meeting next week. >> hertz and darden moving on pressure from activists. darden shares higher in the premarket after reporting earnings. >> the iphone 6 available for preorder if you can get on the website where couples were turned down after apple.com went down early this morning. activist investors are making news today. hertz reaching an agreement with carl icahn allowing him to choose three directors. darden under pressure for starboard value which had 300 slides with details of ways to improve olive garden. reporting first quarter results today that did beat. >> i think the overall story of the power of activists and the fact it continues to increase in our marketplace is probably the key take away in many ways. also stories today about third point run by dan lobes ability to raise $2.5 billion in a very short amount of time. mostly from their continuing investor base. activists on both fronts of the business, in terms of influence with corporate america and the ability, most important perhaps for them to raise money from their investors because they believe in the strategies that they're pursuing. that it's bigger take away. we can also talk about hertz and darden specifically. >> i love the improvement in darden now that they seem to be focused on red lobster. is there a real nice deal. they can only focus on olive garden. there is a nice progression. olive garden was down terribly and now it's making a comeback. that is the swing factor. the pressure might diminish. >> perhaps it will. they are still going after the entire board of directors. >> yes. >> the activists of darden. jeff smith. darden said we'll have eight independent directors. there's been a battle going on for some time as we get closer to that meeting. why you put out a 300 slide presentation is beyond me. >> to what degree do these activists know about running some of these companies? >> thank you, jc penney activists. look at this. in the third quarter, remember we are in the first quarter of 2015 for darden. in the third quarter 2014 they did minus 5.4%. now they are doing minus 1.3%. that is a monumental switch, people. they are doing a lot of interesting, i think, promotions that are getting headlines. are they flailing? i think a more focused company without the anvil around the neck of red lobster is capable of doing more things than we thought. now, the activists could come in and maybe they've do the danny meyer. i don't know. when i asked him about red lobster and olive garden, i said what do you think about them? he said they're fuel. i said you mean like diesel fuel? he said, no, low acting. it was like, wow. if they can get it to be less than fuel and more food. >> yesterday you were critical of any retailer with negative comps. you are saying the bar is so low on darden. >> yeah. i think a progression is what we want to see. i love the way olive garden is turning here. yes. when you see -- now everyone is all excited about lululemon. positive article today. i still see minus 5. i need to see minus 3. the progression in olive garden minus 5, minus 1.3 i need progression. history is one step forward, one step back. >> on hertz, way can add there, again, points to the power of particular activists, the bigger by far which is carl icahn, as we all know. the fact he was able to get three board seats that quickly. 8.4% stake in the company, no doubt significant one. they did not have a vote for months and months. the annual meeting is the next chance he was going to have. yet they decided to do so. the conversations were people behind that decision. it was simply carl can be a disruptive force even if there is no near-term vote, particularly for consumer company that why battle. three seats is a big give-up. on a nine-person board, that is a big win for icahn. we'll see if it has an impact. the company with an interim ceo. there did seem to be belief he was the guy they want to go with, scott thompson i was hearing not the guy because of a complex organization. we'll see what happens. >> wait a second. in the article, it's very clear icahn is going to have people part of the choice. i have no -- the insiders here versus scott thompson who turned around dollar thrifty. >> i know. >> then sold it. i have to believe he's icahn's man. >> it's all hedge funds in this name. we'll see. broader markets. markets set to open slightly lower after today's retail sales number. rising 0.6% in line with expectations. some rebound had been expected in august sales after july's subdued reading. upbeat retail sales number could support stocks into next week's fed meeting. we touched on retail when we mentioned darden there. >> still, it's interesting to see interest rates finally go up. some piece of data comes in. you don't feel like they are set just by france and italy. obviously, the bank stocks have slowly and quietly been making a move here. bank stocks don't go up the way -- you don't see pnc go up 10%. what does happen -- >> salon might go up 10%. i'll save that for mad dash. >> excellent. >> i watch the banks. and jpmorgan. >> we should mention he has finished his treatment and expected to host the conference call for the third quarter, having been diagnosed in july. our thoughts are with jamie as always. >> absolutely. marion lake with the apple. it might be like that when we speak to whole foods. how could they keep it a secret? >> they kept to it a small amount of people. they knew it was time to talk about it. >> as an old fashioned print reporter, i said if i were on that beat, i would shoot myself if i missed that story. great piece of detail. >> ground breaking interviews. target ceo talks to cbs this morning going for the broad coverage. >> we become cool again understanding trends, anticipating and meeting their needs. i'll go back to the core brand positioning, expect more, pay less. it's making sure there is always that balance. we might have tipped the balance towards pay less. >> interesting comment. >> yes. talking about getting the excitement back, which is good because target was exciting. what are you doing? i said to my kids, let's kill time before the movie. let's go to target. you don't kill time at target any more. this was inspirational. he was at pepsico. he's a brand guy. i think that it would be, the pizzazz is starting to be reflected in the stock which is up substantially from when he came in. people do forget breaches. i think enough time has passed since the breach. i like what i hear from this man. i like what i hear. >> the breach has been overshadowed by the latest breach from home depot. their breach fades. >> that's true. good piece by the former nucor ceo. can you imagine wall part having mojo? >> i can't. >> no mojo? >> i can't. note the way you're talking about it. mojo. >> one thing interesting on target, they are going to give their employees ipod touches to help manage inventory, putting more ipads in the store as apple's enterprise play. >> if you want to be cool, you call apple. you don't call michael dell. love michael, love michael, but you call tim cook and say i want to be cool, will you send me some apple equipment. >> right. >> then youthful. youthful. see this thing i have here? hewlett-packard. i love hewlett-packard. i love mick. my kids say, dad, that's a typewriter. get me a pc. >> by the way, apple fans can now order, preorder the new iphones. the devices officially became available midnight pacific. demand was so high the apple store crashed with users reporting slow low times. some customers were forced to order the devices tloo you their carrier sites. you did see comments saying have better luck going to at&t. >> high quality problem? sorry. high quality problem. david's interview yesterday with sprint, has moved sprint and it took -- that's talking about you need 100 caterpillars -- bad numbers this morning -- but you need a huge amount to move sprint. what i heard, what i liked, apple. >> right. he was enthusiastic about the launch. as you would expect him to be. >> he is a billionaire. he can say whatever he wants. >> true. he is. marcelo claure, 43-year-old billionaire decides to move to kansas city and run this company. interesting. >> mark gurman of 9 to 5 mac. >> the guy fell asleep listening to the youtube album and the guy in charge of the accurate store doesn't have the accurate apple watch time piece. >> word is from -- i'm a huge supporter of apple, but the actual presentation of the apple i watch, one of the reasons the stock went down not just because of the talk of the fed was people felt, people in the know felt that they didn't show you much. then people are starting to be concerned why did they have the video instead of just an actual -- it is initeresting, right? wouldn't they have a prototype? i'm know apple basher. i've said, don't trade it, own it. think about the presentation. it was bells and whistles. it was sizzle, not steak. >> still got that watch on. >> the bright one has a little more life. >> on the wrist. >> the co-ceo of whole foods will join us for a live exclusive interview and talk about the partnership of apple pay, rise of grocery delivery and a lot more. one more look at the premarket. moderate weakness here as we go positive. dow needs 88 points today. t digital video service to compete with the likes of netflix by the m middle of next year. making those comments yesterday at the conference. this is a theme you heard in many of the presentations, not just for mcadam, but more so for the chase carriers or jeff bukus. would they be willing to offer their content for these over-the-top services? we should explain we are talking about get your content via broadband or via your wireless phone, not through cable, so to speak. the first one out of the box on this was charlie ergin at dish who signed that deal up with disney that we noted. it's still in progress in terms of figuring out what it is. i would refer as much to mcadam's comments yesterday as to ergen from a conference call last month. he said we are missing a generation. they go on the internet, watch something for free, subscribe to netflix and smaller percentage subscribe to hulu. you could get people in the echo system downsizing, meaning cutting their cable off entirely or satellite. we have to balance that and see how it plays out. that's why you see us go relatively slow. we know the ott model is a better model for advertising, as well. this is the future. >> no doubt about it. i turn on -- last night i chose not to watch that miserable game. i'm watching stuff on espn, candidly related to controversial issues we are hearing right now. i'm watching on my pc. i'm clicking on tweets and watching clicks, then going where i have to go. that's how i watch my tv. >> you are watching the way a 15-year-old watches now. >> it's the only youth i have left in me. >> that's when you get to conversations about the bundle falling apart eventually. what that will mean for the economics of the overall miss. >> i care tremendously "mad money" is on 6:00 to 7:00. jim, i'm going home, cnbc.com. this is it. this he watch it when they want to watch it with the exception of the nfl. the nfl is the only thing i watch -- now the nfl, i'm watching the other story in the nfl. when i care again about the nfl, i will watch it realtime. >> absolutely. the other thing coming soon is that alibaba ipo. kayla joins us about that issue. >> as we get into the home stretch, every detail how this deal is shaping up is going to be important. there were headlines this morning that bankers are planning on closing the books early. investors now have a sooner deadline to actually tell them how much they want to be allocated in this deal. if you had a meeting with the company here in the u.s., you will have until tuesday to place those orders. if you had a meeting with the company or are in the process of having a meeting with the company overseas, that's wednesday. that is a day earlier than expected. demand, as we reported, is incredibly strong on the institutional side and also on the individual investor side. just a stat i know jim will probably salivate over is that nearly 40 large institutions, jim, have placed orders over $1 billion. remember, this is supposed to be a $21 billion deal. when we talk about deals being oversubscribed, you rarely know the extent. the fact three dozen firms already nearly doubled the demand for this stock. >> they should put in for way more than they want. >> you circle for 10% of the deal is the way it goes. these guys all look for 10%. yes, they could price the deal today. they ought to price it monday. they shouldn't wait. >> bankers are talking about the fact there is already demand to price this above the existing range. $60 to $66 a share. they will have an opportunity if they choose to to formally raise that price range if demand is strong. that will happen over the weekend if they feel they need to do that. >> do you think it can price above facebook evaluation of $200 billion? >> no. i don't think so. >> that's key. that's the level i've got to walk away. >> i don't think they want to go there. >> my favorite stat is the $20 billion is more than total u.s. issuance in all of 2009. we are coming up on that lehman anniversary monday. >> this is good news for the rest of the market. not every stock has to be sold. that had been my worry. these people, leon cooper, the names you are hearing. >> most of them were at the meetings this week, not sending deputies, showing up in person because they wanted to meet with the management of this company and hear how they are changing the face of e-commerce. the big question is whether the retail investor will be able to get into this deal. >> not going to get it. >> no. there will be some individual investor representation here. they have a friends and family program of the company. that's going to be about 6% or roughly $1.5 billion. >> who is a friend? >> directors of the company. >> i know. >> 6% of the deal, friends and family. >> is it going to be a go pro? >> no. i doubt it. >> that big to go up that much? >> great reporting. >> kayla, thank you very much. we'll get cramer's mad dash. new york state is jump-starting business with startup-ny. an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov dad: he's our broker. he helps looks after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm. it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement. i love that song. it is friday and time for the "mad dash." we have six minutes to the opening bell. >> the iphone 6, a lot of companies write apps, they are very excited. they've got the specs. it's all great. there were graphics of the watch and video. they had a demonstration of the actual watch. that one is getting harder to find more details and data about what can be written. that's all i'm saying. i think it's going to be a big hit, too. they did have a demo. mostly that presentation was graphics. that's important. okay? let's move on to what once was, we used to kiddingly say in jest a bit, tea of this market. >> mary dillon comes in and takes the guidance down. it was a shocking conference call. comes in december 5th conference call and lowers the boom. suddenly everyone is saying, wait a second. maybe it is a house of cards. she has now been put to work. 9.6% comparable store. that's over 8%. this thing is back. it's bigger than ever. sales grow 22%. there is amazing october analyst meeting coming up. this will be the growth stock, again, in retail and they can't get it. it is not alibaba. >> lumber liquidators and tractor supplies can't be far behind? >> they ran into the buzz saw. it was home depot. all th ulta is on seam zamazon. you can't smell perfume on amazon! ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. you are watching cnbc "squawk on the street." we'll get the final opening bell of the week here in 1:15. a lot going on as we prep for a fed meeting next week and the alibaba ipo. some estimates on q-2 gdp are close to 5%. >> then you start hearing that's when the considerable amount of time has to pass. that's why people are waiting for the fed to get out of buy mode into flat mode. be careful. employment is not so hot. will that be peak gdp? >> don't forget the 30 hour rule. a lot of part-timers. a few seconds early there. that's the opening bell. at the big board today, the return on disability groups. celebrating the launch of the barclays return on disability exchange traded note. did you guys tackle biotech in a big way last night. >> isis, i don't mean to make light of it, but isis is an unbelievable company. people have to recognize it. i like that company so much. 31 different drugs on the horizon. really terrific. isis has the real momentum. if people want to play the next generation, they want to be very much in acadia, which is parkinson's. a very important anti-psychos sis drug could work for alzheimer's. i like akillion. they are playing fda roulette. there is no fda roulette with isis. we are going to fee tour one a week. these things take forever to study. >> you tweeted, you did not watch the football game because you had to study up on ads which is the number one gainer on the s&p. >> good. i've been asking why is alliance weak? i love the company. i am very surprised. they bought value-click. this is a credit card company, affinity card. better e-strategy and going to cause a lot of people who have been selling and shorting the e-strategy stories. there was a short conversion in conversant. maybe this frees it from whatever was ailing it. >> it has not been a good week for the integrated oil companies or the commodity itself. what is this telling us, if anything? >> iea cutting their global demand forecast for three straight months. >> i freaked out about that. they are saying all demand. i think that we are seeing the disintermediatation of west texas in this country. we have so much oil we are starting to focus on brent. people are underestimating how much oil is being pumped into this country. people are saying you are only back to where they were 40 years ago. it's meaningful. we are using less, producing more. china is using less, not producing more. europe is in a definitive slowdown. they did not come offline in iraq as people thought. i just think this is the major story is the decline in gasoline. talking about a job creation that is magnificent. lng would supplant diesel. >> we are flaring more natural gas in this country than we actually use. that is an untold story. environmentalists are all over that. be aware it's our, our supply, their demand putting a lid on oil. >> meanwhile what do you do with the likes of exxon or anadarko or any of these names that have been suffering? >> which gets journal page one treatment on russia and what a knock they are taking. >> i happen to believe the ones that have yield protection. the anadarkos, the occidentals, apache, no yield support. people base all their numbers on both the dollar amount of what they sell their oil and of course the fines, how much the production growth. numbers people are worried, come down. i wouldn't short these stocks. at any given moment someone has to buy one of them to get a little bit of production growth. these are great american companies. noble, great american company. just understand oil's got to settle down or numbers are going to come down for a group finding oil. too much oil. >> speaking of yield. ten-year just hit 2.6%. that takes you back to july 7th. >> this is how bank of america gets to $18, jpmorgan gets to $62. this is it. this is xlf territory. option buy. financial etf. you don't want to pick which one because you are afraid the justice department will knock on the door midnight, fbi, kick in the back door. >> we haven't mentioned some analysts, barclays upgrades netflix. they say valuation is more fair because it has not kept up with its peers in this recent rally. >> the stock is only up 7%. i read through this one. it was just a poor justification for why he missed the rally, frankly. they are talking about at one point talking about sky deutscheland and whether "house of cards" will play. come on. get onboard. the train left the station a long time ago. did you hear that? i'm getting cheered for that. that's for barclays. >> shares of sprint, just a clip $7. the first time in a while that stock has seen a 7 in front of it. marcelo claure saying value proposition is what we are going to offer the consumer. we'll see. we'll see if that is able to maintain. >> you sound skeptical. >> they've got a hard road ahead of them, no doubt about that, in an increasingly competitive environment. the fcc's opposition, full opposition to a deal that was never announced, t-mobile and sprint, seems to be justified on the pricing front from what you are seeing right now on the strong competition between these four carriers. the two mega and the other two. >> if i were apple, i would be cheering. because what do you do to get customers? you offer good service. you offer good spectrum. you offer an iphone. i think what i heard yesterday was that sprint is going to try to take share with the iphone. >> iphone for life. >> $20 more a month and you get a new one every two years. >> i'm going to sign up. i might switch. verizon has over-the-top, they might have "house of cards" five. >> we should mention best buy up because of radioshack problems. >> talking about what happened with best buy when circuit city went out. there was a good moment in the marketplace. don't get too excited. i understand they have a phenomenal amount of sales. we don't know what kind of filing they may or may not have. >> if it's 11, they may reorganize. >> remember bed bath. you had to buy it after linens and things. >> circuit city was a 7. it was good-bye. >> with all that, we are back to 1994 on the s&p. bob pisani on the floor. >> you are referencing a higher yield on the ten-year. retail sales came in line but upward caused a yield up on the ten year. you were talking about oil and commodity weakness. we've been talking about it all week. the key point, and remember, the dollar strength has been a real problem for commodities. that may be the single biggest thing. people were looking for stability in commodities. might be hopeful if we can see some stability in the dollar. of course, we are dealing with a weak euro and a weak yen. those are the major factors dealing with that. that's the important thing. on the supply side, i think jim's right. the world is using less oil. china is using less oil. partly less demand. partly using it more efficiently than we did in the past. there are big trends going on here. on the supply side in the united states, there is an i max crude oil down at $92. lower price is a huge help for the stock market overall. we may be number one in the world. that is great news for our energy independence. all this is good news for the stock market, good news for the consumer, good news for the security of the country overall. as for oil stocks, everybody keeps asking me about the shale plays. they had a heart time this week. i talked about whiting and diamondback energy. all down noticeably on the month. these names aren't expensive once you get oil down in the $80 range. sometimes these shale places become iffy. i think people are picking at these stocks right now because, i'll be perfectly blunt with you, where else are you going to go in the world where you can get 20%, 30% growth a year in terms of production? that's what a lot of these companies are doing. even if prices are down 30%, earnings growth would be substantial when dealing with 20% to 30% growth in year in terms of production. as for alibaba, watch what's going on in some of these names here. the internet names. chinese internet names this month. don't say there is no effect from alibaba. i could see weakness across the board. somebody selling something. my guess is they are going to buy something around that. kayla had a good comment this morning about maybe alibaba stopping taking orders for its ipo. people indicated to me deal timing has not changed. pricing thursday night for friday is still on. the road show is not ending, but may happen now is the high end of that range, $66, that's covered. it's quite likely many people seem to think they are going to come back and change that deal size and terms. that's quite likely. maybe we will see $70. back to you. >> thanks. when we come back, an exclusive interview with the co-ceo of whole foods. we'll talk apple pay and turning up the heat in the grocery delivery waters. later this morning, meet the developer behind the first game created for the apple watch. so's his serve. but like up to 90% of us, jim falls short in getting important nutrients from food alone. jim, here's $2 off one a day multivitamins to get key nutrients you may need. go to oneaday.com for savings. research suggests cell health plays a key role throughout our lives. one a day men's 50+ is a complete multivitamin designed for men's health concerns as we age. with 7 antioxidants to support cell health. one a day men's 50 plus. i'm spending too much time hiring and not enough time in my kitchen. 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[ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. at a special site for tv viewers; i make a lot of purchases foand i get ass. lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. whole food's going team apple. it is one major merchant that plans to launch apple pay at every register this fall. with its recent partnership with insta-cart, buying grocery is about to get a whole lot easier. >> good morning, jim. >> let's get to it. you are going apple and insta-cart. what is your edge? >> we've got -- first of all, gives customers a lot more choices. i think our customers want those choices. we are outfitted with the tech following to all the stores. we are ready to go as soon as it is released. that gives us a lot more choices. >> whole foods, affinity, can the apple contact can you do something with the new apple system that allows you to do the affinity program we've all been waiting for? >> we integrate that with the apple pay. we are starting to pile it in princeton, new jersey, store this week. as that continues to test, we'll be able to integrate knows two together. >> how about the national ad campaign you teased? is that about to roll out? a lot of people want to see reinvigorated sales. this could help. >> it can help. it's coming out in a few weeks. we'll leave it at that right now. we are all very excited about being able to talk about our values as a company. it will be out shortly. >> will this be more like a chipotle campaign where it's why you need natural organic or what exactly whole foods does versus the other guys? >> we are going to talk about who we are as a company what are the choices we bring to customers that other grocers do not? we are very proud about this. looking forward to seeing how this comes out. with the digital choices, here we are this week. we had instagram announcement monday which is 15 cities. we see more cities and more product categories in the future. apple pay suggesting customers can shop more conveniently and securely. the wine club we announced this week coming out in a few weeks. we have customers with access to beautiful wine choices curated by our master sommelier. you see a new era of choices to hopefully market customers. >> you raise that. the kroger xrobl yesterday. kroger having pretty good 4.8 comp store sales. they have insta-cart and apple. i thought it was an interesting moment when rodney mcmullen said people are coming back to a store that has more than just, and they are applying organic and natural. they want one stock to do a lot of things. are you feeling the pressure of kroger? >> we are feeling the pressure to continue to bring our customers more and more choices. that is what we are doing. we are growing as fast or faster than anybody. as we unfold these new choices for customers, and i think we are the number one most requested grocer on insta-cart. i think this allows to bring whole foods to the world. >> any projections? you've done a lot of work on this and what app pail could mean, what percentage of transactions are apple pay in a year or two or what they might contribute to comps. >> we are already set up and ready to go as soon as the phone comes out. this looks to be the next step forward, you are out running, stop in for a smoothie and take care of business like that. it offers a new possibility for secure sales for the customer. hard to say exactly what it's going to result. looks like this has the critical mass others before have not had. >> we are beginning to hear about rival systems. currency is something else walmart is onboard with, gap and 7-eleven. why did you go apple's way? >> we like the partnership with apple. we like the assemblage of people they put together to put this thing together. it allows you to tie onto a total eco-system. they have 800 million of customers and credit cards set up this their system. it makes sense when somebody say they can integrate apple pay and things they are doing within the system, it's a good association for whole foods. >> i couldn't help but notice when we put the chart up of kroger versus your own stock, huge disparity. not to make light of the great success your company had. with that decline in your stock, does that affect morale at whole foods? >> what affects the morale is the narrative that the company somehow is in trouble. that's just not the case at all. the morale at the company is very strong. as we look towards the fall we have growth in a good place. we've got the marketing campaign as jim referenced coming out. first steps happening with our road map, digital choices for customers. the mood inside the company is we understand that the short term head winds have been there. we are looking forward to show folks we are back, moving forward and offering lots of new choices for our customers. >> walter, on the last few conference calls, i've been down. down meaning you've been disappointed with yourself. do you think the next conference call this will be the walter robb who says we are back, these are the numbers you wanted? it is tough. i think you are the greatest merchant of this era in the supermarket business. did your walter robb say he is disappointed in the company? >> we'll take it one step at a time. there's a lot of things we put in place we talked about on the last call. the growth, the refresh efforts, marketing efforts, price investments, value investments we are making. >> if you look for the last five years, you compare the two companies, whole foods has done extremely well. i think whole foods has a bright future. you start to realize, see us realize our long-term potential in the marketplace. >> thank you, walter, for coming on. >> thanks for having us on. >> walter robb, co-chief executive officer for whole foods. he's been terrific. >> he always comes on. it's great. >> maybe that's the most important thing. >> a lot of discussion about how the demographics of his business and apple's do overlink. >> i love to shop there. >> breaking news on consumer sentiment. that ten year back to 2.6% is taking steam out of stocks. i'm type e. my golden years will not just be gold plated. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if." and serta mattress sets. save up to $300 on sealy posturepedic even get 24 months interest-free financing on every tempur-pedic. but don't drop the ball. mattress discounters fall kickoff sale is ending soon. ♪ mattress discounters time for cramer and "stop trading." >> a lot of people open their handbags. look away. ubs talking about how timberland could be upside surprise. north face on fire. pvh and said jeans are back. vf, i smell big upside surprise. cotton prices have plummeted. they are a giant buyer of cotton. coalition of brands, they call it. there is a coalition they've been able to put together without wrangling. >> about ten seconds we'll get consumer second. we've gotten august retail sales which came in inline. let's get over to jim. >> it's a big deal. we are trying to make it two good numbers in a row to make us feel good on a friday. 84.6 it comes out. it is a pretty good number. what the market is trying to do here is bolster the case for the fed to change their dialogue from wildly dovish to really dovish next week. this goes a long way in doing that. stock market was under pressure as it came in. it's ignoring this number, trading a little weaker. right now doesn't seem like it loves good numbers all that much. ten years came in 2.6%. they've been creeping up the last few days. this will probably make them creep up more. back to you. >> great work all this week, jim iuorio. he raises a good point. do we need to worry about good data now? do we need to start worrying more about the ten year? >> are we in that moment where good news is bad news? i would tell you that if you trade on this, which people have done for 5,000 dow points, you are going to get a couple of air pockets. we haven't had one lately. you will say what was i thinking? this is a data-dependent fed. we could all freak everybody out. i'm not freaking anybody out on this. good news is good news in my life. >> what's coming up on "mad" tonight? >> we've got our game plan. talking about shrink to grow. i am going to explain why laser light focus when you shrink to grow does work. david is laughing. people love when i say something that is absolutely outrageous and then david gives me a, i don't know, johnny carson look? >> i love that we have popularized shrink to grow. one banker mentions it to me. it's a shrink to grow strategy. >> or grow to shrink. i will leave this week with one note. the perfume counter of ulta salon, i'm going there tomorrow because it's -- got to see it. >> eagles play monday night, by the way. enjoy the weekend. >> tuesday is going to be a little rough morning. i will play. i always come to play. >> see you tonight. when we come back, an exclusive interview with the ceo of activision blizzard. the company calls the new game the biggest launch ever. [ males was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better, airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪ there's a difference when you trade with fidelity. one you won't find anywhere else. one-second 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? didn't think so. open an account and find more of the expertise you need to be a better investor. that's keeping you from the healthcare you deserve.. at humana, we believe the gap will close when healthcare gets simpler. when frustration and paperwork decrease. when grandparents get to live at home instead of in a home. so let's do it. let's simplify healthcare. let's close the gap between people and care. in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. jim iuorio with business inventories. >> this one reads wholesale manufacturer and retail inventories. it was right on the number we expected. that's good. nothing to spoil our perfect record. stock market is under pressure but where it was before. down six handles. ten-year yields came into it around 2.6% and stayed the same. back to you. have a good weekend. >> jim, same to you. jim iuorio at the cme for us. sanctions rolling out against russia. >> good morning, carl. that's right. president obama yesterday said new sanctions would be coming against the russians. now today as of right now, the u.s. treasury has matched what the europeans did overnight, adding some additional sanctions including adding russia's largest bank to the sanctions list. five state-owned defense technology companies in russia. also this is an interesting one. blocking the exports of goods, services or technology to support russian deep water oil exploration for five specific russian companies. a couple of things there to watch on the russian sanctions front as the obama administration continues to ratchet up pressure here to the russians over the unfolding ukraine situation. >> thank you very much. let's get back to the markets. we've not seen a move like it in the dollar for almost two decades. heading for a ninth straight week of gains. interest rates breaking above 2.6% on the ten-year yield in the last 30 minutes. in just two weeks that yield moved up 25 basis points, 0.25%. next wednesday the fed will rubber stamp its own tightening next year. let's bring in david kelly and lindsey piexa. welcome to the program both of you. david, i guess from your point of view, this is a long time coming. does it feel like we are beginning to shift to a different place now? >> yes. i think we are seeing a bit of an indian summer in economic growth here to start with. all the economic numbers we've seen in the last month have really been adding to growth. we now think we'll do about 4.5% for q-2, probably 3% growth for q-3. this lift-up in economic growth should accelerate the fed's time table here. >> david, the question for many is how rapidly could interest rates rise from here? i guess to answer that question, you have to understand why they were so low to begin with. do you think they were signaling depression or people got so burned trying to short the treasury market for so long? >> neither of those really. i think a lot had to do with the mismatch between supply and demand with central banks around the world swamping the markets with liquidity. low rates in japan and europe were acting as an anchor. that won't be sufficient to hold long rates down if the federal reserve moves rates higher. >> lindsay, what are you telling clients? >> i think there is still a lot of time and patience what the federal reserve is doing. there is speculation the fed will think about removing that considerable time language which is assumed to be a hawkish chill for the fomc. they are moving the barrier for erring on the side of caution or keeping rates lower longer should the economic data disappoint. the fed still has a lot of wiggle room. they are keeping an eye on the data. we have taken steps in the right direction. we saw this morning's retail sales report suggesting the consumer is on better footing we than we expected. employment gains not translating to wage growth which is not translating to a robust consumer? >> how are we shaping up for third quarter gdp? looks like the data has been better and retail sales is icing on the cake. jud >> that's right. we will get 3% growth in the third quarter. you saw last friday's employment report. we don't have a lot of capacity, this economy. there is not that much cycle in the labor market. there is still this falling labor force participation rate. that means that 2% growth we could handle without too much tightening of the labor market. 3% growth is going to push that unemployment rate down faster. i think if you look at workers' production and nonsupervisory workers, we are up to 2.5% year over year growth in wages. i think you will see more main street retail spending. wage gains for the average worker is good news, but will push the fed to move faster, as early as march next year. >> let's cut to the chase, lindsey. that's where most viewers are most concentrated rather than the economic theory. if you believe in this market, if you are a bull in this market, you will argue we are at these levels because of market fundamentals. that earnings justify where we are. if the dollar continues to gain, and therefore, earnings per share in dollar terms continue to fall, where does the market go? >> i think there is a bit of a disconnect between what we are seeing in the market and the fundamentals. as i see them much weaker than the previous guest suggests. i continue to see very lackluster growth as we head into the second half of the year. again, consumers are taking a step in the right direction, but against the back drop of very minimal income growth. there is very limited upside as of right now the consumer can continue to ramp up spending. >> what is the view where the stock market goes? >> the problem is, you can have a rising stock market or you can continue to create shareholder value without the fundamentals of the economy improving. we continue to see debt refinancing, share buyback. mergers, acquisitions, which i think is the vast majority rather than a reflection of the fact that we are seeing fundamental improvement or expectation of fundamental improvement in near term. >> there was a time in the second half of 2010, first half of 2011 that every time the dollar fell, the stock market would gain. are we going to reconnect with that in the opposite direction, do you think? >> i don't think so. i think the dollar movements then had a lot to do with geopolitical worries and commodity prices. this is a dollar rising because the u.s. economy is improving faster than europe or japan. i think it is an economy where confidence will rise. i think money will move into the equity markets. i don't think the stock market is expensive yet. i think it will end up there. i think this is generally still a positive environment even with rising interest rates. i think it's a positive environment for equities. >> have a great weekend both of you. thank you for joining us, david kelly and lindsey piegza. >> darden shares are up. that didn't stop starboard investors trying to take over the kitchen yesterday. hedge fund published 300 pages worth of advice in its latest transformation plan. this is an interesting one to watch. darden shares are up more than 0.5%. david, you have a hold or sector perform. what was a big deal 4% revenue growth or that all you can eat pasta for $100 they released? >> i think the activists probable wriy had the greatest because they pre-released everything we saw today, darden did. investors are dealing with twin options how they vote on the board and how they view the activist proposals in 2 that long presentation you mentioned, versus do they believe olive garden is already turning under this existing management team? >> which is it? starboard says it can unlock $19 to $38 per share in value. more so with its plan it laid out. do you buy that? is that the better option? >> i guess the short answer is we believe there is up side in some of the things they talked about. there will have to be reinvestment that goes along with that for darden to turn around. plus valuation is full for darden. the pass through of cash to share holders in the form of dividends and pass through to fixed costs in the form of rent and interest costs is substantial for darden. if you are going to talk about a assumptions used by the activists our reit people believe are too aggressive, they are not right. that is a key problem with what the activists are saying. if they are going to cut costs, olive garden needs to reinvest that in the menu to generate sustaining sales recovery. >> looking at the year over year advance on retail sales at food services and drinking places. 7.1%. i wonder how sustainable that is and if people are eating out more because it's more of a bargain relative to groceries. doesn't that give olive garden a rise in tide? >> that government data when it comes to eating out does seem to be heavily revised later on. the data we tend to follow more closely tends to be some of the indices you get from the public chains collected by. likes of the mpd group or nap track. those are showing that the industry is up slightly as of august. august was a little bit better than july. overall this summer was a weak one. these chains make a lot of money during the summer. this summer was not good given the fact that gas prices are where they are and this recovery is supposedly happening. the fact we are still negative, traffic per restaurant is surprisingly weak. >> just on that theme of what the diners want, macroconsumer trends, you and i talked about this so many times. how do you bet on a recovery in darden, which more than half of it is olive garden, when consumers are telling us they want fresh? they want chicken from chipotle that tastes like real chicken. it's different from this middle-income targeted olive garden restaurant? >> olive garden does better than average when it comes to millennials, which tends to be the biggest problem with casual dining. chains are suffering from walking away of the high-income millennials in particular. some is dietary. when talking about a pasta chain like some of the fast casual diners that are doing relatively poorly versus a chipotle, they have high carbs at the core. that puts them out of favor and viewed as lower food value. one of the things olive garden will have to look at is reinvesting back into the protein, getting the food value in there to go along with the cost-cutting they implement from here. >> owners of this company are faced with a choice. they go with darden, which has four new nominees and willing to take four from starboard, so eight new directors, or go with an entire new board. which would you tell them to choose? >> the activists own a little less than 9% of the company. they are trying to get full control to create change. clearly investors are not satisfied. that's one of the reasons why there's been a change already started at the top. clarence stepped down and they have to find a new ceo. the question investors will have to face is, do they want to give full control or do they believe a new board turnover, which darden is including in its slate, will be enough? our thought is that change is happening, that will be good for darden. right now, the stock is already quite full. we don't think increased leverage is on the table. that does not make any sense right now for darden. so we are neutral object this name. >> maybe they need more never-ending pasta passes. that was a big success. thanks for joining us on darden, watching the stock move higher. david palmer, rbc capital markets. will scotland vote for independence next week? "the new york times" jim stewart's take on the economic impact. the family crest in his living room. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's 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 there's a new way to work. and it's made with ibm. oh, he fakes a handoff quaand he's making a run..... 'cause mattress discounters fall kickoff sale is ending soon! hurry to save up to $300 on sealy posturepedic and serta mattress sets. even get 24 months interest-free financing on every tempur-pedic. you're going to love their football field-size selection. this calls for a little touchdown dance. mattress discounters fall kickoff sale is ending soon. ♪ mattress discounters welcome back to "squawk on the street." check out sprint. shares soaring as it was upgraded from outperform to market perform. new management and network changes make the company a long-term investment opportunity. this as sprint unveiled new rates for the iphone 6 including an installment plan with no money down. that stock trading up more than 8%. back to you. >> morgan, thanks a lot. it is a big story not getting much attention from the markets now. next week scotland will vote on a referendum of independence. voters supporting to keep scotland in the uk clawed back to a tiny lead. jim with, great to see you. ten generations scottish? >> ten generations since they came to america. >> wow. >> the blood line, scottish blood has been watered down a bit. i realized walking in today i should have warn my stewart tartan tie. you can choose from five different tartans. >> black, royal? >> hunting. >> the point you have more than a passing interest in the story. what about the numbers? >> that was a jolt. to be honest, having all this scottish lore in my background, i was all for independence. go for it. wait a minute. i haven't looked at these issues or thought about it. fortunately i found an online book by sir tom hunter who is generally described as scotland's first home grown billionaire. unlike a lot of people who put their money behind a partisan cause, all he wants to do is educate people. it's a terrific primer on the economic issues there. reading that changed my views. >> what do you think the dangers are? in terms of runs on banks capital investment, will scotland have anything left if they do? >> i don't think it's the end of the world if scotland goes independent. it's hard to see any economic upside to it. the risks are considerable. business owners in scotland are overwhelmingly opposed to it. there is something that is generally known called the border effect. you see it between canada, the united states. a border though may just seem largely symbolic is a huge deterrent to trade. much of scotland's trade is with england. on the broader economic question about the only positive that economists could come up with, it might unleash quote/unquote animal spirits in the scottish population. >> that is why we are where we are. >> i know you are english. >> the point i'm trying to make. if they vote for independence, they don't usually vote on economic terms. the wealth transfers are without question from mainland uk up to them. they vote because of their own belief in nationhood. it is an animal spirit, patriotic type view. >> that is a lot of it. people are voting because they think they could be another norway, high standard of living, less income inequality, very peaceful, but again, the economists who looked at this said it's very unlikely scotland could be another norway. the reason norway has income equality is not because of government policy or tax policy. it's because the underlying incomes are much more equal. >> they have oil. >> norway has been paying into a trust fund to support the population for 40 years. >> the biggest sovereign wealth fund in the world. >> people compare it to canada. i talked about it before. they say it would be very difficult because of the currency question with the uk, what happens with the british pound. if you don't have as a last resort the bank of england. it's complicated stuff. >> pro-independence people say we'll keep the pound. that is unlikely. england is not going to let them keep the pound. then they are saying we'll keep the monarchy, too. then why bother? if you are going to keep the currency, keep the monarchy -- >> and they'll lose the banks. >> i don't see much up side here. i think this whole issue of when does somebody need to be a country as opposed to just having a lot of autonomy, that is an interesting issue. there are people in this country who thinks texas ought to be a country. bottom line has to be, how many shared values do you have? how many shared traditions, shared language and customs? for texas to be a separate company would be ridiculous. after 300 years of union, i don't see scotland all that different from texas. >> manhattan should say we would like to be independent or silicon valley or california, we would like to be independent. take that. >> i can see manhattan saying we would like to be another norway, too. >> what do you say to viewers who say this is interesting. i don't know what it has to do with my portfolio. is there a tie there? >> doesn't have a huge impact. no question london stocks have been under pressure. the pound is very low. it's going to rally if they reject independence. it does have broad ramifications, particularly if it starts affecting other parts of the world, all whom are watching very closely. i don't think there is immediate trading possibility unless you are a currency trader. it does have long-term rally. >> we do see places like catalonia being emboldened. >> i think right now, investors are not looking for more political instability. europe has enough problems right now with russia and the ukraine. i think ukraine has a much better argument for being an independent country. who wants to be part of a repressive state? they don't want to see more instability. they don't want to see threats to the european union right now. i think the no-vote is a plus. jud >> apparently i read in "the financial times" they are going to issue their own bonds. to be called tartan bonds or kilt edge securities. >> i'm going to buy some. >> knowing how well you dress, i'm sure you could pull off the kilt. >> i don't own a kilt, i'm sorry to say. >> thanks for coming by. see you next time. jim stewart "the new york times." >> my pleasure. activision blizzard says the release of "destiny" is the biggest franchise launch yet. $500 million in sales yesterday alone. 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>> i think sales are off to a fantastic start. it is the biggest launch of a new entertainment franchise ever in history. when you look at the playstation 4, you look at the xbox one and enthusiasm for hardware devices and how different these games can be. these games are materially different. they look better, play differently, play better. there is a sense of realism. it's extraordinary in terms of the graphics capability in terms of the new system that. will bode well for holiday hardware sales. >> there is something interesting to point out here. this is not just about physical console sales. the success of the launch of this game say a lot about the shift towards digital. how important was digital in terms of the launch day sales? >> this has been probably for us the biggest digital release of a nonblizzard game. in activision's history, more was sold through digital download than any other product launch we had. >> does it say something about the future of gaming and where everything is going? >> i think what we've said is we are indifferent. if the consumer would rather purchase something in the store, we are going to always give them that option. if they want to download it digitally, that will be an option available to them. more consumers are taking the convenience of digital than ever before. >> now, a lot of analysts speculated about why this game did so well. why do you think this is different? is it something about the mas marketing, the game itself or the new consoles? how do you explain the upside surprise here? >> i would say for starters, it's been a big effort, with an enormous commitment and investment on the develop pavement teams at bungee. they've been working on this game for a very long time with an enormous amount of passion and enthusiasm. what you see from that level of passion and enthusiasm is an extraordinary result. >> what about the fact this is rated differently? >> it's teen rated so it appeals to a very, very wide audience. i think it has broad international appeal. i think you are going to see the audience potential for this game is bigger than most games. >> are you going to make more games of the teen rating because of the success of this one? >> we have skylanders team launching later in october which is a fantastic innovative broad appeal game. we have a new world of war craft expansion late they are year which is a t-rated that. will be to a broad audience. generally, we like that category of consumer. >> appealing younger. you want to jump in here, sarah? >> i have a question about the new category and technology wearables. we saw the unveil of apple's new i-wafrn. are you working on game features to go into the apple i-watch using the health tracking monitor? >> wearables is a great new category. what you are starting to sigh is high quality micro processors incorporated into so many different devices. the skill we have as a gaming company to create compelling interactive entertainment will be applicable to any screen connected to a micro processor. wearables, mobile devices, creating more and more opportunity in bigger and bigger audiences. >> another kind of wearable, the new oculus, the new virtual reality headsets. when will you see those impact your bottom line? >> again, you are seeing their displays with micro processors. they are connected to your head. i think they are just confirmation there are more and more opportunities to take the unique skills that we have creating compelling interactive entertainment, then distributing it across a wide variety of platforms. those are very exciting also. >> it's david faber. mine craft, microsoft, does that deal make sense for them? is it a deal you might have considered or a property you were interested in? >> as far as if it makes sense for them, i think you've got to talk to phil spencer. mine craft is a good franchise. the team that created that franchise and that company, they are a fantastically talented group of people. >> we've seen a lot of acquisitions in this space with google buying twitch. do you have your eyes on anything? >> nothing we can talk about. >> okay. unfortunately, we are out of time. bobby, thanks for joining us. we enjoy seeing how your game and others do over the holiday season. >> thank you for having me. up next on the program, target ceo says they may have focused too much on discounting and the role of target.com. plus check this out. a peek inside the gerber's group new space at the w hotel. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can. so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. whenwork with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration. one hour into trading here. what is moving. s&p 500 down quarter percentage point. knowsable losers, hcn health care riot, noble up there. cbs down 2.5%, electronic arts, diamond offshore. you recently this week interviewed les moonves of cbs. >> i did. the reason the stock appears to be down is anthony declement took his numbers down. a lot of questions about the advertising environment. moonves and many of the other executives i spoke to both on and off camera indicated right now very hard to say. the up front might not have been that strong. a lot counting on the scatter market. near-term buys for advertising. but that is what's impacting the stock this morning. you did have earlier cbs outdoor, a different form of advertising. they did say revenue was not come in quite where expected. >> winners for you, too. alliance data systems, best buy, e-trade, first solar and staples on that winning list. we continue to watch that with the consolidation we've seen in that sector. first solar, interesting one. target ceo giving an interview this morning. he's been vocal talking about the company's efforts to regain its cool and customer trust on the heels of that massive data breach. we've got sound from target's brian cornell from pepsi talking on cbs this morning. have a listen. >> going forward, we really believe mobile will be the front door of our brand. more and more, i see moms shopping our stores with a cart in one hand, usually with a child inside t e the hearcart, the other hand a smart phone guiding their choices. >> he is shaping up the corporate culture a little bit. >> he is admitting mistakes. inevitably, he is going to lay out some form of innovation, originality on the shelves rather than discounting. all sorts of things you would hope a leader would strike out. >> he is in that phase like the new head of sprint where it's early days. it's cost-free to talk about the mistakes made in the past. the hard part is fixing them and delivering down the road. >> i do like that they are getting back into these exclusive deals with fashion designers. people thought of target for that. remember lin-sanity when they released philip lin last year? they will do these fashion deals to attract buyers as a lower price point. that will be interesting. did you get your apple iphone? goes on sale for preorder this morning? it will be available next week. many reports of websites crashing because of heavy traffic. this is the 6 and 6 plus. analysts are always looking at these releases to see what kind of numbers we are going to get. directly impacts the bottom line. the revenues number. this is the profit engine right now. >> when you start cueing, when do you physically get to cue? >> people have been waiting on line already. it's out the end of next week. >> available the 19th. >> what did the sprint ceo tell you? >> he is very excited. going to be the big pegest laun ever for them. not sure how he would know that. >> they are concentrating on the iphone. >> and they have that program, a $50 offer per month for all the data and everything you can use, all you can eat. another $20 will give you an iphone for life. you pay that every month. then every two years you get a new iphone. >> very creative with those deals. also want to mention the chart of the week, story of the week which is the strong dollar. we have seen the ninth week in a row for gains. here is my chart of the week. will the strong dollar kill the recovery? people worry about our export strength. as you can see this chart provided to me by deutsche bank, when you have a strong dollar, it does hurt our competitiveness with a lag on exports. that big spike up in the green line there, that was the dollar during the financial crisis, that deep drop was what happened to our nation's exports. the read is, no. we have up consumer economy. 70% is consumer demand and buying. it gives us better purchasing power when it comes to our imports. >> all this stuff we are buying from china. >> and everywhere else around the world. we also got economic data speaking of the u.s. dollar and the economy. this morning senior economics correspondent steve liesman is back at hq. >> a mystery was involved today. other parts of the economy were doing better, the consumer was absent even with pretty decent job growth. that was solved with a pretty solid august retail report coming in as expected. an upward revision to july that said there was no increase in retail spending has been revised to up 0.3%. >> the consumer is seeing a little lift in wages, which we haven't seen in forever. we've got more people working, which is good news. import prices are doing nothing. if anything, we are seeing deflation in my part of the world, the apparel and home good side of the business. when you see increase in wages and deflation in the input, this is always good for retail. >> here are the numbers, 0.6% was the expectation. autos surging 1.5%. we knew that. we had the 17.5 million rate from the automakers themselves. electronics up, furniture up. there is the big decline. gas stations down 0.8% on a decline in gasoline prices, which we saw in the import price decline. today's number likely to boost the outlook third quarter a little bit. the bear case out there worried maybe the economy was weakening. ubs saying consumption now looks a good deal stronger because of the combination of strong august retail sales, july revisions and stronger q-2 health services number which we reported yesterday. john ryding says, we suspect consumer spending growth will confirm in the coming months." because of the recent revisions to some economic data. q-2 may have been as high as 4.7%. we'll watch back to school sales and whether lower gas prices translated to better retails sales. then there is the iphone, which could by itself motivate consumers to spend, whether they have the money or not. you remember when the ipad was introduced, right? >> yes. >> it was 2010. we were not a year out of the recession. to the extent we had an expansion was one of the most lackluster we had. the ipad ended up selling anyway. these new introductions -- i don't know about the iphone the way you guys do over there in squawk alley. it can be an economic event in and of itself. >> we talk about economic data ex-apple. that is not an unheard of metric. >> i have to recalculate that for you. >> when we come back, one of the biggest hotel brands is going to great lengths to attract customers. some might say they are going down the rabbit hole. 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>> how often do you think you'll be there? >> i'll be there a couple of times a week. >> or have one blowout party on a saturday night? >> no. i'm going to be there. i hope all you guys come and have fun and see something different. that was a shot on the big board. in fairness, this is not uncommon to put people onto a space to try to attract people in. you've done it with, randy, your brother did it successfully with his wife. tribeca has been reinvigorated by robert denero. >> to a certain degree. to expose domingo's art to people who may not have an opportunity to see it, maybe at a gallery or a show and you are invited to his home. otherwise you will not have an opportunity to do that. it could be a hotel guest coming down. it's a gallery experience, but you get to have a cocktail, a great experience and hang out for the night. >> could there be more than one? >> there is the concept not only having the art, live music. bring back some of that salon activity onto a lounge where people can enjoy and experience that. there is no more like the jazz band or we'll have performance art and we'll have all these different things going on. very instantaneous. >> it still amazes me it's in a "w." you are lecturing next week at the harvard business school club in new york how to survive in business. bookie types are going to look at you 20 years in an ever-changing business what will you tell them they won't learn in the books? >> i didn't have to go to harvard to be successful in my business. even though they did, they can be successful. it's very much about understanding a business. the bar business is not about just going out and having fun. we've been doing it for about 23 years right now. we've got big partners. i think we gained a lot of respect. it's how do you develop a business like that, remain relevant? by doing things like this is an interesting idea with domingo, but it's also about remaining relevant, understanding what trends are happening with cocktails, music. at the end of the day, hospitality. >> what is working for you? >> obviously, we are very interest to small batch experience, fresh drinks, fresh juice. it's the people we hire and hospitality. >> and working with barney's? >> we are consulting with barney's to do fred's in los angeles. indigo hotel on the lower east side that will be amazinamazing. a 15-floor bar with a five-foot outdoor terrace and a pool. 3,000 feet inside. it will be incell. >> you know who you need to get down there? sarah. we'll work that out. >> absolutely. >> domingo and scott, nice to see you both. >> thank you, simon. i'm sold. i'll go down if you come with me. a renovation that doesn't require a hard hat or moving into a hotel for a few months. why your broker is doing virtual remodeling. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's 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 there's a new way to work. and it's made with ibm. in today's real estate market what does it take to get top dollar nor high end listings that might need fixing up? virtual renovations. dianna is here with that this morning. >> we're in a town house in manhattan's west village. one of the most sought after locations. this four story home is going to come at a premium, but not much to look at now. clearly it needs a lot of work. what is goiit going to take to that 7 million price tag? >> virtually everything, including a virtual renovation. >> already there are a lot of clients that can see through that and buy property based on the line of sight and see where it can be. but there are other who is can't see through that. >> to halstead company does it for them. then of course it shows the after. and that is what everyone wants to see as well. the kitchen both before and then the aftervision. thanks again to the vision of a real architect on a virtual platform. the architect has been brief on the potential buyer pool and what kind of renovation that buyer might want to see. >> we'll work with the broker. think understand the community and the architecture and what wlon belongs in the property po help sell it. >> of course this is that cost to the agents but it is well worth it. especially since many clients are international buyers who might not live in the city. they have already seen it pay off. after they put the virtual renovations up they got 30% more traffic and more importantly people started to share the link. and we all know how available sharing can be when you are trying to sell something. right simon? >> absolutely. thank you dianna. now to john fort with a look what's coming up on sport. >> the alibaba and the paypal spinoff could happen sooner than you might think. and the first game for the apple watch. right after the break. w car smel and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement. you know.... there's a more enjoyable way to get your fiber. try phillips fiber good gummies. they're delicious and an excellent source of fiber to help support regularity. mmmm. these are good! the tasty side of fiber. from phillips well a quiet toentd the week on the markets. big week next week. the alibaba, the iko, the u.k. reverendal alferendu referendum. and begs the question whether we're entering a new platform for the markets. >> the chatter on the street is we could see the federal reserve drop some language from the key statement to talk about it differently about the timing of the interest rate increases. after what we've seen, simon. which has been better data capped by retail sales rising enough to get to that 3% growth number plus that economists are talking about for next quarter. >> darden? >> darden is dris the ticker system. a dramatic one. shareholders are going to have to vote on board members early october. releasing results but perhaps more interesting. starboard is the shareholder, releasing a 300 page slide presentation with all of its recommendations and there are some great tidbits in there including how they need to add a bit more salt to the pasta in olive garden. >> might as well put it all in there. >> trying to turn around this business. >> have a great weekend. >> you too. >> thanks guys. good morning. it is almost 11:00 p.m. squawk valley is live. happy friday. back to sidewalk alley. joining us carah swisher. always great to see you. good morning. with us here of course john and kayla. let's start with alibaba. one week from the ipo. kayla who's been following since the beginning getting more information on the book. >> we're getting new details how it's shaping up. these details come together in the last week but now hearing that the ordered books are going to be closing about a day early, two days early for u.s. investors. so if you are in new york or baltimore or here in the u.s. you will have to tell underwriters and salespeople how much you want in the stock by tuesday for international investors which are still in the process of meeting, the deal well-being wednesday. in the second day of meetings i'm told my sources that nearly 40 large institutional investors have put in for orders o ove

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