The u. S. To the downside by almost 3 . Macro data has largely missed today. Everything from China Services pmi to german factory orders. Our road map with alibaba. The ecommerce giant files for what could be the biggest internet ipo in history. A peek at chinas fast growing ecommerce market and one unusual company. Record earnings for disney. Frozen sales continue their hot streak. Disney chairman and ceo bob iger will join nous a cnbc exclusive. Shares of whole foods plunge down 17 this morning cutting their outlook, profit disappointing the street. Well hear from Ceo Walter Robb first on cnbc. Fed chair janet yellen will head to the hill about an hour from now. Is she going to move the markets . First up, alibabas filed for what could be the Largest Technology ipo in history. The offer could value the chinese ecommerce site at more than 100 billion, raise more than 16 billion which would top the amount that facebook raised at its 2012 ipo. Yahoo stake in alibaba worth about 26 billion according to the Chinese Companys ipo filing, although softbank has even more than that. What a wealth of information was in this filing last night. Yeah. This is bad for the market. Why . Why . Because when you read this, theyve got a better commerce than ebay, theyre much cheaper than google, theyve got a better deal than facebook, they are going to if you own amazon you must sell amazon to buy this. A huge deal. Not enough money around. All those things are what i said or what Portfolio Managers will have to think. Plenty of people sell in alibaba and go away. I am telling you this deal, im going to give you why wouldnt this give you exposure to klein which by the way is a much more protected market, hence almost 50 margins but very little they have competition domestically there. This is a communist party. Youre buying shares in the communist party. Im sorry to be so jack is not part of the communist party youre saying high barriers to entry. Im just saying, ive never made a lot of money or told people to they could make a lot of money in chinese internet play. Its still china. Its china. You have to keep that in mind. I agree. Although what weve seen, of course, from this filing, we didnt get any we knew the top line growth, we knew the bottom line growth. Its fan nba plus. Fabulous. Everybody wants to chair this to ebay or amazon. Its not quite any of those things. The mall business is higher end retailers, wellknown brand names selling to the consumers and they take a piece basically what ebay does on its marketplace excuse me, amazon does on its marketplace business. Tabo is search revenue that alibaba benefits from there, millions of sellers. Youre saying literally, that there could be as far as waitings for Portfolio Managers say listen, this is my china waiting, not my internet waiting. Thats what you better hope. You would know better than i. Singles day november 11th. We talked about it this is ar ma stis against the chinese, 5 billion packages. Amazon would kill for that holiday traffic. People were enkourmz by the take rate being fairly low. Gross market value, merchandise value is very high. Huge. Going up sharply, and the take rate was lower than people thought it might be, which is actually somewhat encouraging for those who believe there will be more. Theres a lot of operating leverage in the business. I will also tell you by the way, there are people offering shares of alibaba right now, not through the ipo, but in the way that weve become accustomed to where you have insiders, somebody who worked as a lawyer for the company did Something Else, trying to sell, and comes with locked up stock. Right now im being told somewhere between 150 and 165 billion is the implied valuation of where that is being offered to people. Looming. Thats looming. Looming. Its looming because honestly, you see the pressure this morning. You know, every day you see pressure in the stocks. Im not crazy about the software as a disservice stocks. Its a little joke i make but those are the stocks coming down. Fireeye well probably get to that. But this is all in the area that is the great trench of Portfolio Managers. Ecommerce. Its been the weak part of the market. By that you mean why . You got not well charted . What . Yelp, went up, 6, 7. Tabblo software, data up 5 and closed up at 8. Twitter. Twitter. Well twitter was i got hit by some twitter on the way over here and im trying i see the lesion on the top of your head. Twitter is everywhere. You have to be careful. Like a virus. There are more hedge funds in midtown. I would be more careful there. Not a lot of guys selling and buying stocks around this neighborhood anymore. Its more highend department buildings. Steven king did a book called the stand. It was the twitter. Yes these are all companies you can say i cant own those i have to own alibaba. Its pressure. Not 20 billion kicking around in this market. No. We should, of course, not forget yahoo and keep an eye on those shares. We know and talked about endlessly as we talked about the potential ipo of alibaba for a better part of the year, that it has had the greatest single impact on yahoo share price. The company can sell up to 208 million shares. Unclear whether it will sell all of that. It certainly will sell at least 9 of the company of alibaba, if not more. It owns 22. 6 . By the way, something weve been pointing out here, lower than the 24 , but ive been saying it time and again, fully diluted, 22. 6 is what yahoo owns. What does it do with the money . Is it able to sell this stake in some sort of tax efficient way were not aware of. Continue to be key questions that are being asked. Its also an introduction to jack matte to a large degree. Former english teacher who admits he doesnt know how to code, doesnt know a lot about tech but had the chance encounter with jerry yang so many years ago that brought that stake to yahoo when you buy stuff do you get rooted to alibaba . Ive been routed to alibaba a lot for stuff i buy. Like wow, kind of out there. Im not kidding. You get routed to alibaba if you buy restaurant equipment, you always get routed to alibaba. See the picture of ma in the Washington Post . The silver lining. I tweeted saying our ceos dont pose like this. I guess we dont have it. Him striking sort of a thats jack ma. Founder and 8 cofounder of what will be a behemoth. Runs the business as well day to day. Ceo. Look. Obviously a significant owner as well of stock. Yes . Heres robert peck, happens to be one of my favorite analysts, downgrading ebay. If you read that s1, unfortunately i did because i have no life whatsoever, you just you want to short ebay and go long alibaba. And that may the case. Well see. Some talking about as much as 200 billion value. Weve talked again about this. By the way, lets not forget, there is a lot to go between now and when we actually see these shares lit the market. Right. Good point. Likely to be perhaps in august. Ive said that shows a great deal of hubris on their part given how slow things can be. Google did go public i believe august 19th. Right. And so weve seen that before. These guys are not doing a dutch auction the way google did. You can sell amazon from the hamptons. Youre allowed to you can sell amazon at the hamptons and buy some alibaba out there. Go to east hampton sell the amazon and go out to montauk where you go and buy the alibaba. You could. Im sure i could do it right there on the beach. Go to the lobster roll. Yeah. Or one of those surfing hedge fund dudes. Absolutely. Theyll come in this is going to happen. Can we do deal right here. Right. You can sell amazon on the jitseny and have it when you get to and rosen stein one could short it and buy it who knows. One further lane this will trade. A guy bought a house for 127 million 147 million. From shorting amazon, cover when he buys i hear he could have flipped it already. Lets talk about is this a great country or what . Disney reports what it calls the highest Quarterly Earnings per share in the history of that company, operating profits for fiscal q2 at beater than expected 1. 11 a share boosted by the blockbuster film frozen. Stay tuned. A live interview with disneys chairman and ceo bob iger later in the program. They hit every single part of this check check check. Strategy, the whole thing seems to be working quite well for disney. Only question is, the stock is has a high multiple. On 2015 does it have a high multiple . 16 times earnings with a market multiple. 17. 7. There we go, my question to you. The stock is going to be up this morning although were not talking about huge move up despite again what was a very strong performance. The only thing you might point to, and were going to talk about this. What . The frozen numbers. Espn was negative. Little wondering about the advertising market. Negative. I meant there you could make a you could thats a hair. At least a question mark here in terms of overall weakness. By the way, discovery yesterday, time warner, were stargs to thats a question i intend to bring up. Bob, giving you a little heads up here that we want to talk about that too. Decline low single digits. A call where a lot of people are saying is he going to frozen it. Frozen equal with avengers all tron like planet czarton or something . The Star Wars Episode 7 gets play, Hong Kong Disney land and a lot of technology. Lot of talk about through put, one of the stories of this quarter. Getting people in and out. Getting people in and out of the parks. Have you tried the new bonds . Is it good . You put your wrist in front of a sensor and youre in. Very little they were able to manage the crowd manage things much better and more efficiently so you make the experience a much better one for your customer. Talking about 40 growth in fast pass. They would not give specifics on the call about the revenue lift per se that theyre seeing as yet from the use of this new technology which costs them a lot of money to roll out in the parks. Couple quarters. It does appear to be a winner. Shanghai. Questions about shanghai and disney on the call. I like it. Oh, my gosh. Frozen came out in november. This was not a q1 story. And frozen merchandise is going to be big. This is a lion king franchise. I love this moment in the call, frozen is headed to broadway. Yes. This call Consumer Products up 16. Have you tried to get a frozen dress for your daughter . Candidly, no. It is not a joke. His daughters are a little older. Theyre still wearing the stuff from the market for elsa dresses one of the most competitive. Harder to get than than i can go to alibaba and get public cry for help. Public cry for help from carl. Get his beautiful twin daughters. We have it. We had to go through back channels but we got it. Go to canal street they might have it there. The point is with frozen they will make this point which is weve developed this incredible franchise, were going to obviously potentially have sequels here. The music, show, the rides, the Consumer Products and runs through so much of this income statement except espn where i do not expect they will be developing any Marketing Strategy around frozen. Captain america franchise. Thor. Its Procter Gamble in the hayday. Head and shoulders, its its crest, its every conceivable brand. Captain america 680 million. Who even knew. Aveng avengers was great. The guardians of the galaxy characters are coming out. Im quitting and working for disney. Thats it. Im done. Im going to leave im going to go work for disney. Do you mind . Espn. Lord knows you spend during espn. Go during the weekend and youll find cramer somewhere. Look, i work for nbc but im saying im jealous. And youre proud of it. Abc was not that strong. Still profitable. And i can tell you something, i do play for nbc and as far as im concerned, bob i love you. Take that. When we come back, jims interview with whole foods walter robb. A rough morning as its results and outlook take a toll on the stock. One more look at futures this morning, whole foods premarket, down 17 . Thats not that good there. More squawk on the street live from post nine in a moment. man speaking jananese shares of whole foods tumbling in the premarket. Posted fiscal quarter second profits of 38 cents a share, did miss, cutting their comp sales and Earnings Guidance in the wake of growing competition. The coCeo Walter Robb told cramer why people should still own the stock. If you look inside the numbers, theres still a five comp there, theres 14 billion Square Footage, 140 leases signed for the next bit of time. S theres a tremendous amount of vitality and in this company and i think over when you look through the shortterm head winds you see a tremendous longterm potential for this company. More of jims interview with walter robb later this hour. Comps at 4. 5, fouryear low, warned three times in six months, missed six out of seven quarters. I know. This was a rebellion call. This was one of those Conference Calls where the analysts outright questioned whether the companys being serious about the competition. Shortterm head winds what we heard from the sound bite. Is that the case . Theres a secular component. Whole foods decided its going to take on this industry. I asked whether its a last man standing approach. Theyre going to do it by offering value. This is just an algebra equation. Offer great value and going to expand a lot of stores. Wheres the give . The gross mar gibbs. Theyre just not going to make as much money. This is a wholesale resetting of whole foods. Sells at 27 times earnings. You will start thinking maybe you should sell like a kroger. Whole foods, people the walter robb will not be crazy compared to kroger although kroger came up in the Conference Call. The multiple is too high given the fact of the misses. People are its going to lack the Gold StandardGoing Forward. What people will say, i would rather shop there than own the stock. Jpmorgan stands by it, they say the right call is to remain overweight and that the era of tough comps is about to end. Yes. Thats true. They brought that up. The problem is theres a loss of faith here. When you actually see analysts go in and say you know what, guys i just dont know about you anymore, what happens, you get a sense that people theyre going to be ken goldman is a fine analyst and he goes, i have to admit this is really this is a very tough line. I have to admit im surprised by what i sper sieve to be a constructive tone on the call. Youre telling us our estimates for the next couple years are significantly too high, stock down around 14 in afterhours. Has whole foods, do they appreciate the world has changed. I have to be honest im not really hearing anything suggesting management is taking this situation as seriously as some investors want you to. Guys, in the annuals of the kind of things youre allowed to say on calls, this was, you know, guys, ive had it with you. I give credit to a company willing to come on, rain or shine, and we certainly appreciate that. We know plenty of ceos who only want to come on when the sun is shining. A reason to own the stock its that. They will win. But, you know, and theyre not going to destroy the village to save it. This is not vietnam. They are courageous great guys and it will bottom at some point. Just wont bottom today. Well get cate cramers mad dash as we count down to the opening bell. Later on as we remind you, exclusive with disneys ceo and chairman bob iger, reasons to smile after frozen contributed to the earnings beat. One more look at the premarket. Well still get to aol and fireeye and zu lily. There are Success Stories out there. Were back in a minute. Could tr. Unitedhealthcares innovative, Simple Program helps moms stay on track with their doctors to get the right care and guidance. anncr vo thats health in numbers. Unitedhealthcare. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. 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I love the Stephanie Wolf carpet ride alibaba. Lets talk about where america has real growth and its in the Permian Basin in texas and that is pioneer, pxd, and it is in eagleford. Look at this. You know if it doesnt take out this top yesterday we were talking about it, i think yesterday, eog. Delaware basin which is permian and eagleford, pioneer is primarily permian. The permian basis is texas. Weve gotten a lot of oil out there. It made 1947 was the midlands and owe des sta. Odessa the richest city in this country. Those of you not following you for years talking about what would be your they think most important contribution to people making money, nonetheless, take me back, whats going on in the permian. Mr. Sheffield from pioneer says its the second Largest Oil Field in the world and were believing he might be right. Finding everything in there he coul