That happened as he walked through times square during that demonstration. President obama spoke from the white house asking protesters to remain peaceful. First and foremost, we are a nation built on the rule of law. And so we need to accept that this decision was the grand jurys to make. There are americans who agree with it and there are americans who are deeply disappointed, even angry. Its an understandable reaction. But i join michaels parents in asking anyone who protests this decision to do so peacefully. We will have a live report from ferguson in just a moment. Andrew, over to you. Here are some other major stories to watch this morning. A number of economic reports coming out. 8 30 eastern time, were going to get a rescission to Third Quarter gdp. Just about a half hour later, the s p 500 caseshiller home index will come out. At 10 00 a. M. , we have Consumer Confidence and richmond survey. Were also paying attention to this thursdays opec meeting. Lets take a look at that screen so you can see whats going on there. Wti crude at 76. 06. Lets take a quick look at whats going on in the futures ahead of the markets this morning. Dow could open up higher, 20 points. S p 500 about 2. 5 points higher and the nasdaq up about 5 points. Joe, as i was walking out of my apartment this morning, a fella came up to me and said what just happened in ferguson, do you think theres going to be riots and do you think its going to impact the markets today . This was at 5 00 in the morning and i thought, i hadnt thought that through. Im looking at the futures now thinking thats not necessarily going to be the case, but no. They were on peoples minds and there was the when there was trouble, you know, in ferguson a couple months ago, obviously, it didnt. But you never, you know, last night watching it and i think everyone was, you just wonder if you can find that. I know there were some crowds gathered in other cities around the world and or around the country. But scott cohen is back into action here to send him to ferg standard operating procedure. And he is joining us now with a live report. Good morning, scott. Good morning, joe. We pulled back by about half a mile from where we spent a long and unsettled night. And ill give you a little bit of the scene there. Thats down about half a mile there, Michael Browns neighborhood. Michael brown, the teenager whose Fatal Shooting began all this. We can show you the scene from above. There are still fires burning here. They are still trying to get things under control. Its gotten quieter in the last few hours, but as i said, a very long and very eventful night that all began to unfold around 9 00 local time after the announcement that the grand jury had decided not to indict darren wilson, the Police Officer who shot Michael Brown, saying there was no probable cause. Things began to develop, we began to see crowds gathering on west florison avenue in front of the stores and directly across the street from where we were which was just around the block from where the shooting occurred back in august. We saw several fires break out, businesses that were torched after protesters went in and looted businesses, even though they were boarded up. It was quite a scene to see. At one point, as i said, all of those fires burning across the street from us and gunfire, police said it was automatic gunfire. Some of it. And none of it fired by the police. A few hours ago, local authorities emerged from it all to describe the scene. I know that theres at least a dozen buildings that have been set on fire. Most of those are total losses. I know that i have two st. Louis county police cars that are basically melted just to the north of suburban. At last count, 29 people arrested, remarkably despite all of that gunfire, which of which we heard close by, nobody was shot and, thus far, no serious injured reported. We were of course keeping tabs on it. As daylight comes to ferguson, well learn a lot more about exactly what happened overnight. Back to you. Okay, scott, thank you for that report. Were going to check on the Market Reaction now. If there would be any to be expected. Lets look at the futures this morning. We have been setting a series of additional kind of a slow, steady fashion, a real meltup yet, but 21 is points now. Let me get where are we on the dow . Were getting closer to that number, are we not . 178 and change. You can see yesterdays close. Watch, markets are interesting in that on any given day, one or two might be up, the other one might be down. The nasdaq, even the s p not lately, though. And there is whats happening right now in the asian markets. Shanghai doing the best there, obviously. Take a quick look at europe. Might be more important to us. That is pretty friendly, green arrows up as far as that goes. I paid 2. 96 for premium today. 2. 65 for regular. So there you can see crude at 76. The european vacation, chevy chase, looking strong. Lets look at the tenyear first. Back below 2. 30. Sometimes it goes the other way. 1. 24 on the euro as we die verge our Central Bank Goes one way and the rest of the world seems to be going the other. Finally, gold is back above 1200 an ounce at 1,201. Walmarts chief merchandises officer is reportedly expected to announce his departure from the retailer just days before black friday. Duncan mac naugthon joined the company from chief operations in canada. He was considered a potential successor to lead walmart u. S. When bill simon announced his resignation in july. You have to watch apple. Making a run at a 700 billion market cap. The stock up 20 since the middle of the last month. If youre carl icahn and his son, you have to be very happy about all this. That stock up now 48 yeartodate. The oneyear return up 60 . Sips march 2009 bottom, shares of apple up 900 . A positive start to the week with broader markets enjoying a gentle rally. So hank smith says that this is the most hated bull market out there. And he joins us right now, he is the chief Investment Officer at haverford trust. Covering the economic angle for us, chris rupke from total mitsubishi ufj. What do you think a hated bull market, hank . So few investors have participated in this bull market. You have had net outflows this year that offset the net inflows from last year. But from a broader perspective, over the past seven years, youve had some 650 billion coming out of equity mutual funds and this 1. 3, 4 trillion dollars going into bond funds. Anywhere buying a bond fund today is not making a statement of optimism, confidence, exuberance, eye for ya, greed. Theyre mistaking a statement that we are willing to earn next to nothing so that we dont lose money. And that is not indicative of a any kind of greed or any type of market top here. What does that tell you about how long you think this bull market has left to run . Well, look, this could be a a very long bull market. We believe the march 09 low was a generational low akin to the august 82 low, which was a generational low. Now, i know brian yesterday said we could be in a 20year bull market. Only time will tell. But there is precedence for it because we did have a very long secular bull market in the 80s and 90s. And we could well be looking at that now provided that we continue this low but steady growth that doesnt create excesses. Chris, the questions along the way have to do with whats happening with the economy. Is the u. S. Really recovering . We have a lot of numbers coming this week. What are you on the lookout for . Gdp this morning, of course. There is something that seems to be going on. If youre bearish at all, if your glass is half empty all the time, you have to be concerned about the strength of the dollar in terms of what it means for Economic Growth going forward. Because we replayed this before. The dollar was very strong from mid 2011 to mid 2012. It dropped from, like, 1. 45, 1. 50 down to 1. 20. Its falling again, the dollar, from 1. 40. The dollar is rising, euro is dropping lately. But its the run now is from may down to currently. All right. It is early in the morning. I just want to make sure i have you clear for people who werent paying attention. You are saying if you were bearish, if you were somebody who does not believe in this strong u. S. Economy at this point, you may be disappointed because of the dollar. I well, i dont want to be too bearish, but the only headwind out there, really, is the strong dollar. Weve already seen exports drop. Were going to get gdp this morning for the Third Quarter. And the reason it might be revised down is because exports came off a little bit in september. So that is about the only headwind. Huge issue is going to be jobless claims, though. Thursday well be looking at though numbers. How do you think the trend is coming on that . I think were doing pretty good right now. Im just a little bit concerned about business cap ex, durable goods orders out in a couple days. Well see whats going on there. Because its the strength of the dollar story. When the dollar went up by 2011, 2012, it kind of slowed production, orders fell for a bis bit, exports fell. Thats about the only guessing game here. But everybody else looks fantastic. The labor market looks fantastic. I dont know what the fed is doing. Theyve kind of really painted themselves into a corner here. Here, theyre telling us 5. 1 to 5. 4 unemployment rate. When it gets there, its 5. 8, its that close. When it gets there, they have to have the fed funds rate at 2. 25 to 3. 5 . That means they have to start already. What do you think happens to convince more investors to jump on this . What starts the beginning of capitulation for people who have not been involved . Well, look. I think obviously since the beginning of 2013 and into 14, youve clearly had more confidence coming back into the market. If you look at the Market Action this year, all of the pullbacks have been relatively brief and relatively shallow. Even october, we get to that correction level. So i think investors are looking for any opportunity to get into the market and that is why you have that type of that type of action. So looking forward, i think were entering a phase in the economy that youre going to a 3 growth from what has been a 2 world that has characterized this expansion for the last four years. And i think thats going to help bring more confidence and bring more investors back into the market. Do you think its going to do that because without any more setbacks . In other words, if you missed your opportunity in late september or early october, that was it . Well, no. I think youre still going to get pullbacks and, look, eventually we have to have a correction, right . Correction res healthy, theyre normal. You usually have one or two corrections each year within a bull market. We havent had one in over three years the were coming on 3 1 2 years with we just had one. It was 9. 9 . What do you think, hank . 9. 9 on the s p, thats not a correction . Really . That doesnt counsel becausite was 0. 1 away from being a stop with the three years. We had a correction. Just say, okay, it was a correction, we need one. You cant do that for me . They dont teach you that at haverford . Ill give you the correction but, still, you have to admit it was very brief. Thank you. Thank you. And actually, people do say it didnt ring out the complacency as much as it really should have, right . Go back to the middle of october and the fear level was ferocious. Oh, was it really . I think we all thought we were going to every time someone sneezed on a plane, we were thinking of ebola. That was definitely unsettled for stock markets and everything else. I think it had more to do with that, probably. Sorry. I was doing something and then i heard you. Go back to whatever you were doing. Sorry. Thank you for joining us. Coming up, i was actually number one, what the hell happened . 57 years old. Did you see his exit . Yes. We talked about it yesterday. We couldnt get an answer. Ceo for a couple of years. Didnt found united technologies. Said im giving you something here. 179 million because he sat in that office for a couple of im asking you. Was he that good at whatever he did . And you know what . I dont need to know why. 179 is enough. And then the other thing, how about this woman that thought she killed her fiancee and was they went back and it was an ignition switch. They cleared her of killing her well, remember, they thought the guy killed the woman in the air bag issue at first. This is unbelievable. For five years shes been on pro or for even longer, 2004, now they go back and say it was the ignition switch because she had xanax in her blood, her poor fiancee dead after hitting a tree. I couldnt believe the payout. Im giving you, my friend. So youre being facetious and im being facetious. We had shareholders weighing in wanting to know what happened yesterday. Was he ever on squawk box . We used to have his predecessor on a lot. My initial thought was good. Lets get rid of him so we can get someone who will come back here and be on the show for a while. If you want to leave, find. If you had been on the street, you would have been taking credit for the payout . If he havent . So you do want to talk about that 170 how long was he c owe o . But i think some of this was probably deferred comp. But, you know, for the fam, 57 years old, gulf stream on the way, i would. Maybe not a gulf stream. I wouldnt get a leer are 179. He could buy bonos old plane. How is he . I dont know. I hope hes okay. He was in a bad bicycle accident. He was supposed to be on jimmy fallon. They put that off because of facial bones, compound fracture in his arm. All right. Just getting caught up. Becky, what else have we got . I saw the catch. I did, too. No, i was there. I saw the catch. Wasnt that amazing in person . It was more amazing than that because where the ball was was uncatchble. He leaned back so far and i had told penelope and the kids this guy in practice and on commercials, he constantly catches balls one handed. But then for it to happen like that three fingers, too. It was unbelievable. Thats a reason to really i love the giants now because of one guy. I mean, that was just un lsu it was devastating. People that saw him, you know, i remember watching lsu, but i didnt realize he was one of the receivers. But that was just amazing. The worst part of the game, though, eli driving and they were going to score for sure. The guy was so wide open, there was no one around him, it was so high, it tipped in. And then they scored seven instead of man, there were a lot of dallas fans at metlife stadium. Really . Oh, my god. From the cheers and everything, theyre loud. 40 . When something has happened happens its like, oh, was that good . That was really bad for the giants and the crowd erupts. I knew they were Americas Team and all. Big rivalry, too. But yeah. I had the day off, though. I didnt get like it wasnt like i was unable to get out of bed yesterday. I had that scheduled off. We didnt know that. Youll see. You had to come in at the last minute and this is a light week for me. Coming up, a seemingly accidental tweet from the ceo of twitter is raising all sorts of questions this morning. Namely what might the company be looking to buy . And later, the cartels call. Well talk opec and the oil price specations ahead of this big meeting. And then at 7 00 eastern time, david biancco makes a call on the markets. 1730 eastern, we have a founder of our favorite app and how his Company Single handedly revolutionized the gps business. Squawk box return necessary just a moment. Music the Volkswagen Golf was just named motor trends 2015 car of the year. So was the 100 electric egolf, and the 45 highway mpg tdi clean diesel. And last but not least, the High Performance gti. Looks like were gonna need a bigger podium. The Volkswagen Golf family. Motor trends 2015 cars of the year. Zloo big east coast storm threatening to reek havoc on travel. Lets take a look. You will notice some spots along the coastline, we do not have that Winter Weather advisory. Theres a reason for that. Here is a look at the tract with the computer models. Look at the green. Thats the moisture. Then the freezing line, right here, look at how close it gets wednesday afternoon, right into new york city, down into d. C. The rain snow line seems to be right along the 95 corridor. The good news, if there is any, is that the system is out of here in time for thanksgiving. If you can travel the day of, youre better off. Look at where were just driving this line through new york, down to philadelphia, down to washington, d. C. , its clee shy that the tract is if it is off 50 miles, were going to bring that flow down down into these major cities. As it stands, were around 3 to 5. Hardest hit major city necessary this system is going to be boston. Theyre squarely here in 5 to 8, maybe as high at 8 to 12. So well talk about the timing of this. New york city on wednesday were looking at that rain and snow early. We will change over to snow by the afternoon. One of the big question marks here is now that its a little bit warm and will that flow accumulate right away. Snowfall total of 3 to 5 inches on wednesday night. Roads still slippery and we should be in good shape, again, by wednesday. Good news for the parade. The wind looks on to be a lot lighter. A major cities of boston, roads, gusty winds, later on, and that is on wednesday. Wednesday night, its dumping snow, the 3 to 5 inches of snow at that point. Thursday, we should begin to clear out. The only spot in the country still dealing with snow on thursday, down east main. Obviously, youre going to have travel impacts. Last but not least, washington, d. C. , all snow by the afternoon there. Obviously stepping up by wednesday afternoon. Snow totals, not gigantic. 1 to 3 inches of snow and roads slippery. But, again, thanksgiving day, looking better as temperatures steady in the 30s. So, guys, this is a super tight call. There are some places in new york that may see snow and other parts of the city may change over to rain. I would never wish this on you, but in my own selfinterests, im going to hope youre wrong on this call. Okay. Thats the only time im doing this and i hope everybody listens to you and decides to travel early as a result. Early or late, becky, honestly. If you can go on thanksgiving itself, thats probably the easiest way to go around this. So it looks like it will be clear on thanksgiving. Correct. Thank you. Youre welcome. We have some after the bell earning hes reports moving stocks expend standard trading. More Companies Buy Security Software to guard data from hackers. However, the stock is selling off after i it reached an alltime high during yesterdays regular session. Its down about 1. 3 . The maker of Voice Recognition software saw particularly Strong Demand from Health Care Industry customers, up by 3. 2 . And softwaremaker fighting extended trading even though it reported a smaller than expected quarterly loss. Investors are focusing on revenue growth. That stock down by more than 7 . Twitter ceo learning how powerful the social media site can be. He seems to have sent a public tweet that was proudly intended to be a private message. Noto tweeted, i still think we should buy them. Hes on your schedule for november 15th or 16th. We need to sell him. I have a plan. Well, the post was quickly deleted. There was one problem for noto. Some of his followers grabbed a shot of his tweet before he was able to delete it. Why would you send a dress message the guys in twitterland, i dont think they use email. I think dm is how they communicate. It could be worse. It could be an Anthony Weiner moment. Or if he had said the name of the company. Right. But this is more fun. This sets off the particles game. So we have to all think. Mmmmmm. David tepper is reportedly planning to return billions of dollars to investors. Reports say apaloosa will return between 20 and 10 of investors assets by the end of this year. Its said to be down more than 2 for the end of october after really beating everybody for the past three or four years. And actually making market timing calls, being able to call it when things were going to go up. Ill never forget, either the economy improves or the fed makes it improve. Right. That have that was right. We just had no idea it would take fiefs year for the fed to prime the pump. When we return this morning, if you were having thanksgiving dinner with an oil trader, dont be concerned if he or she seems distracted. There is a major opec meeting on thursday. Well be talking expectations for that, next. Right now, though, as we go to a break, take a look at yesterdays s p 500 winners and losers. Whoa if you have dandruff sign up for shampoodelivery. Com get out of here 50 off laser hair removal. Youve been matched. Linda s. Is only 3. 2 miles away. No no no. Request accepted. Match confirmed. Message from linda. Whats up brandon . Control your entire home without your private data ever being shared. Introducing wink. Its like a robot butler, but not as awkward. Good morning and welcome back to squawk box here on cnbc. Im joe kernen alons with becky quick and andrew ross sorkin. Our top story this morning, across the cable universe and everywhere, this is the story. We were all up late last night, even though we have an early wakeup call to see and, you know, they wait how long for the grand jury and then they until almost 8 30. Violent protests in ferguson, missouri, after a grand jury declined to indict a Police Officer. The shooting of Michael Brown, the cars and buildings still on fire. St. Louis county police chief says no shots, however, were fired by police during the violent protests that erupted. In his words, there was a lot of gunfire in the streets overnight. About a dozen buildings were set on fire. At least 29 arrests were made. Protestsers turning out in many of the biggest u. S. Cities overnight. By most accounts, the rallies outside ferguson, though, were peaceful. About an hour after the announcement, president obama spoke from the white house asking protesters to remain peaceful. First and foremost, we are a nation built on the rule of law. And so we need to accept that this decision was the grand jurys to make. The americans who a s whoa agre it, and there are americans who are deeply disappointed, even angry. Ice an understandable reaction. And i join michaels parents in asking anyone who protests this decision to do so peacefully. Scott cohen will join us again from ferguson at the top of the hour. Switching gears, lets check on some of the markets this morning. It does not look like theres go going to be much reaction. You see dow futures indicated higher, once again up by 19 points this morning. S p futures up by 2 points. This is coming after additional new reports were set by both the s p and the dow yesterday. If you look at what happened overseas, the nikkei in japan ended up by 0. 3 . The shanghai composite closed up by better than 1. 3 . In europe this morning, trading with strongest numbers youll be seeing are coming out of the dax in germany up by better than 1 right now. The cac in france is up by 0. 6 . The ftse in london is slightly higher. And the north American Energy business is booming. Analysts forecasting were going to be Energy Independent five years from now. Much of the crude coming from our neighborhood to the north, canada. Thats where Jackie Deangelis traveled to see how technology is shaping the future. In remote northern alberta, there is plenty of black gold underground. So this is it. And thanks to new technology, getting it to the surface is getting a lot easy perpendicular. Technology has been a driving factor in terms of making us more reliable, making us more productive, making us more cost efficient. Innovation focused on making extraction more efficient and safer is key and it will help unlock 80 of oil resources. The trick is separating the oil from the sand using a method called steam assisted gravity drainage that is currently under way. The technology were applying here, actually, less than 15 years ago wasnt being used on a commercial scale. This is a part of the facility where steam is being injected into the oil and bring it up to disburse it. On this pad alone, it is 20,000 barrels of oil per day. What is significant is the footprint of the pad ises will than 10 of the entire area that its reaching. In the oil sand, technology is driving growth. That will be the key over the next 25 years. Every year the region adds 150,000 to 200,000 per day. Its total production now counts for more than half of canadas overall output and that will increase with time. Production will increase to 4 million and 5 Million Barrels a day where right now its about 2. Upgrading crude to a lighter form, which flows better. I think if you look at real game changes or real step changes, i believe its going to come in the form of what we do underground. So right now were just using dry steam. I think youll see more use of solvents within an unexpected is driving collaboration. In canada, theyre coming together sharing ideas and resources to come together faster. You get the large Multi National companies to come together and agree, yes, if i develop the best one, you can have it for free or well Work Together to develop a better one has been grounded breaking. This has put oil reserves at roughly 175 billion barrels. With Technology Improving access to that oil in 25 years, there could be billions more. Jackie deangelis, cnbc. From the future of energy to the opec meeting taking place on thanksgiving day, its all about crude product and the falling price of energy. Here to walk us through what we can expect from opec is john ki kingst kingston. Help us if you can try to understand whats going to happen on thanksgiving day, what opec can do, what they cant do, and frankly, if they want to put these guys out of business somehow by keeping the price low. That could be the saudi motivation. Thats been talked about a while. Thief done that before. I can think back to the 80s when a lot of projects come out, the market share had plunged and in the u. S. , the market share was almost zero. They showed who say boss in their pricing. There are a lot of ways they can go. The russians cut came out yesterday or the past couple of days. Theres a russian official who say they might be willing to cut 10,000 barrels a day. United states a rounding error. They cut 300,000. Weve cut, like, 1. 2 Million Barrels a day. You look at the numbers for the first quarter, what the world needs for opec oil and what they were producing in october, it was about a million and a half barrel a day gap. So they an enormous task. Im going to go out on a limb saying this is the most important opec meeting in almost 30 years in that perspective. In terms of production cuts, which i think is what everybody expects, how big do you think it will be and what will its impact be . If they go too high, if they say were going to cut a million three, i dont think anybody is going to believe them. If they go too low, everybody is going to think its a drop in the bucket. But you can imagine them coming in 7 00,000 a day. But theyre going to want to see some cuts by the venezuelans. Theyre going to want to get in cuts by the iranians. The response is going to be from iran we almost cut 800,000 barrels a day because of sanctions. Venezuela is going to say we cut hundreds of thousands of barrels a day because weve screwed up our industry so bad. But to andrews point, if they do raise it, does that get brent prices back above 85, back above 90 . To get back above 90, when you look at the numbers in the first quarter, youre talking about a cut thats probably going to have to get toward a Million Barrels a day. I dont think that they have any credibility to do that and i think based on recent saudi actions, i dont think the saudis want to do that. They are not prepared to give up the vast amount of market share just to spaufrt tupport the pri. From the saudis perspective, the goal is effectively to get the folks in north america out of business or to slow them down. What do they have to put the price at and how long do they to keep it there . Probably a lot lower than a lot of people think. I know since the decline started, everybody is looking for that holy grail moment. Whats the one number when it comes up in the eagle ford. But the fact is, there are some people who have 30 and others who have costs around 70. So what will happen is i think youll see a lot of guys who do have some pretty high cost numbers, theyve got big debt service, youll see them put themselves up for sale. And how long can saudis sustain this . You know, i dont know what their reserves are, so im probably not well at doing that. But, again, given past practice, they will do it for a while. That is john, thank you. Happy thanksgiving. Youll probably be working on thanksgiving. You know, opec used to meeting on thanksgiving almost every year. In fact, i went to an opec meeting one thanksgiving. But, yeah, ill be following things. Well see you soon. Thanks. Still to come this morning, barbie has been dethroned. Find out what doll takes the title as queen ooh all toys. And then later on squawk box, the founder of ways at 7 30 eastern. The crowd source traffic app revolutionizing the gps business and changing lives of travelers everywhere. Then at 8 00 eastern, amtrak pulls into the squawk station. We will talk Holiday Travel and the major storm what has its sites set of the northeast. Well have a look at whats happening in europe right now. Some positive action here. Perhaps, on the green. I minimize my sodium and fat. Gotta keep it lean and mean. Pear uhoh. Heart i maximize good stuff like my potassium. And phytosterols, which may help lower cholesterol. Major im feeling energized already. Avo new delicious ensure active heart Health Supports your heart and body, so you stay active and strong. Ensure. Take life in. Welcome back. Making headlines, the National Retail federation naming queen elsa as the top toy for girls. One in five parents said they plan to buy a tore related to disneys frozen film. And youre excited about that. You know im a frozen guy. I think like the third biggest selling movie of all time. A lot of people are im not the only one. The uk based publisher of j. Km j. J. K. Rowling made it one of the five largest publishers in the u. S. Joining us to talk about the future of publishing is richard johnson, ceo. Good morning. Good morning. Great to have you here. Youre still adding to assets in prints. We are very much still adding and especially in the childrens area. The childrens area for us in europe is growing really rapidly. And the power of that is that markets usually driven by best sellers and there were no best sellers this year in the industry. Yet the market is still rising. So its still a good time. Whats j. K. Rowling doing right now . We published in germany a contract on the adult side of things now. The industry wished that there was a return of well, there have been rumors that maybe. Well, if she ever did, the numbers would be phenomenal. If you look at the industry, its level, level, level, so the industry would love the return. Why is your niche with kids and parents, why is that different . The Childrens Book industry is not so much destined by fashion. The kids and the parents, its stories, stories, stories, year after year. Its not driven by peaks of adult. Theres a distinction between adult and childrens publishing in the industry. And thats also the adult and digital. Thats big thing. Childrens digital, not so much. Do you expect that to change soon . No, we dont. Not in this generation. Four or five years ago, i think everybody thought the childrens industry would be dominated by digital, but its just not happening. Its going for the roost. What about i know the kids that have Electronic Devices that they can download. Weve seen some shift in that, but its not as dramatic as you think. The real shift in digital has come in the adult end. The adult book release is 50 50 now if you look at digital books. Especially young children, i cant imagine for 7 and under that youll ever be handing them less than 10 of our sales are digital books. I cant imagine sitting down, you know, on the bed and reaching over and grabbing some ugly amazon lets look at Good Night Moon and here, look. Its a physical book that you hold the point of the little pictures. But isnt the future of the Childrens Book on an ipad going to be an interactive book . And i assume the cost of producing those is going to be materially different because of the graphics and did. It can be very expensive to produce that book. For us, if everything was digital, we would make so much money because we wouldnt have to print stock and all that stuff. But its not good for, as you described, to readers of the childrens story at the end of night. The books we read again this week, probably ten books. And also in the book, you can touch, smell, feel. You cant get that on the do you hear that . Its not good for the soul. We rarely hear that. My staff listening to me would think this might be my twin brother because im not talking about profit or commercial stuff. But its not. You can still make money in both parts, the digital and the paper world. In the childrens side of things, its leveled itself out. You got it. You know theres a history with amazon. And not a good one. So andrew loves this because hes like a mad cat publisher. Im fascinated by the debate about whether amazon is good, evil or otherwise. Well, you can select it one day and think one thing and they have no soul at amazon. Theres a place in the uk which it is what it is. Amazon are here. Theyve been a dominant player 20 years ago and in the future. They have a tremendous market share. I mean, the states, its Something Like 70 ebook and 40 market share. Which is a phenomenal power. They have been squeezing margins and my Sister Company in germany had a big dispute with them. But they are there and youve got to play and do you look that and say thats the free market and thats great . Do you think something should be done about it . Do you well, 40 is unhealthy. In terms of that power. But if you look back in history, theres always been dominant players who had 25 , 30 market shares. Its just a different way that weve got to get it out there. And theres no question about it. They are squeezing margins. But youve got to try to be more combative. Is little b books going to be here . It is our u. S. Venture which is starting publishing in february. A childrens area which we feel part of the market is. Is shomul here . Over there. She prepared you for this, did she not . She made me get up early this morning. Its worth it though. Its worth it. Thank you for inviting me. And im interested. And i like that. We rarely have a guest that say theres no soul. Ceos need to consider that. Dont you think . For kids, i cant imagine. Ever. Its generations away. Thank you so much for inviting me. Still to come on squawk box this morning, what home depot had to say this morning about its massive data breach. Plus a major snowstorm could pummel the northeast during the travel. Squawk box returns with more in a moment. And well give you a one hundred fifty dollar amazon. Com gift card when you open an account. If youre looking for a trade idea, start at the idea hub. Where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. Then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. Streaming charts give you the realtime quotes and customized views of the market that can help you make your final decision. And when youre ready to make it happen, walk limit helps you save time by searching for the most favorable price. Find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. For a one hundred fifty dollar amazon. Com gift card when you open an account, call 18889805745 today. Optionsxpress by charles schwab. U. Welcome back to squawk box. Home depot this morning saying it is facing at least 44 civil lawsuits over recent data breach. The Home Improvement retailer says its investigation of the sbreech still ongoing. And it is rolling out enhanced Encryption Technology in its stores. Espn preparing to launch its first web video subscription service. Going to be giving Sports Coverage without paying for cable tv. Reporting today that espn wants to sell access to cricket world cup. No word on how much theyre expected to charge for the games. Coming up were going to talk oil ahead of the big opec meeting on thursday. Our earlier guest called it the cartels biggest gathering in at least 30 years. As we head to break, check out the futures. Continue to show a little bit of a positive momentum. Squawk box will be right back. Hey matt, whats up . Im just looking over the company bills. 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. Unrest in ferguson. Fires, looting, and violence after a grand jury deciding not to indict an officer in the killing of an unarmed teen. Protests spread to other major u. S. Cities. The markets watching the gdps revision on the dow. Just in time for the holiday frenzy. The northeast about to get hit by snow on one of the busiest travel days of the year. The second hour of squawk box begins right now. Good morning, everybody. Welcome back to squawk box here on nbc. Im becky quick along with joe kernen and andrew ross sorkin. Rioting and looting in ferguson, missouri, after a grand jury decided not to indict officer darren wilson. No shots were fired by police during the violent protests that erupted. There was a lot of gunfire in the street overnight though. About a dozen buildings were set on fire. At least 29 arrests were made. Lets take a look at a live picture of ferguson, missouri, at this hour. Fires are still burning. Cars and buildings still on fire at this point. But the scene is much calmer a they have events of last night. Were going to check in with scott cohn who is live there in a moment. Protesters also turning out in many of the big u. S. Cities overnight. New york washington los angeles all had protests. The rallies outside ferguson were peaceful. In new york about a thousand people marched on times square. During the protest, one man was arrested for throwing what appeared to be red paint or fake blood on Police Officers including commissioner bill bratton. It happened as he walked through times square during the demonstration. You could see an image of that right there on the screen. That would make me a little nervous. And president obama urging the nation to accept the ferguson decision calling for peaceful protests and restraint from police. Lets get to cnbcs chief washington correspondent, john harwood. Good morning, john. Morning, joe. The breadth of those protests around the country make the point the president was making last night which was that he emphasized the ruling of law, but he tried when he went into the press room to drain as much emotion he could out of the situation and say, yes, protest peacefully but dont forget that the issues of criminal justice are real. We need to recognize that this is not just an issue for ferguson. This is an issue for america. There are still problems and communities go communities are not just making these problems up. Its a difficult job for the president to speak to these. And also in his role as the leader of the country to calm the situation, to emphasize the rule of law and respect for the grand jurys decision, jeff. John, the prosecutor went into great detail last night to try to i guess go into the decision as much as he could to try to quell some of the anger. I thought he was pretty thorough and presented both sides fairly effectively. Its still difficult to know exactly what happened when you have so many different narratives of what happened. Amazing, though, wasnt it, john . Certain people that apparently didnt even witness the incident itself were being interviewed. Its crazy. When was this . This was in august, joe. And it was an unusual press conference. I dont call seeing a prosecutor speak in such detail in a case in which an indictment was not even brought. I thought it started in an odd way when he was complaining about social media and news media coverage. Then he laid out more evidence more revealing and new to those of us who have been watching from afar was the testimony from officer wilson which talked about in which the prosecutor said was corroborated by some of the eyewitnesses that Michael Brown had charged the officer and, you know, everyone has been trying to figure out how the two men were situated as this whole thing went down. And by wilsons account which clearly mccullough put stock in and some witnesses backed up, Michael Brown had charged toward him and by wilsons story was just eight to ten feet away at the time that the last shots were fired. Now, to me the biggest question about this entire circumstance, it is clearly from that testimony and the other witness testimony going to be very difficult for any jury to convict darren wilson. The question is, does it meet the threshold for indictment which is a looser threshold than the threshold for conviction. Im not enough of a criminal justice reporter to approach that. I heard a report this morning. I dont know if thats theyre not supposed to i heard that reported somewhere else. I dont know. I did hear that reported somewhere else this morning. John, thank you very much. Lets turn this morning to cnbcs special correspondent scott cohn who is in the city where the protests boiled over into violence. Scott . And becky, just to pick up on that a bit, one of the things that will be interesting, they went through the evidence that was released is that we dont normally see much from the grand jury. And so theres not going to be a lot even for criminal justice scholars to compare it to. Lets get you situated on the ground in ferguson. We spent a very long and unsettling night. Were about half a mile away now from the neighborhood where Michael Brown lived and ultimately died. As you can see, there was quite a bit of activity. We can look from above as fires are still burning in and around ferguson as people took to the streets. It began at Police Headquarters shortly after the News Conference concluded. Some tense confrontations between protesters and police, tear gas was fired upon them at one point. Then they began moving to where we were where we watched from close by. We saw people breaking into businesses, businesses that had been boarded up in defense of looters. But people got in them anyway setting them on fire. Several fires burning in front of us. And a great deal of gunfire. And police that held a News Conference just a short time ago said this was worse than the worst night after the Fatal Shooting back in august. If we are going to survive at all, were going to have to come together. And what happened tonight cant happen, cant continue on. If were going to come together and be better, we have to make changes. But we understand that this community has to be whole. Right now this community is really infrastructured. Fractured. That it is. Before they can come together, they have to sort through what happened overnight. Well get more of that as the sunrises here over ferguson a a difficult night and the city has a long and Difficult Run ahead. The weather there, i heard that its much colder there this morning too. Its colder this morning. It was cold last night. But that didnt seem to stop anybody. You know, and we wondered if the weather was going to affect things. But people came out anyway. I think, you know, there was a decent show of force, of course, by the police. The crowd eventually dispersed. It got late. People went home. And well see what happens today as the sunrises. Schools are closed around here today. A lot of businesses are closed as well. And whether thats going to give people another excuse to come out and protest some more or if theyll begin to that healing well have to see. Thank you for bringing us up to speed. Well talk to you again later this morning. Lets get back to the Financial Markets at this hour. Yesterday on squawk box, brian belski repeated his bold statement about the life span of this bull market. Were six years into a 20year bull. Take a deep breath. Its the biggest stealth bull market of my career. Nobody believes it and were not there yet. And if hes right about that, is it too late to get in on this bull run . Joining us now is the director of global macro for Fidelity Investments and set is the head of head strategist at deutsche bank. A 20year bull doesnt mean does it mean no 20 breaks at all for 20 years . Im not sure what it means. You could get a brief bear market in there too. I dont know. In 20 years time it should be materially higher. Its all semantics. Just because we count on ten, ten is one thing, twenty is another. Its ludicrous. The important thing for investors is we see the market as providing healthy returns over the longterm. Markets dont go straight up. I think in bull markets like were in right now, patience is useful. Even over the past couple of years theres been material pullbacks. Well continue to have pullbacks. Thats when investors should act. Youre in what are you . How can i phrase it . Youre like a global thinker. Youve been around. You know europe as well. My question is with this gdp revision. Things are going better in this country. Were definitely the best house in the neighborhood, but i thought globalization was, you know, going to be front and center forever. I dont know how we can do it alone as the best house without trading partners. Is it sustainable or do we need things to get fixed in china and europe and everywhere else . Its kind of a half glass full or half empty approach. You can argue its better when everything is running at full speed. In the same way that the u. S. Is which is growing at a pretty stable, moderate pace. But that also gets you to a more synchronized monetary policy. Then all of a sudden the Global Economy in a synchronized way is over it. And then the cycle ends. So in a way, this policy, weve had divergence policy around the world for a couple of yoers. Thats produced different outcomes from the u. S. That also becomes less inflationary where importing amounts to lower commodity prices. A way that keep this Central Banks at bay. And that can also prolong the cycle. So to brians point yesterday, i think what hes referring to is a secular bull market. So if you look at the longterm history, youve got a fouryear market cycle. But youve got these bull markets and secular bear markets. And it looks like the secular bear markets ended about a year and a half ago. If that is the case, we are going up for maybe much longer. But you still have the 20 corrections like we did in the 80s or 90s. Its just they are shorter and shallower and then you go to new heights quicker. And at least were not japan, right . You would think they are higher over 20 years unless you see a place like japan. Yes. Thats correct. Well, you know, youve been doing this a long time. The positives, theres almost too many of them. It seems like something could that were not anticipating could go. The way Interest Rates stay persistently low. Even as the u. S. Economy gets back on its feet. Whats the opposite of stagflation, thats what we have. Low inflation and growth. But our growth is a little bit weaker than id like it to be. Yuri made good points. Things are good enough. Theres moderate and decent earnings growth. Where we things to the u. S. Economy and lately were bullish on the retailing stocks. Were comfortable there. Things Like Technology but were very cautious now on energy and industrials. Thats something to keep in mind. That the Global Economy has led the strength over the past decade that are softening. The u. S. Still has very high labor costs even though obviously we talk about income disparity and no wage growth in a long time. If you look at globalization, it seems like the rest of the world as least parts of it in the developing world still have a ways to go in terms of getting up to our standard of living. It seems like were still going to be sort of grappling with that where were not going to be able to grow as quickly as we used to. Isnt that a problem for us . And how do we deal with that . What can we do here . That will be a persistent theme. Theres a big sur place plus. Its coming through our bond market. If david mentioned low rates, and why theyre so low. One of the reasons is capital is flowing into our bond markets. Thats why the dollar is up and Interest Rates are low. The overall globalization theme, its still there. Its just its become more fragmented since a decade ago. Remember the bull market from 2003 to 2007, that was all about emerging markets and globalizations. And a lot of those labor arbitrages can be played out basically. Well, andrew, when robots are doing everything and machines are robots are doing everything and automation is key, any of the jobs that are left that require humans and manual labor are going to go where, you know, 5 an hour or 3 an hour. What are what are people to do . Yeah. What kind of jobs are they going to have here . Cost of goods would be so low because the robots would be making them. Youll buy them for little. Well all be in the Service Industry . Perhaps. Were all going to be thats a challenge. I like the way things are. Dont close the Patent Office down . Therell be things still happening . Okay, good. Well be programming the robots. Or the robots will be programming you. Thats what im worried about. Thats what musk is worried about. A lot of people are. On squawk box just ahead, getting ready for snow on one of the busiest travel days of the year. Well have the travel forecast next. Plus talks with iran on hold but what will it do to the tense relations with the United States . Were going to talk about that. And then nearly 50 million americans are going to be hitting the road for thanksgiving. And many will be using their waze app. The maker is making his way to the set right now. Dont get lost. Squawk box returns in a moment. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. 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. Welcome back to squawk box kwb everyone. Weve been watching the futures this morning. You can see there are some green arrows this morning. This is slow and steady progress. But the futures are indicated up by another 2. 7 points new york. And dow up 20 points and nasdaq 6. We do have earnings from tiffanys. They came in with numbers that missed expectations by one penny. Quarterly profits, six cents a share. Tiffany did the sales growth domesticicly. But also noted there is a changing economic condition out there globally. That stock is down by about a dollar this morning. And if youre heading out of town for thanksgiving tomorrow, you may be dealing with a little bit of snow. The weather channels keith carson has the forecast. Take a look at these winter storm warnings. Thats the darker blue. Then watches all the way from maine down to the carolinas. Those are the spots were most concerned about. Here we are at 5 00 a. M. Heres the storm system. The green is indicating precipitation. And this blue line here is the freezing mark. So watch where that precipitation reacts. All the way up into maine well be seeing heavy snow to the west of interstate 95. Right along the 95 area is where well see the rain snow line set up. Good news is that by thursday, here we are noon on thanksgiving and we are cleared out. Unfortunately huge travel day tomorrow. Weve got problems. Heres a look at the official forecast. Purple a bad thing when it comes to snowfall amounts. Five to eight inches here. 8 to 12 in the deepest purples. And some areas of massachusetts 12 to 18 inches of snow a possibility. Right along the i95 corridor again is where were watching the rain snow line. So were going to have to watch this forecast very closely. Some good news, looks like the parade should be okay by thanksgiving. Okay. All right, excellent. Thank you. Up next well have a story everyone loves to talk about right before stuffing themselves on thanksgiving. That is calorie count. And later, uber. Imagine a four minute commute at the touch of a button. Squawk box will return in a moment. Breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhhahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. See why speed matters, at aflac. Com. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. And apply online. 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. You knew that. They played it in break. Welcome back to squawk box. A story just in time for thanksgiving. The food and Drug Administration is expected to unveil some new rules for chain restaurants. Also for movie theaters and pizza parlors. Forcing everyone to post calorie counts on their menus. Also included, alcoholic beverages. The goal is to combat the countrys obesity problem. A third of the calories americans consume come from outside of the home. The new rules will take effect in a year and apply to food with more than 20. I like having calorie counts. I like to know what youre getting. Sometimes you think its low cal. I dont know if its true, someone said per m m and you need to walk a block. What . Candy a problem. Its a problem with me. Youre a candy guy . Yeah. The leftover halloween is the problem. Im a baked goods man. Andrews a doughnut. You got to walk a block for each m m. That threw me for a loop. Like a tic tac is a calorie and a half. You go luk this and its gone. Yeah. But i think thats okay. Im also doing the carb thing. But i need something. They still dont have anything for me, like a snack. Pork rinds. Thats so gross. Those crackers, four of them are only ten grams of carbs. Theyre like air. You can put cheese on there and sort of satisfy the jones. I have a problem. You need carbs. I need snacks. Up next, Nuclear Talks with iran have been put on hold. Does this make a tense situation . Well be right back. How can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, Global Economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. The mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ho, ho, ho, ho] lease the 2015 e350 for 599 a month at your local mercedesbenz dealer. Toothbrush. Sweater. Extra sweater. Headphones, sleeping mask. Oh, and this is the xfinity tv app. He can watch his dvrd shows from where ever he wants. Hey. Have fun, make some friends. Alright. Did i mention his neck pillow . sniffs pillow watch your personal dvr library where ever you go. With the x1 entertainment operating system. Welcome back to squawk box, everyone. A developing story this morning. Violent protests in ferguson, missouri, following news of a grand jurys decision not to indict a Police Officer in the Fatal Shooting of an unarmed africanamerican teenager. Businesses destroyed. Looting and violence erupted. Protesters were met with tear gas. That situation we are continuing to watch what happens this morning. Scott cohn will join us with the latest at the top of the hour. He is in ferguson, missouri. And after a year of back and forth, the u. S. And iran are still deadlocked on reaching a longterm deal over that countrys nuclear program. The u. S. And our allies have decided to extend the talks for six more months. This comes after the resignation of secretary chuck hagel. What impact will this have on the turbulent middle east . Good morning to you. Good morning. Help us try to understand what this all means. In particular im curious if youre an official in the middle east and you see the resignation of hagel, how do you think theyre thinking about about that right now . Well, i think theyll try to understand whether this is part of a broader shakeup by the Obama Administration or whether this is really just about secretary hagel. I think its the latter. I dont think this portends a broader Foreign Policy direction for the administration. I think the president was just frankly dissatisfied with what he was getting out of his defense secretary and wanted to make a change. And to the extent that its a sign of something, its literally just a sign he didnt like hagel . Well, look, hagel was nominated in 2012, he was right for the times. We were focusing on an entrenchment. Pull our troops out of afghanistan. We were cutting defense budgets. And that was right for the time. But in some ways, the times have changed. So here we are now at war again in the middle east. Weve got an array of National Security crises. Weve got the rise of putin. Weve got to rebalance our forces to asia. Although we are not cutting defense as rapidly, additional defense cuts are on the horizon. I think the president said, look, hagel may have been right at that time but now we need someone who can really be engaged in the wartime efforts against isis and really give better advice at the white house. Jeremy, i mean, i dont know where youre you know, whether you have any horse in this game at this point. People are saying youve got gates. You worked for panetta, right . You read his book . You got gates, panetta, and now this. You dont see any similarities in that there are people maybe pushing for, i dont know, Ground Troops or more aggressive response to isis . You dont think maybe theres a american going on here . Hes not the right guy for the job at this time, really . Thats your take on this . It really is. I did work for secretary panetta. Did you read his book . I ab suitly did. I worked on it. I think in each case you have to look at each case in its own on its own merits. The white house provide you with those today . Did the white house give us your name today . Im sorry, im not sure who im just wondering how we got your name today and booked you today because it sounds like youre directly from the white house in terms of the spin youre giving. I dont think this is part of a broader Foreign Policy shakeup. I dont see that. I think its youre going to give a fall guy for all those . I think they want to redirect the administrations Foreign Policy, they may have undertaken other personnel moves. If you look across washington today, i think thats the prevailing assessment. Let me ask you about whats been happening with iran. Again this deadline has gone by. We dont have any advancement in those talks at this point. What happened . Well, i think the ayatollah in iran really decided he wanted to keep the Nuclear Option on the table. He wanted to maintain the capability of having nuclear weapons. Thats dangerous. Because for the next seven months iran here will be able to amass additional knowhow and new technology while the community continues to negotiate with iran. Were entering a dangerous phase. Thats why i think youre going to see folks on the hill and congress question whether we need new sanctions at this time. And so theyre continuing to see the benefits of being in this negotiation. All the while they are not making additional concessions. I think its a dangerous game. It shows you that iran wasnt ready to make a deal. Do you think the u. S. Has to do that at some point . I dont see over the next seven months israel taking action militarily. Their position has been and it was this case when i was in the pentagon that while were talking to iran, its not the time to undertake military actions. But, look, were going to keep all options on the table. Im sure israel will as well. Does putin look at the resignation of hagel as a win . Does putin view it as a win . Yeah. I dont think he should. Again, i dont think this was about any position visavis ukraine or nato. I think putin, you know, will interpret our actions in ukraine as whether or not we want to confront him strongly with what hes done in crimea and eastern ukraine. I dont think hes interpreting the hagel resignation as anything more than what it is. If he is, hes getting bad information. Thank you for walking us through it. Up next, making a commute from new york to new jersey in four minutes flat. We have the founder of waze here. He has found his way to the Englewood Cliffs studio. Did he ever dream that his app would be such a block buster . Were going to ask him about that next. vo watching. Waiting. 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 timeson for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry into the signthen drive event and get a fivehundred dollar black friday bonus on select new volkswagen models. Black friday bonus offer ends december 1st. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back to squawk box. Right now the futures all morning have been up about 20 points or so on the dow. Up 18 now. Above fair value. S p up two. And the nasdaq which outperformed nicely yesterday indicated up about five. Flying private is about to get more convenient and cheaper. Robert frank is here with more. You mean flying on helicopters or just in general . Well, its a little bit of both. Teterboro is the nations largest private airport. To get there you have to battle traffic. Theres a new solution called blade. Theyre known as the uber of helicopters. Theyre announcing a Service Called bounce. Its 800 for a sixperson chopper. So about 117 per seat. About the same price as a black car. But instead of a 45minute trip. This is between four to five minutes. Considering that most people spend 50 grand or more for a jet flight, 800 is just an add on. If blade can get just 1 or 2 of their flights, its a good business. They did over 800 flights this summer. That service is 500 a person. Consider how many flights come in and out of teterboro, how much people are paying for this. They figured out its the same price as six people taking black cars to teterboro. How is andrew going to get from the Upper East Side to the west side . Can you take a lets say youre on the Upper East Side. That could take an hour. Thats where they take him down to the jet. Im worried the is is going to crowd out my own chopper. I like to keep it on the west side. Heres the app. Its so easy. And its amazing how just having an app has totally changed usage for this helicopter. This is the guys that said this business is broken. Just with the hamptons they proved an easy to use app gets so many people to use it. Can they combine it with, like, fill all the seats . Get everybody instead of just one guy doing it for 800 bucks, can they do it so you have all the seats filled and it only costs you 117 like you said . Youre not always going to have seven friends to go with you. Private jet flights are very particular in terms of when the plane is leaving. Thats why its by helicopter and not seat. Oftentimes when youre taking a private plane, youre usually taking it with two or three or five or six other people. Companies with maybe you just take your own. I dont like company very much. The whole point of a private jet, right . You dont want to sit with other people. Exactly. This is the way they had to do it with the whole helicopter rather than by seat. It will work. Youre right. It definitely will. Theyve already got the hamptons covered. They had 800 flights last summer. These are guys who say this is an industry that has existed the same way for decades. You have to call. You have to make reservations days in advance. This within 20 minutes you have your helicopter. And it was profitable on 800 flights . Yes. And theyre all private twoengine helicopters. Im not sure. The hamptons flight was both. You could change your configuration. They always have two pilots, dont they . Not onalways. Id prefer two. Maybe three. Do you throw up on every ride . No. Mostly, though. But you have on a helicopter. And you havent been invited back. No. I have not. Thanks. Robert, thank you. Speaking of smarter commuting through technology, waze is the Navigation App that takes the guess work out of the road. And now cofounder wants to reroute another consumer aggravation. The Financial Services industry charges its users. Mr. Levine joins us this morning. It is great to see you this morning. Thank you. We were talking off camera about what motivated you to create waze. It was all about your frustration with traffic. Frustration is a way to drive decisions. I was frustrated when i was in traffic. What sparked it with feex . You know, 2008 was a terrible year. And i found out at the beginning of 2009 that not only that i lost, like, 20 on the market. In addition they charged me 1. 5 annual fees. That frustrated me. I called them up. And i spoke to many of my friends to figure how many fees they are paying. And i find out that no one knows. No one knows how much fees theyre paying. And this is maybe the best kept secret in the world. Its 600 billion of financial fees in the u. S. Every year that no one knows theyre paying. This is largely in mutual funds and hedge funds and different places. All kinds. Hedge funds, mutual funds, financial advisers, credit cards, mortgages. Fees everywhere. Its what keeps the industry at float. Its a dirty little secret. The question is where a r all the customers yachts when you look at the full boat yard. The industry knows its there. But as consumers we dont know that its there. So its a secret for us. So how does this work . How do you cut out those fees or let people know what theyre paying . So when you connect your account, your investment, your 401 k , your retirement with our platform, basically what were doing is we analyze all the fees that youre paying and we tell you how much fees youre paying in dollars, not in percentage. 1 a year sounds small, right . When you take into consideration the compound effect of that, compound interest is the eighth force of the universe. And those that understand that are earning it and those that dont are paying it. And we most of the people, we are simply paying that. We connect your account. We analyze the fees for you and tell you how much it is in dollars and how much its going to accumulate in the next 30 years or 10 years or whatever it is. And the next step is what can you do about that . So in many cases you can find cheaper alternatives. If you have, you know, expensive mutual funds, theres alternatives funds that. Are very similar similar and less expensive. And create buying power that enable people to give a discount of investment. To make she service work, because i went online to try it. I have to give over my account to you. And there are other Services Like this. Did you certain type of things you have to give over. Should we as a society worry especially when it comes to Financial Information to make these Services Work you have to there is a little bit of privacy tough give up. So, obviously, yes. But as you mention, its the same with mint and any other service that wants to provide value for you that we need obtain the information. If we were going to upload it manually, that would be a nightmare. Yes. The system actually needs the access to your retirement or investment accounts for readonly purposes. And we are using it as the platform to access that information. And with that we think that this is safe and secure. Obviously were not going to do anything with that. Is this like where someone like a fidelity can do it with or without their consent . We dont need their consent. You have your own user i. D. And password. You access your information. I would say that im not sure that theyre going to like our service. Yeah. Thats what my guess would be too. Not just fidelity. If you went all the way through, what you would do would be driving down prices. You would be driving down fees through competition. Excellent. Which means im successful in what im trying to do. What if someone offered to buy you . My dad used to say when someone makes you an offer you cannot refuse, then you do not refuse. Although what if someone offered to buy you and we were worried that thinker ultimate goal was to shut down the service . In my perspective, that would be a big mistake on their side. This is an indication for the market. Lets create a more fee access. So before the problem is solved, there is still a need. And as long as the problem is still out there, then we will keep on doing what were doing. Have you heard from any of those companies . Not in here. And nobody tried to do you expect somebody tries to block you . In mint ive had situation where is theres been companies that dont allow you to share your information with a company like that. And they actually make it almost impossible for them to do it. So, you know, even with mint example or anywhere, at the end of the day if you will find out that your Financial Institution is preventing you from obtaining service that you need, not sure that you would like to stay there much longer. Right. I think what youre doing is really great. Because all that information is out there, but its difficult to find the information and even know what youre doing sometimes. It is very hard to find those fees. I think youre right. This is where average americans get ripped off. If they dont know about these Fee Structures. How many people do you think can sign up for this . So we just we started the service in israel about a year ago and we have about 70,000 users there. And here in the u. S. , we started just a little while ago. We already have more than 5,000 users. I think that the amount of value that we create them and the number of times we are hearing from people that, wow, i didnt know that i am paying that much. Or you actually saved me my retirement and this is pretty amazing. So i hope that eventually well have millions of users. Have you found a mutual fund that has a very, very low fee base and a very, very high return rate thats been surprising . In general, index fund will be performing that way in most cases. And you can usually do that for less than 20 days as well. Before you go, i have an important waze question real quick. How do you make your money at feex . This is a free service. And we make money by creating a new Fee Structure that is not available today. So for example, grouping people together and getting them volume discounts. But what i wonder is the recommendations that you are making, are these recommendations you get paid for making those recommendations . No. They are completely objective. And we make them based on the fees. And its very interesting. No one ever spoke about how much it cost you. So its like going and buying the product. Lets say a pc or smartphone and never asked how much it cost. In that sense, yeah. Help us with this quick on waze. Has it gotten better or worse under google ownership . And we use google and waze. I often have both apps running at the same time trying to figure out whos going to get me there faster. So i left waze just after the acquisition. So i dont know from the inside whether or not its Getting Better or worse. They need to keep working on it. Do you use it . Of course. Every day . You use that over google maps . Yes. Every drive. Its taken me on crazy routes that are clearly not the way i should have gone. I also ended up at a bridge that had been closed for six months. I also ended up on a road that didnt exist because it started again after it didnt exist and you actually had to go around. And google took me around. They need to keep working on it. I didnt understand if it was six months the bridge was out, how come none of the people with the feedback said anything to get that on waze. I didnt understand. If i would be there, i wouldnt. They need to work on it. Im back to google now. How about apple . You use apple maps ever . No. Okay. Thank you very much for coming in. Were interested in hearing how this progresses. Thank you. I like that answer. I sold that company. I dont know. Apple closing on a milestone. Will the Holiday Shopping season push the tech giant over the edge. More when squawk box returns. Apple is the top stock to watch on the days list. The Company Making a run at a 700 billion market cap. The stocks up 20 since the middle of last month. Year to date up 48 . The oneyear return, 60 . And one more stat. Since the march 2009 bottom, shares of apple now up 900 . Okay. Coming up next, riding the rails across america. Amtrak will be joining us as 46 million americans start their Holiday Travel. What does the future hold for the National Railroad service . Squawk returns in just a moment. You can bring back a lot of things from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Right now, you can get a single line with 3 gigs for 65 a month. 3 gigs. Is that a lot . Thats about. 100 app downloads, 45 hours of streaming music, and 6 hours of video playing. singing and five golden rings ha, i see what you did. singing four calling birds. Three french hens. the guys starts to fizzle out two. Turtle. Doves. I really went for it there ya you did. You really, really did now get 3 gigs of data on one line for 65 a month. Switch to at t, buy a new smartphone and get 150 credit per line. Chaos in ferguson. Violence erupts after no indictment for officer darren wilson. Protests across the nation in major cities overnight. Well get the latest from the st. Louis area. Winter weather on its way. Thanksgiving travel could hit a snarl. The latest of snowfall totals for the northeast and the ceo of amtrak on possible rail delays. And if youre not traveling by rail, rather by plane, weve got you covered. The ceo of expedia shares his Holiday Travel outlook as the final hour of squawk box begins right now. Welcome back to squawk box. Check out the futures at this hour. The markets are awaiting the gdp data which will now be out in less than 30 minutes. I think its the first revision. And going into it, its all positive. Maybe because of this. The european markets are trading higher. Market chatter about the possibility of qe by the ecb. A lot of letters. Set to meet later the week. Were you quick enough to . Yeah. Okay. Lets get back to the big story. We call it general news. But obviously everybody is covering this and has to. National attention drawn to ferguson, missouri. That story sparking protests across the country where a grand jury declined to indict officer darren wilson. Scott cohn is in ferguson, missouri. What can you tell us, scott . Well, you can see the sun is up over ferguson and the fires are still burning. About half a mile down the road you can see some of the smoke. Whap you see there is the mcdonalds. Youve seen that on the news back when the protests first erupted back after the shooting in august. A couple of reporters were arrested there. We saw that the windows were smashed in there earlier this morning. When we pulled out here to where we are now. Lets listen to a News Conference from a short time ago with st. Louis mayor because the protests spilled there as well. I want to condemn the terrible violence that occurred in ferguson. Its unacceptable. Its wrong. The vast majority of people in our region condemn it as well. I think the unfortunate part about it is what that violence does is it not only puts a black eye on our community, but it really sets back the cause of social justice. In the city of st. Louis proper, there were some broken windows, may mayor said. But most of the real damage was here in ferguson where we saw the fires unfold overnight as protesters turned to looters, gunshots rang out, and the violence played out before our eyes. You can take a look at a live picture from the air as the sun is up and the city now and the region now tries to heal. But thats going to be quite a long process. Guys . Hey, scott, we can see the traffic behind crow. Some cars being held, some being diverted. I dont know how much youve been a i believe to get out and get around. I wonder how large of an area this is impacting at this point. Its a relatively contained area. You know, ferguson is fairly small. And the area where much of the violence was that we saw last night was an area of probably about half a mile square, Something Like that. Sort of thats a rough estimate. But it was intense where it was. And businesses all around here even outside that sort of small perimeter were boarded up. There has been a police presence. Weve seen the National Guard this morning. We did not see them last night. And they were going to be sort of taking a back seat to a lot of the local law enforcement. Theyre here now. More National Guard reenforcements brought in by jay nixon. And one of the things that the mayor on the police chief said is that theyre prepared for more tonight. So well see if that happens. Well see if people that were really upset about these grand jury decisions got it out of their system last night, at least the initial anger before they turn to the healing. Or if theres going to be more in terms of protest potential violence tonight. If so, the Authorities Say theyre ready for it. You mention tonight. This is something i just wonder what some of the official protest organizers who did not want to see things take a violent turn, if they had planned on meeting during the day. If thats something we have to wait and see what happens during the day. Well, well see what happens. And one of the things that people who have been around here a lot longer than i have have said that they were surprised they didnt see more visible clergy out among the people last night. There had been a lot of that trying to do a lot of engagement over the last couple of months. And that didnt seem to happen. Part of the issue, quite frankly, was it wasnt safe to be out. There was a great deal of gunfire last night. In fact, where we were the police said some of it was automatic gunfire. And the police said they werent firing it. And it was going in all directions. So thats one of the reasons that some of the fires burned for so long overnight. The firefighters couldnt get there because it wasnt safe. And if anybody was trying to calm things down, they were going to do so at great peril to themselves. Whats the sense the decision to make the information of the decision public in the evening last night opposed to earlier in the day, how do you think that changed the dynamic of what took place . You know, there was a lot of talk about that as things played out. And certainly a lot of balancing act among the officials. The prosecutor Robert Mccullough supposedly made the decision to release the decision when he did. There had been a call from the local School Superintendents not to do it during school hours. Although they wanted to do it on a weekend. And ultimately it may very well have been whenever this came out, it was going to spark the same kind of reaction. But yes it came out in the dark of night and that did seem to add to the overall atmosphere of chaos here. Scott, thank you very much. Again, a long evening promises to be a long day too. We appreciate your coverage and will talk to you again soon. Okay. Right now were going to turn our attention back to business and stories making headlines at this mour. Wall street journal reports that walmarts chief merchandising officer is expected to announce his departure from the retailer. Duncan mnaghten. David tepper will return assets by the end of this year. The flag ship fund is down more than 2 through the end of october. And twitter cfc sending out a seemingly accidental tweet. This may be something he was sending as a direct message. It went public very briefly. It says, i still think we should buy them. He is on your schedule for december 15th or 16. We will need to sell him. Af plan. That post was deleted but not before people followed it. Not only for the mystery of who he may have been talking about but also for how business gets done. The idea that we will need to sell him on this idea. Have to look at somebody calendar. So theyre selling the person theyre buying . We should buy them, were going to have to sell the guy, convince him to sell to us which this tells you the mechanics behind. Whos going to be in town on the 15th and 16th . Who would they buy . Ill tell you who does know. Someone who has an appointment on the 15th or 16th has now been warned in advance. Dont fall prey to the gimmicks. What we know about twitter, it could be johanns venture. The coffee . No, the marijuana venture. He was on for coffee and we said if marijuana comes on, you should. Thats a brand drk the marley brand may carry you aways. Twitter might want to bring it in now. Bring in the supply now. Flagship with doritos. That will never go away. He wishes he didnt say that now. Lets check out stocks on the move this morning. Tiffany. The luxury retailer note ing no fall. Whoa, was that a democrirect me or all of twitter . Whoa. Oh, shoot. Hormel earnings were a penny light in its fouryear forecast. The maker of spam and dinty moore products. And Nuance Communications reporting better than expected profit and revenue. The maker of Voice Software saw Strong Demand from Health Care Industry providers. Okay. Developing now, an east coast storm that could cause major travel headaches for thanksgiving travel. To the weather channels keith carson now. Hes got the forecast and it doesnt look pretty. Keith . Good morning. Youre right about that. It does not look pretty. All of these areas under a winter storm watch. Winter storm warning into the albany area. This means you need to be on alert for Winter Weather. This is tomorrow morning. Watch where the moisture in the green interacts with the 32 degree line. Thats the freezing mark. Were going to be looking at more snow along the i95 corridor. Where the rain snow line sets up tomorrow afternoon. Tomorrow night a lot of travel going on. Then it collapses through boston. Heavy snow. Good news in all of this is by thursday were in much better shape. Things are quieter. The snowfall totals are hefty. The purple here is five to eight. We have darker shaded purple in 8 to 12. And a small area of 12 to 18 inches of snow. What an awful set upas far as it being on the i95 corridor. Right now the forecast for new york one to three inches. This is so close it could be snowing at the top of the Empire State Building and raining on the street. Well have to watch it. Never had we had this much stress as we head into the busiest travel day of the year. Thank you. Well see you again soon. How will this wintry weather affect the rails . Amtrak is expecting 140,000 travelers systemwide starting tomorrow. With us is the ceo of amtrak. I would assume the majority of that will be on the eastern corridor where we may be dealing with this snow. Its a large part of it. We also have chicago, of course, and our Long Distance trains. 750,000 during the thanksgiving season use amtrak. So what happens with the snow . Does that concern you at all . Well, snow always concerns you. But we can be thankful, i guess that on thursday were going to have better weather. Were going to be able to operate. We see theres snow from North Carolina on up into new england. But we believe that were going to be able to operate and move people. We appreciate the fact that itll be difficult for all the traveler. S. I know that ridership has continued to climb every year since 2009. But how does this ridership compare with what we saw before 2008, be fr the Great Recession . Well, what you really see is a ridership that has grown largely in the state corridors. We have a lot of state support and businesses especially in the midwest through the midwest hubs we operate with illinois, michigan, wisconsin, and others. And the northeast corridor has had great growth even this last year. That was our leading growth. And it was actually a reduction in the Long Distance. And also the state corridors. Because primarily because of the delays that we saw happen around the chicago area. But generally, were seeing a demand for ridership. Especially in the state corridor. How is the Infrastructure Holding up with that increased demand . Do you think you are ready to meet the continuing demands of that ridership . Is anybodys Infrastructure Ready to meet the demand . Whether its highways, aviation, rail. We all have a need for an Equity Investment in this nation and infrastructure. Theres no question about it. The leadership has to come from congress. Our infrastructure is old as the civil war and even older for rail in some places. We have place where is there could be a single point of failure and you wont have service into new york dpliernlz. Whats the where is the place that theres a single point of failure sfl. There are many kinds of ways the electrical system itself which is old built in the 1930s on how the trains run, porthole bridge which is a swing bridge over the Hackensack River that was designed way back in the early part of this century. In fact, the design itself goes into a century ago. And built in 1910. 100 million is lost if we shut down this corridor for just one day according to a study done by the northeast corridor commission. Joe, you guys have been in a battle with southern and csx over delays. It feels like a delay for the passenger, but you often say its not our fault, its these other guys. Its their track and they screw it up. How easy is it for them to fix that problem . Its not an easy problem to fix right now. Just look at the number of cars of oil that are traveling now compared to 2009 or 2008 where there were less than 10,000 units. Now were talking maybe 600,000. So you really have chicago is set up as an interchange location between eastern and western railroads. It takes a long time to get through chicago. The railroads are making Major Investments in their infrastructure. And theyre trying to fix the problem. Theres no question about that. But it slows us up. And as youre improving infrastructure, it also slows us up. So our need to really deliver ontime performance is critical for future growth for amtrak. Joe, you had, you know, narrowed losses again. Its funny. We had the transportation secretary on once and he told us how profitable amtrak was. Well no, no. He was just dead wrong. Which one was it . 227 million. But he was talking about the northeast corridor. You know, between boston and d. C. That makes money. That does. But my question is still what is it about just being sort of government associated makes it, you know, sort of almost again, when people dont like the way government runs, they point to amtrak. What is it, whats messing in terms of the profit incent ifor the whole thing to be profitable for the whole year . How could we turn that corner . One thing, when the northeast corridor was prurchased or take over, it was the federal government who owned the corridor. We have a very longterm control of the corridor. But the problem really was and is today is the investment necessary to modernize and update the corridor has never really occurred. So you dont have an ability, for example, in england they pride that. But they had capacity to do that. Were almost at the end of capacity right now with what we provide between the commuter railroads we operate and the amtrak services. So there really hasnt been an investment in this mode necessary to deliver for the future. 24 million jobs in the northeast corridor, 7 million of them are within five miles of our station. But just the problem is it hasnt been profitable. Its the smallest operating loss weve seen in four years. Thats despite the fact there havent been these investments. There are areas that are never going to be profitable. Well, you know what . In the northeast corridor, we went up 100 million in revenues last year. On the Long Distance trains, we went down 100 million in cost. Part of the jargon you hear today is availability payments from private partnership. This is a private company. Were a partnership with the United States. The United States is not making the investments in the infrastructure nor is it supporting the availability of service on the Long Distance trains. Buses are going away. Aviation is going away. The middle of the country is not served properly. And thats a policy decision they have made continually and every authorization. Its something they should support. I love going from here to d. C. And its a Great Service and i prefer it to flying. I like everything about it. I just do we need to charge more, joe . We charge as much as we possibly can that the traffic will bear. And were going to replace the express within the next five to six years. You remember on seinfeld the guy that looked for the books that were overdue is mr. Bookman. And your name is boardman. Isnt that weird that the amtrak guys name is boardman. All aboard man. Thank you for using our service. Thank you. I love it. Im using it again next week or the week after. Joe, thank you. You bet. Okay. Coming up, economic doomsday. Weve got to talk about why some manufacturers are preparing for the worst. Phil lebeau with some findings of a new report that will surprise you. Well have that. Plus the first revision of the gdp reports. And the latest outlook of the economy. And the ceo of expedia is going to be joining us. His read on what travelers can expect during the busy Holiday Travel season. Squawk box returns in just a moment. Welcome back to squawk box. Are small manufacturers getting nervous about the economy . Nine out of ten manufacturing groups pulling back their investments in new plants and Capital Equipment last quarter as they prepare for an economic slowdown. Phil lebeau joins us now with more on that story. Phil . Hi, andrew. This information comes to us from pay net which has been tracking small loan activities, payment, investments for years. The most recent data paints a troubling picture in terms of whether or not small manufacturers are cautious about what to expect from the economy. Essentially in the Third Quarter, investments in new machinery, plants, et cetera up just 2 . Most of the sectors cut their spending in the Third Quarter. The owners are cautious on the prospects for extended growth. Theyre confident their order books are going to be at this kind of tepid run rate. What theyre not confident about is broader expansion. And bottom line is this. If you look after the recession, see the big spike in investment and spending. That continued all the way through 2012. Hold back as you expect in 2013 a bit. But it has no type of momentum. As you look at the activity according to pay net, what small manufacturers are doing, theyre investing and replacing equipment in plants. Theyre not investing to expand. Theyre not investing to hire more. That has people wondering. Okay. Phil lebeau, thank you for that. When we return, the first revision of gdp. Plus how blackberry is going after apple. That and more when reone. 300 coe online trades. Tdd 18003452550 so if you get a trade idea, schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. Tdd 18003452550 [ male announcer ] sharpen your instincts tdd 18003452550 with indepth analysis by schwab experts. Tdd 18003452550 and if you want to run your idea tdd 18003452550 by a schwab trading specialist, tdd 18003452550 our expertise is just a tap away. Tdd 18003452550 whats on your mind, lisa . Tdd 18003452550 id like to talk about a trade idea. 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This is good ham, diane. Paperless discounts give it a rest, flo. All yeah, flo, give it a rest. Welcome back to squawk box. The steve jobs movie has been picked up again, this time by universal. That project is based on Walter Isaacsons biography. Directed by aaron sorkin. Unrelated. Oh. Thats not you . No. Its going to be a great project. Super. Coming up, gauging Economic Growth. The first revision of Third Quarter gdp is up after this. And the sun is up in ferguson, missouri, this morning. Thats where chaos erupted overnight. We will bring you any updates. Stick around. Well be right back. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Welcome back to squawk box. Breaking news. Our second look at Third Quarter gdp is surprisingly better than expected. It moves up to 3. 9 from 3. 5. That now means if you average the first three quarters, we are slightly above 2 versus 2 . That exact line was 3. 5 . Lets look at the internals. Consumption ramped up from 1. 8 to 2. 2 . And we see both quarter over quarter expenditures at the same level. 1. 4 . Corporate profits . Well, heres a bit of a fly in the ointment. They were up versus 8. 6 . But all in all, this is better than expected. Of course we want to average better than 2 growth, but we are always, always continuing to monitor the recent trends. Remember, its the rate of change that matters most. So, of course, the firth quarter of next year will figure prominently to get that sustainable level of growth were all looking for. One sideback, 30year bond is broken in a longterm pattern. The current pattern is now 19, potentially 20 days of closing in tight ranges. But we were on the cusp before the stronger number which puts rates up a bit to breach 3 . We havent breached 3 on a closing yield basis to the 22nd of october. We still have Consumer Confidence before everybody carves that turkey. Back to you. Rick, we noticed earlier today that the 10year was trading below 2. 3 . Its back above it now. That does make you sit up and pay a little bit of attention to whats happening here. Does that concern you at all . Well, its not a concern issue. Its really, you know, trying to think about the markets in a digestive process. We saw big capitulation. Everybody remembers it. Referenced it yesterday. Then it popped back and closed at 214. Quite a spread. But since then its been in consolidation. The consolidation after that big rally is really very bullish considering we are as you pointed out, starting to dip below these very defined ranges. As a technician if i take a step back, look at it objectively, i would say six out of ten times, maybe even seven, when you see that type of pattern postcapitulation in this instance it likely means rates slipping as we slip into the end of 2014. Rick, thank you. That really clears a lot of things up. Appreciate it. Well see you tomorrow. Right now for more on the data lets get to steve leisman. Steve, your thoughts . You know, good revisions across the board. Consumer spending up higher by. 4. Given well, maybe. I mean, thats a possibility. People discount thats going to have an effect. It always has a positive effect. The question is was it too early in the Third Quarter to start picking it up. It was july when we started getting the downdraft in oil prices. And maybe some people thought it was going to happen. We didnt see it in the monthly data, but you had a spurt up in durable goods or revision higher to 8. 7 . Nondurables also higher. Did i hear someone also say last week we were expecting a sharp downward revision of the gdp . Not a sharp we were expecting downward, yes. The other way, yeah. Thats unbelievable. You bought a new tie. I did. You did too. No. Its an old one. But you have a new one. Its amazing i know that. Weve been together too long. No. Not long enough. Let me give a little bit more here. 7. 1 . That was good. Closer to the number originally expected. By the way, rick is right. Three quarters is 2 but the last two quarters, the strongest twoquarter average postrecession. You add the 4. 6 with the 3. 9 and youre going to be several above. You continue it. I will tell you people do not expect it to continue in this quarter. Were looking at 2. 5 as the cnbc rapid update of tracking. Which is okay if it happens. You also by the way had an inventory revision higher. And i think the trade deficit will be taking off less from gdp. You had a bump up again. You had the inventory went up quite a bit. The shelves are well stocked for the holidays right now. And then the hope is with what joe was talking about, you get the Consumer Spending. You guys were talking about it earlier. There are a lot of stars that align here that makes you too nervous that things are so well aligned. You have wage and income rising. Corporate profits are good. Youve got housing. Youve got to get shiller up 5 . So youve got Housing Confidence thats created there. And then you have this kicker from Lower Oil Prices and gasoline prices. I guess the only downside and we should always look at the other side is do people use the money to pay down debt . Do they end up deleveraging more . The question is how far through the deleveraging are we right now . I think debt will pick up, people feel more confident if theyre confident in their income and outlook in their cost structure. Then theyll take on more debt. So im bullish in that regard. And i think if you get a Consumer Spending kick in the Fourth Quarter like youre talking about, then that 2. 7 number may be light. Again, you could be over 3 for a Third Quarter in a row. For me to find the negative earlier you werent watching, i had to go out to were all going to be replaced by machines. I think youre wrong about that. I am upbeat on the singularity. Me too. I cant think of anything to worry about except, like, terrible things. Like bombs and horrible things. Yeah. But the singularity is going to be good. Joe, it was like think about it. We got lower oil. We got this. We got low Interest Rates. Weve got good growth. We dont have productivity. Were going to do National Productivity day. How many years after electricity was created or formed or devised or whatever you want to call it why are you asking me about when electricity was made . To see if you remember. How many years after the discovery did we really begin to reap the fruits of the discovery of electricity . It took awhile. It took like 50 or 100 years. Singularity is a good thing. Steve, stick around. You want me to stick around . Thats awesome. Tom will give us something to worry about. Tom, this is a half a point higher than you thought, wasnt it . Yeah, it was. You know, a couple of interesting things in this report from what i can see here. One is that if you look at the change in inventory, it went from subtracting six tenths to subtracting only a difference. Its one of the reasons we like to look at final sales. Because final sales strip out inventories. Its impossible to forecast. I think that steve highlighted a moment ago some nice revisions across the board. One thing i would highlight is while its true that you have a consumer thats better, it remains in this tight band of just north of 2 . Thats been one of the very consistent stories over the course of the last couple of years. I want to stop looking back. Lets look ahead. What does this tell you about the Fourth Quarter . We did the two best quarters although rick points out the average is still just 2 . Is it a 2 economy or can you say weve shifted up into a higher gear and its now a 3 economy . No, i dont think youre quite a 3 economy. I think its hard to make that case if youre looking at a consumer thats still chugging along at about a 2 pace. But what i would say is we are looking for a again i think you highlighted at the top that you are looking at sort of better prospects from a consumer perspective in q4. We totally agree with that. In fact, were looking for this acceleration to 2. 5 . Okay. Over the course of 2015, we actually do expect the consumer will continue to band. And for the full year, were looking at 2. 7 . Youre getting this improvement. I think by the oend end of the year you will be closer. I thought the futures should really take off on this. Does this mean june of 2015 . I may do we still care they do that . No. We dont. And thats the brilliant comment right there. So if they do that in june and they go on the slope that theyre talking about, we had a guy on. Maybe well get to 2 by 2016. What do you care if youre a 5 nominal we were up 25. This should be good for 30. This. Nobody believes it. I think the fed has told you theyre a positive for a long time. What i would say just to amplify what steve was saying, what weve been saying to clients is we are we think june 25th the fed raises rates. But there is literally no macro difference between whether the fed raises in june or september. I think its a conversation short end of the market. I get it. It matters to them. But i think from a Bigger Picture perspective, i dont think it makes a bigger change. Then youre not talking about a september meeting. Youre talking about them going some time in 2016. Right . I mean, something terribly wrong would have had to have transpired between now and then for the fed not to go at this point. And the economy is in bad shape. How realistic do you think that is . It comes as a huge surprise. I think its way outside the consensus right now spp there a building case for that . For what . Im sorry. 2016 . Yeah. No. I dont think i think that sort of tails. The base case thats sort of true for the market, the base case is the middle of next year. And actually this is something i think i spoke with both of you last week. The fed in a lot of ways in the middle of the year. Make sure this is clear, everyone. Im not telling you anything thats economic right now. I base this on the fact that you have all these officials that are coalescing around 2015. Its not just extreme members. Even dovish members have said this. I think it takes something really sort of i dont want to say a catastrophe, but it will taking a knocking back for the fed not to go middle of the year. Makes sense. Thank you, tom. You got it, guys. Thank you. I like tom. When we return, expedia can get you where you want to be for the holidays. We have the ceo next. And as we head to break, check out the aaa travel forecast. The average distance is 449 miles. Well see if that holds up given the weather. Squawk box will return in a moment. Welcome back to squawk box, everyone. Blackberry is going after users of apples iphone as it tries to regain lost market share. It listed tradeup incentives to iphone users if they switch to a passport blackberry smartphone. There is a small market potentially for that. Do they have an actual reported case . A reported case of someone switching from an iphone back to a blackberry. I did at one point. But now i have both. Do you think thats ever happened . No. It did happen. It happened awhile ago. Its like the guy who said keystone would create 35 jobs. He literally said 35. Maybe he meant 35,000. No, he didnt. May just watch what you say from here on out. We should also tell you this morning that honda has been underreporting serious u. S. Accidents since 2003. The automaker says it used an overly narrow interpretation of its requirements. More than 1700 injury and death claims went unreported over that period. And campbells soup beat the top and bottom line when it came to its latest quarter. Lets talk Holiday Travel kicking into high gear tomorrow. 50 of the top ten destinations are warm weather spots this year. Only 30 are cold weather destinations. But what can we expect for air travel with the bad weather coming to the northeast . Joining us now is expedias ceo. Good morning to you. Help us well, no. Theyll come after me by saying help us. Help us understand what its looking like this Holiday Season. And can i still actually get a ticket right now for thanksgiving . Or am i just too late . Well, you can get a ticket for thanksgiving, but its going to cost you more because youre that lastminute shopper. We looked at actually bookings the week of thanksgiving or just the week before thanksgiving versus advanced bookings. And prices tend to go up 9 or 10 . Youre much smarter if you book early and get that done. Okay. But how about christmas . Same thing for christmas. Really this month and december are the top booking months for booking into all holiday periods including christmas. So when you can plan ahead, youre better off. On the hotel front, there are some lastminute deals you can find out on mobile only. Running black friday deals that are unto 90 off. So theres great deals out there. If youre booking an air ticket, you want to book it early. Is there that much of a better deal when i buy the air and the hotel together . Yeah. And isnt it for you that much better . The margin for us is about the same or a little bit worse. We like to give the consumers a bit of a good deal when they buy two things together. But essentially by combining the two fares together, were able to access sometimes net airfares from the airlines. And also package deals from the hotel that they wouldnt show stand alone. So its an absolutely better deal. But you do have to shop around and find those really good deals. You certainly can on expedia. We were talking to a guest yesterday about this. Can you give us a tip or trick . I dont know if its a myth or real that tuesday night if you book your air tuesday night that somehow thats usually the day you can get the best rate. Is that actually true . The best consistent deal is if you book early and you avoid the last two to three weeks. So consistently id say if youre giving it to anyone, tell them to book early especially on the flight side. Tuesdays and wednesdays tend to be decent shopping. But if its in the last couple of weeks, youre not going to get a great deal regardless of what day of the week youre shopping on. Okay. The other question i wanted to talk to you about, its an industry question. Which is amazon is reportedly about to get into your business. Yes. We heard the same reports. Its a big business. This is a trilliondollar global industry. Its a really attractive industry. Its always been competitive. So we welcome amazonmazon to th party, so to speak. You know, its a business thats been going really well. Its no wonder other companies are looking at. Have you locked up anything that can prevent them to get into . And worried they can do the same to you . I dont think that theres any absolute lockup factor. This is just too big a business. But we do have over 300,000 hotels now in our system on a globl basis. Its going to take a lot of catching up to do for any player out there to get to the size and scale we have on a global basis. So were really confident of our prospect going forward. Before we go, do you leave comments on trip adviser or expedia ever . I do leave comments on both. You do . Nice or mean . Nice ones. Nice ones. If i have mean comments, i complain to my wife. But nice comments i leave publicly. And both on trip adviser and on expedia. I use both of them when im researching and i like to give back to the community. Theyre Great Services. Were going to leave it there. Thank you so much. Happy thanksgiving. You coming up, jim cramers take on another record for the markets and where we go from here on this shortened holiday weekend. On this day in 1996, the Dow Jones Industrial average passed 6500 for the first time. In 199699 the dow nearly doubled its size. The Holiday Season is here, which means its time for the volkswagen signthendrive event. For practically just your signature, you could drive home for the holidays in a germanengineered volkswagen. Like the sporty, advanced new jetta. And the 2015 motor trend car of the year allnew golf. If youre wishing for a new volkswagen this season. Just about all you need is a finely tuned. Pen. Hurry into the signthen drive event and get a fivehundred dollar black friday bonus on select new volkswagen models. Black friday bonus offer ends december 1st. Down to the new york stock exchange. Jim cramer joins us now. I think we are up 40 now or so. Good number. If you throw out that one blizzard number or whatever it was, we dont average down to 2 . We could be above 3 . Are we above 3 . Is that the trend now . Are we a 3 economy . I think our economy is very strong. The consumer is very strong. We are starting to get nonresidential construction. Oil and gas very good. There is a lot that is very strong in our economy. We dont hire the way we would expect given this kind of whats almost a boom, but we are certainly a beacon in the world. Everybody else is falling and we are accelerating. I want more. It was supposed to go down. It goes down 3. 9 . I think you are right. I think it is worth more and i think we are going to get it. Stocks going up premarket are internet related or biotech related. I think its the industrials we are going to see shine in this. The consumer companies. Dsw reported a great number. Ti tiffany, a terrific number. Palo alto was down a lot. It had come back. Theres a lot to like. Almost all the numbers are terrific. Will we be waiting for the june rate hike like we did with the end of qe . There are a substantial number of people who will wait and sit out the market and other people who are optimistic and wont focus on the fed and will focus on the fundamentals. We could play the parlor game thinking about the fed. It hasnt made you a dime or try to make money. The fulcrom. He said he didnt make the big call. Is it harder . I dont know. Brady had a couple of bad games at the beginning of the season. We wrote off brady before they were going to cincinnati. If you write off pepper, hes going to cincinnati. I think everybody is entitled to one off year. He is a terrific manager and will come right back. Is that the greatest catch ever . Greatest this year . Greatest in the decade . What do you think . Definitely. I think the physics lesson about how its possible in the times is funny. That team is going to be stacked next year on offense. Youve got to have a lot of people come back. Defense is so pathetic, mait ma not matter. Nothing is worse than the jets. Oakland looks better than the jets right now. The control room is spinning right now. Its true. They are trying to tag. There is nowhere to go but up. Thats the good news. I like rex. How do you ruin a guys psyche like geno smith. I didnt talk about Michigan State either. I thought i would get away with that. Do they call in sick . I dont want to go to ohio state . I dont want to go to Michigan State . Did you ask to get into the big ten seriously . Yeah. Did they think about that. I missed the bus. Im not going to be at that game. When we come back, get a peek at the bottom line for two publically traded theater stocks. Details on that next. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. That is a tease. Have a great thanksgiving. See you next week, see you tomorrow. Time for squawk on the street. Good tuesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and dave faber. A nice surprise on gdp. Kay shiller is out. Futures are higher. Gdp revised up to 3. 9. Second Strong Quarter in the row. Back above 2. 3 and oil back above 76 with that opec mee
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