Transcripts For CNBC Squawk Box 20141119

Smuck smuckers. And target. In the senate, falling one vote short of the 60 votes that were needed to approve construction. Andrew. Well continue to talk about that subject in just a little bit. But in the meantime, teaming up to take said to be offering more than 7. 5 billion to other pea farms working on their own joint bid. Cutting costs, changing its management team, its cfo is retiring after 32 years from the country. Among the bucket cuts, getting rid of its plane. What are you giving me a look for . Im not looking at you. Boosting results. What time is it . And then we should say barrett gold naming a new ceo city latest shake up at the miner. Jack in the box. You breathed right through jack in the box. That was no problemo. In terms of im a chipotle man. Its there, right . Its difficult. Qatar, but no one knows how to say that one any more, right . I think we should tell people just about the we were just saying there was a shakeup going on. Why . But if we go higher, barrett gold. Oh, not a qudoba. Not a qudoba. It looks weird in the prompter. It does. B but you look like you have a alternative ya now. Oh you threw your back out trying to do that. Barrett gold naming a new cfo. The latest shakeup with the miner as it deals with the lower prices. One vote. It could get vetoed by the president. But youre missing the whole point here. This it will be much easier for him to veto it when its the republican14 sneeze. The last one, dick thurman, they doevent want to send a bipartisan bill to obama at this point. Right. Because he been the criticism, it would have been westbound much more by part sap well, theres a we know whether or not youll have anyone step up. There were a significant of them able to say it now. But in january what do you mean need 60 . Need 67 to overright the vote. The republicans will have 53, right . You wouldnt argue this is theatrical . I was trying to figure out who it hurt. They say it hurd landrieu. And she needed it. And now other people might think he would okay it before the next hes always h a political reason not to approve it, which has gone by the way side. So they wont override it. They didnt want to send a bill to his desk that was bipartisan. She thought she had 60. But dont you think keystone has become a symbol . Im not saying that we should or we shouldnt do it. Come on, weve talked about infrastructure. People are asking whether the payback to buffett is supporting obama because he moves all this by rail. Youve seen all that, right . Hes also said hes in favor of it, that the keystone should pass. Check on the markets this morning, i will adlib now the futures board as they come up. Down 10. Actually, they play the music either way. We kind of like that music period. You do . Yeah. Better than the happy yeah. We have a different audio guy, so dont expect any help today. There you go. Whoa. Prices going down. Kind of flat this morning. I saw walking in here is that the fed saying oil prices were going to possibly delay, right . They dont need to do anything in particular. The rationale would be and if theres no inflation and we still have some people looking for a job, why not why keep it low if theres no problem . It was a moving target constantly. First it was the employment number and the day. You know the dow hit its 26th record of the year yesterday and the s p, its its 43rd. Thats weird. One has 17 more. Anyway, its the tenyear. Check out the tenyear today. 2. 32 . Thats going nowhere fast, again. Blths ate down after that. Check out the dollar, 1. 25 now. Gold has had a little mini rally off a low. And today it is up 3. Back to 1200 right now. You can see on the very right hand side that its bounced off the lowest level its seen in more than a year. Sdmrernings this morning, lowes beating the street by a penny. Quarterly comps, risel about home depot. Nis of out of japan. Kaori likes us live from techniqueo. The bank of japan is committed to keeping Monetary Policy super easy until they reaching that goal, saying 1 cpi could strip below that figure in the near term. But this was a very difficult press conference for the governor of the bank of japan because it comes just one day after the government, shinzo abe, delayed the tax plan. And why this makes it a very difficult situation for the governor is because last january, the government of the bank of japan did a deal. And the deal was the government would do its part in terms of fiscal reform to try and clean up its finances and the bank of japan, on the other hand, would continue to pump money into the system so it doesnt get into a situation where its criticized for monetize onning the debt. So that approach was supposed to be twofold. Here we have the bank of japan last night backtracking effectively on the fiscal reform agenda because theyve pushed off the tax hike. Theres concern that theyre doing the stimulus, whether the easing is the thing to do. So the bank of japan wasnt overtly wab and they need to the stick with that. I think this puts real pressure on the bank of japan as to whether or not this is a good move. Particularly if you have japan trying to stimulate the economy. Theyre going to be firning more debt over the next 18 to 24 a month. And this raises the specter he a downgrade on the credit rating. And a lot of economists we spoke to today suggest it has such, which would make it extremely disks to finance the debt, which is already extremely large. Kaori, thank you. An excellent description of whats been happening. Thank you very much. It would be hard to imagine yellen and president obama reaching a deal like that. It seems like a crazy deal to begin with. You cant count on the fiscal authorities following through on any of that stuff, anyway. That is a truism. In fact, to me, it was the s. E. C. Cant possibly do that when theyve been ordered to do that. Theyre an independent agency. Watch it. Watch it. Michelle Caruso Cabrera is here. Were going to continue this conversation. Why should the u. S. Investor care at this point . So we constantly hear are we becoming japan . Japan has printed tons and tons of money. Theyve had Interest Rates at zero for seemingly forever and, yet, the economy doesnt grow and inflation doesnt happen. I did a hit about a month ago. I said you want to know how to create inflation . Its very easy. Look at what venezuela does. They deficit spend and they print money. Bam, inflation of 55 . Guess what . Japan has been doing the same thing and they have deflation. Why the difference . Here is the one criticism economists have of japanese skiel quantitative easing for a long time. They say they never for a very long period of time or for enough of a period of time achieved negative real Interest Rates. Real Interest Rates. What do we all think inflation is going to be . Interest rates that you would get at a bank have to be lower. So the expectedations are so low, you cant get underneath them . If you think inflation is zero, 1 looks okay, right . Because youre making mow more than zero and what your money would do just sitting in a bank getting nothing. But after 20 years and after how that changes the mentality over essentially a generation right. The idea of trying to fall beneath that right. If you collectively as a society think, well, inflation is never happening. And im used to a 150year mortgage that im signing up for. I know i will always live with my parents and my child will listen to me. Or why would i buy a price. Come on, youre the one who puts half a tank of gas in because you were returning the car and didnt want to get your 13 bucks. So you highlighted this about this deal between the Prime Minister and the head of the central bank. Lets bring up the quote specifically that i say kuroda. Kaori enjo jojoji says so this is what the bank of japan governor said. He said fiscal discipline is the responsibility of the government and partment, not that of the central bank. Central banking culture is nonconfrontational, right . Everything comes out mono tone. Today is my birthday. My puppy died. Happy birthday. Thank you very much. My point is that for him to say that is a strong, strong statement. Isnt today just of failure of piece . I saw that. She did a lot of things in 20 years. They were slow, were they not . And then they also didnt clean their banks up, right . Didnt they let things fester for years and years and years . The phrase zombie banks define japan. Draw a line between qe not, wog for 20 years, its just not i agree. Thats the keynesian spending, as well. Have you turned 40 yet . I am so flattered by that question. Is today how old today is not your birthday . Today is not my birthday. I was making a joke. The way central bankers talk all over the country regardless of the tone is mono tone. And her puppy didnt die, either. You dont have a dog, do you . No. Everybody does. Theres two petsmart, what is the other one . Pet co. You know what . They need to create better names. One of them has the right filter for my aquarium and one of them doesnt. You should call henry travis and let him know which one. Nadally was early on in this. If you see the afghan soldier that was reunited with us all again yesterday, you see what animals he had ptsd, he was injured. Hes no longer no longer sitting in dark rooms. Hes now out with a dog smiling. The dog hadnt seen him in i cant talk i cant hadnt seen him in two years. In 25 yards, he said hey, maddie. Its love. Its love, appeared rue. I would love a dog. My travels wouldnt like it. Its unpredictable. People spend more on dogs than on themselves sometimes. Anyway, u. S. Stocks you really got emotional about that. I can see it in your eyes. I did. I love dogs. I have two dogs. My german shepherds are the most phenomenal dog ive ever had. Anyway, u. S. Stocks hitting alltime highs. Love my daughter and my wife a lot, too. And my son. Can markets keep rising here . But do they wag their tail when you walk in the room . Oh, my gosh. Theyre all joining us now, another guy that is jay kinahan, chief strategist at td ameritrade. Its usually the stuff you you say, joe. I think i came in on a hallmark moment. You did. It was jury duty. I think as you get older, you do get more emotional. America the beautiful, its the greatest system and greatest country. Anyway, a great stock market. Indeed. Great stock market and we actually had you in the middle of that 9 correction. And i think at that point you thought the vix had probably popped out and now it is back down. What should we expect for the rest of this year and early next year . Well, you know, ive been calling in this little engine that could. No one believes it can keep going and it continues to do so. I still believe people are very much underinvested, joe. Really . Yeah. They still have a lot in the fixed income and havent rotated everything over to stocks. And so, you know, there still is this end of year money that may come into stocks. I know you had mr. Siegel on your air yesterday talking about perhaps the dow trading 20,000 by the end of next year. Just to put that into perspective for people using options, that would be about a 24 probability that will touch there between now and next december, the 3rd friday of december which would be december explorations. But anyway, going forward, joe, there does seem to be momentum into the end of the year. You cant discount any of that. Theres still a lot of goo political risk. But overall, the earnings season was really good. And i think that one of the things that we saw in this past earnings season, which is interesting to me, was a tone change in how the ceos talked. About nine months ago, they would lead with what was going to be the head whippeds against them, things that were going to get in the way. And this earnings season, the ceos, they first talked about opportunity. So i think were seeing a real difference in how people are thinking about opportunity for the rest of the year and going into the first part of 2015. Every year at this time, we usually have people in here explain yg Portfolio Managers arent going to buy stocks that are doing we will at the end and they always seem to do it. If youre on new highs, you need to get it into your portfolio. I do expect it to happen, joe, actually. And i think it may happen on more of high yield stocks. The ten heavy is not done much. And so with that, people are going to hint for that. So stocks get paid 3 the , 3. 5 dividends are very, very atrafficive. I think well are more interesting to take a risk there. Joe, the why did you down there . A coming vengz. Is that a fair shot behind you . Thats not real, is it . So no. Its a fake shot. Its the ritz. I dont know where i would question your ability to you know, i should just yeah. Its a ritz. You have either been there or have it was a great conference, joe. Ben bernanke, mohamed elerian, collin powell. What about der unanimousky say . You know, he was on a panel and as michelle said earlier, former fed chairmans send to be monotone and very guarded when they speak. I sat next to your own scott wapner. Bernanke said thank you, chaching. Joe, thank you. Thanks, guys. Have gate day. Grand and your guard at the same time . Exactly. We usually want ceos of the whole company. We need an exception today. You know that, right . A ceo owned by a company. What are you talking about. The ceo of i think taco bell, either. But this guy reports to someone. But do we care . No. We have a lot of questions to ask. We do . We do. I had a very important question yesterday. Pepperoni. Yeah. Waiting for your pizza. When we come back today, the street reacts to better than expected Quarterly Results from lowes. If you could only own one Home Improvement chain, which would it be . And later, a back clash against uber. The ride sharing source after saying he wanted to spend 1 million to dig up all the information in the media. Into did you know more people have a phone than a mobile toilet . Actually, i did know that. Today is world toilet today. Its to help a crisis that impacts over 2 billion people globally. Matt damon cofounded a nonprofit that delivers sanitation and safety water partnerships. He joined squawk box at the Clinton Global Initiative to highlight the importance of the mission. According to water. Org, a child dies of a water related disease every minute. And for every dollar spent on water and san saying, theres a 4 economic return. We had him on recently. Where were we . The image from davos. Yeah. And we talked to his partner because he was late coming to the interview. And we talk all about some really cheap, simple things to keep what is it, do you remember . It was a screen, really. Most of it is open bit. Right. Its a screen that keeps bugs from getting in and out because the bugs are what thats what they spread the disease. On the same day when we interviewed, who was the fella that makes toilets . It wasnt the same day. But we talked to him there, too. Koehler . I dont koehler came here. Oh, koehler came here. We were looking at some of the high end toilets with the heating the koehler ones here. American standard. Thats who we talked to at cgi. They had a tenth of a one percenter toilet. No, American Standard didnt. No, koehler. You did the whole vana white thing. Yeah. Shares of lowes getting a boost. Sales rose 5. 1 . Joining us right now the brian naper. This looked like pretty good results. Yeah, its a good report. From the Market Investors are going to look at this lowes report add compared to home depot yesterday and i think theyre going to be press pleased here. You get an epsb driven by better than expected sales and lowes is lifting their guidance for the year. I guess the question is, if you had to pick one of these two stocks, which one would you want to own . Its a tough call right now, because i think largely theyre the same stock. I continue to tell my clients if theyre going buy one, i think home depot is the better bet at this point because it has been the better run company over the last several quarters. You know, its interesting. I know you like these stocks in general because you think the housing numbers are going to continue to improve. I dont have a specific forecast for Housing Starts myself, but i expect to see a continued improving trend. My overall view in housing is i think some of the supply constraints that impacted sales earlier are updating. Weve seen a little bit of moderation and price increases which, again, is good for sales. Aus mentioned on your show, youre seeing some let up in terms of lending, too, so i think thats going to help sales data. I know that right now people are starting to question whether the fed will raise Interest Rates next year just given the inflation levels that weve seen, the nonexistent inflation levels. Especially with oil prices being down. But my guess is that right now, if you can put out some sort of a survey, you would still have most people thinking that the fed will raise rates next year. Will that hurt the Housing Market or change your view on either of these stocks . Its interesting. My team and i put a report out on lowes and home depot. What we found, if you look at the past three cycles, home depot and lowes continue to outperform those markets until the very end. What that tells me is that these stocks react positively, the indications are in an improving economic environment. To the extent the fed is raising rates because the environment is getting better, thats probably a positive for home depot and lowes. Whats your price target for lowes, right brian 12347. We have ads 70 price starting. Thank you so much joining us today. Thanks for having me pop he appreciate it. Coming up, the Senate Rejecting that Keystone Pipeline. Before we do that, check out shares of staples. The retailer beating estimates on the top and bottom line despite a seventh straight quarter of declining sales. As we head to that break, take a look at yesterdays s p 500 winners and losers. Squawk box returns in just a moment. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Which means its time for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry in and get zero due at signing, zero down, zero deposit, and zero first months payment on select new volkswagen models. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Good morning and welcome back. Welcome back to squawk box. Please join us every day at 6 00 and at the top and the bottom of every hour. Im joe kernen along with becky quick and andrew ross sorkin. Im not going to beg. Please, pretty please with a cherry on top. 2340 begging. Oh, im below begging . No, im not below begging. It depends. Congratulations to the individual you hear singing, billy joel. The piano man is going to receive the top music award from the new york state of congress. A living artist Lifetime Achievement in music. Past recipients include paul simon, stevie wonder, Paul Mccartney and carroll king. Well take a look at a list of comps. Yeah. A great story in the New York Times in the last couple of weeks. Its fantastic. Its a really weird talent. It helps to be a really good piano player to compose music. I couldnt write a song, could you . No. I cant do anything like that. Among i do. Regularly. No, not any more. Among or top stories right now did becky play an instrument . I played the flute. You . I pretended to play the saxophone for a while when i was, like, in sixth grade. But i was the kid that was so bad eight, i was so worried i was going to throw everyone else off that i would just go anyway. Clinton played the saxophone. Thats why i think you took it up. That was my point, right . I dont think he was in office. I dont think i knew that. Im surprised he didnt learn how to moonwalk or something with your oh, i can moonwalk. Ill do that for you later. Can you put a surgical glove on and do that . There you go. The senate john, the senate failed to pass the pipeline bill. Did she think i want to know whether you have the background story. She said she had 60 during the day. Did she lose someone . Did someone change their mind when it got late in the voting and its always going to be i dont think the democrats wanted to send a bill which could be construed as bipartisan to obama, to president obama. I dont think she had the votes. I think that was a bluff and you could see as people were declaring their positions over the last couple of days her options dwindling. Yesterday she was working it hard on the floor, trying to get democrats to help her. She works with the Senate Democrat policy lunch saying we need to get this and get this through, it will help me politically, it will give the president might even look good by vetoing something from congress at this point. But it wasnt there and you saw people like tom harkin and chris khuns and king gradually declaring, no, im not going there. But its a temporary setback, theyre going to pass it in january. Thats a pretty cynical dance for her if that was her calculation. It can make me look good and then the president can veto it and hell make me look good, too. No, i dont mean to overdraw that. She believes in it. She was representing her state which is why her opponent, bill caddie, pushed it through in the house on friday. Theyre in a runoff. He has a big lead. In reality, whatever happened yet was not going to make a big difference. She is way behind. Shes lickly to lose. Everybody knows that. So you had the result. You did with 14 democrats i thought was a surprisingly robust number. Republicans, of course, with will only need a few to january. How many republicans did the senate have on the immigration bill . 14, i believe. So its tied. They keep calling that a well, they didnt pass a bipartisan thats interesting. What i think he would do is in january, if the review process is not done, he would veto its not done. What if they came back and said, go for it . I think his ultimate play or his ultimate intent is not to stop the pipeline. I think it is to deal with republicans and try to get something that he wants for it. I want to add something. Im an avid follower of the john harwood tweet site. And i saw you talking about gruber and this big hoopla, what the real fallout eventually could be. You need to concede that maybe the four justices that already sort of not that happy about obamacare, that this could embolden them to be even more unhappy. In that case, it might have some effect. I think that is possible. Look, i dont cover the court. I dont know the justices. But friends of mine who do cover the court think one reason why they took the case maybe not the only reason and this is speculation because nobody has toukd to those justices that im aware of, is that the conservatives who lost when john roberts upheld obamacare a couple of years ago who were not happy with that decision have decided to put roberts back on the spot with the case thats now before the court. And i think this lends fuel to people who oppose obamacare who think that it was so deceptively who hate the product, period, and gruber is going to fuel some of that anger. The expectation goes from crudeman who says that was a typo about having had the state exchanges provide the subsidies. But now, calling it a typo and seeing one of the architects of the plan actually say were doing it this way to get it through and it was all manned, that does make a difference, doesnt it . I think it has some value, but i think all the evidence is with crudeman on that. Nobody who was advocating obamacare would you say no one would have done it no, no, no. That had nothing to do with the law getting through because the cbo, which scores all these things and figures out how much money is going to be required to make the law work, always assumed everybody would be eligible. If you didnt, its sort of like having the local police force and the backup but all their guns will only shoot at their own heads. That doesnt make any sense. I dont know. Well see. Well see whether this has legs. It has legs in certain places. Thanks, john. Okay. Still to come on squawk box this morning, a Million Dollar controversy at uber. And then later, retail legend William Lauder will join us at 7 30 eastern time. Pizza huts ceo is join to join us. Might be bringing pepperonis, do we know . We put an order in. Before we head to that break. Pizza for brefktd . Yes. Currency check right now, you can see whats going on right there. 1. 59 on the screen. Squawk box returns in a moment. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. Its time for the squawk planner. Housing starts are due at 8 30 eastern time. Coming up this afternoon, the fed will be releasing minutes from last months fomc meeting. Before the bell, we have target, jm smuckers and staples. Then in political news, the nations republican governors are also gathering today in florida for their annual conference. That, everybody, is your squawk planner. Joe and becky, im wearing my white glove. Do it. Do it. Since we have some room here. This is my oh, my god. There, is that now, wait, put down the papers. Youve got to get the glove up in the air. Whewhoo well done. I give you credit. Thats awesome. People dont know that glove was just laying around, andrew. They think you have that glove. I wear it every day for mj. Why is that glove laying around . Oh, by the way, this is only the one percenter glove. Oh, because we werent allowed to touch the watch. Oh, okay, that gives smu cover. Im going to put some sequins on that for you. Well done, andrew. Come back to the set. Come on over. Still to come this morning, a major controversy at uber. Why at least one executive with the Company Wants to silence critic necessary a very unusual manner. And then later, pizza hut opens the box with a major menu takeover. Here st a hint, it is a spicy one. The ceo will join us to explain why he thinks the changes will deliver better sales. First, though, here is a look at the host clicked on stocks. Apple at the top of the list. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Mheres our new trainer ensure active heart health. Heart im going to focus on the heart. I minimize my sodium and fat. Gotta keep it lean and mean. Pear uhoh. Heart i maximize good stuff like my potassium. And phytosterols, which may help lower cholesterol. Major im feeling energized already. Avo new delicious ensure active heart Health Supports your heart and body, so you stay active and strong. Ensure. Take life in. Yoare you kidding me . Oo . Everybodys on woowoo [elevator bell rings] woowoo . Lock and load, people were going all in on woowoo ok . Mark comp us up a profile page copy susie write us some posts ready grace upload some videos uploading i want sponsored woos. I want targeted woos. We want to be all up in your woowoo feeds gordon register our woowoo handle janice . we need an ethnically ambiguous woowoo mascot. Were cashing in the q4 budget, people, and were buyin some followers hahaha yeah [applause] woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo oh yeah [laughing] dude. Are you still on woowoo . Naaaahh, man, my moms on woowoo. Nick feldman of the New York Times sweet tweeted uber represents a broader problem. Big successful startup, she said. The one question is what does this all mean for ubers business, looking ahead . I did speak to one prominent person who invery fasts in uber. He is not worried. Customers ultimately care about the service and as long as that service works, uber isnt in trouble. But this headline does come at a sensitive time for uber. The tech site in which Nbc Universal says uber is now raising money that could value that company at more than 25 billion. Josh, a couple questions. Do you know about this, does this buzz feed again about whats called the god view at uber . And this is a view inside the Computer System that allows anybody in corporate potentially to actually see where every car is and where every passenger is and the privacy issues that come along with that . Right. We do know uber employees did tell a journalist here in San Francisco that executives could look into the travel log. And, listen, whenever you use these services, youre getting a lot of information to these services. Theyre able to track where youre going and when you get there. Looking ahead, that is one question. You ultimately as a customer have to have faith in the people running that service that theyre going to act honestly and with integrity. And the guess the question, in the valley. By the way, to work there and to work on some of the communications, what has he done to change the culture, if he has . Well, passionate about the startup, enjoys a good fight, always ready to take it to the taxi industry to regulator rs and rivals. Fans love the passion. That temperament gets you in trouble. Listen, uber made headlines for years now with controversy thats not stop the business. Its a company thats a few years old, already active in some 50 cities around the world and has a valuation of 18 billion dollars according to investors. Okay. I would hire whats that . Oh, my god. Can look straight into the eye and say up is down and down is up. He will say it. That guy im telling you, just saying that sarcastically . No. Want to hire kind of a hes just someone i would hire to handle pr. He has something. By the way, other people might have difficulty with with the tweets yesterday, i thought they were on the mark. What were the tweets yesterday . He apologized, saying the comments did not represent what happens to the executive . They have not fired the executive. Of course you say the right things. Travis, by the way, was at the dinner. So he knew it already . Apologizing because he was caught, not because he said it, because i didnt say sorry until they found it. There we have it. In the next hour, quarter ly results from target, how they are doing in the shopping season. That and more in moments. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Keystone pipeline does not get the votes. The 60 vote threshold not achieved. The bill is not passed. But back on the table come new year. Pumping up the debate on the hot button issues. Bulls keep charging. We could be at 20,000 at the end of 2015. Will Investor Confidence keep growing as Energy Prices fall . Consumer spending ramps up. Estee lauder lands a new hot face. A contract with the makeup giant, and bill lauder talks strategy in the Holiday Shopping season. The second hour of squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen with becky quick and andrew. You need it, you can get it, but if you know, i say welcome back. You need to watch. Andrew did the moon walk, and also did that spin that mike was talking about. If you missed that, thats, you know, because you were not watching. Big day for the nations biggest restaurant chains. We are on the story because of the major importance. Pizza hut kicking off a major transformation today, a new logo, new uniform, a new website, new packaging, and, of course, a new menu, 11 specialty pizzas, and ten different crusts, ten. Ive been told, someone told me, that the ceo will be delivering pizza directly to the set. Thats coming up at 7 40 a. M. Eastern time, and going to make the viewers jealous. Jealous . Good for pizza hut, good for us, and if the viewers really want if they have one nearby. Stop by here. Well have a lot of pizza here. We do have some pizza lovers in the control room. Im not going to mention any names rob. 35 shopping days until christmas, and retailers reporting Quarterly Results. Awaiting numbers from target. Big box retailer expected to report within the hour. Numbers when released. Weve also talked earlier with an analyst about lowes. S home improve. Retailer reporting profit at 69 cents a share. Good expectations ahead of expectations, stocks up 3 on this. Quarterly comps rising better than expected 5. 1 . A lot of retailers would kill for that in this period. Lowes raised full year forecast, and Office Supply retailer, staples, Beat Estimates on the top and bottom line. Sales declined, but that dropped on what analysts were expected. A look at what were expecting later this morning. There is more Economic Data on the way, Housing Starts for the month of october due out at 8 30 a. M. Eastern time. More news from japan overnight driving the early market action. Bank of japan will keep the mop tear policy steady. Checking the markets, and youre going to see at least, at this point, the nikkei, they closed down 55 points, and that was declined at 55 points with that news that came out from the bank of japan. Europe now, you see at least right now, the dax up by half a percent, and the futures here in america are looking like they are down, but just slightly. The dow futures down by less than a point. S p futures down a point. Same story with the nasdaq. Youve been watching oil prices. Right now, wti is trading up by 23 cents, but sitting below 75 is barrel, and brent crude also below 79 at 78. 95. Watching the temperature year note now, its yielding 2. 43 . This morning, the dollar is up against the euro, which is trading at 125. 35. Dollar yen at 117, and gold prices this morning up slightly, 1198. 40. Okay. More reaction to the latest turn of events on capitol hill. The Keystone Pipeline failed to pass in the senate after a vote of 5941. Joining us now to tell us whats next for the debate over keystone is greg doddson, from the center of american progress, and sidney, the American Petroleum operations senior manager. Good morning to both of you. Before we get into it, one of the points i raised in the last hour is the idea that maybe what we saw yesterday was going to be theater anyway. The president was always going to veto it and have the debate no matter what. Greg, is that the right or wrong way to think about it . Well, i think the pipeline thought it had a chance, but congress rejected it because Climate Change is a serious issue, and we dont address it, leading scientists we could suffer hundreds of billions of dollars in damage and irreversible harm. That proves to be a compelling argument. How long will that remain a compelling argument . Once we get into the new year, republicans in office in the house and senate, is the president going to be able to hold the line on this . Well, the incoming majority leader, Mitch Mcconnell said, well be back to the issue in january of next year. I would take him at his word. I think, though, look at the votes, it does not appear theres votes to override the veto in the house nor the senate. The decision resides with the president , and the president , according to current law, wont approve it unless its in the National Interest to do so. Its clearly, this projects been in the National Interest. Its been six years going now. There have been five environmental reviews, each confirming minimal Environmental Impact and no impact on the Greenhouse Gas emissions. Canada, the u. S. Take great measures to improve and modify the energy standard. This is about politics. Its been about politics for years. How many pipelines do you talk about at the dinner table . This is about a small handful of a local minority pursuing an off oil agenda. You have five environmental reviews confirming it is in the nations interest. It is time to build this pipeline. The economic benefits, the Energy Security benefits, the National Security benefits are tremendous, especially when we can secure our consumers and our ability to refine oil here in this country from north american produced sources. Cindy, and i dont want to take gregs line, and if you want to fight with her on this point id love to jump in on that because hold on. Greg, you say 35 jobs will be created as a result of the pipeline after its constructed . Yeah. The thats absolutely right. The this pipeline just doesnt pass a cost benefit test. Look at the additional Carbon Pollution carried by the keystone xl pipeline, that could cost 128 billion. Thats billion with a b in climate costs over the lifetime of the project. All the costs for 35 permanent jobs does not make sense. Wouldnt you argue it happens anyway . No, i dont think it is. I mean, i think when you look at what some of the major investment houses are saying, rbt, barclays, goldman sacks, they say, you know, youre not going to see the expansion in the tar sapds you see unless these new pipelines pass. Thats, i think, the question before the president. Cindy . You buy the 35 number . Well, absolutely from a stand point of job creation, theres 4 4 2,000 jobs in the construction page with 2 billion put in workers pockets. Unions and labor communities support it in droves, coming out because they want the jobs and they know the real value. As well as the american people. If this vote puts before the american people, twothirds to three quarters of americans would support this. This is a nobrainer. Unfortunately, politics came into play. As far as those 35 jobs, youre also going to have those labor leaders coming out and taking issue and frustration with the minimization of the importance of their jobs. The president s job is also a temporary one, and its no less important. I try to stay out of the arguments now. I dont argue with people about religion. I dont argue with people about things based on faith, but theres one number for you. So 18 million additional tons of c 02, 18 million, from keystone, per year. 18 million. Total per year, 32. 6 billion is what the worlds puts out. Say that again, 18 million, 32. 6 billion. You gave a figure for what it costs for the 18 million. How much is the 32. 6 billion . Whats that add up to . Is that like 50 trillion what its costing the world per year with the 3 2. 6 billion . The key thing to focus on here, if you run a marathon, take the steps. What were seeing here is that the Current Administration cut emissions from cars and trucks this is de minimis. You know, its hard all your other points, i take much less credence in. It sounds like gobbly gook, greg. Dont do to hyperbole or people write you off immediately. Im not guilty of hiyperbole. The Keystone Pipeline is key element for tripling tar sands production in alberta. Dont have the pipeline passing, you dont triple production. If you dont triple production, you save a lot of emissioning. These emissions whether its in cars, power plants, or from tar sands production, these leverage globally. I think for the president , it really illustrated last week with the announcement in china. Were in a situation where the developed world and developing world are Standing Shoulder to shoulder, and articulating a vision for low carbon future. That is a tremendous development, and what it says is we can solve the problem, but we have to start with tangible action to take today, and this is one of them. So the carbon future were living in right now is what percentage of the atmosphere of co 2 . Do you know . Do you know the answer . Do you know what tiny percentage. You know. 04 . Went from. 03 to. 04. And any scientists who understands atmospheric chemistry that that number is important because its affecting the global climate. The percentage may be small. The effect is potentially huge. Hundreds of billions of dollars of irreversible damage. Going to rescue myself again. I dont argue religion with people. Go ahead. Its not a religious issue, but a scientific issue. Okay, all right. Leaving the conversation there. Greg, cindy, thank you so much for joining us this morning. Thanks. You did a great job of rescuing yourself. As i always do on these very hot topics. You dont like to get involved. I dont want to i dont. I dont. I dont need it. I dont you know, i dont look at twitter anymore. I dont i cant. I wont. You might. I might. When we come back this morning, bulls on parade. Dow 20,000 by the end of 2015 . My big bumps along the way . The new face of estee lauder packing a social media power punch with 16 million followers on instagram. Thats more than adrian lima, and giselle combined. We have a special guest ahead this hour, and squawk box will be right back. E financial noise financial noise financial noise financial noise the ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. We need favorable trend coming together over the next year. Yeah. Calling it. Burning up. He admits that things have gotten that tstock market is not undervalued, but, carl, its coming. Thats what i would use for this very sanguine opportunity. You dont like that music. It sounded like a dire warning about the stock market when, in fact, he said the dow could hit 20,000 by the end of next year. Joining us now is bob dahl, chief equity strategist at asset management, a man who needs no introduction, i dont think, on squawk box, good morning, bob. How are you, joe . Im fine. Do you in the past, you have said nobody rings a bell. You talked about being cautiously optimistic. Where are you right now, bob, after watching everything in the last six months, watching the pull back, did that correction satisfy you if you wanted 10 . That do it for you . The s p came so, so close. Every average got there, well more than half the stocks down 10 . We had a 10 correction. Hard to deny that, joe. Look, i think that was signaling the volatilitys not going to stay as well as weve seen in our career. Volatilitys headed back to normal as the feds start headed back to normal. I think the trend is up. Its going to be a bumpier ride than the last several years with 20 20 hindsight. Bob, you liked health care for a long time, havent you . I have. Still my favorite defensive group. You see that times piece yesterday . That was rich, wasnt it . Yes. The president and the guys he loves so much, the Insurance Companies . Attached at the hip. Futures completely the same for those two groups. You knew all along . Yeah, you never you never think its that cozy, but i guess it is. Being more of a fundamentalist, i look at earnings and crash flow, and now we know why, right, joe . You know, id love all that new business too. It makes sense. You know, i cant even considering that the profit inacceptabilityive is something that magnificent is, you know, really hass eto do, anyone runng those companies would have signed on as well if they get potentially 40 million new customers. I dont know who to fault on that. Yep. Any business against new customers, you ask at what price, and even at a small price, incrementally, thats the bottom line part of the Good Health Care story. Bob, do you think the lack of volatility was because of the sweet spot in the overall stock market, or did the fed have something to do with damping volatility with all of the free money . Yeah, i think the fed had a lot to do with the volatility. Joe, when theres ample liquidity, that dampens volatility and path of least resistance was to the upside, and i think if the fed withdrawals liquidity or provides less of it is the more accurate way to put it, that means volatility starts moving up a bit. Not to high levels, but just to above what we got used to in the last few year, and still more normal environments. The path up as earnings move higher, but its not up every day of the month. Yeah. The ten year will not be a problem if it heads if the yields head higher, bob . Well, you know, its interesting. The ten year, obviously, is presented from going higher, given the yields in other parts of the world. So ironically, those low Interest Rates keep rates low here, which helps the economy, so if our rates are going up, it probably means rates go up in lets say, germany as well, and thats good news because the German Economy and europe in general moved away from deflati deflation. Thats bullish for financials out there. What a great sweet spot we seem to be in in so many ways in terms of energy and the consumers to do better and oil prices coming down, and, you know, inflation with the fed not in a hurry, and europes staying low. Seems too good to be true. I mean, were all going to be in some sense, thats right. As you and becky pointed out a minute ago, valuations are not what they were. We know that the fed has been our very best friend, and they will be less of a friend over the next several years. Issues for us to worry about, but youre right, the path of least resistance is to the upside of things. Bob, thank you. See you later. All right. Up next, the god of thunder landing on the cover of people as the sexiest man alive, and get ready for a brand new pizza hut, new look, new uniform, and new menu with new choices. The ceo delivers it all. Cnbc at 7 40 a. M. Eastern time. Looking at that image, i can almost smell the pepperoni. We return in a moment. Time for todays aflac trivia question. What percentage of u. S. Employees are engaged in their jobs . The answer when cnbcs squawk box continues. Ahhhahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. See why speed matters, at aflac. Com. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. There is no car because there was no accident. Volvos most advanced accident avoidance systems ever. The future of safety, from the company that has always brought you the future of safety. Give the gift of volvo this season and well give you your first months payment on us. What percent of u. S. Employees are engaged in their jobs . The answer . 30 . Welcome back to squawk box, and People Magazine named sexiest man alive. It was up vailed last night on jimmy kimmel life. Its chris hemsworth, you know him as thor, playing that role three times and back as the god of thuner. His younger brother, liam, is the star in the hunger game series. All those lists with all the subjectivity. You like this one . This is the dumbest of all. This is the stupidest, the one that gets me most you know, actually, i dont lifes too short, but he was the top 50 most beautiful people. Carl actually was. I know. No, but, andrew, bear with me. Carl should be on this list. In the top 50. I did the math of 6 billion divided by 50, one of the sixiest out of like 200 million. I dont know the math. One in 200. Thats not bad. Did they look at 6 billion . 3 billion men . Did they check out 3 billion . No. How many have they checked for how sexy they are, andrew . How many could they have at People Magazine . I dont know. I give carl credit. How many did they check . 50, a hundred . How many were in the sampling pool. Were you . You might have been. Its a stupid they missed one man. Its a stupid exercise to sell magazines. Those are the magazines that sell. The cover always. Anything to do with People Magazine . They missed a man with the initials jk. Thats a cliched take on this. The real take is they do not look at 3 billion people to find the sexiest men. There could be millions sexier. Its silly and shallow anyway. What . Its silly and shallow anyway. It is. And, you know, hst humiliating and sexist. It is. Youre not talking or looking at the brains or full package. Shame on you, people, shame on you. Results expected from target. We have the numbers and instant analysis. Shame. E financial noise financial noise financial noise financial noise were for an opens you internet for all. Sing. Were for creating more innovation and competition. Were for Net Neutrality protection. Now, heres some news you may find even more surprising. Were comcast. The only isp legally bound by full Net Neutrality rules. Welcome back to squawk box this morning. Front and center, bank of japan announcing they will keep the Monetary Policy steady. They warn they are solely responsible for maintaining trust. That is a shock to the decision to postpone a sales tax increase. Also, the u. S. Auto safety regulator calling on japanese supplier takata to extend the recall of the flawed air bags to do that nationwide. They are still working on their own investigation in the matter. Two firms team up to take petsmart private. They are said to be offering more than 7. 5 billion. Two other key firms set to work on it as well. Listen to this. Walmart scammed into selling playstation 4 for 90. Heres how. Walmart announced they would price match select online retailers including amazon. Heres where it went wrong. Any person with a registered amazon selling account can create awe ten thick looking pages online. A consumer takes a screen grab of that and brings it to walmarts cashiers, asking for a price match. If it looks like they did not verify the deals, and, therefore, many people were actually able to buy the gaming system for less than a quarter of the retail price. Social media exploding with people posting their shopping success. Heres a tweet that says amazon and walmart jig, just got ps4 for 94 and the initials lmao, whatever that means. The kardashian family, latest brand ambassador, the number one model on social media with nearly 6 0 million followers, on all platforms, and joining us now with the partnership and upcoming Holiday Season. This caught me by surprise. I think back at the iconic faces over the surprise whether its willow bay, kendal genre wjenne not in that camp, why . We wanted to sthak it up, and lauder is not reserved to a certain age, and kendall is younger than we expect, and thats what we are looking for. Social media does not hurt. Social Media Presence drives a lot of new and different personalities and so many different areas and kendall is a great example, a crossover, if you will, beautiful and print media loves her, got an amazing following on social media, and the audience who follows on a social media, they are future core audience if not the audience today. It has what has no age . Well, beauty has no age. Goes both ways, though, young and old, right . Yeah. And you brought me, actually of course, i always promise you this. Supplies for men, maximum hydra hydrator. There you go, joe. What are you saying . Why do i need the maximum . Its 28 degrees out, you shaved this morning, the skin feels like a vice. Not just me, but people need it i thought you meant i needed it. We all need it. Okay. Can i see . Of course. When do i use this . I recommend after you shave in the morning. Just a couple guys in makeup talking about skin products a lot of times, right . Were in there, and so we put it on after he shaves and before the makeup . Yes, urn the makeup. Okay. So when you shave in the morning, before you come here, put it on, and you how much does it cost . Thats about 40. Thats stuff is good. How long does it last . This is the new sonic, 89, and this, for example, before you shave, you would be cleansing your skin, and after you put the cleanser on the face, and you scrub and rub your face. That stimulates especially stimulates it before you save, stimulates the whiskers for a closer shave. Thats made for men or unisex . Unisex. Women can use it just as much as men. Its in the shower, flies flat, doesnt fall off the vanity, and, you know, the Holiday Season is all about value now. We know consumers have a certain conservati conservatism. For example, we have this wonderful eye offering, and its going to be 29. 50 for the Holiday Season, and these are extraordinary values, and the consumers come in and buy two and three and four, one for every member of their families. Stockings too. Exactly. Tell us about what you are see right now from the consumers. How are things standing up in the United States and around the globe . You know, in the United States, were seeing a certain Comfort Level with the consumer, becomy, higher up in the economic stratosphere. They are more confident than they are in the middle. I wont say traffic is great. Its good. We are looking at solid numbers, Retail Partners have a certain confidence. The inventory buildups seeing this is good. No one can ever say, oh, its so good, couldnt get better. Always can get better. Theres confidence in europe and the u. K. Which is good, and asia is not as robust as it used to be, but koreas turning around, japan is turning around for us, and china is not as robust as it used to be, but its still very strong. William, how does online impact estee lauder . For so long, you were the department store, had to go there to get the makeup line and brands, and online is a growing business for you. Weve been online with the brands now since 1998, 1999, and, today, we got a multihundred Million Dollar Retail Business directed to the consumer either through our own sites like clinque. Com or as well as through retailers like macys. Com. What other Department Stores say about it if you have a growing direct consumer business . They are totally comfortable with it now because they have a direct business. Now. Yes, early on, remember, they rang the bell the internet was going to kill, you fill in the blank, and Tower Records maybe it did, but fact of the matter, today, we have a highly developed business growing at three or four times the rate of the normal Retail Business, but even still, it does not represent 10 of our total retail sales. How far are you from tracking the consumer who walks into one of the stores, tries one of the products or tests them or looks at them, and then goes home or goes back to the office and orders online . Well, you know, andrew, were almost thats a lot to do with the technology and the intrusion of technology and do you want your smart phone to register your presence when you walked into the store on only when you consciously say i want to give you information. Were good at being able to track the consumer who is willing to allow us to track her, and in other words, that omni Channel Consumer who shops across platforms. We know from research shes six times more valuable over her lifetime to us than a mono Channel Consumer whether shes mono in retail or mono online. The question is now, she came in, youre talking about showrooming, comes in, tries the product, likes it, whats the best price where i can get it . Were in a category of merchandise where theres a lot of see it, touch it, feel it, smell it where the immediacy of buy it now has more presence than certain other categories of merchandise. Thats why we still see a fairly High Percentage of sales in stores as a relative portion of the total. Can you get it cheaper online or is it the same everywhere . We sell it retailers with a suggested retailing price, and they can set whatever price. There are always going to be retailers who will offer for less, but youre talking about small differences in price point. Percentages, the number may be big, but in fact, its a 1 to 3. The differentials are not the same in absolute value, and the immediacy for consumers are oftentimes the big factor. I want it now, its great. Let me take it now. If you have to make a call on the Holiday Season, youd say . Pretty good, pretty good. William, thank you so much for coming. Thank you so much. Thank you. I call you bill, but you prefer william . I call myself on the golf course i yell fore. Usually its modified in a direction. 50 . Yep. Per year . I dont know. Good question. All right. Thank you. Good seeing you. Thank you. Got to take my makeup off before. Not on top of this. No. Talking about the tom ford fragrance. Yes. Coming up, i did some math. Im going to update you on that in a second on what it costs all this c02. Time for a change. Pizza hut, the ceo of the restaurant chain showing off the new look, new uniforms, and, of course, new food delivering it directly to us here on squawk box next, and if we ask america if they needed a makeover, the polls are open for this. So vote on this after the break, go to cnbc. Com vote and well return in a moment. Tdd 18003452550 [ male announcer ] your love for trading never stops, tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so when a market move affects one of your positions, tdd 18003452550 schwab can help you decide what to do. 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With a solid fiscal foundation, we can create more jobs, invest more in innovation and infrastructure, and make america more competitive, giving our kids a better future. A bipartisan solution to our longterm debt means more growth today, more opportunity tomorrow. And the time to start is now. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Pizza hut is rolling out an extreme pizza makeover today, and its bigger and bolder than ever. The largest pizza chain with a complete brand and menu overhaul with 11 new pizzas, six new sauces, a handful u new ingredients, and new flavors like toasted cheddar, and honey andrew . Honey . Sriracha. We have the man himself here. Its hot sauce. It is . Oh, beautiful, oh, yeah, it is. We had that here. They unveiling a new logo, uniform, product on set with us. Getting a first look on cnbc, the president and global ceo of pizza hut. We also want you to weigh in at home. Do you think pizza hut needs a menu makeover . Vote now at cnbc. Com vote. Results on the screen. Welcome. Thank you. Thank you for having me. A lot of wellknown brands from time to time need refreshing. A negative reason or is this the positive reason to undertake this at this point . Everything we do is about the consumer. Weve been doing that since 1958 when we were founded, about being the pioneer, the innovator in the pizza category, first with the internet ordering, the iconic pan pizza, and only natural, we reintroduce new flavors and iningredients to the pizza category. They are interested in flavor. They want choices. We are giving them a lot more choices. Weve more than doubled the number of ingredients to consumers now, and can create over 2 billion pizzas at pizza hut starting today. Are pizza the biggest food in the u. S. . Has to be close. Enormous category. Were the leader. Are youed leader still . In the pizza category . Absolutely. Okay. You have competition thats tough, and, i mean, i watch papa johns advertising with peyton, and dominos did a makeover that was well received. Is it that true . They did a nice job with the turn around, worked out well for them being consistent on the message, but were in a different place, obviously. But you delivering right . Yeah. We also have a heritage in the dinein business, and a lot of dinein restaurants in the United States that others dont have. We quality when we deliver, you were the biggest player in the category by a number of units, sales per unit, whatever measure you have. Theres local guys. Sure you have local guys. Always local. And folks are looking at sort of on demand pizza in the chipolte model, what do you think of that . Thats a new category. Make the pizza in front of you. Theres a new category of pizza even in that on demand as you call it, were watching that closely, but, you know, as the category leader, were making news today with all new flavors and greepts that, frankly, none of the players offer. Cherry peppers on your pizza, thats something that you dont see today. How long was this in the making . A big project. As you imagine, the scale of the size of pizza hut to make these changes and get it right. We had to do research with consumers to understand which of the ingredients resinate with them, which new flavors . We brought over a thousand people into our office in dallas to be trained on making the new pizzas. You get all ingredients at every location . Every location. This is the standard set of gree ingredients more than doubling what we had before, far and away more than any other place. More expensive to have that on hand . Pizza cost for as a result . Great news is we roll this out at the same time we have a new value construct for consumers where you get a pair of pizzas for 6 preponderate 99 each, four toppings, flavor the crust for free with the great finishers and flavors, add drizzles to the pizza like hopnhop honey, all for free. 250 calories a slice . 250 calories a slice. What if i eat four slices of a nonskinny is that 4,000 calories . I told you, do not pretend you have a weight problem. I dont have a weight i was not suggesting how much why do you care . Why do you ask . You need pizza. Maybe i do, but i do is that pepperoni . Going to open it up . Everything in moderation. If i want four pieces, im allowed, am i not . Its all about choices. We have fresh spinach you can put on the pizza. The calories, skinny pizza recipes, all sorts of options. Have you found the whole sort of move away from carbs or the carb issue something you feel you need to address or no . I think weve seen that the category continues to grow. Right. And that were, you know, getting our fair share of the category, and with this move, we believe that we can, you know, really turbo charge it. Lets say its a home run. What type of comps could you expect if this, you know, you get a big promotion, everything else. What would what would you have as a home run if comps were up for 12 months . This is a long term play, first of all. What are your comps running . Out of the Third Quarter, the last two quarters, positive for us, the last quarter was not. We have momentum in the business going into the fourth quarter. Three or four or five comps . Thats what you look for in our industry, those numbers on a consistent basis, and we think thats what gets us to that place. This is a big move in the category. Do we have a picture of the uniforms . Are you talking about the touch points with the boxes, which you see here. I like that box. Revised the uniforms with the help of employees who designed them. Our new website launches today. Its a historic day for pizza hut. Introducing the flavor of now to america with all the changes. Our website is completely resigned. You got it pulled up there, andrew. Yep. Looks great. We had all the ideas in test now in the test market for a couple weeks, so we have real consumer reactions to what were introducing today to america, and its been fantastic. Were finding that people are ordering almost half orders including new flavor of ingredient just a couple weeks in. You know, dave, this was almost a commercial, but were okay with that because you you didnt actually pay monetarily, but come again, if you do this again, welcome back. Any time. Thank you. Well have to do it again. If you want to come back and just say how its going. We are back. Well always be bringing news to the category. This is just the beginning. Stay tuned for more news in the first quarter. Youre good. Come on back. Good luck with it. Thanks. Coming up, targets results, numbers as soon as they are released, but up next, a raef life soap oprah playing out with mexicos first lady. Stick around, squawk box will be right back. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. [annits working forny. New york state. Already 41 companies are investing almost 80 Million Dollars, and creating 1750 jobs. From long island to all across upstate new york, more businesses are coming to new york. They are paying no property taxes, no corporate taxes, and no sales taxes. And with over 300 locations, and 3. 7 million square feet available, theres a place that is is right for your business. See if startupny can work for you. Go to startup. Ny. Gov. Just want to say, i bundled home and auto with state farm, saved 760 bucks. Love this guy. So sorry. Okay, does it bother anybody else that the mime is talking . Frrreeeeaky [ male announcer ] savings worth talking about. State farm. Well, late breaking update on the controversial mansion in mexico that was owned by a well connected Construction Company, but used by the first lady and the president. Michelle carusocabrera is here and has more on the update. The first lady of mexico went on Television Last night on her former network where she was a soap opera store for several years, giving a videotape discourse explaning the details of the house and denouncing shes going to sell the house because she does not want to it reflect on their responsibility and anyone have doubts about whether or not they acted correctly. Theres the house that we are showing you, all white, a lighting system that turns it pink, blue, orange, et cetera, and when it was discovered, we found one that was worth 7 million, and, remember, it is owned by a Construction Company. They found the title, that recently won the contract to build the high speed rail in mexico, so heres the details. She says she paid 4 million over eight years, thats the terms of the loan she got from the Construction Company that she says shes been paying off. The Interest Rate was 9 over eight yearings. No explanation as to why she got a loan true the Construction Company rather than through a bank, a more traditional way, and made 10 billion back in 2010, the final year of the contract, which is why she has the money to afford this house. 9 interest over eight years . Thats a really high not in mexico. Right. So at the time, Interest Rates, the best Interest Rates fell to 10 in 2010, and i did is search like if you want to buy a house in mexico now, theres a couple websites, and currently, Interest Rates are 11 to 15 . Just to give you an insight into the mexican economy. Just the actress or Movie Actress . She was a soap opera actress, but in mexico, thats a hollywood star. She started working at the age of 15, and she stopped wokking when she was first lady, and so she worked for, you know those stars here dont make that. Oh, god, no, but in mexico, they make a ton of money. I dont even think they its too much. Even in mexico, its problem. The one final point to make even in mexico, no one needs that much money. Theres no acknowledgement or understanding why would you as the first lady of mexico, not do some arms length transaction rather than doing it when you ask many executives this question, they look at you and shrug, like, its a cultural its a different lots of translations its a problem for mexico in the long run for worldwide investors. Right. Thank you, michelle, crazy story. Who will she sell the house to . Thats another story. The Keystone Pipeline bill failing to pass the democratic senator, and heitkamp, a supporter of the pine line. Where does that leave her state . Will it pass in the new year . Well talk about it. Ford rolling out a new explorer. Phil lebeau is going to talk health on the new suv. We return in just a moment. When diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Yeah crestor is not for people with Liver Disease or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. These could be signs of serious side effects. Are you down with crestor . Ask your doctor about crestor. Which means its time for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry in and get zero due at signing, zero down, zero deposit, and zero first months payment on select new volkswagen models. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. One vote. The 6 0 vote tlesh hole having not been achieved, the bill is not passed. The bill fails, and future of Energy Independence in creating jobs in america put on the back burner for now. Senator heitkamp who tried to rally senators to pass the bill is our guest. Target in focus, crushing results, and what the big box retailers planning for the Holiday Season. Leg warmers are back. Meet the 8th grate entrepreneur knitting her way to success as the time hour of squawk box begins right now. Welcome back here on cnbc, an unbelievable scene in buffalo, new york, and a major snowstorm slams the area. The power of the storm captured by a photographer in downtown buffalo as a wall of snow hit lake eeri. Dozens stranded, and troopers delivered supplies to motorists. By the end of the week, they could have six feet or more in some areas of upstate new york city. At least five deaths already blamed on the snow. Okay. We are following three other big stories this morning, the senate fails to pass the pipeline, falling one vote short. Also, Central Banks on a center state, the breaking overnight, the bank of japan keeping Monetary Policy steady. Here the at home, well get minutes from last months fed meetings, and, also, housing in focus, Mortgage Applications jumping unexpectedly in the latest week at 8 30 eastern, Housing Starts, and those hit the tape and where those land, and we have knnews now. Shares of target trading higher, adjusted number of 54 cents a share. Thats above, well above what the estimate was. The estimate was 47 cents. Revenue above consensus, increase better than expected, 1 1. 2 . Target says any future expenses related to last years data breach are not expected to be material, and thats good news too. Look at the other things they are saying. They are looking at fourth quarter, thats, of course, key because of the big Holiday Shopping season, expecting 1. 13 to 1. 23. The street at the high end of that at 1. 22. That could be one thing, and right now, at least, the stock up 3 . We do have the retailers ceo, Brian Cornell joining us at 12 30 eastern time. Lowes posted better than expected earnings. They also put the full year forecast higher as well as a result of that stock up nicely tea at 4 . Staples Beat Estimates also. That was despite a seventh straight quarter of sales going down, declining sales, up a little. Two firms teaming up to make petsmart private. They are said to be offering more than 7. 5 billion, and a couple other firms are also said to be working on their own joint bid. Pe pe petsmart. How many pieces did you eat . One slices. Thats it for you . Thats it for me. How many did you eat thus far . One and a half. One and three eighths. I could eat an entire pie. A pizza piece counter for you two. Look who is over there. Knock me down with a feather. Its rob. Oh. How did i happen to just look over and see him there. Wait a second, you have eaten total coincidence. You ate more than he has today. Okay. We were going to get back to business while joe and rob eat some pizza pie. Were less than 90 minutes away from the bell on wall street. Futures now, take a look, markets setting up this morning. You see there the dow would open lower by ten points, and nasdaq off five points, and s p 500 off two and a half points. Markets in europe at this hour. Youre seeing things look slightly better in germany and france, and the ftse, though, off marginally. Theres a surprise profit. Thats not correct. A surprise increase. Senate narrowly defeated the pipeline, and senator heitkamp is with us. You were there yesterday, and sure you were there part of the whole process earlier on. Do you think the senator thought she had the 6 o, do you know the do you know whether they are positive about the prospects . You know, boehner doesnt have it, you know how embarrassing that is, thats bad enough, but they went forward with the votement do you think she thought she had 60 . Do you know . It was always tough. I counted votes for two years, and one of the things that stopped it is the lawsuit in nebraska. We could have probably picked up a couple more had that process been completed, but it was a process argument. Its taken six years, and it was not persuasive enough together, the couple votes that i think we could have gotten, and so, you know, what we did is we did what the senates supposed to do, which is we voted. We brought up an issue. We had a very heart felt debate, and at the end of the day, we fell short, but the bottom line is we know this is going to pass next year. The question is what will the president do with it, and whats his final decision going to be . If he vetoes whatever the senate does and congress does, do we have enough votes to override . Right now, we know the house in the votes did not have the votes to override. We have a problem because five of the votes on the democratic side are not returning to the United States senate. That makes the equation look more difficult. Interesting. So you said we did what the senate is supposed to do . We voted. We voted. Are you making is that a swipe at harry reid . Did you support did you vote for him this time . I did not. You know, and, really, i think if you kind of followed the discussion that we had last year, i worked with the Bipartisan Group to try to open up the process. I worked with my colleagues to try to open up the process. Every step of the way, getting more frustrated, and i think there was a lot of, i think, joy, if thats the right word, about what we were able to accomplish just getting this to a vote. So the president probably one of the things that i andrew brings up, and its, you know, its youre not one to bring it up, but this theater, political theater that never had a chance because we knew the president would probably have vetoed it, i cant tell when a better time for him would have been. If he truly wanted to do something bipartisan, this would have been yesterday if it passed, would have had 14 members of the other party with it, but i think he would have vetoed it, but the next time when its a republican control senate, hes going to be more emboldened to veto it, is he not . Well, i dont know. Im not in Constant Contact with the white house. I dont know what their thinking is. What was surprising to me, i said, its a pipeline. It shouldnt be a cause, its app essential piece of the infrastructure, if you like gas under 3, thats a supplydemand economics 10 1 allowing access to the supply of oil is going to provide Affordable Energy in our country. Regardless of where that energy goes. So there will be a lot more discussion. I had the chance to talk to the premier of alberta days ago. Hell come in january. I asked him to read the transcripts of the arguments. We have to continue to make a fact based argument, not an emotional argument for the Keystone Pipeline. Ill tell you this, and i said it before. The Keystone Pipeline is one part. Some think not a significant part of the energy strategy. Of our Energy National energy strategy. Its occupied that space now for over two and a half years. We got to move beyond that. We got to talk about the things we talked about when i was in new jersey which are exportation of our oil and our natural gas that can do so much to balance the equation in the world. We have to talk about long term supply and long term infrastructure so that when you turn on the lights, they actually come on, which is something we take for granted. Senator, is there anything you learned from the premier from alberta . I wonder is there a point where they said forget about it . It was rumored if not here, they would find another way. Are they to that point yet . No, not yet. I think their thinking is, look, we have not yet got a final decision from the president , and one of the comments that i made yesterday, and i believe it, its, like, yes or no. Its six years. Yes or no. Make your mind up so we move on one way or another. Thats been one of the real challenges here. I was talking to young people, and i said, how would you feel if it took six years to get your drivers license, and they look at me shocked, but at some point, six years is a universe of time in this fast moving economy, and it is unrealistic to really say that that is an appropriate period of time to look at this pipeline. So much to talk to you. I love having you here, love red state democrats. A fine line you guys walk. You say you know, a straight shooter a lot of times. Lets say you knew what you know youve seen the groover tapes now. You knew what you know now about the way that obamacare was constructed. What would you knowing what you know now, if you had not voted back when it was passed, would you have voted for it . Joe, which is what i always said about obamacare, if i were here, the dynamic would have changed, there would have been a different discussion. I think the way that bill was crafted was was in the political necessity of the time when they were losing the 60 votes, couldnt demand it or fix it. The traj ji of the Health Care Law is there does not seem to be an appetite to fix what we have. The appetite is to use this is a political football, more tragic given how Important Health care is to the american people. Do you think that if the president and it could happen today, tomorrow, do you think if the president does what he said hes going to do, is it worth it to, you know, theres, harry reid says go big, go as big on immigration as you can conceivably go, but other people say thats like sticking your finger in the eye or opening a hornets nest. Its not going to make the environment pleasant for two years. What would you if consulting with president obama, how would you advise him on this issue . What i advise is caution. You know, do what you think you haved too, but give this process and this new congress some time. Weve turned the page. We had a tough election. Lets see, you know, let us know what youre thinking. I think thats appropriate, but delay the implementation of what youre thinking to give us time to reacts to it. Joe biden tried to suggest that, and i think the president got mad at him when he did that. I dont know that gossip, but i cant tell you google that. My pleas for this equally have fallen on deaf ears, so what can i tell you. Google that . Deaf ears. Must be true. A lot of what i say falls on deaf ears. What i said, it reminded me of its a wonderful life, and one person can make a difference. If you had been there, obamacare could have been different, if only you would have been there, maybe we wouldnt have now youre giving me a hard time. No, im not. No, i believe everyone makes a difference. Youre absolutely right. It was what a weird zone we were in. They lost ted kennedys seat to go below 60. The way it came together, to this day, thats why its at 37 . Senator, we appreciate your time today, and its always fun to have you on. Thanks so much, joe. Becky, dont let him get you down there. He doesnt. We have fun every day, and we love you on set. You always come to play, and we appreciate it. She has a red dress too. She has a blue one too. Ill be purple next time. Just for you, joe. Okay. When we return, coming up, taking aim at target, a break down of the retailers result and how Big Box Stores gear up for the shopping season, and whats ahead later today . At 8 30 Housing Starts data for october, and the Real Estate Agent to the richest in the nation. The ceo talking high end housing, and the youth entrepreneur of the year, talking leg warmers and more. Were back in just a moment. Will that be all, sir . Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Target beats expectations on top and bottom line. We have more on this from minneapolis this morning for an exclusive interview with the ceo of target. That is coming today at 12 50 p. M. Eastern. What did you think of the numbers . Reporter you know, becky, at first blush, they look good. We dont have the conference call, but the main highlights, looks like the earnings per share for targets Third Quarter comes in at 54 cents, above what the company expected, they had a range of 40 to 50 cents above the analysts expectations. Reeve knew strong. Same store sales up 1. 2 . That number includes online sales, trying to get another break down to understand the numbers more, but, again, at first glance, looks good. A full year for that earnings eps guidance, narrowing the range to 3. 15 to 3. 25. The previous guidance for 3. 10 to 3. 30. Look at canada, producing money, down 211 million, but better for the same quarter than the year prior. Beauty, strongest segments for the company in the u. S. , strength phenomenon kids and baby, apparel down sleegtly. Looking at the month by month break down, back to school was strong, strong this cement, slowed down in october, but picked up at halloween. That discusses event shopping consumers go after. Probably good news for the holidays, at least, again, at first blush, positive for three months for the comps, shares up 3 in the premarket, so most things are looking good for target, but, remember, going into this Holiday Quarter is very, very important. Last year, about a month from today is when you found out about the data breach. They do have interesting quarter left looking at q4. Ford, meanwhile, unveiled new explorer offerings, joining from the l. A. Auto show. Are you going to youre not i want to see this. I love when you do this. I love this. Pull up the skirt and show us some leg. Look at this. Oh, im pulling up the skirt right now for you. Here you go. This is the new ford explorer, 2016. I like the color. That is pretty. The fak of the matter its is different. In fact, its at the front end, new end for the ford explorer. They are going to be selling this middle of next year, 2. 3 liter ecoboost engine, and offering a plat number version of the explorer. You say, platinum version . Thats the highest end, expected to sell for over 50,000. Why are they pushing that end of the market . Because when you look at suv sales right now, full size suv sales up more than 12 . More than double the overall market, which is up 5. 5 , and luxury suvs up 11. 8 . In fact, we asked true car to run numbers for us. The average transaction price, what people pay at a dealership for a large suv now, up 7 to 48,000. Thats what people pay on average for a full size suv now. Look at ford, a reason they push the new explorer here at the l. A. Auto show is this is the hottest segment within the overall Auto Industry outside of high end luxury vehicles. The new explorer goes on sale middle of next year, and you can expect a lot of people will be paying well over 50,000 one of the versions of the vehicle. Phil, the question, always, i have an explorer years ago, i have not in a while. Whats the third row seat situation . Its here. Its here. You know, my thoughts about this, becky, third row is there if you want it, its not good for car pooling, but people want that feeling of driving an suv, so, yes, you can get kids in the back of it. When i had an suv, you can get them in the back, not the easiest, but joe says, why dont you drive a minivan. Its because car pooling is easier. If you have captain seats and middle seats. But, yes, it has the third row. Okay, phil, thank you. Its a pain on a third row suv. Right. Up, down, pull it, headset, he rest down, do the thing, and, yeah. Housing starts data and one of the top Real Estate Brokers in new york city. First, we have sad news on one of our most treasured guests. Cnb contributor passed away, a Founding Partner at speers, and thats where he worked the majority of the career, it was acquired back in 1995. Vince was a guest host on squawk box during the debut week in august of 1995. Of course, many, many times after that. Vince did not start the professional life on wall street. He spent five years Teaching High School history and coaching football, and thats the side of we knew so well, he helped me along early in my career, both he and his wife were wonderful to me. I cant thank them enough. A good gentleman. As you point to as someone you want to sort of be like. Right. Definitely a role model. Survived by the loving wife, 45 years, two dherished granddaughters. He was 68. Came down with battled hard for more than a few years. Good man. He was. Well miss him. Ill you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Netflix headed down. The video streams services launching in australia and new zealand next march, making them available 50 different countries. The comedy was scheduled for the day after thanksgiving, but hes been under fire for a number of Sexual Assault allegations of which has made headlines. A lot of people talking about that. Coming up immediately after the break, october Housing Starts data, plus, talking to the state of the high end reality market, and, later, knitting skills helping her spin a huge amount of success. An 8th grader wins a 25,000 prize and named youth entrepreneur of the year and met with the president. Were going to meet her on set. Thats in just a little bit. Were back, and we got Corporate News this morning to talk about. Two firms reportedly teaming up to take pets mart private. They are said to be offering more than 7. A billion, two other key firms said to be working on their own bid, and we have to tell you about restaurants cutting job, lowering costs, and dhapging the magnificent team. They getting rid, and jack in the box Mexican Grill restaurants boosting results. What i said was that you had a little trouble, but you nailed i compliment you saying you nailed jack in the box. All right, gentlemen, housing startings. Rick santelli is standing by. October housing data hitting the wire, and, well, a wisker own a million units, 1. 009 is the headline Housing Starts, considered last months revised from. 0107 so now. 0108 so a little higher. The same scenario, a bit over a million, but a bit more over a million, 1. 08 million, up close to 5 from 1. 03 one, also revised higher. Now, the numbers are not bad. In terms of starts, it does not take out some of the recent comps, although it is close. July, back to the end of the last year, and all those numbers compacted various points, and in 2007 and 2008. It is not bad. That underscores yesterday, National Association of insex, how that jumped. The last time that number is close as it is to 60, compare at new starts, permits, out of kilter. Why . Its a survey. Its not a, you know, numbers counting issue. You know, its much easier to count 41 no votes in the senate than to get an Accurate Survey when counting peoples opinions. Theres bits and pieces of it. I wish i would have had a bet on it, trying to corner me on that on closing bell, said it would never pass the senate, and they thought i was nuts. Why . The democrats, i wouldnt vote for it before, are going to be ennap moried with the election and just sign up in droves to vote yes. Heres what i thought, rick. If it go the votes to pass, it could have been as bipartisan as immigration bill in the senate they are not voting for that in the house, so that would have been a bipartisan bill that would have been vetoing, so the democrats did not want to send him a bill that he would veto if it was bipartisan, if it had all the democratic votes. Now its a republican controlled senate, and hell be able to veto that, and they will be happy, everything else. It was a bad time to veto it. I didnt think they would give it to him, and durbin, you know what he thinks of these things, dont you think . Dick durbin . Im familiar. From illinois. Yeah, hes just, you know, live and let live type guy. Just, you know, so inclusive. You know, we its one of chicago and illinois shining politicians. Second behind well, second behind harry reid, so there you have it. Anyway lets move on. Rick, ill get to steve here with thoughts on the housing data and Holiday Hiring. Anything else . I dont want to weigh in. Thats you, joe. Not all me. All rick and joe. Thank you. Takes two to tango. Housing below expectations, sent revised up, see how that plays in the gdp later on. Later, there was a good rise in Single Family start rs that were up as well as decline in multi. Its been mostly the other way around, mostly multifamily starts have been leading the way here, and the decline of three of the four regions, northeast, midwest, and the west. Permits that lead the way to perhaps better housing. Confused by the housing numbers because home depot is doing well. You wouldnt think thats the situation. I just want to talk, though, real quickly, new data on hiring th that suggests this could be a solid Holiday Season for retailers. An economist at Deutsche Bank looked at the eight categories and see the most Seasonal Hiring finding that combined gains hit a record 172,000 jobs in october. Each one of the eight categories led by general merchandise stores, Department Stores, nonstore retail everies, those are internet retailers with clothing stores. I thought, how good are retailers at predicting how many employees they need . In other words, can october Holiday Hiring tell us how good the whole season will be . Turns out, they can. Heres the level of october Holiday Hiring compared to the National Retail federations holiday sales over the past dozen years. Theres a track record of predigging the season. Its supporting the nrfs strong prediction of 4. 1 sales gain for the season and suggests that number could be light. To be sure, retailers adjust if sales do not materialize, they slim back hours and not bring on help in november, when the bulk of the hiring is done for holidays, but so far, so good. Strong october hiring, good early indication that retailers expect strong holiday sales. They are not bad forecasters, becky. Get the elves up to north pole in october. Its a selffulfilling prophe prophesy. Order by july. Got to come from china. From china, comes over, always like christmas in july. We figure out what you plan on setting. Last year, it was the weather that messed up everybody, and threw them off. You want Colder Weather because you ordered the cold weather clothing, and if it doesnt turn cold but whats interesting is you want to talk to people who know their business. Yes. These guys are making a bet with money on the line, and all the economic studies shown that when you want to find out a good forecast, ask somebody with money on the line, not somebody sitting back saying, oh, you know, i dont care. I like that, steve, youre right. The retailers live and die based on how they do in the christmas season. They have to get it right. Which is j i thought this october number could be interesting indicator, and like i said, so far, so good. October hiring does a decent job chbl obviously, in november, i add up october, theres a better job of predicting holiday, but octobers good. Youre right to get guys in on that. Another selfanalyst on . Thats an interesting point. Right. Exactly. Although, then we have the guys who are accused of talking the votes. I do get accused of talking. Guys are smarter than us. Some of the things they do is internally when they ask employees of companies to predict whether or not a project is going to be, and they give bonuses and do things where the economists try to give people money for succeeding to get their forecasts rather than no skin in the game, and that improves results. Steve, the good ol days where they could be an investment banker. Outside and buy. Spitzer had to ruin that. More on the Housing Market from the largest residential Brokerage Firm in new york city, mountain and ceo of the the fourth largest realize company. Good morning. Good morning. So lets just define one thing. New york is is a crazy outlier. It does not represent the national economy, but realize, of course, it is up, across the board, luxury homes at top. Which would be the top 10 of the market, up across the board. Its a slow recovery. Jobs are not where they should be, and, you know, unemployment, you know, theres a lot of people off the rolls, but as a bhoel, 2015 should be a plus. Interest rates are low. First time buyer, a strong sect sector, they have a lot of student debt. The prediction is all good. A manhattan question. So the average price in new york city is now officially 1. 684 million for an apartment. What size apartment do you get for that . Thats, by the way, up 17. 4 . Almost embarrassed about this. What are you laughing at . Hard to say because im listening to the average sales price everywhere else, and we have offices all over, but, yes, its incredible. Whats the average price in the country, by the way . A little under 400. This is close to 1. 7. So, look. Its off the wall, but new york city really does not compete in a you know, its a global market, and, actually, doing a Wealth Report predicts that new york city right now is number two in the world of where people want to be. London number one. Yes, but they are fro london. Okay. So now predictions for the next five years, new york takes the number one place. Thats why we have to keep it safe, clean, and healthy. People want to be here. Is there a point at which you would get worried things are overheated in new york . Of course you would always get but i dont see that at the moment. I mean, i see that whats going on is it is not a freeforall. Its healthy. Its steady. People pay numbers for luxury. Its an international market. They want to be here. Are you worried, at all, that new york turns into london in that theres parts of london where there are homes owned, but nobody lives there . You could walk around mayfair, for example, and theres nobody there. Its completely that changing the social construct of parts of the city. True. Ive seen that. Look, no. Because, really, you know, new yorkers, the look, the foreign markets, we hear all about, and everybody wants a foreign buyer, new york city, and there is a presence, people put their money here, safe investment for them, but new yorkers, really, still are buying new york in a big way. And you look at the world trade center, whats going on downtown, thats all new yorkers are the strength of new york. Thank you for coming in this morning. Appreciate it. Thank you. I cant believe the apartments go for 1. 7. Is that a studio apartment . Two bedrooms. Okay. Dont pretend again. Youre knocking out walls and buying additional units. Dont even. Im not doing these things. Up next, youth entrepreneur of the year, and an 8th grader bringing back leg wamers, and i was told yesterday, they are back. They are back. Do you know they are back . I confirm at home. We meet her next. Heres whats trending right now on twitter. Welcome back to squawk box this morning, a boy got something High Schoolers dream of. A full college scholarship. Less to accomplish a few things before accepting the scholarship. He has to finish eighth grade. As a seventh grader, took the act, and got a perfect score in the reading section. For the accomplishment, university of nebraska presents that scholarship to joshua at a school assembly. Cool. Didnt the actual chancellor of the university of nebraska, harvey pearlman, actually gave him that award . Didnt he . Yes. I just i think people need that additional information. Harvey pearlman harvey or chancellor, come on. Ill oust you. Do not skip things that are there. Sorry. Students around the country line up to compete in the Youth Entrepreneurship contest this year, and our next guest is thee first middle schooler to win the competition. Yesterday, she met president obama with the other winners. There she is in the oval office on the right. Say hello this morning to lily who is 14, from baltimore, and the founder of lilys leg warmers. Good morning. Good morning, how are you . Were doing very well. Its great to see you this morning. Its great to talk to you. Talk about how you came up with the idea for lilys leg warmers, they are warmers you knit yourself . Yes. I make them out ogranic materials that are breathable and help improve dancers athletic performance. My younger sister is a dancer and injured several times and needed warmers to help her. When i developed the product for her, i thought that maybe other dances would be interested in it. When did you start . Youre 14 right now. Right. Ive been planning my business since january and got it off the ground in august. So one thing we heard from warren buffet and many others is that the best sign of an incredibly talented entrepreneur is someone interested in business at a very young age. When did you get interested in the idea of starting a business . It was something i thought about for a long time. I already run a successful baby sitting business. Really . For how long . For about two years. We have the network for teaching entrepreneurship, and through that, i competed in three rounds of competition and went to nationals. You know, sounds like a fascinating product. I know its something not just for dancers at this point. They are coming back, fashion statement. How do you keep up demand when you hand knit them . Ive been knitting most myself, but i interviewed people to work for me. Trying to find Senior Citizens help me knit because they have the experience. Smart. They are willing to do it. And they like it. Lily, back to the baby sitting. You have other people that baby sit that you contracted out . How many employees do you have with the baby sitting . Ive just been baby sitting myself, but i have a lot of people i recommend if i cant make it. Do you get a commission on that or something . No, i let them keep it. We have to think about that. Lets talk. Business is a relationship. It is a relationship. We had a gentleman on who makes his own bow ties, and how old was he . 12. He may have been 12. Branch out a couple, like, young entrepreneurs together, he had beautiful bow ties, but maybe you stick with warmers for a while, but sooner or later, you might new product offerings. Yes, of course. The word entrepreneur, and trying to make your way in the world, where did you get instilled with this notion that it was a positive notion and something that, you know, to be celebrated . I think i think what i took out of becoming an entrepreneur is really what made this so positive, and what i took out of it is that you shouldnt be afraid of what you want to do, and of what other people will think. Just go for it no matter what other people will say. Of wanting to be successful, of wanting to have a successful company, of wanting to make a lot of money, of wanting to employee other people, and making your mark. I applaud you. Well done. Thank you. What was your conversation with the president like . It was really great. He was extremely inviting, and we got to talk about how Small Businesses on the rise and how Small Business is going to help bridge the gender gap. Wow. Lily, if you have plans, i know its hard to look ahead to see yourself as an adult and what things youll do at that point, but do you have other businesses you want to think of and look towards down the road . Certainly like to continue with this business. My eventual goal is to become a doctor, so im hoping to continue with this business and maybe branch into other ones while trying to finish a medical degree. Those are ambitious plans, but seeing what youve already done after shes an astronaut. Seeing what you already did, it sounds like the sky is the limit. Lily, congratulations, and thank you very much for joining us today. Thank you for having me. Okay. When we return i said okay. Again. When we return, you wont believe what some people will do for a playstation 4. Cramer, wh started street. Com when he was like 14, from the new york stock exchange. Well get his take on target results and more. As we head to break, three things you should be watching in the trading day ahead. Those three. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Welcome back, everybody. Talk about a scam. Walmart customers have misused the retailers price match promotion to obtain 400 playstation 4 consoles for less than a quarter of the retail price using thirdparty sellers on amazon. Heres how it works. Back on november 13th, walmart announced that it would price match select online retailers, including amazon. Com. However, any amazon member with a registered selling account can create authenticlooking pages and list items for sale online. Consumers only need to take a screen shot of that page and show it to a cashier at a checkout and order to request the price match. Some pictures have been popping up on twitter of receipts documents that walmart accepted the fake amazon listings because theres two sides to amazon. Its the actual amazon stuff and everybody else who sells on amazon. Like the auction stuff. Right. All right. Lets get down to jim cramer. I know you didnt, jim, at the new york stock exchange. You didnt start street. Com when you were 14, but you might have started Cramer Berkowitz when you were 14. I was young, about 28 when i started it. You were. And you had already lived out of a car for a while, hadnt you . Not all done in fair weather. I was a reporter. I covered homicide and learned that its better to be wealthy than poor when i was in my car. Something that i think is still the american dream. Get out of your car, have a house. Its a good idea. Yeah. You saw our interview with lilly. Thats classic, isnt it . Yes, yes. Shes going to be a doctor. She didnt build that business. No, no. I take that back. How about target . Every single line i liked. Brian cornel is getting to work much earlier than i thought on this. Looks like that delivery, the online is just fantastic. The fact that canada might be turning is incredible. I know he was dealt a bad hand. He does seem to be doing a lot of good stuff very quickly. I was speaking with someone whos a supplier of target last night and said, look, they have reinvigorated aisle after aisle after aisle. Looks like cornel came in charging from pepsi co. Its remarkable. I did not expect this to turn so fast. Jim, the Housing Starts were a little disappointing. Weve heard great numbers from lowes and home depot. What do you think about the Housing Market . I think that home depot conference call, the fact the stock was down. Theyre very bullish in the Housing Market. Weve been waiting for this for some time. This was a breakout quarter for home depot. They should take the cue from the stock going into the quarter. It confirms a lot of what we thought. They did say the transactions are down below where they would like it. The idea of spending on your house again, the idea of the professional going to home depot, these are all good. And the online for home depot was the shootout. Really just an incredible number, as we got from target. This is the quart where online helped everybody. It really did. Except for perhaps urban outfitters. I didnt see the results there. Okay. Thanks, jim. See you in a couple minutes. Up next, lowes results out earlier this morning. Home depot out yesterday, as we just mentioned. Which one is the right buy right now . We have one analyst perspective, and we want to hear from you. Which do you think is a better investment . Log on to cnbc. Com vote. Get ready, the polls open after the break. Happening this morning, lowes Quarterly Results topping expectations. Stock is up now more than 18 since the beginning of the year. Just yesterday, home depot put blame on the data breach for its miss. We asked brian nagel earlier in the program which one he would buy right now. I continue to tell my clients, if youre going to buy one, i think home depot is the better bet at this point. Its been the better run company over the last several quarters. Again, we saw a very nice quarter out of lowes today. Over the last several quarters, i think home depot has been the better company. Home depot currently sitting off its alltime high. Make sure your join us time. Squawk on the street starts right now. Good wednesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer at the new york stock exchange. David faber is at the Liberty Media day. Futures, meantime, mildly weak. Tenyear yield creeping up to the top of that recent range. Oil stubbornly below 75 a barrel. A turnaround beginning at target. Earnings beating the street