ftse down. market rallied 10% this summer, but september is notoriously weak. the the worst going back 100 years. the highest set-up of the ecb and jobs numbers. >> how about banks? analysts are resetting for some banks. morgan stanley to outperform, but jpmorgan picks unover the other. >> big week for mario draghi. spanish and italian yields are down on that news as draghi continues to build his case. >> and you want somebody to blame for facebook stock price? andrew sorkin points the finger at the cfo. >> oh. we head into september after a positive august for stocks and a third consecutive monthly increase for all averages. the dow posting a sixth tenth of a percent gain. wall street's got a lot to focus on. ism data due an hour from now. friday, of course, the big jobs number. jim, welcome back. >> great to see you. >> so much to talk about. and you must be like chomping at the bit after having been gone for the past few days. >> 3:25 a.m. jim cramer tweets. why? we are now back in crunch time. will they deliver? friday, unemployment number. talk about what that means for the election. this is a make or break week in a month that has been make or break for years and you know what? i got to tell you, carl, i don't think is set-up is as negative, the european stock market has been right. it's been good. >> and good for some time. you have pointed that out. i always say what about the bond market. of course, and we see yields below that key 7%. we like to talk about that as a psychological barrier and they like to maybe tan one. we'll be watching that closely. also seeing on the frobt of "the new york times," it's not necessarily a new story, but it does have the tendency to exacerbate fears. that is capital flight out of europe over all. not just spain, but over all. interesting report by the way from nimora this morning. euro zone, the spanish problem, that is cited as well today by a number of publications, so that's also going to be a focus. >> and this is a time where i have been saying santana, bva. when they're up, i always feel like capital flight may be a sensation or that there's a plap. i think one of the things we have to focus on is we think there's a plan. we think there's something. everyone keeps saying there's a plan. you know, but it's almost as if as long as it's out there, we're fine. same thing with china. hey, as long as it's bad, it could be good. i think this is the month where we find out if it's bad, it's bad. >> you're referring to some chinese data out over the weekend. the pmi 2 was a miss. >> i remember the analogy i use today use when i was trading. it's a four-engine plane. when one engine goes, they star to swing into action. when four engine goes, it crashes. >> it's going to be a very long flight. never going to get there. >> take your seats, right? trays to the upright position. so, do you position into this week with a positive bias? and if so, are you counting on something big on thursday? >> come back to the issue of earnings. campbells, mm mm good. come back with medisis. suddenly, jonah, who's always tried to realize, he sells the company and the stock goes up. these individual stocks continue to amaze even as the macro continues to beat on edge. >> and it seems that has been the winner at least through this summer. >> yes. >> but again, to your point, that dynamic could change now that we're back. by the bay, volumes are extraordinarily low. because it matters. there's no participation in any deep way in the equity market. 1998 was a good year. >> i would sit there with you and we would be like the pre market buy is better. >> and you'll hear and the only volume going on is the machines themselves and that's it. >> if you have 10,000 medisis, you're not thinking about volume. you're thinking do i sell or sxwrus let it ride? >>. >> $44 cash deal, but there is a very little spread in that if we take a look at medesis because the last time, cephalon got an overbid. valia valiant, i think they're corporated in switzerland. very favorable tax rate and basically rolling up companies. they're an acquisition machine. >> it's going to get darn exciting again. august was kind of, remember august last year? i remember i went to see the eagles training camp in august and the guys were saying like, hey, what's going to happen. this time, they were like, hey, is vik okay. we actually focused on football. and as the giants play tomorrow, could be overshadowed by ecb on thursday. >> the ecb is going to meet thursday. expected to announce details of the bond buying program. prices, what's been going on, 1998 feels like. ahead of that gathering, mario dr draghi is telling european lawmakers that purchases of bonds by the central bank would not reach eu rules. in the meantime, moody's is changing its outlook to negative and the agency warns it might downgrade the block on the four biggest budget backers, germany, france, the uk and netherlands. >> on top of that is a reuters report that draghi's, his nemesis, is increasingly isolated in his opposition to bond buying, so if some of the gate keepers start fawing by the wayside, i wonder if you think germany does turn around. >> the german data is starting to become hideous. remember the german stock market, germany's up 18%. so you've got that, is it up because people feel something good is going to happen or was something good had happened. the the germans do not want to commit financial suicide. we did have that moment where it seems like things were getting together. discord is not in the market. >> right and of course, it always comes back to germany and it its decision. >> they're the rich one. >> they are. they are. >> and gold started going up -- >> germany's also slowing. >> yes. >> and that's important. i mean, let's just step back. we've got china slowing dramatically. or not? >> you know -- >> a year ago, what were we looking for for gdp for china? >> we're not to the point yet. if you missed the quarter over in china, they execute you. i don't -- the numbers are important. beating numbers in china, exercise in staying alive. >> also helpful if they could build a highway or bridge -- >> that lasts more than nine months! you quibble with everything on on me. the bridges have to stay up. there are things that the dhi chinese have done is endless building and not necessarily being careful about it, what seems like is if europe, where 20% of the products they dump go to, doesn't turn around, it doesn't matter what china does and i don't hate china like a lot of other people. i think that china has also made it so a lot of things are affordable. i don't want dumping. >> but it's not a zero sum game. >> thank you. >> i'm with you. >> let me raise one thing. a poll last week asking people what the number one factor will be for markets in the fall, far and away, 80% said election, so how do you trade in front of a binary event still 60 days wa way? >> i don't want to declare anything over yet, but unless you get an october surprise, unless you get some hideous unemployment number, i still think the polls read pro obama. a lot of buzz on vacation about the 49 state sweep. utah, maybe wisconsin. i don't know. >> market positive? >> i'm saying that what i like, there's a lot of stuff saying if the challenger wins, it's good. i just like to know what's happening now and if you remember, if you know that you're going to get obama, you can do some planning, it's not necessarily positive planning, but you can do some planning. >> is the polling scientifically approved? >> i think a couple hundred responses. >> he's tamped in -- >> restaurant rossling or what was it. >> 157. the oieo. >> morgan stanley. >> got a great idea for the show. >> is it important? i should come back to spain's more important. i don't want to de-emphasize politics, but if spain, as spain goes goes new hampshire. how about that? give a little landon. >> morgan stanley receiving two upgrades. mike mayo upping the stock to buy. but they differ when it comes to goldman's. jpmorgan downgrading firm to underweight from neutral. jpmorgan says its preference is based on valuation and they sort of have a reset in their strata of preferences for all the big investment banks. >> david and i often joke, it's been joking, about the morgan stanley book value. i'll say morgan stanley trades at approximate book. i was looking at a little history, i went back to the may june period of 2008 when people were recommending morgan stanley trading at 1.4 times quote. you get to what, where are we some hideous -- >> yeah. >> it hasn't meant anything. >> no, not at all. >> and mayo, let me be critical for a second. i haven't made a lot of money following mayo. he's excite, interesting, but so is the series of movies. i find that avengers was interesting. >> that's a good point. he may not be somebody you want to follow in terms of -- that may be the case, but i'll take interesting because that's more than you get from most. >> it's a meredith whitney interesting? >> yes, she's thought provoking. she may be wrong. may have been very wrong on municipal bonds, but it forced a discussion. that's something. >> clint eastwood. >> yes. >> and outliar argument. >> made it more exciting. no judgment being made here other that be seemed crazy. >> did he have to something to say of munis? >> illinois gos, like the downgrade. >> a lot of buzz this morning, an article in this morning's "times" writes about facebook cfo. is he to blame for the social network site debacle? he appears to have badly judged demand and that the cfo signed off on the ever increasing price which ended up at 38 after the company planned a range at 25-34. also 25% more shares than the company planned in the final days before the offering. david, you reported recently that he has come back to the street looking for support as lock ups expire. >> yeah, they started a road show back almost a month ago. august 10th is when i first report reported they were reacquainting themselves with dwrefly selling stocks to those who already owned it and those who didn't. >> as we've seen those lock ups come. i thought one of the more interesting points in andrew's story came at the end where forget which ipo follower it was, but 90 days after was a good time to judge it's how well or poorly it's done and they will typically be well below a year after their 90 days after the ipo. >> so this is a broken stock. we've talked about it many times. clearly terribly mispriced and the other point andrew makes and he'll be joining us in about an hour or so, what's the impact on confidence at the company on those who would perhaps not stay any longer because what's in it for me in terms of my options. >> jpmorgan and morgan stanley, lower price targets. i want to call out andrew for the courage of this. i think people don't understand when you finger someone, when you say it was this guy, you know, saying was it morgan stanley, you know, you've got to pull that and also, a lot of people don't understand, it's the cfo that controls this process. here, even more because you have a ceo. and this was a deal where they would have liked to have been able to, there were pushbacks. morgan stanley would have liked to have cut the amount of shares because they started seeing the retail network was going to be flooded with it. that was a kind of a good relationship. this soured even that relationship. >> yeah. it was completely and totally mispriced. it's fair to say that. the nasdaq problems on that day, yes, they were significant. but at the end of the day, facebook never should have become public at that price and there were still plenty of people to blame. yes, the cfo does have a lot of power in that relationship, but if your banks are saying you know what? don't do both. don't go up in size and price. do one or the other. perhaps rethink it. >> david, i've been trying to get this. this is a piece of data that would really help. there were a tremendous number of hedge funds that got into the last of facebook and they were all high fiving. at the beginning, around when this deal became public, you could not deal with them. you'd be in a room with them and they were like, wow, i got in at this. i mean, the november lock, if you got in at 24 and you're a hedge fund, what's your plan here? were you shorting it the whole way down? >> that's part of it. probably hedging yourself on the way down. also under water right now. a lot of them had 180 lock ups, so they're not on locks yet. most of that money is not on locks for a while. >> when you send that performance letter out, you tend to address what you own publicly. i know this was a very unusual deal and i think there's a lot of hedge funds that are saying oh, man, wait until my partners find out. >> you're talking about hedge funds that got in before. >> there was a significant secondary mark, which is interesting colors, also, that there was so much facebook trading in and the ipo sort of marked the beginning of the summer. we're now putting the cap on the end of the summer and i wonder if you think the pain that has lingered all summer long is going to keep some from returning to the markets as they get back to work. >> i've never seen people take two and three weeks vacation at the end of august. >> you haven't watched me. >> true. but you're mixed with that same period off. >> we went seven of eight? >> i'll see you in the playoffs, not. >> lit we'll play off for fourth place. it will be great. >> i think you raise a great point. there is a sense in the old days that we come back and you'd suddenly see this flurry of activity. i don't see it. >> you don't? >> i see the the news being big. i don't see more people coming back saying let's get in this. >> but i shouldn't talk about volume at all. >> look, you want to go sell, you want to sell morgan stanley in this upgrade, you can sell all you want. i'm just saying that new players are not coming. forget about that nasty baseball. there are some big deals coming. i just don't want to say that to get more excited. i'm more excited and the news is more exciting. >> and i'm happy for your success. >> i wish you luck against the cowboys. >> maybe one or two. tomorrow night, right? >> 8:30 p.m., nbc. ahead, eric on tomorrow night, who's the vice president, t number two at the nfl. will the refs come back? i saw some reffing last thursday. a nightmare. off sides. no, no, it's not. it's procedure. number 67, he's not playing. >> we're doing high school football. >> on the nca d 1 refs are locked up. next, a tale of two tech giants. why the launch of the new iphone could change google. take one more look at futures as we kick this shortened week off. moderate positive action on the dow. more "squawk on the street" is live when we return. 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[ all ] i'm with scottrade. and is facebook cfo really the the one to blame for the botched offering brings us to this morning's tweet. how might -- make up for the 50 billion loss in market value? tweet us, we'll get your responses later on this morning. people have unique views of what punishment might be. i imagine they'll come up with a couple. >> well, this was a fabulous piece. again, i don't think people understand how hard it is to write that piece. you're basically, i mean, we've all been involved with morgan stanley, people behind the scenes, facebook, about who is really to blame. and when you read this article, wow. >> i don't remember a cfo getting fired though for misprice -- for being involved. >> i wonder whether there are people who congratulated him for being able to basically pick off the market. >> i got $10 billion. raised a lot of money. >> by the way, is this one of those, i'm going to talk about this tonight on "mad money." did they know how quickly mobile was slowing down? they hate it when you say wreck i ing. slowing down. slowing down the revenue projections. >> that is a key question. >> when we come back, full speed ahead for cramer. can we say the stock he's getting ready to talk about, but mad dash makes its triumphant return. futures one more time. back in a minute. tdd#: 1-800-345-2550 you should've seen me today. tdd#: 1-800-345-2550 when the spx crossed above its 50 day moving average, tdd#: 1-800-345-2550 i saw the trend. tdd#: 1-800-345-2550 it looked really strong. tdd#: 1-800-345-2550 and i jumped right on it. tdd#: 1-800-345-2550 since i've switched to charles schwab... tdd#: 1-800-345-2550 ...i've been finding opportunities like this tdd#: 1-800-345-2550 a lot more easily. tdd#: 1-800-345-2550 like today, tdd#: 1-800-345-2550 i was using their streetsmart edge trading platform tdd#: 1-800-345-2550 and i saw a double bottom form. tdd#: 1-800-345-2550 so i called one of their trading specialists tdd#: 1-800-345-2550 and i bounced a few ideas off of him. tdd#: 1-800-345-2550 they're always there for me. tdd#: 1-800-345-2550 and i've got tools that let me customize my charts tdd#: 1-800-345-2550 and search for patterns as they happen. tdd#: 1-800-345-2550 plus webinars, live workshops, research. tdd#: 1-800-345-2550 whatever i need. tdd#: 1-800-345-2550 so when that double bottom showed up, tdd#: 1-800-345-2550 i was ready to make my move. tdd#: 1-800-345-2550 all for $8.95 a trade. tdd#: 1-800-345-2550 can you believe it? tdd#: 1-800-345-2550 i love it when you talk chart patterns. tdd#: 1-800-345-2550 open an account and trade up to 6 months commission free tdd#: 1-800-345-2550 online equity trading with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-877-656-8765 tdd#: 1-800-345-2550 and a trading specialist will tdd#: 1-800-345-2550 help you get started today. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ time for cramer's mad dash. >> it's amazing t. quarter was bad. some controversy. >> understating it, but yes. >> the death of his exgirlfriend and son. this deal, okay, you were hard pressed to think medisis could go against allergan and win. how do i know these things? not from experience. why is value doing up if it was such a -- >> casteele and valiant has very nice treatment, swiss base or incorporated. right off the bat. valiant up 11%. we'll keep an eye on medisis. >> we've got the opening bell. about three minutes away. join us. 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