plus, morgan stanley up 78% year to date. i'm back in two minutes. >>> i've been waiting for wall street to smack back at government in this pious backlash against business. today came wonderful news. bank of america it willing off new york attorney general andrew cuomo. cuomo has been investigating the legality of disclosures b of a made in acquiring merrill lynch, mainly because cuomo wants to run for governor. bank of america fired off a letter tall calling his allegations against the company spurous. the word is described as false, or a does he wantful nature, but its origins go back to 1598. back then, spurous meant bastard. i have a feeling that's precisely what they were saying to cuomo today. you bastard. i really feel like the cuomo action, he ought to be worried about discrimination in housing. i'm not sure why he's worried about b of a's disclosures when he's the state attorney general. >> we're applauding him as an elected official in the state of new york. one of his job is to investigate fraud. the fraud is merr

more dan stgan stanley is down . is that a reflection of his value to morgan stanley? >> not at all. i'm a john mack fan. you have to take the long view. he achieved a lot, did a lot, and was a tremendous leader at morgan stanley, particularly a year ago right now when things were in trouble. i don't think this is a reflection. i think it's short term. >> mr. mack will be with us next segment. let me ask you about the state of mergers these days. we were commenting the other day when there was talk about cadbury, maybe a sale there coming. we stepped back and said, you know, look at us, we're talking about deals again. deals are happening again on wall street, aren't they? >> enjoy it because it may be pretty short-lived. >> why? >> because there's been a real structural change in the m & a business that's occurred in the last year. first of all, private equity has ground to a halt because the credit is not available, and the private equity segment of the m & a market two years ago, let's say, was somewhere between 35% and 45%. that's gone down to 0%. secondly, credit

what does this mean for your investment in morgan stanley? let's bring in brad hints, former ceo, morgan stanley treasurer currently a top-ranked analyst at sanford bernstein. brad, pleasure to have you with us. reading through your research notes you make some good points. first of all that james gorman has no operational experience in investment banking and sales or trading which is more than 50% of the business. why should we give him the benefit of the doubt at this point when we've got other stocks making some nice runs like goldman sachs which hit a 52-week high today? >> you've hit on a very good point, which is, you know, morgan stanley, we've seen on the trading side has been underperforming. so what is -- what are we seeing in the marketplace today? trading is doing very well. fixed income's doing well. we're seeing it in the united states. we're seeing it in europe. and morgan stanley seems to be taking the action to improve their trading business. so -- but i don't see that actually generating the performance until early 2010. you

there's a lot of talent at morgan stanley. the second, with the turnover, phil pursell, mack, now gorman, there's been a lot of people switching seats. i don't know it personally like i would at a goldman sachs. i'm sure they have the right people there to support him. >> when you look at your universe of stocks, how does morgan fit in in that growth? >> as we sit here now, i think morgan stanley is certainly one of the top investment banks in the world and probably the top retail brokerage firm. that's a good thing. the bad thing i'm hoping james gorman can fix, they have been strategically inconsistent over the years. phil pursell didn't want any rest, john mack did it at the peak of the credit cycle. now more risk averse. getting a consistent strategy in there should go a long way to getting them back on a course. at the end of the day a big franchise at a discount. that's a long way of saying i think morgan stanley does good as the stock turns. >> so what's the new wall street? >> new wall street is going to be like the fi

in january, mack was back on track to grow morgan stanley.ng a stake in the newly formed morgan stanley smith barney for $2.7 billion. that created the largest broker dealer on wall street. a bold strategic move, perhaps the first of many to come. so much has changed at morgan stanley in the past year. it became a bank holding company. in january it formed a joint venture with citi, creating morgan stanley smith barney. for john mack, the biggest lesson learned is not to substitute taking risks at the expense of making money. here's more from my exclusive interview with john mack. let's talk about the environment today. one year after the collapse of lehman and merrill's sale and the government taking 80% of aig. how would you characterize the market one year later? >> there's a calmness back in the market. i think people are still shell-shocked. everyone, including morgan stanley, have gone out of their way to make sure that we're in a better position as we go forward in these markets. when i say better position, we've raised a lot of capita

at least morgan stanley is. >> i just don't think that people are estimating the ability of morgan stanleyonly normalize earnings but also to be able to compete with goldman sachs in the capital markets business. they always have. in fact, many times people would argue they've been much stronger than goldman sachs. i don't think you've got a world where goldman sachs is that much farther ahead of them at the core business they're all in, which is sales and trading, capital marks. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. pothole:h no...your tire's all flat and junk. oh, did i do tha

morgan stanley up 1.5%. ge down today after a big runup recently, as well as the oil companies turning lower right here. they started off higher, actually. nasdaq up ten points due to the strength in tech. >> maria, s&p 500 is up better than 55% since the march bottom. is it possible we could see the market add on another 10% to 20%. that's what we're talking about on today's "fast money" "final call." joining me from chicago, brian, an options action contributor. >> thanks for having me. >> what are we talking, 10%, 20% on top of what we already had? >> i was doing some thought about analysis, about all the put buying that we saw. going about ten days ago, we saw downside put buying, and i touched on this a little earlier today, that we saw the s&p 500, people coming in, buying put protection to the down side, where in the s&p 100, you didn't see that protection play. people want that broad market protection. and typically you'd say, well, they're buying puts on the down side, doesn't that mean the market's

this is how margen stanley has been trading. it is up better than 2% on the day on the news mary thompson is outside morgan headquarters with more. hi, mary. >> reporter: hey there, melissa, john mac will remain as ceo. gorman will be stepping into the rode of ceo come january 1st. the company's other co-president, walid chammah, and them addressing the troops this morning in a sometimes emotional hour punctuated with a lot of applause. the firm has been tell graphering this traz since transition for a few months. gorming says there are key challenges, wub listen getting the sales and trading operation on firm footingally well as keeping the integration of the joint venture on track. as co-president, the australian native has been credited with getting that joint venture with the citigroup unit finalized ahead of schedule. gorming joined morgan stanley in february of 2006. at merrill, he's credited with improving profits, a feat he repeated. jeff hart says gorman is the key man for the job. >> the one concern i have and i don't

morgan stanley though to the plus side by about a percentage. john mack stepping down as ceo as you heard here on cnbc, replaced by gorman. campbell, earnings beat expectations. the story there. let's head uptown to bertha coombs at the nasdaq. >> thanks, scott. chips have really been in focus over the last couple of days. we've gotten a number of semiconductor companies. this is sort of the concession season. so far the concessions have been to the upside. intel yesterday sat out the chip rally. this morning it's getting a boost at ross capital p. still hear for more chip companies raising the outlook. it had said it might have negative sales. now it says sales might be break even or to the upside by 3%. applied materials, one of the other big chip equipment companies yesterday that sat out the rally. this morning is up 9 cents. that's .7 of a percent increase. the company did come in, this is the company that works in fiber optic area, telecom activity. came in with earnings right in line. pretty good outlook. however, it is doing one stock an

at least morgan stanley is. >> i just don't think that people are estimating the ability of morgan stanleyize earnings but also to be able to compete with goldman sachs in the capital markets business. they always have. in fact, many times people would argue they've been much stronger than goldman sachs. i don't think you've got a world where goldman sachs is that much farther head of them at the core business they're all-n which is sales and trading, capital markets. morgan stanley does it as well as anybody. >> we've got to leave it there. final trade right after this. >>> the newest documentary, "the new age of walmart." again, 9:00 p.m. eastern time. do not miss that one. should be a good one. final trade now, tim. >> it would be a shallow pullback but it will be a pullback. petrobras in the low 40s. >> j.t. >> buy gilead. >> bdx. >> keep an eye on ebay right now. those stocks are hot. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 p.m. eastern time for more "fast money." and a quick reminder, a replay of "fast money" tonight 1:00 a.m. so stay tuned

costco, morgan stanley bumping that up to overweight as well. but the nasdaq is pulling off its best levels of the morning really with the overall market. >> thank you very much, we can see that on dow up 15. also the best levels of the session, oil and gold, biggest stories. gold above $1,000. sharon epperson, why? >> we're looking at oil prices that have to do with what has happeneded to the dollar. we were talking about the dollar being at the lowest level in a year and that is why we're seeing not only oil but commodities across the board including gold an silver and copper all higher. the fact remains that $75 oil is something that the saudis have been pushing for but also something the nonopec country weren't to see as well to get the oil out of the deep water so we could see oil go back to those levels pretty quickly. keep in mind we were just there august 25 ath so not too far away. also as we lock at opec members, it doesn't really make sense mentally for oil to be here but once again, we're following equity, worry following the dollar,

this is stanley hoe's son.hey sprout another blossom in the gaming world. >> and have a lot of extra cash. >> used that because his doctor's name is pansy? >> i didn't want to do that but i guess it was led there in my own mand. >> and do you see last night shuffle master. 80% profit. this stock is here in the 52-week highs. are there names that are working that are on the downside of this whole trade. >> right. let's trade the globe. >> let's do it. >> let's into it. globe. >> globe. >> we've been talking a lot about china in all of its growth figures. and certainly that is a big reason why we've seen a huge run-up in the fxi, the ecf. the track. the shanghai exchange but can we believe the data that comes out kriechbt? we should note according to joseph malcolm. china's stats are based on recorded production which differs from u.s. stocks which are based on exports and actualing spending figures by consumaries and governments. we dug this up courtesy of the aei. take a look at this, retail sales up 15%. year

. >> paul: after four years at the helm of morgan stanley c.e.o. john mack announced today he's stepping down. but he isn't going very far. >> susie: reviving the family business with whacky commercials. tonight our signature series "all in the family" introduces us to the smithe brothers of walter e smithe furniture. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for thursday, september 10th. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. 7//& >> susie: good evening, everyone. "we're sorry and we're fixing the problem." that was the response today from the securities and exchange commission over how it bungled five separate investigations into bernie madoff's massive ponzi scheme. contrite regulators were called on the carpet by congress today, after a scathing report said the agency was incompetent. adding fuel to the fire: massachusetts state regulators released a tape of a phone call madoff made, bra

also former treasurer of morgan stanley, former cfo at lehman brothers will tell us whether morgan stanley is worth sticking with or you should move perhaps to another stock like goldman sachs, which by the way had a 52-week high in today's session. and we'll also have the outlook for biotech. biotech analyst from deutschebank joining us to give you his picks and pans for the next few months. all that and much more at the top of the hour on "fast money." and by the way, maria, happy birthday. >> thank you, melissa. thank you so much. we'll see you in about five minutes. it's something pirates would have loved to get their hands on. it was called the ship of gold. and it was lost at sea. find out how much the lost treasure would get at today's price when's we come right back. stay with us. >>> this is a great story. for 131 years the world's richest treasure was lost at sea. now those treasures from the ship of gold are back in the spotlight. this weekend two pure gold bars are on display at the long beach, california coin, stap p and

does this change anybody's outlook on morgan stanley? the fact of the matter is, yes, it's towards the top of the best. want the best in breed, but it did miss a lot of opportunities to make money on its desk. >> i think that had mog to do with this decision. the one thing that is clear, though, is that morgan stanley, through their acquisition from the smith barney asset, some citibank, and the strength of their own franchise may be taking a slightly different takt. certainly the appointment of gorman as the new head. this is not new news. i think you kind of move on with this one. i don't think this is affecting the stock. i don't think it affected it today, and i don't think you're going see a substantial change in this strategy, but if anything, this lack of risk taking, i think, for shareholders ultimate will you will be a very good thing, because it's a great business model. >> only problem with that is that the wealth management franchise, which is what they're focussing on if we're to take his appointment, is a really challenging

and nato commander in afghanistan, general stanley mcchrystal. he said resources won't necessarily win the war but under resources may well be result in failure. the support has been submitted to washington but it does not specify the number of extra troops required. in a moment we will be live in kabul. first, mike will rich. >> general mcchrystal was charged with providing new thinking in president obama's strategy. with international forces experiencing the deadliest years since the war in afghanistan began eight years ago, the generals provide the obama administration with a grim analysis of the prospect if the initiative is not gained from the taliban insurgency. the number of american troops in afghanistan is already almost doubled this year to the current level of 62,000. general mcchrystal said the campaign has been historically under resource and remains so today. he is expected to make a formal request for more troops. without adequate resources, he warned bluntly, the risk is the mission will fail but the idea of sending more troops is

when it came toe morgan stanley and goldman shs,they drantic efforts to eitr rais capital, i report in the story paulson is calling the financminister of china, president sh is calling chinese prident hu to encourage them in their highly stylized way to peopleonfident out puttingoney inmerican institutio. >> rose: and ty call the japanese, as well. >> and you know they called the japane. and ultimately the japanese came to the rescue. that's the story that's beyon my... the scope of my story. but the way that the treasury and the fed works to keep the japanese in that deal, they serve some kind government metal honor. >> they sure d >> rose: exaly.

just moments ago, cnbc has learned morgan stanley's ceo john mack will leave morgan stanley early next year. the dow jones industrial average as a high of the afternoon at the close, up 78 points. nearly 1%. back above 9600 at 9625. s&p 500 also strong. better than 1% on the upside. back above 1,000 at 1,044 with a gain of ten points. the nasdaq composite also strong. a number of big moves like e base of 3%. up 23 points on nasdaq, better than 1% at 2,084. scott wapner on the floor with all the action. >> five in a row is what we said here. the day got started with the better than expected jobless claims and some pretty positive outlooks from a number of important companies. that's where we'll begin today, really with proctor & gamble reaffirming q-1 and earnings guidance, also, and this was new, they said they expect to return to sales growth in the second quarter. general mills another consumer staple out today seeing first-quarter earnings above initial targets there. texas instruments, a key technology company out of the semi conductor's space. a new 52-week high today. they raised

as you talk to stanley's wife, what did stanley go through as call after call kept coming in to harassthis poor man? >> well, it sounded like tony soprano was calling him. it was devastating to him. it would be different if he was healthy. but he was somebody that was being terrorized in his own home, when he was on disability because of his heart. and they knew it. and they tried to use that against him. >> let me read the statement. this is from the collection company. green tree's policy, a brief statement, is not to comment on pending litigation. let's bring in stacy kaiser. stacy, so stanley has a massive heart attack, takes him off the job. now he's being harassed like this. it's hurting him in every sense of the word, his pride. what goes on? what kind of hurt builds up as these stressful calls continue to come in? >> first of all, you have the whole factor of the male ego going on, where he's lost his job, he's not supporting his family and he's not well. then you add to it this harassment that he's not able to put a stop to. a person is not only a lot of stress and pressure, b

morgan stanley sells at 1.1 times. i think if you look at most of these, the ones that are underwriting in deal driven tend to be trading close to their 52-week highs where as bank of america and ubs and jp morgan are trading at only about 75%, 80% of their 52-week high. investors are looking at goldman sachs and morgan stanley being the beneficiaries of deal activity and underwriting activity to a greater extent. >> how about the universal bank model? is that dead at this point, do you think? >> i personally think it's dead. i think the exception will be jp morgan. i think jp morgan will continue to be a big player in the jechlt banking side and goldman sachs is the universal bank. i think the facts are that the competition is less out there in terms of using your balance sheet, i think pricing is going to be good for investment banks in terms of fees. we, frankly, have an ulgar system. >> which banks stocks would you put to work now? >> i want to get back in citi and bank of america, jp morgan, wells, u.s. bancorp. i

but goldman was going go down if morgan stanley went down. those two were barely... and this is in part why i think the government leaders do deserve credit because they brought us back by from that brink. >> rose: how did they do that? >> well, number one they guaranteed the money market funds which talk about moral hazard, pulling out moral hazard this was suddenly an over four trillion dollar guaranteed. 100% of the money market funds guaranteed. even your bank account is not guaranteed 100%. this was a stunning intrusion. didn't get as much attention but a stunning intrusion and yet it was a bold step, it worked. paulson did it on sbuls, it turned to be a brilliant move. when it came to be morgan stanley and goldman sachs, they had frantic efforts to either raise capital, i report in the story paulson is calling the finance minister of china, president bush is calling chinese president hu to encourage them in their highly stylized way to people confident about putting money in american institutions. >> rose: and they call the japanese, as well. >> and you know th

. >> caller: jim, what do you think about the stanley work?> at this point, stanley work and black & decker have had such unbelievable moves. i would like a cool 10%. but stanley works is very well run. the end market for housing's come back. no one believed me except the people who owned stanley work. craig in oklahoma. craig? >> caller: hello? >> you're up, craig. >> caller: a boo-yah, mr. cramer. how are you. >> jim cramer. good to have you. what's up? >> caller: i am from oklahoma. >> thank you for calling. >> caller: atfg, applied signals technology. little or no debt, positive guidance. reaching acquisitions. nice contract a month ago and even paid a little dividend. up 2%, what do you think? >> i'm not going to -- you are dealing with this company better before i make a decision. get an update on applied signal. i do not know it well enough and i do not know that acquisition so why bother to say it's great if i do not know the acquisition. we'll do more homework and come back on it. bob in florida. bob? >> caller: yeah. what's up? >> no

on the table, general stanley mcchrystal's grim assessment of the fight against the taliban.he general is murnling more american troops be deployed. whitehouse press secretary robert gibbs says that decision is still weeks away. >>> michael vick continues on his road to redemption. he made a stop in washington. >> he hay personal message for children about making bad decisions. we'll hear what he had to say. >>> good morning. temperatures a little warmer than yesterday. we have clouds minister forecast and possibly a shower. i'll have all the details on the forecast. julie wright will be in with a look at your on-time traffic coming up in just a couple of minutes. more and more, the quality of our lives depends on our connections. access to high-speed internet, at home and on the go, is no longer a luxury. it's how our children access education. it's how we find jobs, discover information, and connect with family and friends. it's the spark that drives innovation, creates investment, and builds a stronger economy. to shape a better tomorrow, at&t is investing in america's fut

since 2005, der mack's leadership, ares of morgan stanley have fallen abt 34%. but shares at rival goldn sachs, have sued about 70%. >> paul: stocks got off to a slow start on wall strt today, buended with another positive close, it's 5th stight session to t upside. an upbeat forecast frotexas instrumentcombined with octer & mble's prediction for improved sales tboost stocks. adding to the buishness, a betterhan expected drop in new weekly jobless benefitlaims. the upwardrend continued through the afrnoon and strong mand for an auction of 30 ye t-bondhelped the market end at the day's highs. >> susie: president obama wa talking uphe need for healthcare rorm today a day ter his blunt address to congress. speakingo an audience of nurseshe president said the number of uninsud americans rose by 6 million inhe past year because of the cession bringing theotal to 46.3 milln. did e president's speech to the nation maka difference in e health care debate? talked with university of miami healthcare exrt steven ullm a short while ago and asked him if president oma made a

since 2005, unr mack's leadership, shes of morgan stanley have fallen abou34%. but shares at rival goldma sachs, have surg about 70%. paul: stocks got off to a slow start on wall streetoday, but ded with another positive close, it's 5th straht session to thepside. an upbeat forecast from xas instruments mbined with prter & gamble's prediction for improved sales to ost stocks. adding to the bullhness, a better tn expected drop in new weekly jobless benefit cims. the upward tnd continued through the afteoon and strong dend for an auction of 30 year t-bonds lped the market end at the day's highs. susie: president obama was talking up t need for healthcare refm today a day afr his blunt address to congress. speaking tan audience of nurses t president said the number of uninsureamericans rose by 6 million in t past year because of the ression bringing the tal to 46.3 millio did thpresident's speech to the nation make difference in thhealth care debate? i lked with university of miami healthcare expe steven ullman short while ago and asked him if president oba made a

it is stunning that the president hasn't met in person with stanley mcchrystal yet. this is a war. it is not any war. it is the war that he campaigned on as the good war dating back as fares far back as 2002 and he said a couple weeks ago in a question and answer session with steven harper from cran da, that he doesn't want to rush this decision. he wants to take his time to get it right. that seems to me a bogus excuse. he has been campaigning on it as the right war. he has done his own strategic policy review. mcchrystal has done a strategic assessment. it is time now for the president to make a decision and act on the decision. this loob looks like a distraction. even if you say he is going to spend all this time on the plane studying on the afghanistan problems, the optics are terrible. >> no, most people look at this and say if he wants to make a pitch for the olympics, that's what the president should do, especially for his hometown, go do it. this is not and an antsy mcchrystal guy. this is a guy that is working. in fact, admiral mullen -- >> in 07 days he talked to him once

morgan stanley chairman john mack and citigroup sits down with me and gives reflections of what was it like the last year. and most importantly, what's ahead for the financial services sector. we'll hear from those two gentlemen. >> the most actively traded stocks led by citigroup. i drove my first car from my parent's home in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970. exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%. so, at national, i go right past the counter... and you get to choose any car in the aisle. choose any car? you cannot be serious! okay. seriously, you choose. go national. go like a pro. >>> welcome back. let's take a look at some of today's research calls. the latest upgrades and downgrades. dreamworks animation, outperformed citing a strong late of upcoming films.s. and the potential for the stu

. >> we are hearing john mac will step down as the ceo of morgan stanley.will remain as chairman of the company. he'll be replaced as ceo by james gorman, the co-president of morgan stanley. the management changes are going to be taking effect early next year. so once again, john mack stepping down as ceo of morgan stanley, or i should say early next year. he'll be replaced by gorman. bill mack will remain as chairman. >> we should point out it was expected that mack would step down next year. as he approaches the end of his contract. and his retirement. and it was also expected that gorman would take his place. not necessarily an upset that we learn this now. but possibly an orderly succession plan here? >> that's right. it certainly gives investors times, and as you said an orderly succession plan in place. it has certainly been suggested that mr. gorman would take his place as ceo. >> morgan stanley shares up about .25%. off of the higher levels, before this news, we've got $28.63 a share on morgan. we've got the closing countdown right after this short

citigroup and morgan stanley up five. while financials as a whole declined. citigroup interesting note. saying -- rockdale. everybody knows who we are talking about. dick bove. essentially he's saying that it does not look and although overtures to the fact it does not look like the treasury is going to in fact unload its stake anytime soon and nor does it looks like citigroup is in any sort of rush to raise capital. he's talking about five bucks a share. >> here they are raising $2 billion at five-year notes without fdic backing today. that's what the market loves and that's the beginning of the follow-through. their claims that, yes, we can succeed without the help of the government. this is the first step. it may in fact be. i would be of the opinion if these guys to get their bailout or pay back that money anytime soon would that be a huge mistake and it would send a very bad message tie lot of people that all banks are going to be backed up and bailed out from here to eternity and be allowed to get out easy and i don't think the government's going to let

in fact, having taken the e venn khaoul stanley cup -- eventually stanley cup champions and bringingng talent pool that includes the two-time raining mvp, they will meet today, the expectations, they are through the roof. >> they believe that we're one of the top half dozen teams in the league. >> what these things come down to is are you healthy? >> it's a year to make a real good push. it seems like we've been a year behind pittsburgh and maybe that's the case this year. >> finally tonight, a moving scene out here in anaheim last night. the angels, they clinch the al west. after their customary champagne locker room, the entire team, emerging from the clubhouse and they ran out to the center field to celebrate under the picture of them. you'll remember he's the young pitcher and the maryland native tragically killed out there and there is his mom who attended the game. they carried his jersey on every road trip keeping that out there before every game is and a nice treut paid to a guy -- tribute paid to a guy like him. >> yes, absolutely. >> are you ready for seven days? >> cool ag

stanley mcchrystal called for a change in approach as the keep to defeating insurgents. reportedly up to 40,000 more american troops. >> i would expect the public would ask some very tough questions. that's exactly what i'm doing. >> reporter: but, the president has been openly skeptical, sending more troops, warying of deeply involvement. >> do the generals keep coming back ask iing for 60, 70, 80. he wants to know that answer before he gets the next increase. >> i'm announcing a new strategy tr afghanistan and pakistan. >> reporter: they unveiled a strategy this spring, 20,000 more troops to the region and stanley mcclhrystal. they were marred by fraud. he faces dwindling support for the world. >> the bills are coming due. he's been appropriate and tough minded in his posture. the country is moving away from the war and his own party doesn't support him. >> reporter: aids say all options are on the table. they focused on targets of unmanned drones. robert gates is skeptical of a light footprint. >> if you walk away, the situation there won't deteriorate. i think it's u

general stanley mcchrystal reportedly wants 30 to 40,000 more soldiers. believes the u.s.s not reverse the momentum of the insurgents within the next year, it could become impossible to defeat them. the president is not convinced yet. >> until i am satisfied that we have got the right strategy, i am not going to be sending some young man or woman over there, beyond what we already have. >> senior defense officials say no u.s. troops are even available until january, after the iraqi election and right now there is no way to house additional troops even if they were sent to afghanistan. >> some tourist passing through the state of iowa get arrested as part of a advertising gimmick. police in clona iowa pulled over a car with out of state plates and offered passengers all expense paid trip to colona. rob and sherrill taken into custody and given gift baskets, dinner and overnight stay and got to meet the mayor. >> i was behind the truck that i followed for about 15 miles. and i could not have been speeding so i didn't know what i would have done. >> everybody has been so nice

the top commander stanley mcchrystal sent a report to gates in august. some of the report was published in the washington post today. meantime president barack obama will make his decision on this issue soon. >> one of the acorn workers in a hidden camera investigation said he is not guilty of doing anything wrong. juan carlos ver rez said he went to police, two days after a couple posing a a pimp and a prostitute asked for advice on human smuggling at acorn san diego office. police did say he contacted them but they needed more information. acorn employee responded several days later and said the information he received was not true and he had been duped. >> no one holds their tongue any more. rasmussen poll out shows majority of folks feel rudeness rules in our society. serena williams race and outburst. conway west stealing taylor swift's moment in the sun. and rudeness and public rudeness. 75 percent of those questioned say we're becoming more rude. 10 percent say we are kinder. and the rest saying we're too rude to respond. >> you cannot be rude on

morgan stanley upgrade, this upgrade from goldman sachs. they talked about the growth going for the next five years in a stock like textron, probably a little ahead of itself after this big run. but they're talking about 8% to 10% growth annually over the next five years. pretty impressive numbers. they gave you the road map for the industrials back then when you start to get the ism and durable goods numbers. >> let's look at the other sector today moving the market higher. financials. morgan stanley certainly leading the group higher on an upgrade from jpmorgan, eyer up by element 3%. also there's a lot of chatter about all the fees these guys will earn on the back of all that m&a action that we've seen for kraft-cadbury-f that in fact goes through. goldman sachs as well as others could share about $91 million. >> morgan stanley has struggled to get above 30 bucks so far this year, but it is up 72% on the year, and if you look at what morgan stanley is doing right now in the business model they are focusing a lot on m&a activity. they hav

buy morgan stanley, buy some puts. it's the lowest volatility you've had. each day the volatility gets a little lower. you can buy it at a 52-week high. you can still buy these stocks, buy yourself some puts, and you have the protection at the lowest level in not just months. in years. the volatility has been crushed right now in those stocks. >> so get in -- but buy the puts? >> that's exactly what i've put on in most of those names. >> you've highlighted what every manager right now on the street feels. it's maximum frustration. why? they're not getting the correction. and you're talking about in a declining market you have margin calls and a forced liquidation to sell. it's almost like right now as we go higher and higher and the end of the year approaches that buyers are going to be forced to have to buy. >> i'm going to guess on the other side -- you don't see a pullback here -- >> don't do it. listen, i'll say it again, you can't fight it. it wants to go higher. yes e think. but the pullback to me is going to be more than just a pullback but it ain't

and morgan stanley with john mack stepping down as the ceo. we obviously want to look at the move in the stock there. up about eight-tepts of 1%. cam bells soup, earnings beat expectations on gross margins. finally, topping expectations as well for tech. the team is covering the markets here in new york. up in chicago. and of course at the nasdaq. that's where we find our bertha coombs. >> thank you very much, scott. a lot of the earnings news, particularly when it comes to semi conductors, has been positive. we've had a number of companies in the last few days starting with texas instruments, asml, all saying that they're seeing a bit more demand and raising their forecasts. but today, the semis are getting hit. we've got a number of analysts today raising their ratings on chip stocks, including intel. intel getting up over at roth capital partners. the chips overall are chip resting today. quite a bit of profit taking in that area of tech because it's been one of the strong performers over the last few days as the nasdaq has risen. interesti

morgan stanley upgraded the enterprise hardware business. the price target taken up to 200 bucks at morgan stanley. jim goldman, as he mentioned, is going to have more on that. that's the story with the nasdaq. >> the folks around me with 15 minutes to put in the final trade. we're looking at gold prices we did hit an 18-month high, but gold has fallen below that $1,000 mark. a couple factors though that had gold prices at the highest levels that we've seen since february. number one, we pushed through those key resistance levels last week. 965, 980. that set the tone to have gold go above $1,000. we're looking at the dollar index at its lowest level in the year. and the sideline money coming into the market after the holiday weekend. that's fueled not only gold prices but oil as well. oil near $72 ahead of tomorrow's opec meeting. >> thank you, sharon. opec will be meeting tomorrow in vienna. melissa francis is there speaking with the power players already. she'll be co-hosting "the call" live tomorrow from vienna tomorrow right here on cnb

general stanley mcchrystal is up against an enemy that holds the initiative, and he's working with angovernment shot through with corruption. even with more troops, he warns, there has to be a "dramatic change in how we operate." that stark assessment comes from a man who is perhaps this country's most battle-hardened general, and according to those who have served with him, a one- of-a-kind commander. we went to afghanistan to spend a week with mcchrystal as he races against the calendar. we found him to be blunt, hard- charging, and fed up with the way the u.s. has been fighting the war for the past eight years. what you're about to hear is as close to an unvarnished war briefing as you're likely to get. are things worse or better than you expected? >> general stanley mcchrystal: they are probably a little worse. >> martin: what's worse than you thought? >> mcchrystal: well, i think that, in some areas, that the breadth of violence, the geographic spread of violence, places to the north and to the west, are a little more than i would have gathered. >> martin: that violence is catalo

mack struggle to return morgan stanley to profitability.s say confidence among consumers probably gained in september for the first time in three months. job losses slowed. stock index futures are indicating i slightly wholehighr open on wall street. the stock market will observe a moment of silence this morning. that is your business news. live at bloomberg headquarters in new york, i am linda bell. doug and alison, back to you. >> linda, thank you very much. >>> the news continues. >> it has been eight years since the last terror attack on u.s. soil. security experts say it is still too soon to let down our guard. >> in the weather center, a storm system is pushing into the metro. what does it mean for the hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you going to buy online? yes! discount! isn't getting discounts great? yes! there's no discount for agreeing with me. yeah, i got carried away. happens to m

morgan stanley reported a third straight annual loss. the winning streak on wall street continues.cks gain. we have future this is morning. a quiet looking slight but positive move today. >> reporting for wbal tv 11 news. >> baltimore mayor sheila dixon joined over local mayors to encourage americans to volunteer. >> michael bloomberg invited the mayor and a lot of celebrities to help jump sort the i participate program. >> we will do what president barak obama and the congress asked us to do and make america a country of service. >> the tv event is scheduled to run from october 19th- 25. >> baltimore mayor sheila dixon will be our guest sunday morning. email your questions to sunday questions at wbaltv.com. >> the time is now 5:22. we'll look at your morning commute coming up. taking a look ahead to sunday's raven's chiefs game. >> how do you plan to remember >> how do you plan to remember the hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you goin

morgan stanley chief u.s.berner gives us his forecast without a double dip on the horizon. >>> and a small pharmaceuticalmaker gets fat over a new trial for a diet drug. >> don't you have any respect for yourself? >> it's absolutely gross. that boy is a p-i-g pig. >> "squawk box" begins right now. ♪ because it's witch craft wicked witchcraft ♪ >>> there we go. a lot of requests there, welcome back to "squawk box," cnbc, first in business worldwide. what a virus. i'm joe kernen along with becky quick and carl quintanilla. our guest host, frank boefd, contributor and former chairman and ceo of honeywell. was she not the great witch? she was so scary. >> and her minions, they were scary, too. >> up 27 points, that much upward pressure above fair value. we'll see what happens. a lot of times, you know, on a witching friday, you don't know what is going to finally happen. that's why you've got to stay tuned until 4:00. carl. >> that's it? that's the toss. >> let me give it what it deserves. >> try that again. >> le

he's leaving morgan stanley. does this signal a conservatism in the bank? >>> gm sold control of opel to mac na. will that be enough for germany's angela merkel? >>> hello there and welcome back. gm has decided to sell control of opel to magna. it brings clarity to the unit's 50,000 workers. analysts said gm had no clear alternative because of the cost of raising millions of dollars to keep the brand and funding its restructuring. the german chancellor angela merkel has welcomed the decision. >> reporter: gm has decided to sell the group to magna has the german government has negotiated and welcomed. i'm very pleased about the decision which is what the dperman government had hoped for. >> let's talk more about the car sector with our guest host for the hours, khuram choudry. your thoughts on the autos at the moment? does it mangs sense to restructure the industry at the moment or do you think we'll reemerge from the slump that we've been in. >> we've come from a number of years where there's been excess supply and constant deflation in the car industry fol

banks like goldman sachs, morgan stanley, citi. >> and it's a huge driver.ns are phenomenal. you look at the m&a and then you look at some of these secondaries and the rash of secondaries that are coming out every single day. jenworth today, great example, $2 stock, runs to $12, they get out there and they're able to issue 48 million shares at 11.75. successfully. you've got to like the direction this is going. and how this was feeding into the banks right now. all of the various names whether it's bank of america, jpmorgan, morgan stanley, goldman sachs and -- i think you still have to go with sxhft best in breed there but if you want to come down a little bit one of guy's favorite names, jefferies, guy's favorite name, along with lazard. all these boutique -- >> jefferies looks unbelievable, looks like it wants to go back up to 29. and greenhill was up big today, the highest level we've sneen ghl since april i think. and it still has a big short interest they're all going to get squeezed and that heads to -- >> and if you look internationally the guys that