The company doesnt yet have any comment, hasnt been responding to calls or emails. That Third Party Website was shareholder. Com. Guys, weve been looking through the numbers. If you check things out, it was a fairley thorough release. They look at Net Interest Income of 11. 1 billion. Noninterest revenue of 13. 14 billion versus the street count numbers at 12. 80 billion. They dig down, you can go all the way through each of the segments. Net revenue was down 2 for the corporate and Investment Bank, also down 2 for commercial banking, down 1 for consumer and community banking. We have not been able to confirm with the companyist, but these are the numbers. You have the numbers being compared. Necessary are different than the estimates. So when people were putting it together with jpmorgan its probably fairley complex the way that yeah. And i think he goes, ive got it all in here, now let me just say this. You know, is there a difference between save and send . Things happen. This happens again and again and again. How did it somebody outside got it . This is an outside site. What happens is i assume somebody somebody pressed the button early, though. You send your documents to the outside company like business wiring, shareholder. Com thing. And i think somebody right, yeah. And then they have it. Then they have it. High deaf f is i was telling michelle, most of our most of our people are okay. We take great efforts to make sure every hair is in place. But, you know, we have a lot of guests on. And i was watching this yesterday and every once in a while, i was in for kind of a shock. And i was thinking, you know, phoners, theres something to those. Something to be said for having a really good picture of the person and having them look, i have to admit, i took a little more time this morning because of that. I saw someone who shared and didnt have a collar on their neck and you could see every place that was cut along the way. Our executive producer, you check every nose hair, every ear hair, every blemish, every black head i wonder the first time i get a pimple that im trying to cover up on air. It happens. Weve seen a couple of the guests. One hair can do it. Mahaney, hes a good looking guy. But just on one side theyre coming in close on you now. Thats okay. Im ready, all right . And if i do look a little disheveled, that adds to a rugged indiana you know, thats its something weve been watching. Yesterday was the first day, right . Yeah. Because we went to hd recently. No, no, this is the new beginning. I remember when 60 minutes went to high def. It was like, whoa. Get it straight. Whoa. Wow. Who is the group we play now . Weve got hg what was the twitter or the tweet yesterday . Woibs to the 90s. Here we are. The backdrop for earnings season is a challenging one for the bulls. Stocks selling off once again. The s p breaching a key technical level closing the door with 200day moving average for the first time in nearly two years. Half of the ten main s p 500 sectorses are now lower for the year. The sdou on its worst threeday losing streak since november 2011. It closed yesterdays session at a sixmonth low. Dow transports, listen up for anybody who gets into the transports, the dow theory on this, the dow transports falling another 2 and they are officially entering correction period. That index is down more than 11 from its record high set weeks ago. They are down sharply once again yesterday on the airlines. You have to think ebola plays a role there. Theres always an offset about what causes that. Youre balancing slower Economic Growth which is important for the transports with the low oil produces. But you throw obama in there and you can imagine if it wasnt just west africa, if it was located somewhere else, there would be people who arent traveling. Initially, that just is an economic thing. Its not necessarily a pandemic or the black plague. But people start doing less economically and then thats andrew, youve got your column on this today looking at the economic potential that wall street is modeling today. 32. 6 billion is the world bank estimate of total losses over the next 18 months. For ebola. Thats not assuming a pandemic. Thats assuming that their 200,000 cases of ebola and what the Economic Impacts of that is the result of. Were only at like 6,000, right . 32. 62 billion. 32. 63 billion . You dont have anything greater . These are the guys with the temperature models for Climate Change . However, i put it in place view in the column. 32. 6 billion is less than apple makes in a quarter. But that is more. But 200,000 people, that is the headline. 200,000 people and their model for 32 billion is 30 more than you would save if you outlawed inversion over a tenyear period. Its not just the dow we were talking about and the dow transports. It is off about 9 from a september high. As for todays session, lets take a look and see how the futures are shaping up. So far, it looks like its going to be a little bit of a mixed bag. Actually, things look like theyre positive at this point. Dow futures up by about 34 points above fair value. S p futures up by 4 points and the nasdaq up by 13. We have a big global story this morning, north korea trying to end speculation that something is wrong with its leader. When he made the visit, he needs to hold up like the New York Post with a current cover. Before today, the last time that kim had been seen was at a concert on september 3rd. You know, i dont even know what to say. I guess i care whether hes but i want to you talked with us about this when it first came out. Hes back and what does that tell us at this point . Not a lot . Not a lot. I think there was some there was some speculation. Remember, there was all kinds of speculation. There was some speculation that perhaps he was trying to test loyalty among the population and the military, etcetera. To see what comes out of the woodwork, etcetera. And anyone who is disclose would no longer be there, right . Exactly. The whole thing is do you want me to yeah. Michelle is actually here not just talking to us about kim jong un. She does have more on germanys struggling economy. So im going to tell you news about a german Economic Indicator that we rarely talk about on this show, except that germany is now appear to go be the ground zero of the problems in europe. The zew is out this morning. This is a survey of analysts in germany and it fell sharply today. If you see europe, you would cover this number like a very big deal. Today, the number was very negative. Down 3. 6 . Its the worst reading in nearly two years. Now the zew cant rule out a contraction for the Third Quarter in germany. And if you run through some of the screens so i can show you the euro, the session now has moved to a low within the day. The german dax i thought it moved lower earlier on. Lets show you whats going on with the german tenyear yield, as well. We expect germany to put out official forecasts for growth. Theyre expected to cut to 1 when they have been close to 2 . Whats the problem, joe . 0. 85, tenyear . Yeah. Where is italy. Thats a very good question. I dont know if we have time to bring up the italian chart, but what we have seen is where german rates go up but problematic economies start to get up. That would suggest to you that mario draghi cant keep talking about the low rates, they have to do something. At the imf meeting, it is very clear that there is a huge divergence between what europe wants and what all of germany wants. Germany still refuses to act weess the idea that printing money and spending is a good idea. Im not sure theres anything that would get them on board because theres two ways to get inflation, right. . A good way, which is your colleagues doing great, high productivity, people are Getting Better wages. Theres quick money and budget deficit spending. Ebola right now, venezuela has lots of inflation, we know how to do it, but you dont want to necessarily do it that way. Thats the german opinion, right . If you just inflate that way, youre going to inflate on the currency, but its a lot less. And they could set a control, too. Absolutely. That is the whole issue of uncontrolled inflation very much fits with the german population is one of the reasons why. And they also feel like theyre going to make it through. Michelle, thank you very much. Well talk a little bit more about the markets and whats been happening here. Joining us right now is joseph quinlin. Right here on set with us, we have jeremy veeren from ubs. Jeremy, what do you think is happening . I think weve seen the pullback, obviously, and its not what weve seen over the past 21 months when weve had the bull market setbacks anywhere from 4 to 8 . I think investors need to cope in perspective the u. S. Economy is actually in pretty good shape. So its very easy to get caught up on global points, we heard from microchip last week that had a negative afounsment. But in aggregate, corporate profits wk are going to grow high digits this quarter. From that perspective, we remain bullish on the u. S. Equity markets. Are you more bullish . Certainly the defeat of the decline on thursday has been a little alarming. But that said, each time we go through one of these episodes of the vix spiking through 1. 20, nothing is pulling back, it feels bad. It feels like this time is different. Each sometime what has driven markets higher is the strength of the u. S. Economy and corporates continue to be strong. This has reverted back to below 14 within a month each and every time. Why do people think 10 corrections are so normal when, you know, we get 6 , we really do think i mean, you know, were pulling our hair out. Why does that if its so normal to do 10 , why cant we calmly watch a 10 correction without panicking . We have had a low volume timt market to some degree. People get accustom to it remaining low corporate volatility. If you dont get to 10, you cant get to 20. Of course. Even the rally weve seen, people are nervous because theyre up so much from the bottom. I also think valuations where higher. There was less Downside Risk because you had that valuation buffer. Now valuation has pulled up. Weve pulled back now. 14 times seven forward consensus earnings. Thats the cheapest weve been since the january february 6 decline we had earlier. When it doms goes down fast and sharply, people hear about it. The people that arent really committed to the position sell to the other people that are going to hold. The beginning of something more extended usually doesnt telegraph itself as clearly, does it . That is the good thing about corrections. Theyre usually in bull markets, not the beginning of something worse. This. What do you think . I think joe is right. Remember the scares out of europe in 2010, 2011 . You raised the issue what would it take germany to move. I think when the unemployment in germany goes above 5 , that will get their attention. Theyll be more aggressive. I think this is another growth scare, courtesy of europe. This time the economy is much stronger relative to 2010, 2011. I wonder about some of these companies thinking theyre going to export their way out of this problem. I wouldnt say screaming by, but we feel like information technology, energy has a lot of value in it right now. It could go lower because oil prices are signaling. So well work our way through this. But, really, at the end of the day, financials will do well. I have to throw that out there. This is a growth scare courtesy of europe. Weve seen this movie. I do think the economy is a lot stronger than it has been in the last couple of years. Joe, this is not an ebola, its sort of a pull on the market based on that or and should it be . It will never be a factor in the market, ebola, or you just dont know . Joe, i really dont know. Theyve done a good job. If nigeria can contain ebola, i think the United States and spain can, too. Not ready. I do think this will be contained. Airline stocks, some of these good names are being punished for that. To me, i think this will pass. Its a learning experience. Its very emblem attic of globalization. Were all connected. Jeremy, let me ask you, what would you say . Would you be telling people to buy on this . You both sound like youre convinced this is a oneoff situation to power through this and come out the other side. I think thats right. I dont think necessarily markets are going to decline this week. But i think there is a Good Opportunity for investors. I think its important to keep in mind, were having a Global Growth scare and corporate profits in the u. S. Are very healthy. Even the early reporters so far in this earnings season, 70 of them are beating on the top line. Jeremy, thanks for coming in today. Joe, it was great talking to you. Thank you. Thank you. Up next, a midterm battle that could determine the power structure inside the halls of congress. Jaul john harwood making a special instudio appearance. And everyone is watching and tweeting about the walking dead. Find out just how many of you did you see it last night . No. Dont tell me. Find out the kids who are aware of whats going on at this point. Dont. Sorry. Find out just how many viewers turned in to see if rick and the gang get out of termis. Squawk returns in just a moment. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. The walking dead scored the series highest ratings ever. I wanted most people to watch the nfl game on nbc. But 17. 3 Million People tuned into a cable show for the season premier. 11 million adults between 18 and 49. Can you imagine . Previous record for the walking dead was 16. 1 Million Viewers for the season for a premier. And it outperformed Everything Else on tv in this demo, 18 to 49. A total of 1. 32 million tweets, making the walking dead the number one new season drama for premier in 2014 in terms of tweets. Talking dead also had its highest ratings ever with nearly 7 Million Viewers. Congratulations to chris and conan obrien, right . He was really good and they have on nick atero and scott symbol. Scott a really thoughtful, smart guy. You cannot talk too much about this. I still havent seen it. I know youre tempted. You keep throwing out small hints along the way. If you ruin it for me, i will ruin it for you. Did you ever watch baseball . Have you seen what a good baseball swing looks like . That is another hint for me. I am going to destroy you when you miss it later this season. Im not going to go back to the trough and talk about it. More than squawk box . Slightly. Were not measured effectively by nelson. Our numbers theoretically could be bigger. They dont have a way of measuring or numbers. John harwood is here. Doesnt anybody who is important see ow squawk box . In multiple continents. A major midterm battle between Mitch Mcconnell and his democratic opponent Allison Grimes had their only tv debate last night drawing pretty Huge National attention. I dont know if its more than squawking dead or talking dead. John harwood making a special appearance here this morning. So what the heck happened . Guys, this was a really good debate. Allison grimes is in her mid 30s, hasnt been on a stage like this before. She performed very well. Mitch mcconnell was the best Mitch Mcconnell he can be. Took some of the things about his persona that dont always come across on television. This was major league baseball. They mostly stuck to the familiar points that theyve been making. He was casting her as a tool of obama and the antiforces pushing a Climate Change agenda. She pushed him as a tool of big business, the coke brothers, opposed to the minimum wage, things that as a tool she pushed him. Yes. They were on their game. Weve got sound from both. First here is grams neimes near open of the debate talking about what mcconnell presents. Its gridlock, its obstruction, extreme partisanship that cost this nation a 16day government shutdown, 127 million. We cant afford to go in that direction. My record speaks for itself. Im an independent thinker that does whats right for the people of kentucky, not partisan politics. Now, the independent thinker part that she mentioned, thats because shes trying to establish distance from herself as a democrat with the top democrat in the country. Thats obama. She would not say this has become a theme. She still wont say whether she voted for him or not. Thats the one. Its been a theme thats been going on for years. She did say in another interview that she voted for Hillary Clinton in 2008. She just wont say i dont think you can blame her for not voting for obama. Look, she was a delegate to the convention. We know how she voted. But here is Mitch Mcconnell coming back. Oh, by the way, before we go to allison, the key phrase that she used in there was 30year record. Shes trying to tie him to washington gridlock. Here is how he came back against her. The whole campaign has been designed to deceive people into thinking shes something she isnt. Its previous obvious, given where her support comes from, all the anticoal activists in the country, that shes going to do their bidding. So he says its deceit, youre trying to hide. Its not a bad argument in certain respects. And weve got a very close race and two candidates performing at a high level. Its fun to watch. The moderator was also good, kentucky. Allison grimes pollster, who was accurate for harry reed and Heidi Heidcamp had her ahead by a couple of points. Well see whether that holds up. But i think functionally, it is a very close tie race, one or two points on either side and, you know, weve got turnout battles and huge attempts to mobilize voters. Its a conservative state. Betting on mcconnell. Barack obama lost big time, but shes got a shot. Is there going to be any type of november surprise . Are you predicting anything . I think there will be a bunch of november surprises. Youve got a lot of volatile races. I mean anything that the democrats trying to do to pull out of those oh, oh, no. You mean wag the dog, Something Like that . No. Just something that benefits. People ive seen a lot of pooej people talking about whether they they tried that with gitmo. Look, the president has been doing a series of things to try to motivate and mobilize if democratic base. Without actually showing up at any of the states . Well, theyre going to benefit from a significant latino vote, even though they delayed the immigration executive order. They want to calibrate that. Give me your number, 52 48 . If forced to bet, i would say that we end up in a 51 49 republican position, but i dont took one away from me, you couldnt just say yes . But im not confident in that at all and democrats could hold. John, thank you. Still to come this morning, the blue chip guide to survival. How big businesses need to adapt in change if they are going to make it for the long haul. And the Airline Sector has seen better days. Those stocks getting crushed this month. Does this have all to do with the threat of ebola . Thats discussion is coming up in the next half an hour. Ing u. S. Is now voya. Changing the way you think of retirement. 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Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Good morning. Welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin. Our top story this morning, the Global Markets that yesterday was a third pretty tough session in a row. Threeday major selloff for most of the averages. We are up about 27 points this morning, which im sure that will hold throughout the session. Hopefully that holds and maybe we for a half an hour. No, hopefully we it wont look like it does right now. Unsettling headline risk is here for a while. The latest was 70 people. Were caring for the for the patients. The ebola patients. And, you know, now youre just tearing a lot more about droplets, aerosol they still havent figure it out. Talking about protocol. The only answer is theyre saying it was operator error. But theyre talking about whether you even need to we more careful, given that were underestimate today ability. Can i make a for one second . No. 48 people who apparently came in contact with him, including his family members who were in the same room with him but i know its not 21 days, but im just suggesting to you that there is a view in the medical community that would mistake it 12 days, the chances of them getting it are much lower than it is in the earlier period. I think i would be very concerned if i was on the front line if i was a health kafr worker. Absolutely. Plus 32 billion with the lives lost. But the true Economic Impact is you cant overstate this enough. The fear has spread a lot faster than the virus. Were talking about two people here in this country and only one transition at this point. But, you know, something about making movies about things like this, you know, outbreaks. And, you know, apocalyptic premonitions, we think were beyond this now in the modern world. Hopefully we are. And we should be able to quick ly mobilize our scientific basic research. We know a lot more than anyone has ever known in the past. There should be a way of approaching either a cure of a vaccine. And this time, i think those cures and vaccines will be pursued. In the past, its dropped off when the threat has disappeared. Because youve seen it in multiple countries, because youve seen it in western nations, the only good news in any of this is they will pursue any of those potential cures in vax ev vaccines. Now we have someone to blame. Bush and the sequester republicans. For ebola . Oh, yeah. Cuts, cuts in research. You didnt even know your people did that . I didnt even know my people did that. Thank you, democrats. History is no guarantee that it is going to be around for a hundred years or even a decade more. The only way big business will survive is to ablth like startups. Joining us now, great to have you, a huge singulairty fan. Just in terms of us not understanding, really, what an exponential chart or graph looks like, in terms of weather or whether its happening right now, anything that we talk about, we need to talk about what thats going to do for productivity and the way it looks . Sure. Our world has been evolved from a linear and local perspective. But now we operate in a global and exponential of wealth. If i take 30 linear steps, i get to the back of the room. If i take 30 doubling exponential steps, im at a billion. Im 26 times around the world. Its hard to gauge. Our solutions to it are linear today. We need to resolve more. The book that you read, andrew . Ive got it right here. Vana white. You know about selling books. This is not related to what you were just talking about. This is related to a Corporate Strategy and how to move forward. It is. But more important Corporate Strategy, the volatility in the economy is accelerating. Most of the fortunes, most of the s p 500 wont be around in 15 or 20 years. It used to be the life span was 67 years for a fortune 500 company. Now its down to 15. Soon it will be down to 12. Essentially what were seeing is a new breed of organization enabled with accelerating technologies can do things that only large corporations could do in the past. So the book is what are these new characteristics . One of the cycles of what we call the exponential corporations, how do you jex ta pose this . How do you deal with this . Yeah. The time it takes to disrupt an entire industry, thats contracting, as well. How long can you say im going to be in this position . Exactly. Very difficult time. We optimize around managing costs and demands. The internet for the first time has helped drop the cost of demand exponentially. And if youve got a viral loop going, your cost of acquisition goes totally to zero. Amazing. But what these new organizations are figuring out how to do is to help dropping the supply exponentially. So you are seeing this new breed of Organization Today that has almost no cost of supply and no cost of demand. Thats why were exploding out of the gate. If youre a big company, how do you deal with the startup . Are you a believer in the curve wall singulairty . In the little s perspective. Small s from the singularity we have those all passing at the same time. Ebola has shook up the world. All of our management structures and leadership structures are about scaling predictable and a manageable environment. Were not managing a much more disruptive environment. Do you know yet whether machines will end up depreciating what we created, then, looking to destroy us completely or being ambivalent, can you tell me . Yes. The hollywood scenario is that the machines come over and take over the world like the matrix or the sky net or Something Like that. Were seeping these using technology. I hope youre right. Did you see what watson did to that ken guy . Totally amazing. Without any emotion or feeling whatsoever. Buried him. Now if youre a doctor and you have ta kind of augmented ability to dying 2340es something better, imagine watson hitting an ebola patient and saying, theres an ebola patient. Imagine machines talking in the future. They dont need us. Weve got flash and personally responsible for this, they have cars that drive themselves, essentially. Do you think its oh, now ee long musk says it so now you believe it. Unbelievable. Whats wrong with elon musk. Yop. What you said about the maid rix, i happen to be there for the next 500 years. Then i want to run around with youre mixing your movies. Up next, Airline Stocks have been getting absolutely crushed as crude oil has been plunging over 13 this month. How is that possible . What do you attribute it to . Is it the ebola stories . This is leading the dow transports into correction territory. As we head to a break, check out the Airline Index over the last month. Were going to see the pain when it comes up. Squawk box will be right back. ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath. [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. Now we invite smokers to quit, too, with our comprehensive program. We just want to help everyone, everywhere, breathe a little easier. Introducing cvs health. Because health is everything. Welcome back. It is time now for the squawk planner. The worlds biggest banks are getting ready to report, including citibank and wells fargo. Youre not going to want to miss it. At 7 30 a. M. , Small Businesses will be releasing their latest report. After the beg, intel is expected to roll out results. That is todays squawk planner. Delta is down close to 4 . United suffering about the same amount. Southwest falling almost 15 and american down almost 20 . The back drop is in crude prices, which should be really good news for jet fuel. How much of this pain whats to be, number one, the Global Economy slowing down and number two, a fear about email . Last night, the headline, the most Severe Health emergency in modern times. Thats from the w. H. O. , a direct quote. Joining us now, bob crandall. In the past, i think you may have something similar to this. You saw some effects for air travel, didnt you . Yes. Whenever people get frightened, to some extent, they respond. The fact that the w. Hmp o. Now thinks this is the most Serious Health threat in modern times, obviously, is going to frighten a lot of people the opinion and the movement of the Airline Equities is astonishing, given the fact that you have favorite prices on one hand. All on a sudden youve got this tremendous minus, which i am inclined to think is a relatively shortterm phenome n phenomenon. The level of fright associated with ebola isnt going to last terribly long. The market as a predictor of the future surprises you, at other times theres a lot of false surprises. I dont know what would be more worrisome. I guess an ebola epidemic would be awful, but the airlines might also be discounting a global slowdown that was telegraphed by germany and china and thats not really that great for overall Financial Markets, either, right . Youre quite right. Well, i to be honest, it depends, you see. In both cases, youve got a lot of fright. On one hand, people dont want to get a deadly disease from which you cant recover. On the other hand, people would just assume not lose a lot of money, as well. And the consequences that i suspect the concern about a slowly economy in particularly and a deeply slowing economy in europe is at least as much responsible for the decline in align equities. In the near term as the ebola scare is. I did some work on this yesterday. When the worries or epidemics happen, Asian Airlines werethou hit at all. When you look at the u. S. Airlines that are being hit on this news, to the extent that there were going to be any losses attributed to ebola, how would you even begin to try to measure it . I wouldnt. In terms of the impact on u. S. Carriers, i think at this point its got to be terribly modest. And the consequence is as i say, i would attribute a lot more of the near term price concerns to the concerns about slowing worldwide economy than i would to ebola. Now, who knows what happens tomorrow. As you guys were talking about a few minutes ago, youve got some indication that in the United States that there has been some modest infection. But its very modest. And its a very limited number of people. We got to unare, but ive got to throw run other thing at you. I saw this news and it infuriated me. Did you see the flight attendants unions are trying to change the rules again so that you cant use your phone on the tarmac. Did anybody see this news yesterday . Why did it infuriate you . Theyre suing. Because theyre the ones who want to keep people from using their devices. Its not actually the airlines. Bob, did you see this . I did not. And i cant imagine. What is it that they what is it they are alleging . That people arent going to Pay Attention to them when theyre doing the safety demonstration and theyre worried if theres turbulence, these are going to fly out of their hands. What about the screaming little brats that are bothering me on a plane . Can we just ban children from planes too bob . Thats my question. If theyre not mine, i hate them. And i just think theyre brats and useless. Right . Joe, youre just trying to build up your worldwide popularity. Exactly. Im channelling andrew again. That is not my view. But i think you should be able to use your phone. Its a little doiflt imagine. Really . When youre calling sources or what you sound a little like alec baldwin. Im playing a very important game of words with friends. Hes much more conservative than you. Thank you, bob. Very nice. My pleasure, guys. As we head to break right now, check out jpmorgan. Shares trading it looks at this point a little higher after a mixed quarter. Up next, a breakdown of jpmorgans results. The first to report. How will the numbers impact the numbers . That will be coming up next on squawk box. A whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most portant to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. But the most meaningful shorthand of all is the one i use when im about to drive x. Its an easy way to tell everyone that im about to drive. And i do it every time before i get behind the wheel. Use x to pause the conversation before you drive. Because no text is worth a life the ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Welcome back to squawk box right here on cnbc, first in business worldwide. Im Andrew Ross Sorkin with joe kernen and becky quick. If youre just waking up, look at the futures. This is the dow trying to bounce back from its worst threeday losing streak since november of 2011. An often talked about stock of the day. But check this out. For yesterdays selloff spiral, the s p 500 closing below its average for the first time in nearly two years. This mornings focus for the markets, the start of earnings season. After an inadvertent Earnings Release it is. With shareholder. Com. It was an inadvertent release of some information. Either way, the Quarterly Results are are out. Two cents below expectations. 1. 36. The stock not really reacting very much. Revenue did beat consensus forecasts. Joining us on the squawk newsline, marty mosby. Marty, if you were lets say you were a journalist and you had to write a headline. What would it be . Well, the headline would have to be that revenues are relatively flat. You are picking up at least some Net Interest Income. But we really still in the Third Quarter had subdued Capital Market activities. The big story will be when they get on the conference call. It does look like there was a pickup in september. Better than expected, but will that momentum carry in to the Fourth Quarter will be the big story after we come off the conference call. Will any of what were seeing in that the fed is dealing with that the ecb is dealing with and that is the recent growth fears around the world, what l that be seen in the outlook for jpmorgan . Really what were seeing is a consistent, modest, yet positive growth. If youre looking at loan growth, its still 1 sequential loan growth. Which is what weve seen for the last year to two years. So just kind of keep moving forward at a slow pace but making progress. The other fee income lines are still moving higher. So youre seeing administration fees, all those other activities are still slowly but surely making some growth as you go through the year. Well, then youre telling me its more of a domestic story and if what happens in europe or china, if it affects the Global Economy, at least in the sense that it hurts the u. S. , then it might hurt jpmorgan. At this point it has nothing to do with the outlook for u. S. Banks. At this point its not kind of bleeding over into like youre saying the domestic economy or the Balance Sheets were seeing here. Now, what is happening, again, is the Capital Markets activities are swinging back and forth. Theyve been subdued because volatility in the market has been so low. But what we saw in september and in october is that volatility kick back in. So what were looking for in the Fourth Quarter, will management be talking about whats happening here with the momentum building and some Capital Markets activities brokerage activities and revenues being better in the Fourth Quarter than what we would have seen through the second and Third Quarters of the year. There was about a billion dollars worth of legal expenses. So thats whether or not thats normal or abnormal at this point, who knows. But that was about 26 cents. And if you take that out, their operating expenses were down almost half a million dollars. So a little bit of efficiency built in here as well. I know its hard to tell, but are we through much of that headline risk . The other big banks as well. In terms of regulatory fines and action . Id say were not finished. Were not past the final tick of the clock. But what we are at is the Fourth Quarter in which most of these now are just what i would call a nuisance or unusual item that comes through and creates noise. Theyre not holding back from jpmorgan. Still grew book value over 10 . So they are seeing and paying for those with quarterly earnings. But its not really stopping the progress. As we move into 2015, we do think that will finally come to a period where that wont be significant anymore. We dont do we even look at credit worthiness at this point . What can you tell about those people . What were seeing is that the cost of credit is still at historical low levels. We didnt see any pickup in provisioning this quarter. And we expect that to continue. The banks were so constrained on their lending activities that they didnt really put any new incremental loans out to risky customers for the past several years. Theres no losses in these portfolios. Thats going to enable them to see low credit costs for the foreseeable future. Thanks. We have a great picture of you. Youre the one that said you dont look good with high def. Youd be fine. We said that earlier. We said we were going to do more phoners because of some of our guests. But that was not its not the guests themselves. Its we dont send any makeup. They dont get the same lighting we get. Its not our guests fault. I watched guests yesterday that was pretty scary. Thats an advertisement for coming into the studio. But marty, you are not one of the people i was talking about. I appreciate that. Lets get you some of the other headlines at this hour. It is a big morning for earnings. Well also get the latest numbers from citigroup and wells fargo. Then dow component intel. It will be out with csx. U. S. Government is reviewing hilton worldwides sale of wal doorastorastoria. It is a popular place for diplomats. Do you think president obama should still stay at the waldorf . You know, i hadnt thought of it until this story came up. It was not something that occurred to me when they first announced the purchase. Are you worried about safety and security . You think theyll be bugging every room now . No, its just not owned there are other all american hotels. Seems like a lot of money to pay. I looked over at it the other day. Needs a facelift. It does need a facelift. But thats part of the plan. Theyre going to sell i bet you theyre going to sell apartments in there. Condos like the ritz . Yeah. Then they can make a fortune. We should also tell you google is expanding its express Delivery Service to more cities and same day overnight delivery for a fee of 95 a year. That service lets customers place orders online and from brick and Mortar Stores and its competing with amazon. Yeah. Because a billion dollars split up like that isnt really that much is it . People pay 40 million for a stupid apartment in new york. My point is you sell is that 20 of them 800 million. You are savvy. I use my noggin. Not often. But occasionally. The volatility index spiking. Start of the month up over 35 . Highest level since june of 2012. And with the Semiconductor Index and the nasdaq down more than 10 , investors find the opportunity right now. Joining us right now is tim freeman and Jeff Mortimer dir. T big move in the vix. Going back down now or going higher . It is a big move. I think we stay in or around these levels. Maybe around 20 or so. But weve been writing for some time that we are going to see a systemic shift involving volatility. In and around 20 is where were going migrate over extended periods of time as we look at the investor concerns. Right now people are concerned about inflation in europe. Specifically germany has them very concerned. China has them very concerned from a growth perspective. When you look at valuations, you know, high 14s, low 15s, you cant make a huge argument were supposed to have a large correction, but i could see equity softness here when you look to put volatility in dollar context. You know, you could sell those for in and around a hundred dollars. So your break evens are in the ballpark of 1775 on the downside. That seems excessive to me. I think volatility is a bit overdone here given the continued Central Bank Action that well see. But the market is very concerned about those. The lack of volatility you would attribute to the fed that we saw for a year or so. Let me ask you just a throw away question. Where is the vix . 24. All right. So could you say that one point is attributed to ebola . Two points . Zero points . You know, i think you can attribute the, you know, reactions of ebola are going to be in the airlines, the transportations, and the hotels. So its there. Its not zero. The only client conversations ive had regarding ebola are very stock or industry specific. Nobody is talking about it to the overall market. Why is the overall market down . Whats the real change . We knew about europe, china. This weakness weve seen in germany has been a game changer in most peoples eyes. The people are starting to talk more about chinese weakness. But what really has investors very concerned is germany and the spiral were seeing there. That has large ramifications for the peripheral. Which is whats going to cause real issues. Thats where well see the vix. But thats what really has investors concerned. Jeff, what do you just listening to tim, you agree . Disagree . Whats your thinking on this . Would agree with what weve heard. We are in the throes of a growth scare. The effortless climb of the s p seems to be over for the time being and weve entered sort of the rollestrollest coaster phas. The january february near correction we had in the s p, you had sentiment indicators. We saw that through our clients as well. A lot of complacency over the summer. It was interesting as you started the summer. The vix was at levels down around 12 and ended the summer at the same level as the markets enjoyed that upward climb. I think this is chinese and german slowness. And this is the market trying to filter whether or not were going to go into how deep a recession or if a recession is coming or not. And that is what markets are wrestling with. I must also point out that corrections, 10 corrections are normal within market phases. And were long overdue. And they happen about once every two and a half years or so. Going back to the early 1970s. So im not down playing this. We are aware of slowing growth. But again, want investors to understand this is part of a bull market phase. Can i ask both of you, it sounds to me everyone weve talked to today has had the same message. That this is a temporary thing. But everyone sounds a little more cautious today. The sentiment has absolutely changed. And if you were to ask them right now, i think somewhere in the ballpark of 1800 to 1850 is where the market is. So arguably were not talking about a large move to the downside, but i would say should we be worried that people are not worried enough . Meaning, i dont think weve had too many people come here and say that this isnt a temporary blip along the way. To a higher i think people are plenty worried enough. I think right now the higher levels of volatility are going to force Equity Managers to reduce. When we look at the pile of money thats going to be invested on a daily money, it has to find a home. The things you need to consider are with that long short equity universe, their risk has gone up because volatility has gone up. Right . So by natural function they will reduce risk. Theyre less of a bid in the market place and theyre going to watch it. That doesnt bode for the market being down 10 here. But i wouldnt be surprised to see us leak lower. Then were going to look fine from the valuation relative to the rest of the world. Well see how earnings come in. And then theyll come in and maybe we run it into the end of the year. Jeff, isnt the fed isnt this the last month for qe . Thats right. They will be done coincidence . Yes. I dont think so. But we dont talk about that. This is the last month. This is when they go to zero on qe. But theyve been taking 10 billion out now for months. Theyre going to let it roll over forever. Okay. Right. All right, gentlemen. I was watching a competing not Business Network but overall network. A network that tends to blame president obama far lot of things. And one of the guys said so not msnbc. But one of the guys said we are now seeing a worldwide possibility of a worldwide plague and roving hordes. The president has effectively brought us back to the middle ages. Thats a bit of a stretch. But you put isis together with ebola and we havent seen this its a stretch to blame it on him. But i thought it was funny. Roving hordes. When was the last time atilla and those guys were spreading out in europe and the middle east. Well, actually we had Movement Like this after world war ii. You redesign borders like that. And you do have movements like this. Isis, no. But this is redrawing the map. This a global problem right now. Im talking about the way these guys are yeah. I mean, they are the savagery. And we havent worried about a global mask of the red death. Well, there was the influence of 1917. We did with sars. We did, but it never sort of made it here. Okay. Anyway, thank you. Coming up when we return, a possible cyber attack at drop box. And then its all about time for the super rich. Unveiling a mysterious piece of arm candy along with its megaprice tag. A price tag so big it sent a Security Guard over here to keep an eye on the merchandise so joe doesnt take it home with him. Squawk returns in just a moment with that piece of arm candy. Opportunities arent always obvious. Sometimes they just drop in. 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. Welcome back to squawk box, everyone. In our headlines this morning, google and other investors are planning to invest about 500 million in hardware and Software Developer magic leap. The company has been secretive but is said to be working on a more realistic 3d experience. Hundreds of alleged drop box user names and passwords have been published on a website. They are asking for bitcoin donations. Drop box, though, says it has not been hacked. Im a drop box guy. Love drop box. But double up. Also a new survey by mercer gives the u. S. Pension system a c grade. That matches france, poland, and south africa. The award for the best Pension System goes to denmark. When we come back this morning, wells fargo and citigroup are on deck. And there has been a kim jongun sighting. He appears live and well, at least we think. Also later well be talking to icon turned entrepreneur. Do you know how many thigh masters Suzanne Sommers has sold . Squawk box will be right back. The all new, head turning cadillac ats coupe. Its irresistible. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Welcome back to squawk box. Making headlines outside the world of business, president obamas going to meet with military leaders from about 20 countries today. Theyre going to discuss plans to fight isis. The cdc says there is an exceedingly low ebola risk in passengers that were pulled from a flight from dubai that landed at bostons Logan Airport yesterday. Scary watching it unfold. Emergency crews removed five passengers with flulike symptoms. Strong storms swept across the midwest last night. These are pictures from central illinois. Trees snapped in half, twisted metal, even some roofs ripped off of homes. At least 13 tornadoes were reported from texas to alabama. And two people were confirmed dead. Thousands left without power. A system is now headed towards florida, georgia, and the carolinas. In north korea, trying to end speculation something is wrong with its leader, media there that is going to be difficult. Releasing photos of kim jongun. This shows him supporting himself with a cane as he toured a new housing project. I dont think its possible to prove there were reports about why he made the visit. Rodman could have helped us here. Before today, the last time he had been seen was at a concert on september 3rd. The animal torture as a child. Some type of prob. What kind of concert do you think he was at . I have no idea. You come up with Britney Spears and justin bieber. Come up with something yourself. Go ahead. Coming up next, trying to attract ipos to help Tech Companies go public. Here he is, Duncan Niedermayer has a new gig and hes going to tell us about it on squawk box when we come right back. Guys youre not gonna believe this watch this. Sam always gives you the good news in person, en the bad news on email. Good newsfedex has flat rate shipping. Its called fedex one rate ®. And its affordable. Sounds great. cell phone typing typing continues woosh cell phones buzz, chirp and we have to work the weekend. Great. More good newsits friday woo ship a pak via Fedex Express saver® for as low as 7. 50. Dad,thank you mom for said this oftprotecting my future. You. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Welcome back to squawk box, everyone. Weve been watching a lot of news. Lets tell you whats front and center right now. Cargo traffic through the panama canal raising 2 in the latest fiscal year. Aerosays it is seeking a multichannel programming distributor classification from the fcc. And a mixed quarter for jpmorgan. Earnings falling two cents short but revenues beating street expectations. Right now its fluctuated back and forth. Right now down by about 16 cents. We should say shareholder. Com which released those earnings, called this an operational error. I dont know if that means a fat finger. Were not sure what time. It must have been before 6 00 a. M. Yeah. 4 00 or 5 00. Whats an operational error . I dont know. Guy hit enter too soon . Either they did it on purpose or it was an error. If they didnt do it on purpose, we assume it was an operational error. Its like the failed protocol in dallas. She was covered. But something failed. Got to say something. Oh lets get to steve leisman, excuse me, with a news alert from where is he . Im over here, joe. News alert from the this is bill yeah this is his report. And it fell 0. 8 to 95. 3. Its well below the prerecession average of around a hundred. And under the wall street estimate well. Six of ten were negative. Plans for capex. The earnings trend down two. But good time to expand, that was up four. The average number of workers did take a jump and all the Inflation Numbers also took a step downward. And wage increases. But the wage numbers still among the better ones weve seen since the recession despite the job numbers overall. The overall Small Business not feeling it in september. Andrew, i was thinking what a great number this is. At 95 were ten away from the worst ever and five points from average. 2 3 of the way from the worst, 1 3 from the best. Were going to a talk to our friend Duncan Niedermayer. Today hes using his Public Market prowess in the preipo market saying this is the next frontier. Here to explain his role in the market is duncan, managing director of battery east. Good morning. Good morning, guys. What the heck is this . For years youve been selling us on this idea companies have to go public. Now youre light forget about it. We have this other thing on the side. I think the media is making it a little binary. Explain to the audiences what were talking about. Batteries is a Small Company im giving involved in with three other partners. San franciscobased. Were trying to address what we see as a confluence of issues that private companies are dealing with. Heres the combination of factor. Number one, youve got the Companies Want to keep control of their Shareholder Base. Thats number one. Number two, the employees sometimes as companies are taking time to go public, theyd like preipo liquidity. And also Traditional Market investors. So to address those three issues together which are not being addressed today, thats why we created battery east. We think we can help the Companies Keep control of their base. Sell their stock if theyd like to. Big public investors. This is a little bit, though, it takes some of the thunder away from the i. Rks o. The big ipo and people who feel like they cant get in early in the premarket before all this happens feel like theyre the ones who are going to be left holding the back. Is that a fair assumption . I think thats probably right. But if you go back two or three years ago when you had twitter, linkedin, all ready to go public. They were waiting to sell stock to anyone who would buy it, dlrp some markets set up but they werent transparent. And the buyer had no information. What were trying to do is say if the Companies Want to stay private longer which is totally sensible. Maybe they choose to stay private longer, can we give everybody what theyre looking for and include some of those people youre talking about too . It doesnt have to be all big Mutual Fund Investors if others want to move downstream. Lets try to address everyones needs. The business that silver traded. Second market shares posts, a couple others came up. I think they were pretty opaque. I think there was a lot of information, asymmetry. I think as the companies that they were focused on went public, youve seen that sort of almost disappear. So what were trying to create is a simple intermediary business where weve become a trust trust trusted intermediary. Why isnt this one of a portfolio of various exchanges, if you will, that your former company owns . Its funny you should say that because i did toy with this idea for a time. You can go to the company and say have a monthly auction, if you will. I still think that can happen at some point. We dont see any doing that in the near term. What is it due to the retention of really talented people . The people who get in to me im thinking that fifth employee, tenth employee that you want to keep, if you can cash him or her out early or partially out early, they might say im going on the next adventure. Yes and no. But youre hitting on a good point. Whats happening is some of the employees maybe just because of a life event. They want to buy a home or theyre having children. And they need some liquidity. They dont want to cash out, but they need some liktty. They go to the bank and they say its great you have this stock on paper, but you cant pledge it. Then they go back to the company and say can i take some off the table. What were saying to the cfos is theres a way for everyone to get what they want here. Youd like to retain the employee but you want to keep control of your Shareholder Base too. You want to be more transparent about it. The disclosure. If you let moms and pops go fully downstream to your how much disclosure are you really providing about these companies . Theres going to have to be a lot more information provided by the company and part of what were trying to achieve here is you want to eliminate that on the asymmetry side. To be buying shares from someone who works at the company. Isnt the whole purpose of still being private not releasing all of this information, isnt that part of the i think thats right, but if the companies are going to want to do some almost private placements if you want to call it that, i think theyre going to have to be willing to give more of the information. And their alternative is simply not to. But you want to be sure that everyones got the opportunity to make an informed decision on both the sell and buy side. We still treat ipos like the jack ma ipo we just had, we still treat this like a major event. Five years from now, do you think thats still the case . I think it still will be because think of the ones that weve seen the last few years that were also big events. What we just talked about the last few minutes was going on before the ipo. And all were trying to do is just organize it a little more. Were not going to be competing with the banks. These are going to be small transactions. With everybody trying to move downstream and the companies wrestling with these issues, we thought there was an opportunity. Fwl one of the several things well be doing. Did you close the alibaba deal . I was there i went to hong kong a couple of times to help win it. I promised the company i would be there for the ipo. Other than ringing the bell with my mother in late august, her 90th birthday, i was behind the post for the alibaba ipo with jack and joe and everybody. So youre announcing your title at battery east but you suggest there are other things in the portfolio. Thats nice of you to ask. This is about battery east, not me. But ill be doing a handful of things, including the battery east assignment. All right. Well come back with the next piece of the portfolio. Nice to be here. Thanks for not doing it on the phone, joe. I appreciate it. You waited i think youre a guy who can wait until high def is mainstream to come on. Otherwise it doesnt do you justice. Its amazing. Thank you. Because you can see the slightest thing wrong. Hes a very handsome man. Thank you. Duncan, thank you for being here. Time warner ready to meet with analysts. Plus an upgrade for netflix. Tom lee, founder of fundstrat global is going to be here. Take a look at futures right now. See the how market is setting itself up. We have green arrows. Dow up about 14 points higher. Were back in just a moment. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. 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With xerox, youre ready for real business. Welcome back to squawk box. Lets take a look at some of the morning stocks to watch. Both lowes and home depot were downgraded. A near term risk of correction based on tepid earnings of renovationbased suppliers. So well see whether that plays out. Dominos earnings beating estimates. Revenue also topping consensus. And costco announcing it plans to enter the china ecommerce market. Its going to open an online store on the alibaba site. Wolverine worldwide earnings Beat Estimates but revenues fell short. And the maker of hush puppies and other shoe brands lowered its revenue outlook for the year. I havent seen updated hush puppies. I used to wear them when i was a kid. Dont own any now. Would you know them if you saw them . I would know. Have you seen them around . No. I havent seen the dog anywhere either in any of the kids stores. But i would know them if i saw them. Maybe theyve changed or updated. While you guys check that out, were going to talk about time warner. Theyre meeting with analysts and holding an investor meeting tomorrow. On the phone right now rich greenfield. Hes the media analyst at btig. Upgraded netflix last night. Well have more on that in just a moment. On the phone. Hes on the phone. And he looks great on the phone, we want to say. Got this time warner meeting. Lets start with what you expect to hear this afternoon, rich, and then tomorrow. I think time warners got to explain why its strategy beyond cost cutting actually makes sense versus i think you broke the news of the interest of merging the two companies. I think they have a lot of explaining to do in terms of why hes so confident in the outlook. Were seeing a lot of cross cutting across their divisions. I doubt cost cutting to drive earnings is the answer investors are looking for. What is the Growth Strategy of these assets over the next few years . And so do you see a light at the end of this tunnel. Is there a way to make on the revenue side not just through cost cutting . I think youve got to go out and theres a lot of chatter about hbo going direct. Is hbo really prepared to go direct . Look at how well netflix works with nearly 40 Million People streaming in the u. S. Alone let alone how many people are using it outside of the u. S. Hbo as you can tell, look at when game of thrones launched. The question is how well is this Company Prepared for a future where they clearly want to go more direct to consumers. Do the math for us. For example, hbo right now, how much money does hbo or time warner collect for each subscriber and how much could they collect if they went over the top . Right now they collect 9 to 10 per month out of the 15 you pay your Company Every month. They have roughly 30 million subscribers in the u. S. They charge the full 15 directly to you and is their content offering broad enough to charge that, but lets say they got even 10 the same that they charge right now or get, the question is how much would they have to spend on Customer Care, marketing. Again, the biggest one is how much would they have to spend to actually handle 5, 10, 15, 20 millionplus people streaming every single day the way they stream netflix. Netflix spends hundreds and hundreds of millions of dollars. Is hbo really willing to commit that type of capital to make a great direct to consumer offering . I think thats a big question for jeff. Rather than cost cutting and driving earnings, shouldnt they be reinvesting not just in programming for assets like turner, but to make their infrastructure second to none. Real quick i want to go to netflix. Are you buying or selling shares of time warner . Right now were watching. We dont have a rating on time warner. Were trying to figure what to do with it here. Netflix, you do like it. Youre saying buy it. Youre expecting 100 million subscribers worldwide. How do you get to that number and put it in the context of hbo, can they get to that number . Hbo is already at that number across the world. Hbo means very different things. Its joint ventures in latin america. If you go to the kingdom its netflix is clearly trying to be n netflix is the same wherever you go. Its all about international. I mean, we believe that theyll be roughly 50 50 domestic and international by the time you get to 2017. So that assumes tremendous growth. Each of the next several years overseas. Thats huge growth overseas. And it assumed not just success in markets like france and germany, but going to things like spain and expands into asia whether that be japan or south korea or a joint venture in china down the road. Okay. Rich, thanks for your council on all of this. We will see what im warner has to say later this afternoon and tomorrow. Thanks for having me. Thanks. Up next, take a look at a watch that costs so much money that it actually comes with a guard. Theyre not going to leave this in our hands alone. We will show you this one and an even more expensive one after the break. Plus we are minutes away from citis and wells fargos earnings. Right now as we head to a break, the profit is back. Heres a clip of tonights premiere episode. Today im headed back to g greenwich to see how its laid out. I feel like im in a flea market. This will now become a blueprint for the existing store and now stores. Were going to take this out. Wait, what . What do you mean . Were going to be closed for a period of time. Probably about a month. What. Hold on. Whats going to happen with this merchandise . Were going to liquidate it. Designing for the five pillars is going to be expensive. I need to liquidate the bad inventory we have so i can take that cash and reinvest it in inventory that sells. Sorry. Get right in there. [ heart beating, monitor beeping ] woman what do you mean, Homeowners Insurance doesnt cover floods . [ heart rate increases ] man a few inches of water caused all this . [ heart rate increases ] woman 2 but i dont even live near the water. What you dont know about Flood Insurance may shock you including the fact that a preferred risk policy starts as low as 129 a year. For an agent, call the number that appears on your screen. When im working, things can get so hectic. So sometimes i need to find an easy way to express whats most important to me. Like, with my crew, i use shorthand to talk to them and tell them what i need. And when i need to talk directly to my fans. But the most meaningful shorthand of all is the one i use when im about to drive x. Its an easy way to tell everyone that im about to drive. And i do it every time before i get behind the wheel. Use x to pause the conversation before you drive. Because no text is worth a life Johnson Johnson reporting 1. 50 a nickel ahead of expectations on 18. 5 billion in revenue which is a little bit above the 18. 377 estimate. And then they forecast 592 to 597 which is brackets of 593. The streets at 593. I got the stock at this point indicated i dont know whether thats the actual quote from this morning or yesterday. What do you have . I have a 9997. I dont even have one. But they are saying they are increasing their own earnings and Revenue Growth guidance for the year based on strong pharmaceuticals. I have 101 to 108. Crazy. All right. You dont need to be a watch collector to know the World Premiere of a seven figure mega watch is a big deal. The only place youll see it is here on cnbc. Compliments of the most exclusive watch brand on the planet. Im about to do the Michael Jackson moonwalk or we have a very expensive watch. We went to the headquarters where the president terry stern gave us the first look at their most expensive watch ever. As they say on facebook, its complicated. Take a look. This is the most expensive and most complicated wristwatch ever created by highend watch maker petech philippe. Its called this grand master chime. Its packed with over 1,300 parts. Every part has been finished by hand. It took seven years to create and it includes one feature that will literally make the tech collectors flip. We have six patents on it. And you can also flip the watch. This is the first of only seven pieces that will be produced and collectors have to apply to buy one. If youre deemed worthy of owning it, the price tag . 2. 6 million. And whats amazing about this, even if you have the 2. 6 million and you want buy it, you have to go and apply and they have to accept. Do you have a write an essay like getting in college . No you have to prove you built a collection and they understand them. They get ten times the number of applications than they accept for these highend watches. Wow. Nothing exciting customers more than saying no. When i got a maltipoo they wanted to know all about us. But thats so i was nice to the dog. Do i need to be nice to the watch . You need to be a good owner . Michael jackson only wore one glove. You would not be Michael Jackson if you did that. Thats true. Explain why you have the gloves. Right. So we couldnt bring you the 2. 6 million watch. But we could bring you something almost as good. They shared with us and it did come with an armed Security Guard this morning. Security is right over there. Yes. Hes watching very closely. And hes arm snd. I cant comment on that. So this watch, this is one of their greatest time pieces. How much do you think this watch costs . 63,000 . 750,000 . Or 1. 3 million . I flow because i heard you say it. 750,000. For a quartz watch . Its not a quartz watch. You have gloves. What do you wear . What kind of watch do you wear . Swatch watch. He wont admit he has a rolex on. I have a rolex on. Very lovery watch. Its one of the parts of the economy despite all the turmoil you can keep it. I dont know if i want to touch it. Im nervous. What if i drop it . It comes in the goody bag. This is very nice. To me the big question is with this whole smart watch things, what happens to the high end market . Its different. Like when people say it comes out with an lcd, it doesnt affect the market. Different clientele. But these watch prices are going through the roof. I had it upside down. And you never actually own a patech. Well, here you go. They brought goody bags for us . I think we have to give it back to them. Okay. Thank you. At the top of the hour, citigroup and wells fargo numbers, were going to look at them. Quarterly results. Former jpmorgan strategist and founder of Fundstrat Tom lee is going to break down markets right after the break. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. receptionist Gunderman Group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. So ally bank really has no hidden fethats right. Accounts . Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. Welcome back to squawk box on cnbc. Im becky quick along with joe kernen and Andrew Ross Sorkin. And citigroup is now reporting the estimate. First let me give you the number and its adjusted. 1. 15. Thats the first number the Company Reported was 1. 07. With a revenue number of 19. 6 billion. Which is above estimates. So that would be above on both counts. There is some talk now that the plan at citi as well. Do we know about that already, andrew . Which piece . Theres a divesiture plan. Within the news release, theyre talking about divesting. Im not aware of what theyre talking about. Also disclosing the results of the investigation into the Security Unit in mexico. Let me tell you. Wells fargo also hitting now. It came in line with expectations coming in with 1. 02 a share. Thats what analysts expected. The revenue coming in at 21. 21 billion. Also talking a bit about their Third Quarter net charge. Their efficiency ratio, 57. 7 . Thats up 140 basis points. I have a citi trading higher now. Do you have that . A slight issue with one of the computers out here today. Indicating higher today. 31. 42 after closing at 50. 20. Okay, good. Im going to those divestitures for citigroup, looks like its closing in countries including japan and korea. Trimming of global operations. It is planning on keeping its institutional business in these areas and expects to sell some of those units by the end of 2015. Okay. The s p, lets get to tom. The s p closing below its 200 day average. The nasdaq down more than 8 . The transports which is seen as a good indicator of Economic Growth slipping 2. 2 yesterday. But a lot of that was with the airlines. And you can attribute that to whatever you want. But it is in correction territory. And the same story for the russell 2000. Here to break down the recent volatility, getting an update from tom lee. Founder and head of research at fundstrat. Weve come to you quite a few times. Youve stayed bullish through thick and thin. Your confidence been shaken at all in the last month or so . Well, i mean with its been pretty scary out there because weve had some big technical breakdowns, some faults rally. And i think our sense from clients, theyre getting very uneasy. The last couple weeks have been tough on them on top of whats been a tough year for fund managers. Blue the key here is how much has changed. I dont think much has changed. We still have a u. S. Recovery underway. Weve got a tail wind coming from lower oil. The weaker inflation. Theres still a lot of capital on the sidelines. Companies have a lot of cash. So, you know, id say that were going to get through this rough patch and i think were still going to have a strong finish to the end of the year. And if you were to the thing that has sort of shaken the confidence in Equity Investor the most over the past six weeks has been well, i think whats scared people is theres been an underlying sort of sense Global Growth is at risk. Chinas been weak. And the feeling of the last two weeks has been, well, maybe the weight of all these concerns is too much. And then its been tough to sort of try to buy a dip because volatility spiked. Weve had the rallies that failed. I think in general people are pretty scared. As you know, thats usually a very good setup. I think at e oend they have day were going to look back at this volatility and realize the spike in the vix, the selloff are all presenting excellent entries. We just dont know maybe when to capitulate. We were watching every twitch and move from the fed. Weve been watching it for a long time. And qes ending this month. And they sort of gave us an all clear by saying we realize there is some slowdown in growth. Some of them talking about inflation being quiet. They said all the right things and it didnt help this time around. Is that europe . Is there any portion of this that is the uncertainty of a possible pandemic that i mean, the markets get scary sometimes for irrational reasons. Do you see any of it with that . Markets dont like uncertainty. None of us know how this is going to play out. So i guess i really should have mentioned i think there is a lot of anxiety about, hey, the last two times qe ended, look what happened to the market. Not ebola though. It was temporary. Yeah. Sorry. I wasnt sure which one you meant. What about ebola . I mean, the Airline Stocks yesterday. What happened . I mean, yes. I think its a human its a real human tragedy. Its a scary disease. Its sad so many people have been afflicted. But, you know, should this be something that should weigh on the multiple or slow Global Growth . In short, no. Nigeria is a that should give us all hope. Because the very first they talk about the rickety Health Care System and its been almost 45 days. Almost clear. W. H. O. Needs what, 47 days . Is it 47 . I just read it. But a certain amount of time. Theyre close to being out of the woods. So hopefully that works. For me, i dont know. I can deal with ending qe. I wish they would have ended it a long time ago. For me i point to isis or something that would give me just wondering about everything we thought about the world. Now im not sure about anymore. Well, you never know. There could be some other data point that emerges that make us realize growth is fine. And were go toing put this all behind us. What would that take . Is that an indication europe is not as bad as we thought . Chinas not as bad . I think it could be any of those. One thing that should give us comfort that Global Growth isnt as bad as we think is the financials have been acting well. Youd really think if were about to have a downturned economy, the financials should take it on the chin. The earnings weve seen have been much better than expected. But you can also put this in the context of citigroup pulling back in. Theyre pulling back on that front. In the one way, id say thats true. Banks are becoming more blue chip. Theyre playing to their strengths. Strengthening their franchises, that should be good for multiples longterm but theres a lot of uncertainty. Lets continue hang out right there for one second. Were going to talk a little bit more about citigroup because they did come out we the qe results. Calling now with reaction to the results is anthony polini. Your headline . Eps beat on expenses and revenue. Very pleased with the quarter. Pleessed with the quarter. What did you make of what seems to be a larger pullback in temsl of global ambition with the company. Obviously a refocus on profitability rather than growth. So were looking for, you know, various low Balance Sheet growth over the next year. Then look at single digit Balance Sheet growth going forward. This is about operating leverage, not growth. Were looking at a stock right now trading up about 50 right now. What do you think it should be . I think it should be a 70 stock. I think thats the easy hurdle for citi. Once they provide more visibility on 7 per share on earnings power. So what has to happen . Lets break that down a little bit. What has to happen to get you to 70 . More restructuring. Start to see some Balance Sheet growth. And citi also is very positively levered to higher Interest Rates. All those things you just discussed, you suggest are effectively baked into the cake. Not necessarily into e the markets but what theyre doing operationally . Yeah, they are one of the few banks that is less dependent on a better Interest Rate environment for Earnings Growth. And thats one reason why we have a strong buy on them. You know, we can get Earnings Growth with a 218 10year with or banks that are more reliant really on the external environment. Its going to be difficult to get Earnings Growth next year without talk about citi in the context of the toer banks. We just had wells fargo out with their news. Its a question i ask. If you had a dollar and could invest in any bank these days, where would you put that . Weve been pounding the table on citi and jp. Wells has more on higher Interest Rates. Trading obviously was the big positive surprise for citi and jf. The jp numbers are better than they looked with 26 cents a share in legal expenses. You know at least half of thats gone away over the near term. So jp really did beat in essence when youre looking at forward modeling. All three companies did great. And the citi story shines more on valuation. Okay. Were go toing leave the conversation there. Anthony, thank you for that. You allowed to talk jpmorgan post being a jpmorgan man . I can. I may not be the best guy to dissect numbers. But in general, you know you own shares still . Yes. Okay. Well talk more about that when we return. And the streets reaction to some of the numbers we got as well. And later, from actress to entrepreneur. Suzanne somers is knocking on the squawk door. Shes here to talk business, her book, and much, much more. We think of this as threes company, but not really. A look at the futures right now. Were back in just a moment. Dow looking to open up higher about 60 points. How do you beat the number one seed . 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 youre in. Today theres a new way to work. And its made with ibm. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Its a fresh approach on education superintendent of public instruction Tom Torlaksons blueprint for great schools. Torlaksons blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a wellrounded education. And torlaksons plan calls for more parental involvement. Spending decisions about our education dollars should be made by parents and teachers, not by politicians. Tell Tom Torlakson to keep fighting for a plan that invests in our public schools. Welcome back to squawk box. Calling in now with reaction to the results, paul miller of fbn Capital Markets. Paul, weve now talked about jpmorgan a little bit this morning. Weve talked about citi. Where do you land on wells . I think wells probably did pretty good relative to everybody else out there. Its a big institution. Its hard to move the needle. But they posted a buck two. They had solid loan growth. I think the one necktive if people want to point to it, is it did drop nine basis points. But thats more their deposit growth and putting that money to work quickly. So the big question is would you buy the stock at 49. 70 . A lot of people feel its fairly valued. I think relative to where we are in the world, i would still be buying wells fargo. This morning were looking at a 10year 220. I dont know if banking stocks are going to go up in that head wind. But if we get a rise in rates again, yes id buy wells. Our previous guest put a does that make sense to you . I know citi has a lot of different moving parts out there. I do cover jpmorgan. Im in the camp the the bigger banks are not getting the credit they deserve. Relative to regional banks, id buy the big bank bs all day long. So thats where i was going to go. Among the biggest bank wells is still your top pick . Yes, it is. I was trying to go to you before we went to a break. Do you have views on these particular banks, tom . I mean, in general i like the financials. I mean you like bigger banks over the regionals . Yes, i mean, in some ways. If you think about where the opportunity is going to be, its going to be in loan growth, Capital Markets. You know, if the fed tightens we do get some benefit from them. But, yeah. I think just in general when we think about franchises and blue chip businesses, these big businesses have become much better businesses over the past few years. How do you even view a citigroup . Theyre just big complex businesses. Theres a place for all these companies. Theres plenty of market share, pricing power. You know, i used to work at citigroup. I think its a great business. Okay. What is going on over here. You guys are still working on numbers . Trying to make sure we we look at these things to figure where the stock price is going. I was trying to do the interview. It looks this morning weve been watching citigroup. Just looking through some of the other earnings and seeing where theyre trading as well. Okay. Why dont we thank paul. Focus. Excuse me . Focused. Its hard to focus with all of these numbers. A lot of breaking news and keeps us busy on mornings like this. Want to thank you paul for his time. Tom is staying here. But we have other stocks were watching this morning including gopro. Shares getting slammed yesterday after saying Michael Schumachers injuries in a ski accident last year might have been caused be agopro camera wearing on his head. The gentleman came out later db i think the schumaker cam came out and said that was not the case. But on that initial report, there was a huge drop. Also Johnson Johnson earnings beating by a nickel. Sales were helped by strong results for the companys new hepatitis c drug. Also raising its forecast earnings for the year. Look at where that stocks been trading. Joe, id ask for your help but dont know if i trust your machine at this point. Looks like its up. 100. 60. After closing at 99. 12 yesterday. When we return this morning, she helped sell more than 10 million thigh masters. The one and only Suzanne Sommers joins us on the set just minutes from now. And as we head to a break, take a look at shares of wells fargo and cy tooe. Thats whats been hang over the last year. Squawk box will be right back. The all new, head turning cadillac ats coupe. Its irresistible. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Welcome back. Futures at this hour are improving from where they were when we first started talking about it. So weve been doing something right here. Weve been very calm and weve been talking to smart people. It has been universal with everyone weve been talking to this morning. Thats scary. That that say this as something well work our way through. Tom, you admit you dont know how far we fall before we hit the bottom. There are some things telling us were probably near the bottom. Theres a lot of signs of, i dont know, what you call capitulation or the big fear out there. Look at that. 2. 19 i just saw. What do you call that . I think thats a fear trade, right . It is. And to unwind a lot of other things. 2 for ten years. Man. Better than a half a percent. Makes a 2 dividend look like a bargain. If inflation is zero, i guess its okay. Jpmorgan is meanwhile holding a media call. Kayla tausche was on that call. She joins us now with the highlights. Kayla . Hey, joe. This is of course the call every quarter we get to walk through the highlights from the earnings as well as hot topics and Current Events for the company. Ill jump right in. We did see profits across the board that were less than expected at jpmorgan. A lot coming from the corporate and Investment Bank due to a 1 billion legal charge. I asked them to clarify what that was. While they couldnt provide much of an explanation, they did note part of that was related to Foreign Exchange and some of the currency settlements that could be forthcoming. I asked about global volatility as well. Jamie dimon saying while the Global Situation may slow down american growth, it wont hurt the Consumer Recovery where broad based spending is improving there. And he said that some of jpmorgans businesses, the commercial lending business should be insulated from that when it does continue. They couldnt predict how long it would last. Lake, the cfo of jpmorgan said fixed income trading would continue to be choppier in the Fourth Quarter. Finally, we did get some comments from dimon on his health. He says the prognosis is ramping up. Of course he was diagnosed with throat cancer earlier this summer. He has just completed treatment. He also commented on cyber securities saying they did lose a battle. But it wasnt a damaging one. They do continue coordination to help ramp up some of the security efforts going forward. Thats the latest from the jpmorgan. Well have more headlines throughout the morning. Back to you. Thank you very much. Good to hear that jamie dimon is on that call talking about these things too. When we come back this morning, crudes slippery slide. About to hit a fouryear low. Duting estimates on oil demand. Were going to be talking about oils next move after the break. And as we head to that break right now, take a quick look at the equity futures. Wow. Things have picked up more over the last few minutes. Dow futures looking up about 84 points. S p futures higher as well. Up by close to 12 points. And the nasdaq up by about 30 points. Stick around. Squawk box will be right back. Welcome back to squawk box this morning. Among the stories front and center right now, Small Business optimism falling last month. More owners say they expect a slowdown of profits and sales. Also costco announcing plans to enter the china ecommerce market opening an online store on the alibaba site. And hundreds of alleged dropbox use names and passwords allegedly taken. The user claims to have hacked 7 million accounts. And is asking for bitcoins to fund his operation. Dropbox says it has not been hacked. So hopefully im not on that list. Costco and china belong i mean, its big. Big box. They got lots of stuff. And lots of people. And chinas got a lot of people. Costco and china seem like perfect together. Using that noggin again. Like when Dunkin Donuts said why dont we sell donuts in california. It is the golden state, is it not . Certain things i could have come up with. Another failed rally to start this week on wall street. The major averages so far managing to avoid a correction with the s p closing below its 200day average. And the nasdaq down more than 8 from its high this year. Meantime, the broader banking indexes only risen a little over 7 in the past year. Here to break it all down for us. Hes founder and head of research at fundstrat local advisers. And you have a lot of things i think in your tool box. Something you were mentioning off camera. Which i dont know whether its the most important thing, but how do you what do you use for sentiment. Do you use personal anecdotes dpop you use put call as many do you use bearish or bullish . And where are we . Because it seems like a bit of a change in the past week. Theres a lot of fastmoving measures. The vix is a good one. We do rely on a lot of anecdotes. When we hear from people, it gives an idea what people are really fixated on. I think over the past week weve really seen some true damage. You know, that peoples positions and relative performance suddenly confidence was shaken. And a lot of times its with people weak hands rather than strong hands. We always talk about that. Theyre the ones that sell early and regret it. Yes. And weve been hearing from the stead jer hands in the past especially weekend. People who had really been unfazed by market volatility. Were close to a turning point here where the technical damage has really scared people. Its gotten their eye off the fundamentals. And as we look back, you know, whenever you look at periods like that. Those are really just buying opportunities. Theyre not changes in the direction of the market. I dont think the bull markets over. We always point out that if you believe deep down that were in a bull market which will see higher in one year, two years, you should be so lucky to get a 10 discount on stock prices. And if were going higher, normally the market wont let you have a good deal. Itll make you not buy down 4 , 5 , 6 . It will run away from you typically. I think for most people its hard to time the bottom. Meaning i dont think it makes sense to say the market is going to go down another three. I want to wait until 10 and buy. Yeah. What happens is you get paralyzed and the markets up five. Then youre chasing it higher. I think it makes sense to say where do i want to be a year from now . I think you made an interesting point. At the 10year where it is, theres a lot of stocks in the s p 500. And even the russell paying bigger dividends. Financial conditions dont seem it doesnt seem like theres a lot of stress in the system anymore. I think we can thank the fed and central bankers around the world probably. Thats right. If you look back and say whats the difference between now and the last time qe ended . There was financial stresses building, so you had to be nervous about could the market take a tumble. Theres very little evidence the financial conditions are weakening. Its more nervousness across maybe theres a lot of leverage. And a big tail wind from oil prices. That filters through all parts of the economy. All input cost events have become lower. It only hurts the Oil Companies which most people are happy. Consumers spent 328 billion a year in gasoline. Its 15 of their discretionary income. Just the drop as of last week in gasoline was a 10 billion dividends in the second half of this year. So you can imagine if Oil Continues to fall what kind of dividend its going to pay to consume consumers. Its just the beheadings every couple of weeks and ebola. Those two things i mean, those are not a great backdrop for anyone not just in Financial Markets but in general. Just confidence. Its very unsettling. What year is it . 2014 . It is. Thank you. Very unsettling. It can be scary, yes. Because we think weve got it licked and we dont. But again, a year from now we may have a new worry were going to put these behind us. And what should it really have done to the stock market. Really shouldnt have done much. Maybe germany should be our biggest concern. Theyve been holding up the entire eurozone so long. If theyre not there, you wonder. I think europe has been in peoples radar. But, you know, i do think in the shortterm, the weakening of the euro is going to be a shortterm tail wind. You may see growth pick up in that region. Okay, tom. You have two first names. Tom and lee. And it always gets mixed up. Were going to carl larry now. So what did we decide about guys with two first names . They rock. Okay. Thank you. Shes so polite. Isnt she . She makes up for a lot of stuff i say. Oil falling to below 85 a barrel. Could cut output, shore up prices. Thats fading this morning. Carl larry is president of oil outlook and opinions. She joins us now with more. Good morning, larry i mean, good morning, carl. Good morning, carl larry. Good morning, joe. Carl, i dont remember me thinking that you were crazy about oil recently. Like people that have told me that oil is great, its going back up, ive wondered. Because so much global tension and its been unable to hold 95, unable to hold 90. Where are you now . Is 84 as low as were expecting to see or could it go below 80 . I dont think its going to go below 80. Right around the 80 area. 82, 83 is about right. The funny thing about oil, this is what young was talking about. I think this is what the fed is watching. This is disinflation. It has nothing to do with the u. S. Our demand is at a record level. Were seeing the lowest supply cushion weve seen in ten years. Weve drawn down 33 Million Barrels of crude over the last six months. Theres not an issue with crude supply here. We need it. And were producing almost 9 Million Barrels a day. So its great. Its the rest of the world thats really having an issue. You have people like opec and theyre in this price war. But its not a price war with us. Its with them. Saudis did it the week before. So its like youre playing chicken here with oil prices. They need to cut production. Well see where it goes from here, but its not the u. S. And theyre not cutting. Theyve got bills to pay. And theyre going to just yesterday the analysis was that a lot of these guys are going to try to maintain market share and theyre going to do that from producing the same amount for less. Right. Ill tell you a wild card here, what we might see. If anybodys going to cut production, it might be russia. Theyre throwing so much mustnt to defend the ruble right now. They might have to cut production and thats where we might see the price supported here. They definitely cant cut right now, can they . I dont know if we go below 80 im going to have to come back and tell you youre wrong. If it goes below 80, does that change . Nobody said were going in three months dropping 20. No, they didnt. But we were here in 20112012. We bounced right back. It was 2011 and a year later we were back above 100. It happens. Just right now it this is deflation. This is whats going on right now. Prices shouldnt be this low, but its fine. And hes in houston. Yeah. So he knows what hes talking about, andrew. Right . Youre in texas. Oil is here. Carl, thank you. Thank you. Tom and lee as well. Thanking all four of you. Tom, thanks for coming in. Up next, Suzanne Somers is here. Were going to talk thigh masters, business, success. I sing that song. You know who i miss . Mr. Roper. I miss him. Well be right back. Success. Thats why we use fedex one rate®. Their flat rate shipping. Exactly. It makes us look topnotch but we know its affordable. garage door opening sighs honey, havent i asked you to please use the. We dont have a reception entrance. Ship a pak via Fedex Express saver® for as low as 7. 50. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Live now at times square right there. Welcome back to squawk box. Look how the market is setting itself up for the day. Things are looking up. Dow looks like it would open up higher. The nasdaq looking like it would open up about 27. 5 points higher. Lets get to other headlines. Burberry shares getting hit. Spooking investors with a weak revenue outlook. Were going to be watching u. S. Luxury retailers including michael kors, tiffany, and ralph lauren. All right. Well, weve been waiting for this guest all morning long. We have someone very exciting sitting with us right now. Im stretching a little bit because i dont want you to see what theyre doing with the microphone. I said they brought the other imposters in and they never recovered. Took some extreme measures that didnt quite work out. Are people still talking about this . Youre not sick of it, are you . Of course not. You know, last year. Hello, everyone. Hello. Suzanne sommers. Last year im lying in bed and im watching saturday night live and i went, i woke my husband up. Look at this it was lady gaga playing Chrissy Snowe with Justin Timberlake and somebody else probably really famous, apologies to whoever that was. And they were doing a takeoff on threes company. If its three way, then it aint gay. Anyway, what i saw by watching this was clearly that show had an iconic effect. I was lying in bed saying to allen, good thing they fired me. You know what . They thought they could do that. And put any blond in there and it didnt. I remember when it happened. It hurt the show. It didnt work. What did they lose overall . It was in the way, way, way in the millions, maybe billions. But probably close to 1 billion. It was trend setting in terms of our attitudes towards sexuality and everything. It was ahead of its time. Who does not love i mean, i miss john ritter. I miss john ritter. What a great actor he was. He really was. And i came in very green and announced that to everybody in year one. I was going to be a chef and this is not really the direction i was going in and so im just like a sponge. And year one, i had a mentor, one of the producers. And he really took me under his wing. And then one day halfway through year two, im watching john ritter and i went, oh its musical. Comedy is musical. Set up beat. And from that moment on, it all made sense and john ritter and i became the sparring partners where it was just such a delicious chemistry. It was. That was what was so perfect. Was joyce was good too. Shes an excellent technician. And they always had an iso camera on john and i so if something happened with the audience we didnt expect we would go with it. How many seasons all in . I we lost the mic. Thats okay. Well get the microphone back. For those who dont know it, what happened was you were making substantially less than john ritter. You wanted than all the men in television. When my contract was up, i went to the network and i said why are all the men being paid ten times more than me and im on the show with the highest demographics of all women in television . But what they wanted to do was make an example of the woman on the number one show, the highest demographics to no other woman would have the audacity to ask for parity. I believe in the end that i won. I lost, but i think i won. Because my career went on. But women now get paid commensurate to the amount of tickets that they sell and thats what it should be about. Do you sell tickets . What happened from that, though, we all watched very publicly your transformation to a businesswoman and entrepreneur. Thigh master. How many millions of those sold . Ten years ago it hit 10 million. Its still being sold in 163 countries and were coming out with a new version this year. See, thats the gratitude i have for threes company. That firing, that controversy kept me out there. And after i got over the shock of being fired, it then allowed me to rethink and reinvent. What led to this thigh master . Thats such a girl thing. I had bought a pair of blanac shoes. They made my legs look good. But theyre 565. At that time that would be like 2500 now. I thought my husband is going to think im so stupid for paying almost 600 for a pair of shoes that are just nude shoes. So im standing there in my underwear and i came out of my dressing room and said how do you like my new shoes . And he said great legs. I said, my gosh. Thats the commercial. It starts on those shoes which i was then able to write off. And they panned up my legs while my husband is saying great legs. History was made. So its fun. Were entrepreneurs and were having a lot of fun with it. And now i write books on the lecture circuit, feel like i have a purpose in life. I guess its a the biggest question we have. The transformation to the entrepreneur wasnt the path you planned to take. But where you go from here. You have to always use it like judo. Rather than sit and feel sorry for myself which i did for almost a year. But then i heard a voice. I hear voices like the movie. And the voice said why are you focused on what you dont have . Why dont you focus on what you do have . I thought what do i have . And i heard again, you have enormous visibility. Right. Everybody knows my name. So i said to my husband, you know, i sing. Id like to do is vegas act. So he went to vegas and went from hotel until hotel until he could get me a twoyear deal at the mgm grand. At the time running it said why do you want a twoyear deal . He said because if she doesnt quite hit the mark first time out, i know her. She will. It just might take a little while to figure it out. In tnthe meantime, the curiosit factor will bring people in. Which it did. We sold out from the night i opened. I did 20 years as a headliner in las vegas. In 1987 i walked on stage with Frank Sinatra and he was entertainer of the year and i was female entertainer of the year and that was really something. And he called me baby. You havent lived until Frank Sinatra says, hello baby. We want to thank you for joining us. Weve all watched your career. Theres so much more to talk about. Theres so much. More and heres my next product. I know it looks like nothing, but its a three way poncho. So if i was being demure. I would wear it as a cowl neck. Or take it done. Or bring the hood up. That was fun, wasnt it . Where do you sell them . Any large retail is store or three way mon choe. Com. And lets hope lady gaga wants to to do another parody on it. Thank you, youre a great group. Up next, a big recap of the financials we got this morning. Squawk box will be right back. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Details just out on the Compensation Plan for new jcpenney ceo, marvin ellison. Hell get a base salary of 1. 3 million, a onetime signing bonus of 4. 1 million, and will be eligible to receive an annual bonus of up to 150 of his salary. There you go. Lets get to dominick. Hes been tracking the earnings of the morning, dom joins us. How about the banks first. Kala is always over jpmorgan. I want to read you more headlines coming out of citi and wells fargo. First of all, we do know that citigroup shares are up about 2. 5 right now. 51. 10, thereabouts, so far in trading, on about 451,000 shares in volume. Thats how the premarket trade is working there. We went through all the numbers and know its an earnings beat. One of the interesting things to highlight here again is they are exiting those consumer operations in 11 markets here. Although, it was pointed out here that they are not exiting completely the korean or the south korean Consumer Market fully, just the Consumer Finance portion, so we want to make that clear. Also, its going to maintain an institutional presence in all those markets. The one other thing i wanted to point out is that tangible book value has been on a steady rise and has been for a number of quarters right now. Citi is going to report its tangible book value being about 57. 53 a share. So folks like joe, who at one point in their life maybe valued banks upon how they traded based upon the multiple to book value may find that interesting, because citigroup still trades at a discount to its book value. Maybe that changes in the future. Also on wells fargo, Net Interest Margins, 3. 06 , thats lower than it was last quarter when it was 3. 15 and even lower than it was last year at 3. 39 . So Net Interest Margin margins, measure of a banks profitability, as Interest Rates stay low, these rates are going to contribute to those shrinking Profit Margins at a lending business for a company like wells fargo, but they do see improving credit quality as did citigroup. A couple of interesting notes to bring in there. Well be all over those Conference Calls when they start up. Citis will be at 11 30 and wells will be at 10 30. So its dominick, but the prompter said dom. Anybody would be confused by that. You can call me to see dom, it just right there anyway, lets get down to the new york stock exchange. James, jim cramer, how are you . Have we talked to you since that great win . Were you floating . No, that was a beat down. That was impressive, but look, i think so the giants go to dallas and dallas is going to be the Number One Team in the nfl. Just do you have a problem with that . I like that . Well, i mean, i guess its been a long time. I happen to like their coach. I think hes a nice guy, really a very bright guy, but day do seem real. Because unless seattle has had a major step down, i really think that dallas its a great win for dallas. I thought so, too, jim. You know, when dallas its been a while since theyve done well. And some people hate them, some people like them. We spent some time with romo. And he just said, im going to make you like me. And after like 15 minutes, he was like, geez, that guys a likable guy. I dont want his back to hurt or legs broken. Its an incredible conversion. Jim, is the market in trouble . I think a lot of the markets in trouble, yeah. I think when you have citi being the best and citi is the best, wells coming down, jpmorgan, just an example. Yeah, i think the markets in trouble, frankly. Because if you get i dont want to scaremonger ebola, but the you get another case of ebola in the middle of the day, you go down. If kabul falls, you go down. People are talking about that. If baghdad, if you have to put in marines, you go down. If you continue to have germany weakness, it goes down. What drives it up . Great upside in wells and jpmorgan, it would be a different conversation. Yeah, i dont like the market. You know, europe and germany are one thing, but you get a beheading and another case of ebola and the market just doesnt like a world in 2014 where we have those types of headlines. Right. Becky said something so great this morning with my friend, timmy freeman, where basically saying, hey, listen, everyone this is its a dip. What if thats not, thats the total consensus. And i said, yeah, that is the consensus of everybody coming on. And ive been saying on mad money that this is not a dip to buy, its just not. Well watch tonight, jim, and see you in a few minutes. Timmy friedman on the 82 National Winner team, alabama. I played football against timmy in some backyard scrum. This is a clone of me. Hes the greatest Football Player known to man. I didnt know that. He played in haileys backyard, had a game every year, turkey bowl, and he put me down so hard. Just breathed on me and would knock me over. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. 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. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Welcome back. The Zombie Apocalypse returning to amc, bigger than ever. Garnered about 5. 3 Million Viewers. Goes to show you the walking dead lives on. The chose has already been up for the last month. All right. Guys, weve been watching whats been happening with the markets today, and obviously, after the big declines yesterday that put some of these indices at their lowest levels in months and months, weve been watching to see what happens this morning. You are seeing some green arrows. In fact, the dow futures are up about 61 points above fair value. The s p futures up just over 8. 5, and the nasdaq futures up by about 27 points. Whats also interesting, if you take a look at whats been happening with the tenyear note, this is a huge one weve been watching. At some points, you saw the tenyear yield dipping below 2. 2 , 2. 199, weve seen it at several points throughout the morning. Im glad we got the banks out of the way. Well, the financials out of the way and the financials came through without many problems along the way. Thatset