After yesterdays strong rally following on the heels of wednesdays strong rally, were up about 1 on the dow. I dont like to talk about the dow but unless the s p stronger. China did all right. Shanghai up 1. 8 . Shenzhen up, and nikkei at a 3 gain. We were below 2 at one point on monday in the craziness, but now were hovering in the 1. 2. Crude had its best day in many years. Well above 40 again. Monday, we fell below 40. It has been, to say the least, a volatile week in many markets. Lets get to our road map this morning, and it starts with the last trading day of this wild week. The dow coming off its biggest twoday point gain ever, not percentage but point gain. Equity futures, slipping. Carl icahn has his next target. Why commodities . Why now . Well talk about a company weve talked a lot about and mr. Akahcarl icahn himself, and the takeover continues. Pa perrigo is saying were not interested. Ill have more on what to expect as the Companies Battle it out. Futures moving to the downside after the strongest twoday rally in the s p since 2009. Thats on a percentage basis. Both indices up over 6 over that period. This morning, the s p, nasdaq, and dow are actually positive for the week. Positive for the week. As you were saying to joe on squawk on the street, though, it doesnt necessarily engender confidence for the retail investor, which i know we care about. I think theres people pulling out again. I think that flash crash on monday is not talked about enough. You were deeply affected by it, because it was very clear that it was so disorderly that it was it was shocking. And there was something wrong. There felt like there was something wrong. We came in think 3 , and some Major Companies were down 20 . Then you think what is my hardearned money doing in something that can use that much money. Ge stunned me. It was 20. Jpmorgan. Cvs finished up. The week it was down 30 points from where it is now. This is the kind of thing that makes it so that people say ive had it. And maybe they had it in an s p fund. Weve had so many of those through the years. Have they had it or not . They had it after 2000. They enjoyed an encredibincredi up. Then we lost a generation of investors. Then the flash crash drove out what might have been, and then there. But quantitative funds that run algorithms, and high frequently traders run the market. And the capacity is not set up for it. There arent that many people involved, and the machines can run amuck and the people who defend the machines are people who make money because of it. Etfs are a retail product. Thats where they go. Right. They dont care that didnt work very well this week either. They broke down, and i think thats the enduring story of the week, not the fed. We could say mr. Dudley went pragmatic, but what really happened this week was, once again, it showed if you use market orders, you sold cvs, and people who used market orders, over 200 dont use limit orders. Why would they ever come back . Five Brokerage Houses broke down that way. These are the kinds of things that people say i cant do cds, maybe ill do a mutual funds but im not going to buy and sell stocks, and i cant blame them. If your Brokerage House is down and you sold some stock at the market because you were worried about fridays close so you might have said i dont want to be in, you got, actually, lows that we havent seen in ages. But if you were somebody who was on vacation and really taking a vacation and not looking at your 401 k or your investment portfolio, should you be lucky enough to have one or your i. R. A. , it was a fine week, and what do you do now. Stay the course. I dont want to default to warren buffett. Im not warren buffett. Hes unbelievable. A great piece today about how one of the investors is buying berkshire hathaway. I find that you have to stay the course. I was on the today show a couple of days this week. I said panic is not a strategy. There were a lot of bears who came and were in the papers who said i told you so. And then you got market orders, and then they were back. On twitter we saw them all. The attacks we received as discussing the underlying strength of the u. S. Economy. Yesterday you get a 3. 7 gdp print. That was while we were on air yesterday. It seems to have sparked an were hearing from everybody. September maybe not off the table . I dont know. I think that dudley has put it thoughtfully. He said, look, were going to be pragmatic and take a look at the situation. If the chinese prop up stocks. Yesterday and the day before, excuse me, yes. After we heard reports they werent going to do 2345. Thats about a 10 move in the market since they began to intervene in their market. The shanghai is stale down about 8 for the week, i believe. Think about what theyre really buying. Is shanghai composite is down. The shenzhen is up nicely for the year, up very big, 26 . Its basically the nasdaq. Okay, it contains 1,767 stocks. Of the shenzhen, 208 are unprofitable, 742 sell for more than 45 times earnings. Theyre buying these stocks aggressive, the chinese government, apparently theyre going to buy them. They give you a taimetable. Theyre going to buy them through the anniversary, war. I thought i missed something. Speaking of japan, its not as though they have not been aggressive in buying anything thats not nailed down. I understand. I tried to analyze the companies in the shenzhen. You google them. You google them, and you feel like, wow, okay. That company, the silvery dragon prestress met Materials Company and the angel ease company and the black carbon company, i dont know how well theyre doing. Really fun if we could speak mandarin and just bring squawk on the street over there and just do this show every morning. My stepson was in china last year for a long time, and he said, look, these are all the companies employ a lot of people. Theyre staterun companies. They like to have names that pop, that have great attention, but when you look at the shenzhen j its filled with companies that sound like nasdaq 2000 companies. When you see those kinds of p e roche ya ratios. I get nervous because we know in 2000 you started hearing, dont worry about earning. Eyeball, eyeballs, eyeball. I gave a speech at the top for goldman in london any sai said tired of hiring ophthalmologists to determine how many eyeballs companies have. We spoke about free support mac marijua run. Theres an 8. 5 stake in the companies and shares are undervalued. Hes planning to talk with management about costs and potentially try to take a position on the board. The stock was up sharply yesterday, recall, prior to the disclosure by carl icahn of the stake because they cut their cap ex. If recall, free port, think about copper. Theyre a huge producer of copper but they also bought planes, and mcmorn, it was a deal that investors hated at the time. Weve sat here for months and months talking about this company. Weve looked at the Balance Sheet. Yesterday they showed they had flexibility. Sometimes you can forget they have a lot of things they can pull on, including taking cap exdoecap capex down. Theres no better investor than carl icahn. When it comes to instinct, he is the man that you want to watch. Now, he owns his stock higher. He owns a lot of these energy companies. He owns chesapeake, ja near, but he sees something. Its all his money, even though hes down big in energy, hes willing to sit there for a while and he clearly sees value. We had the ceo of bp on earlier. He has cut back capex in some areas. You need oil to do better. There was a short squeeze in oil better. You need copper and gold to do better. They cannot create demand. This is not a situation where you see someone come in and say were going to cut this and do that maybe if he becomes secretary of treasury in the trump administration, he can go to china and create demand. Lets not go down that road. I think youre dealing with a company that is uniquely levered to china, and levered to labor issues in indonesia, levered to a Balance Sheet that just because you cut capex, it doesnt produce the sheets you need. It had been well run, but the acquisition made me feel in a im wrong to think that theyre well run. I wasnt sure if the acquisition didnt raise eyebrows itself. With mr. Most ffit, but hes buying the equity. A billion dollars for carl icahn is not that much. He has plenty. Hes eclectic. Chesapeake is daunting, because chesapeake sold their oil and sold a lot of their but really sold a lot of natural gas, and its holding out well. That turns out to be the best of the fuels. Look, lets see. I cant change my view about the demand side. You just dont like fsx, you dont even like it with carl icahn. At this level, at 11. You taught me to be a debt guy. I am. So is carl. It made me think twice. I feel absolutely that there is value to the company. I just didnt like the acquisition. And before the acquisition, i did like it. Value destroying acquisition. Now they want him to get rid of it. Hey, good luck. All right m. The latest in the takeover battle. And then Stanley Fischer. Steve liesman will be speaking with mr. Fischer. Also ahead, shares of kate spade down sharply this year. Could the worse be over in well have an interview with that ceo coming up, and lets give you one more look at futures as we have about 15 minutes to the opening bell. A lot more squawk on the street after this. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. For in terms of the open about 14 minutes from now. It appears were going to be opening lower. The stocks have been up nicely for the week. If you never watched what happened on monday or tuesday, youd be quite, perhaps, happy, think it was all just good and more of the same. Well see how we actually do open as the day goes along. This morning mylan announcing a proposed insolicited bid for perrigo. Theyve been pursuing perrigo for months. Its planning a tendser offer by mid september. Perrigo expressed confidence that the shareholders will reject what the Company Calls the mylan destruction transaction. The tender will be open far couple of months. Perrigo is down sharply since teva went away. Jim, this one is going to get nasty from here. And let me just sort of paint it out for you where we go. Mylan has said its willing to accept as little as 51 in that tender and close it and take control of perrigo. That is not ideal, many would say, and theres a big argument between the companies as to what you can get in terms of synergies if you only own 51 . That being said, mylan is going to use the coercive nature of that to, perhaps, get as many as people to tender in saying you dont want to be part of a minority, a minority shareholder in a Company Controlled by robert cory, the chairman of mylan who we talked a great deal about in the past who is nothing short of a wild man in many ways, people say. People who know him and use it as an endearing term. But certainly relies on a very liberal Corporate Governance structure as a result of being corporated in the netherlands. Well see. The big arguments are going to be over synergies and value, of course. Right now you remember perrigo already rejected 205. This deal is worth about 193. Mylan has to get the stock price up. Well see whether its successful in doing that, but at the same time you have a lot of risk arens in the stock. A lot saying im not going to take the risk of being a majority shareholder. Then theres a 60day period after the initial tinder. If they get above 50 where they can try to get the rest to come in. Its very coercive. The question i have for you is given perrigo is going through this, is there another potential buyer thats been watching and waiting, and, of course, another sq is whether theyll make the decision to say were for sale, perrigo, were exploring alternativine alternatives . That would chemo seem to be key to making sure mylan isnt successful. This is a great analysis. Im sure people are saying how is it possible that you could hurt so many people at such a big percentage. Ive identified joe papa, they managed to take up tremendous share in johnson and johnson, but if you bought something that looks like peptobismol, thats him. The stock has gone from 50 to 180 since ive had joe on. And every time they got a very big slate of new drugs that are going generic next year. Its going to be a big year for perrigo. This feels like air gas to me. If you remember, the company just said, listen, if you just give us a chance, were going to be able to do far better than the air products bid, and typically, i did not ever side with what looked like an entrenched management, but there the management there, it was the board that had that decision. In this case under irish law, its the shareholders. Its going to be their decision. Theyre being urged by perrigo management not to tender. They say were going to generate the value if we have to do it organically or inorganically. I dont know why theyd put themselves up for sale. This is the premier knockoff company in a time when people have said i like knockoff brands. I figured it out. My kids didnt care whether they bought the name brand or not. Its a shame. If joe loses this company, it would be a shame. Were going to have a lot more following that battle in the months to come, but in the minutes to come, we have cramers mad dash as we count down to the opening bell. Be sure to stay tune for the interview with Stanley Fischer. And heres how we look as we get close to the open. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end august 31st. Share your summer moments in your mercedesbenz with us. Ahh. Steve, other than making me move stuff, ces. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Theres a look at futures this morning as we head toward the open. Potentially lower open. Charles swhab having troubles this morning. It may not be operating properly. This friday, what do we have . Im an aficionado of Conference Calls. Ulta salon had one that i would tell you is perfect. You have Comparable Store sales at 10. 1 . Its a beauty parlor in the back. You cant amazon a beauty parlor. They have the high end and the low end covers in terms of all their Hair Products and fragrances. This was an ideal stock that was up eight last night after they reported. Eight points. No new its barely up 8 . This is your stock to watch. This was magnificent. Its better than big lots. Big lots boosted the forecast. Everyone is going crazy about big lots but ultra and dylan delivers, and if it cant close up, were in a little bit more of a sick market than we think. This was textbook. Ulta is the key that the market . Thats right. The customerrelations management is the best ive seen in terms of email to sale and to people going there and mary di dylan is the most unsung retail person in this country. If you ask whos doing it right, they always say mary, always. Ulta one of many names well be watching including the broad number of stocks that seem to be poised to open down on this week. Two streetlights. The only difference that little blue thingy. You see it . Thats a sensor. Using ge software, the light can react to its environment getting brighter only when its needed. In a night, it saves a little energy. But, in a year it saves a lot. And the other street . Its been Burning Energy all night. For frank. Franks a cat. Now, two things that are exactly the same, have never been more different. Ge software. Get connected. Get insights. Get optimized. Youre watching squawk on the street. Weve live from the Financial Capital of the world. The opening bell set to ring in about 40 seconds. Is ulta really the key to this market or was i kind of kidding around and putting words in your mouth . I find when you have a benchmark of a good company and it delivers a double digit, that is something you want to watch. The other one you want to watch, citi has a great piece defending krogers. Krogers also a stock i follow to measure money that thats scared of the international. Scared. You do kroger, ulta, a big lots. Youre not going to do zoeys or game stop. The game stop is going to get a hit. Zoeys is disappointing because the labor cost went up. Labor cost going up, probably a good thing for many workers. That was the opening bell. At the big board, ameritrade institutional celebrating the anniversary of the investors advisor act. Pakistan celebrating the 49th independence day. You look at the realtime exchange, a lot more red on the board than green. This coming off two very positive sessions. In fact, we havent had two sessions where we gained over 6 in the s p. Its been a long time. Six years since you saw oil go up 10 in a day. These are not good signs. When you see this level of ulta, you dont get confident. You get nervous. Lets talk about the individual equities. Oil companies had a great day yesterday too. Do you think oils move up helped the broader stock market . Very much so. When we go do our own investigating, we keep hearing the stress part of the economy is oil. There are companies that can sell futures and raise cash. There are other companies where someone might say i can sell some bach in here, people will get excited. 10 is going to an airline realizes maybe we should be hedging a little more. They airlines hedges in different ways, United Airlines added to the s p, should add that. It allows a stretched oil company to sell more futures and get a better price. That takes the near term off the term. I think oil is going to be lower longer. And the story will not be a positive one. Propane, we are, we dont talk about it. We are exporting, we have so much propane we export. Its bbq season. A lot of people think about propoen. Im sure theyre buying it and thinking its cheep. Thats what were allowed to sell overseas. Jim, yesterday you were bringing up the point, at least wondering out loud, what are the saudis going to do . When are they going to have enough given the cost of the war theyre waging in yemen that we dont talk a great deal about. Not to mention maintaining social order to their country the way they can. The idea being that they are not theyre going to give and say okay, were going to cut production. Do you think that that played out at all yesterday in the movement and the commodity in. I think theres continue wall rumors that they have to let go because they need the defense budget. If youve noticed the defense contractors, look at general dynamics. These, were arming the world right now because were not being the Police Person of the world, and i think we have to stay close to the saudis brinking. Ir blinking. Iran is going to be on. Theyve been saying well do anything necessary to get our market share back. You have to understand the refineries that we have in the united states, and the saudis, you can take our oil. We dont want to lose you as your customer. They can undercut anybody except for some of our producers in eagle ford which are cheaper right now, but as long as the saudis say well undercut anybody and send the oil around the world, you cant get oil to lift anything substantially. One day does not make for a change in the landscape. Theyll either be in or sell fufs immediately. None of these companies is cash the number of companies thats cash flow positive right here, minimus. Thats what people have to watch. We talked a lot about that, particularly as hedges that have previously been on roll off and then they start to look at lack of generation. The really the implosion of china. If you have balken oil, its hard to get it someplace to get it refined. The discount. Theres canadian oil selling for 30, sometimes 25. That heavy oil. Sun corp. Cant be doing very well. You dont want to own it. Its too early. Something yesterday, free supporport. This follows yesterdays cut in capex yesterday. Hard to imagine theyre going to put up that much of a fight. Its got about an 11 million market value. Remember how this thing has come down. Carl icahn has a huge short on high yield. Hes been critical of that. He has a cds to make advantage of potentially widening spreads. Yojim cramer on a twitter, people say how could you still hate it . Do you like something more because carl icahn is in . Yes. This free port is run a little bit more like a private company. I think when you go down there, if you were 3g and you came in on fcx, i think you would find things that youd think were excessive. Maybe, hunting clubs, planes. Carl icahn doesnt like that. It will be interesting to watch. The financials you were talking about being a key to the turn around on wednesday. Im looking at them this morning. Theyre all down, as you might anticipate. The tenyear yield, lets call it hovering in the 2. 13 range. They need the 30year to go higher. They need the tenyear and 30year higher and the federal fund rate to stay low so they can make money on your money without risk. That is why when every time you hear a fed rate, mr. Bullard came out ago, a dogmatic fellow, every time you hear the rates have to go up, unless the 30year goes higher, you know the estimates have to be cut. Thats why a u. S. Bank, a fabulous bank, was just crushed. Crushed. And jpmorgan, we know that theyre a good bank, but it doesnt matter. Theyre a bank. Facebook announced that 1 billion users logged into the social network on monday. 1 billion users. When you speak to the ceo at pop eyes or sally smith at buffalo wild wings, last night on mad money, talking about social media is the way to go. By the way, weve all seen a very big action in buffalo wild wings, social media is the way to go. Who is social media . Google and facebook. They feel like they pvh telling me about all the money they make on facebook without doing anything. You link with someone who has a lot of followers, and your business goes up. You put games, theres promoting of new each week they might have a new chicken sandwich or something and they promote it on social media. With little games and stuff. It all works. Dominos, such a technology experiment. People go to dominos, they go to facebook. After i left yesterday, i did some more work and tried to sharpen my 2016 number for facebook. I think 3 is conservative, and its growing at 30 . Remember throughout the bullish Hedge Fund Manager i spoke to saying 10 in 2020, theyre not even near monetizing the different things. Think about it. Theres no cost. The revenue per employee is off the charts. Ruth porat will make that with google too. And they dont need to spend as much, targeting capex head count. I look at google, what an unbelievable business. You have to generate csi at facebook . Do they have to do that . They dont have to do program. Do they have to pay the ncaa for rights . No. They dont. What a remarkable model. Its a great business. Its great. They dont have to go write a check to the nhl. Nothing. Well, that check is not that large. No. Nba. Thats a large check. It is a large check. The nfl is a giant check. Espn is probably thinking we wrote a lot of those big checks. I think they wrote the checks before google. And fox. Look at that stock. That stock has not come back. No, 27. 89 on that stock. Down almost 25 , fox, this year. And they have Great International products. They do, and the multiples in the sector, immediately now were talking about traditional, have been crushed. Viacom is trading at Something Like seven times. Does time warner, does fox come back to time warner . I think eventually consolidation is without a doubt going to be a theme were going to hear about, i think even this year, but not amongst the largest players yet, i dont believe. Certainly not at time warrener fox. The ongoing story yesterday, people were saying disney is back. If you look at it longer term, im a believer in disney and bob iger. I think when the stock got to 95, that was a great opportunity. They had taken off 27 points, and its not like the company is doing badly. They just had some subscriber losses with a small guide down, but you have star wars. Its big. Theme parks are remarkable. Shanghai, we might not like it at this moment, but hearing about spend, actual people in shanghai and theyre buying the nice shirts and iphones. Theyre going to line up for years. Im still a believer in what bob iger is doing and ill bet we find out he bought a huge number of shares. Thats a key point as well, buybacks. One of the things that i urge people to not sell game stop. I know the guidance was conservative. The stock is down badly but paul reigns is a good ceo. Hell be buying back stock and youll be sell it to his buyback. Thats not a smart thing to do. He had deservetive buys. One of the analysts said i think that guy is conservative, and mr. Reigns said dont you want us to beat our numbers . We have to underpromise and overdeliver. Hes a genius. Hes running a company thats being compared to block buster . They have phenomenal loot business, the Little Things associated with games. Theyve had xbox one two fantastic. Theyre doing well and people arent reading the Conference Call and theyre saying guidance is bad. Hes reinventing the company. I had been somewhat critical, and it turns out theres a great piece this morning that talks about the bear thesis is not panning out, and those who are selling the stock are reading the headlines and making a judgment based on the headlines. If you read the Conference Call, youd be a buyer, not a seller. Thats jim on game stop. Lets get to bob on the broader market. Good morning. And happy friday. Starting to look like a friday in august. The least volatile day weve had on the week. We moved in a narrow range overnight, 15 points, that would have been titanic in a normal day, but considering what we had this last week, it was pretty quiet. Take a look at sectors at the open. Modestly to the downside, financials, tech, materials and industrials. Materials just turned around. Most widely held, on the mixed side. Not nearly as volatile as weve seen recently. Google is down a little bit. Jpmorgan, pfizer also down a little bit here. Take a look at the beautiful symmetry in the vix. The s p moved 2 in 25 minutes yesterday. Every short in the planet has been nuked in the last couple of days and guys who put in puts at the beginning of last week or t theyre out of money. The vix went from 53 to 26. It went up and then cut in half. No wonder the shorts are scratching their heads at this point. People were puzzles earlier in the week. We had a debate about why were getting those huge market on sale orders. These are the largest single weekly outflows on record that citi has, and this explains why we had the market on close sale imbalances. Most of the market on closes is from institutional traders who are representing retail people sent notes to their mutual funds to sell part of their holdings and they sell them at the end of the day. Thats when they figure out what the net asset is. Its based ochbt clon the closis now we have the answer on close issue. Shanghai, the important thing is another big session in shanghai. Look at the afternoon. Government was buying. I had a discussion about how they knew the government was buying. They watch the Government Agencies that are known to be using big brokerage firms, cicc, if t government uses them and everybody watches. When they see big flows coming out of them, they assume the government is buying and they biggie back on top. Pension funds starting to buy soon, and i think thats important. A lot of talk about china having to sell treasuries to raise cash to defend their currency, and this may be why we had a lot of pressure on treasuries this week. Interest rate sensitive looks, like utilities and Home Builders and Real Estate Investment trusts and regional banks were all under pressure this week as a result of the move in treasuries, and heres some of the knock on effects of trying to do Something Like selling treasuries if youre china. I think thats an important story. Heavily shorted sectors, everybody said its a short selling rally. Thats lazy, but stocks that short sold did better on the week. Look at u. S. Steel, these are all heavily shorted. Theyve done better than the market. Weve also seen big etfs that nobody has cared about for a while at very heavy volumes in the last couple of days. Semis, emerging markets and oil service all out of favor for the longest time. Big volume this time on the upside, the upside big volume is something we havent seen in a long time in those etfs. Tgif. Yes. Thank you, bob. Oil back again, holding in. And moving the stocks and the stocks are, i know, technicals. We tend not to talk but theyre horrible charts unless they can breakthrough, and if they do, people are going to be more short cover ri. Im focussed on the shorts. Theres no fundamental reason unless someone knows the saudi move. And if someone knows it, they have a great piece of information. Thats fabulous. Lets take a closer look at the commodity with jackie. Reporter hi. Good morning to you and happy friday. Oil traders waiting to see how the week is going to shake out for wti, saw a more than 10 move today. Pretty historic there and seeing prices turning into positive territory at this point. A lot of people were expecting to see selling pressure today after a price like that. It makes a little sense. We look to the dollar as an indicator. Its trading just under 96. Its come off a long way. Higher on the session. Its come off a long way in the next couple of weeks. Now were flat lining at this point. I will say biaker hughes going o be out. See if we add rigs again this week. Maybe well go back to the fundamental story, the supply and demand, but right now it appears oil prices are moving along with equities and theyre tentative. They want to see how the friday session is going to shake out. I want to mention retail gas prices. Triple a saying the National Average is 2. 51. Its down from 2. 63 a week ago. Some areas may be a little higher than others, but the prices have come down at the pump, almost at the 2 2 . 50 range. Understand that the terms that the halliburton is offering are so generous that you pretty much have to drill. You dont have to pay right now, and thats very unusual. People who keep thinking the rig count is going to drop, they dont understand to get can a rig is inexpensive, and they need cash flow. Youre not going to see a cessation in rig drop. Because the terms are so generous. The icoming up, youll want hear what Stanley Fischer is going to tell Steve Liesman. Well have the interview coming up. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. There it is. Free port is up the most. After hours, they hit 12 yesterday after carl icahn filed. Bank of america isnt having a good day. The wrong yield curve. Look at sprint. Its been up since the intery interview. Ledger last night, sprint is putting out some data that was so good for sprint. He went crazy. He cursed. I wouldnt tell him not to curse. You shouldnt. You dont have to curse. No need to curse. Thats what i tell my kids. But y new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Britta olsen is my patient. I spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. One night britta told me about a tradition in denmark, when a person dies, she said, someone must open the window so the soul can depart. I smiled and squeezed her hand. Not tonight, britta. Not tonight. [ female announcer ] to nurses everywhere, thank you, from johnson johnson. Time for stop trading with jim. Four firms came out today and said dont worry about Dollar Generals quarter. Its down again today. If you are disappointed in retail, you are so hated that theres almost no comeback. Im thinking about kill yam sono sonoma. Macys came down. Dollar tree reports next week. Did dollar tree start doing better than Dollar General . The merger with family dollar. The Dollar Stores have been a good theme. They have. Whats tonight on mad money . I spent all day working on this game plan for next week. I have to tell you, unfortunately, a lot of its going to happen . Jackson hole, but fortunately we have Steve Liesman and Stanley Fischer. Next week should be quiet, maybe . I hope so. Its usually the most quiet week of the year, david. Usually. All right. Have a good one. Im not hear. You too, buddy. Coming up, breaking news on consumer sentiment, and, of course, markets that are in the red this morning. Were back on squawk on the street after this. Good morning. Welcome back to squawk on the street. Im david faber. Now along with sara eisen and simon hobbs. Were live at the new york stock exchange. Carl quintanilla has the day off. Lets give you a look at the markets this morning. Of course, after quite a week, you can see things have quieted quite a bit. But the s p, im going to almost call it flat. The dow is down ever so slightly. Crude was up dramatically yesterday. 10 move, and its adding a bit. You can see the nasdaq ever so slightly in positive territory. Lets send it to Tjm Institutional Services for breaking news. Our second round of consumer data today. We have the Michigan Sentiment number, and its not good. We were expecting 93. We got 91. 9 from last months 92. 9. The current condition index is 105. 1 which is also a bit of a disappointment. Last time it was 107. 1. The stock market had been staging a decent rally coming into this number, and its lost a few ticks. The s p futures are down 8. What strikes me as interesting is in times of high volatility, good news is good news, and bad news is bad news. From a market standpoint and a broader picture, i think if the market has a down day but its an orderly down day, i think theyre viewing that as a market positive because we can maybe suck volatility out and get a little bit of confident out. Right now s ps are down about 7 or 8. A little bit negative. Just to recap, consumer confident comes through at 91. 9. That is a deterioration on last month when we thought that, actually, it would improve. The university of michigan data has added importance fortunate fed after bill dudley made it clear 48 hours that this would be their first glimpse of how extreme volatility market over china could suppress things here making a september rate hike, in his words, less compelling. My understanding is they survey it close to when they publish it. It will be interesting to look at that report, and compare it to the recent Conference Board readings, the Consumer Confidence. Of course, it takes on a little more importance. Lets look at the market reaction. Dow down about 50 points. Not much. S p 500 down about 2. 5 points and the nasdaq lower a bit as well. Lets bring in head of u. S. Equity trading at rbc and a chief investment strategist at wells fargo. Jim, are we making too much of every single data release with the obsession of when the fed is going to raise or do you look at the weaker Consumer Confidence number and raise a question about whether september is realistic . Well, i dont think theres much change in the confidence number. I mean, that could be a statistically pucfluke, if you will. It stayed pretty close to levels in previous months. There doesnt seem to be much imimprarkts if at all. I dont know if the numbers are going to mean a lot. The only number that might mean a lot is the jobs number coming up. I really think if the numbers continue the trend theyve been on which is pretty good buy and large, i think its going to come down to the markets. Is the financial situation stabilized . If it has, they go. If its still very volatile in the financial markets, regardless of the numbers, i think they pause and wait to see if things settle down. Ryan, ending the week with a women per. After crazy swings in the dow this week, is that it . Is the volatility over . Did the market get that out of its system in are you bracing for for . I dont think its over. I think this is exactly what we want to see on a friday. We saw monday extreme overreaction. We closed monday with the s p trading 4. 5 standard deviations below the 50Day Moving Average. Its essentially unheard of. Tuesday a good head fake. Wednesday and thursday constructive. The 1985 level on the s p 500 is going to be key. That represents the 50 retracement from the decline that started last week. I think this is exactly what were looking for in terms of lower volatility, lower price moves and hopefully we can close somewhere around here and call it a week. Jim, many people will make a lot during the course of the day of the muchfeared death cross. This is the idea that the 50 of Day Moving Average has crossed the 200 Day Moving Average on the s p 500 basically as a pu s function of the market moving so fast and so rapidly. I think theres a lot of technical th technical things that people are looking at. Thats one. Ryan pointed out another one. Weve got the lows put in on monday. What were doing now and will be probably for the foreseeable future here is trade less on data and information and more on technicals and emotion, here for a period of time until we can stabilize the vix. I dont put special significance on that death cross over other ones. Let me ask you another question. As weve repriced and we have. Were still down, the s p is still down 5 , 6 , for august overall. As weve repriced and this is what people who sell stock markets are telling everybody, now is the perfect time to buy because things are cheaper and weve had the blowoff everybody was waiting for. Do you agree with that or do you say as others will, this is a symptom of much bigger things beginning to breakthrough and actually the market is more dangerous as a result of august . We now see the whites of their eyes, in many senses . I think we have further to go. I would say that. My guess is that one doesnt know. I think that the thing that really brought this market down was basically a market that was overvalued, that had developed Investor Sentiment that became too complacent, and i think we have to correct those excesses before we can sustain another run. If we just go right back up to highs, simon, i dont think weve done anything. So i kind of think we need, maybe so bring in the buy and the dip moneys. Maybe that will continue the next few weeks, and maybe redisappoint everybody this time and really scare people out, maybe below 1800 where we have complete capitulation and well see a flight to the quality treasury and a flight to gold and a flight to the dollar which we havent seen yet and maybe thats a sustained base that we can make another run from. I dont think its over. Thats an important point that hasnt been made enough. As the head of u. S. Trading at ubs, do you take comfort in the fact that we havent seen a massive rush into government bonds or gold or the u. S. Dollar or the japanese yen . Its not a cross asset after of risk fear move. This was all emotions, in our opinion. Monday, like i said earlier, extreme overreaction, and you need to step back and think. A lot of the selling like on monday tends to be a panic sell. If you step back and look at the u. S. Situation, well be in one of the better spots around the world than anybody else right now. So the fundamentals dont support, in my view, us to trade, to see 1800, to shake that fear out. I think if we can be constructive here, we see lower volatility and row is and lower volume. Its going to be a process. We dont want to see this happen in one or two days but gradually speaking, i think fundamentals dont support us trading that well, at least in the u. S. What are you seeing in terms of the flows, institutional buying . How many people are coming in and buying this debt this week . Thats a good point. You want to make sure, one thing that probably jim and i will agree on, we dont want to see the rally sustained by short buying. You want to see real buying. If you look at the last couple of days, consumer discretionary, health care, technology, some of the names that got absolutely, completely price dislocated on the monday, have come back and led in a big way. Energy is another one to watch as we watch wti. 40 seems to be the line and we seem to be trading in line with equities. As long as we can see some of those things hang on. One of the major factors yesterday was the major move on equity. Surely the move on energy was shortcovering yesterday. It could be. And you know what, simon . I think right around this level, its absolutely more of a tech tall tra cal trade. Im saying if we can sustain this going forward, energy could be one of the sectors along with consumer discretionary, tech, health care, that could be a leader going forward. Its a leader right now. Jim, i think we have to leave it there. Okay. Well leave it there with energy making a move higher thank you. Ryan larson and jim paulson. Coming up later, you cant miss this one. Federal reserve vice chairman, Stanley Fischer will be live on cnbc an exclusive interview. Everyone wants to know whether the fed is going to raise rates in september and how they are looking at this brutal week in global equities. The slow down in china and much more. Steve liesman talks. That was a big get. We were expecting him to talk on saturday. That was the big speech, and presumably, it would be disingenuous to see what youre not going to see on saturday. We get it during market hours. Please a plainspoken guy. They must have put together a message. It could be a market moving interview. Thats coming up on squawk alley. Im not involved but im going to be listening closely. Maybe a special tonight at 7 00 as well. Up next on the program, its been a roller coaster week for oil as well as stocks, falling to a low of 47. 75, and bouncing back to a high of 43. 46 this morning. Where does it go from here . It plumps skin cells with intense hydration and locks it in. For supple, hydrated skin. Hydro boost. From neutrogena [female announcer] dsave up to 400 on beautyrest and posturepedic. N, get interestfree financing until 2018 on tempurpedic. Plus, helpful advice from the sleep experts. Dont miss mattress price wars at sleep train. Very much a case of the markets steadying today. The Dust Settling after the huge moves that we had yesterday. That is true of oil which yesterday bounced a staggering 10 during the kous of the session bouncing back from a 6 1 2 year low. Lets bring in Merrill Lynchs global head of research. Good morning. What was yesterday . What did you see yesterday in. Well, we saw a move across. It wasnt the price that moved up. It was all Contract Prices across the structure of the market. It was a very surprising move, and as you pointed out, the biggest move in years in terms of percentage apreesh ratipreci. The last thing i can think that resembled this move is the first greek debt pcrisis in 2012, we had a big bounce in europe on the back of europe. We had a big bounce in oil. Thats the last time i remember a big bounce like that. There was no big monews yesterd. Did it, has it given you pause for thought . Are you like, hang on, i might have got this wrong. Maybe oil is heading higher here . As you know, weve been bearish for the last three months or so on the back of the end of the driving season, weaker growth picture for china, and importantly, the iranian barrels which are scheduled to go online over the next few months. We think going into winter, we are going to see a bit of a relief rally, and the reason is simple. Up by 1 Million Barrels a day from summer to winter, and they are demanding more oil. Today were trading the october contract. We have a couple more weeks of the october contract on the screen. Once we get into november and december, refineries will be looking for oil and this means that well have a stronger bid. Were a little more sanguine about the market here. I think the market is about a third of what wed expect. Those that chased the bounce are doing well and this can be sustained . I think the market is probably starting to stabilize. Im not sure if well relapse back down but i dont see prices heading into the low 30s or the 20s as some other analysts have suggested. I think the World Economic picture is not that negative. Certainly, there are big head winds for china, and i think over the course of the next year or two, chinese u. N. Weakness will not help the oil market, but wouldnt go as far as saying china is going to have to appreciate again. If that was to happen, oil could get lower but the best case is that emerging Market Growth holds up this level and maybe picks up into year end on increased monetary and potentially fiscal tim yuls, simon. Well, it sounds like what youre painting is a pretty solid demand picture. At this point, is it going to take some sort of meaningful change in the supply outlook for you to revise your target. Weve always been our end quarter target is right around where we are. From there on we could see a 7 to 10 move up to year end. Weve always had a bullish view to year end, because you have the winter demand season factors. You have the potential stimulus on the ends, and importantly, u. S. Production is declining steeply. Lets not forget, we are declining at a rate of 100,000 barrels a day because of the collapse in the recount that happened at the end of the last year. All the factors are going to provide good support to prices into the end of the year. And heading into the end of the year, what else will work with your hat on this multiasset strategy head . Obviously, i think if oil finds the floor and we get a bit of a are leaf, a lot of assets are going to be repriced. The bigger question is whether the head wind in china are longlasting as they seem to be, and then we end up in a continuation of an emerging market bear trend. But overall, i think, again hang on. Hang on. Dont ask questions unless youre going to answer them. Do you think that will happen . Look, i think chinas growth is slowing down, and the question really is how fast does the chinese currency how fast does chinese fiscal and Monetary Policy have to adjust to the unfolding developments . We dont have a great read on it right now to be honest. Its really hard to say whats going to happen in china in the next three months. The big macro data is not terrible, but if you look at the micro or mac torfactory orders, dont look great. Its hard to read at this point. Data dependent, but things do not feel great in china right now. Okay. Have a good weekend, sir. Thank you for your time. A huge move on oil. You scared me there with that question. Why . You were very strict. Thats your job. Youre allowed to ask questions. The guests answer questions. Its called cable television. Its simple. You dont want to miss, when will we see a rate hike. Tune if for an interview with Stanley Fischer. Take a look at these crazy huge swings in the market this week ending with a wimper with the dow down 54 points but traveling more than 10,000 over the week. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Good morning. The ceo of Ashley Madison is resigning. The Parent Company of Ashley Madison which is the dating site whos motto is life is short, have an affair. It was hacked and all the data from that site was made public by hackers. The company that owns it is avid life media. They say that they are actively cooperating with International Law enforcement in an effort to make those who are responsible to justice. But under pressure, it looks like the ceo, Effective Immediately will be stepping down at the ceo of Ashley Madison. Not such a surprise, i guess. What a nightmare. I think we could have seen this coming. Ill see you in a few minutes for a news update. Describing this biweeks mart move as a roller coaster is an understatement. We have more on what weve experienced this week. Reporter weve gone so far so fast in the past week or so. Weve seen rapid moves of stocks and were attacking some of the losses we got. And we got a nice 0. 38 pop of price in oil. Lets look at the kind of calm relative calm that were seeing in todays trade so far. That could change by the time the afternoon comes around. Overall, to back friday, the big 531 point drop followed by the 1,000 point intraday drop and a 200 on tuesday only to see a 619 point gain on thursday and a 370 point gain on thursday. These are the two biggest point gains in terms of back to back point gains in history. And theyre some of the biggest gains since the phenomenal crisis. If youd add up all the mini steps, all mini moves intraday up and down, weve gone over 10,000 points or steps in the dow so far. Well see how it plays out today. On the oil side, a similar type story. On the macro commodity front, oil is up today by about 38, 0. 40 but down 0. 87 fwti. Only the pap by 1. 07 and the huge 10 up move for oil and tacking on gains for today. The oil price very volatile right now. Energy stocks volatile. Today is going to cap off a huge week of market moves. Well see how they pan out as we get to the afternoon part of the day. I guess hurricane erika part of that as well. Despite the market turmoil, some of the street east biggest investors are finding bargains. What are they buying . Jim stewart has been talking to many of them. Hell join us after this break. G of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom, you had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom, youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car, plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Good morning, everyone. Here is your news update at this hour. Senator tom carper of delaware becoming the latest to support the iran nuclear deal. He called it a good deal for america and the allies and it beats war with iran. Florida governor declaring a state of energy in the for the arrival of Tropical Storm erika. Its expected to hit the Southern Coast on monday. The storm brought 15 inches of rain yesterday on a caribbean island. At least four people were killed in landslides. Many others missing. Rescue crews sent out to search for the missing and injured. A new round of firing by pakistani troops. Those injured were taken to a nearby hospital. Many residents in the area have fled that region and donald rump calling himself the king of the tax code on msnbc morning joe. He said the current tax code is too complicated and plans on releasing his plan to simplify it next month. Stay tuned for that. Thats our news update this hour. Lets get back to squawk on the street. Thank you, sue. Welcome back to squawk on the street. Youre looking at the Dow Jones Industrial arch, the s p 500 and the nasdaq. Our next guess says seasoned Money Managers are searching for stock bargains. Read your piece in the times today. I couldnt help but think how many times you sat here and said valuations are frosty. Theyre historically above average. We need a good, healthy correction. Did we just get that . We got a correction, healthy or not. I think it is healthy, and anybody whos been here knows ive been saying for a long time, corrections are normal. They can be healthy. Stocks go up. They go down. If they go up all the time, were setting ourselves up for an even bigger fall. But i tried to be objective. This week i picked out some of the funds that have done the best over the last year. Pretty treacherous year. I called them up and said what are you doing and virtually all of them reinforced the same idea. They were welcoming the correction. Bill of the value fund was saying for this market to keep going on, we need Something Like this to happen. Did we need it to happen in just two days . It was really fast and violent, but repoint ud out that fast corrections are easier to stomach than the slow grind, and i think the speed of it, the depth of it, the way its bounced back is probably a good sign. Can i for the record push back. We seem to be showing a lot of shots of where weve traded for the week. This is an august phenomenon. For the month, were down 5 or 6 . It wasnt just two days. There are bigger questions here, jim. Well, and a lot of stock groups, individual stocks have been grinding down for a long time for reasons that i think weve all talked on the. You know, slowing demand for commodities, the china problems but if you look at the plunge that began last friday and continued into monday and then the selloff on monday, this was so indiscriminate. Everything went down. That was another thing the managers were pointing out. There was no intelligent thought behind this. I mean, whatever is going on, it is not going to affect every geography and every stock sector and every individual company the same way, and yet, everything was down across the board. It also looked like people who were acting first and thinking later. We get these moments when markets are not rational or not efficient efficient. Those are almost always buying opportunities. What are they buying. These are value investors. Value has done better over the last year. Theyre looking for classic value stocks. Bill miller at the leg basin opportunity fund. Its been on a roll for years. Hes been focusing on the Home Builders. Completely unaffected by whats going on in china except for the fact that they benefit by low commodity prices. And theres a Huge Population in this country of young people who are in the process of household formation who want to buy houses. They dont own stocks. Theyre saving their money for a down payment so theyre benefitting. This is all good for the Home Building sector. The airlines, bill miller, hes buying there. He was also sniffing around twitter, which i thought was interesting. It leaked back in the recovery. Bill speed was looking at American Express and buying news corp. They were looking for values. I also talked to international people. Were not in a correction anymore in the u. S. , but overseas, emerging markets are still really cheap. China. Maybe theyre cheap for a good reason is the fear. Thats the fear. Theyre there for a reason, but if youre a long term investor, there are bargains around the world. In fairness, i would hope that Mutual Fund Managers were optimistic. Thats what they do. They buy stocks. Theyre all in types of people. But just to push back. There were other people who were scared by what happened. They feel its a symptom of something shas much bigger that people might lose confidence in Central Banks. And whats happened this week is that the fed looks to be delaying interest rates. Youve got the ecb, the talk there is they will turn dovish again, possibly expending kwe, and you have the chinese going further into the market. The central plankbanks respons to go deeper and deeper. Thats symptomic of something thats wrong for people and maybe long term stocks should stay. I dont know that theyre going to go up. What we know for certain is theyre cheaper today than they were even a week ago. Ive also looked at research, that if you bought at markets tops and held off long enough, you do better in stocks than any other asset class. If you need the money tomorrow, you should not be in stocks in the first place. As a counter measure, i talk to the people at alpha simplex, theyre market timers. Theyve ratcheted down. They see risks are more elevated based on their computer models but theyre still 75 committed to the market. They havent gone to syria market exposure. Theyre still confident over the longterm in stocks. And i think people have to be patient. They have to look ahead, and in a lot of the static, they have to tune out. It looks like youve found someone that is buying the weakness in china which is interesting. This was the johambro, theyre International Funds have done well. No one has done well in emerging markets but comparatively speaking theyve done well. And they pointed out the market multiple got down to about 9 this week. Thats where it was after the lehman collapse. Thats pricing in a lot of bad news from china, and a lot of the Big Chinese Companies have exposure to other parts of the world, especially the united states. A lot of them are at the head of the food chain in the Technology Sector where the ultimate consumers are in the u. S. And the u. S. Consumer is looking good. Theyre also seeing bargains in the Technology Sector and other parts of asia. Theyre not interested in the commodity exporting nations like brazil, south africa, some of these, but theyre seeing screaming bargains in china. Yeah. Great actionable column. Thank you. Jim, good to see you and have you talking markets. Ten years after hurricane katrina, thousands of people, incredibly are still unable to return home. The costliest disaster is also the worst housing disaster affecting more than 1 million homes on the gulf coast. In new orleans alone, homes damaged and destroyed and floods that followed. A horschrible situation made wo by a program that was supposed to ease the problem. Today were back in new orleans. Reporter simon, the program is called the Road Home Program. Its the largest Housing Construction program in u. S. History. Its funneled through the state. Its allowed 130,000 homeowners to rebuild. But the lower ninth ward, the program has failed here. The population here before the storm was more than 14,000 in this neighborhood. Now according to latest figures its fewer than 3,000. At least 200 families are still trying to get a home. Our challenge is trying to get the funding thats in the Road Home Program thats available for them out the door to them. Reporter we first investigated the Road Home Program in 2007. We found massive bureaucratic log jams funding formulas that made it impossible for people to rebuild. We met melanie, he was the founder of the citizens road Home Action Team or chat. Remarkab remarkably, shes still at it. There are many residents, homeowners who didnt come back, and partly, thats because of the unfairness of the Road Home Program. Reporter even in the early days, after the storm, what people were worried about was what they call the jack lantern effect. Thats an empty lot here, a home here, a foundation there. And here in the lower ninth ward, thats exactly what has happened. Other places doing better, but its a scattered, uneven recovery, and thats a problem. Back to you guys. Scott, thank you very much for that piece of the story. Reporting live on the tenth anniversary of hurricane katrina. When we come back, several Luxury Brands are soring but kate spade is down. Hear from the ceo in an exclusive. And later, an exclusive interview with Stanley Fischer. As we go to break, take a look at the dow today. The dow is down 56 points. Travelers, walmart, pfizer, and cisco bringing up the rear. Well be right back. Innovating. Ritrade, e and apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Hi mim raph. Tom. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here, were here, and weve got your back. Legalzoom. Legal help is here. An interesting season could hold the key to the energy trade. More squawk on the street straight ahead. [ piercing sound ] daddy lets play sorry kids. Feeling dead on your feet . Ive been on my feet all day. Dr. Scholls massaging gel insoles have a unique gel wave design for outrageous comfort that helps you feel more energized. Dr. Scholls. Feel the Energy Retail a big focus. Luxury stocks being hit mike coach, tiffany, and michael k s kors. Kate spade fell more than 40 in the last year alone despite strong Sales Numbers in the most recent quarter. I had a chance to sit down with the ceo of kate spade and i asked about the expansion of new products for children and home and other lifestyle products but given all the other volatility, we had to start with china. In china, where weve were still developing that business, we feel really good. Still seeing dig strong double digit comps in that marketplace, and were only at the tip of the iceberg there. To so the global slow down that everyone is worried about, are you saying youre not seeing it really in your geographical spots . Whats great about our business is we have a diverse business model. Its diverse across two real ax axes. One is product categories. We have a full lifestyle brand with many categories. Over a dozen categories of products, but also in terms of geographies. As a business in 27 regions around the world, that helps us whether changes in certain parts of the business are in a product category or if its in a particular region. It allows for us to really have an incredibly stable and Sustainable Growth projection. I want to talk about the project side. Got a chance to see home goods and baby sections. Why are you expanding there . One of the things thats important for everyone to understand about kate spade and company is that we have a really differentiated business model, and one of the key different ya or thes is that we are truly a Global Lifestyle brand. Weve gone from a handbag and small leather good company. Well also have anchored there, but were entering new product categories, most recently children and home. When you talk about the lifestyle brand, sometimes you get lumped in with michael kors and coach, you youve talked about ralph lauren as a model. As a business analog, were not the same brands, but if you look at them as a business analog, how they grew their business, truly becoming a lifestyle brand, consistent execution from a global perspective, engage in the consumers in a really authentic way, thats something thats extremely important to us, and something that we think theyve executed really well. And, again, when you look at points of differentiation of our brand versus those in our peer set, we are really different, and being a lifestyle brand is one of those. I have to say, it is unusual to see double digit comps in retail. Thats what you saw in the last quarter. It is. Is it sustainable, and is there something wall street is missing when you look at the stock. We believe its sustainable. And we absolutely feel its sustainable. Were excited about where our business is today. And i think as i said earlier, what is important that the message thats out there is, that we are all, one size does not fit all. We are a business with a differentiated business model. Thats whats going to lead we want to be talked about a growth story not just next year but five and ten years from now. We want to be talking about kate spade and company as a great growth company. Is there a misconception about your brand out there on wall street . I think its easy to lump brands and businesses together as a short hand for whats happening in the industry. And thats why i think its important that people understand how were different from other brands in our space. That was the ceo of kate spade making here that he does not want to be a michael kors or coach. The three get in there grouped together and when you look at some of the valuations, wall street isnt presuming that it is. Kate spade is trading in the 30s times earnings, while michael kors is trading less tlan around ten times. Its a differentiated lifestyle brand i think was the message. Right. And hes taking it into home and baby, and hes actually getting rid of the jack spade brand and the saturdays brand. Its still about handbags, right . 70 of the revenue is about handbags. Thats the model. Thats where they start, the platform, but he wants to shift the revenue mix to get it higher toward other categories. Theyve found a committed consumer, knowing many women who like the brand. They always talk about consistent execution, but the only thing consistent in this industry is the inconsistency over time. Anyone. And i asked him about that. What he could say, in his words, which is retail ceo thing to say, you have to stay authentic. You have to keep in mind your customer, keep surprising them and keep kinconsistent. Theyve managed to keep up the growth. One reason the stock is under sprsh because its hard for them to get a comparison of sales because theyre in the process of shutting brands. Up next, what better way to wrap up a crazy week for the markets than art cashin . Hell join us live at post nine when we come back. A number. Ery auto insus but not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. 40 minutes on cnbc and what may arguably be the event of the session. Stanley fischer will be interviewed by Steve Liesman. Vice chairman of the Federal Reserve due to speak there tomorrow but he will appear on cnbc exclusively in advance of that. Art cashin is with us. Could seriously move the markets. This is the one were waiting for. He certainly could. Dont forget his backdrop is that he wants to keep everybody still guessing so i think hes going to do whatever he can to leave room for a possible move. One of the narratives that you kept bringing to the table was that fischer had sent everybody out to talk up the prospects of a september rate hike. Clearly they have walked back from that. Well, not necessarily him. Right. But the others, its less compelling. Nobodys really taken it completely off the board. In fact, if you look at the fed fund futures, theyre keeping some risk of it still about so i think fischer will try and do that. I think he will probably tell steve that they are aware of whats going on around them but they are really still datadriven. I think he will try to keep the did door open. Wti crude trading above 45 a barrel, another boost on top of yesterdays nearly 10 rally. This is significant. Why arent stocks rallying . We have a little bit of a drag here. We had that surprise rebound late yesterday that was over 1 billion to buy on the market at the close. And so i think youre getting a little bit of adjustment and payback. I think that caught a lot of people by surprise. The market had rolled over and i think there was a feeling that it was going to close a bit flatter and all of a sudden we got a big boost. I have gone a very long time without talking about the u. S. Dollar because the action this week is really in the stock market. Stocks stole the show this week. But in terms of other assets, if you look at the dollar which has rebounded from the lows that we saw on monday, and treasuries where yields stay above 2 on the tenyear, what is that telling you in terms of the implications for stocks . Well, it certainly is telling us that theyre not ready to take the rate hike completely off. The strength in the dollar could theoretically be people waiting to see if theyre going to hike rates. The other thing, you cant forget what else is going on. There has been some talk out of the ecb that almost made it sound like they were going to add a qe on top those are Central Banks that unlike china, the market trusts and they believe. Can i point out notes are beginning to emerge. Actually on thursday they will sound more dovish. They will talk about potentially qe in europe being extended or the pace of purchases, accelerated. Talk only, but still it could move the market. It certainly could. This market is tremendously sensitive. Theres no bigger topic around as what will the fed and the other Central Banks do. And how will that begin to move things along. I mean, its obvious china is not going to let their market go down. It was interesting to see shanghai get rescued but hong kong wound up down anyway. In summation for the week, is this it for now when you have a calm day like today . Are we able to say potentially we have bottomed here . Yes, but its usually not a single day. I mean, there are the bottoms, if you would, but they are much rarer than people think. I think we may have a lot more backing and filling going on as we move into next week. You will have the payroll number, then the threeday weekend coming up. One of the quietest weeks of the year usually, next week. Sounds dangerous to me. Be careful what you wish for. You think it will be . Revert to form or not . I would think it should, certainly we have had people start deserting the floor already for a nonthree day weekend. I think the end of august and the beginning of september, kids, school, whatever, i know traditionally its skeleton crews everywhere. Lot of exciting stuff going on. Yes, there is. David and i are both going on vacation. Nice to see you. Have a great weekend. Art cashin. Lets send it over to kayla tausche. We have a big hour coming up for you. The interview of the morning, the feds number two, stan fischer, will sit down with Steve Liesman and it is the interview that you cannot afford to miss. Plus investors are catching their breath after a wild ride in the markets this week. We will tell you where you can find value right now. And forget monthly active users. Facebook said one billion people logged in to that platform just yesterday. We will get thoughts on where growth is for facebook next. 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Call now to request your free decision guide. O0 no sixth graders ever sat with but your jansport backpack is permission to park it wherever you please. Hey. Thats that new gear feeling. This week, these folders just one cent. Office depot officemax. Gear up for school. Gear up for great. Good morning. It is 8 00 a. M. At facebook headquarters in menlo park, 11 00 a. M. On wall street. Squawk alley is live. Good friday morning. Thanks for joining us on squawk alley. With me for the hour, andrew rosssorkin. What a treat to have you here at post nine. Of course we have to begin with the markets, currently down slightly on this final