Transcripts For CNBC Squawk Box 20141027

Fronts of the Economic Data coming. Then we have a lot of earnings. The fed will begin a twoday policy meeting tomorrow with an announcement set for wednesday afternoon. If all goes expected, the fomc will turn off its massive bondbuying program and will also assure investors it plans to stand ready to act should the economy be threatened. Also on the economic calendar, pending home sales today. Tomorrow, durable goods. Then thursday jobless claims and the first read on Third Quarter gdp. Finally on friday, personal income and spending for chicago pmi and consumer sentiment. Merck is the first big name to watch before the bell today and then well hear from twitter. Michelle, over to you. Well check on the markets this morning with futures suggesting earlier on to look like it will be definitive ly a positive open. The futures are lower suggesting the dow opens lower by 16 points. The s p opens lower by two and the nasdaq lower by roughly 3. 5. In energy news Goldman Sachs slashes the 2015 Oil Price Forecast arguing rising output will outgrow demand. The changes make goldman the most bearish of the major financial firms. Crude prices have dropped 25 over the past five months. Well show you what is going on this morning. Wti is at 81 per barrel while brent is at 85. 70 per barrel. Gasoline prices have been falling to their lowest levels in four years. The latest lumberg survey says the average price of a gallon of unleaded regular is down 18 cents in the past two weeks to 3. 08 per gallon. There you can see on the wholesale market trading at 2. 17. Well show you what is happening with treasuries, tenyear yield at 2. 75 . It popped up a little bit late last week as we saw some of the risk on trade. The dollar right now is weaker against the major currencies, 107. 8 yen. The euro will cost you about 1. 26. And the price of gold this morning is lower but not by much. 1231. And a new controversy this morning in how some states are dealing with ebola. And new York Governor Andrew Cuomo clarifying details about the mandatory 21day quarantine. Now the workers can stay in their homes and Health Care Staff will check on them twice a day and cuomos comments came after the Obama Administration pushed back and expressed concern about the quarantines introduced in new york and new jersey on friday. Meantime, lawyers for the nurse that is quarantined in new jersey has been on the front page of most of our papers the last three days. Shes in the hospital after returning from treating ebola patients. She says that shes going to sue to get herself out of quarantine at this point. Interesting story. Last night cuomo said that she was likely going to be tested today. Again. Again. And that he imagined in his words that she was going to go on with her life after this. So i think shes been treated, by the way, horribly in this particular instance of the tense situation. Nonetheless, i have to say im more with you than i have ever been on some of this stuff. We live in new jersey and new york. You hear the governor say were going to make people to us it sounds, 21 days, let them selfishly, that is the kneejerk reaction for people. I live ten minutes from newark airport. Thats the kneejerk reaction. I dont know about whether you need to there are experts that say, if you dont handle it in west africa, thats how it gets out of hand. And if it discourages anyone i see what theyre saying, but the kneejerk reaction makes sense, if you come back from west africa, dont go out. This comes from poor explanations from the cdc for one very basic question, which is if ebola is so hard to get, why are so many people getting it . Why do you mean so many . In west africa, thousands upon thousands of people. And here in the United States hold on, theres an answer to that question that they have not given. Maybe because its horrific to discuss. But we dont handle dead bodies the way they do there, right . Its completely different. People wonder, well, how does a Health Care Worker get it when they know they are working on somebody who is sick and they must be suited up, yet they still get it . It must be more transmissable than people think and its not. The cdc doesnt explain that a body dying of this disease is in such a horrific state. They dont you sitting next to somebody on a plane isnt going to give it to you. In reading the guidelines, i was like, what is that . They said, it is about burying the bodies. Thats what you have to do to con tape it. The aid workers going there, are they administering Preventive Care . I think it is hospice work and funeral services, right . I would argue what cuomo and christie is much about science as an economics story, to say i think they look at the situation like what happened last week and that on its own in isolation is nothing on a relative basis, one person. They think to themselves, if i have ten or 20 of these situations, and they are literally going to eat at the meatball Sandwich Shop to prove it is possible. If you get into a situation where people are not going to use the subway as much, all of a sudden you have a totally different type of problem. You have a terrible Economic Situation as well. But people said, wait a second, okay, so 12 hours later he gets a fever and was at the Bowling Alley and on the subway. They say, how can this happen if were trying to stop this . It comes back, he was working on people over there, he knew full well that he was exposed to the virus, maybe not exposed, he probably took all the precautions, but he comes back and thats the kneejerk, lets just talk about this here, why cant you stay in the house for a couple weeks . It was a great question in the press conference from cuomo that said, what happens if they dont stay in their homes . How are you going to open force that . Do we become like a police state . Are you going to arrest the people . The people hes calling heroes, are you going to arrest them . He said repeatedly, these people of great moral charactererer going there to do these things. I cant imagine we would have these up stances. But then you have what happened in new jersey where this woman is now planning to sue the government. And i dont think she was treated particularly well. They could have put her in a hotel or something, this tent thing looks awful, but nonetheless, youre going to have some people that come back to say, im not doing it this way. And then what are you going to do . Yep. Well, someone mark oconnor, i quoted him last week, he said lets keep things in perspective. I quote him every day. Its like the lottery. Low probability, but boy to you its high impact. He said 18 people die every year from toothpickrelated accidents or something. Right. I like that one. The mortality rate on ebola is much higher. How do you die from a toothpick . Thats a good question. I dont want to know. You dont . No. I cant figure out one way to die from infected from the toothpick. Anyway. In global news, the ecb releases the latest stress test results from yesterday. No systemically important banks failed in greece or italy. 13 banks need to raise another 12 billion worth of capital. The stress test scenario was based on the decline of 7 in europes economy. However, it did not include deflation and did not include the russian sanctions. Lets join the discussion on whether or not these tests are credible and joining us with his reaction is the chief editorial financial editor at the financial times. The last time this happened, a bank failed having been cleared by the stress test. Is this test more credible . I think the general view, and i certainly havent gone through every one, is they are substantially more credible . The ecb, the European Central bank was involved in this for the first time and did a pretty exhaustive asset quality review going through all the major banks in the eurozone. The stress test is regarded as more or less comparable with the u. S. Stress test. Now, are they strenuous enough . I think you can raise real questions in addition to the points you made. They dont seem to include the possibility of actual sovereign defaults in the eurozone. But that is quite possible. At least its certainly not up conceivable. Inflation is a real danger that you mentioned could be worse. And it is important to stress that will in my view, acceptable levels of bank capital are very low. If you look at them carefully, its better than the past. It might be enough. Its certainly likely to improve confidence in the shortrun, but the statement that the banks are now definitely out of the woods is probably a bit overoptimistic. When you look at what they said with the assets that needed to be written down or the amount of nonperforming lope that is the banks had not recognized, were they pressured in any way . Do you think the numbers could have been higher except there was a political game here as well that they didnt want the banks to look that bad . I have no reason to suppose that they succumbed to political pressure. Of course, behind the scenes one can never know, but it seems up likely. The European Central bank is really a remarkably independent institution. Theres no question about that. Probably the most independent central bank on the planet. It knows its reputation is on the line taking over these responsibilities for banking supervision now with a new role. It is designed to make it for the first time credible that these supervisory reactions are not take bin political pressure. They have to do this properly. I cant believe they messed this up. Dont forget they found nine banks in italy bad and the president of the ecb is mario draghi, who used to be the regulator for italy. That suggests not too much pressure. Will it lead to more lending, which is the ultimate goal . Well, thats the biggest question. My big concern here is ive never been completely convinced that the constraint was the willingness of banks to lend. In some countries that will be important, but the fundamental question is are there lots of good projects from Good Companies coming forward in these deflation in their weak demand environments of the eurozone. You have to wonder whether this will prove effective. They just cleared one of the hurdles, a necessary condition for new lending, but im not sure its a sufficient one. Mr. Wolf, thank you for joining us, or martin. Pleasure. Good to see you. Were coming off one of the best weeks on wall street in two years with investors shrugging off the ebola fears and shrugging off europes weak economy and the crumbling price of crude. Earnings trumping all the outside factors. This week the fed is in focus once again plus lots of tech results. Here to help us get ready for another busy week is lou green, strategist for drw trading and also onset. This is where it gets confusing, andrea, its michelle meyer. I would even put bank of america and Merrill Lynchs i can put forth you remember her name and get Marissa Meyers name right from now on. Instead of pronouncing it the way it looks, even if you talk to her for and hour, i still didnt have her last name right. Marissa meyer and michelle meyer, she is not related at this point. Because it is spelled differently. Okay. Have you ever spoken to have you used yahoo . I have used yahoo . Thats enough. Heres something that people are saying. These are these arent really the tinfoil hat people or lots of water or span the basement people, but there are some people who say every time we get an indication of the end of qe, we see how the markets are going to react to it and the fed wimps out. Thats an indication of how messy this is going to be. That all of this move we have seen in the markets for the last yearandahalf, all the upward momentum is how power fful this is. I dont think it is just about qe but generally about Monetary Policy being accommodative in the u. S. But also globally. So qe has been very well foreshadowed to end qe, they have preannounced it. The market should know the fed is said to stop buying new purchases at the meeting this week. To me the bigger question will be, how do they communicate a potential exit and tell the markets what do you mean, higher rates . Higher interest rates. I think thats where it will be complicated and we learned about that in the minutes when we talked about how much they were concerned with tweaking the language and what we need for the markets and how the markets interpret it. I think where a lot of people are focussed is what they do with the lower guidance, if they keep considerable time or not. If they change any words, slight words, the markets do tend to pay quite a lot of attention. They will. And they foreshadow with their inflation comment saying they foreshadow that 2015 is probably questionable, maybe they go past mid2015. Mid2015 is arguably the baseline view of the factors. But thats provided everything goes as planned. And thats one of the difficulties with the dot plot. These are at a baseline model forecasts of growth and inflation. And the implied federal funds projectory provided things go as planned. But what about the Downside Risks and the Global Growth that continues to weaken. How is that then playing into the federal reserves based on forecasts . Thats where i think the communication has been quite difficult. In the past month the markets have moved a lot in terms of the reserve. Well, yes. I dont have a specific question for you other than were you listening . I was listening and paying close attention. The interesting thing is, even though during the first qe and second qe when we knew exactly when they were going to end, the market, the stock market had a lot of difficulty afterwards. And in essence was only rescued by another qe. After qe 2 end, they came through and that ended in june of 11. Then the market was down 20 . By october, it did very little then from june 11 to december 12. At 16 months or so, the s p was up at 3. 5 annualized rate. Then we stepped in with qe 3. So the interesting thing is that the bonds have also react ed to this when the qe is over. This time because of the taper and not a definitive low point, the walk went lower to the beginning of this. I think thats one of the things where during qe theres the idea it could work and generate growth, employment, wages and inflation. Then at the end the tenyear says thats all row got and we start to head lower. The interesting thing is in the september 18th meeting they made it clear that the qe was going to add, was clearly going to add at the end of october the stock market peaking september 19th the day after. That might just be a coincidence. But the volatility, i think, has to deal with the outlook. But the stock market is definitely having trouble with the end of this one. A lot of times when people throw in the towel, the banglen and the fumbles, somebody told me yesterday they were able to beat the ravens. But once i stop following them, they will start winning. Many investors now think that a downturn in treasuries is now a while ago. Now people have finally decided that maybe rates are going to stay low for a while. Its in the journal. They talk to a bunch of clowns is that not indicative that maybe finally now rates will go up. I think just how lack of confidence there is in terms of the plashmarket right now, its to understand the Economic Policy and the overall growth. The overall tendency is this environment is one of very low rates that shouldnt prove persistent, but it is hard to have a lot of confidence right now. All right. I also think, just briefly here, the idea of the long end kind of operating on former guidance, where we think the economy is going and what kind of inflation that will generation. The fed for the longest growth of economy is 2 . This is falling significantly over the last decade for forward guidance. Michelle meyer, thank you. As in marissa meyer. Coming up next, another challenge for apple pay. This time its at a pharmacy. Well tell you which one and when this google executive is not busy with searching for androids or drones. Well show you incredible video when we return. E financial noise financial noise financial noise financial noise a google executive has set the world altitude record for a jump. He jumped in a specifically designed space suit and reached speeds of more than 800 miles per hour. The exec exceeded the speed of sound setting off a small sonic boom. Wow. That was very, very cool. Another retailer dropping apple pay. Rite aid drops apple pay saying a number of merchants are supporting a rival system called current c, an app to scan the bar product that connects to a consumer debit card. This includes walmart and best buy to develop their up mobile payment systems. Just when you thought apple pay was it, maybe its not it, at least not yet. I have now tried it and think its great. I havent tried it yet. Whatever its worth. The atmosphere and the terminal velocity you hit is because of the wind distance. If youre that high and you can get up to 800 miles an hour from your weight. And you are not pulling the parachute for a long time. I wonder if there was a small sopp sonic boom, i wonder if he was a larger guy, would it be a larger sonic boom . You couldnt move faster. Im not saying he would go faster. A feather and the weight drop the same, but i wonder if a really big one of those guys that they have to take out the front window of his house to move him to the that would be a bigger ill bet you the size of a sonic boom. Because hes wasting more air. Uhhuh. Is robin there . Sorry, bob. Coming up, your vote in the med terms i like the quick sound that he did. On the sonic boom . Yeah. The midterms fullfigured guy is what i meant. Big and tall guy. But the election could get overshadowed by jeb bush after a few comments from the son. Could we see a bush clinton . I dont think they will run together, but thats what we are hoping for in 2016. Thats next. That would really be bipartisan, wouldnt it . But im thinking jeb and bill for vice president. Anyway, heres last weeks winners and losers. I love this theme song. Introducing Synchrony Financial bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. 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. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov you know the song you know what it is. Who sings the song . No idea. Taylor swift. Making a business connection to music. Who . Roger is great. He is. Did you see his editorial . Hes this close to joining the good guys. Did you see his editorial . Hes a businessman. Shes referencing you love hillary. Its getting tougher and tougher. Hillary clinton said dont ever let anyone tell you businesses create jobs. The trickledown failed shes moving into this sort of orange she is attacking elizabeth warren. And she said the other guy from vermont who i cant believe can run for milkman. Ernie, the socialist. The guy who says, yes, i am a socialist. I think hillary really shouldnt do the attacking. I think it seems disingenuous. You might as well go with it. A lot of people on wall street say they are pals with Hillary Clinton. Good morning. Welcome back to squawk box. Far be it from the clintons to do anything for political reasons. Thats what i was going to say. Far be it from them to put a finger in the air and then decide. Welcome to cnbc. Im joe kernan along with David Ross Sorkin and michelle carusocabrera. They have very solid principles. Among our headline this is hour, tesla unveiling a leasing policy for their new model. Buyers have the option to return the car within three months if they are not satisfied. I saw a lot of people mad about what the government was mad about, the big Governor Snyder signing the law with dealerships. But then, i dont know, i thought of something else. People get mad when crony capitalists dont do their side. Because tesl harks has gotten all kinds of help from the government, right . And i just think now they got to use the Dealer Network and are mad, but i dont understand. They have gotten all this help already, why do they think they are crony capitalists. You are saying they are got in bed with the government this time around. Hmm. They are not like a purely economic free Market Company in the first place. None are . None are . And none of them create jobs. I was trying to make the Hillary Clinton you were. You are not dating hillary. I like her. I like Hillary Clinton and jeb bush. You like jeb bush . I do. You would vote for him . I could. I like to think of myself as an objective journalist. I know you dont believe this. Because youre not. Thats okay. We are what we are. Speaking of elected, Dimla Rousseff barely won this weekend. If she had lost, i think the market would have rallied 25 today. But it was very narrow win for her. Shell probably have to modify her policies supposedly, but you can expect a lot of the brazilian adrs will be hit hard today because neves, more for markets and business did not win. Huge disappointment. Well get to john harwood who maybe can help us with the political stuff. Well talk about jeb bush and hillary a little bit, but well talk about what is going to happen next week. We are a little over a week now from election day. Joining us is more on the countdown to the midterms, chief washington correspondent john harwood. Whats the run down . Andrew, i can help joe with that line he was looking for in the song. I believe its haters going to hate, hate, hate, hate. Players going to play, play, play, play. What is that from . The song. Oh. Its been played in my car with the teenager girls all weekend. I like both themes. Ill be hurt either way. All i can say is the redskins did not lose yesterday. So that was the good news. Dallas, they are ready. They seem like they are really good, so this could be the big surprise. A guy from texas named colt mccoy, thats awesome, isnt it . Its not an nbc lets stop talking about it. No one is going to watch it. Anyway, its optional to watch. We are not going to insist that you watch. So youre leading this, arent you . I was, but im punting it back to you. John, just sort of walk us through what is going to happen in the next week. What have we learned over the weekend . We have learned Democratic Candidates are hanging tough in the races. The republicans are favored to win the senate. There are enough seats for them to do that and with some room to spare, but democrats are also close enough if they can get their ground operations firing in ways that they have in some races in the past, they can hold on. Youve got close races in places like kansas where Pat Robertson is in trouble. Colorado where mark udall is trying to hang on, hes the democrat. In iowa where bruce braley and joni ernst are in a dead heat. What would be the big surprise to you . If mcconnell loses. Which i dont expect. The internal poll has him up eight points, which i bet is pretty close. Public polling has him up, too. But not eight points. No. And well see the compare this to the votes in a few days and everybody releases internal polls when they are trying to make a point or trying to spin. Like i say, mitch mcconnell, most democrats i talk to expect him to win, but shes running close. There are a whole lot of close races. We got to touch on two other topics. I know the midterms are important, but i need to get views on the relationship between the white house and cuomo christie, because we are reading all sorts of different versions of this. Not too happy right now. Hold on, so cuomo says last night that he hasnt been contacted by the white house and yet theres report after report after report saying that obamas trying to pressure them to reverse their quarantine program. Who is telling the truth . There are a lot of people in the government aside from the white house, so i suspect theres contact but its not been at the political level in the white house but through the cdc and other Public Health authorities. Governor cuomo clearly was freelansing along with Chris Christie in way that is the Public Health experts thought was not necessary. So thats why they kind of relented and sort of pulled back a little bit last night, although the nurse remains in the tent. Talk to us a little bit about the comments over the weekend on jeb bush. I dont know if you want to go into the hillary stuff if you want. No. I think jeb bush, joe and i have had this discussion numerous times, i think hes clearly the strongest potential republican president ial candidate. I think he could be very competitive against Hillary Clinton. I dont expect him to run in the end. And i think that theres enough reluctance within him and but this comment was made over the weekend that hes moving forward. Yeah, i have spent time with him, john. I had no doubt he was running after spending time. Well, if youre right, joe, thats good news for the republican party. The wild card is his family issues, and talking specifically about his own i think his mother said, she said we dont need another bush, but i have no doubt i have no doubt he would be the best person in the country. So she said, i know w probably wants him to run and george p. Probably wants him to run, too. I think he would be great. What i was going to talk to you about was im not trying to sell anyone on anything anymore, john. Its a big country and people are going to make their minds up. I watched the ecochamber, the left leaning, they think they are right on anything. And i watch fox. So i cant convince people, but last week when i asked you about the guard for obama protected by the media, you know who my idol is at this point, right . Who . Cheryl at kipson. The new book . Stonewalled my fight for truth against the forces of obstruction and harassment in obamas washington. When you looked at me last week, you looked at me like i was a tinfoil hat guy that the media protects even woodwork, even bob woodward said, why isnt the Washington Post looking at the i. R. S. Scandal. Why arent they trying to meet with people . There are a few stories on the i. R. S. Cscandal. Everything gets a pass, why . Its just not true. Have you missed all the coverage of the i. R. S. Situation . Yeah, i have. I have missed it. Where are we on that . What happened to all of that . What happened there . I think not as high as a lot of people on the right wanted. So we know that . Yeah. All right. I dont know. I just you know, last week when we talked about it that was a bit of a dud as a scandal. Well, we got another six that we could oh, my god. No, it was a dud. It was not directed at the white house. Im making her point, thats what im talking about. My favorite is when she says things like shes trying to cover so solyndrum and then its funny when people write books after they left a job and they look really good in a book. Of course. Because they have said things that they have been wanting to say for a long time. Unless youre leon panetta who is a traitor. Who says hes a traitor . The Bush Administration says then youre on, they cant book you enough on the morning shows. I dont know what youre upset about. Im not upset. Leon panetta is getting publicity for his books. So is bob gates. Im not upset. Im not an evangelist anymore. I will buy you that book. Cheryls or leon panetta . Both books. Im scared of the next story. Im scared of ouiji boards, andrew. He watches tv shows. A lowbudget horror film inspired by a board game takes out an assassin and brad pitts fury. Thats next. 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. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. In hollywood news, the movie ouija won at the box office with a 20 million debut. It is an adaptation of the board game made for just 5 million. Thats a great margin. You dont remember in the exorcist thats how linda blare initially came into contact with the i forget which demon got her, but it was a ouija board. Right. Thats why nobody wanted it in the house, because they were nervous. I think seeing the movie could open a window to the other side. Coming up, halloween is coming and my wife was boorn on halloween. Oh, cool. The San Francisco giants go up a game on the small mark against the kansas city royals. They will be vying for a seventh game. Well hope for one. And a major fail before the game even started. It was minor. Thats next right here on squawk box. And new blind spot monitor and a 2014 top safety pick plus rating. Cost of entry . A fortune. Until now. Hey sarah, new jetta . Yup. Can i check it out . Maybe at halftime . Introducing lots of new. The new volkswagen jetta. Isnt it time for german engineering . E financial noise financial noise financial noise financial noise tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . What so proudly we hail were so gallantly streaming wait for it. Right there. Tim lincecum pointed out what happened. He knew. That was the lead singer of stained, which how often does this get screwed up. Once in awhile. But not in the world series many times, andrew. Rosanne at once tried to imitate a major leaguer. I think thats what she was trying to do it was awful. But it looked like she was doing that to the anthem. But this was aaron lewis. I know stained. They had had one big him and i think one after that. Two hit wonder. Botching the star spangled banner between the San Francisco giants and the kansas city royals. San francisco won the game behind ace Madison Bumgarner. And the series goes back to kc tuesday night. Joining us no talk all things sports is dave briggs of nbc sports. Any uptick that youve seen . Kansas city is a small market. San francisco won a few years back. Twice since 2010. Not a lot of interest, maybe. Ratings are not looking good. Game one was the lowest rated ever on record. And a little uptick for game two. Now hovering around the 12 million mark. The business of baseball as far as a National Product is clearly long gone. But locally and regionally youre breaking, smashing records and tv money is enormous. Almost nfllike on a regional level. And there will be times if the yankees or the reds or some big team went you need somebody whether its a yankees a red sox, a dodgers. No national buzz. No big stars in this world series either. Although Madison Bumgarner is turning into one of the greats in history. A seventh game will help. And theyll probably get there. This goes back to kansas city. If you can get through our bull pen, forces a game seven. Then Television Ratings are okay. This is dvrproof stuff. Good number in the 18 to 49 demo. National numbers arent there, but last night was against sunday night football. Forget it. Packers and saints . Im sure the number last night was abysmal. Bumgarner, now a business question. This whole debate theyre not getting paid enough, that hes not getting paid enough. That if youre young you dont get paid as much as the older right. Look at their roster. Tim lincecum who did catch that stinger makes 25 million a year. Hes a scrubbed reliever at this point. Matt cain whos not even playing makes 25 million a year. Hes not even part of the rotation right now. But thats the business of baseball. Youre under control when youre young. Thats what it is. Youre not going to get paid when youre young. Youve got to produce to get that first big contract. You talk quickly about but bumgarner, 31 innings in the world series, one earned run. One of the greatest performances. I didnt see the entire game, but Aaron Rodgers threw an interception. He did throw an interception. And the 400yard there was three 400yard passers yesterday who lost. And ben roethlisberger, six touchdowns and a win over the colts. One of the great performances in nfl history. Heres the saints big win last night at home. This is the game of the day. Roethlisberger, again, no one thought they had a chance in this game against the colts who are a super bowl favorite. 522 yards passing and six touchdowns. Its a different game today, folks. It is a different game. You saw did you watch the kentucky Mississippi State game . I did watch half of that. That was a good Football Game. I watched the second half. It was the onside kick at the end. Had they gotten that, they would have dak prescott, he is a lot like tim tebow. They have a shot at the national championship. Its a very good football team. Ole miss, your guys, your shark attack, they came up short to lsu though. So forget them. Theyre out of it. My question is back to baseball. Football is very offensive and theres a lot going on. Baseball runs per game down the length of the game is longer. You say they dont need to worry about that. Theyre putting a lot of measures in place next year. People want to lower the mound. Guys have to stay in the box. Theyve always had a rule that makes guys pitch quicker, but theyre going to enforce it. But is it still going to dramatically change the pace of the game . You never heard of that. I saw that article lowering the mound. But would that shorten the game . Probably not. But the nfl was on yesterday at 9 30 a. M. Did you get up and wa ch . No. But theyre on fox. They dont promote like nbc. Thank you. Throwing you a bone. More squawk box coming up next. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. 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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. 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 here with joe kernen and michelle carusocabrera. We have merck out. And a quarantine controversy. New york and new jersey governors are clarifying policies after pressure from washington. Lawyers from a nurse quarantined in a new jersey hospital after returning from treating ebola patients says shes going to be suing to have her released. Well have more from meg tirrell on all of that in just a moment. Other headlines this morning, gasoline prices dropping to the lowest level in nearly three years. Price is down 18 cents the past two weeks to 3. 08 a gallon on average. This morning Goldman Sachs sees it going even lower. Stumt for west texas crude to 75 a barrel. Toyota figures show they sold about 7. 6 million vehicles through the end of september beating out volkswagen and general motors. The stock is up just fractionally on word that the company is reporting 90 cents on an adjusted basis. The gap number was 31 cents. Theyre two cents ahead of expectations for the year. The company sees 3. 46 to 3. 50 adjusted. So thats rugt in line with what wall street was looking for. 10. 56 billion in sales is above estimates which was 10. 26 billion. So above estimates on terms of what the company was able to just sell. Now ive got 56 to 90. Two cents above and a beat on the bottom line. The yearly guidance is in line with what people were expecting. Not quite the yield play it was when it was down at 30 a share, but its still yielding 3 . And a lot of people thought of it a as bond. At 30 it was a bond. Great bond. And obviously like a convertible bonds. Went 30 to 60. You got the yield and the asset appreciation. Meg tirrell has some breaking news for us right this minute. Were going to get over to meg right now. Meg . I had, guys. Good morning. This is some breaking news on a smaller company. Sarepta therapeutics. We learned theyre going to have a delay for filing of their muscular dystrophy drug. Now they say based on new guidelines, new communications from the fda, theyre looking at filing in mid2015. A severalmonth delay on filing for approval on that drug. This has been a roller coaster for sarepta. Also looking for threemonth data out. Seeing a bit of a delay here. A lot of competition in this world. Another Company Called prosenza announces recently its beginning its roll for approval. Thank you. Were going to come back to you in just a few minutes to talk about ebola and the quarantine controversy. Of course shes been covering that for us. I think shes in front of bellevue right now. Yeah. Joe . Looking to see whether sarepta is trading. I got it indicated as down. But i dont see it on the ticker yet. So take a look at that. Its under a billion Dollar Company anyway as far as market cap. But an important drug for that form of muscular dystrophy which theres a need for something there. Stocks snapped a fourweek losing streak and had their best week in 2014. And it was strong earnings that got the ball rolling. And some positive outcomes in dallas. Then of course a reaprpraisal. Head of funds at Global Advisers and u. S. Global strategy at deutsche bank. We need three key drivers of what happened. I dont know. We have earnings, europe slowed down, ebola, and the fed exiting qe this month. What are the most important things in your view that helps us determine the direction . Well, you know, i think its important for markets to really feel that economic fundamentals havent been damaged by the selloff of markets. So i think earnings is actually very important. I think were going to get a lot of Economic Data over the next few months. I think were seeing more people talk about the drop in oil. You know, the average american spends 2500 a year on gasoline. 330 billion in aggregate. Tom, can i round up the s p peak to trough construction . It was like 9. 8, can i round it up a 10 . Do you think the Market Participants will allow me to do that so we stop talking about it . Or do we still not have a 10 correction . Well, you know, 10 is right. We did move 10 on an intraday basis. David says no, no, no. The russell was down how much it did correct, but 9. 9 declined does not count. Im asking you if i can round it up. You cannot. Why . Who are you . You never rounded up. Theres lots of dips that bounce right before hitting that correction territory. So its not a correction. So still its been three years. Its still been. You mean, joe, im not sure what that what level david is referring to. But 90 of bottoms are v shaped. So the speed you fall is also going to be the speed you recover. So i think really by mid to late november were going to be revisiting prior highs anyways. So i think whats going to be important for everyone is how they want to position. People are going to have to buy some winners going into the end of the year. I think the market will bounce into the end of the year. But i dont think this is about the fed or midterms or ebola. The key issue is what does the dollar do, whats happening in china and europe. What investors are fearful of are not a global recession. Theyre fearful of a profit recession. There are a lot of challenges with the earnings outlook right now. While it may be good for gdp giving influence on capital, a certain type of job creation. The point is we buy a shares in the s p, and gdp. How are the fed and the dollar not attached at the hip . They are. So what does the u. S. Do and their labor market. If you get the u. S. Becoming stronger and the labor market continuing to tighten, then you can have a strong dollar. If the fed has to raise rates next year and europe and the rest of the world look the way they do now, therell be a weaker cap and exports. You want the fed to stay just like all the addicts no, i want the fed to do whatever is most appropriate for the u. S. Economy. And my humble opinion, i think the fed is falling behind the curve. Theyll deal with that later on. My point is i want the World Economy to get on better feet rather than have the u. S. Economy pull too far ahead. We only had a single shot. I think when we have people like you on we should be two shots and you should be rolling your eyes and making signals. Did you agree with anything he said or youre wondering why we even have him on . I mean, you know, i think, again, fundamentals are quite good. I think hes trying to disagree with you david. Im actually puzzled. The u. S. S p 500 is a net consumer of oil prices. So its actually quite a tail wind for the s p 500 to see oil prices fall. Theres no precedent. In the mid80s, Oil Prices Went down. Almost got it started here. That is clear. I think whats important to keep in mind is oil prices can [ overlapping speakers ] challenge to profits. Go ahead, tom. Oil prices can fall from the economy weakening. So its important to distinguish regimes where oil prices are falling because were in a recession. You still have a global expansion. Those dont hurt us to be profits. Well, we going to have a decent return . I was counting on 30 plus. Im going to have trouble getting there, tom, no . I mean, i think you know, historically after a really strong year so 2013 was a great year. Its possible to generate double digit gains. Where are we now . The s p were up more mid to high single digits. So were close. Yeah. So you think double digits in s p . Thats another 5 from here. Should be about 10 this year. Its within reach for next year too. The key is getting earnings to post some decent growth despite these so Profit Margins are at historic highs. Thats not my concern. I thought thats what you were worried about the dollar for. Im worried about oil prices and industrial sector profits. Where margins have peaked its the technical sector. Ill sign on for lower oil prices. Im with you, tom. Youre worried about low oil prices . Yes, i am. The impact. Because we produce so much more here in the United States. Yeah its a supply issue with currency. But the reality is i would need to have Consumer Sectors do 15 type earning growth that offset. And also industrials. Tom, last word to counteract this ridiculous assertion we have. Its weird because they both have green on the ultimate end point. But i dont see where the agreement comes. Its a strategy issue. I would say overweight health care attack, be careful with industrials. Tom, last word. Well, again, you know, i think the main thing, the markets acting like the bottom is in. Weve seen a huge rally in the yield. Term structure has reshersed and bottoms of v shaped. One of the big groups that might surprise people is the energy sector. Energy got so beaten up, it made a two center deviation decline. All right, gentlemen, thank you. Thank you. Theyre good. Coming up when we return, were going to talk about the ebola quarantine controversy. A nurse threatening to sue claiming her Civil Liberties have been violated. Plus the governors of new york and new jersey clarifying the rules after pressure from the white house. Shows of merck beating profit expectations but missing on revenue. Squawk returns in just a moment. Hey matt, whats up . Im just looking over the company bills. Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Welcome back to squawk box this morning. Dow looks like it would open up higher, marginally higher. Now it looks like it would open off down a point and a half. Nasdaq would open up higher. Making headlines, another round in the fight between valeant and allergan. Valeant now saying it is prepared to improve its offer for allergan to at least 200 a share. You might remember we had pareson on from valeant last week. We suggested would use raise your bid. At the time he did not want to answer that question. I believe some of the analysts think the offer has to ultimately be clearly over 2 hurkds. So we will see. Its not over yet. It aint over yet. Fat lady hasnt sung. Now to the latest on ebola and the controversy on quarantines. Meg tirrell joins us outside bellevue hospital. We learned last week of dr. Craig spencer who is being treated here at bellevue hospital. He is entering the more difficult stages of the illness but he getting through it. We know he received a donation from nancy writebol. This is something others have received from dr. Kent brantly. We know he has had an antiviral hours after his admission. Shifted to the quarantine orders from travelers returning from west africa. It seems the governors of new york and new jersey are loosening restrictions they put into place on friday after pressure from people on the federal level saying folks can be quarantined in their home if theyre not showing symptoms. The office is now saying that was their policy all along, however casey hickox was taken to a hospital from the airport and is still there. Has hired lawyers and is intending to sue for infringements of her Civil Liberties. That continues to develop and well keep you uptodate on any details here. So the original plan was they can quarantine at home yet this woman end up in a tent. Thats right. We know that she is not a new jersey resident. So that could be playing into this. They say if folks have homes they can go to, theyll have surprise visits from Health Care Workers twice a day. This is what were hearing from new york. She is still at this new jersey hospital right now in a tent. When they impose the quarantine or the suggestion was you were going to have to be quarantined in tents like this that they realized they maybe didnt have the ability to get all of this done. Correct . That is a concern because so many people come back from those countries. Not necessarily so many people who are treating folks over there. Those are the people theyre talking about putting into this mandatory quarantine. This could deter workers from going to africa which is a concern because this needs to be stopped at its source. Meg, maybe you can do a fact check here. Last night during the press conference with andrew cuomo, one of the reporters asked how many people are we talking about here coming in from these affected areas, and i didnt know if it was him or one of his colleagues on the stage said two a day. I also heard numbers say its no more than 150 people a week coming in from these affected areas. Do you have a sense . Do you have any idea of the types of numbers were talking about of how many people might be quarantined in a given week or two. My impression was it was 150 people a day returning from west africa and 94 of them go to the five airports as we talk about having these measures to which now all people coming to the country are supposed to fly through. Half of those go through jfk also through newark. Im not sure we have numbers on how many Health Care Workers are coming. Its interesting that friday is when these measures went into place with the enhanced protocols and one nurse was coming through. We havent heard of other folks being quarantined since then. Thank you so many up. Meg will be out throughout the day with updates. Coming up, we have something that could calm all those with daily road rage. Plus more reaction to the results from merck. And then going beyond the walking dead. Afc network says a runaway hit, a tv blockbuster with record ratings, alltime record ratings. But as amc become a were calling it a zombie stock . Though you dont really refer to walkers as zombies. But we can call it that. Find out in the next half hour of squawk box. E financial noise financial noise financial noise financial noise just want to say, i bundled home and auto with state farm, saved 760 bucks. Love this guy. So sorry. Okay, does it bother anybody else that the mime is talking . Frrreeeeaky [ male announcer ] savings worth talking about. State farm. Welcome back to squawk box. A little news, homeland star damian lewis and paul giomotti has swept up the lead roles in billions that i cowrote and produced with my good friends brian compman and david levine. Even guys you know you can mess up on the prompter. Nonetheless, we will be filming the pilot in early 2015. We announced it friday afternoon. He is very cool and paul is cool. He was in so many emmy nominated for downton abbey. You did some of the deciding here too. Youre a decider. Im a decider. Youre a show runner, youre a decider. No specific yet any leading ladies . We will be announcing ladies soon. One thing i know about damien. What do you know . If he needs to sing for any reason, hes very good. I was at the dunn hill. That was him in the center. And he got up and sang with bill murray. Does he sing with an american accent . You know, even the heaviest accents you dont really hear when they sing. Yes. I saw my first opera. You did . Did you recognize every song . Its a great first opera. My son is in the new jersey chorus. They did it. It was three and a half hours. Thats a short opera, honey. Is it really . Oh, yeah. You know what i learned about the fat lady sings. Its not over until the full figured gal sings. Its necessary, but not sufficient. Because they were singing through the entire thing. Trading block oil and currencies right after this. 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A series of safety issues including last years report of affected air bags. Dropping apple pay over the weekend. Rite aid disabling over the weekend. Venezuela has officially ruled out the sale of citgo. State owned company was hoping a sale could fetch between 8 billion to 10 billion. Analysts had put the valuation well below that. Perfect. What do you mean perfect . You need to read stories like that. You know, those bonds are yielding like 15, 16 . People are calculating, okay, the price of oil moves how much . They get cash flow every month is how much. I mean, its really a fun story to cover. I dont get it on the air much. But theres a section of the market that is so deeply interested. Where else are you going to get 15 yield . You know . Right. They are so desperate about the price of oil in venezuela. They need 200 a barrel in order to balance the budget. Theyve done nothing for how long in terms of oh, their per capita gdp is now at 1970s levels. But in terms of building out the hydrocarbon. They skim off all the revenue for what they claim are social welfare but go off into corruption and terrible things and end up in with damien lewis living in the tower of david in caracas. He was down there. Right. In the drug den there. You can incorporate pop culture. It worked out for him on homeland, let him go home. I think they decided did you start watching this year . I havent. You should watch. Gasoline prices falling at their lowest levels in years. The average price is down 18 cents in the past two weeks which makes me happy, not angry. I was playing around. Continuing to flirt with the 80 per barrel level. 12 down over the past month and 20 over the past six months. Time for the trading block. Here to break down the Trading Energy complex is matt smith and boris schlausburg. Im reading this report out today where theyve lowered for 2015 making them the most bearish on the street. What do you think of that . Are they right . Well, they are sort of falling in line with the current thing at the moment. There is just this expectation that opec is sort of losing the influence of the market here and instead its going to be more reliant on the u. S. So i think in the near term were going to see some consolidation in prices at the moment. Once we get through the opec meeting into next year, then there is obviously the potential for downside. I think the market is very much focused on where this break even is for u. S. Shale plays. What do you think it is . Well, theres about 101 different estimations. Around 75 which goldman is eluding to. Its not the shale, increase in shale. Its Production Growth thats nonopec outside north america. Well, thats right. Up to 10. 6 Million Barrels a day as well. So its not just a Success Story in the u. S. In terms of production. But really its going to come down to opec having to do at least something, you would think, whether its a cursory drop of 500,000 barrels come november. Boris, whats the move in the dollar today . Are we seeing anything in response to the european stress test . That was a nonstory. But i think the bigger story today was the report which shows six consecutive month of lower than expect ed expected this is german confidence. Yes. I think the german Business Company is now starting to pressure the german policy makers. I think the german businesses want to see a qe out of ecb in order to stimulate demand, to create some kind of a growth program. So if ecb does do a qe program at the beginning of next year, that actually is probably going to keep the fed on the sidelines much longer. The fed at the same time does not want to raise rates at the time the ecb is flooding the market. Because of the export competitiveness of u. S. Exports. What does that mean . That puts a hole in this Dollar Strength consensus. Exactly. So i think basically the story here is going to be a tug of war and essentially lots of heat but little light in terms of trend plays. Many people in the market now come to the consensus that the strong dollar trade may not be playing out. I dont normally ask you about the brazilian riyal, but are you doing anything with it . I thought that stock market would rally today. Would have lit up like a firecracker. You have a negative trade here. Its hard to say. Maybe the fact he came so close would force her to become more promarket. So it may be a blessing in disguise. Well have to see. Probably going to continue for the next couple of days. Look at it weakening there. You know, a more market oriented policy on the other side. Going to have to move to the right. The stuff by the way with the oil, i find it fascinating. The lower the price gos, the more producers have to pump out just to keep all of russia and the other countries. Its a selffulfilling prophecy to bring the prices down. I find that amazing. And painful for them. Right. Matt, do you Pay Attention to the currencies at all . When we look at whats going on with oil, is it all about supply and demand . Or is it because of this consensus out there about strength in the dollar . Yeah, actually no, i was talking to matt. My turn. Sorry, go. Thank you, boris. Currencies play into things. You were just referencing venezuela and russia there. Russia as the ruble weakens, were at a low there. Some of the pain theyre feeling in terms of oil. So currencies play into things as well as supply and demand. But its all a hodgepodge. Its very much theres a million and one. I love that. Hodgepodge. Hodgepodge. Thank you, matt. And andrew, how great was giamatti as ben bernanke. You say bernanke. I say bernanke. Yeah. I just pronounce all the letters in his name instead of just six of them. Bernanke. He said bernake. I said it the way you do in the midwest. Yes. Pauls awesome. Thanks, boris. Thanks, matt. Son of you know who. Former commissioner the bane of pete rose. You knew that. Yeah. Up next, the walking dead crushing the competition. Posting monster ratings. But the amc stock has been a zombie this year. Whats it going to take to bring this name back from the grave . And then merck, pfizer, dupont, visa, exxonmobil are some were going to be watching. There are some others. vo rush hour around here starts at 6 30 a. M. On the nose. But for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. 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. Ok, if youre up there, i coulsmart sarah. Elp. Seeking guidance. Just like with your investments. That sets you apart. It does . It does. Youre type e. And seeking another perspective is what type e s do. Oh, and your next handhold. Is there. You dont have to go it alone. E trade gives you the support and guidance to make informed decisions. Are you type e . Attention taylor swift fans. The new album is officially out. Its titled 1989. Its due to be released today, but was leaked friday to several websites. This isnt the first time shes dealt with such things. Her album red was released in full. The haters are going to hate. The players are going to play. I havent heard this yet. I dont listen to pop. I dont. Sorry. Its so fun though. Pop is so fun. Its so easy. Its like candy. Im looking for an alternati alternative. What you do do is the walking dead. You just said do do. Why . I did. I was trying were going to talk about amcs hit show walking dead. Love it. Joe helping with those ratings. Amc stock trading down. Lets talk to rich greenfield. He is the media and technology analyst. Hes got an interesting report out this morning about netflix. But rich, just explain whats happening with amc and what should be happening with amc stock. I think youre highlighting the walking dead success which is unparalleled. Theres no drama on tv. On any network, broadcast, cable. No one has a drama this big as amc. The problem is it really highlights the problem thats going on in tv right now. Every network has, like, one big hit. And this hit actually is so big you want to watch this one show live because you want to know whos dead before the next morning when you walk into work. But the reality is there isnt much else on amc that has to be watched now. And consumers are increasingly not watching the reruns. All of the movies on amc, all o the rest of the schedule is what theyre dealing with. Can they get more its . Get back to the breaking bad, walking dead. They are going to have another the breaking bad prequel. That will start in the spring. Are there other things that give you hope . We were looking for several shows over the past year to actually be successful. And i think theyve really struggled when you look at first it was low intersun, then turn, then halt and catch fire. They renewed the latter two, but the ratings really were not there. Are they renewing them because they dont have anything else in the pipeline to fill it or are they big shows they feel confident . Better call saul better be successful or this is going to be more stressful into 2015. Can this company remain independent . People always talked about it as a takeover target. The question is what are you buying . Youre buying essentially one show. Even Better Call Saul isnt theirs. The real question is can they make a stable of shows where they are the studio, they own the content. Walking dead is one but they havent generated that second midsize hit. Forget about a walking dead sized hit. We downgraded the stock because we were worried capital was going into other things like going overseas. The america deal. They just bought a piece of bbc america. Question for you. You put out a report this morning about netflix. Verizon fios now offering netflix as part of their service. Are we going to see other Cable Operators which have shunned netflix all of a sudden embrace them . You think about cable not being about video anymore. Whats interesting about the ad that ran during the Football Game for verizon, it doesnt mention any cable network. The only thing it mentioned is netflix. And it uses it in the context of marketing its broad band service. So i think what youre seeing is even the isps, the cable companies, theyre all raeltzing the product is broadband. The way to push that is netflix. Youre seeing it overseas. Youve seen a few companies dabble in it here. But this is full year free is the most extensive to promotion ive seen in the country. Were you under the view that all this over the top stuff becoming a trend. Do you think hbo will go that theres going to be huge numbers that attach to that at a higher price point . Or does that just pressure people who already have basic cable to buy up and buy hbo as part of the premium tier . Same thing with cbs. Effectively disaggregating itself. People saying im going to buy cbs, nbc. Are they going to buy all that or package in the end . I dont think Consumers Want to buy hbo go and buy cbs. I think buying individual networks and aggregating together a service and then having an apple tv where theres 37 icons and you have to go into each one and figure out what show is on which, i think that this idea of a la carte or consumers are going to pick and choose an unbundled world, its chaotic. I think consumers dont want that. I think its an improper reaction into why netflix is successful. It isnt successful because its offering a one simple app to click on. The ideas not on bundle. Netflix is successful because its offering you a lot of content anywhere any time that you can binge view with the click. Consumers want a bundle of content thats inexpensive, easy to access, and there arent the rules to wait until next week or next season to see another season. I dont think simply creating an hbo go stand alone at 15 a month or cbs at 6, i dont think thats actually what Consumers Want. It may help drive more on bundling, but thats not the compelling thing people are looking for. Whats your price target on netfl netflix . We have a 600 target. Its nice to see verizon helping them today. You were not set back at all by their Earnings Report just about a week and a half ago now. Theyre still going to add 4 million subscribers globally in the fourth quarter. Okay. We will check back with you. Whatd you say . You said 600 in 12 months . We have a 600 oneyear price target. Yes. We would have to discuss that. That would be an awesome return. Thanks so many up. Thanks. Coming up, stocks to watch this morning including a name that needs to give the fda more info of a muscle dystrophy treatment. And will investors like what they hear from twitter this week . Putting tech in focus this week. Well preview earnings and talk apple pay problems at the top of the hour. Before the break, look at this. 10,000 lanterns illuminated the sky of western thailand. Traditional belief is it helps get rid of troubles. It was part of the festival taking place over the weekend. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov welcome back to squawk box this morning. For our loyal fans watching on the treadmill this morning, monday is the peak day for exercise. Jawbone collected info for more than 100,000 of its u. S. Users over the past 12 months. Workouts peak on mondays. They are steady on tuesday and wednesday. And then, yes, as you might imagine, the week progresses, everything falls apart. There you have it. I thought you might get more people working out on saturdays and sundays. Weekend warriors. January 2nd. Thats a big day. Resolution day. Yep. Ive been contributing to this study. Without knowing it. Something that i have figured out is that alcohol causes water retention. My weight, you know, if i have even wine or a beer, it takes until wednesday to to vacate . I was going to i dont think of it that way. Maybe im sweating it out. I dont know. So a saturday night or morning. Whatever. After the show. Weve been awake for hours now. There are people that say that. Because of some of the stuff i say, i think. The 3 30 a. M. , alcoholism and 3 30 a. M. Doesnt work. Lets take a look. The producer says he does it. Thats good. The way you write, it looks like it. Lets look at the stocks to watch this morning. I told you sarepta wasnt just down a point. It looked like it was going to do this. Down seven and a half points. Thats almost a third plumm plummeting. More information on the experimental muscular dystrophy treatment. This is sad not sad, but i wish theyd get this thing done because theres a need. The drug is going to be delayed until mid2015. The people that have m. D. , this one form, have a truncated version of the protein which doesnt really work or something. So this just allows the protein to be made a longer form of it to be made within these cells. And it would be a pretty elegant way of dealing with some m. D. They need more info on this. Meg knows all about this too. Shes been reporting. Goldman sachs upgrading garmin to buy from neutral. Highlighting its strengthening in the fitness and mobile segments. And mondelez being upgraded. Alibaba shares rising with the jeffreys initiating coverage of the company with a buy rating. And citigroup naming foot locker one of its holiday picks. They will benefit from key releases in its basketball segment and in its kids products. Coming up, social media stocks are in focus. Were getting ready for earnings from facebook and twitter. Plus cvs following rite aid and shutting off apple pay as the battle heats up. Details just ahead. Its a big week for pharma stocks. We just heard from merck with results. And pfizer is reporting later this week. Well look at the sector in the next hour. Twhat do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. What if we finally had that would be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up from finding to financing, howd you do that . Zillow. As the company thats all about printing. But did you know we also support hospitals using Electronic Health records for more than 30 million patients . Or that our Software Helps over 20 million smartphone users remotely configure email every month . Or how about processing nearly 5 billion in electronic toll payments a year . In fact, todays xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. With xerox, youre ready for real business. Welcome back to squawk box here on cnbc. First in business worldwide. Im joe kernen along with Andrew Ross Sorkin and michelle carusocabrera. Our revenues just barely miss here on merck. Well speak to an analyst shortly about america and pfizer later this week. Well talking about the overall sectors as well. Among other headlines this morning Goldman Sachs slashing its 2015 Oil Price Forecast arguing supply will outstrip demand. The changes make them the most bearer when it comes to oil. Crude prices are down over the last months so gasoline prices are falling to their lowest levels in four years. The average price of a gallon of unleaded regular is now down 18 cents in the past two weeks to 3. 08 a gallon. And market in brazil its going to open just now. Lets see what happens. I dont think this is an accurate reflection. Were not getting the full trade on yet. But were going to watch this market which is set to trade about now. Another huge week ahead for tech. Twitter reporting after the bell today. Then later this week facebook and linkedin post results. Last week rebounded sharply more than 5 . Here now is kevin landis. His firm was a preipo in twitter, facebook, solar city, and yelp. Good morning to you. Good morning. Help us here with twitter. We had peter thiel on the program i hope they dont space on reporting tonight. Peter did not seem so fond of this company. Theyd be doing much better if they were not all stoned. Thats what he said. I hope they remember tonight that todays the day. I hope they wrote it on their hand or something. You remember dick had a great line that he was just finishing the doritos or something on twitter. Kevin, what are you expecting . Those two events, smart people and other recreationals arent completely exclusive. Right. I wonder colorado grads. Exactly. The way twitter has been acting the last few months, people expect these efforts are going to get some traction. I think what we might see is more good talk about all the different ways theyre figuring out how to make money and sort of a calibration of how quickly are these things going to bear fruit. If theres a downside risk, its them getting on the horn saying its going to make money. So thats where the expectations mismatch if there is one, thats where it might be. In the context of tech, whats on ibm . We talked about hit last week. I dont know if you meant to write it as a rebuttal to the standard copy paste activist investor rant, but its kind of a case study on what happens to studies. Eventually they mature and plateau. Without growth its hard to make a compelling case. No growth is trouble no matter how you try to manage it. Is it fixable though . You have to find growth. If you cant find growth, then you have to just behave like a dow stock. As a dow stock, theres nothing wrong with ibm as a dow stock. But you cant sell it without the growth story. Explain or at least give us your views of what happened to amazon last week. You know, i think probably the worst thing thats happened to them is the alibaba ipo. Amazon quotes your marrin is my opportunity. He behaves like the successful Chinese Company based in seattle. He loves revenue and the not afraid of a price war. Thats the issue there. Of course they brought out a phone nobody liked. That might have something to do with it as well. Since were going arounded the horn with lots of names, one you had is netflix. Talking about how verizon fios is offering that with its service. He still thinks thats a 600 stock. You clearly own it for some reason. Do you think its a 600 stock . You know, i have talked myself out of that stock. By the way, over youre not in it anymore . Were in it a little bit, but i have to tell you most of the time im looking at that chart, i spend most of the time kicking myself. You know, the last time you had a chance to get back into this great story is when they sort of botched the handling of their legacy business of mailing dvds and tried to break it into a separate business and had unhappy customers. I think this last quarter is probably them reopening that door. The problem is its such a great story that when it does go on sale, it heartily looks like a sale. And people come out of the woodwork. It is. But look at the market cap and look at the space theyre playing in. And look at this great position theyve got. Its i dont know where else youd rather be than right where they are. And the other stock you like, you say you put it in your growth and value list. The fruit, apple. You know, its funny. But come tech season, usually tech stocks separate themselves into two buckets. I cant believe how expensive this stock. Then me other bucket is what a great valuation. If only were growing. The overlap is pretty slender. The only reason apple stock, i think, trades so modestly is that at such a modest valuation is because the market cap is so darn big. People think the air gets thin at a certain level and you cant get bigger than half a trill dollars. Thats what makes it the ultimate growth at a reasonable price kind of a stock. Real quick, what would allow that thin air to get a little thicker or allow people to decide it actually is undervalued. At this point, that story is has got so much momentum behind it. I cant think of a reason why you would get significant multiple expansion out of apple. But you dont need multiple expansion to make good money. I guess if theres a wild cart left in that story, its apple pay. If they reinvent the payment system, the way they sort of reinvented or saved the music industry, that could be stunning. That might give it another leg. They dont have to do that to be a successful company. Great. Kevin, thank you for joining us this morning. Coming up, were going to talk merck. Also have a preview of pfizer. Were going to talk big pharma after the break. And later, can apps help sell albums . More when squawk box comes back. receptionist Gunderman Group. 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. In a we believe outshining the competition tomorrow quires 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. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Welcome back to squawk box. The futures right now are suggesting a negative open. The dow would open lower by 20 points. The nasdaq by nearly two points. It is official. Sacra is buying chiquita. Among the other stocks to watch this morning, sarepta saying stock is dropping sharply. Asking for more info of the muscular dystrophy treatment. That will be delayed now until mid2015. Talk about ebola briefly. New controversy this morning in how some states are dealing with the virus. New york Governor Cuomo clarifying about a quarantine for medical workers who return from west africa. The workers will now be allowed to stay in their homes. Cuomos comments came after the Obama Administration expressed concerns about the quarantines grused on friday. Meantime lawyers for this nurse pictured here quarantined in a new jersey hospital after she returned from treating ebola patients, the lawyers say theyre going to sue to have her released. Lets get back to earnings and talk about merck. Two cents above estimates. Revenue was slightly shy as they were impacted by patent expirations. With us is managing director at fti consulting and a cnbc contributor. Weve been through a lot, me, you, and merck. The three of us, yes. Do you remember 27, 28, you said buy it there. Yep. At that point it looked kind of like a bond. Did you know it was going to be one of the greatest convertible bonds ever created . They were pretty high yielding bonds at that point in time, werent they . And bonds rates need to come down a lot to more than double on the face value of the bond. It went from 28 to 57. Yep. That was all of should have put all of our money in there after viox. I think the industry clearly has done phenomenally well since that time. And at that time not only did they have the controversy to the impact of the withdrawals, from the market, but also investors felt at that point the drug industry would never ever again develop a new drug. Not only the restructuring of the industry but also the pipeline, you know, are improving. I think we got a bit of that news in mercks results this morning. They sold consumer to bayer. Theyre reducing their expenses. Weve got lots of new pipeline news both in this release and on the horizon. So they did get approval during the past summer which buzz the first oncology agent which is for melanoma, for patients to Bristol Meyers they did receive approval for a new sleep insomnia agent they would launch later this year or next year. And got Breakthrough Status for nonlung cancer before. In thus day and age given obamacare and regulations, Drug Companies should have them i think certainly at the heart of merck has always been research. And i think ken frazier clearly has made that commitment quite clear to investors and he did that at a time it wasnt easy. You know, we held the line on the rnd budget and tonighted to grow it modestly. While kaiser cut its budget. And he took slack for that. I think what we see now are the fruits of those labors coming through with these announcements on the new product. Decides something and sticks with it. Same we v oiriox. That is smart to stick with rnd. What do you expect from pfizer later this week . You know, i think pfizer also has been restructuring its portfolio. Obviously successfully on their Animal Health business. You know, i think its not so much about the current results as were seeing with merck today. Theyre not exceptionally strong. Its more about the pipeline on the horizon. Made a significant commitment to oncology and its benefitting from, you know, some of the vaccine business. And continues to invest in you know, a whole host of products that the challenge to pfizer given its side, its hard to move the needle. Its in the news and you follow the entire industry. Do you have the answer for how to approach ebola from all these different angles . Obviously a vaccines going to be important. It would be nice if one of these the therapeutics work. How do you think this plays out over the coming months . I knew you were going to ask me that. And i just dont know. I mean, obviously j j and glaxo are pursuing vaccines. There are some companies that youve talked a lot about on the air like mtekmira. I think they have taken significant steps to ensure that this is managed and im pretty confident that that will be the case. Yeah. I hope so. And then i never know what to think of the notion that when we live here and we have, you know, new york city with 9 Million People and we hear that, well, its more torrent to deal with it in west africa than to worry about it getting in new york, is that really that argument really hold merit . That we cant make it difficult for aid orkers to get there, that would make it worse. We just need to stop it from getting on these shores is the knee jerk reaction. I think you have to do both, right . Obviously people are going to be vigilant here. I think we will keep this under control here. By the same token, it has to be managed at its source. That has to be aggressively done. Its not object just keeping that from seeping out of there, but to obviously manage it in africa as aggressively as we can. And anything we can do to support that, we should be doing. Would it be possible to get a diagnostic test we can use earlier. There are certain things we can measure for. We can measure for trace amounts, cant we . Why does the level have to get so high in the blood before you can detect it in this case . I honestly dont know. I havent got a good answer on that. We had to wait for somebody to have a lee grade fever. For example, the nurse whos been in this tent over the weekend, theyre going to test her today. And it sounds like potentially she could go home. Now, should she go home still for a 21day quarantine or i believe so, yeah. She said i was in west africa. They started delaying her getting in. She got all flustered and upset. So they did the facial and it was 101. Which happens then these guys were like they probably just screamed. And at risk of being searched next time i travel, the workers at the airport arent necessarily the friendliest. You know, barbara, whyd you know i was going to ask you that . I knew you wouldnt be able to resist. There was somebody in my ear. I dont take much direction, but someone in my ear said it. Thanks, barbara. Thank you so much. Have a good day. By the way, on ebola, the great risk is now that Neither Health workers or other people coming back to the country are going to lie. Right . Youre going to walk in and lie about where you were or who you had contact with. Or youll say i was in these west african countries but i didnt do whatever. We should also mention that shares of novavax is expected to start a trial of its new ebola vaccine. Its going to do that in december. Coming up when we come back, twitter stock up 95 since last november. Well off the highs. Were going preview the social media earnings. We also have news from hogwarts just in time for halloween. A trickortreat for harry potter fans. Right after the break when we return. The freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com and cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. 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Are we still on for tomorrow . Tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Csx. How tomorrow moves. What a day. Cant wait til tomorrow. Winning reelection bid this weekend by a narrow margin. If youre looking at our ticker, we put them up on the board. Some of the most accurate traded are this brazilian. Banco bradesco is slightly off. And petrobras lower by roughly 18 . Keep in mind this is a stock already down 21 in the last month. Vale down by 5. 5 so far. Harry potter fans get ready. Entertainment news this morning. Hop on the hogwarts express and travel with us. Jk rowling has written another harry potter spinoff story. Shes going to release it on her website on halloween. So far she is still ruling out another full novel in the near future or so she says. Just a little treat, little piece of candy. There you go. Check out this next shot. This deer window shopping, perhaps. A buck crashed the grand opening in cedar falls, iowa. The deer soared past the mattress section. But apparently didnt see anything he liked. He used his antlers to let himself out the back door and nobody was hurt. There we go. So many deer. The late great Robin Williams did a nice deer bit. Theyre protected in california and they have full reign wherever. They look at you, if you even question their right to be where they are, and he said they were like they walked like supermodels. Head held high and can jump over a six foot fence. And he turned around and flipped off the person. Acted like he was the deer like, yeah, this is going to stop me. From a deer to a horse. Firefighters rushed to the help of an animal trapped in mesa, arizona. A homeowners horse fell into the swimming pool. The horse was tranquilized and was pulled to safety. Happy ending for you. There you go. I like a happy ending. You got two. The deer got out and the horse is out. You said that on purpose. You absolutely said that on purpose. He likes a happy ending. You knew exactly what you were saying. I dont know what youre talking about. Family show. Coming up next, can twitter coop the street happy . We preview social media earnings. And closer look at why apple pay has had such a tough start. And as we head to break, look at u. S. Futures. 18003452550 [ male announcer ] your love for trading never stops, tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so if you get a trade idea, schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. Tdd 18003452550 [ male announcer ] sharpen your instincts tdd 18003452550 with indepth analysis by schwab experts. Tdd 18003452550 and if you want to run your idea tdd 18003452550 by a schwab trading specialist, tdd 18003452550 our expertise is just a tap away. 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The movie cost 5 million to make. Apple pay system coming under fire from some major retailers. Heres more on apple pay. A lot of activity on twitter over the weekend on this. Last week rite aid and cvs stopped accepting apple pay. Cvs didnt return comments and rite aid said its evaluating various mobile technology. They both have systems equipped with nfc, the Technology Used by apple pay. While not confirmed, industry watchers speculate it may have more to do with the relationship with apple pay partners rather than apple pay itself. They pay credit card processors like visa and mastercard where a group of them formed the merchant customer exchange. The group has been working on an app of their own to lubypass th processors. So currency has a better chance of being adopted by their clients. But says feedback on apple pay is positive and its working to get as many retailers as possible to support it. Then why would they accept it in the beginning . I guess i dont understand since its only been around for a week or so. Its one thing if they decided to do it for a week and then not. I dont get it. I wish i knew. But theyre being quiet about it. They want to get their customers when they think of a mobile app when in their stores, they would want them to be thinking of currency, not apple pay. A lot of it is habit. But people get used to apple pay in other stores, these guy wills have to play along anyway. That, of course, is one of the you know, the reasons that what people dont understand is if people want to give you your money in any form, why not take it . You know, you were basically discouraging customers from coming into your store by not taking it. Again, what they want to do is get people im assuming it feels like the early days of credit cards. Its all changing. This is a huge market. She might know. You dont know. So in europe, travel to europe did if i knew about the early days. I was using pretty shells. So your question she had a question. We got to press the pause button on this because we have some breaking news. Its bad news and serious news on ebola. Meg tirrell joins us now from new york city. I had, guys. Thats right. Were just getting reports that a patient has been taken in for testing here at bellevue. Were waiting for Additional Details on that patient. But it is a pediatric patient who has been taken in for testing here at bellevue. This is where dr. Craig spencer, the first new york city patient to be diagnosed with ebola. A pediatric patient has been taken in for testing with symptoms of ebola. Obviously no confirmation that this is ebola yet. Back to you guys. And its someone from west africa too, did you say that already . We dont have that reporting. We have seen reports that this was a child that traveled back from west africa. That makes a difference, i think. Maybe youre right. Maybe thats not confirmed. I dont want to overstep. We waited awhile before we said anything about this, but at least if you believe the initial part which now we know part of it was true which we hadnt confirmed, it was someone who came from that area. Otherwise, you know, its a different story, right . Well, well wait and see. Absolutely. Thanks. All right, thanks. Twitter reporting today. Shares trending downward, down about 20 this year. You take a longer look, the stock is up more than 90 since going public. Here to give us the breakdown from crt capital. There are a lot of people that just wonder whether the stock at this point is discounting a lot of positive results going into the future. Is that your view . Or is it still a time where you can buy this . Yeah. I think nows a unique opportunity to buy the stock. The stock has been up throughout the year like you pointed. But a few things going into the corner, we do think monthly active users will have a nice little bit of a tail wind from unexpected things like ferguson and the ios data breach. Theres a number of new ad products they launched including in that. A lot of developers we talked to are excited about having another place where they can try to get their apps installed. And also twitter is trying to put out video ads and also they are testing out commerce with the buy button. I think theres still a long runway for this company. If they can start to show that this is not just a nichy little, you know, social site. But something that can be attracted by the mass audiences. Then i think theres going to be a big way for them to move ahead. You think the news cycle is going to influence what happens with twitter. If theres news, somehow that equates to the company can monetize events happening in the news. You know, i think first of all, its more about just getting people used to the system and used to the platform. And i think when people sign up for twitter or at least go to twitter to look at whats happening, they might find some value in that. And, you know, once they log on and create an account and start to follow people, then i think that becomes more monetized. So i think the news is a leap into the actual. Now it starts to sound like, you know, get the is first and then monetize later. Cant imagine clicking on something watching a video ad i dont watch anything on twitter. Especially if its not somebody im following. If i just see it in there, i dont look at that. I dont either. Video on the screen is still even though im told the kids love it. You know, i think is that true, andandrew . Kids these days, we just love it. All right, neil. Thank you. When squawk box returns, the story behind brazils rough start to the trading day. Stocks down double digits. Well talk to an investor next. And can mobile apps help artists like Melissa Etheridge sell albums . Think candy crush with guitars. We speak to the rock star about how she is connecting with fans when squawk box returns in just a moment. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. A pet friendly hotel. Visit a tripadvisor pet friendly hotel. With millions of reviews, tripadvisor makes any destination better. Alriwe need to do somethinguble widifferent. Ranch. Callahans . Ehh, i mean get away, like, away away. Road trip . Double wings, extra ranch. Feels good to mix it up. The allnew, fuelefficient Volkswagen Golf tdi clean diesel. Up to 594 miles of adventure in every tank. Welcome back to squawk box. Look at the brazilian markets. Off as much as 6 . When you look at some of the specific that trade here in the United States, theyre getting hit very hard. Look at petrobras down about 15 . Banco bradesco down about 8 . Rousseff won the election. If she had lost, i thought the brazilian market would move higher by 25 today. Brazilian market down 6 . Heres the thing. We were concerned about all that volatility in the United States the last couple weeks, its been moving 6 a day every day for the last week and a half because of the election. Yeah. Our numbers are big but the percentages are not. Right. Earlier i saw this woman walking around. I almost yelled. Its like a movie star showed up. Jane wells is in the studio. In the flesh. Im going to intro you now with this. I think i need to do a renee zellweger. Whoa. Can apps help Music Artists sell albums . Melissa etheridge is one of the first to melissa . I rolled the tongue. How do you do this . Starbucks. You just walk around in l. A. , you fall all over each other. And she probably said oh my gosh theres jane wells. Thats exactly how it happened. She said is there any way you would ever interview me . Thats not quite how it happened. How did it happen . It happened because im always interested in new trends. And this is really this could work or this could not work. Itunes sales have falling 14 this year. As people offer subscription services. Artists have to reexamine the industrys business model. So heres the twist. Melissa etheridge has teamed up. Thats my first album. Wow. I dont just play the game, i look at all the things. You played this. You know what youre doing. I cant ever figure out the numbers. She was showing me her new game, the take my number phonebook challenge. Thats a name of a song on her new album. It targets her core fans, women my age, but you have to use people in youre contact file. The whole time youre hearing her song stream. So why . I felt my career had kind of flatlined in a way that businesses can. And i look at my career as a Small Business. I got new management, new representation, and they had new ideas. One of these new ideas was to go independent from a large record company. And distribute and make my album myself. And own my own record. This was really exciting. Is it scary . Very scary because all the risk is on me and the money is different. I love being an independent artist that is a Small Business owner. I feel so excited in all these opportunities, not just the record but this mobile app to have, you know, future income. I love this whole thing. Nice job. Thats really my voice. We recorded all of those things. The game is free, but you pay 2. 99 to turn off the ads. I think thats brilliant. She gets half the revenues. And this follows the successful Kim Kardashian game and the tom hanks typewriter app. Who knew. Will it work . Who knows. Etheridge is coming. The Melissa Etheridge its like boris only because i get tongue tied regularly. Melissa etheridge. Melissa etheridge. Were you hanging out at her house . Yes. Cool. Guitars on the wall. It was really cool. You didnt meet her son, did you . No. But i asked if he sings. Shes got four kids. Her son, biological father is david crosby. I asked if her children are musical, she lets them kind of goof around. Theres instruments. She lets them goof around. Shes not one of these, okay, time for lessons. We should bump out with one of her she can rock. Oh, she can. One game she played whats that one awesome song the way it starts . We should play that on the way out. The window one . No. Does he love you the way i love you. Yeah, thats a great one. The way that starts. I do know that song. Thats go to sleep music. You know what im talking about. Were going to try and find that for you. No, not the window one. This is the slow version. This new song take my number will get in your head. But like a lot this is it. This is it. No, this isnt it. This isnt it either. Were going to get it. Will you be around . Will you come back up . I have nowhere else to know. Is that a halloween dress . This is really orange. I just got here and youre already insulting me. Not a costume, but orange. Orange is the new red. Halloweeny. Im digging it deeper and deeper. Thank you. Youre welcome. Coming up, were going to check in on brazil and the emerging markets. Plus jim cramer from the new york stock exchange. Going to ta look at the futures. Suggesting a negative open. Maes. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. 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And the steelers sporting their throwback uniforms. They look like bumblebees. They swarmed the colts. Ben roethlisberger throwing six tds franchise record 522 yards passing and also his 100th victory. Its like the way i do. Like the way i do. Is it so hard to satisfy your senses . Like the way i do. Yeah. You found out the love me when you have to climb some fences. I want to play it. We dont have it. Irritated. Well play that other music, canned music we keep playing that theyve got for us. Have you heard it . The candy music. Suits picked it. The suits picked it. Here it comes. Here it is. Here it comes. Lets see, lets put something together for a morning show. Do you see what im saying . A big room sitting there. Do you remember broadcast news . Do, do, do. Remember that . All right. Nice. Talked to by the suits after this show, i think. Talking about brazil, the countrys leftist president Dilma Rousseff winning reelection but by a narrow margin. Jeff dennis from ubs with reaction from the market move. Big slide down for the vevespa. What do you make of the reaction. I think the dilma victory was not fully priced in any more. We had a bit of a rally in the market on friday, there was some optimism in the market that perhaps you might get an opposition victory in the election after all. I think theres a lot of d disappointment over the election results. As i say, it was not fully priced in. Frankly now i think its a question of what happens in terms of policy announcements and announcements on personnel of the new government before we see what point investors want to start to buy. Actually i think compared to where we thought the market might be trading, i thought it might be a bit weaker than it is. Its down 5 , the currencys down a bit, but thought it mighting going lower. I think its going reasonably with the election results. A lot of the adrs. Petrobras hammered. Any opportunities in any of these adrs, or would you wait . I mean, we would actually wait. We would wait at this point. Our view has been for many, many weeks 48,000 to 50,000 was the dilma victory level, were right in the middle of that now. You have to wait to see the currency go low. We think its fallen today but it could go to the 270 level, another 5 , 6 below where we are now. We actually think that the market is trading in this sort of range, still not cheap compared to longterm average. I dont think youre at the level where you have to buy under any circumstances. So, until you get to that level, 10 , 12 , 13 below where we are now, i think investors will only react to good news. The good news will come from, as i say, policy announcement and personnel announcements. Until you get those, i think investors want see this thing go cheaper. Thanks so much. Appreciate it. 10 , 12 could happen the next two days. Definitely. New york stock exchange. Jim cramer joins now. Kintineas out, could be anywhere, right . I dont know where he is. But what are you leading with this morning on squawk on the street . I think we have to talk about allergan. I though value thinks the stock would be up much less if it werenter to valeant. Look at earnings for allergan. Im not quick to say this is all valeant. Well talk about brazil. I listened to your guest who thinks brazils not done. Its the worst market in the world. Maybe take a look at it pick among the rubble. Petrobras not bad a company. What are we going to decide who is the markets . Is it oil, ebola, the fed, earnings . Earnings . I think its going to be earnings. The calendars amazing. Look merck up from 53, can it hold on that number . I think people are sanguine about it. We do have oils, exxon and chevron at the end of the week. Goldman sachs does a downgrade of the oils. Do you throw in the towel at 80 or declare victory at 100 . Secondrate analysts commentary. Deutsche Bank Upgrades alcoa. Its a field day of fun, because most analysts have really not distinguished themselves during this period. Jim, weve got to go. I look at you, someone told me that highdef was not my friend. Were we worried about that when we i dont care. I think you look fine. You know what i mean . That is the nicest thing i need that after the eagles lost. Taking that to the bank. You look likewise, how you look to me, wise, experienced, someone who has been around the block a few times, someone who has seen it all happen in the past and me, too, right . Handsome. Nobody like you. Rugged . Yeah, just the way it should be. Im embracing this highdef, i dont care what people say. Huntley brinkley, thats us. Do you know who Huntley Brinkley are . No idea. No idea. I starting in your movie or show, whatever youre doing. Congratulations on your show, your movie, fiddler on the roof i guess youre in that, too. It doesnt get better. Thank you. Doesnt get better. If you were a rich man good luck. Walking sorkin. Coattails. Better call sorkin. Its all good. Jump on board. Hes going its all good. The voice of sorkin. Im thrilled. Done get better. Youre like thank you, jim. Ideal. Well see you in a couple of minutes . When we come back, forget about drones. One google exec is aiming higher and skydiving records falling in the process. Est enterprises in the world, are the largest targets in the world, for every hacker, crook and nuisance in the world. But systems policed by hps Cyber Security team are constantly monitored for threats. Outside and in. Thats why hp reports and helps neutralize more intrusions than anyone. In the world. If Hp Security Solutions can help keep the Worlds Largest organizations safe, they can keep yours safe, too. Make it matter. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. 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. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. A world altitude record for p a parachute jump. Besting the previous best by felix bomb garden. Jumped in a specially designed spacesuit and reached speeds more than 800 miles per hour. The executive exceeded the speed of sound, setting off a small son sonic boom. Wow, must have had the gforces in your stomach must have been how high was it . How did he get up there . Up there on a balloon or something . Do you know . Take a balloon up and jump, thats how you do it. If you had life insurancer do you youre not allowed to do that. Is it in the agreement . Yeah, i mean a lot of things are in the smoking, all kinds of stuff, all kinds of things are in life insurance. You have none . No, i have some. Youre going to live forever. I was there once. Thanks. Thank you for being here today. Join us tomorrow, squawk on the street is next. Good morning, welcome to squawk on the street. Im david faber with jim cramer. Live from the new york stock exchange. Carl is on assignment. A look at futures as we begin our week. We are looking for what may be a, yeah, a bit of a lower open this morning. I forgot, of course, having some trouble. For the tenyear note yield around 2. 2, call it 3, somewhere in there, 2. 27. Below italys yield, weve got that going for us. From the italian banks and e