mike mayo gets bullish on morgan stanley. and after the bell tonight, cisco up over 30%, and our traders will battle it out over where it could head next. stocks are up eight of the past ten sessions and have now gone nearly 180 days without even a 5% correction. does it mean stocks are bound to pull back, or does the momentum renewed by hedge fund heavy david tepper continue? we're trading the markets today with steven wise, john and jerry, mike murphy, and stephanie link. how about it, murph, is the rally here to stay now that tepper says he's bullish? >> the rally has been before tepper was on, and i think the rally does continue with or without david tepper. we've talked about it for a long -- for weeks if not months now, scott, that the market is giving you every reason to be in it at these levels. there's really no reason to jump in and short this market. we talked about the s&p getting through 1,600. now we're up at 1,657. today an all-time high. when you have the fed backstopping this market, and not just the fed, but

clsa bank analyst author mike mayo joins me to talk about this.els all of sudden the tide turned a little bit, doesn't it? >> well, when this issue first came up about separating the chairman from ceo role i thought jamie dimon's long-term stock price performance would rule the day. melissa: yeah. >> no other bank ceo can claim that level of stock price performance. having said that, as you mentioned, these proxy firms have come out in the past few days said, split the chairman role from the ceo role. meliss now, i mean people who don't follow this year in, year ouu, realize this is issue that comes up every year before this meeting. that there is always a push to split the roles. last year they got to 40%. it is nonbinding. what no matter what the shareholders say board doesn't have abide by it. at what point do they feel pressure in at all? >> well i think, jpmorgan, jamie dimon especially listens to investors. >> yeah. >> they're very response system. they're willing to listen to contrarian views. having said that separating these posts. it is

mike mayo. >>> still ahead the irs under fire for unfairly targeting specific groups. we will look at how deep this scandalal may run. here is how the international markets closed today. >>> time for market focus. we bewigin with biogin. shares are up more than 50% this year and today they continue to rise closing at $222 and change. investors taking a second look at take two interactive after the video game developer reported higher than expected profits after the bell. also raised the outlook beginning with the current quarter. the shares were down a fraction in the regular session and then surged more than 5% in after hours trading. >>> the tv networks begin preseason sales meetings, abc says it will begin to live stream programming in some cities on mobile devices but only to paying subscribers to cable. disney shares touched a new all-time high at 67.52 before falling back slightly at the end of the session. >>> and shares of black berry gained ahead of its live user conference this week in part because of favorable analyst comments on its operating system. it clo

melissa: mike mayo did the math but he is not alone in the numbers. what do you think about that? sound right to you or does that sound gigantic? >> no, i think it does sound right. remember, melissa, you're talking about close to a $200 billion market capitalized company. so 10% is $20 billion if the stock price was to trade off like that. now you're talking here about jamie dimon. this is a very, super astute man. knows the financial arena inside and out. he is very seef-assured. this is, this is going to be a very interesting discussion whether or not they split the chairman and ceo title. and i think part of this discussion has, as a result of what took place in london where they lost significant value. melissa: right. >> they did have the ability to do both jobs. melissa: -- as that happened. you know, the stock is up 25% since he has been in the chair. >> right. melissa: i think he is doing a very clever thing by floating this idea maybe if they take away his chairmanship why should he stick around? he made a zillion dollars for hims. he is 57 years old. he has been doing it

thompson is live in purchase, new york, that is where the meeting finished up and she has clsa's mike mayoviewers an idea of what happened, all of the directors were re-elected and the proposals put forth by the company were passed, as well. during the meeting mr. gorman did take questions. he promised to get it to 10% by 2014 and he also talked about the fixed income commodities and currencies business which has struggled lately calling it a work in progress and one that is undergoing what he classified as a long-term turnaround. >> as you mentioned, david, i'm joined by mike mayo. thanks for joining us. you had the chance to add the lead director bob kidder about how they were approaching return on equity. did you hear what you wanted to hear from him? >> first, i was very encouraged and this was the first annual meeting that i know of among the banks where you had not only the chairman and ceo talk, but you also had the lead director bob kidder speak and the head of the governance and management committee erskine bowles. fantastic. three directors speaking at the annual meeting. >> the

for analyst, mike mayo, gorman's comments as well as those from kiter, were reassuring. >> that was very reassuring for the meeting. the focus on the return on equity. and if they achieve their target by 2014, i think this stock could go a lot higher. this is one of my top ideas in the bank space. >> now, some of the other highlights from the meeting. all of the directors were re-elected by a high margin. all of the proposals that were put forth by the company, there were no shareholder proposals, passed as way. the say on pay getting 86% of the vote. gorman also talked about the regulatory environment, saying that higher capital required by the banks would impede the economy, because it would hurt lending. and he encouraged regulators to get through dodd/frank first before imposing new capital rules on the banks. and speaking of capital, gorman told a scrum of reporters after the meeting that he hadn't spoken to the board on what he might do about returning capital to shareholders. keep in mind, the bank wants to get through the acquisition of the 35% of the wealth management business o

mike mayo gets bullish on morgan stanley. and after the bell tonight,

melissa: mike mayo out quantifying that today. >> i'm throwing stuff out there what i'm hearing. did not know that. the interesting thing is, that if you talk to regular shareholders, they kind of, they do support him maintaining both roles. melissa: yee. >> a lot of people point out, i mean there may be political pressure that forces him to move in the other direction. we should note that larry fink, very closely associated with the obama administration. we should point out if they do break up this role, this will be a one of the biggest stories of the year. melissa: without question. >> they didn't break up goldman sachs but they broke up jamie dimon. melissa: charlie gasparino, great job as always. thanks so much for your reporting. lori: okay. the irs targeting conservative groups, how did it happen? congressman michael turner is up next with what he is doing to stop it. melissa: breaking news right now. attorney generally eric holder confirming fox news reporting that he recused himself from the ap investigation. we'll bring you the very latest as we have it. lori. lori: mea

we spoke with mike mayo of sla, he told us one there is tremendous performance underjamie dimon.o need to tell you is at a 12 year high today. stock is trading up just under 2%. this according to some people might tarnish dimon's reputation. >> the stock price performance under jamie dimon as ceo is better than that of any large bank ceo. but that is the last seven years. the real question is the next seven years, did jamie dimon get too complacent. did the board get too complacent? did some of the managers get poo complacent. the meeting is a wake-up call that you better keep your focus. shareholders rights is reaching tippingpoint. chairman ceo split would not be a first issue. are boards rubberstamps for management? dove have accountability and oversight? is there an adequate successor and are they simply a rubberstamp? >> mr. mayo asked that question and he was told that the board is not a bunch of wall flowers for mr. dimon. but no successor, no one is identified, very easy to make comment that, there is a plan in progress and there are things that are taking place. but real

. >> mike, i know the big mayo clinic is there in rochester, minnesota. any problems with flights getting in and out? >> well, it's a very small airport. i would suspect that they didn't get many flights in and out of here today, at least this morning. and i want to let you know that minneapolis did okay. they got skunked. the twin cities basically got nothing. so you go up the road about 45 miles and there's really nothing around. and you go south of here and you run out of this. this is a localized ban from wisconsin into southeast minnesota into parts of iowa. that's where it sits. but the twin cities are in great shape if you're trying to fly out of reagan or dulles. temperatures around 40. they had just a little bit of snow at the airport. >> mike, keep it out there, will ya? okay. >> yeah. i hope this is the last time i have to wear snow bibbs ths thi year. >> thank you. >>> meantime, totally different story developing in california. firefighters are scrambling to beat back a wildfire before high winds move in. the fire has already scorched more tha

mayo. you want to trade out for agua. a stray shower up in the north bay. percentage, 35% to 40%. let's check the drive. mike is always watching the numbers on the highways. a hurry up and wait day. >> it is wa a situation where i was really worried about. folks moving west for the bay bridge and split off down towards oakland. this over on the shoulder. big rig hit by this little cavalier right here. chp arrived. there was a good deal of slowing for three to four minutes. they started to move more smoothly. it is not a big deal. they always see stuff going on. the bay bridge toll plaza as folks get through the area, moving smoothly. the build continuing past the 880 overcrossing. we are looking over toward the maps of the area. as you are coming down through berkeley and emeryville, you are seeing the volume causing the issue of slowing. a nice drive coming out of richmond as well. 24, the caldecott, no problems, oakland past the oracle arena. 7:30 game time. jamming up now as you are coming towards 84. no updates. it sounds like they are moving out. i see the speeds picking up. watch for the activity, thou

mayo. if you're heading out, you want to stay hydrated drinking lots of agua. stray shower quite possible. 5:18, let's see what mike is tracking. >> since you're talking about cinco my i don't, come to livermore where we're celebrating cinco dem maui. i didn't make it up. we've been seeing heavy traffic for the last week. this is 84. dumbarton bridge, and the san mateo bridge both moving smoothly, 101, 280 also moving very smoothly at the limit. see the volume of traffic starting to shape upcoming off 880 westbound with the taillights, volume moving steadily over the span. we'll also look at the eastshore freeway approaching the bay bridge. here is the nice slow move through berkeley. we'll look at the map. the carcinas and benicia bridges move smoothly. still slow towards highway 12. the earlier stalled supposedly cleared from the roadway. wind as well as a brush fire and a tree down 128 at scott. that's just north of calistoga for the north bay. >>> community groups in berkeley making it clear they want their city to stay drone-free. the berkeley peace and justice commission along with its police review commissio