Numbers. Profits miss estimates by a penny. The massive data breach hang over the stock. Macys downgrade with disappointing results, dicks and urban outfitters. All moved lower. A vote coming for obonomics in japan. And well have an exclusive interview with the ceo of halliburton to buy baker hughes. Revenue above consensus rose better than expected 5. 2 . Retail noting at 28 million and expenses for that recent data breach adding it cannot estimate the total cost of the breach which for the year, about 34 million. Not bad in a tough retail environment. Traffic up. I think what happened is last week macys reported a quarter where they cut the forecast, yet the stock rallied too after being down one. That caused a lot of people to say it doesnt matter what retailers do. Its going to be a good holiday. Gasoline down, employment up means you can suspend what people think. Lots of stocks ran. When you run into a quarter, suddenly we take it into account the way we didnt when macys was stalled. This stockholm depot is a victim of the running. I dont like situations where the number comes out and stock starts going down. It was a great quarter. Is it as great as i expected . Yes. The stock is also anticipated a lot. When you have a piece immediately out within 90 seconds of the release, home depot comes out early. Q3 samestore sales in line. Operating eps misses by a penny. No stock thats run up this much can handle a piece of research that says it misses a penny. A great quarter why . Its a great quarter because Gross Margins expanded. Samestore sales at 5. 5 is remarkable. These are lots of people spending on their homes. This stock was in the mid 80s not that long ago. They bought back a lot of stock. I thought the breach would be far worse. Target has run a huge amount going into the quarter. Inventories running higher than sales. I dont know. What happens if it snows in buffalo 18 inches . Good point. You want inventories low. We are getting a long streak of cold weather. Yeah. The new ceo, i think people are, there are a lot of people feel this thing has run its course. The macys downgrade is about running its course. My problem with that is these stocks historically are still inexpensive. They are doing a good job. I dont think target is doing a good job. That stock might be expensive. We saw nordstrom and macys go up on what was muted outlook. We believed these retailers have been stalled for so long, lets run with the more positive view given gasoline and given employment. I think these stocks have run up and they come in a little. Thats okay. Right. We are talking about a move from 80 to over 100 in a very short amount of time. Thats come along with a multiple going up. It hasnt been about the earnings. I dont like multiple expansion. I dont like paying up far more for earnings. Walmart blew through the 70s to the 80s and come up with Comp Store Sales slightly better and everybody is thrilled. Europe is up a lot. Yesterday europe was down. We are in an opposite we are not trading with europe. I think we are going to trade with these retailers today. Dicks did meet, comps up 1. 7. Urban was horrible. Comps down 7 . Thats a 2 1 2 year low for urban today. Urban out fitters, youve got to go through the Conference Call. To quote the ceo, its just this is richard hain. Its urban. What did we learn . Clearly the consumer is growing affinity as tempered with the need to shop in stores. Why did anthropology and free people do well . When i say its lousy, i am quoting them. They were very unhappy. Urban is a lost cause, the way it reads. That statement can be used broadly speaking to indict all of retail. It seems to be used by those who are not seeing strength, but then again, we see others who arent having that same. They are say direct consumer is better. It raises the bar for bricks and mortar store. You have to experience it. Its become a broadway play. That sounds more expensive. That costs a lot of money. I cant argue with that sentiment over time. Weve been talking about it being the underlying trend in retail whether it be that people dont want to go to malls as often as they might have. And they are using their mobile phones frankly to doe all sorts of stuff they would have once done in a brick and mortar store. Was urban out fitters the flagship very good online . It wasnt clear because the numbers are so confusing here. I do think, david, youre right. The excuse of bricks and martor as being used by guys who underperform. Why would you use it . Thats the one youve got to go to. Its rooted in reality. It doesnt have to be the reality further. Its not that exciting to go to. Restoration hardware, very expensive stock. Im making a list of retail downgrades, macys, walmart, tjx, ross, nike, lulu. If i call apple a retailer, we have a price target increase. To 130. I think the flaw in the sell retail is its been very long since we had growth with retail. Its almost as if the analysts dont believe with retail. Analysts think amazon is killing everybody. Go over the nordstrom Conference Call. They have spent fortunes with their online. Some people think they overspent. Theyve done a very good job. That is not a bad stock. These stocks have been fabulous. Lets just give them that they ran a lot and now we have to start thinking lets have a pullback. Stocks do pull back. This is one of the great groups of this moment. When we get the numbers, its sell the news. One of the biggest holidays, perhaps the biggest day is singles day you know you were in where you cant breathe when it happened. China. The headquarters of alibaba. They sold 33. 9 billion worth of goods. 79 million packages, most have been delivered. Stunning, as your point it, it ran up. Stocks run up. Its still a 280 million market cap on alibaba. Right. And apple is a great retailer. They didnt repeal the loss of the stock market. When you have a monster move, stocks come down after you get the numbers. Japanese Prime Minister abe delaying a sales price hike next year. Showing the worlds third biggest economy slipped into recession. Over in europe, data confidence came in better than expected, rising the first time in almost a year. The estimate was only 0. 5. I love one of the stories about japan. In the tax hikes they already put into place, the quote is they my have overdone it with the fiscal tightening and taxes. Oh did they ever. Tjx. A lot is forex weakness. We may not be fully accounting for it both on the income of what its going to do simply to net, but also what it really does to overall sales. Do you think the confidence number was an outlier for germany . You need to see that dollar stop going higher against the euro. You go through tjx. A giant european business. First thing you think home goods. Was that bad . No. How is tjx itself . Its good. How is europe . I dont know. Its good. When you translate, its not so good. Thats what a lot of people people dont realize that is not just a domestic retailer like home depot. A lot of people buzzing, s ps moved fewer than two points for five days. 0. 1 in five sessions. If we do a sixth today, our data, weve gone back to the 40s. We havent found a streak this long. Does that suggest poised to bust out up or down . I think we are waiting for the santa claus holiday, the santa claus rally. I dont think things are things have run up a lot. What you just described is classic consolidation. What we used to have, we run up a lot then give back 2 3 or half of it. This is positive action when you think about the fact we had such a big run. Overall earnings season turned up pretty good. I worry about ukraine. Worry about soft europe and a lot of the companies i follow worry about soft europe. People are saying that oil decline . Its not so bad. We thought it was weakness. Now we like a little bit of inflati inflation. I go through urban outfitters, its bad. Tj is good in america. Home depot, its good, but the stock has run. Is macys worth the downgrade . They are not as bullish as the stock reaction. Wells fargo downgraded on valuation. What happens if it turns out next year is a good year and you downgraded these stocks 15 numbers . Youll look silly. At the same time, you cant abandon your discipline. I would rather see that. I totally agree with that. Thats why i was surprised actavis was up yesterday. You have to come up with a reason they were going higher. Did you find it was odd . Yes. I would have expected actavis to be down yesterday as opposed to up begin the price they paid, the multiple they paid. The synergy number was larger than anticipated. He came out with a number here. Maybe an aspirational number for earnsin earnings for this company. If you hit that number, you can argue the stock is not expensive at all. Cheapest major pharmaceutical with the best growth. A lot of the quotes directly related to our interview. People admitted to not watching our interview. Are you kidding me . There it a quote in the times. There are dark corners as wall street markers even as companies spend on mergers and acquisitions they are not spending in other areas. Allergan spends a fortune and they got together and they are not cutting the r d budget that much. A lot less than what would have been cut with valeant. I think its very easy to be negative. The average is pretty good. Speaking of synergies, halliburton chairman and ceo will visit us post nine discuss his companys 39 billion acquisition of baker hughes. 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. Blackstone reached a deal to sell a Manhattan Office tower for 2. 25 billion. Sold to a venture led by a canadian Property Investor ivanhoe. It would be the second largest sale of a u. S. Office building in u. S. History. What i find interesting here is blackstone, perhaps one of the savviest buyers and selling of real estate have been doing quite a bit in the u. S. Of late. There is no doubt theyve been selling more than buying in this market. Youve got to remember they bought a lot during 2008 to 2012 under the leadership of jonathan gray. We talk about blackstone and think about private equity. Real estate is their biggest business. They have a close end Fund Business youve got to start to get returns on those funds and return money to investors. So that happens. You have prices up, 4. 5 cap rate. Thats the yield this is being bought at. Dont forget that they control hilton. Though they recently sold more hilton. That waldorf sale to the Chinese Insurance Company was a 2 cap rate. And they got 100year management contract. Pinnacle foods today 20 million shares selling. And blackstone selling again. I just think we should note it. Put it down somewhere. Blackstone is a seller of a lot of assets. They are stilling a lot of stock, taking their companies public. Its the nature of the business. Look at private equity overall and look at the activity there. This year we know its the year of m a when it comes to strategic buyer. Private equity played a minor role in buying. Theyve been doing an awful lot of selling. How often have we watched an ipo where the major seller or at some point down the road would be the private equity firm . I asked david during the break, do you think im bullish . But ideal with the reality macys should have been down last weekend. Use that as being an analog for, wait a second, that wasnt so good. Why was everyone so excited. Maybe ive got to get more excited. Maybe ive got to be less skeptical. When youre uncomfortable being long stocks, thats how it should feel. Thats how a bull market is made. Right. I think we rotate a little bit. I want to hear what halliburton has to say because oil is so crucial. When you think of those who buy and sell businesses, and that being a blackstone which has a good track record and they are looking at the return parameters, they are choosing to sell more than buying. I was trying to buy stuff for commercial purposes. What have you got going on . I cant own stock. So guys get together and we want to own got the inn, what now . Castles in ireland. Gold mines. Irs always too strong. The restaurant is doing very well. It is doing well. Are you going to expand . A group of guys are going to get together and buy a building. I find there is not a lot of value. I do that because im a businessman. Im a bit of a businessman. And a good one. Thank you. Well get cramers mad dash as we count down to the opening bell. Halliburtons chairman and ceo will join us post nine. Well hear what he has to say about the 39 billion deal to buy baker hughes. 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. Its time to get to work are finally over, fixing our longterm National Debt to help build a stronger economy. 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. 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. There it is. Seven minutes before the opening bell. Time for a mad dash on this tuesday. One of my Favorite Companies is a spinoff of pfizer. I love Animal Health stories . Animal house is plain and simple, its the most unregulated its not like the fda. If you have something that solves a pork disease, bingo. This company has been the leader in science for Animal Health. Its been great. 500 million share repurchase. I wonder if they are buying back stock because they fear now that valeant doesnt have allergan this is the ackman target. The company did put in a poison pill activated at 15 . I think that did happen when i was in china last week, but i did note it. Clearly they are in defense mode. What are ackmans intentions . Would i team up with valeant again . That seems a stretch. Right. Especially given a lot of tension in their camp and questions on the part of valeant as to whether they were well served having teamed up with mr. Ackman. They might have had a better chance of success had they not. Does it matter how well a company does . Look at the performance managements begin you here. Is that not enough . Remember the old days actavis didnt go . That is a great point. Weve seen it more often than not they come in where things are going okay if not good, but they make the argument it could be better. That seems to get a lot of traction with investors. It gives them protection on the down side. Whether its a pepsi or a dupont, both well performing stocks, they are not strongly performing as they might have been if they made better decisions. There used to be some community if you were the best performing stock in the group by pepsico. It used to be people say im not going to go after her. Shes done an amazing job. It means nothing. First being, well the realm of lets call it a 10 billion to 15 billion, the biggest market cap you can get to mega caps to companies that are even the better performers in their groups. Doesnt matter. It is incredible. A great performer gopro. Here is a company that announced a secondary. When you see this action ahead of a secondary, that means people are getting the word. You are not going to get as much stock as you thought. They go in the open market and buy more. This is a very big short squeeze. I understand the Holiday Season is great. You told us to sell it at 90. It went down. I am telling you i am giving you information this secondary looks widely oversubscribed. The shorts and gopro may get hit by the fact there is a shortage of highend gopros for Holiday Season. And the chinese are coming in and buying gopro. Unbelievable. I bet it was a big singles day. Singles like that . Sure. You want to take a lot of pictures of yourself. Halliburton chairman and ceo will join us after the opening bell. You are watching cnbc squawk on the street. Opening bell in moments on this tuesday. A lot to work with today. Home depot came out, largely seen as a beacon by some. The quarter is still very good. Good to listen to Conference Calls. The company displays a total open hand. Lowes on the way. Theres the opening bell. The s p at the top of your screen. At the big board, halliburton celebrating its 95th anniversary. Well speak with the ceo after the bell. Ultrate ultratech, used in Semiconductor Devices and l. E. D. S. Semiconductor companies have been strong. Yesterday they came in a little bit. There is a stealth rally in the Old Fashioned tech and stealth selloff in the internet social media tech. Its been, what people dont understand, people want buyback s. Xilinx is close to the top performers today. 800 million buyback along with the other one out of pinnacle, along with the secondary. Xilinx, this was the first big quarter in a long time. Ive been tough on the ceo because they missed several times. It does feel like what happened here is the companys got its footing again. Halliburton going to get some back. Up 2 . Talk to the ceo in a moment. The Conference Call was a total love fest. Would you think these guys would be pointing the table. The breakup fee is scaring people. Its such a huge amount. It was a big price. Not a big price versus july when the stock was it a 75. Electronic arts going to be up a percent. Tail winds console, upgrade cycle, a lot of the trends you hear about out of the bulls. If people just remember we said apple is a great retail . These games are selling like hot cakes. Theres no when we watch the nfl, we used to see thats when they would introduce new movies. Now its like, wow, i want tos that movie. No, that is masters of doom and death and war. How could you not be playing that game . Why arent you playing armageddon part 7 . Some consolidation in the Renewable Energy space. Sun edison up 5 . That is a hard deal to get your arms around. Solar stocks did horrendous. People dont use oil in this country except in the northeast to heat their homes. Solar panels, we are not going to put panels on our cars. No the ceo of sun edison got a strong view he shared at a robin hood conference where the price of oil may go as a result of the rise of renewables. Einhorn, a big shareholder there. I always think of Green Mountain coffee. He did that big presentation that made fun of me. The stock was half where it was. Just made fun of me. Im so used to it now, i enjoy it. We often do cite some of these hedge fund managers. They are wrong a lot more than they are right often times. Einhorn has a long track record. He was a big investor in one of those Mortgage Finance companies. The name is escaping me back in during the crisis, which i will come up with in a moment. Now is saying cocacola is stupid, Green Mountain is stupid, cramer is stupid. I look at the price of stock. Maybe i was on to something. Sun edison shares up 18 . At least thats what it was at the time. 35 billion in cash and stock. We are happy to have joining us after ringing the opening bell, halliburtons chairman and ceo dave lazar. Nice to have you here. Many have a hard time arguing with the strategic behind the deal. They are saying you are paying a big price. We are putting a Great Company together. We are not doing this transaction for next quarter, next year but the next 10, 20 years. We created a fantastic company, great people, Great Technology and a great u. S. Company that will make a lot of jobs. Another question ive got that people want to ask, why now . Its not as though this idea was foreign to you or something you might not have thought about a year ago or a year from now. The approach im told by the people who worked on the deal was five weeks ago. You got it done quickly. Why in particular choose to move at this time . Well, basically, i believe stronger is better. I dont care what the market is throwing at you at any point in time. Well be a bigger company. Well have more product lines, more technology. Well have about 140,000 employees. I dont care what the market throws at us. We are going to be in good shape. Is it about oil prices or not . It was not oil price driven. It was the right time to put the companies together. Why the right time . If you look a the expansion of the unconventionals in the u. S. , growth in the deep water and other parts of the world, National Oil Companies demanding more from the Service Companies, i thought a bigger, stronger, integrated company was what was needed to compete in this marketplace. Last week there was a Conference Call that really set this group down. Thank you for being on the show. John lindsay said over and over when it gets to 75, thats when people change their drilling budgets. We are at 75. People are looking at their drilling budgets. A fair way is between 80 and 100. What hurts the industry is the volatility. Our industry is a great adaptable industry. If prices will go somewhere and sit for a while, our customers, the Service Companies and everybody will be able to adapt and make money at that level. I like the fairway analogy. Where is the bunker . We are not in the bunker yet. What number would we be in a bunker . If i could predict oil prices were going, i wouldnt be sitting here as a ceo of halliburton, id be sitting in the bahamas sipping on a nice drink. Maybe ive drunk the koolaid of jim brown. I thought you were so technologically superior you wouldnt want to be with them. From a complementary standpoint, they did have technology we did not have. Plus they have some fantastic people. Its a talented organization. Combined with our talented people. We are putting together the industry bellwether. You talked about hiring more people. One of the things ive always been really proud of what halliburton is doing in this country, youve been one of the bigger hires in this country. If you put them together there would be less bidding. Help wanted, youre there, baker hughes is there. Why would there not be a nice break for halliburton shareholders and not as good for the workers . Both companies are growing today. We are going to hire 21,000 people just in halliburton this year. Thats a lot of jobs for americans. Not only blue collar but white collar and professionals. You add that to capability, the growth out of baker, i think it expands career opportunities. Not only for existing employees, but those we want to hire going forward. Your deal included the willing nfl to divest businesses worth 7. 5 billion in revenue, breakup fee, all to address concerns about antitrust impediments here in this country. I wonder about those National Oil Companies. In china, for example, where weve seen a great deal of antitrust opposition to deals, are you concerned that the National Oil Companies and some of these other companies are going to have antitrust concerns that are greater than we have here . Not really. We did a big reachout yesterday after we made the announcement. The feedback has been unanimous and positive. National Oil Companies in particular, they see that a stronger, more welldeveloped organization can help them in a way that neither of us could standing on our own. Unanimous. In other words, nobody had a concern . I have not heard from a single customer that does not like this deal. In terms of the asset sales that may have to take place, have you gotten a lot of inbound inquiries on some of those assets . When we announced this deal yesterday, i have a big email box. My email box filled up with people, private equity, public companies, private companies, wanting to basically look at anything that we might have to dispose of. I say lets let the process go forward with antitrust. We dont believe we are going to have to dispose with the 7. 5 billion. Whatever we do, we will. There will be very many willing buyers out there. What i was concerned about among the number things, lets say you do have to divest. You put baker hughes with halliburton. What happens if makes you so that youre back in the same conundrum . We would not have done this deal if i didnt believe we would get it through the regulatory bodies and emerge with a Company Stronger than both of us going in. We are going to get a senate vote on keystone today. Do you think it gets done . Who knows. I hope so. I probably will get approved through the senate. Whether it gets approved after that is anybodys guess. Any ramifications for a veto on that front . Not for our business. I think it would be another good solid indicator of what can happen from an energy standpoint in this country. You look at the unconventionals, oil and gas. You look at the production that the Service Companies and our operators and customers are doing here in the u. S. Its giving us energy independence. Its creating jobs. Its developing technology. All of that, i think, is fantastic for the u. S. In the long run. I think everyone should Work Together to make this beyond dream continue to come true. Come back to the stock price for a moment. It was down sharply yesterday. When investors heard about the prospects of this deal, it had moved up. The street column in the journal writes the following, your shareholders with 64 would be entitled to 7. 1 billion of synergies in present value terms. They say that doesnt cover the 8. 2 billion cash part of the deal. For halliburton, the deal benefits have to come from the stock being rewarded with a higher multiple down the line. Do you agree . This is a Great Company we are putting together. So yes, some of it comes from synergies. We didnt do the deal for the synergies. We did this deal for the people we get, the technology we get, the footprint we get. I do believe that the multiple will increase, but all of our shareholders are going to benefit from this thing. I cant be more excited about this thing. All of our shareholders i talk to yesterday, especially the long holders, they like this deal. They understand why it came together. This is not a deal for next quarter or next year. This is a company that 10, 20, 30 years from now people are going to look back on and say, man, that was a fantastic idea. What a huge amount of value its created. Some of the people tell me the ultimate goal is to get a multiple similar to or equal to that of schlumberger. That is going to be my goal. One of the things ive always loved about halliburton, you have this big buyback. Ive been recommending your stock for years. Suddenly you are issuing a lot of stock 2. People love the fact you were putting your money where your mouth is say, i dont know, youre issuing tons. This will be accretive from a cash flow standpoint one year after we close. We are committing to take the divestiture proceeds and buy back shares with that. If you take that combination, jim, i can tell you, we are laser focused on returns to shareholders. We are laser focused on getting that money back to them. We are not backing off that. You will see money coming back and youll continue to see buybacks. Want to return to the helmrick issue. Using the technology, a well might have cost 70, you are now getting it for 40 a barrel. Shouldnt that mean as you lower the cost of drilling that the oil firms will not cut back . I think if the combination of technology, the combination of efficiency we are bringing to the table has in fact reduced the days to drill a well, which means the cost to drill that well is lower. Therefore, i think as oil prices do decline, i think people will be more reluctant to give up their rigs, give up their spot in line. As i said, we are just really positive about this new company and where the u. S. Oil industry is going. Well let you go in a second. Finally to this point, the fall in oil though, isnt that taking capex budgets down, even though et may be less expensive to drill a well . It is. Volatility is bad. Finding the fairway is good. If Oil Prices Settle into a range and stay there for a while, we are an adaptable industry. Both our customers and Service Companies. We can make money just give us time to get there. If oil goes to 65, does this deal happen . It will have marginal impact on us. Thank you for joining us. Thanks, guys. Chairman and ceo of halliburton. S ps climbed up to another record 2046. Bob pisani is on the floor. Good morning. Mixed market. Energy a modest leader. Want to talk about reits. This is the final rush to get it out before thanksgiving. We have the First Chinese ipo since alibaba. This is the number two rental car service in china. Price talk was 14, priced at 12 but opened 12. 50. This deal was postponed last week. Went public a few moments ago. Show the crowd here. This is a reit formed by oak tree 18. 50. Thats in the middle of the price talk. This is the first reit since april 2014. Think of restaurants and Health Care Centers or applebees. Need yield 5. 5 . Should open shortly here. Tomorrow the biggest reit ipo, paramount is going to price 2. 3 billion. They own class a office space in new york. Nothing is pricing above the range in the last few weeks. Thats because ipo buyers are calling the shots right now. Nobody wants to overpay. Thats good for reit returns. We are in a good reit market. Retail earnings. Decent numbers. Tjx was miss on revenues. Europe was down 3 . Lowers the numbers trying to keep expectations down. Hoe depot did all right. Same store sales up 5. 2 . Dicks sporting goods, lower interest in golf, lower interest in hunting hurting them. Urban outfitters having trouble with traffic declines. Heres the retail scoreboard for earnings. 8. 5 . That is a good number. Margin 9. 8 , near a record. No deterioration. Happy birthday to the gld, the gold etf. I unveiled that ten years ago. Here i am november 18, 2004 holding up a gold bar. The world gold counts didnt want to show up that day. They were concerned about acting like they were promoting the product too much and the s. E. C. Might have a problem with them. You see how successful this has been. The vehicle has been sturdy etfs for owning gold. What happened is the prices hurt them. Gold in september 2011 was 1900, today is about 1,200. They had about 50 billion in assets. Today about 27 will. Its demand and supply hurt the gld. That etf has proven to be sturdy. You have not aged a day. Bob pisani on the board for us this morning. Lets get to the bond pits and rick santelli. Good morning. Even though the ppi number is hotter than expected on about every possible metric, it didnt have a huge impact on treasure rates. Look at a twoday chart of 10s. Launching off this 220 back in the 16th session in a row. Looks to be closing between 230 and 238. Keep that same day for boons. We close in the range of 230 to 238. Boon yields are about 1 3 of treasury yields. Their range 78 to 90 basis points. Wider. Their impact, their force keeping our rates force on the efficient relative value trade. Lets switch gears to foreign exchange. Euro at 27month low. Look at a twoday chart. Yes, the euro is up today smartly. When you put it in the context of yesterday, how much does it mean . There is the chart going back 27 months. Lets look at twoday of the pound versus the dollar. You can see its flat today. If you open the chart up, we are hovering at 15month lows versus the greenback. The last one is the dollar yen. Maybe the most aggressive. Twoday chart shows you something important. 117 two days in a row. Thats your momentum trade. Especially on a closing basis. We have to show you a sevenyear chart showing the last time we were flirting with the 117 level. Back to you. Thank you very much. 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Are you down with crestor . Ask your doctor about crestor. [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. There is an endless search trying to find stocks that havent moved and recommend them. Tex and mtw. This is nonresidential construction coming back. These have been horrible stocks. Its reacting. Goldman recommends stocks with great runs. The refiners, i highlight phillips 66 and marathon peaked. Why that is so important, when oil comes down and gasoline comes down, people use more gasoline. Its actually not that bad a call. Frankly, i like marathon very much. Its a very good company. Theyve done a lot of right things and a lot of acquisitions. Thoughts what we heard from dave . I dont want to rain on the parade, but was most significant, budgets go down in 75. What that means is the group itself, if you like this deal, you want to buy puts in the oih and go long this deal. What he said it wont affect them but at the same time, there are a lot of companies that are very dependent on the next quarter made. Obviously like hp, i urge people to read the helmwork and pane company. Halliburton was down. Actavis is up another 6 today. Talk about a stock going up. Really, i think many of us anticipated it would be flat to down. Youve got pressure from shorting it. They did a convertible offering. No stop on it. Ten times 2016 earnings. Right. 10 times aspirational numbers. Used to like going to guess was aspirational number. Until its no longer going to happen. Then what happens to the stock . Less than aspirational. Whats on mad tonight . Chuck bunch has done a remarkable job on ppg. Richard pops, dont talk to him enough. Alkermes, they have breakthrough drugs about the Central Nervous system. Anybody concerned about some of these horrible Mental Illness conditions that dont get talked about like cancer does, listen to him. He is a very thoughtful and learned man. Was it an inversion . Moved to ireland. Actavis is also an inversion. I know. I think its important to point out the journal. I was talking earlier, the journal said this wouldnt have gotten done if it was an American Company with tax rates. Tax rates is key. Adds a great deal to savings. Its important for congress to recognize that and wake up out of their slumber. Treasury rules did a lot. Under the bell. They got in early. When Indiana Jones grabs that hat from the door coming down. Exactly. We could use one for our market. This market is too high right now. 2048. See you tonight. Thank you. Mad money 6 00 p. M. Eastern time. Home Builder Sentiment at the top of the hour. They challenge us. They take us to worlds full of heroes and titans. For respawn, building the best Interactive Entertainment begins with the cloud. This is titanfall, the first multiplayer game built and run on microsoft azure. Empowering gamers around the world to interact in ways they never thought possible. This cloud turns data into excitement. This is the microsoft cloud. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. Which means its time for the volkswagen gnthendrive 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. 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. Welcome back. Home builder confidence jumps four points in november to 58 on the National Association of Home Builders monthly index. That is a surprise to the up side. The street was looking for a onepoint gain. Builders say Consumer Confidence is behind all their optimism. Increase buyer traffic after that drop in Mortgage Rates led to more signed contracts. Builders have been lowering prices a bit and offering incentives. Of the three index components, current sales rose to 62. Future sales expectations rose two points to 66 and buyer traffic jumped four points to 45, better, but the only component in the negative. Regionally confidence was up everywhere except in the midwest. Northeast is weakest. South is the strongest. New home sales in september were flat after a big downward revision for august. Housing starts didnt move for the month. Both higher than they were a year ago. We get october Housing Starts tomorrow morning at 8 30. Well see if this translates into real new construction. For more go online. Thanks, diana. Operating profits 1 a share, a penny below estimates but revenue above consensus. Samestore sales rose 5. 32 . The retailer had a 28 million expense for that data breach adding it cant estimate the total cost of the breach. Checking out shares, they are still under pressure this morning. Down about a percent. Lets bring in michael loser. Has a buy on this stock, 108 price target. What did you think of the quarter . Investors arent impressed, but the numbers look solid. The numbers were very good. Stocks down because it has had a big run into the numbers. We think that the results show that this is a business that is very well positioned for the long term. There arent many retailers putting up a combination of growth in instore traffic. Growth in online and gross Margin Expansion along with leverage. These factors were featured in home depots report. We think that continues. Many retailers would be jealous 5 samestore sales growth. What about the charge related to the hack attack . We were expecting expenses to pile up here. Were you surprised they didnt see any dip in traffic like we saw at target last year. I think it reflects two things, one the strong positioning of home depot and the way they handled the breach. Two, consumers are becoming less sensitized to these breaches and view it more as the cost of engaging in commerce in todays economy. Its an unfortunate but true reality of it. So mr. Miniere took over as ceo. How is that given the fact frank blank has one of the best reputations in terms of executors. The transition has been seamless. Craig has been in home depot for a long time. He indicated this morning on the Conference Call that he is not going to make any major changes. So we expect the performance to remain strong under his leadership. Those who wanted to quibble looked at inventories at 5. 8, faster than sales. Is that a worry . Its not a worry. We are seeing theres been disruptions across the supply chain and retail due in part to a strike on the west coast. Its always prudent to manage inventories well right now. I dont think thats an issue for home depot. The stock has run up nicely. Shares up about 20 already so far this year. Does that match where we are in this sort of bumpy housing recovery . What we see from home depot, their strengths are coupled from the results like housing turnover which suggest they can continue to generate Strong Performance independent of whats happening in housing. As consumers reinvest in this asset. I think there are a couple of ways to win here. Either the factors remain decoupled or Housing Starts to get better, in which case home depot starts to benefit. Can you extrapolate anything from this for lowes . It suggests the market is good if yous reply 150 to 200 basis point spread. Looking for 4 comp tomorrow from lowes. The results from home depot would suggest that is a reasonable expectation. Well look for those tomorrow. Thank you very much. Michael loser, ubs retail analyst on home depot. The s p 500 chalked up its 42nd record close last night. Ceos are taking advantage of higher stock prices triggering 3 trillion of m a this year, a deal volume not seen since 2007. We did this deal for the people we get, for the technology we get, for the footprint we get i do believe the multiple will increase. All our shareholders are going to benefit. I cant be more excited about this thing. All our shareholders like this deal. They understand why it came together. 10, 20 years from now people are going to say that was a fantastic idea. Good morning. What do you think of this level of deactivity. There is a high correlation how much the stock market is doing so there is a danger saying which one is driving the other. If you think where korngss are going to try to go the next year, try to keep Earnings Growth going, m a gives them an opportunity to find synergies. We have the higher level of activity than we have in 2007. Should that give people pause . We saw blackstone selling property. Some analysts saying you should stop booking profits and start on gains you made. Should people be aware we may be coming to the end at some point in the future . If you had other signals to indicate market was at a peak, yes. Right now we see solid fundamentals growth. This activity is positive. One of the reasons we hit a record and we hit one in almost every five trading sessions is ceos continue to buy back their old stock. Goldman estimates 450 billion of stock. If they are willing to do bold moves because stock price is so high, will they be as willing to buy their stocks moving forward, particularly if they have to signal that the growth is slowing in many cases . Companies have cash on the ballot sheet. Well see this is a way to return cash to investors it is a Healthy Movement you want to see in terms of liquidity and investment cash going to companies and investors and back. It was domestic driven. We thought the m a boon would be cross border. Given the Global Economy and picture, u. S. Stocks, bonds and the dollar are all in favor. Do you see this continuing through until the deal environment . I think so. We may start seeing a bigger pickup with the strength in the dollar suggest people look for bargains in europe. That composition may change. We think the u. S. Market is fairly valued. Emerging markets and japan. We had disappointing gdp number out of japan. It signals kind of an opportunity that the government is going to get more proactive, more aggressive about reforms, go for new election and that valuation should grow. What about the fact those assets you may buy abroad will be denominated in other currencies that could fall in value. It could wipe out gains for the dollar. Euro zone and japan you need to be investing on a hedge basis. Good to see you. Thank you. S p almost at 2050. We are up 200 points on the year. Right about these levels. Lets get to mary thompson. The s p may be higher, but not so tjx companies. This is the parent of t. J. Maxx, mar shauls and home goods. The stock falling after missing sales expectations and lowering full year outlook. It blamed warm weather in europe. Stock down 2. 1 . Almost the whole country seeing freezing temperatures today, as much as five feet of snow expected in some areas. States of emergency and others, its not even december yet. Well get a live report on the arctic blast. The fate of the Keystone Pipeline lies with the senate later today. What are the chances of it passing . What would the pipeline mean for the future of Energy Prices . Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. All the continental United States looking at freezing temperatures today. Some areas even expecting as much as five feet of snow. Weather channels mike bettes is live in new york where its currently 18 degrees outside and snowing. How bad is it . Hey, ill let the pictures do the talking for us. Hardly anybody out. Every now and then youll see a fourwheel drive come by or a plow. This is the traffic this morning. We had about 20 inches of snow in roughly 12 hours. It has been a really interesting event to cover, no question about that. Schools are shut down. Most of the interstates here are shut down between dunkirk and buffalo. You cant get along them on i90. Buffalo international, about 50 plus flights have been canceled. Whats funny about all this, we had 20 inches in 12 hours, likely to see another 20 inches over the next 12 hours. At some point we are going to get you out here with us. I no longer have the ability to blink. Look at this. Dont think i havent done that live shot. Look at his eyebrows. That is some good tv, mike. Well talk to you later this morning, im sure. From the Weather Channel this morning. The Democratcontrolled Senate expecting the vote improving the keystone xl oil. Paula pipeline. John harvick joins us with the latest. Landrieu has the 60th. Is it true . Well find out when they lay the votes down 6 15 this evening. She says she may have more than 60. Nobody identified that 60th vote. They dont appear to be close yet there. Lets look at what they need to make it through the senate. You need 60 votes to clear the procedural hurdle and get past the chamber and get the bill on the president s desk. Its going to take 67 votes to override the veto president obamas aides say he will cast if this gets to him. That may not be the end of the story. There may be bargaining after that. The other thing going on is the side show is the runoff, keystone battle between two politicians in washington. Republican bill cassidy, house member who pushed this measure through the house of representatives, democratic incumbent Mary Landrieu, the last democratic incumbent still alive in this wave. This is an attempt by Mary Landrieu to say i can get things done. It will be an embarrassment if she cant get that 60th vote. If she does, it is not likely to make a big difference in that race. She trails by more than 10 points from bill cassidy, very conservative state. Not quite sure this is going to make much difference. She is giving it a shot. Any longterm ramifications for a veto by the president . Basically just not, by executive action not upholding the laws the way congress is writing them . No. Vetoes are part of the game. Many times where you have two parties making a deal on something in the past, youll have a veto then youll have a deal. When president clinton signed welfare reform in 1996 and a deal with congressional republicans, he vetoed the deal twice before finally signing the third time. Now the kind of deal that the president might seek from republicans is not 100 clear. It could be something on his epa regulations on carbon emissions. It could be unrelated, funding the government or some other priority. Maybe even immigration becomes part of that discussion. Weve yet to see whether or not there is going to be an appetite for negotiations. One thing we know is the president himself is not strongly opposed to the Keystone Pipeline. He doesnt think its particularly important. He doesnt think either the economic benefits or environmental damage by themselves would be all that important. Thats where horse trading comes through. Well see what happens this evening. Thank you so much, john harwood in washington. Lets bring it home to wall street. Several companies are affected by this. Jacqui deangelis what do we need to be watching . Trans canada is the big one. Trans canada is a big name. A lot of people in the pits arent talking about the names. They are talking about what keystone approval will do to oil prices which are very depressed on the concern we have Global Supply glut here. Let me explain the two schools of thought for you. Weve got the bearish view which is this. More oil could be coming in from canada. That is going to pressure gulf coast prices. It will also pressure saudi arabia and other producers. They are the ones that are going to have to decide if they want to stay in this market and maintain share. So far they said thats very important. Will they change their tune . We have to find out if they do change their tune, we do see the prices will continue to decline. It is going to hurt them. Youve got a bullish argument that is interesting too. This is the idea bringing canadian crude into the country allows us to export it. The export ban is only on domestic product, not on the canadian product. If we start shipping canadian crude out of the country and bring north american product up to those pricing levels, thats why prices would rise and be more equal. Consider this. I want to talk about some numbers here, as well. According to citi estimates, we are exporting up to 30,000 barrels a day. That figure could go to 200,000 next year without the keystone exel crude. We are producing over 9 Million Barrels a day and taking much less in from saudi arabia. Bottom line is that keystone could be a gamechanger for the oil market. Back to you. Thank you so much. Lets get back to mary thompson. It keeps going up and up. Check out shares of apple. It is trading above the preslit 800 a share level. The company did a 71 stock split back in june. Stock is at 114. 66. Back to you. Thank you. Next on the program, black friday is just a little more than a week away. Who will be the big winners . Well find out if the Department Stores or highend names are better set up. 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. E financial noise financial noise financial noise financial noise to build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Starts at 6 30 a. M. On the vo rush hounose. Und here. But for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. Take a look at urban outfitters. As we close in on black friday, can we expect other retailers to fare better . Joining us on the phone Richard Jaffe joins us. How strong does anthropology have to be to offset urban . I think its going to be a challenge in the Fourth Quarter. Its a retailing 101 issue but not a Fourth Quarter turnaround, im afraid. It sounds like you think the namesake change there are existential questions they are dealing with. A lot is their own selfinflicted sorts of problems. Retailing issues that i think can be addressed. The appeal of the brand remains, success on the direct channel make that clear. They like the brand. 28 is a big discount from where it was. I think it lost 1 4 of its value, at least for the year. I see a lot of targets in the 39 range. How constructive can you be right now . It has a longer time frame. Weve seen urban suffer before or underperform. Its a four to six quarter time frame till they get it right. Buying the stock today is knowing you are going to have to own it six to 12 months to generate an attractive return. I think that is a reasonable time frame, but it is about 12 months. We are looking at a better than 2 estimates for 2015. As the growth is restored with the turnaround of urban coincident, we see the stock trading into the high 30s. Can you give us an update how prom potional urban and other names are being as we head into the allimportant black friday Holiday Shopping season . What we hear is consumers are being trained to accept these big discounts. Absolutely. Its been years now and the consumers understand there is value to be had, discounts that will be out there. Discounts that will grow as black friday approaches and then obviously again as we get into the Holiday Season. I dont think anyone will not have aggressive promotions beginning with black friday and into the holiday weeks. Who is going to be the deepest promoted . Those that dont have the products appealing. Urban outfitters, more than anthropology or free people. Macys does a great job shouting the loudest and preserving margins at the same time. A lot of your colleagues on the sell side even for names that have done well are starting to downgrade on valuation. In other areas, walmart, lulu, ross stores, tjx. Are you going onto the Fourth Quarter constructive or taking money off the table . Christmas gets priced into these stocks before christmas happened. For a shortterm investor, there is no question theres opportunities to trim based on rich valuations, but if you have the luxury of a longer time horizon, some of the preemment brands like tjx, lb, limited brands, macys, they have a deep moat around their businesses, continue to gain market share, longterm compelling stories to trade out of them and look to buy them back in january doesnt seem productive. Im going to own these long term. Thanks for coming to the phone, good stuff. Richard jaffe. Got what may be the final pieces of news on the fight between allergan, big ackerman actavis. Mr. Ackman telling scott he will withdraw from that special meeting that has been called for for december 18th. In other words, there will no longer be a need for a special meeting on the 18th which there was an opportunity for allergan shareholders to vote on a slate of directors to replace the existing board. He told scott he is a supporter of the actavis deal and ceo Brent Saunders who joined us here yesterday on squawk on the street and will be meeting on friday with actavis management for purposes of Due Diligence and will become a longterm shareholder. He is getting 129 a share in cash but getting a significant slug of stock in what will be this combined company for his part as we pointed out many times, mr. Ackman walks away with a significant profit, 350 million of which, 15 of which goes to his socalled partner valeant. This does appear to be the end of a lot of hostilities. Yesterday we did speak to the ceo pyatte an allergan who said he will continue the trading charges on mr. Ackman. The longrunning soap opera. Japan looked like the model for economic revital until yesterday. What does japans recession mean for the rest of the globe including europe which was looking at that country as a road map for success . Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. With japan falling into recession, calling a snap election, the direction of abenomics is looking less certain. Nikkei jumping 2 overnight. We did get better news out of germany. Sentiment has markets rallying this morning. Lets bring in rbcs chief international economist. Eric, the question with japan, if you look back since abenomics started, nikkei is up and japanese yen down almost 40 . Are those trades intact . I think they are but getting more mixed. When i step back for japan, it seems abenomics delivered part of the aspiration. These two quarters moved more quickly. Profits have soared, which speaks to the stock market. There have been some victories. Those victories seem to be fizzling a bit lately. Ive got q2 gdp which is weak and a fairly uncertain future begin reforms that arent happening now. Its important to recognize q3 gdp number was odd. My suspicion is well look back and recognize just as the u. S. Q1 figure was ultimately not reflective of the broader environment as the european q2 number wasnt reflective, im suspicious about that Third Quarter number. We see retails sales rising, trade numbers getting better. It looks like jp should be growing. That is an interesting take. Japan is the third biggest economy. We have plenty of business ties to them. Do you expect the Prime Minister to survive this confidence vote . Would you expect the bank of japan to ramp up qe, more monetary stimulus . I think weve seen the bank of japans plans for now. Its increased buying by 25 . It would be a stretch to see more near term. On the political side, i dont think many people saw the election call coming not more than a week or two out. Doesnt seem obvious abe is b popular. The object is to get backing for Deferred Sales hike. He is fairly popular in the polls. I dont think this is a threat to him. Question is can they get the sales tax pushed back . That will improve economic prospects. Will they sign that Trans PacificPartnership Deal and get structures going . Weve seen japan in theory should look good. Consumers should be spending money. Burns a hole in their pocket, wages are rising, wealth has gone up, they are just not spending that much. Its similar on the business side. Profits have soared. Weve seen competitive increase because of the yen. I think they will, but its taking longer than we thought. People wish the japanese well, they dont care what happens in the japanese economy. They are interested what happens here. One of the primary effects of what they are doing is liquidity coming in in search of yields pushing treasury yields down. As the fed looks to tighten, is it going to be concerned it lost control on Interest Rates and therefore when they raise rates, they want a reaction in the market. If they dont, rates remain in this country at a record low, are we effectively going to overinflate this economy . Is the fed going to be unable to do its job because japanese and europeans are in the way . In the margin, yes. Yields will go up less than they otherwise would have. Money flooding from europe and japan to the u. S. I dont think its a deal breaker. It Means Central Bank tightens more than it would have. It would have secret targets for the tenyear yield. Whether they are 3 or more can get there. Had it not been for qe from other people around the world or the talk of slamming Interest Rates lower, how much higher do you think the yield on the tenyear would be here . I think you could argue on the order of 75 to 100 basis points higher. Qe did happen. That is where we are right now. Doesnt look to be unwinding that quickly. Right call is central bank tightens. Yields go up. We should be celebrating that given the effects of the Housing Market and elsewhere. This is an economy highly sensitive to higher rates. Maybe this is a good thing. We ask this all the time. Given the diminished outlook from japan, europe is flirting with deflation and potentially recession, do you expect the u. S. To continue to show that it can withstand some of these global pressures . And our economy can continue to outperform as the dollar strengthens . My answer is broadly yes. I think there is enough of a positive impulse underneath the u. S. Economy to do that. It is fair the stronger dollar is a drag. Our math suggests lower oil prices, lower yields are an approximate offset. Frankly, when you step back we will see somewhat better growth from japan. Europe and pessimism has been overblown there. I dont think the International Story is as negative as it looks. Thank you. The government putting out its wholesale price for october. Steve liesman has the details. All the stuff you were talking about. We got the first installment of two important inflation indicators that will determine when the fed hikes Interest Rates. If lower Energy Prices and weaker overseas growth with an appreciating dollar begin to show up in core Inflation Numbers, some economists think it could hold off federate hikes next year. The fed is shifting. Its looking more to Inflation Numbers than employment numbers to determine when rates should rise. Ppi up more than expected. Exfood and energy up 0. 1 . Food up 1 . Energy down 3 . Trade services, an artifact of a technicality how they get that number does not show the trend. The jump does not reflect a turn in a trend. Core good prices are soft. Dollar strength and commodities point to Downside Risks into next year. Heres the global trend in inflation. Its been coming down. It was double digits in the 70s. Slowly coming down. Thats the global trend. Take a look at the u. S. And europe. This will point the way towards what happens with the federal reserve. U. S. Inflation above the european level. The european level coming steadily down. If the u. S. Numbers start looking like the european numbers, the fed could hold off maybe for next year. Stay tuned for the important Consumer PriceInflation Numbers thursday. Headline expect it to fall. The core still rising up 0. 1 . Back to you. Thanks very much, steve liesman. Yesterday a very large day for big deals, including halliburtons announced deal to acquire baker hughes. Halliburton stock price was down sharply. Earlier we had dave lesar and we asked him why the deal and why now . What baker brings us to is complementary product lines in areas we did not have a large presence. Production chemicals, artificial lift is another. From a complementary standpoint, they did have technology we did not have. Plus they have fantastic people. Its a talented organization, combined with our talented people, i think we are putting together the industry bellwether. It is their hope they will command a multiple equal to that of competitor schlumberger. Another part is the antitrust risk which in yesterdays announcement they tried to mitigate saying they are willing to sell businesses that have revenues as much as 7. 5 billion. That is a significant potential giveup for halburgtliburtohall. Are you getting interest from potential buyers . When we announced this deal yesterday, i have a big email box. My email box filled up with people, private equity, public companies, private companies, wanting to basically look at anything that we might have to dispose of. Lets let the process go forward with antitrust. We dont believe we are going to have to dispose with the 7. 5 billion. Whatever we do we will. There will be very many willing buyers out there. He seemed to indicate even with oil falling to perhaps as low as 65 a barrel, it would not have that large an impact. There is concern what if we do see a significant lurch down yet again in the price, what would it mean for the deal itself, which is going to take as much as a year to complete. Down another 1 a barrel today. When we come back, the former ceo of blackberry will join squawk alley live to talk about his ceo as power mat. Going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. Dad,thank you mom for said this oftprotecting my future. You. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Its more than the car. Er. For lotus f1 team, the Competitive Edge is the cloud. Powered by microsoft dynamics, azure, and office 365, the team can gain Real Time Insights and instantly share information around the globe. When every millisecond counts, staying competitive begins with the cloud. This is the microsoft cloud. Which means its time for the volkswagen gnthendrive 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. 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. With the s p trading at a new record high, lets check out the Health Care Sector today. One of the biggest gainers, as you can see. Mary thompson has more. Not only the biggest gainer for the day, but for the year. The sector is up 23 yeartodate. Higher as well thanks to actavis leading the way higher on its 66 billion acquisition of allergan followed by medtronic which said its fullyear revenue is coming at the upper end of its forecast. Covidien and Tenet Healthcare moving higher. A good day for what seems to be a very good year for this sector. Thanks. Lets check in with rick santelli. I would like to read i want viewers to understand who this man is. The late c. Everett coop with regard to his work monitoring the obamacare process, i have no known no one with a better grasp of whats going on in honest than bob. Nice to be here. Ill be very frank here. The second enrollment is under way. I spend my fair time not being at work monitoring things on the media in general on tv. Everything is going peachy. Is it that the medias lazy or is it too complicated or they dont care or all of the above . What do you say thus far on the second enrollment in terms of handicapping its progress and what it means . Its off to a good start. I didnt crash. Compared to last year the headline is they are doing great. These dont mean a lot. First of all, be careful to watch the numbers. The back end is so screwed up, you cant recognize the number. About 100,000 people enrolled. They cant tell us if it was all new people or people changing plans. They dont know the difference. Let me interrupt you there. When im trying to monitor enrollment, to me is the bar that low . The enrollment in the media and how its going is the fact the website hasnt crashed . Shouldnt it be all about the numbers . The real number we need to get to we believe youve got to get 3 4 of an Eligible Group to sign up for it to be sustainable. Thats enough Healthy People signing up to pay for the claims for the sick people. Theyve got to get about 15 Million People. They have about 7 Million People now the Obama Administration goal is to get to 9 million. If they get to 9 million and trumpet that and tres think that is a terrific accomplishment, they are failing. Theyve got to get to the absolute number of 15 million. Before the Insurance Company premium support program, Insurance Companies are getting money if their claims are higher than expected. That program goes away by the end of 2016. This things got to ramp up to 15 million by the end of 2016. Theyve got 100,000 this week. Stop there. We have a quick ten seconds left. With regard to Jonathan Grubers comments if you dont have a state exchange you are not getting subsidies. Will that have an impact on the ruling . King versus burwell is huge. Supporters call it the greatest existential threat to obamacare. Everybody who supports obamacare is worried about the Supreme Court ruling coming down. Thank you so much, bob, for taking the time. Sara, its all yours. Thank you, rick. The l. A. Auto show kicks off tomorrow. Weve got an inside look today. Phil lebeau is there live for us. What do you have for us . Its l. A. Which means luxury. It means convertibles and a big splash for bentley which last night unveiled two new vehicles, the grand convertible. For l. A. And for bentley, this is convertible and the and the ceo is pretty happy with the pace of sales in the luxury market here in the u. S. In the world few its challenging. We have a markets that are failing critically. And we have also some very stable markets and one of them is the United States. It is our biggest single market. We do very good over here. We also do quite good in Continental Europe and back home in great britain. You want to talk about a gorgeous vehicle they are showing here. The mulsanne speed. Look at the price tag on this high end vehicle from bentley. 333,000. 060 in 4. 8 seconds and top speed 194 miles per hour. And when we talked with him today, i was told by my customers they want a little more horsepower. So they give them 20 more horsepower. And people say arent they show vehicles . And he says no. There are people who want to drive these so they want a little more oomph behind the well. Back to you. Just before we let you go. The audis look very interesting this time around. The new audis. Yeah. And audi has really targeted the l. A. Market to be the place where they want to make the biggest splash. Last year with the a3, they had a lot of success. And were going to see that more and more with audi. This is the auto show where they want to make the biggest splash. More on that tomorrow. For the moment phil in l. A. , thank you very much. Up next, the country with the most rapid growth in entrepreneurs. It will surprise you. Next. Sheila you see this ball control . You see this right . Its 80 confidence and 64 knee brace. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. I research. I dig. And dig some trader more. Search. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. While this country may lead in entrepreneurship, the fastest growth is taking place in other parts of the world. Good morning simon. Entrepreneurship is booming around the globe and in unlikely places. At the top of the list, know surprises with the u. S. , canada and australia leading the way. But here is where it gets interesting. Despite political turmoil and economic instability, countries in the middle east and north africa are growing most rapidly year over year. And the fastest eses esest is startups. Women and young people in particular. The youth unemployment is about 24 . The study is by the entrepreneurship network. Including entrepreneurial abilities, attitudes and the Growth Potential of startups. Around the world although there is startup activity in 130e countries measured were ate 52 of capacity. Now we have a much more comprehensive look at the index at well on cnbc. Com. Surprising results there. Thank you kate. Now over to jon fortt with a look at whats next. A great show for you. Former blackberry ceo thors ten heins here is here. Uber drama. And analyst ups apple on selfies. Now selfies a reason to upgrade. More coming up. Ing me . 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. holiday mhey is playing i guess were going to need a new santa the music builds to a climax. more people are coming to audi than ever before. See why now is the best time. Audi will cover your first months payment on select models at the season of audi sales event. Visit audioffers. Com today. 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. Good morning. 8 00 a. M. At uber in san francisco, 11 00 a. M. Here on wall street. Kwauk al squawk alley is live. Welcome to squawk alley for a tuesday. Jon fortt onset, along with kayla tausche. Well be joined by kevin oleary in a couple minute. Lot going on in the world of tech. 2049 s p is exactly 200 points for year. We began the year about 200 points below these levels. Weve been looking at flattish action for the last five days. S p moved. 1 for five straight sessions. Lots argue that means were going to bust one way or the other. The question is whether up or down. Up nine sessions out of the last ten. So even