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Last Call: Facebook Finger Pointing in Full Bloom

"It's not whether you win or lose, it's how you place the blame."

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Ted Aljibe | AFP | Getty Images
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"It's not whether you win or lose, it's how you place the blame."

-Oscar Wilde

-Below, on its second day of trading, Facebookfinger pointing is in full swing as the stock drops 11 percent.

Robert Hum's Market Musings

  • Stocks stop skid with strong rally
  • Nasdaq has best day of year as techs snap record 12-day losing streak
  • S&P 500 posts 2nd biggest percentage gain of 2012
  • Dow rises for just the 3rd time this month, still on pace for worst month since September

What Wall Street Is Saying Tonight

Facebook Flop May Create a Silver Lining for IPO Investors/CNBC.com: Karina Frayter: “Facebook’s seemingly disastrous debut will likely mean fewer initial public offerings at even lower prices, ultimately a positive for investors. “Ironically, this is a huge plus for the IPO market,” said David Menlow, president of IPOFinancial.com. “Issuers and underwriters alike will overreact with below average pricings moving forward; and that means value for investors.”

Bankers Under Fire as Facebook Slips 11%/WSJ – Gina Chon & Drew Fitzgerald: “Facebook Inc. shares skidded on their second day on the stock market to well below their offer price, leaving some investors who bought in the social network's public offering in the red and raising questions about whether the company and its lead banker, Morgan Stanley botched the deal. The shares, which managed to stay a hair above $38 on their Friday debut with the help of Morgan Stanley, on Monday lost their footing, dropping to as low as $33 before closing down $4.20, or 11%, at $34.03. It wasn't clear what role if any Morgan Stanley was playing in the stock's trading on Monday. The sharp drop in the share price brought out critics, who faulted the banks who advised Facebook on the deal, saying it was priced too richly.”

Botched Facebook Stock Trades Draw Regulatory Review/CNBC.com - Jesse Bergman: "In the latest chapter of Facebook's trading saga, market participants were informed on Monday that regulators at the Financial Industry Regulatory Authority (FINRA) will be stepping in to oversee a process that will attempt to reconcile Friday’s botched trades. According to an alert sent Monday to traders, the review will center on a period of trading on Friday between 11:11 a.m. and 11:30 a.m., during which time investors did not receive order confirmations for trades accounting for some 30 million shares. The review could span as late as 2 p.m. on Friday, since confirmations came from Nasdaq in a steady trickle throughout the afternoon, according to a person familiar with the matter."

Dimon's Buybacks Aren't Forever/WSJ-David Reilly: Discretion is the better part of valor, especially when a megabank is trying to ride out a storm. So J.P. Morgan Chase chief James Dimon's announcement Monday that the bank will suspend share repurchases makes sense-even if it disappoints some investors. Until the bank can say its trading fiasco is firmly under control, and can fully quantify the loss, Mr. Dimon needs to proceed with caution. That is for both practical and political reasons. Although Mr. Dimon likes to boast of J.P. Morgan's "fortress balance sheet," he must keep one eye firmly on looming capital requirements. In announcing the more than $2 billion trading loss almost two weeks ago, Mr. Dimon acknowledged that this will slightly reduce a key capital ratio.

New From Altria: A Nicotine Lozenge/WSJ- Mike Esterl: “U.S. tobacco giant Altria Group Inc. MO +0.54%is moving into uncharted territory: the tobacco-less nicotine product. The maker of Marlboro will launch a nondissolving, lozenge-shaped nicotine disc called Verve in coming days, the latest foray by Big Tobacco into experimental smokeless products amid falling sales for traditional cigarettes. Unlike the smokeless products sold by Altria and its chief U.S. tobacco rival, Reynolds American Inc., Verve won't contain tobacco. Instead, the chewable, mint-flavored disc will provide nicotine extracted from tobacco. This is a crucial distinction. Richmond, Va.-based Altria is betting that approach will permit it to market the product with milder health-warning labels than those affixed to cigarettes and smokeless tobacco.“

Apple still dominates world's top brands: study/Reuters- Georgina Prodhan: “Apple has maintained its place as the world's most valuable brand over the past year, leading a group of technology-related companies that dominate the top 10, according to a study published on Tuesday. The iPhone and iPad maker has boosted its brand value by 19 percent in the past year to $183 billion, or 37 percent of its market capitalization, according to the annual BrandZ study by leading brands and market-research agency Millward Brown. Facebook, with a market value of $82 billion after its initial public offering last week, was the fastest climber in the top 100, seeing its brand value rise by 74 percent to $33.2 billion to put it in 19th place.”

Tomorrow's Earnings

Before the bell:

AutoZone, Best Buy, Medtronic, Ralph Lauren, Vodafone, Williams-Sonoma

After the bell:

Analog Devices, Dell, PetSmart, Guess

Tomorrow's Economic Data

1000 Apr, Existing Home Sales

1000 May, Richmond Fed Survey

1300 2-Yr Note Auction

Tomorrow on CNBC

Lawrence Lindsey, The Lindsey Group Pres+CEO (7:00am)

Sen. Jeff Merkley, (D) Oregon (7:20 am)

Donald Trump, Trump Organization, Chair + Pres (7:30 am)

Sen. Bob Corker, Senate Banking committee (8am)

Steve Case, The Case Foundation, Founder/Chairman (10am)

Michael MacDonald, DSW,Pres + CEO (10:15)

Julius Genachowski, FCC Chairman (11:45 am)

Thomas Melcher, Hawthorn CIO (2pm)

John Skipper, Pres ESPN, co-chair Disney Media Networks (2:40 pm)

Larry Kantor, Barclays, Managing Dir/Head of Research (3:30p)

Omar Ishrak, Medtronic CEO (3:40 p)

Ursula Burns, Xerox Chair + CEO (4:30 pm)

Glenn Britt, Time Warner Cable, Pres & CEO (4:40pm)

Jan Hatzius, Goldman Sachs, Chief Economist (5pm)

Sen. Mark Udal (D) Colorado (7pm)

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