equity strategist at morgan stanley.nges to your or folio, downgrading materials and upgrading technology. this is part of your continuing soft.ase for u.s. >> soffit does better in the second half of the year. one of our main course pieces is that capital spending will not be that small. companies will not go out and build company plan equipment. what are they going to do -- productivity. you want to own some software to the end of the year. with materials, we had a big that in u.s. chemicals, which benefits, and that worked really well over the last three years, and i think it was time to start taking profits. apex peaking? >> i think it could be. the consensus view is it will continue expanding. it might be peaking. that is probably going to create a more muted gdp out like, -- outlook. what did you learn? >> we track it pretty carefully. you need to things to be more bullish on capex. backlogs are bigger, meaning customers are ordering more, and you need ratios to the above 1. >> this is the nasdaq 100, heavily influ

[applause] morgan stanley ceo james gorman spoke about the 2008 financial crisis. from the new york ideas festival, this is 15 minutes. >> we have 16 minutes and 37 seconds, which is a version of speed dating. to dol do our best to try about five years of financial history in this time. everybody knows who james is. we have known each other a long time. let me find in and go back and we will do this quickly. looking back at history, a lot of chatter about what could've been done differently. 1990's to back to the the time of glass-steagall being repealed, to the time when a decision was made not to regulate over-the-counter , decisions not to impose tougher capital requirements on investment banks. if you take that time, the 10 years or so, what should we have done differently? >> great to be with you again. we have known each other a long time. for those of you who stayed for the banking portion, we appreciate that. i thought they were getting prizes outside as everybody got out to leave. i will try to adjust this and 45 seconds -- addressed this in 45 seconds. th

morgan stanley out way note saying vegas casinos will see higher growth rates than mccow.on't know how surprising this is. if you looked at the mccow data over the last couple of months. lower. >> pulled back. absolutely. >> how does this impact the stocks you buy? not buying las vegas sands? like it or not. >> look at wynn and listen to what steve wynn said on the last conference call talking about improvements, over 88%, up from 86% but also in the room rate. so they've been telling us about vegas now everybody is sort of starting to buy into the idea that vegas is not dead. as a matter of fact, vegas is growing. i think that if you read through the entire note, though, for morgan stanley, didn't necessarily say mccow is dead either. said pull back now. look out into the future, nothing but a growing market for sure. >> the growth forecast, right, it's growing. of course it's growing, but the growth rate may be cut in half. that impact, guys, the kind of stock you play as result of that news. >> not in any of these casino stocks but look at the price action and would rat

. >> goldman sachs and morgan stanley.about this, you know, i would say goldman sachs is a firm that tries to pride itself as being way above board in this. when this whole controversy, and and this is a controversy that both involves dark pools, those alternative exchanges like, you know, people don't trade on the new york stock exchange anymore or all their stock on the new york stock exchange or nasdaq. they go to these privately-owned exchanges to hide their trades. they think that lack of transparency is good so people don't front run them. goldman sachs and morgan stanley held themselves out to having some of the best dark pools in the business, the best ones in terms of how they disclose certain things to investors. but what we do know now is those facts and circumstances that eric schneiderman was talking about on our show about a month ago, that was in june, has led them to both morgan stanley and goldman sachs which is now under investigation. that doesn't mean he's going to bring charge, but we have a full write

advanced the compensation of junior employees at morgan stanley? create careers and keep talent. it is a competitive advantage. we are using the tools in our toolkit to make sure we are providing opportunities. experiment of delayed conversation and bonus, three or four or five years out, is that a field experience? i know you will not,, is that field for all of wall street -- i know you will not comment, is that failed for all of wall street? >> the regulators will make this common. >> comment on that? >> i think different compensation is here to stay. insisting ons are it. it is still a great place to go. i was there for 23 years. for young people if you look markets, it is a great experience. it is a great career. they are more highly regulated. if you love the markets, is a great place to work. >> jim head with morgan stanley. >> coming up, the oil boom in north dakota drawing lots of money. what is it going to the states neighbors? we are joined by the governor of south dakota, next, after the break. this is bloomberg "surveillance." streaming

the question gets raised, and a bank like morgan stanley compete under these kinds of regulatory restrictions when you have a whole bunch of other firms running around outside the system, hedge funds and private equity funds and pools of capital not subject to those restrictions? can you compete? do you stay is a bank holding company? do you go back as being an investment bank? >> the investment banking industry has disappeared. there are some boutique investment banks. large scale investment banks will not exist in the future. there will be bank regulated, and they should be. there should be one governance process. can we compete? absolutely. we purchase a business called smith barney from citigroup. he will break $2 trillion of financial assets in a business. phenomenal business. low capital usage, great returns. every institution has to look at where they can get the returns. and to adjust their business model accordingly. >> you are moving away from the capital intensive, highly regulated investment banking businesses? >> i would not say we are moving away from it. we have added the balla

we will hear from cancer biologist andrew hessel, hbo ceo richard pleplar, morgan stanley ceo james gorman. from the annual new york ideas festival, cancer biologist andrew hessel on how dna technology may help cure cancer. this event is hosted by the atlantic and the aspen institute. it is 15 minutes. before lunch, i will give you a quick rundown of some of my world. i am a cancer biologist, genetic scientist. i will run through a few things about cancer and drug development and some of the work i have been doing that i think you will find interesting. i am with a group normally known for design with a brand-new group in that company focused on bio design. cancer is a relatively straightforward disease, even a largee accumulated body of information on it. down,it on -- trip it all -- strip it all down and it is cells that have had their dna corrupted. if he keeps growing and starts to spread to the body, it it can crash the network essentially. the problem is, when you think about it, cancer is an infection , not with the microbe or a virus, but with one of your own whoes -- your own cell

including morgan stanley and others. >> thank you.oday, see you tomorrow, right now, it's time for "squawk on the street." >>> good thursday morning, welcome to "squawk on the street, i'm carl quintanilla with david faber at the new york stock exchange. what a morning for the premarket. futures up, then down, then up again, and down again. cisco has layoffs, down to 24 has claims are back to 300,000, biggest miss in 30 weeks. bilgest is the boon falling below 1% for the first time in

you keep want to saying morgan stanley. >> yeah. i have no knowledge of morgan stanley. it's j.p.as far as i know. >> all right, in a way, you say that how this has all played out, the fact that they went in in june and it wasn't until august that they were discovered, it's somewhat of a success story for j.p. morgan, is that right? >> yeah, i kind of look at it as i kind of look at it as a bit of a success story. it could have gone unnoticed for a significant time. jpmorgan does have a sophisticated cyber security organization. i think the success here is they detected it themselves. somebody did not have to come to them and say we found a problem. this happens often with the fbi or secret service going to the company and saying we found something. that is one success. secondly, i think there is success in the financial services information sharing and analysis center, which is at the nonprofit -- which is the nonprofit among community members. it looks like the information was shared quickly throughout the community and they were able to look at their own networks. that is a hug

morgan stanley note makes waves.ly getsiting to a point of cap x expanding. >> and a deal bigger than all energy u.s. m&a so far this year. >> $70 billion for that total ent enter surprise value. >> and the judge is back. >> welcome to the halftime show. we do begin with the markets. and stocks are picking up right where they left off on friday. gaining yet again. raising the question today of whether this correction is either over or nearing an end point. here is what big bear mark farber told cnbc. >> i think the rebound

morgan stanley that stock hit another new high.morgan stanley. >>> mcdonald's stock, little changed but new data reveals they're losing ground to millenials. people in 20s and 30s would rather spend more money on burger from five guys or burrito at chip pole tease than get a fast, cheap, decent burger from mcdonald. we have young ladies from the "varney & company." unbelievable. i'm going around the block so to speak, start with you, christie. why would you not go to mcdonald's. >> first of all, i don't know what is in it. i don't know what is in that hamburger meat. i'm a little appalled you called it a decent burger in your intro. i wrote the intro, it wasn't in there of you added that, number one. number two, i am not a fan of the chicken and the burgers. i just, i don't know where it comes from. when i go to the grocery store. i see what it looks like. i make it myself. stuart: we get to the point. you don't know where it comes from, you don't like it. kaitlin, why don't you like mcdonald's. >> i don't like it almost the same r

. >> model and morgan stanley had a piece out talking about that saying, look, these guys will be inuxury market. an award-winning car and now money and the ability to get out in front of people like there wasn't before with the model s. feel this could be a huge launch. look at the names, continue to perform to the upside. priceline another name. talking than yesterday. und heer the radar name. expedia, a 52-week high. august 1, 4th, 5th. these names outperforming the market when everybody is looking for what's working, what's not, those name have be working. some high pe names. >> twit. interesting. before the earnings closed 38 and change? a nice pop. given up some. does that cause you concern, jim? >> obviously, as value investor twitter doesn't fit into my sweet spot. having said that, i think twitter will do what facebook did. mired for a while and then move to the upside. >> twitter a great sell and popped up 52, $51, $52. i want to see it below 40, which i think it will get to. own facebook, trade twitter. >> fascinating to hear you a value guy talk about twitter and facebook

morgan stanley, revised downward to 3.2%. credit suisse and barclays bringing up the rear at 2.5% for the third quarter. kayla, the big story is that the relative strength in the third quarter remains after that upward revision to the second quarter. kayla? >> thanks for that, steve. keep an eye on that. especially after the better than expected numbers this morning. >>> in case you missed it, lendsing club, peer to peer low provider, planning to raise $500 million in a forthcoming ipo. gaining popularity focusing on consumer loans an area the banking industry shies away from. talking to us about ipo plans here on "squawk alley" a couple months ago. >> talk about the timing of an ipo, the thing in general, going public for lending club would be, would be really a, another transformative advance. a lot of our customers are investors, asking us, it's great. i love the service. how can i own a piece of the company? going public would be a way to do that. >> for those unfamiliar with lenden club, they offer a credited investors t

morgan stanley out today saying these guys are 20% higher than we expected them to be.ly production at the end of next year, 1,923 vehicles per week. that works out to a production rate of greater than 100,000 vehicles annually. by comparison, at about 800 vehicles we are week now. you can see a major ramp-up coming from the model x hits the seam pli line next year. july auto sales coming in from all automakers today. these are good number, but not quite as high as many expected. basically between 1% and 3% below the estimates. and nobody is complaining here. talk about general motors at the bottom. up 9.3% for the month of july. suv and truck sales up more than 25% in the month. turned in nice numbers there, but some people a little worried. fleet sales for the month up more than 20%. gm estimates that the july industry sales pace for the entire industry will come in about 16.7 million xreek vehicles. hearing that from a number of people inside the industry. look how far they've come over the last four, five years. go back to 2009 and you see the sales down at 10.4 mil

chief economist at trulia joins us along with our guest host gary kaminsky from morgan stanley.e we talk about housing we say better but we still wonder why it isn't even better. is it good or not? >> today's numbers are very good. construction is one of the lagging activities in this housing recovery. prices are almost back to normal. sales have been improving, they're more than back to normal. it's construction that's really been lagging especially in local markets that were really hard-hit in the housing bus. what we saw today, big increase, a lot of that was on the multifamily side. now people have been sort of downplaying the multifamily side because that's more volatile. that's been a big part of the construction recovery. when you look at the markets that are seeing a construction boom right now, relative to what's normal to them, it's places like new york and boston, san francisco, los angeles, places where most of the new construction is multiunit. there are apartment buildings in anticipation of a lot of those young people moving out of their parents' homes and forming

find out what morgan stanley thinks. the answer should be when we talk to them after the break. ♪ >> time for today's company news. a program to buy asset-backed securities. june that he was intensifying preparations to buy them. the chinese e-commerce company alibaba reported a surge in first-quarter profits, boosting spending on its mobile lab forms. it almost tripled in the last quarter to just under $2 billion. these figures are likely the last before the company goes public in what could be the largest ever american ipo. private equity firm terra firma is considering a sale of garden centers. firma bop business two years ago, and could be valued as much as 700 million pounds. yieldsgovernment bond continue to hit record lows in spain in germany, italy, hol land, and finland. how low can they go? hi, anthony. thanks for joining us. this was obviously caused by those comments from mario draghi last friday. how much lower can the hope of further action by the ecb yield go? >> the front-end seems to be pricing in around

>> morgan stanley had an videosting visitor -- about truck drivers. their wages have trailed overall wages and salaries. there seems to be a shortage for truck drivers. that would indicate wage pressure. that alone is not something to worry about. they should upgrade these poor guys. if you see isolated pay increases here and there, that is what you should see. that is what you expect to see. you should not worry as soon as people get a pay raise. they need a pay raise. it is good for their buying power. >> you have to think am aware that they started. you see those wage increases. when do we start worrying about wage increases? that is when we worry about interest rates. >> we will look at the numbers today. if we see the hourly earnings going up, that will put a scare in the market. one month should not pivot the fed from being dovish to being hawkish. even if interest rates do go up, they know that. if they're going up because the economy is healthier, that is fine. >> before we go, any sense that if we get a surprise, will have a bigger impact? >>

and when a great job he's done at morgan stanley. lets just go back and we'll do this quickly and get ourselves caught up. so looking back at history, there's been a lot of chatter about what could have been done differently. and i'm going all the way back to the 1990's to the time of glass-steagall being repealed to the time when a decision was made over-the-counter derivatives. the decisions not to impose tougher capital requirements on investment banks, things like that. so if you sort of take that time sweep, that 10 years or so, what should we have done differently? >> well, firstly, great to be with you again. we have known each other a long time. and for those of you who stayed for the banking portion in the dead part of the day, we appreciate that. [laughter] i thought for a minute as giving prizes out as everybody got up to leave. i will try to adjust this in 45 seconds or so. it's very complicated. the country went through a period of tremendous prosperity. so there was a great wealth effect from that. we came to believe th

. >> reporter: ellen zentner is an explicit with morgan stanley. >> so the economys strengthening. fundamentally we are getting better and this long string of strong jobs reports is providing proof of that. >> reporter: one reason for zentner's optimism about wage growth, in 2009, there were six unemployed workers for every job opening. now that ratio is down to only two to one. james. >> brown: anthony mason, thank you. can you tell the difference between a regular cookie and one laced with marijuana? in one state it's a problem. and what a wonderful world it is from it 220 miles up when the cbs evening news continues. one of our favorite things to do is going to the dog park together. sometimes my copd makes it hard to breathe. so my doctor prescribed symbicort. it helps significantly improve my lung function starting within five minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from as

morgan stanley ups to equal weight.comps are good because of tab let technology, mobile payments. they add, though, long term, their unit growth, penetrating two-thirds of north america now. >> the international story, and i think that when i had sally smith on "mad money" recently, raise the forecast on how many could be done. they have a great franchise, had a "mad money" party on the rooftop of buffalo wild wings on 47 th street. the company reinvents itself. i don't know. it's been a rocky ride since that bad quarter. this seems like a well-timed upgrade is the way i put it. i like it. good company. >> look, oil's going to have trouble at the open. >> yes. >> chevron the degree on the dow. exxon not far behind. >> there's news reports of the energy information saying that there's too much oil, and a lot of the u.s. oil companies are really kind of defeating themselves right now because they're valued over. you need this to get exported, something alluded to yesterday -- >> moving baltic freight. >> baltic freight is

. >> we've been hot this summer in the morgan stanley. the temperatures are going to change, and we're going to see a big shift not just in the west, but across our nation. yesterday was one of the last hot summer days we're going to see for a while. especially in the northwest. it was 91 in portland. this is the summer pattern. this is the pattern we've been in for the majority of the last two months. some could argue all the way back to last winter. here is how it's going to change as we look ahead here. we have a big upper level low that's spinning just off the california coast. that's a game changer here and opening the door for this next hang. that's going to shift the jet stream west -- or excuse me, east, with all the hot air, and that's where all the problems are going to be with the heat and humidity. we're going to be much cooler in the northwest. today we start that cooling trend. 76 in seattle. 79 in portland. that's some gorgeous weather after a really hot period of summertime tempnevada, temperatures were cooler than we expe

morgan stanley says no. down and when it comes to telecoms and they are slashing. they are cutting. a much better word. they are cutting the revenue forecast by 1% or 2% and say that construction will have a robust performance. rare and a country where your revenue comes from france, with the growth problem. back to you. >> here are the headlines for you. they are seeking to borrow as much as 27 billion euros in the auction of cheap cash. that is according to people familiar with the matter. unicredit is asking for euros. the u.s. is russia may be directing a counter offensive with the eastern ukraine. a spokesman for vladimir putin denied the claim. he says the information does not correspond with reality. crime has spread to peaceful areas. investigating a hack attack on jpmorgan. that is according to people familiar. coordinate the attack that resulted in a loss of customer data that could be used to drain accounts. let's go to the big corporate story and the showdown in the telecom sector. they has started a bidding war over a unit. they raised the bid after telecom italia put f

morgan stanley saying money flowing out of japan is the dominant force. and into australia was the dominant supporting issue for aussie dollar. >> thank you very much. that is your market opening. with ubs strategist wealth management. welcome. good morning. >> morning. >> when i look at your monthly news letter, the first line i see if global equities have delivered postal a wonder percent -- 100% earning. think the music is very much going to continue. if you look at the u.s. economy almost the perfect position where jobs can continue to grow but the unemployment rate has not picked up. janet yellen, the chair of the federal reserve, she's going to mid-2015 whilel there are strong jobs growth in the u.s. this picture is very supportive of the equities. >> when you see the likes of might, their rates of rise faster and in market is behind. do you dismiss that as moist coming out of the fed? >> we have a lot of concern around their earlier last week and that cost the selloff. the payrolls we saw on friday sure really assay those fears. the participation r

going well if there was no reason for it not to work but it just didn't turn a profit and in fact morgan stanley they were willing to take a billion dollar loss on this just right up just to get out of get out of their position so why was rebel not as successful as anticipated did it have to do you know with timing the recession what was it you know i think it's a little combination of all of those things the timing was in part and we'll get further into that as we talk about as we know sandy but let's start first and foremost with really bad function way ok and not not to be not to be talking about you know design and but really when it comes to building a casino. you need to put the casino where it's accessible right this casino is on the third floor it's six stories above the ocean so it's really bad function of the gambling area is really just inaccessible for for people to go in and out and people asked me because you hear you know like hotels they spend so much money on functionally experts for their body how a lobby so interested to yes obsessive of a hotel or yes i. so i see no it's even

. >> you used to be attacked thinker at morgan stanley.o many interesting and potentially confusing things in it comes to alibaba. it is a chinese company to start and are dealing with the chinese government. how you think investors will think about some of these issues on the roadshow? are there going to be a lot of questions? >> i think the biggest challenge alibaba faces with regard to the ipo is the governance issue. he is an amazing, charismatic executive leader. he is also mercurial and controls his company. there are certain relationships that go on behind the scenes that western executives that are not quite is used to that relies some time on selective enforcement of different regulations, etc. and china that we are not used to hear. >> coming up, amazon getting into mobile payments. that is next. ♪ >> that is a look at some other stories making headlines today. for the latest you can always visit bloomberg.com. another story we're following, at&t wants to clear out old apple inventory ahead of new iphone and ipad launches. as a r

such as goldman sachs, jpmorgan and morgan stanley. meanwhile, private equity firms are leading the charge in higher m&a revenues on wall street according to a new study. total global financial sponsor revenues have soared to a record 3.6 billion so far this year, driven mostly by takeover activity. joining me now to discuss the report is christ jan, global head of revenue analytics research. just go through the highlights of this report for us. >> basically what we've seen this year, especially, is that private equity activity is really focussed on exit activity, as you said. so while the private equity market during 2006 and 2007 is a vast amount of feeds was generated through buyout activity, we're seeing that this year is really focusing on the private equity efforts, on exiting the company over the last few years. so we're seeing exit activity across the ecm spectrum and the m&a spectrum. the ecm market is probably overperforming the m&a market. >> a lot of focus is on m&a. surprisingly on ecm. >> funny. and what the data shows us

>> no, i thought he was with morgan stanley or something. >> i work for fox connecticut news in hartford saw you running, i said, i have to meet hoda kotb. i watched where why you were running, wrote a note, and now i'm in studio 1a. >> in other words, you're a stalker. >> you got that right. exactly. >> i saved your letter because it was so beautiful. i put it in my little phone thing. >> it's a miracle you found it. >> i save certain things. >> you don't want to show that phone number again. you know what happened the first time. >> this kid is going to be huge. he's like al michaels. look. that's al michaels right there. >> all right. thanks. so it is national underwear day. >> are you wearing any? >> i always do. unless i forget some. >> are spanx enough? >> the only time i have not worn them is when i go to the gym in the morning and look in the bag and say, oh, my gosh, i forgot them. that's happened before. >> do you know how many pairs the average woman wears? >> how many? >> you can read it. it's right there. 21. >> how many do you own, roughly? >> i don't know. i don't count of

. >> morgan stanley has like say, they hire a thousand people to call up arrival and put in 2000 fake orders, buy me xyj and not pay for the stock. >> just put a small service change for canceling, they will have to do that anyway, they will all end up doing that. >> they are fighting the same enemy, they are both disrupters. they are fighting the establishment. uber has to realize, there is enough market share out there work together. >> fu funny you say that, uber said, this stuff about how mean we are to lift is because lyft wants us to buy them. charles: maybe they will. >> we've seen this since 1800s remember that eerie war, they bought all stock of eerie railroad? charles: reminds me of the robber bea barons. >> but a whineer? charles: i am poseing the question, i posed o it on twitt. a fair amount of impeachment who said -- impeachment who said people who said, they will not use a company if they are using bullying. >> lets fight continue. >> it is market regulation, let competition regulate itself. >> that should hurt uber this is adding to a bad reputation. >> that is corpora

. >> brian, you also used to be a tech banker at morgan stanley.here are so many interesting and potentially confusing things to potential investors when it comes to ali baba. it's a chinese company, to start. and you're dealing with the chinese government in part. how do you think investors will be thinking about some of these issues on the roadshow? will there be a lot of questions? >> i think the biggest challenge that ali baba faces right now regarding their ipo is the governance issue. is definitely an amazing, charismatic executive and leader. but he is also relatively hisurial, and he controls company. there are certain relationships i go on behind the scenes that western business executives are not right is used to, that rely sometimes on selective enforcement of different regulations, etc., and china that we are not used to hear. that said, there is not exactly a fair and level playing field as it relates to ali baba versus competitors entering -- entering china, like amazon. alibaba is set to grow in the e-commerce space next five to 10 y

according to reports from morgan stanley, they have an underweight rating for the stock.free cash flow situation out there? you're certainly not the only one complaining about that. >> bp has paired back the capital expenditures. so in terms of the company's ability to positively impact the cash flow by cutting back on what it spends out is quite limited now. then if we look in terms of getting cash in, the company doesn't have a lot of big projects slated over the next year or so to start up. we look at the 2015 period, one of the points morgan stanley notes this morning, they don't see a lot to excite investors. the current situation is not ideal. as i said, there's a gap between what they're taking in and what they have to pay out. and in the immediate future, that doesn't look too healthy. one of the things that's baked in, it's operating pretty well. even something that creates doubt around this in the mind of investors, about the cash flow going forward. >> tom, appreciate your time this morning. and we've got more breaking news. this time around, deutsche bank is f

fees on it compared to what i'm going to pay or veterans pay whether it be bank of america or morgan stanley. the average fee 29 cents per thousand dollars invested. if i'm investing a thousand bucks with investment advisers, i'm paying 2% minimum. how can anyone guarantee me i'm going to make more money? >> there would never be a guarantee they would do better. cheryl: you are overselling it to the folks. >> it's misrepresented if that's the case. what's the goal of the person that might be considering moving the money out? so it's certainly just because something is less cost does not make it better. think about a yugo was a lot less expensive than a buick but it didn't make it better. not that i'm comparing a yugo to a savings plan. have you three index funds that track equities, one that tracks bonds, one that tracks government. cheryl: they aren't going to sell the etf's and the index funds, it's not just federal workers and veterans that have complained. employees from at&t, hewlett-packard, ups have lodged complaints against investment advisers for overpromising them with what they're

we side with morgan stanley last month for some mid-level bankers. raising base salaries. it's also about cash flow. more bonuses are being deferred, even some of the junior level. higher salaries allow these bankers to have a more predictable cash flow. you know, some kids coming out of college want to go into the tech world. banks are trying to be competitive. >> is this about competition or is it about the changing way in which people in the banking industry get paid? >> it's a little bit about competition, and i think it's also a little bit about getting back to normal. for a number of years, the training programs, the analyst programs were either scrapped or greatly reduced, and therefore, the bench of talent and the people who have normally been recruited at the investment banks and banks, it's not with the traditional levels were. weaker now. much they need to rebuild it and attract people. >> is that because they have laid off many people as result of the 2007-2008 financial crisis? >> it is because of layoffs, and it is also because of not doing the campus recruit

street talk" our daily rundown of recommendations on this said hump day macy's getting added to morgan stanley's best ideas list. >> up 2.7%. they call this a winner in the omnichannel retailing, reiterate their overweight rating. >> that's about 12% above where the current stock is trading. >>> next, the upgrade to g.e. >> bursting likes cost-cutting story, they also like that manage is more leveraged. their target is set at 33, about 30% above the trading price. good for the bulls, also higher than the weight price. >>> and lots of calls on michael's after the recent ipo was initiated. >> you know, man -- this is -- it's wall street's of meh. >>> their price target at 16, so they don't see an up side at all. you have it was only an ipo in june. upgrade at needham? >> a bid call for solar. they could tell split the company up. again if there's no news, just their call and sort of their theory. their price target is at 75. that's about 20% above where fsl wrismt is currently trading, but this was a 175 $stock in february of 2011. >> the under the radar name is van heusen, a global ip services, c

morgan stanley among the investment. >>> here on "power lunch", we're going on a bear hunt is the s&p bull run is on a tear. so where are all the bears? we did a little searching to find out what some of the glass half empty investors had to tail. she also predicted another market bubble caused by global central bank says. back in june of this year abigail doolittle set that u.s. indices we are hitting areas of resistance that she predicted could cause a crux. a reminder just because they haven't been right yet doesn't mean that they won't be right. so david ties joins us now, he's a bear. he is president of tice capital. >> good to see you again, sue. >> i have been critical of some of the policies but as you look at this market right now what well, frankly we don't think quantitative easing is the key to los angeles-term success. this is longer term it's not going to work. this reminds me a lot of what happened in 1999 in '06 and '07 when i was warning people about it. is the fed has engineered a nice recovery. really if you look underneath the economy, you can see our unemployment

reach last month with citigroup, and there will be 11 more of these with goldman sachs, with morgan stanleyth wells fargo, and only just a few states, new york and california, illinois in particular have been very aggressive about getting some of the cash even though they're not necessarily the state--i mean california obviously has been hard hit, but again, florida and nevada, arizona, they're getting no cash from these deals. >> you wrote a piece yesterday indicating that former president clinton's idea of how to utilize these bank fines might get some support. >> no, i don't think it will get some support. i think--i found some support for it on my own, you know. i talked to bank analysts who liked the idea. i spoke to others who liked the idea but no one has paid attention to clinton since he made that suggestion in november. there's another john delaney congressman from maryland. he likes the idea. he's been a big proponent of infrastructure investment. but you know, i don't think that's going anywhere, unfortunately. it's an interesting idea. >> bank of america swallow up countrywide,

. >>> we welcome back andrew, managing director of global investment solutions at morgan stanley. andrew, when we had you on earlier this summer, you called the turn in this market, you were calling for more volatility, that's changing now, tell us what your strategy is? >> i think classically that saying, sell in may. as we get -- this is going to continue for a couple of more weeks, at the end of this month, the focus will turn to good corporate earnings and interest rates where they are, the multiple will continue to expand so this is the time that you want to think about what stock do i want to own in that period? this is the time you want to selectively use this weakness to step up. >> christina, tell us what your strategy is at this point. >> to ensure clients match their asset allocations. we could see a further slide before there's any kind of improvement. what we really need to understand is the backdrop, there's this handoff going on from the fed to fundamentals. stock market investors have come to the realization that the fed may raise interest rates sooner than expecte

morgan stanley says apple is attractive giving positive earnings revisions ahead of the iphone 6 and iwatch product cycle. another bright spot for the nasdaq, because a lot of these names are underperforming. ross stores the best performing stock on the nasdaq 100 after tjmaxx. dom, over to you for a market flash. >> how about another downside move? s in a reality check for el pollo loco. analysts are starting to weigh in, and results are not too pretty. it says the quiet period has ended. they can cover the stock iffo. baird is beginning cover an. jeffries starting with a hold and $30 price targets. and a $22 price target. investors are taking notice. that stock is currently down toward session lows. the stock, though, still is more than double since the debut at the end of july. you could say that analysts are chickening out. >> good one, dom, as always. >>> let's get to the trading action. is jeremy, housing, do these reports, today's and yesterday's confirm that some of the concerns about the housing recovery are misplaced? >> yes, i this it does. when you see the housing starts

[applause] >> morgan stanley ceo james gorman talked about the 2000 2008 financial crisis.this is 15 minutes. >> we have 16 minutes and 37 seconds, which is a version of speed dating. we will do our best to try to do about five years of financial history in this time. everybody knows who james is. we have known each other a long time. let me find in and go back and we will do this quickly. looking back at history, a lot of chatter about what could've been done differently. i am going back to the 1990's to the time of glass-steagall being repealed, to the time when a decision was made not to regulate over-the-counter derivatives, decisions not to impose tougher capital requirements on investment banks. capital requirements on investment banks. if you take that time, the 10 years or so, what should we have done differently? >> great to be with you again. we have known each other a long time. for those of you who stayed for the banking portion, we appreciate that. i thought they were getting prizes outside as everybody got out to leave. i will try to adjust this and 45 seconds