Department says the data is not complete, two states with faulty data. That number is probably going to be revised. Europe wrestling with euro production down. In the oned by putin in the times calling for caution in syria. Facebook looking to hit a second consecutive alltime high today. Ceo Mark Zuckerberg changes his tune about the ipo process. Shares of lululemon. And an initial public offering. Ill have more details in a moment. Weve had three tripledigit gains in the dow. Last time we had four tripledigit gains in a row, never. Doesnt look like were going to do it today judging from futures. We did have an eightday streak in july, longer than the sevenday streak. The s p, yes. I was looking at the s p. After that it didnt go down immediately. August was tough so maybe i dont know. Last night im watching the tape and unfortunately we saw some tough numbers from jay crew, which it just shows you if apparel how tough apparel if jay crew didnt do that well and theyre the best there is. Vera bradley. Jay crew is private but you can learn about the financials. Thats great you point it out because people should be buying that if its public. Gees, retail not so strong. But the market where are the big sellers, carl . Wheres the guys who say israel maybe theres missiles fired at golan heights, the numbers from europe eurozone werent that good. Where the sellers . Like a yelp, a facebook, where these names have not come down, even with all the craziness around the world. Netflix, there have been a couple downgrades. Morgan stanley, which had liked it, that was a terrific call. Well talk about the downgrade later on. Carl, i call them the appointa anointed ones. These guys are just theyre so loved that its almost like theyre going to be marked up between now and year end, celgene at the same time were talking about a strong market, theres a frenzy going on in the fixed income market as well. Did you like the verizon pricing . With the verizon deal and a lot more to follow, by the way, in terms of high yield and investment grade. You got 5. 2 on the ten year, you could do worse than that. You could. Although traded immediately, yield traded down in the after market so people who got in on that deal, and a lot of people didnt get in. That was like a hot ipo. These are extraordinary times, carl. You used to have a Gigantic Network and trying to sell to retail anywhere. This bond deal is so big, would i start quoting the verizon paper as well as the treasury. How are the verizons, not the tenyears. Theyre going to be with us for a long time. That is incredible. Points out youve had so much inflows still into over the years into fixed income. How much money is there out there . I know, how much is there . How rich is a segment of our country . Or is it just the Pension Funds or we know what the 1 19 of all wealth built most in the 60s. I cant remember what the exact stat was. Wheres trotsky when you need him, huh . Speaking of the russians in the times today, Vladimir Putin with an oped, unbelievable, which reads in part no one wants the United Nations to suffer the fate of the league of nations which collapsed because it lacked real leverage. A strike on syria would increase violence and unleash a new wave of terrorism. It basically says you guys should stop being the worlds cop and you guys should stop thinking you are exceptional. Thats how he ends the peace. Panetta said a couple of great things this afternoon, oh, putin is lecturing us. Who overseas run as country that is reliant on oil. Its a petro country, thats all it is. But my point is if you can continue to create a good deal of uncertainty in the world, particularly in that region, you keep the price of oil up, that helps. It does help. Do you really think theyre going to work a real deal that you want, chemical weapons, Jeff Goldberg with a good piece today saying we cant even destroy our chemical stockpile. Suddenly i trust the russians. Yeah, they seem like good people. The russian stock market this month up 8 , as i think in the times today someone said putin is enjoying his best week as president in years. Im raising numbers putin right here, right now. Hes got some deficit there is to deal with and the higher price of oil will help. Anything he can do to keep that price up. Are you going conviction buy less putin . Hes quite a promoter, that putin. If putin were running apple, you think that stock wouldnt be north of 550 . Can you imagine the pizzazz hed have . And the oped piece in the journal about how numbers are too low. Facebook shares poised to reach alltime highs for a second consecutive session. Thats one day after hitting a 45 mark for the First Time Since the day of the social networks ipo back in may 2012. Of course it went like that. Since then its been a wild now it says it. Its been a wild ride for the stock. Last night facebook ceo Mark Zuckerberg reflected on the ipo process. Im kind of like the person you would want to ask last how to make a smooth ipo. But seriously, its actually a valuable process. I was really worried that, you know, people would leave the company and people would get really demoralized when the stock price went down but people are focused on the mission and the product we have. I actually think its made our company a lot stronger. Thats interesting. And james gorman from Morgan Stanley taking a bit of a victory lap with mary thompson. He took a lot of heat and came back and said give it time. Here we are, time has passed. Mobile is ascendant and facebook is as well. Facebook, havent sold any, biggest win ive ever had. The biggest win youve ever had in the charitable trust. I think so. Apple, mid 20s. Just kind of believed. Why do you believe . Same reason i told people to buy apple. My kid wanted a couple ipods. This is just an unassailable franchise. Zuckerberg said he would not run intrusive ads. I know this is going to burn me but people seem to like the ads. I saw my daughter bought the red hot chili pepper tshirt. People have short memories but i remember the week of the ipo, you are not a buyer at the ipo. Well, 38. That was controlled by the machines. The machines have a terminator feeling over at the nasdaq. But zuckerberg has delivered. If you switched to underarmor instead of that outfit, i think he stock would go higher. He is a terrible dresser. If that matters. I agree. Are those offtherack from kmart sweatshirts . Oh, mens warehouse. Big disappointment. You know what else doesnt look too good is lululemon. Shares down sharply. The apparel maker cutting below forecasts. Company declaring it has recovered from problems caused by that recall of their popular yoga pants. Inventory 30 versus sales plan i think 17. Inventory has outpaced sales for seven of the last eight quarters. Its apparel. Its apparel. It aint selling. I was hoping this could be part of a cohort of high end specialty apparel, like underarmor. It did have a good quarter. Got to hand it to them. This is one of those where weve been waiting for some decisions at the top, whos running it. The company has had a history of conservative guidance. Why were they cautious on the guidance, given they had a better quarter than might have been anticipated because of all the weakness weve seen in other retailers . Some margin issues . I thought it was quizical actually. Theyre looking at mid Single Digits in guidance. You would expect with inventory so bloated, theres going to be margin pain. I keep thinking what about what manny chirico. I said you had a great quarter, what are you doing with the down guidance . He said last ten days not so good. They say the future is not as positive. Theres something going on at apparel and it not happening at best buy, which continues to do well. I dont know. Its a hard good versus soft good. I heard it from your guy, berman. We talked about it for a long time since david came on with what ended up being a very pressing call. Im not quite sure we can figure out except people have just had enough apparel. They dont need anymore . When you ask manny, are people just not buying clothes . I dont know. The way you play it, its by tjx. Theyre the closeout guys. They come in with the cash, buy your stuff that didnt buy in the summer. You go to the tjx downstairs here. You been there . I have. I kind of like it. You actually shopped . I did. Huh . Im bringing a camera crew. Its kind of like caught on tape, david shopping. And there was no lines. I was in and out in like seven minutes. Can i ask what you bought . Its actually of no great consequence. I also went to models and bought a new bathing suit. Speedo . I do swim, its long kind. Men of my age should never wear anything other than long. I wear sweatpants. Hilton jumping into the ipo waters. Well bring you into the plan for them to go public. A lot more squawk on the street live from post 9 of the nyse when we return. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Hilton worldwide announcing plans to go public. This moves comes six year after blackstone took hilton private in one of the largest leverage buyouts of all time, the price tag then, 27 billion. Hiltons growth rate is a pretty good one. The overall value being ascribed to the company as a result of that ipo i am told by people familiar with the situation is 30 billion. So the ipo will value hilton at about 30 billion. Obviously theyre not selling a great deal of the company. Its unclear at this point how much is going to be sold as primary shares. Not sure if its to raise money or being sold into the market to help monetize investment. You have to exit investments to put up the returns. In this case they did not deliver any dividends over time the way so many other take privates have. In this case, though, they have delevered hilton and, therefore, the equity has grown. Obviously it will probably be decent, if not a quite good deal for blackstone. An important component will be a huge refinancing that will also take place. 14 billion worth of debt will be refinanced so theyll create a new capital structure, that includes commercial mortgagebacked security debt, bank debt and there will be a high yield issue as well. So will you have 14 billion in new debt and, you know, well have a public hilton most likely First Quarter next year. You got to get the s. E. C. To sign off. Were almost already at the beginning of the Fourth Quarter. But then well have it out there along with the likes of marriott and starwood as another comp. Looking at it, these are valued on a multiple. They took some debt down, they took a preferred. These were companies that went private at the very top of the bubble but manage to withstand the financial crisis without going bankrupt. Maybe been bernanke should get a little kudos there. And also no covenants in any of these things. The last ones before the crunch. You had very little ability to actually put them in they missed a payment. Toys r us still coming out. So few bankruptcies. Hilton of course well away from that. Its going to be a real Success Story for blackstone. These are Success Stories for capitalism. These companies would have gone under if only would have gone under because they took on enormous amounts of debt in order to go private. Harrods, which is now cesars. The prior year showing growth. Marriott was upgraded yesterday. Stock had a big growth. We know starwood has been doing incredibly well. Simon covers this group. But travel has been great. Watch priceline. Pricelines been incredible. We always have the question of an overhang. Blackstone will be a seller of shares once it comes public. Maybe buy blackstone. Stocks of are dribbling out a bit. Blackstones been a great stone to own. Fabulous stock to own in this last period. When we come back this morning, cramer will take you on a run for profits. Well get his mad dash as we count toward the opening bell. One more look at futures. More squawk on the street straight ahead. Today on squawk on the street, hedge funs, huge returns on your money. Can. Ouch. Over time it really adds up. Then go to etrade and find out how much our advice costs. Spoiler alert its low. Really . Yes, really. Etrade offers Investment Advice and guidance from dedicated, professional financial consultants. Its guidance on your terms, not ours. Thats how our system works. Etrade. Less for us. More for you. Just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the American People. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. We have cramers mad dash. Lets get started. I think this netflix Morgan Stanley piece, equity run, downgrade to equal wait, now priced for success. I think a lot of people feel that way. They say virgin is an interesting first step. But whats most amazing about this, david, is i basically understood the karma of the market, people like netflix, they like house of cards, arrested development. I congratulate Morgan Stanley. This is a case where an analyst had it right to begin with. Perhaps we should Pay Attention. Very rare, though, they get it right on both sides. I know. Scott devitt, congratulations. 227 rise in stock right. Thats not bad. Priced to perfection, jim. Give us some sense there. What i thought was really interesting, the bear case that hes using is still the same as using a 3 im sorry, base case, 314 base case. It means he still thinks it can go up a little bit. Carl icahn saying he hasnt sold a share. One would think maybe you take a little off the table. Buying more apple. Hes very contrarian. And then there was an article, i just wanted to ask you, david, the wall street journal says that relational might be interested. They seem to do high quality work that boards listen to. Relational has the quieter approach, not the hit you in the face kind of thing that carl icahn is known for. Well see on timkin. They dont want to be caterpillar. If you have commercial construction coming back, they will do terrifically, goebbels company. David, relational managed convinced the board at timkin that the management was wrong in not wanting to split the company up. The board was won over. What are these guys like . Do they come in with just fabulous work . I think they come in with good work. Nell san, too. Everybodys got their on approach. Its interesting in terms of the more aggressive activists, those who will get very aggressive but will try to be construct of and then youve got the ackmans, the icahns. It not an all for one. And they will choose different menus. Look to see if anything happens here. I thank you because some guys who do activism are really trying to help everybody. I think pelts has, i think relationals done highquality work. All right. We have a lot more to cover this morning. The big question, is this weeks rally going to continue . You know what, the best way to find out, stick around. The opening bell after this. Tomorrow, back from the brink. Former treasury secretary henry former treas y secretary henry [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Youre watching cnbc squawk on the street, live from the Financial Capital of the world. Opening bell set to ring in just about ament and a ha mea minute. The s p up seven in a row. So far this year its been up eight straight twice and up seven straight twice. Yesterday we sat here with the mortgage applications. What goes up the most yesterday . Home builders. This is this market taking information that normally would have been translated into negativity and saying that number must be the trough for Home Builders. The optimism is extraordinary. Were starting to hear from some technicians who say if you play shortterm trends, maybe lighten up here. Others say if you play longterm trend, wait for the august low to be taken out. Does that make sense now . Travel has continued to go up. I was too cautious. I like to be able to say you know what, its over bought, markets been up, i fear september, but thats been wrong. Down here at the big board, guggenheim investments, what a year theyve had. Over at the nasdaq, ut energy, provider of oil drilling services, 9 30 on the east coast. Davids got some news. Lets talk a little dell, shall we . We know in texas the vote is going to take place on the decision by shareholders as to whether michael dell and his partner could take the company private. This is not a big surprise that, yes, that vote is going to be in favor of the numbers im hearing, 6535. Thats a preliminary vote count. That could chang a bit. Again, no one had any thoughts that it would not be a victory for michael dell. But we can tell you 6535. That should be announced within the hour that in fact dells shareholders have voted in favor. A lot of other things already in process. The company is in the high yield market or i should say the buyers are in the high yield market looking for their financing, 6. 5 billion there and theyre looking interestingly to start selling down their equity commitments. Remember, michael dell is rolling in his stake in the company. Hes also investing another 500 million, and then msd capital, which is the fund that holds a lot of his money and outside money, manage his money, he sold so much stock over the years, also committed to buy 250 million in the