Materials. We begin with a record breaking weekend for apple. Fed calling for at that rate hike. A set to become two separate publicly traded companies. But first up apple is announcing it has sold more than 13 million new iphone 66s and 6 plus. It will be available in 40 more countries beginning october 9th. Look, i think that no one will care. This is a market no one may even care about alcoa which is a major split and thats because the gloom is so palpable. I spent a lot of time trying to be constructive about a market where there are black holes. You mentioned were going to get to a Company Called glencore which a vast majority of our viewers dont know thats gigantic. Some say 30 billion in debt. Apple keeps delivering. Apple china says mirror nike china sales. Very strong. Right now were at a moment where the market is gripped by forces unseen that are concerning people and oblivious to them is to say ive been oblivious to great earnings news and it didnt matter. Youre coming off a friday. I was not hear. Ive been hearing plenty of it. Health care got taken. Take a look at shares of valiant. It got hit. So Many Health Care names got beaten badly. The debt markets ability of some companies to get financing terms. Junk market thats highlighted today in the wall street journal, but im also hearing it separately and it has got to be something that creeps in in terms of the way people think about their just miss ad call i wanted. Their approach right now and then you mentioned glencore which well speak about in a moment. I think there was a deal on friday that i think was of great concern to people which was olen buying the commodity business of gal and have you raise money at an extraordinary 9. 7 . Some of this could be related to a deal that was unraveled that dupont spun off. I had xpo which is buying conway. But the olen deal and the cable deal. Was able to raise money. But at a much higher coupon than had been previously thought. I talked about altice many times an aggressive acquiring Company Based in france with a vvery aggressive chairman ceo. But they have benefitted enormously from incredibly generous debt markets. So when you start to see a company like that have to borrow at 10 plus percent versus 9 plus percent. Investment grade, abi will be in the market and tell bus enormous financing they got to finance their bid. Im hearing no problems on that front. Junk is where it starts. Im curious what karl icahn is talking about. I dont want to ever ignore a market that has some tremendous things going for it. U. S. Pretty good. That sort of the apple news. Apple news is were selling a lot of phones. The consumer is very good. But it doesnt matter right now because we have Systemic Risk in places outside the u. S. And theres no way we can keep it from coming here. This commodity decline, carl, is really unheard of proportions. I think that we all kind of thing, thats great. Cost of things are going down. It just doesnt impact as positively as the Financial Market are hurt by it. Unbelievably busy week. Dudley the fed president from new york says the fed will raise rates this year. Consumer spending came in,. 4. David mentioned karl icahn warning of danger ahead for a new video to be released tonight. In the video he says low Interest Rates have caused bubbles in art, bubbles in real estate, high yield bonds and of course the fall out for markets could be dramatic. Take a listen. Its like giving somebody medicine and this medicine is being given and given and we dont know whats going to happen. You dont know how bad tend of this is going to be. You do know, though, when you did it a few years ago it cause ad catastrophe. It caused 08. Where do you draw the line here . Thats a preview of what karl will unveil later on tonight. He did tell scott wapner hes more hedged than he has been in years. This is a personal mission. Hes truly out to save mom and pop from a lot of pain. Theres no doubt about it that hes done many great things. And im not going to criticize him from the point of view of being concerned about high yield debt. I am going to criticize him about the fact that hes been buying energy he owns a lot of chess speck. Chesapeake and freeport are the two im concerned about as well as glencore. I hope hes hedged big time. Identify been trying to get people out of chesapeake and freeport. To not mention that is to not show people that hes been very aggressive in the two areas that are the most dangerous american stocks, the most dangerous american stocks because they are copper and oil. So, yeah, he aint in there buying general mills. I dont hear bristol myers. Doing those . He lost a lot of money in energy. We know that. I heard 5, 7 billion. Im not sure the numbers. Its a very large number. He was up enormously as high as 30 billion in assets all his asset, by the way. Hes short cvs. Big hedge on the bond market. Hes paying a big number each month just to keep that going. Why do you have to buy those . The greatest shorts, such fabulous shorts. Hedge them against, i dont know, exxon and chevron. Fair point. Speaking of energy, we did get that big energy deal this morning on the m and a front. Energy transfer agreeing to acquire williams company. Enterprise value includes debt 37. 7 billion. Both Companies Say the combination will create the Third Largest energy franchise in north america. This is going Largest EnergyInfrastructure Company in the world. Of course, all theyve done is go down. Why . The underlying commodity they transfer around whether its gas or oil has been going down and they have been getting clobbered. The stock was around 45 or the partnership was around 45 bucks. They are talking, jim, about 2 billion about commercial snirj, 4 million in cost savings. Et team is adept. Williams company has been around for 120 years but didnt execute as well as they might have. They have a lower multiple. E temp is the smaller company. They have been in pursuit for months and months. Williams has been pursuing another transaction and its abandoning. How about that . They were doing w pc. Yeah. What happens that deal is not going to happen. Kelsey warren the big deal maker in this business fully controls this company which will now become the Largest Energy company in the world. This is a giant etf. Energy transfer equity, etf is a big mistake. They are doing 10 yield. Company had a great quarter. Remember, there are companies that do natural gas distribution. Natural gas is cheapest in 12 years. Natural gas is needed. Far more than oil. I think when we talk about oil we have to talk about exports because we have too much, bach trying to store, north dakota make it so they dont shut wells up. If youre levered in natural gas its good. All that said everyone will hate this deal. Why . Because its energy. If you mention the word energy then youre courting one of the big bear markets. They hated both these stocks all the way down. Williams for the board of williams which there was a great deal remember you got corvette, the activists and some Board Members who are not happy about it. They stole it. They were afraid of a 20 decline the stock price should they walk away from this deal. It might be defensive on their part although, again, the idea is youll have a team thats very adept at running these businesses. Kelsey warren will control this company. They will have a higher growth rate and a higher dividend. Great deal but who cares. Its going to keep going down . Part of an etf. There are people who every time unless they sell. One day that will change. Were not at that day. Maybe karl icahn should be hedging. Hes paying big dividends. Yes. As i said he benefits from the bond market going south. Spread is widening. Always difficult to talk about the bond market because it worries people. Bond market has between secret behind a lot of different declines that are major. In terms of size much larger than the stock market. Just boring. I love to make it come alive like rockettes come in here. I dont know what to do. Gentlemen prefer bonds. Gentlemen should prefer bonds. Shouldnt prefer bonds. Im doing a twist on larry kudlow. New york post says hes going to run for that seat. Do we host a debate . We are hosting a debate. Between larry blumenthal. Final point on etf they didnt raise the consideration. They replaced stock with cash so its eight bucks in cash. Raise some capital there. After all that they didnt raise it all. Unbelievable. This is a huge deal. Huge. No one cares. They rather talk about media general. Well talk about that later. Bring on the ceo the company thats trying to do the overbid from media general. Alcoa news. Were filled with good news that doesnt matter. Thats a good point. A lot of the bad news does matter. Glencore and volkswagen. Havent got into a lot of that. Dudley is crossing the tape and sarah eisen is on the floor. A Voting Member one thats very close to janet yellen, new york fed president bill dudley talking. Headline is the fed will likely raise Interest Rates this year. Very much echoing what we heard from janet yell len. It is based on the data versus the calendar. On this wholedea of the fed watching International Development something the fed told us in that last decision was one of the reasons it was taking it slow and being cautious here is what president dude lie said about those International Considerations and why they care so much. We let the u. S. Economy overheat because of International Development that would be saying were putting too much weight on International Development. We care about International Development not just for them schls but how it affects our economic outlook. At the end of the day what we do is based on whats the right thing to do achieve our mandate of full employment and price stability. Not about the International Outlook per se. In other words for all of us staying fed wants to make policy for the world and adding a third mandate, no thats not it. Were curious to see how it will impact the outlook on the United States. Other quick headlines he says were not targeting the equity market. The fed has received some criticism of that. They are watching very carefully what happens to financial conditions not just the stock market but conditions in markets overall. He did, though, say october is a quote live meeting something janet yellen has said. Theres a strong case for liftoff if the economy stays on track. Dudley one of four speakers today alone and the rest of the week is just ass about with fisher and yellen making remarks later in the week. They will send the market down. Im no cheerleader for this market. I suppose its good to be sanguine. It sends the market down. Its something we have to deal with. Thats why im suggesting these defensive stocks. Youve done everything but call for a 30 bear market. Short term targets, dow 1533, 370. We corks if everything goes wrong its very easy to take the multiple to 15 times earnings which you get 12 decline. Look, im very realistic. A rate hike, if i were at my old hedge fund, bring it on. Be thrilled. I dont know. Thats constructive. So i am constructive. I think we can hold that 1867. Talk about that and a lot more as we said busy week and day ahead. Alcoa splitting into two publicly traded companies. Becky quick talks to information president bill clinton from the annual meeting of the Clinton Global Initiative. Take another look at future. Adp, you a, to job numbers on friday. A lot of squawk on the street from postnine in a minute. Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. All coa announcing it will split into two public trading companies. Alcoa says it expects to complete the split in the second half of next yearer and well have a live interview with alcoas chairman Klaus Kleinfeld in half an hour or so. Not First Company facing big structural challenges. This company has been linked with the price of aluminum which has been in free fall. The upstream business, socalled business that makes aluminum has been challenged. To some degree challenged because of a surplus thats perceived in actual aluminum from china. But they arent nearly as related as they should be. More importantly this final business, the business thats the finished business looks like precision cast parts. And its a big company. Precision cast parts bought by Warren Buffett and that business is worth a great deal. In another market the stock would be a 12. Were in a different kind of market. Were seeing shrink to grow in action. Something weve talked about in a robust m and a market. Many companies are choosing to split. I can name many others that have chosen to go down that road. Klaus kleinfeld has been struggling with the idea although he buys a big company, buys another company so makes it the company is the largest factor in engines and aircraft and aircraft as we know from boeing growing at 9 00 has struggled to show people why you would own a stock that makes aluminum for the new f150, a micromill strategy, licensable klaus is doing hes doing what he should do because one day the market wont be as bad as it is now. One day that will happen. It will really matter. Again were not at that day. Today is not that day. Well get cramers mad dash and count down the opening bell. Well see you on the other side of this break. Weve got trouble in tummy town. Peptocopter when cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder fix stomach trouble fast with pepto. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Suffering from ringing in their ears, theres no such thing as quiet time. But you can quiet the ringing with lipoflavonoid, the numberone doctorrecommended brand. Relieve the ringing with lipoflavonoid. Time to get the mad dash. To a name we mentioned briefly at the top of the show, glencore. An enormous company of course. Incredibly tied into the commodities complex. Incredible trading company. Mark rich, right, some of these businesses, the old train of mark rich, when you go back they are every where, glencore and people are trying to understand whats going on here. The stock is down 80 . You had a negative Research Report that said their graph illustrates negative equity pie left for shareholders should Commodity Prices not recover. Under a scenario value for glencore eliminated. Ten year bonds is trading down significantly. Trying to keep this in front of people, david, because glencore is a company we know very little about. We do. This morning everybody is trying to understand their Counter Party risk. I know people have looked at the Bank Agreements to see if theres any triggers. Dont appear to be. This is an important name that people have to keep front and center right now. They already tried to hit the market, remember, jim and everybody who did that with them has gotten crushed. The idea they can go back to the markets seems unlikely. So well just watch this down about 25 . Largely it seems in part because this is exacerbated fears that investors already had about whats left here and if Commodity Prices do not recover. Copper is down tremendously today. Now look, this is china. This is a reflection of the fact that Commodity Prices have come down a great deal. Now, were in better shape around the world to handle whatever goes wrong in glencore. I dont want to put this as Systemic Risk in 2011 in europe or anything like 20072009 in our country and thats important. This is not the type of thing that will take down a stock like verizon. But might cause a better fries buy stocks given verizon. You dont really like it. Key is Counter Party risk. Junk bond, high yield markets showing weakness. Question about volkswagen. Enormous company. These things are conspiring to bring us lower. It feels like october. Not yet. We got the opening bell coming up next. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. The human foot has always been good at. Its unleashing great power. The is performance line just got a power boost. Introducing the lexus is 200 turbo and is 300 awd v6. The is line has never been. More powerful. Once driven, theres no going back. Youre watching cnbc squawk on the street live from the Financial Capital of the world, opening bell bin 45 seconds. The market obviously stepping into the week with trepidation amid some headlines. Alcoa splitting into. Obviously big concerns about glencore in london and well see how they trade through the course of the rest of their market day. Then the week ahead, a slew of data, whether its adp confidence, lot of fed speak, fisher later on friday, auto sales, jobs number. Then things whole foods laying off 1500 doesnt help. Whole foods, im doing a lot of work. Whole foods makes more money than anybody. The fact