Microsofts earnings and revenue topping expectations. Results were helped by shares of its offices and server sales. Were going to talk to an analyst who covers the company at k67 40 eastern time. Amazon reported results, as well. Sales grew by a better than expected 24 which investors say bodes well for results this season. We will talk to an amazon analyst in just a few minutes, as well. Lets take a look at todays calendar. The Commerce Department will release two reports. Durable goods for september. Coming up at 10 00, we can wholesale trade inventories and Consumer Sentiment is worth talking about. Andrew, good morning. Thank you, becky. We have corporate buzz this morning, including wa joe was talking about, including twitters ipo is now pegging the valuation of that company at a modest 11 billion. They want to he avoid a repeat of facebooks troubled debut. Maybe theyre pricing it on the low end. Twitter plans to sell 70 million between 17 and 20 apiece. The stock could begin trading as soon as november 7th. So mark your calendar. In other ipo news, i dont know if this is a sad one or not. Alababa has now reportedly abandon its plan to sell shares anywhere in the near term in order to let the heat die down over its controversial class structural. St the chinese ecommerce talking, his comments leave the door open for a alibaba listing in the future. Finally, dupont announcing its going to spin off its titanium did i oxide unit within 12 to 18 months. Theres been pressure on the company to divest the volatile business. The ceo on with cramer last evening. This is the next advancement in our transformation. I think its the right thing to do for our company. Its going to create two strong companies. You know, im out with investors all the time. They have a lot of ideas about what we do well and where we could improve. And im sure theres several of them over the next few weeks who will say that this was their idea. We will call this a win for nelson peltz this morning. He disclosed a stake of about 5. 8 million shares in dupont, saying the stock was undervalued and had potential to grow. Many speculated he bought that stake to break up the company or spin off major units. And to toot our own horns, remember, we first reported his investment at cnbcs delivering alpha conference. I learned literally in the past two hours that you have just amassed and are continuing to amass a very big stake in dupont. Can you comment on that . Andrew, you asked me in the green room about ten minutes ago. If you say dupont, what comes to mind . Remember, i told you, i said, paint. And there it is. Paint. Hes the winner this morning. And nice going, mr. Peltz, if youre watching. And i asked myself, honestly, just to try to gauge that alibaba story, to try to see whether i was sad about that. And i gave it a fair shot. Seriously, i asked myself objectively. You know, i listened to what you said. I said do i feel sad . I do not feel sad about that. You said you dont know whether to feel sad about it or not. I dug deep, deep, deep, deep, looking for some sadness. Yeah. Nothing. Im sorry. Im sorry to hear that. Im sorry to hear that. I dont feel anything. I feel i think the alibaba people might be sad. I am numb. I guess. Because did you feel any sadness . You know why i have such emotion about it . Because i was just in hong kong and that was the issue. Thats your excuse, okay. And everyone is desperate for alibaba the crown except the jpmorgan deal was the issue. All right. Thank you, becky. Its friday. You flew to hong kong and back. You forget. Lets check on markets. Go the god forebit theyre down. Theyre up. Because i dont need any more sadness this morning. Andrew did fly to hong kong and back. That would make me sad. Youre one of our favorites. Anyway, there is the craziest stuff times. There is the dow. What a day yesterday. No reason. No rhyme. It must be earnings or something. And then you saw amazon come out, just like was said, it lost money. And everyone was fine. Revenue up 24 . That is not sad. That is a good story. And theres its 97 on crude right now. Lets look at the tenyear, which has been under 2. 5. Now its over 2. 5. But you have to call that kind of quiet. Weve got to get this euro down quick. Are you planning that trip, still . If there will be one, it will be in the summer. But anything over 1. 30 or 1. 35 is, you know puerto vallarta, here we go. Disney. Go down to orlando. Universal studioses is always a great destination. It is. Either one. The one in orlando or out in ron meyer i think theyre owned by some friends of ours. Oh, i always forget about that. Theres gold down 8. At 1,342. Time for the Global Markets report. It helps to check the rest of the globe. Ross, were in charge here. Our markets are doing pretty well. Hopefully you got the message. I see some red, but i see some green above your head. How are the markets over there this morning . Well, you have to remember, joe, weve been up ten out of the last 11 sessions here in europe. So if were a little red today, its against the trend of what has been a steadily rising European Equity session so far for the month, really. Yeah, decliners currently outpacing advancers by around about a ratio of 63, Something Like that on the dow jones stoxx. Had quite a bit of data out today, as well been the ftse 100 has been fairly flat, in modest positive territory up 11 points at the moment. We had the export of gdp in the uk. Came up 1. 5 percent on the year. This quarter in 2012, up 0. 8 quarter on quarter. That is the strongest year on year growth since the First Quarter of 2011. Construction doing fairly well because the government has a help to buy mortgage scheme going on at the moment. Xetra dax is fairly flat. We had the first tick down in the Ifo Business Climate index for the first time in six months today. So just ties in with the pmis yesterday. Slightly weaker economy than we might have thought, although still expanding, of course. The cac 40 is down 0. 2 . French footballers are going on strike in november to complain about the high rate of tax, 75 top rate of tax. So the entire french football league, the top Division Going on strike in protests against that. The french football fans wont be able to watch any games for a week or so. And the ftse mid down about 1 , as well. We mentioned the strength of the euro. Today we had a lot more. Renault came out down 2. 35 today. Revenue had suffered from the depreciation of several emerging market currencies against the euro. Axa, the insurer, down 2 today. Blaming the strong euro and seasonal weakness in Life Insurance for a slowdown in its Earnings Growth today. And saint gobain, the glassmaker, stock is up 4. 5 , but it stalked about the stifling currently impact and it said a 1. 4 fall in sales would have been a positive figure were it not for the strength of the euro. Though investors have looked past that. The question is are they just blaming the euro for things that they could be doing better or not . But they are all talking about it. And this level up near 1. 38 that weve been, its record high for the two years is higher than the level of 1. 37 when the ecb were talking about it back in february. And they havent talk about it at all at these sort of levels. Well keep our eyes on that. For now, back to you. All right, ross, thank you. They dont like it. I dont like it. We dont why cant we all get together on this and change it, then . Nobody likes this euro up where it is. Why donts we just pick a level we think it should trade at and fix it . Jimmy carter tried that. Nixon tried wage price control. Yeah. What does Angela Merkel have to say about this . And did you see the great response from the nsa yesterday that, yeah, okay, weve done some we, like every other country, listen to whats going on. And they said were not going to comment on this particular situation, but like every other major when you get caught do they lisp to our phone calls . Do the brits listen you think everybody is listening to everybody . I think the expectation is the United States might be better at it, too. When you get caught by somebody doing this, thats a bad situation, raises problems with france, germany, brazil. France has their own problem. Theyre not even going to have any soccer because of their 110 marginal rate, which works in the 50s, as you pointed out. Anyway, amazon. Com reporting a Third Quarter loss of 9 cents a share. That was in line with estimates. Revenue topped 17 billion and that was ahead of expectations. And as the journal says, were going to talk to tom forte. Tom, the journal first line, for amazon inc, investors, a loss is just part of doing business. Every quarter, the company spends more than it takes in in sales, but it is building a huge company that will be profitable some day. Is that the idea . Yeah. The idea is that theyre taking a ton of market share. If you look at their investments, theyre investing in Fulfillment Centers, theyre investing for content amazon video. Theyre investing in servers for their Amazon Web Services. So theyre taking market shares. Sales were better than expected. Stockses will be up today. It is up today. Jeff basos, dont you think we just defer to him at this point . Wouldnt you, with money . Here it is, jeff, do you figure out what you need to you know, i wasnt really asking for that. Hes iconic. Hes if he wants to use some of my money to expand the business, i would say, give it back to me in a couple of years and ill trust you to use it between now and then. Thats not a bad idea, is it . Definitely he manages the business for the longterm and hes clearly focused on getting market share. I mean, you look and basically they have a threepronged approach. Fast delivery, low prices, thats their strategy. They keep advancing it. Its working very well. But why does everybody believe one day in the future theres going to be this moment where hes going to decide to flip the switch and when he flips the switch it actually works . The reason we believe that is in 2004, they hit their High Water Mark and their csio margin of 7. 1 . If you look at the recent announcement, you have the buy 35 worth of merchandise to get free twoday shipping. So fulfillment costs could trend down over time. They have a lot of levers they can pull. Increasing third part unit sales is high margin revenue for amazon. So the idea that over time they could return to that 7 rate from 2004. You look at these numbers. In a world where everybody complains about Revenue Growth, did you see these numbers are, like, ridiculous. Almost 17 billion no, over 17 billion. Last year, 13. 8. And in the United States, sales up 30 to 9. 5. I mean, 30 . To billions and billions and billions. Look, i they can flip the switch. They can flip the switch. Would it do it if know now, for example, prime is no longer a it used to be you could order a toothbrush and you didnt have to care. They would ship it to you and life is great. But now youre saying 35 is the minimum now . 35 is the minimum. But if youre a prime member, theres no minimum. Well, no, now amazon has somethi something. I think i recently joined to get a toothbrush. Thats how this toothbrush story came out. You actually had to leave your house. Yes. But over time, it may be theres certain items that you might have gotten from amazon that you wont in future. But maybe thats a good thing for investors. They dont want to pay to send you a toothbrush, shipping freight, right . Yes. But that goes to the revenue number, which is the revenue wont, therefore, be as high. Right, tom . Theyre very data driven firms. Im sure when they made the decision to increase the hurdle rate to 35, they didnt anticipate a significant pullback in volume. Tom, if there was a transition where revenue went down, but profitability were to increase or margins were to increase as a result, how would wall street react to that . You know, you really saw that in the forty quarter of last year. They reported their first adjusted sales growth of less than 30 in Something Like two years and a 4. 9 north american operating margin. And the stock slowed, i would say. So if you look at what determines their share price on a shortterm basis, its definitely sales growth. And number two would be unit growth. So in that scenario, becky, where you had improving margins and flowing sales, the stock may not perform quite as well. Tom, real quick, how much built into the stock is this idea that they are going to one day take over the living room, meaning aws, amazon web service. Smartphones. Streaming. The whole thing. If you look at the revenue market, the Fourth Quarter, theyre going to sell amazon fires. You have amazon, apple trying to get in there. I think theyre going to expand their hardware efforts and it makes it so much easier to buy on amazon and you dont have to worry about paying apple or anyone else. Thats bizarre, though. Seems to me i remember when Hewlett Packard decided it was going to have all these consumer devices. And compaq for a while. Are you sure . Theyre good at this. Are you sure they can develop a set top box . Look at what theyre doing with the next generation of kindle fire devices, with the may day button, making it very easy for you to access customer service. I think they have a lot of things they can do in hardware to differentiate themselves. All right. This fun to even consider. I hope it doesnt turn into a sad story some day. I just dont think i could take that at this point, tom. Anyway, tom, thank you. Appreciate your time this morning. I dont need it. I dont need it at this point in my life. Just be happy. Okay. Weve got a lot coming up this morning, including is the clock to blame for productivity issues in spain . A little tease. But first, squawk news, the st. Louis cardinals have earned have evened now the world series at a game apiece. The cards beat the red sox 42 in boston last night. And thursday night football, the tampa bay buccaneers, they lost again, find themselves 07 for the seventh time in the teams checkered history. Cam newton threw two touchdown passes and ran for another score to secure the win with for the carolina panthers. The final, 3113. But first, the weekend forecast coming from the weather channels julie martin. Julie. Hey there, good morning. Well, the big story, you know that crisp, cool fall air, millions of us are going to be wishing we had some of that because its getting replaced by winter. An arctic blast across a big section of the country. In fact, you see here what im talking about. Weve got cool air coming from the midwest into the deep south over the next few days. And were looking at temperatures even below freezing for many of us. Rain and snow around the great lakes today. Some rain in places like new mexico and foggy conditions here in the Pacific Northwest for seattle into portland this morning. Taking a look at the weekend, cool continuing again. Across the deep south. Cool air coming in from canada. Were looking at temperatures now that are going to be more like late november. So more like thanksgiving instead of halloween. That includes here in the deep south where were looking at 30s across the region this morning. 37 in atlanta for tomorrow morning. 31 in nashville. Well be going below freezing. We have those freeze warnings and advisories up. Sunday morning, another very cold one here in the south, as well. Only 41 in savannah, georgia, and 43 in atlanta. Keep in mind, a lot of these southern cities right lane going to climb out of the 50s through the weekend. More squawk box when we come back back. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Time now for the executive edge. Sh our daily segment focused on giving Business Leaders a leg up. A lawsuit against silicone valley hiring practices has been given class action status. In 2011 been five Software Engineers sued adobe, intel, apple and google among others regarding hiring practices. It alleged a broad conspiracy by not posting each others employees. Some of this was started based on emails back and forth between steve jobs and eric schmidt. This idea, by the way, more broadly has been true of silicone valley for a long time, or at least the contention that there is almost a cabal that five, ten Venture Capital firms and five or ten major employers in town. This has fwon on or theres been questions about its weird to say that thats improper business. What youre really saying is, hey, wait a second. Youre not stealing each others employees. Its not fair that youre not poaching each others thats weird to say theres going to be some legal action youre subject to because youre not in there stealing other poems employees. That would be bad for us. If there was no other business network, that would be bad. And then what would the employees do . They would have no other opportunities. No resource. You know, there have been some pretty active packages put out to lure employees back. Remember when dan loeb sent an email that was published to ken griffin, when he was stealing his employees and how they almost had a truce. Is that a good thing or a bad thing for them to call each other and say, dont take my people . Its like when do you remember when you buy an Airline Ticket and every air line, there were like 12 of them, 3. 89. 15. Its weird. Wow, just what a coincidence. Yeah. So its probably bad if all these people get together and say dont hire, keep everyone. And lights like any cartel. Anyway, the fda is now recommending tightening access to hydrocodone painkillers. Regulators want the drugs reclassified as more restrictive products. That would make it harder to obtain both by addicts and legitimate patiences. Emergency room visits were like 500,000 a few years ago. And that had doubled. A serious problem. Do you remember when we had barry meyer come out here and oh, he wasnt here. He was from new york. He was talking about all these drugs. Openaiates are so addictive. Whatever reason its prescribed in the first place and t