. >> remember my interview last week with james gorman about facebook? questions we all wanted answered. remember that day stock had an unusual surge in the last hours of trading and gave it back on friday? you will hear why facebook stock movered that way. you've got the story next. ng ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. >>> welcome back. facebook under pressure again today. but the stock popped on thursday of last week ahead of my interview with morgan stanley ceo james gorman. his company was the lead underwriter of the ipo out of facebook. our gary kaminsky with insight into why. >> hi, maria, hi, bill. there has been buzz since thursday with the increase in volume and obviously the subsequent move with the high before the close. earlier today ways able to present data put together by a gentlemen who joined us righ

that's what the road show does. >> my thanks to james gorman. >>> up next on "the wall street journal report," is housing heating up? what record-low mortgage rates fordable prices could mean for you. is it time to buy? >>> the fate of the local bookstore in an electronic age. one southern city's hometown girl means business. >>> > as we take a break, take look at how the stock market ended the week. uh, i'm in a timeout because apparently riding the dog like it's a small horse is frowned upon in this estatablishment! luckily though, ya know, i conceal this b boy underneath my blanket just si can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just aan and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed. > after falling off a financial cliff, is the american housing market bouncing back? there's optimism when it comes to the value of the largest asset most americans hold mean opportunity for buyers sitting on the sideline? let's talk to stan hump

in just a few minutes, i'll have an exclusive interview with james gorman, chairman and ceo of morgan stanley, about that facebook ipo and how he sees it, what went wrong. >>> the markets had a miserable month of may. how is june shaping and up what does the jobs report mean for your money? joining me now is michelle gerard, she's senior economist at rbs. two pieces of key economic data this week. the jobs numbers on friday, the revised gdp report, weaker than expected. were you surprised by the numbers? are we entering another soft patch? >> well, i tell you, i was very surprised by the employment report. the magnitude of the weakness in that report was -- i don't want to say shocking. if not shocking, just shy of. really through and through, we saw hiring slow across most sectors. we saw the work week decline. even the people who were working worked fewer hours, they earned less money. it was a very soft report that suggests that all of the uncertainty that we're seeing globally is i think moving businesses to the hiring sidelines. >> so they're on the sidelines right now. does this

. >> let me get your take on what james gorman said from morgan stanley. did you call james gorman?> i've spoke tone a lot of ceos of listed firms and member firms and i'm not going to comment on individual conversations. >> let me get your take on what james gorman said in term of those opening hours. listen to this, ceo of morgan stanley. >> it was clear that the exchange handling the issue, nasdaq, was having problems. and those problems were being -- we were being updated every couple of minutes and delayed every few minutes and eventually they declared a go, everybody could go and we could start proceeding with the transaction. with that, over the next couple of hours, there was enormous confusion. that confusion and frankly in a deal of almost unprecedented size against the macro backdrop of everything going on in greece and so on created a potent elixir, if you will, that really set this thing aflame. >> do you agree with that? >> well, certainly we acknowledge between 11:11 and 11:30 we had trouble getting the cross to run. the cross ran, went to the tape, but the confirmati

. >> positive words from morgan stanley and ceo james gorman from yesterday's interview with maria. up next, the experts weigh in on how much a major downgrade could impact morgan's stock and the rest of the big banks. here's our twitter question of the day. is the disappointing may jobs report a sign that america is headed for another recession? tweet us and we'll reveal your answers later on in the show. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 the spx is on my radar. 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. tdd# 1-800-345-2550 i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones to help me find tdd# 1-800-345-2550 possible trading opportunities quickly. tdd# 1-800-345-2550 i can also bounce my ideas off their trading specialists - tdd# 1-800-345-2550 on the phone or face-to-face. tdd# 1-800-345-2550 and i can trade wherever i want, whenever i want. tdd# 1-800-345-2550 tdd# 1-800-345-2550 th

morgan stanley's james gorman -- >> the industry will be down graded.he question is to what degree. what we have done and the kind of company we are now from a few years ago, it's very different. we've sold assets. we've done all of this long before moodys came along. >> and we are counting down to the jobs report. joe kinahan is standing by. finally action in the cme. hey j.j., joe. you can call me ray. big move in the vix the other day. what is the up side potential now for the vix? sky's the limit. i'm not saying we like volatility, but it does cause people to tune in. we could be on the cusp of something, no? >> you you guys like volatility, it help wills your ratings. traders like because it usually means more trading. the vix we've seen really heavy action in the 30 and 32 calls. which would equate to us obviously going lower. most of the folks down here believe that the futures are right around 1295, that they have to go down to 1287 to pill in a gap that we saw on the sunday night session two weeks ago which was the low for the month. obviously

james gorman yes a couple of points there social security is by definition a ponzi scheme i believe usa today ran a story saying yes social security is a ponzi scheme but it's a good ponzi scheme well not really all ponzi schemes and in tears social security is running out of money and it will also collapse just like syria gays ponzi scheme and you mention the i.p.o. of facebook this is yet another version of a ponzi scheme called a pump and dump even the president of the united states was pumping shares all the insiders were dumping in this shameless version of who wants to be a millionaire after once being a multimillionaire but there were many people telling the population it was a ponzi scheme don't buy it it's going to zero but they still bought it because you can advertise openly now as a ponzi scheme because people i think. not only have they just given up on ever working again but they think that there's always somebody to write to the rescue these ponzi schemes collapse but ben bernanke he'll lower interest rates to negative something or somebody will bail us out and it will be

. >> i'm glad you brought up morgan stanley because we spoke with james gorman, and i asked him specificallybout this downgrade, and how he is anticipating -- what he is anticipating. he said it's most important to look at how big of a downgrade it will be. will it be two notches or three notches, listen to what he said about this downgrade coming. >> the fear out thereto is that you will see a two to three notch downgrade from moody's, and that will mean a $5 to $9 billion call. how much capital will you have to raise? >> we won't, we have the liquidity to cover the collater collateral, we expect a downgrade, we have liquidity, that's why we built the pool to take in all potential outcomes, it won't have an impact on our capital at all. >> do you agree with that? $5 billion to $9 billion capital call. >> i think it's more around that, i think it's more the question around things like otc derivatives and the questions that will come out of it. again, not anything representing the banks, but it raises the concerns and raises more questions, it's another overhang for the lack of a better way o

you saw morgan stanley's man at the top, james gorman's, interview with me. the debate next. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. >>> welcome back. gold prices surging today as a stock and commodity markets get hammered. the main commodity index, the crb, is down better than 12%. take a look at oil, down better than 20% in four weeks. it's not scaring some folks who says the commodities could be setting up for a bear market richard bernstein doesn't see it that way. thank you very much, jeff. make your case. >> i don't want to buy commodities right now but soon. we're setting up for a really strong bull market, looking at some of these things, we saw the gold, fear trade coming back in

one that was compounded by morgan stanley's james gorman who had an interview basically said shame on you, the buyers, for thinking you can make a quick buck. take a look. >> the group of people who thought they were buying the stock so they could get an enormous pop were both naive and bordered under the wrong pretenses. >> now, bozos. talk about caveat emptor. shame on morgan stanley for saying that. everyone in the business knows the game. here's the way it works. everyone is supposed to win on an ipo, especially a big popular deal where it would have been easy to let everyone win and facebook was the antetheosis of that kind of deal. i had also gone too far to pull back at the last minute. when it knew it had no control of the opening, whatsoever, and the systems were too backward to hit on the influx, amazing when you consider how they paraded around telling us how well it will go. maybe they will show a little remorse when they speak tomorrow about compensating brokers for losses on the deal. you got to own up, everybody. people own up when they do mistakes. the essence of what

you see james gorman and others from morgan stanley come out ahead of these ratings. >> well again ait's putting a mirror up and saying hey here is the information and criteria we're looking at, here are all the issues and you can argue whether you like it or don't like it or whatever, but it is a mirror and it puts a position forward and so look, i mean, whether it's ourselves, with standard & poor's or moody's or whatever it's a reflection of what's going on in a particular industry, a market, a company, a security, and that's a good thing. now unfortunately you may not like the information that you're getting but to an investor, an investor can't have all of this spin. they've got to have real information, substantive information and they can make a decision on what they want to do, but from a ratings standpoint you're putting out on opinion. >> okay, terry, thanks for that. >> great. terry we appreciate your time this morning. have fun down there. be careful. good place to meet. >> we got to hope -- this is an opportunity and as the g-20 gets older and the process matures, we've

james illy shows us the one-point-six mile jouuney thattfollowed... (former police officer)"after driving down horshum road with pam dragging beside the car...they stopped at ssop sign at horshum and gormanhed this part of gorman road they pulled over and stopped. they grabbed the car seat froo the bacc with sarina still trapped insidee. a wiinnss watcheddthe whole thing. they tossed her out and left her here and drove away... that witness pulled over and kept sarina safe." then the carjackers continnud.... driving... with ppm's body still clinging to theesidee... officer jody tookey was in the vicinity.... ((op)"people are justtflaggingg theyre cryiig, theyre telling meewhat's going on a car is going down thh road draggingg barbed wire)the carjackers drive faster... and try to scrrpe pams body off the vehicle... (police investigator)"they &pintentionally drovv across th roadway...and off the roadway and into the fence in an of the car. " he trail of officer tookey the first on - yellow linee.. it was not.. gooddshape at all..nothing.. (voice only)"it was very &pdisgusting..inhumane." rodne solomon and berrard millerr.. triid to get rid of the evidenne at a car wash... but were caught a