jpmorgan, morgan stanley, that's been the strong sector over the last two or three days. today, those stocks came out real strong. goldman sachs opened up above 170. jpmorgan came out above 42. wells was strong. morgan was strong. morgan stanley was strong as well. what happened, melissa? early strength was met with selling. they all rolled over and the s&ps went down with it. >> or is it just the fact the financials are bumping up against pre-lehman brothers levels? jpmorgan was approaching that level and then it pulls back. it just can't get beyond that. >> some of the ammunition for financials this week has come because not only have we gotten great numbers on housing, but we're starting to see -- you know, mbi announced today that a billion dollars of bad loans may be coming back into them. the point is if housing prices are stabilizing and going up, normalized earnings could be a whole lot better. that's why tomorrow's payroll number has big implications for the financials, i think. we already have seen -- not good for same store sales, but already priced in. the auto

but i'm getting that from senior people inside morgan stanley. >> morgan stanley down 1 1/2% right now. michelle, back to you. thanks, charlie. >> coming up next, we're going to come right back with the closing countdown. and then after the bell, cbs just minutes from reporting its second quarter results. that's ahead at 4:00 p.m. eastern time. bull market or bear, traders are always hungry for ideas. trading is all about strategy. and strategy... is all about information. heat mapping shows me where the money's moving. twenty five hundred stocks... one quick look. that's where the action is. plus, this amazing gadget... it's called the telephone. i can call td ameritrade anytime and talk trades, strategy... anything. td ameritrade. built by traders, for traders. this is what i need. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account. >>> bob pisani down on the floor of the new york stock exchange. stocks basically flat but some interesting moves late in the day. financials came off of their lows. they helped move the dow and the s&p off t

morgan stanley upgrades vale on valuation. markets like europe, brazil, and the u.s., and potential stronger iron ore pricing. i know it's got to be confusing. one guy likes it because of its valuation. the other guy hates it because of its valuation? it may seem crazy that on the same exact day two analysts come out with diametrically opposing opinions on one stock, but that's not because it's a mad, mad, mad world, but because of the way things work behind the curtain, behind the "vale" so to speak. hsbc has had a neutral on vale since the stock was at 12 this march. now the stock is up more 68% as the analysts just sat in the bleachers. after missing over $8 of up side, this guy downgrades vale to underweight, but at the same time even more curious, he increases his price target from 17 to 18.50. and he increases his iron ore price forecast from 2010 from down 10% to flat. even though the analysts think the business will do better than he thought, the guy still takes the rating down. i think we're going to start seeing this

i think hsbc's downgrade is wrong and morgan stanley's upgrade is very right. even though i'm a fan of all thinks vale, including the ski slopes, jerry vale, i know where the analysts are coming from. it's more about the way that analysts at big brokerage houses operate than it actually sells about vale's prospects. hsbc downgrades vale on valuation and expects a falloff in chinese demand for iron ore, and the negative effects of a stronger brazilian real combined with a weaker dollar. better denan in non-chinese markets like europe, brazil, and the u.s., and potential stronger iron ore pricing. i know it's got to be confusing. the other guy hates it because of its valuation? it may seem crazy that on the same exact day two analysts come out with diametrically opposing opinions on one stock, but that's not because it's a mad, mad, mad world, but because of the way things work behind the kurting, behind the "vale" so to speak. hsbc has had a neutral on vale since the stock was at 12 this march. now the stock is up more thanful% as the analysts just sat in the bl

and become chairman of morgan stanley. and then the job is over open to either gorman, right now he's number two, head of the mortgage department, or elite shama, head of the investment bank. a lot of people think it's going to be gorman. we'll have to see what happens. they tell me it's nothing imminent. i have a feeling it's somewhere in the middle that there is a preparation where signals are now pointing to jim gorman as being the ceo, but we'll have to see what happens. the other story i have, which is kind of the titillating one as you've mentioned before about our taxpayer dollars being used. it all revolves around -- and this is kind of making the rounds today. a woman by the name of sena senaz zamia, she was in fixed income sales at goldman sachs, she has gone to bank of america, and what the people at goldman sachs are telling me is this is the package -- at least this is the way i guess she described it to them. she's getting a guaranteed two-year deal, she's going to be making up to $15 million each year and he

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owns between 5% and morgan stanley owns 8%. i don't think it's a big issue. >> from your perspective, from what the administration put in place as incentives is going to help more technology be developed in the country and not just american workers and building batteries based on foreign technology? >> yes and i don't think we are that far behind the asian companies developing the batteries. they are in the lead right now. u.s. is probably considered secretary place as far as a region and europe behind the u.s. there a lot of u.s. companies that are going to get the brands and benefiting. a 1, 2, 3 out of massachusetts received a lot of grant money and will receive more in the future. this company is a company that many believe is going to be going public in the future and has enormous potential when it comes to electric car batteries. i think it's going too far to say these grants are just for the employment of people to build batteries with asian technology. i think it's different. >> one thing when you look at the list, obvi

morgan stanley smith barney. a new wealth management firm with over 130 years of experience. >>> back with nisha kataria, protege of michael jackson's. as we told you, she, her voice first attracted michael jackson. the song "i will always love you" played a key role in her connection. let's listen to a little of nisha singing it. ♪ and i will always love you ♪ i will always love you ♪ i will always love you >> nisha, you were 17 when you sang that? >> yeah, i was. >> wow. you said michael jackson said you have a sois of an angel. it is beautiful. what was it like recording with him? >> incredible. this is the man behind "billie jean" and those amazing songs. being in the studio and seeing the master at work, walk around the studio and come up with these ideas in his head right in front of you. he could come up with a melody and said nisha, sing this line. they would record it. it was amazing seeing him doing it right in front of me and giving me the song. it was an incredible feeling. >> nisha, when was the last

>> susie: morgan stanley is once again hiring, thanks to the market rebound. the wall street investment firm is looking to fill 400 trading and sales positions. morgan stanley cut its trading staff last year as it grappled with the credit crisis. but with its rivals pulling in big profits on fixed income and equity trading in recent quarters. morgan is moving to beef up those operations. >> paul: tomorrow, our friday market monitor guest is mark skousen, editor of the investing newsletter "forecasts and strategies." >> susie: your morning caffeine fix could soon cost a little more, as starbucks announced price changes today. in some cities, the coffee chain is charging up to 25 cents more for its most complex coffee concoctions like frappacinos. but it's trimming prices on some basic drinks by a nickel to ten cents. starbucks says the changes will go nationwide over the next few months. >> paul: no signs of the recession at jet blue. the airline has sold out of its $599 "all you can jet" passes. the company said it received overwhelming demand for the deal, wh

morgan stanley smith barney. wealth management firm with over 130 years of experience. >>> welcome back to "larry king live." i'm jim moret from "inside edition" sitting in for larry. the michael jackson custody case appears to be solved. charles sophie, psychiatrist, l.a. county department of chirp and family services. michelle golland, clinical psychologist and contributor to momlogic.com. and neal hersh is here. a family law torn and expert in custody issues. thanks a lot for joining us. a custody agreement is reached between katherine and debbie rowe to get visitation with her biological children from a medical standpoint, psychiatrist position, they don't know her as their mom. is this going to be difficult? >> they are not going to know anybody as their mom. that is probably the female in their life they may know the most, hopefully. it is a family member. that's really what you want to look for. a tight bond or one that has already started. so you can build on it. >> dr. golland, i'm sure they look at the

>> susie: morgan stanleys once agn hiring, thanks to the maet rebound. the wall street investment fm is looking tfill 400 trading and sales positions. morgan stanley c its trading staff last year as it graped wi the credit crisis. but with its rivals pulling biprofits on fixed income and equity tding in recent arters. morgan is mong to beef up those operations. >> paul: tomorrow, our fday market monor guest is mark skousen, editor of t investing newsletterforecasts and strategi." >> susie: yo morning caffeine fix could soonost a little more, as starbucksnnounced price changes toy. in some cities, e coffee chain is charging up to cents more for its most complex cofe concoctions ke frappacinos. t it's trimming prices on so basic drinks by a ckel to ten cents. starbucks says the changesill go nationwide over the nt few months. paul: no signs of the receion at jet blue. the airline has soldut of its 99 "all you can jet" passes. the company sa it received ovwhelming demand for the dealwhich allows unlimited travel betweeneptember 8 and october 8 on jet blue p

the capital markets play, morgan stanley, goldman sachs we're going to talk. citigroup actually rallied. if you look at citigroup, citigroup is about to bust above the 200-day moving average at 466. >> more importantly on citigroup, it's going to the $5 level, and institutions start looking at that. at it goes closer to $5 -- institutions start actually looking at that. as it goes closer to $5, was saw it costs $4 today. >> it's 30% away from $5. >> nobody -- nobody. >> the bigger picture is look at where it's come from. nobody wanted to touch financials a couple months. the government has said the bigger ones will not fail. the bigger ones will not fail. >> people have moved towards, you look to citi, look to bank of america, look now, the consumer-base money centers. we've talked about a lag in morgan stanley and goldman sachs. look at goldman sachs today. it was in negative territory almost the entire day. be careful. keep an eye on goldman sachs, volatility has dropped the stock down to a 19 versus an 80 just a couple months ago. i'm talking about a stock

morgan stanley losing money for three quarters.ot like looking at goldman and seeing the money be made. so they jump into action, with 400 new traders and salespeople. you just pointed out that the dow has gone up 50% since march. the price of oil has doubled in the past six months. that is trading activity that you want to jump into. they are not calling people like you and die. they are affecting their own companies' money. that is how and investments -- an investment bank makes money. and in this environment, it makes sense to hire these people. jealousy may pay off in the long run for morgan stanley. i do not know whether they have a shot or not at beating goldman, but they have to jump into action. you have not seen a market go up as much as this in decades. wall street wants to jump into the action and make money like everybody else, and morgan stanley is no different. jamie: and the other bit of news, j.p. morgan? >> j.p. morgan chase -- we had a legal watchdog join us, and he has been looking through paperwork. they gave $1

we bring in chief investment strategist with the morgan stanley. gentlemen, good to have you here today. we've been making a lot today how it's the one-month anniversary of the start of the summer rally. is this the start of the summer selloff? >> we think it would be worrisome if the market had a roar to the upside. it's up 48% for the s&p off its march low. it's up 58% for the equal weighted s&p which gives more weight to the small cap stocks. it's up 98% for the valueline, a larger universe including nasdaq stocks. >> it sounds like you're worried now. >> up 128% for financial stocks. this is a very healthy development taking a breather getting ready for the next leg up which we are fully expecting, phrase two of this big bull market move up. >> you are saying the market is ripe for a pullback. >> wait for the fed. fed meeting is tomorrow. want to hear one phrase coming out of the fed, and that is not for the foreseeable future in terms of having to fight inflation, not for the foreseeable future something to that effect. watch for that phrase t

. >> plus the morgan stanley emerging market index up 50% on the year. but are global markets ready for a pullback in some answers coming up. >> and then coming up after the bell, first they took taxpayer money, now some of the nation's largest banks could pull in nearly $39 billion in overdraft fees from those same tax-paying customers. is that adding insult to injury? we're going to discuss it today at 4:00 p.m. eastern. but first, the most active stocks on the new york stock exchange, led by citigroup and freddie mac. we'll be right back. thththththt. >>> hi, folks. i'm matt nesto with the "closing bell" realtime flash. i want to show you one of the hottest stocks in the russell 2000 small cap. e.w. scripps. ssp is the ticker. 30% higher here today.y. the company coming out with better than expected operating profit. they made four cents versus an 11-cent loss a year ago. the revenues were still down for this media company, but the media stocks, oh, how hot they've been. whether it's gannett or cbs. there's any number of them, and they're all doing ve

if it's a morgan stanley that they're talking to and they don't like the price morgan stanley's givinghem, they can go to one of the other banks. that's the way it works and the government can do that. but you need the best people on these deals. these are incredibly complex resolutions. aig operations all over the world, you've got to do it right. >> paul, still, it's got to sting when it comes to the obama administration and treasury seeing those headlines, right? when it comes to public perception there's an issue, isn't there? >> there is no question that the perceptologists are going to have a field day. it's such an easy issue to demagogue. and if that's the business you're in this is an easy one to do it on. there is a difference between due diligence and demagoguery. and i think everyone in washington involved in this, people at the fed, people at the treasury, people in the white house and on capitol hill are going to do their due diligence and i expect questions to be raised. but tony got it right. if you want the best talent disposing of those assets for the highest rate of

the capital markets play, morgan stanley, goldman sachs we're going to talk. citigroup actually rallied. it's about to bust above it's 200-day moving average. never would have thought that would happen. >> more importantly on citigroup, it's going to the $5 level, and institutions start looking at that. at it goes closer to $5 -- >> look where we came from. nobody wanted to touch financials a couple months. the government has said the bigger ones will not fail. >> you look at citi, bank of america, the consumer-based money centers, that's what's been working this week. look at goldman sachs today. it was in negative territory almost the entire day. be careful. keep an eye on goldman sachs, volatility has dropped the stock down to a 19 versus an 80 just a couple months ago. i'm talking about a stock that's been flatlining. if you like goldman sachs buy some protection along the way. it could be a great play, because you better have protection, because goldman sachs looks awfully weak. >> new 2009 high. >> surging sector. the railroads, they have managed the exp

boeing, morgan stanley and jeffries raising it. heading to 60. morgan stanley has 54. this after yesterday's announcement of the dream line we're all the problems it's had finally could be taking off year end. boeing stock is down a little bit on the session thus far. >> all right. scott, thanks so much. >>> every six months barron's ranks the stock pick of u.s. broke ranlg firms, the loser for the back half of 2008 straight to t to the top of the heap. here to explain how they went from worst to first and giving winning picks for the rest of the year. wedbush morgan is the largest independent securities firm and investment bankhead quartered on the west coast. thanks so much for joining us. tell us how you did it. >> well, starting in january, we made significant investments to our research capabilities. we tripled the number of analysts that we had on staff. we are actually the largest research -- equity research provider headquartered on the west coast now. we expanded the breadth of our coverage and got into new verticals such as life sciences and rounded out the o

morgan stanley and goldman sachs setting aside 34 billion this year, $3 billion. a support from paris where the french president nicholas sarkozia is clamping down. will president obama copy the french? bernanke should go. the other side, he is the eastern economist and ron ensana is here. one thing he will not take is the middle line. a small opinion on something. he's our senior analyst as well with the post of "street signs." let's get a check in on the rally. what's the headline. >> the important thing is the headline, but the housing numbers getting much of the attention and many stocks now up 60% in one month. take a look at a couple. you can look at them and this stock is almost 100% in the last month. a lot of distortions in the housing market and foreclosures and government programs. the fact is incrementally the news is getting better. look at the other stokes related. this is also doubled. a lost these stocks anded in lap the last several weeks, woe don't have any kind of top line growth. >> bab dasani, thank you. let's get to the panel. president obama

a lot of rumors on john mac, i think that morgan stanley is a good franchise.xtronics a great computer assembler company. not one of my favorite golds, you know what i like, but we've got a gold company, a bank, a -- well, they're a bank now, manufacturer for tech, we've got a big, big machinery company, an oil company, that is absolute perfection. ♪ hallelujah >> i think charles is cheating. not true. let's go to steve in nevada. steve? >> hi, how are you? >> not bad, steve, how are you? go ahead, steve. >> yes. >> top five holdings. >> caller: hello? >> yeah, steve, how you doing? >> caller: i'm doing pretty good. i heard about first solar. >> first solar. >> caller: and then d.o. >> diamond offshore. >> caller: and then nordic. >> and yahoo. >> caller: and then d.c. >> you're a fan, huh? strange metal that works. let's go over this. this is again, i think these portfolios are a little difficult so i'm going to fill everybody in. first solar, everybody knows that's the solar play i like other than ying lee. cut a hefty dividend today. we're a believer he has

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morgan stanley, this woman went cautious on the financials. late 2007, she remained and reiterated this in the middle of 2008 and she just went attractive when? may 2009. you didn't have to wait for mr. paulson yesterday. she was giving you the advice back in may. so it gives you on idea of who is hot and not. she has been dead right on. she picked out bank of america as her favorite name in the group. she had an earnings for next year of over $2. at the time, at the time it was trading at a 5 pe. now it's trading closer to an 8 or 9. how much acceleration from 11 to $17 the stock has made. you've got to like what's going on. the analysts have been right. you want to follow those that are right. >> all the financials have been doing really well this week. the xlf, that tracks all of these names, up 10% in the past week. karen, i know you're long on bank of america. when you see bank of america, how do you manage your position? >> i actually don't do anything. i realize -- you know, any reason you had to be short bank of america, they keep comi

morgan stanley smith barney. new wealth management firm with over 130 years of experience. - oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( chirp ) joint custody. - dog: phew... announcer: get work done now. communicate in less than a second with nextel direct connect. only on the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. laura: thanks for staying with us. i'm laura ingraham in for bill o'reilly. and in the at your beck and call segment tonight, recently on his radio show glenn got worked up by a caller talking about health care reform. >> what would you do? i'm asking you. what would you do to change this healthcare system for the better? after all, every time you people bring up costs, you don't care about

morgan stanley smith barney.ew wealth management firm with over 130 years of experience. >>> coming up the political plays of the week. was america's racial divide solved by bud light? sarah palin's numbers are in freefall. to turn it around she woos the republican party by canceling an event at the reagan library. that would be the ronald reagan. plus the multipython problem in the florida everglades next on "countdown." (announcer) some people don't just work. they work to make a difference. to make an impact. to improve the lives of others. they're people in positions of great power. the power to effect change. for them, career advancement is a goal. but not the only goal. for them, it's not about the money. although money is always nice. it's not about a corner office. it's about a greater good. there's a school for people like this. an online university where advanced degrees advance the quality of life. walden university. a higher degree. a higher purpose. >>> the beauty of the florida everglades ravaged by

>> morgan stanley, the better stock to own is hg. >> and another pop, what was it, 5%?ese solar company. if it has china in it, i don't want it. this stock was at $75 five years ago. now it's at $9. >> jacobs engineering? >> i thought this was a downer. >> it was a downer? i will tell you what, stocks trading $45. it was above $50. you want to be long. >> final pop, for all of your trustees out there, they are going to make "star trek" cologne. remake, great movie. you can now wear the scent of the trekkie. you know what, i have a feeling guy will have something to say about this. >> i have the ad. zoom in here on me, folks. "star trek" cologne, you, too, can go where no man has ever gone before. >> is that good or bad? oh, my god. spray me up, scottie. don't move. lots more "fast money" coming up. >>> on tonight's trader radar, we look at the stock lieding up screens across wall street today. originally a toy seller, this company spun oupt of that division, naming it kb toys. now it focuses on getting more bang for your buck, acquiring names like dollar bills and green

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jpmorgan above 40, morgan stanley above 30. and look at pending home sales, which we'll get into today. that basically tells you that residential housing has found a bottom, and who holds those loans? the names like bank of america, the names like jpmorgan. that's why -- >> you pointed that out on the halftime report, regional banks have great exposure in their portfolios to these types of loans. but karen, if the financials are able to move higher on the belief that perhaps the commercial real estate isn't as bad as it had been expected, you were one short iyr, which is the etf that tracks the reits. what's your position now? >> well, way less bearish. we talked about how a lot of the reits were able to issue equity. it absolutely seemed like an endless appetite for equity, and anyone who was able to get a deal done, that was it for us. we had forrest city is one we had been short for a long time. they had an offering a month or two ago. we were able to cover on that. i just can't be short when they're able to raise so much mo

morgan stanley smith barney. a new wealth management firm with over 130 years of experience. >>> us what you happy hour tops "the sunday funnies." >> president obama, of course, everyone knows has invited harvard professor henry louis gates and the police officer who arrested him to the white house for a beer. of course, this could be trouble, the last time obama got a few beers in him, he got general motors. >> big mistake. a president should never get involved in a local city-specific issue. president bush never did, no matter how flooded the city got. >> nobody is talking about some government takeover of health care. just telling your mom, nobody's messing with her doctor. >> you know a sales pitch is in trouble when it starts with, look, you've got to trust me, we're not going to kill your grandparents! >> i don't want to say at that president can't hold his liquor. but look what happened at this press conference this morning. >> do you think your administration needs to be taking a harder line with wall str

joining me here, david darst, chief investment strategist with morgan stanley. and directly to my right, jordan kimmel, market strategist with national securities, author of "the method of invest." so gentlemen, let's talk a little bit about the dollar. a lot of people scratching their heads. dollar strong, stocks strong as well. commodities kind of moving sideways. that hasn't happened recently. is this a sign that something -- there's a change in the air? >> global recovery is the theme. you've got germany, you've got japan recovering. the united states looks like -- you see the jobs number, robert, 240 this morning, 247. that means the fed's going to be able maybe with people starting to of month into mid next year rather than end next year raising rates. as you know, we learned in college, currencies were driven by trade. today they're driven by capital flows. thus interest rates. so if the economy's stronger here, looks like we're coming out faster than people thought, that's going to raise the interest rate, going to raise the currency. thus today unlike e

morgan stanley pressing 30. 3-4% and wells fargo and u.s. bank corp. the financials are strong and you would think it would be the market names that would be weak in the face of the news. >> that are goes to the strength of the market. the market would have been down 300 points on this. >> let's move on. shares of caterpillar and rallying more than 4% after reiterating the outlook under various scenarios. it's not willing to time out the economic recovery saying the timing is a little bit uncertain here. it seems like very, very good news. >> it is good news. you have to remember they will be selling into the areas that are getting the stimulus money too. they have come way down from where they were at the highs. they have gone in and made cost cuts. they probably can do well going forward and that is going to be a driver long-term. they are not seeing the bottom yet either. >> right. dennis, you popped up in the screen. >> i made it. bad traffic here in virginia  beach. >> absolutely. what's your feeling on caterpillar? is there an ancillary buy sinc

my clients are focused on jpmorgan, goldman sacks and morgan stanley continued to rally up. they think they are getting squishy. >> the last time you were on, you predicted 1100 was the next stop. are you standing by that or anything that makes you nervous. >> we will see a correction. the 2% to 3% correction is always a possibility. we are headed towards 1050 or 1100. >> is that blinking that i see there? >> always got to be -- we did go from 1100 to 1,000 in two days. i didn't think we were going from 1,000 to 1100. >> don't bring that up. >> i think it's a little odd that the white house came out and said they are projecting that unemployment tops 10%. i don't know why they would say that the day before the numbers. >> that's a hint. >> time for the daily look at the most widely followed stories at our website. we go with what's clicking. alan? >> we have an amazing story up on the humor blog right now. give me a job or i'll sue. apparently a young lady at college graduated with fay 2.7 gpa and couldn't find a job and she is turning around and suing her college that she d

>>reporter: ubs and morgan stanley are taking the lead û with claw backs on bonuses if deals turn sourerred payments so that bankers think more in the long-term. >>benson: there is clearly a huge amount of political pressure on both sides of the atlantic. to make changes to the bonus culture but let's not forget that this is performance related pay so people who perform well do need to get rewarded well. >>reporter: in new york eighteen point four billion dollars in bonuses were paid out this year despite the downturn. in response president obama is looking to cap wages at firms that are now receivingus government aid. >>flanagan: there is an over-hype creating a link between bonuses in the city and the downturn stroke recession. it is inevitable that in times of want people will look at those who have. and i think that is what's driving this. i also think that this is an unfortunate populist measure that the government is focusing on because it is easy to explain. >>reporter: yet the city now expects a slippery ride --fearing new regulation and political pressurefrom the uk authoritie

morgan stanley is going to own that. if the government splits off the investment bank, you know, i think that's going to be problematic. you know the investment bank has already lost a lot of good people. you know they need that cinergy with the commercial lending arm. so i think that would be value destroying. >> does citi need new management? >> well, you know, look, this is a very troubled company. and it already was a complex company before the crisis. so i think it's very difficult to manage anyway. and you know, vickran came in an a. pretty experienced ceo, incredibly smart guy. i don't know that they need to replace him. and by the way, if you do that, who's going to take the job? you know, i think we're probably two years out of way before they're out of the woods. liddy and guys like that realize you could come in at the 11th hour but it's still a tough spot to have and very difficult for your reputation. >> even good intentions can -- >> yeah, yeah. so i think, you know, vikram is probably on a little bit more

. >> reporter: morgan stanley has set aside $6 billion for bonuses despite its third straight quarterly loss. >> banks returning to the bad old days of before is really ignoring the mood of the country. >> reporter: beyond the bonus pools, there are other signs that some wealthy americans may be returning to precrisis habits. as much of the country remains in deep economic distress. there are again magazine spreads on lavish homes in the hamptons. and the latest fashion magazine features a $26,000 crocodile bag and $4,000 mink and leather boots. >> it's like you're taking care of yourself, you're treating yourself. and i think people who have the means to do this are not holding back. >> reporter: as for the bonuses, wall street firms say they're both justify and necessary to compete for top talent. but this is provided more ammunition to critics who worry that laugh vick pay packages may encourage excessive risk taking. lisa myers, nbc news, washington. >>> up next here tonight, celebrities who are bigger business than ever even though no longer with us. make one a double.s. she's fibe

you know goldman sachs and morgan stanley, the two biggest oil traders in the world, are probably buying oil futures, and that will push the price of, also at the worst kind. you could see the consumer really strapped. higher taxes, cap and trade. neil: why are stocks going up? >> here is what happens, when you deflate the currency, the price of everything goes up. the price of stocks goes up, the price of houses go up. the thing is, all prices are going up, you are no better off. neil: what we have seen, is it shortlived? >> i'm saying that things other than stocks are going to start to catch up. the loaf of bread, the gallon of gasoline, the wonderful tie you are wearing right now. neil: so this rally will not last? >> i think the rally is intact. it's the middle class tax increase goes into effect, if that happens, all bets are off. everything starts to go south. neil: thank you very much. all right, when it is cash for clunkers like drugs for drug addicts? when the cash is gone. going cold turkey is tough. and forget about whether the president is going to raise more taxes to get mor

. >>> morgan stanley is in the process of hiring 400 traders and sales people to dig itself out of as of losses. it's second quarter loss while goldman sachs reported stronger earnings. >>> southwest air lelines is on track to provide in-flight wi-fi service. that's it from cnbc. back to you at msnbc. >>> welcome back. i'd david schuster, live in washington. >> i'm alex witt in new york. president obama is kicking off his first summer vacation as presidents. this afternoon, he boarded marine one bound for camp david. the obamas, who are paying their own way, they are expected to say in an exclusive mansion on the blue herring farm. the president's vacation comes as confidence in his leadership has declined. a new poll finds 49% of americans have confidence that president obama will make the right editidecisions for the co. the over all approve rating stands out 57%. >>> the president's vacation comes at a time when the country is facing major economic blows. a conservative group which helped with the election in 2004 is is using obama's va kags as a part of a new ad. >> >>> right now

morgan stanley smith barney.f experience. >>> in florida tonight where alligators and crocodiles lurk in the waters a dangerous predator has emerged. a burmese python more than 17 feet long was caught on the grounds of a hospital near lake okeechobee. 17 feet long. these snake cans travel more than a mile in a day. they eat just about anything. thousands of pythons are on the loose. they were kept as pets and discarded by their owners. one man is on a mission to find them. >> reporter: joe wazaluski drives along a stretch of road that bisects florida's everglades. he is looking for snakes. one in particular. >> the next ten miles seem to be the hot spot for burmese pythons. >> reporter: a reptile expert is sanctioned by the state to hunt down and rid the glades of pythons. an extraordinary move to what scientists believe is a threat to the ecosystem. >> it is a large predator and they are eating everything in sight. >> reporter: 20 years ago there were none here, today perhaps 100,000. no one is sure. night is th

is it in fact the regional banks or is it the morgan stanleys and goldman sachs of the world? >> it starts with the morgan stanleys and the jpmorgans and it trickled down through the space. the guys doing their homework and the whole sector is being bought. when you see paulson going in, it's a headline number. >> at the same time these are out at the end of the sec and paulson at the end had 7% of the short financials and they are approaching the double for the year. it doesn't mean it's smart money. >> what we learned since august of' 07. nobody gets this market. everyone is perplexed. hedge funds are perplexed as the market goes higher. every day they get run over and the bet is on the bulls right now. >> always appreciate your insight from the floor of the stock exchange. it has been 40 years since woodstock and the baby boomers are talking about t. we have a trader who was live on the scene to tell you how you can stop it from the never-aging population. instant analysis from the $15 billion 30-year auction. the halftime report continues after this. blap welcome to the no

the five ceos of the five biggest investment houses bear stearns, maryland, goldman sachs and morgan stanley went to the sick and sen we're big boys this 12 /1 is to constraining let us take care of us and we will make sure we will not do anything stupid so the sec pass this there was very little public discussion 1% and iowa said this is dangerous it sounds like a lot of leverage but they said they will not go crazy we will give them a little buffer but they ended up going 40 /1 28 /1 at 12/1 you have a little room for error but not a lot. at 40 /1 there is your room for error. your assets dropped 3%, you are out of business or wiped out that is what happened with that amount of leverage they were borrowing short and lending long they happen 90 jlo's they were taking it at 1% and lending out 40 years at 2% but they were at capturing that but three months to recover again so when the 90 day money dried up the had to make the payment if they could they were paying groped for that division or that the instrument was broke 40 /1 turned up to be disastrous and again the companies asked for it. t

this is the best of breed showing their colors with goldman sachs, jpmorgan, morgan stanley.. >> unless they get the money off the aig fix as well. you saw that story. >> but it costs money to do what you need to do to aig to get the taxpayers' money back. >> 20% annualized return on their investment in the company. >> and there are people -- i watched the last hearing. the congresswoman from ohio, 20% will not be good enough for her on a return. they figure the government should be gouging these guys because they needed help. they say we should be getting  60%, 70%, 80%. >> i would say 20%. >> i would take 20% on anything. we were -- we held our nose trying to help the financial system. >> you have to remember, we were trying to help the economy. >> i know. >> we're trying to help everyone. >> and the economy -- >> if they pay back 20% i don't see how you continue to hold all of wall street in disrepute and disregard if they pay the money back with interest, you've got to let it go. >> or to question whether this was the right thing to do. there were questions at the time w

morgan stanley, goldman sachs, ubs, and barclay's are the lead underwriters.aybe you want to do some trades with them in order to get in on the emdeon ipo. let me make one thing extremely clear though. if you can't get any shares on the ipo, in other words, before it opens i don't want you to chase the stock in the after market. the opportunity here is to catch this one at too low a price as it comes public. not to pay off enormously once it starts trading. emdeon isn't just a hot ipo but also is a company that makes money. we didn't have that back in 1999 and 2000 when the tech bubble occurred. tech ipos then were hot and heavy and nobody cared about the underlying business. emdeon has a comprehensive sweep of payment and processing solutions. it's the top electronic medical billing system in the country. sound like president obama? and it's got its fingers in epayment, electronic prescriptions, revenue cycle management, and data and analytics. emdeon's platform helps health care providers control administrative costs. and we all know that health care costs c

. >> morgan stanley would be number five of. >> how has writing this book change youfinancial career? a lot in this sense i will not be on the sell side which means that will n be working at a trading desk with richard fuld. [laughter] or any of these guys. but i find interesting one week ago friday i got a call from steve shaw, i would call him the nuclear physicist type that really deeply the plate understood credit derivatives and he was s happy about the book in his role and he wanted to thank patrick for the portrayal of the credit analyst did he felt proud and he said wh don't you come up on the trading floor? i went there it was 5:30 p.m. on a friday afternoon. and the trading floor was half full. this is barclays that bought the remnants o lehman brothers brokerage it i the trading floor on seventh avenue i am not at the scene of the crime of back on the scene the sae trading floor are used to worknd i notice the corner office i said who is that man in the corner office? and steve said that is bob diamond price said bob diamond the seal of barclay's capital? he said yes and ho

. >> morgan stanley upgraded the media about three weeks ago and expectations of an advertising recovery to monitize video content in the digital age. >> i am constructively and optimistic that we are not going to see the devaluing of video content online the way we have with newspaper or news gathering and music as well. >> disney ceo said he is confident people pay for quality content and won't drop in the future. people remaining strong. all of the media giants have been stream lining models to improve margins, and another point in the favor, earnings in this sector have lag and the street has not taken into account expectations for recovery. >> as julia gives the report on advertising, let's bring in david. it is an industry he knows better than anybody. david, he sees light at the end of the tunnel. car companies advertising for now. do you think it's too early to say that? >> i think that the fact that we hit rock bottom doesn't necessarily mean we are going to see significant growth. in the press release and on the conference call he was saying things that got investors excited ab