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

and that's the opportunity, we think, with morgan stanley. and it's got much more to go. let's look at the chart itself. this is a one-year chart and what's important here is the authority of the 24 level. and how we broke out above that level and now we're quailing just a little bit above it. keep your mind on 24 and look at some longer term charts. that 24 level is also a break above the downtrend line that's been in effect four of the last five years and if you look at the last chart, it's also a five-year chart, it's juxtaposed again, where we are now in relation to what you call a double bottom, and where i think we're headed, 30, 31. a lot of opportunity here. we like it and the stock was up today in a very bad day for the market. >> yeah, and that was a good sign, certainly. mike, what do you think? >> you know, it's really hard for me to chase stocks that have had as strong a run as all the financials, frankly have. morgan stanley, also. the company has transformed itself a little bit. when we look at it, less of the trading revenue.

morgan stanley bank or to deliver a twitter i.p.o. cup a finalist we also talk with that david stockman who warned about systemic risk in the excel rating debt burden and then we broke new ground with prime interest producer justin underhill hitting the monetary base against the broader money supply chain and the final lap we talked of the old warhorses bernanke us last stand and diamondback things are joining me is make sure you come back on monday when we reveal the winner of the banker's cup race that's our show for today be sure to follow us on facebook facebook dot com slash prime interest and you can follow me on twitter at perry and artsy from all of us here at prime interest i'm perry and boring have a great night. here's mitt romney trying to figure out the name of that thing that the americans call. i'm sorry i mean the guy you're not alone but you sir are you know what that is my son. wants to see the future is. the only liberal democrats. believe that it's. going to put you to distract us from what you and i should care ab

morgan stanley banker to deliver a twitter i.p.o. cup final and we also talk with david stockman who warned about systemic risk in the celebrating debt burden and then we broke new ground with prime interest producer justin underhill hitting the monetary base against the broader money supply chain and the final lap we talked of the old warhorses last stand and diamondback things are joining me make sure you come back on monday when we reveal the winner of the banker's raise that's our show for today be sure to follow us on facebook facebook dot com slash prime interest and you can follow me on twitter at perry and artsy all. us here at prime interest i'm parry and boring have a great night. live. live. live overload. her mother live. the speech. her her her her luck whistlin. closer look a little bit misleading good luck or luck. just see. her. on the runway a little little . if. live. live. live. live live live . all planes carry al strikes inside syria and israel's defense ministry refuses to go fund or deny widespread reports its

expert to what payroll that's right cynthia gaylord hails from morgan stanley and their seventeen years investment banking experience include work with facebook and linked in investors and facebook to love i.p.o. are still reeling in from a disappointing start and mixed earnings results hopes are about twitter will be able to tap in new revenue streams without drawing user anger all right let's get to what's in your interest. david stockman was president reagan's budget director from one thousand nine hundred one to one thousand nine hundred five prior to that he was a member in the u.s. house of representatives and after his time in the public sector he worked on wall street he ended up and private actor equity and as a part of that he became the c.e.o. of collins and aikman which is an artist of fire he has released a new book called the great deformation and where she's highly critical of the establishment and the federal reserve now some of his his biggest critics include mark thoma an economics professor at the university of oregon and he awarded stockman with the weight not of the

morgan stanley banker to deliver a twitter i.p.o. cup finalists we also talk with david stockman who warned about systemic risk in the excel rating debt burden and then we broke new ground with prime interest producer justin underhill pitting the monetary base against the broader money supply chain in the final lap and we talked about the old warhorses bernanke used last stand and diamondback things are joining me is make sure you come back on monday when we reveal the winner of the banker's cup raise that's our show for today be sure to follow us on facebook facebook dot com slash prime interest and you can follow me on twitter at perry and r.t. all of us here at prime interest i am perry and boring have a great night. little . live live. live. live legal eagle. live. speak your language. programs and documentaries in arabic it's all here on. reporting from the we'll talk sports the v.i.p.'s interviews intriguing story tell you. try. to find out more visit our big. breaking news here on out see the u.s. official say israel has bombe

expert to what payroll that's right cynthia gaylord hails from morgan stanley and her seventeen years investment banking experience include work with facebook and linked in investors and facebook club i.p.o. are still reeling in from a disappointing star in mixed earnings results hopes are that twitter will be able to tap in new revenue streams without drawing user anger all right let's get to what's in your interest. david stockman was president reagan's budget director from one nine hundred eighty one to one thousand nine hundred five prior to that he was a member of the u.s. house of representatives and after his time in the public sector he worked on wall street he ended up in private equity and as a part of that he became the c.e.o. of collins and aikman which is an auto supplier he has released a new book called the great deformation and where she's highly critical of the establishment and the federal reserve now some of his his biggest critics include mark thoma an economics professor at the university of oregon and he awarded stockmen with the wake of the day award and of cour

. >>> morgan stanley holding the annual shareholder meeting. a lot of those shareholders are very angry and restless, not at all thrilled with the ceo's performance. the shares are down 25% since he took over three years ago. we'll talk about that next. morgan stanley, though, is up 3% today. >>> and is the nation's food supply at risk due to a declining honey bee population? we're back in two minutes' time. >>> take a look at shares of sony. they're surging today, up almost 11% now. billionaire hedge fund manager daniel lobe wants the company to sell up to 20% of the entertainment business and use that money to prop of its ailing unit. >> ty, up to you. >> sue, morgan stanley holding the annual meeting today. james gorman was expected to get heat from shareholders about the share price the shares down 20% since he became the ceo three years ago. mary thompson is covering the meeting for you. hi, mary. >> reporter: hey there, tyler, the meeting was a quick 55 minutes, not only a lot of heat about the share price at the meeting. however gorman a

morgan stanley selling at 30% discount to book value.ther very strong buy. >> dick, always great to speak with you. dick bove of rafferty capital. bank of america, regents financial, morgan stanley among the ones he likes. guy adami -- >> u.s. bancorp. do i have to pick one of his? he's dressed in black for a reason. >> you're not picking one of his. >> no. doc's point, 52-week high. he's correct except the s&p is now effectively at an all-time high. so 52-week high is not that great, i guess. you look at u.s. bancorp, which is a bank that's on a four or five-year high. i get there's no beta in usb. but if you want somewhere where i think you're going to be safe and i think you're going to get some appreciation, u.s. bancorp is where to be. >> mike kuo, what did you see in the options pits in terms of momentum for some of these banks that are at multiyear highs at this point? >> it's really interesting. we continue to see people pretty bullish. and i think dick pretty much hit the most important point. it used to be we thought some of th

>> actually, morgan stanley right now. i think there's a few points to make on morgan stanley.umber one is the death of the financial adviser has been greatly exaggerated. we certainly have more complicated tax situation going on now, not less. the high touch financial adviser model has its place in the world. i think the consolidation, the salomon smith barney marriage enwith them, there's a couple things people have missed. it's going to be more of a market multiple business instead of the volatile trading-type revenues they've had historically. secondly, they're going to pull over $50 billion in deposits with the company in the merger. i think people underestimated the profitability of this merger for them. >> you say the stock's cheap? >> i think it's very cheap. people have not figured out what the real earnings estimates are going to be. >> morgan's one of my favorites in the space. i do like that one. i know everybody wants to gr tg towards goldman sachs but i like morgan in the space a little better. >> there are questions about the ability banks to grow their earnings

morgan stanley's chair price has been horrendous.e the directors' faces and hear them speak and make sure someone else was on the scene besides management. how do we on the outside know that the directors, the independent directors are not simply rubber stafrms for management proposals so i was reassuring that they had a chance to answer that question. >> gorman was also asked questions in a bit of a huddle that we had with the press afterwards about the fixed income business which has been a tough one for morgan stanly and it's been undergoing, as he mentioned a long-term turnaround. he said the key to this is reducing rwa or risk-weighted assets which he said would get to under 200 million by 2060. do you think that's enough for that business? >> i'm not sure. on the one hand, ubs is pulling back a lot more and they're reducing assets by 90%. on the other hand you had big players such as j.p. morgan and goldman sachs. i'm not sure the directors showed how tough they could be and holding management's feet to the fire and on the othe

>> let's ask david darst of morgan stanley wealth management.ome stats at the beginning of the show. over the last four weeks, you have the russell, the mid-cap, the nasdaq up almost 9% in four weeks. that's fast. is it too fast? >> scott, the banks, u.s. stocks, with listen, there's ten bad things and there's seven good things. the ten bad things, the empire state manufacturing, weak. the philly fed, weak. factory orders, durable good orders, weak. ism manufacturing, ism non-manufacturing, greece and china are slowing. you have the new jobless claims, that number, nine, they jumped by 32,000 to 360. and you had the fed guyç from n francisco talking about, when are they going to start reducing and john williams, the stimulus, the monetary stimulus, the quantitative easing. those are the negatives. the positives are quite good, too, though. number one, you have the reduced perception of tail risk. greek bonds are yielding 8.6%. a year ago, they were yielding 30%. they've gone in price from 13 to 60. that's amazing. they're the best-performing as

explain it to us, the morgan stanley rebalancing, why this is causing so much chaos at the end of the>> maria, this can lead to tremendous portfolio shifts in the index. if you're underweight, you're going to be adding there. if you're overweight, versus the index, you're going to be selling. that creates this $3 billion imbalance. i would just say, maria, we saw you a minute ago driving the tesla car. >> right. >> let me just say, if you were driving it, it would never need to have a recharge of electricity, because it would come from you. >> that's good! i like that. >> it would come from you! >> thank you very much. kyle, what's your take on this? 135 points on the downside for the dow jones industrial average. >> it plays right into the theme that we talked about a little bit offline, which is needing to be proactively patient and cautious with respect to taking any big bets at these levels, because you can see, maria, that at any point in time, the market doesn't now sell-off with these reactions 20, 30, 40 points, they're 150, 200-point drops. so you want to be very careful wher

morgan stanley raising the price target for a stealth winner. test tesla is up. up from a $47 price target. so are they too late to -- well obviously they are too late to the party. thank you, morgan stanley for raising the rating here on tesla days later. >> it seems absurd. absolutely absurd. tesla is so disconnected from -- >> from reality, fundamentals -- >> from gravity or any kind of force in the universe. >> tremendous reversal today it's a massive range. and i wouldn't want to touch it. but if you're in it respect that reversal day today. >> what was interesting, also had a note out where they've got a $27 target and they say you have to go two to three times the sales estimates on the model to actually get to anywhere close where morgan stanley is. also morgan stanley does this on dcf, and it's very different than an earnings related model. which means they can plug in assumptions and in this case, they have the average cost of capital. the more you drop that the higher up your price goes and there's a lot of ways to get the number. >> it was a 15-year d

shares of morgan stanley up 85%, goldman sachs 62.5%, jpmorgan up 53%, the s&p 500 just 27%.still feeling the sting of the fallout, swarms of litigation and the stock is down $18, it's gotten one suit tossed out, the stock is still down 30% from that $38 price. finally, the nasdaq, shares have definitely rebounded hitting a 12 1/2 year high, nearly $31 a share but the exchange has had to pony up some $62 million to compensate investors that lost money in a deal and still awaiting a fine being slapped by the sec citing that sec action impending nasdaq today and declined an interview. scott we'll send it back to you. >> facebook the worst performing nasdaq 100 stock over the past year. i got a lot of facebook likers though. >> we're long facebook and if you look at the chart in facebook right now, look at the 200-day moving average it comes in around the $24, $25 range and the stock hasn't gone below that in the last three months. it's setting up a nice space and could go higher. >> how has mark zuckerberg done in his first year as a company ceo? jeffrey sonnenfeld is senior as

morgan stanley, bank of america, goldman sachs are the standouts. rise we will see continued strength. i do want to point out it is morgan stanley with 1.6% gain today. kelly? >> we're also keeping an eye on shares of lionsgate rallying today. the stock is up more than 7% today. julia boorstin joins us with an exclusive interview with lionsgate vice chairman michael burns. kelly? >> thank you so much for joining us today, michael. >> thank you. >> well, i think we're in the right place at the right time with a lot of hard work. it's all about content now. we have an enormous library. we make a lot of content. if you take our acquisitions and you take the content that we've made, both television and future film, we've invested $6 billion over the last dozen years. probably close to a billion dollars this year. >> your stock is up 110% over the past 12 months. how can you keep up this kind of growth? >> you know, it's what have you done for us lately? i'll tell you that again it's blocking and tackling. if you look at our library of over 15,000 titles

working with morgan stanley and citi? the stock is on fire.ing up, we're talking to the boss, kazuo hirai here exclusively to explain in an interview you can't afford to miss. back in a moment. lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving. see it in action at blackberry.com/z10 >>> tesla certainly has been super charging investors' portfolios recently. it's doubled this month alone. it's up an astounding 200% year-to-date. now the company is planning to super charge america to help fill up its own car sales. >> a few minutes ago, tesla unveiled its plans for its super charger network over the next couple of years. let me show you a map of the united states, and you'll see how this network, which is basically six super charging stations, or eight right now in the u.s., mainly in california and the northeast, how it's going to grow over the next couple of years, gradually with chicago, texas, and colorado being added, and eventually you will see a super charger

so i go to my broker, let's pick morgan stanley, okay, i like them. let's pick morgan stanley. i call mike. let's call my broker, kelly. i say, hey, listen, mike, this morning, the market looks pretty good. i need 200,000 shares of eog, where can i buy it? the first thing he says, are you out of your mind? after the unbelievable quarter, there's no stock for sale around here, at these prices, not at all. i say, oh, come on, mike. you've got to give me an orange around here. you've got to find some stock for me. soim place around the last sale. mike says, like, i would like my desk to short you the stock and then find stock among the account base, but it's too hot and try trading desk will be subject to a short squeeze. so i say, mike, canvas your customer and see who will sell me stock. and then he text to his networks, a size buyer of eog. that's me. within a few minutes, mike comes back, listen cramer, i've got sellers, but they don't live here. they live up a few points. that means they're not willing to sell here, they sell higher. i think i can find you, mike says, 50,000

morgan stanley, shareholders approving its 2012 comp plan.man also saying that the firm hopes to deliver on its roe goal of 10% by 2014. other banks moving higher as well today. goldman, bank of america, and citi. bill, back to you. >> josh, thank you. >>> meantime, shares of sony have hit a new high today, up 10% on the news that the company may have to spin off certain divisions at the behest of an activist shareholder. let's get to the man who broke the story overnight, our own andrew ross sorkin. tell us more. >> i'll tell you, the biggest thing that's happened over the past couple of hours is that sony is trying to create a clampdown in tokyo over the vocal media there, trying to tell them that this is not an effort to break up the company, that this is not an effort to split anything, and that all of the attack that they've had with dan loeb has been amicable and friendly. i'll say, dan loeb has tried to portray these talks as friendly as well. but if you read through the letter and go through the different specifics, it's clear that th

there was a big party at morgan stanley after the peso devaluation people from all over wall street carrying they drank champagne and smoked cigars and congratulated themselves these people are pirates international pirates talk makes going to call them as they can their own figures to share washington's globalization campaign is a sham this short growth shows any gains from international trade. in total commerce within the country leaving no nit games just huge disruption to communities the author of that report joins us talk to call this thing us what did you find. i found that in fact international trade benefited only a tiny group of the super rich globalization's been great for them not for the world the rest of us pay twice first for more imports then high interest on the loans to for them. the federal reserve is not actually federal it's a private corporation owned by a consortium of wall street banks they pay the feds economists like ben bernanke you to come up with the hold watch that gets people to troy the tequila trip but i think you claim globalization opening up to internationa

it was from morgan stanley. he said -- this illustrates most of the buying has come from shorts covered rather than those longs bought. and you this morning, you this morning talked about buy backs on squawk on the street. i tweeted out how sustainable is that. in the end i have to ask you one important question. i got on this this morning at 4:00. >> i saw this post who raised the question, he is a smart guy. he pulled the plug on netflix in january 2007, concerned about valuation. when the nasdaq was 1200 on its way to 5,000. today are we on our way to 5,000? are we ready to come back in? >> no. look. in november 23, let's go back. so let's just do it. we had advanced during that period. >> all right. if you don't like the comparison and i talked to guys who have been in the market for a very long time. you see companies like quest core and -- >> what? cut in half. cut in half. >> those are odd ball names. >> thank you. they are all odd ball. these are companies with real earnings. these are real earnings. >>

key shareholder vote approaches possibly leading up to morgan stanley -- jpmorgan, rather, chief jamie at least one of his jobs, the one as chairman and maybe ceo as well. charlie, they just want to split it, at least some people out there. >> reporter: okay. the vote is tuesday. just a little backdrop here. the vote is to split up the chairman and the ceo. the good governance people think that's a decent idea since jpmorgan's been hit with a bunch of scandals lately. i think they're minor. jamie dimon says it diminishes his power, and guess what? these scandals are sort of inflated beyond belief. the $6 billion trading loss? guess what? they made $20 billion last year. i think this is a concerted attack by people who don't like him. he's been a big critic of the obama administration's policies. liz: two shareholder sort of groups who are speaking -- >> reporter: yeah, there's -- liz: not necessarily political. >> reporter: we don't know yet. you have the good government types, you have unions, you have people that are in the public pension fund movement who are looking to split this j

> they freaked out, the institutions they knew and loved like goldman and mo began stanley -- morgan stanley were going down, and there was no run on retail banks. anyway -- >> if it had been -- if they had known that, they probably still would have done the same thing. but it would have been -- >> no, paulson was bad. paulson was bad. >> okay. i think of him as well meaning. >> yeah. but he was in the wrong job. he was an m&a -- >> right, right. >> and you know what m&a guys are like, right? >> yes. >> okay. i was one too. >> yes, i know. yes, right. >> moving around the world doing deals, and he didn't understand it's not the job of the treasury secretary to do deals. >> right. >> and he got himself all hot and bothered and lathered and sweaty, and all of a sudden he, basically, thought he was running the world. he did. and bush had no clue, and they were -- treasury took over. i call it an internal coup d'etat because congress was totally buffaloed they were scared to death, bernanke runs around talking about the great recession which is a lot of bs, never anywhere close to a great recess

. >> morgan stanley put out a great piece of research.ered me because i wanted to do this two weeks ago. they got it out ahead of me, but you know what? i'm like a tv talk show host. we know analyst -- and that's good, that's going to be on twitter because he's just a talk show host. it doesn't matter, it's still all right. another reputable source besides "mad money" had thero this, too. the mad money team had it and the morgan stanley team, which i will match our team up against their team. anyway, how much would baxter be work on the breakup? >> the side of the business is expected to earn $2.94 last year. the higher traded between 21 times earnings and to celgene's much higher than that. that gives you a $55 stock. the medical products division. say that trades at 31, and why don't we add all of these together in. >> you get 87 1/2 dollars dollars and that's 19.5 from where it is now and that's the value of baxter you can create with the stroke of a pen. that's right, it would be up that much. if a hundred morning and we came in and a

the morgan stanley analysts today came out and gave the stock a price target upper from 47. calls a 15-year discounted cash flow model to take into account the maturation of everything going forward. the question, can you do that 15 years out? >> cole? >> you know, i think that i know adam, the analyst at morgan stanley, and the way you look at that report is how you have to look at tesla, not something other than that long duration venture capital investment in terms of where they're going in the future. so it's a function of what's the business model, what's the probability of them being successful in what it is they're doing, and how big is the market as we go forward in time. and where they've positioned the company at right now, you know, they've really got themselves in a great spot on go-forward basis. there's a lot less risk in the stock today than there was six months ago, prior to getting cars out in the market place. >> and phil, you've probably driven one. i know you have. you did that tour. everyone i've talked to loves the car. 99 out of 100 on consumer reports

let's take a look at some of these name, goldman, morgan stanley, bank of america and jpmorgan hittingd if you look at the s&p financial sector, four of the names in that sector, all-time highs, so definitely a strong performance today. david: we're going to be talking a lot about interest rates this hour and whether they're going up or down. they had been worrying people because the rates had been going up, but today everybody was buying into the treasuries, that meant that the ratts came down. that affected a lot of things. let's talk about gold in particular because an interesting factor is that gold is actually going up, and all the gold stocks like barrick are hitting really big highs today. >> reporter: yeah. and barrick was mentioned yesterday by one of your guests -- david: he was, indeed. >> reporter: gold had a little bit of a choppy session, but it certainly closed the session higher. oil too. that as the dollar is -- liz: i do want to just quickly look at tesla because it's up, albeit just slightly, half a percent. but elon musk making some big commentsal all things digital

the baton had to go from the morgan stanleys of the world to the morgan stanley of main street.words, if people didn't buy when interest rates were low, and they pick up. will they buy, now i've got to go or miss it completely. >> i don't like markets driven by fear first and foremost, but people will continue to buy. i bought my first house at 8% and second 12% and i wasn't scared. charles: you're dating yourself. [laughter] >> but what i bought, i bought an affordable house for myself. and that's what people need to understand. and realize at 3.9%, it's not making your mortgage payment go up that much. it really isn't. now, we get up in the 5's and the 8's and then we need to buy less of a house and spend a little less. but this isn't really going to affect -- we're still going to see housing trend upward like we have. charles: i'm looking at a few weird things, i looked at recently lumber prices are down a lot and recently new home sales and data shows that supplies are starting to climb a little bit. have we hit a little bit of a hiccup is this it's been a huge run. >> no, w

. >> morgan stanley put out a great piece of research. me because i wanted to do this two weeks ago. they got it out ahead of me, but you know what? i'm like a tv talk show host. we know analyst -- and that's good, that's going to be on tweter because he's just a talk show host. it doesn't matter, it's still all right. another reputable source besides "mad money" had thero this, too. the mad money team had it and the morgan stanley team, which i will match our team up against their team. anyway, how much would baxter be work on the breakup? >> the side of the business is expected to earn $2.94 last year. the higher traded between 21 times earnings and to celgene's much higher than that. that gives you a $55 stock. the medical products division. say that trades at 31, and why don't we add all of these together in. >> you get 87 1/2 dollars dollars and that's 19.5 from where it is now and that's the value of baxter you can create with the stroke of a pen. that's right, it would be up that much. if a hundred morning and we came in and announ

earlier this week, morgan stanley recommend that baxter split itself along the lines i'm suggesting.e. i wanted to do this two weeks ago. they got it out ahead of me. they're paying like a gazillion dollars. now we know management has at least that's what it will be on twitter. a talk show host. that's okay. it's still right. least, another reputable source besides "mad money" had this view. so it's like, the "mad money" team had it and also the morgan stanley team, of which i will match our team up against their team. anyway, how much would baxter be worth on a breakup in the bio sciences business is expected to earn doctor 2.94. the high flyers traded 21 times earnings. let's be conservative. let's say they can trade at 19 times earnings. celgene is much higher than that. let's call it investigation. the medical products division, a 1.84. that's concerning, you got a 38.28 stock. why don't we add these together? you get about 87.5 dollars. and again, that's simply the value of baxter could create with the stroke of a pen. that's right. it would be up that much. i believe if on mond

it was written by morgan stanley, passed by house financial services.s citigroup's response. citi has taken a lead role to find a common sense solution. they don't like the regular lugs. the result of this club racing, i love that word, the result of this collaboration is allowing to an approach to the transaction -- >> they are right. this is a good thing because we had so much fun in 2008 and 200 the in the financial crisis when all tax dollars went to bail them out. they want it do this over again. >> and we should be clear. the thing that blew it all up was derivatives and they were traded out of one office in london at aig. the thing that took it from, you know, a forest fire to like this threatened the world, was that. >> yes. that why they want to deregulate again -- >> they make so much money on it. >> how five years, six years later, we want to say, we want to go back to permitting them to do it in the opaque world of black boxes. it is insane. >> this is tough technical stuff. we sat around at an editorial meeting this morning. we thought, man

wouldn't you know, david would be on from morgan stanley management and john as well. mr. dars.>> you said it. a good jobs report. here we go, taking off. >> you want to see profits? i tell you, europe is calming. europe is healing. the united states is healing better. japan is reforming. mexico is reforming. turkey, the phillipine, indonesia is emerging, china is slowing. those are the themes right now. >> but did this jobs report warrant this kind of response today, do you think? >> yes, it did. the market held in so well in april as you know, it was up 1.8%. it's been up seven months in a row as you know, bill. when you get a good number and a revision upward, it's phenomenal. there is 11,000 people out of work. we got to see that for the market to make really long-term gains. >> that's the thing. a lot of people are saying, yes, it's better than expected. it's certainly not a barn burner. it's okay. you got a real persistent issue in unemployment. is this warranted? >> i think what people are missing is the fact since the fed meeting, we have been kind of a little bit flat a

in fact, even morgan stanley, a real adt hater for some timeup graded the stock. is the stock now ready to rally? let's speak to the ceo of adt and find out more about his prospects. welcome to "mad money." >> my pleasure. >> we think there is a lot of ways to win, we to the on the conference call, you were a little conservative. that was my judgment, because you talked about housing is a headwind as well as a tailwind and you had to spend more which hurt the gross margins. well, these things in the second half be a headwind and spend continue. >> let me start with the housing market. medium to long-term housing is a great process for us. as they build more house, as you said, they will put more security systems in, net, net, it's a positive n. in the short term, we have a little headwind because of the disconnect as people move from one home to the next. we lock at that as a two-fer opportunity for us. >> let's talk about housing. people talk about building million dollar homes. what if they build a million two? is that a straight out tailwind? >> it should be. >

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

ross, back to you. >> jackie, thanks for that. >>> and morgan stanley holds its meeting today.d a turned around. the business is still struggling. iss glasgow is split over whether the shareholders should aprocedure gorman's compensation. they're divided on whether shareholders should afrof the pay plan at goldman sachs. as far as stocks are concerned, goldman is down a percent in frankfurt. morgan straply st flat. marty, thanks so much indeed for coming. what do you think they should do in terms of compensation and performance? is the balance wrong? >> well, as you look at it, there's been a severe shock to the system that some of these banks had to absorb. if you look at jpmorgan and wells fargo, they've come out the other side. we've had others, still having to regenerate their earnings in relation to where they were prior to this crisis. morgan stanley, if they're looking at consolidating, these are things that will eventually improve their returns and they'll be able to reduce their cost of equity and that's how they're going to continue to recreate shareholder value here.

morgan stanley making it sound like youtube is the next abc, nbc, cbs, fox, and time warner all combined. with massive market penetration and much love from both viewers and advertisers. i will go one step further. unlike apple, microsoft or yahoo! google does not need to buy netflix to grow faster, it's growing faster than netflix. which brings me to the real issue, valuation. with google, you're getting everything from google glasses to android, the new youtube monetization, some will pan out, and some could pan out big-time, which means that the company's earnings and revenues could be accelerating. so what does apple have next? what does apple have to compare with google? what have they got? what's going on at apple that could move the needle? not sure. don't know. can't say. beats me. one thing we do know, though, is that apple keeps missing earnings estimates, falling far short of them. wall street presumes that apple is going to miss the next quarter too. because unlike google, there are no new initiatives that could help apple beat or meet the estimates. there's a growing consens

for example, i was speaking with, let's say, a high ranking, former morgan stanley executive who we won'tyou probably know who it is from the description, but, you know, about five years ago when morgan stanley bought a brokerage firm, there was a fairly extensive chat with about a hundred senior exec ties. bloomberg reporter was in on that chat. now, that -- liz: electronic chat? >> no, not chat, but lick a town hall meeting to describe it. a bloomberg reporter listened in on his thing. this executive went and complained to the managing editor of bloomberg who says, you know, your guys snooping gorp cover. he said, that's with we do, we snoop. pointing to the executive. there is something that wall street has a problem with. do i snoop? you know mings i'm running all over getting stories, but where do i draw the line? i don't hack into phones. i don't lie about my identity. i don't think i would have to think hard, i don't think that i would -- if i got that number that i would call and snoop in. i think, i think i would -- i would basically explain who i was, and refuse to get off the p

then morgan stanley can, maintains its $9 price target on the stock which ended the day at $16.40.w, at this point i think, if you look at it from a normal, kind of pure retail perspective, i understand morgan stanley's reticence about it. i think what goldman saks sees is the potential for the company to turn itself around or year or so past the 12-month price target the amount of capital it will provide will give the company the ability to really turn the corner. >> is jcpenney shaping it sell up to be a acquisition? >> i think that tough right now. they have certain assets others would like, i don't think the company as a whole right now is particular hay attractive candidate for takeover largely because they continue to lever themselves up. lori: $3.8 billion in debt. >> 3.8 billion and 1.7 billion more coming. as they lever itself out, this is not so much as a take-out by a turnaround. david: do you lay sinking of this stock at the foot of ron johnson or not? >> not necessarily. he tried to do too much all at once. the more measured approach from mike ullman is probably smarte

morgan case, citigroup, banc of america, morgan stanley and goldman sachs. the times says lobbyists pressured regulators to soften rules for derivatives. derivatives are financial instruments often used for investment protection. >>> the largest u.s. retail industry group is objecting to an international pact aimed at improving working conditions if bangladesh garment factories. this comes after a building collapsed last month killing 1,100 factory workers. the national retail federation says the pact is too broad and too expensive. >>> singer/actress jennifer lopez has a new job. she's the creative officer of nuevo tv. lopez says she'll be involved in marketing. nuevo tv reaches 30 million homes in the u.s. >>> if diamonds are a girl's best friend, here's a way to put a value on that friendship. a 101 caret colorless diamond sold for a record $26.7 million at an auction wednesday in switzerland. the buyer was harry winston, the jewelry company. anne-marie, the diamond was described as flawless, as it should be, for that amount of money. >> thank you, ericka

we have an interesting note out of morgan stanley today. best idea list. >> it is so weather-related. pvh has come back strong from what was considered to be a disappointing quarter. underarmour is braking out and lululemon, a total battle ground stock and that's done well. if it's expensive it's working. >> what does that mean? >> not the stock. >> you're not talking multiple here. you're talking price of goods, let's just be clear. >> all of this comes back to the strong retail sales number. everything that i hear when you talk to a bank executive, what they'll tell you is we listen up on mortgage. when more people buy homes -- if you take a look at the stock of williams sonoma. this thing is a rocket ship. i regard that as the quint essential housing play because most of the things there cost far more than you can get anywhere else. it gapped up. when i was going over the charts they gapped up and they never filled the gap. it's such a bullish thing. >> interesting. the journal has a piece today about how it's really becoming the economy

. >>> let's talk to one of wall street aces, morgan stanley's u.s. chief equity strategist, adam parker. you want to jump in on this real quick. bonds sold off today, so the rates rose. you know this better than i to. 2.17%, the highest in many months. up 16 basis points. but stocks still had a good day. what do you make of it? >> better economic data. pure and simple. consumer confidence is up. as you know, a key -- in fact, in our model for earnings for the s&p 500, the biggest driver in that model right now is higher consumer confidence, the reason we see earnings growing into next year. so i think the fed has done its job. >> the kudlow theorem. i said earnings would outperform and profits are the mother's milk of stocks. i want to know why you have changed -- you have gone, by your own admission, changed your s&p forecast from 1434 to 1600. >> we did that with -- >> nice 10, 11%. >> over three months ago. >> why? >> the idea was that what we're calling this quarter, the second quarter, is the hall pass, which is there's a hall pass to the second

. >> if you look in the last two weeks, the morgan stanley cyclical index, relative to the morgan stanley index outperformed by 400 basis points. >> why is this? >> i think because of the global central bankers. >> global central bankers pouring it on. the only one left to pour it on is europe. but the asians are now cutting interest rates, following japan. they're all pouring it on. >> australia, south korea. we have it from all over the place. >> and europe catching up. druggy when he said we would consider negative interest rates, that was the unexpected part of that latest policy announcement the. equally importantly with europe, the fact they're taking a step away from austerity. so we have nonexistent growth in europe, record high unemployment rates. can't afford for that to continue. the fact they're going to give countries more time to hit their targets means the recession isn't as deep. so a relative improvement in expectations going forward. >> easy money from the central banks. let's jump to another topic. congressional budget office today out officially with good news. the lat

but you've got to see economists, morgan stanley, citi, j.p.and raising the earnings forecast. right now, it's all going to be not earnings, but it's going to be pe expansion, which has happened a lot, so you basically want to stick with some -- buy some health care, buy some medtronic, buy some johnson & johnson, buy some abbett, and get some energy into the portfolio. >> jeff, do you have any ideas on this friday? you gave us conceptually what you thought at this point, but you have specifics. >> well, i do. i think you want to stay close to home. i think a rising dollar and the weakness overseas means for another summer rental might be u.s. stocks. you know, thinking about areas like technology, which has not kept up with the overall market so far this year, but looks like on a return of business spending, might be a great place to at least wait that out here, over the summer months, as we start to see some momentum return there. so technology makes some sense. health care, also, as we look to the fall, and the implementation of these new he

the social network has hired morgan stanley's managing director cynthia gaylor to run corporate development. analysts say gaylor's experience at the firm includes providing insights into initial public offerings. twitter did not make gaylor available for comment. trends emerging on google could be moving the dow. suzy moat joins us today from the warwick business school in the uk - cheers to you. when did this first come to your attention? - it's more a case that google searches give us some insights into the early stages of traders making decisions. so whereas stock market data tell us something about actions that traders are taking in the markets, google data we thought, could potentially tell us something about the information that traders were looking for as they attempted to make those decisions. - what else did you find in your research, and specifically what words seem to be coming up the most? - we found that terms which were more financially relevant were better indicators of upcoming stock market moves. it obviously is a little bit difficult to say, "is this word financially relev