >> here's why the guidance is back. it turns out qualcomm can't get eno

maybe gorman. we heard about the personal gps devices selling like flap stacks. short sellers can't get enough of garmin. they keep saying gps prevalent everywhere. i bet garmin does well when it reports. if oil trades up wednesday, continental resources, clr, started to recommend last summer, take a look at it. you get crude flying because inventory is loy for oil, continental flies with it. we hear from one of the most commercial companies more than green mountain and chesapeake, hearing from green mountain. i am going to defer to herb greenburg from street signs on this. he thinks there's too many questions need to be answered. and i think they'll be answered negatively. i want you to take a pass on green mountain, as tempting as it may be because it is way down. thursday brings companies doing well and will continue to do well. talking air gas, tar data, aig. air gas turned over a takeover bid not long ago. with the ceo saying op this show he thought he could do better for you as a shareholder than that air products bid. many doubted the claim, we did not. st

david faber has a first on cnbc interview with morgan stanley, ce oechlt james gorman tomorrow at 1115.m. michelle? >> the nasdaq is lower by 4 and we have 45 minutes to go before the bell. u.s. equity strategist jonathan predicts the s&p will be more than 6% higher by the end of the year. find out what he thinks about the potential for that. best buy reportedly a private equity takeover target, do you ever buy stuff at best buy or use it like an amazon showroom? send us a tweet @cnbcclosingbell. >>> as we head to the break, here are some of the stand-out performers. the very top, intuitive surgical higher by more than 8%. tdd# 1-800-345-2550 i'm constantly working my screens. tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-3

. >> morgan stanley ceo james gorman by the way is going to be on cnbc tomorrow morning. what should investors -- what can he say i guess to placate investors the reports he's been trying to meet with moody's to avoid a credit rating downgrade? >> that's an interesting one. they trade at 6%. and this is a to a minus company. they've made great progress at improving capital. they have 13% tier one capital ratios. $180 billion in liquidity. the reality is the market doesn't care and they're linked to europe. so i would ask, quite frankly, what are you doing for bondholders? i would like to see them merge with a bank. because quite frankly jpmorgan and wells have a 2% unsecured funding advantage versus morgan stanley. morgan stanley -- 22% of their equity owned by mitsubishi ufj. i would like to see morgan stanley partner up with a bank and let our clients benefit through tighter bond spreads. >> all right. you heard it. mark, thanks so much. >> thank you. >> all right. up next on "street signs," why the world's automakers could see the recovery stall because of one explosio

and then highway 138 near gorman according to the chp.ighway 58 through the pass is also shut down. >>> heavy thunderstorms also hit central california this week bringing record rainfall to fresno county. flooding shut down several streets and the highway was covered with standing water. hail was also reported in the area, which raved concern for local growers. >>> now all the april showers could be bringing flowers, but they can also bring on the allergy season in full force. marianne faber has more on the unusual weather patterns this year hitting people with allergies particularly hard. >> reporter: free trees blooming, grass growing, for some it is picture perfect, but for others it is a dose of discomfort. >> i'm sneezing ten times in a row where i get to the stage and it hurts my head. >> my nose is itchy all day and my eyes will be watering. >> stuffy nose, drainage in the back of my throat. >> reporter: a south bay allergy group says patients are flooding in searching for relief from early allergies. >> especially with the strange

and that seems to square with what i heard from james gorman or jamie dimon last night on his call. it's interesting, jim, when we look at concerns about the u.s. economy and then concerns about europe and where things may fall. >> you guys always talk about confidence coming back among american business. is this it? it's in the framework of volatility that we know will continue? immelt has already called this the new normal in his letter. >> people are gun-shy. i saw the 2008 real estate comments, you be careful what you wish for because real estate -- i immediately say, wait a second. don't ever be really bullish. you get your head blown off when you're really bullish. but some of the facts can't be constrained. the facts are remarkable for a lot of our companies. the growth rates are remarkable. it's very difficult to not be more excited. >> i think it's an interesting point that carl raises. it is, in a way, what we can expect in terms of confidence. mark from citigroup was on and talked about the lack of confidence and the mystery of it all. why are ceos not willing to do deals

gorman earned around $11 million. i guess no significant surprise although numbers for some people seem a little outstanding i should say, simon. >> to say the least. mary, thank you. >> well, we all know the story now. google delivers decent earnings. but it's the surprise two-for-one stock split investors are really interested in. aimed at control by co-founders. shares right now are lower by over 3.5%. jon fortt joins us from silicon valley. jon, this power grab, are we going to see more of this in tech? >> quite possibly, julia. just to get back to the stock for a second, it's given up all the week's gains with this 3.7% drop this morning. its biggest selloff since last quarter. and they looked more ho hum the more you dig into it. eps were strong but benefitted from an unusually low tax rate and unusually slow pace of hiring in the quarter. one of the things that has a lot of attention is google's three-class stock structure. they gave themselves voting control. they say they don't want investors to short thinkin

and the ceo, james gorman, speaks about the results and looks ahead first on cnbc with david faber.row at 11:15 a.m. eastern time on "squawk on the streets". >>> take a quick look at the markets here. dow jones industrial average right near the lows of the session and almost 20 points worse than when we started here. we're slipping just a little bit late here in "power lunch." >> let's go to the chart of the day. since we were talking about microsoft a few moments ago and their earnings are out tomorrow. one of the guests made a very strong case in favor of microsoft, i thought it would be interesting to go back and look at a 10-year of microsoft. you can see there that over ten years you would have made about 1% a year in microsoft. trading right now at $31 a share. it is up dramatically double digits so far this year. a lot of people do buy the idea there's a product cycle play here for microsoft. >> i'm taking a look at berkshire hathaway down another 1.3%. we wish mr. buffett all the best. and that comes after his open letter to shareholders yesterday afternoon. >> quick look at

meanwhile james gorman has been talking with moodys trying to stave off a downgrade. the move could hurt will the company's plans to buy the rest of smith barney. they were put on review in february. company could see its rating cut to two levels above junk status. very briefly, bank credit, what's going on? >> i think we're sort of in a hiatus right now. we're waiting for further information. the information we've had are recently ynk gives us any clear tendency. the interesting thing to look out for is the index of bank equity. certainly in the eurozone, it's trading in a very narrow range and looked like the market had kind of focused elsewhere. what i've seen -- >> they have more holdings. all right. we'll take a short break. our nestst next guest says cocoa prices will be pushed lower. so are we in for an us a tear he's it ter? >>> french foreign promising to take a hard line with the eu on immigration and trade should sarkozy be reelected. and said sarkozy will give a new direction. stefane is in paris eyeing up what's going on and this comes in the polls sugges

officers arrived at the corner of park heights and gorman ave.ill feel like winter this monday. chance for rain or snow showers. we will make it back into the 50s on tuesday. >> another weather update at 9:25.

james gorman has been in discussion with moodys. a cut could diminish the bank's ability to buy the rest of citigroup's brokerage smith bar any. and we've been waiting to find out whether that transaction will take place. in addition, jpmorgan ceo jamie dimon telling investors last year was a good one for the company's earnings. he says it could have been even better, though, had the bank not been hit with mortgage related losses. annual letter 38 pages long, he says he expects the bank's earnings to grow over time. also mentions regulations, though, as a problem. he writes in part there are so many new rules that they inevitably create more opportunities to build unnecessary bureaucracy with the company. it is incumbent upon us to make sure that we do it right for the regulators, our clients and our own efficient internal functioning. and of course that's an issue we continue to hear about. >> you read all 37 pages of that thing? >> i read them fast. he always writes a really good letter. >> surprised you you weren't having nightma