Big premarket moves on mixed results from cat, gm and mcdonalds. Global volatility, a common theme. Apple cut its spending forecast by about 1 billion. Well explain why. Qualcomm looking for 1 billion in cost cuts by trimming workforce by 15 . First up caterpillar shares taking a hit on a quarterly miss hurt in part by weakness in mining and construction in brazil and china. Cats lowering their full guidance. Doug oberhelman did talk about it. At some point, the economy will stabilize and business will pick up. It was too whose in 2012 and too slow right now. Somewhere in between is where we will be. Until that happens we have caught in this period where we have to hunker down and do everything internally day to day. Sales down in every region including north america. Oil and gas not helping. They lowered the revenue forecast for the year. They keep the adjusted eps forecast. He is a very nice man. Thats the key. He is a very nice man. You believe this is about him. Whats your main head wind . He said it is the fact that we have 2 to 2. 5 instead of 3 and 3. 5. I dont know if anyone can run the numbers and get better. They represent exactly whats wrong in the world right now. They are china, mining minerals, oil and gas. What bothered me here was the Construction Industry was so bad in the United States. That was one thing a lot of other people were saying is pretty good. There isnt a line that i can find in this quarter that i liked other than the Balance Sheet is flush, not a line not a line not even a milligram of hair that i could find that i liked about this. Were looking for 497 this year. Last year was 638. 2012 was 890. Eps has been halved in about three kreers. They made the worst acquisition in china. They bought coal equipment at the absolute top. This is a Great American company that has to pull out of this funk and figure out how to make money in china. Unilever made money in china. Cocacola wasnt a disaster. Dove soap and cocacola, people are still going to do that. Nike made money in china. Heavy equipment but in the wrong place. All the companies warned on china, uts, illinois tool whirlpool, ibm and then you have this leaked dalio memo that says there is no place safe to invest in china and they have turned tail on them. Two weeks ago, he was saying it was fine. It was interesting to read their take. Now, they have become a lot more negative. I dont like that. I dont like that. When it was just beginning to fall apart, they liked it. I dont know. We can talk all we want about how bad the chinese stock market is. It is in a bull market right now. We can sit there and say the communist party cant manipulate. They shoot people and miss the quarter. Take a look at the white collar punishments that they offer. Everyone has written off china. I read his report about china when everybody hated china. He was complacent. I dont know. I think china is bad. I think china is slowing. In the end, i did a piece on the whole top of my show on mad money is that china is being fingered for everything qualcomm caterpillar, auto. Gm numbers were surprisingly better but that didnt include the crash and everybody is worried about china and the crash. I am pulling back. With when everybody worries about something its a bad situation. I understand. It is not a consumerled economy. We have always wondered whether the impact of some of these individual investigators losing a lot of money would be felt. They are talking psychologically, it will have more of an impact. The overriding impact of a slowdown in the chinese economy in general, which is what 70 export led, that is still a real possibility, is it not . Have we looked at the brand . Has that been climbing . Did anybody look that caterpillar is at an amazing low. It is not like we just woke up. Tim cook the ceo of apple said there could be speed bumps. I dont think china is good. The actual growth is no better than our country. He said the worry is probably overstated. Isnt it incredible that the man is adding more market cap. He just woke up and fell off a turnip truck. Everyone in the world is worried. Dow chemical had very good china numbers. I dont know how that is possible. Honeywell had very good china numbers. I have Kevin Johnson, not Howard Schultz. Everyone is worried about china just after it crashed. What im saying is china is a problem. If you sell like kruger couldnt sell in china. Google up yesterday, not in china. Chipotle. The world is separated between kpgs companies that dont do business with china, lamar and wells fargo, and now you do. Now, you tell me when Las Vegas Sands numbers were really good now, you tell me i should worry about china. Now when it is up to 1100 i should worry about china. Now . Well, thats really helpful. Well you never know. It is helpful, really helpful. If kevin plank is worried about china, im worried about china. Could that guy be more right. Who does he think is going to win for president . Anybody he endorses wins. Maybe he takes a long shot. Maybe kasich or rubio. Did want to get to some mna news that has been circulating. I told you there was progress between the talks between anthem and cigna. There is a high likelihood that the two companies will announce a deal under which anthem will apply for cigna tomorrow. Dont expect anything today. Tomorrow. The boards people close to the situation tell me they are expected to meet to approve a deal under which anthem would buy cigna for a price tag of 188 a share made up of 55 in cash and 45 in the equity of anthem. Given that and anthems move as of now, well see what the actual price tag was. Thats how they put it on paper. The two companies were very close to a deal a couple of weeks ago when i said progress was being made. They had largely doubled all of the social issues that proved to be an early impediment. They had talks quite some time ago. This he broke down. Anthem decided to come with a bear hug on a saturday. It was afraid cigna was going to be able to buy etna. Cigna did participate but ultimately failed to be the winner there, failed to be the winner for humana when etna stepped in and was able to acquire that company. All of this consolidation taking place and will be viewed very carefully by the antitrust regulators. Over the last couple of weeks, im told there were a number of other issues that came up whether they be compensationrelated or retentionrelated, governancerelated. David cordani is expected to stay at the company. Again, they are nearing a deal which will bring very significant consolidation to this hmo sector. Would it go from 5 to 4 or 5 to 3 . Now, it appears it will be going from 5 to 3. Most importantly, these two deals will be viewed within the same window meaning they will view one against the other. Perhaps approving both perhaps approving one or perhaps saying no to both. That is etnas accusicion of humana. Cigna shares are up. There was reporting yesterday on this. I was moving towards it. The journal reported some things. 55 cash 45 stock. Up from their previous offer, the bear hug, which was worth 184. Not a big move up here in price. Ta deal was 31 or 32 in cash. Apparently cigna wanted more stock. Cigna Share Holders will be significant owners of the combined company. That is some of the best reporting i have ever heard. That is unbelievable. Congratulations. Thanks. Most importantly, i think is antitrust. Antitrust figures so prominently in deals that are out there. Not my reporting at all. We have significant reporting that indicates the government may not be happy with the competitive quality of those that would buy the divested assets. You are not giving us a competitor that is a real competitor. The piece that was reported may not have been that right. Thats a different angle. I didnt know that. To go back again to the cigna. If they can get away with this if the Justice Department allows this, everybodys rates would go higher. I hope they understand this. Look at southwest airlines. They will look at it closely. They will dispute that. When they joined us the two ceos disputed that. Hertz didnt dispute it but they didnt have any idea what the hell they were doing. The Justice Department has changed since the airlines. Now, look. They could argue that maybe it is true for a couple of years. As someone who used to pit oxford against United Health for 300 workers. I would buy cigna right here if they can get this. I would buy it right here. The possibility exists that neither deal will happen. Thats why when you are playing risk guard, the spread is going to be very large. These are going to take a very long to be approved until the end of next year. Did you see the spread on williams extraordinary . Ete, these Pipeline Companies keep collapsing. That is one firm being proekenproekbroken by people shooting against it. You look at that index. That is ugly. One hedge fund knows that their aim is to blow that firm up and buy those stocks beginning today. When that firm is gun liquidating, you are getting yields that you wouldnt believe. You have to wait until the blowout, until we all see it. We have a lot of earnings to get to. We will get that. Everything from gm mcdonalds, 3 m, underarmor. Pulte, duncan and texan and that exclusive with campbells ceo, den denise morrison. We mentioned jobless claims coming in at 255, the lowest since 1973. Back in just a moment. Record north american profits this morning. The strength came from truck sales and believe it or not, relatively Strong Performance in china. We had record in china, 503 million. Margins at 10. 2. Some are looking at how you are boosting margins in a market where volumes are coming in and how long that can last. My Charitable Trust owns it. This is one of the dumbest things i have done by buying it. I was impressed by europe. This was a very fine quarter. I am still trying to figure out i just dont know how much g. M. s numbers were going to be impacted next quarter by the crash in china. All these people are so woreried about china now. I am amazed by europe not just china. Margins 10. 5. Everybody insists on staying in venezuela. Why, i dont know. This was a much better than expected quarter. The shorts are going to have to scramble. 7 gain. There is mcdonalds. We talked about that earlier today. 126 beats 123. Revenue down 10. Global coming in. 7. It looks like they dont give monthly guidance anymore. They are looking for global costs to be positive. Again, i am a believer in this. I just feel the new guy has come in. The Third Quarter is the key. He gave guidance. I think you can turn around with the simplified menu. He has to build a lilt program, which i know he is going to do. He has to become much more mobile, which i know he is going to do. He turned europe he will turn mcdonalds. The stock is a buy, even at 1. 50. 13 cents. 4 x hit. People talked about a relatively low tax rate. It has been a while since they have beat. A comment on some of the featured products did not achieve the expected consumer response. He was very abject about that. You either believe in it or you dont. Im a believer. He recognized he came in with a real bad hand. He is augmenting that hand. He is throwing in the bad cards and trying to get some good ones. Will he draw an ace or a king . He has the possibility of drawing three of a kind. He can do that. Duncan in this universe 50 cents beats by 2 cents. Comps up and starbucks tonight. And Kevin Johnson on tonight, number two at starbucks. He will be doing the call. Ill have that live tonight. Die think that starbucks has had a nonstop run unlike nike right in the quarter. They have been the great Growth Stocks starbucks and nike. Only 8 billion away from mcdonalds. Howard schultz is one of the most competitive people i have ever met. I will send him an email at 4 30. At 4 31 he is back. I have to set the alarm to keep up with that guy. Raising prices when coffee futures have come in 20 year on year. Thats hard to do. He like chipotle they are very committed to the employees. There are costs to try to keeping the best employees around. Starbucks, we can say, they are gouging. I say no. I say they are rewarding their baristas in a way that makes it so they wont leave. We know that training is the single biggest weight loss. I think mcmillan is finding that out at walmart. You have to train fewer people if they leave. Thats what Howard Schultz has done. He has done it right. That costs money. This new york panel recommending a 15 minimum wage for fast food workers in new york state. Miguels quarter is not going to be as great. I dont think your employees are have to worry. We will get cramers mad dash and take another look at the proo he premarket. We have still just scratched the surface. A lot more squawk on the street from the nyc straight ahead. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. When youre not confident your companys data is secure the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . We have had very constructive discussions with this company, met with them multiple times. We are convinced the board and management recognize their issues and convinced they are try tog do the right things. We are optimistic where they are going to. We have advocated a number of steps, not just a splittup. What we think they ought to do is just a transparent review of the businesses and determine whether or not it makes sense to do either a partial or a full split. Jana partners took a more than 2 billion position in qualcomm. You heard what he was arguing for, not necessarily saying do a split but investigate whether in fact it would make sense to do a split. His numbers were quite good. Yesterday, of course after the Bell Qualcomm announces a series of moves, including not just a review of the structure of the company and whether it would make sense. They will tell us by the end of the year. Putting two members, basically, new members on the board recommended by jana. They will agree to a third when another member steps down. They also institute significant costcutting. 1. 4 billion overall and 1. 1 in actual costs. The other 300 million comes from stockbased compensation, significant reductions in workforce. We are talking 15 of the workforce. Capital return program continues. They put in a 10 million buy back. All of which i say to you, okay this is not looking so good and the earnings werent so good and the guidance wasnt. This was very complicated, a lot of moving parts. In the end, they have the wrong products. Samsung went away from them. They were quite weak in china. Some will say, wait a second this is, again, a china story. I will not disagree with that. This has been highend chinese phones. They are not there. Not that businesses are not good. It is actual earnings versus governance. In the end, the business isnt that strong. Thats the problem. San disc had a lot to say about the analyst that really got it right. They dont have the right products. They lost big customers. China is weak for them. I think thats a very very important when you have romachof who hate the san disc at the high. You can make money in parts. They are good in getting the acquisition away from apple. They are hurt by china in a way that it was like shuffling. That wouldnt be fair. Too much cash two new guys good. Im not a buyer but to be a seller here would be a mistake. There you heard it on qualcomm. So many more to get to this morning. Stay with us. We have the opening bell coming up next. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . 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We are going to keep our eye on that post when it opens for trading. Sales in every region negative including north america, where oil and gas more than offset the strength of construction in this country. Brazil too. Brazil unemployment now, 69. They have been the untold story of how bad this business has been. If you do business in brazil your business is down so dramatically. People should focus more. The world quarterly would have been unbelievable if it was not for brazil. Whirlpool, u. S. Construction, fantastic. I think brazil is another thing we have to keep on the radar screen. Russia is bad. Brazils brick is just hard. There is an i in it and it is india. Texas based tier read celebrating its listing today. An Online Banking platform for small bank lending celebrating its ipo. Ferrari ferrari lifting for an ipo. No symbol given. Everything he does is exciting. He is the lone one from fiat. He is a very forwardthinking guy. Fiat and unilever are both the two stars in their different businesses. Remember. They are not headquartered here. They are beneficiaries of the strong freaking dollar. The super freaking dollar. Got it. Some of these san disc is up 15 . 66 cents. The analyst, i want to praise roman shaw. When everyone loved it at 105, he d